DuPont 2014 Annual Report Download - page 33

Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
32
Liquidity & Capital Resources
December 31,
(Dollars in millions) 2014 2013
Cash, cash equivalents and marketable securities $ 7,034 $ 9,086
Total debt 10,694 12,462
Pursuant to its cash discipline policy, the company seeks first to maintain a strong balance sheet and second, to return excess cash
to shareholders unless the opportunity to invest for growth is compelling. The company believes its ability to generate cash from
operations and access to capital markets will be adequate to meet anticipated cash requirements to fund working capital, capital
spending, dividend payments, share repurchases, debt maturities and other cash needs. The company's liquidity needs can be met
through a variety of sources, including: cash provided by operating activities, cash and cash equivalents, marketable securities,
commercial paper, syndicated credit lines, bilateral credit lines, equity and long-term debt markets and asset sales. The company's
current strong financial position, liquidity and credit ratings provide excellent access to the capital markets. The company has
access to approximately $4.9 billion in unused credit lines with several major financial institutions which provide additional support
to meet short-term liquidity needs and general corporate purposes including letters of credit. The amount of unused credit lines
increased $0.5 billion from December 31, 2013, primarily due to refinancing of the company's credit facility with an expansion
to a five year $4.0 billion credit facility during 2014.
The company's cash, cash equivalents and marketable securities at December 31, 2014 and 2013 are $7.0 billion and $9.1 billion,
respectively. Cash and cash equivalents at December 31, 2013 include the proceeds received from the sale of the Performance
Coatings business. Cash, cash equivalents and marketable securities held outside of the U.S. of $4.5 billion and $3.9 billion at
December 31, 2014 and 2013, respectively, are generally utilized to fund local operating activities and capital expenditure
requirements and are expected to support non-U.S. liquidity needs for the next 12 months and the foreseeable future thereafter.
The company expects domestic liquidity needs, for at least the next 12 months and the foreseeable future thereafter, will be met
through existing cash, cash equivalents and marketable securities held in the U.S. and other funding sources, including cash
generated from U.S. operations, asset sales, the ability to access the capital markets, and the company's credit lines. Therefore, the
company believes that it has sufficient sources of domestic liquidity to support its assumption that undistributed earnings at
December 31, 2014 can be considered reinvested indefinitely.
The company continually reviews its debt portfolio and occasionally may rebalance it to ensure adequate liquidity and an optimum
debt maturity schedule. In 2013, the company issued $1,250 million of 2.80% Notes due February 15, 2023 and $750 million of
4.15% Notes due February 15, 2043.
The company's credit ratings impact its access to the debt capital markets and cost of capital. The company remains committed
to a strong financial position and strong investment-grade rating. The company's long-term and short-term credit ratings are as
follows:
Long-term Short-term Outlook
Standard & Poor's A A-1 Negative
Moody’s Investors Service A2 P-1
Under review for
possible
downgrade
Fitch Ratings A F1 Stable
(Dollars in millions) 2014 2013 2012
Cash provided by operating activities $ 3,712 $ 3,179 $ 4,849
Cash provided by operating activities increased $0.5 billion in 2014 compared to 2013 due to lower year over year income tax
payments associated with the sale of businesses and higher insurance recoveries and lower claims payments related to Imprelis®
(See Note 15 to the Consolidated Financial Statements for additional information).