Dow Chemical 2013 Annual Report Download - page 76

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Credit Ratings
As of February 14, 2014, the Company's credit ratings were as follows:
Rating Agency Long-Term Rating Short-Term Rating Outlook
Standard & Poor’s BBB A-2 Stable
Moody’s Investors Service Baa2 P-2 Stable
Fitch Ratings BBB F2 Stable
Downgrades in the Company’s credit ratings will increase borrowing costs on certain indentures and could have a negative
impact on the Company’s ability to access credit markets.
Dividends
For the years ended December 31, 2013, 2012, and 2011, the Company paid dividends to common and preferred shareholders
as noted below:
Dividends Paid at December 31
In millions, except per share amounts 2013 2012 2011
Dividends paid, per common share $ 0.96 $ 1.46 $ 0.80
Dividends paid to common shareholders $ 1,139 $ 1,710 $ 918
Dividends paid to preferred shareholders $ 340 $ 340 $ 340
On December 12, 2013, the Board of Directors declared a quarterly dividend of $0.32 per share, payable January 30, 2014, to
stockholders of record on December 31, 2013. On January 29, 2014, the Board of Directors announced the declaration of a
quarterly dividend of $0.37 per share, payable April 30, 2014, to stockholders of record on March 31, 2014. The 15 percent
increase in the dividend in the first quarter of 2014 demonstrates Dow's commitment to consistently and increasingly reward
shareholders through ongoing earnings growth. Since 1912, the Company has maintained or increased the amount of the
quarterly dividend, adjusted for stock splits, with the exception of February 12, 2009. During this 102-year period, Dow has
increased the amount of the quarterly dividend 50 times (approximately 12 percent of the time), reduced the dividend once and
maintained the amount of the quarterly dividend approximately 88 percent of the time.
On December 12, 2013, the Board of Directors declared a quarterly dividend of $85 million to Cumulative Convertible
Perpetual Preferred Stock, Series A shareholders of record on December 15, 2013, which was paid on January 2, 2014. On
February 13, 2014, the Board of Directors declared a quarterly dividend of $85 million to these shareholders, payable on
April 1, 2014. Ongoing dividends related to Cumulative Convertible Perpetual Preferred Stock, Series A will accrue at the rate
of $85 million per quarter, and are payable quarterly subject to Board of Directors’ approval.
Share Repurchase Program
On February 13, 2013, the Board of Directors approved a share buy-back program, authorizing up to $1.5 billion to be spent on
the repurchase of the Company’s common stock over a period of time. Purchases under this program began in May 2013.
During 2013, the Company repurchased 8,152,030 shares of common stock for $307 million as part of a share repurchase
program. At December 31, 2013, approximately $1.2 billion of the share buy-back program authorization remained available
for additional repurchases.
On January 29, 2014, the Board of Directors announced an expansion of the Company's share buy-back authorization,
authorizing an additional amount not to exceed $3 billion to be spent on the repurchase of the Company's common stock over a
period of time. As a result, the authorized amount of the current ongoing share repurchase program has increased to $4.5
billion. The Company expects the share repurchase program to be completed in 2014. For additional information related to the
share repurchase program, see Part II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities and Note 21 to the Consolidated Financial Statements.
Pension Plans
The Company has defined benefit pension plans in the United States and a number of other countries. The Company’s funding
policy is to contribute to plans when pension laws and/or economics either require or encourage funding. During 2013, 2012
and 2011, the Company contributed $865 million, $903 million and $806 million to its pension plans, including contributions
to fund benefit payments for its non-qualified supplemental plans. Dow expects to contribute approximately $800 million to its
pension plans in 2014. See Note 17 to the Consolidated Financial Statements for additional information concerning the
Company’s pension plans.