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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
38
The company's cash, cash equivalents and marketable securities at December 31, 2015 and 2014 are $6.2 billion and $7.0 billion,
respectively. Cash, cash equivalents and marketable securities held outside of the U.S. of $4.2 billion and $4.5 billion at
December 31, 2015 and 2014, 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 the various sources of liquidity discussed
above. Therefore, the company believes that it has sufficient sources of domestic liquidity to support its assumption that undistributed
earnings at December 31, 2015 can be considered reinvested indefinitely.
(Dollars in millions) 2015 2014 2013
Cash provided by operating activities $ 2,316 $ 3,712 $ 3,179
Cash provided by operating activities decreased $1.4 billion in 2015 compared to 2014 primarily due to the absence of Chemours
in the second half of 2015 compared with a full year of results in 2014 for an impact of approximately $1.0 billion and a lower
cash earnings contribution from continuing operations of approximately $0.3 billion.
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 16 to the Consolidated Financial Statements for additional information).
(Dollars in millions) 2015 2014 2013
Cash (used for) provided by investing activities $(1,828) $ (337) $ 2,945
Cash used for investing activities in 2015 increased by $1.5 billion compared to 2014. The change was primarily due to lower
proceeds received from the sale of businesses in 2015 compared to 2014 and increase purchases of marketable securities in 2015
compared to 2014. This was partially offset by lower purchases of property, plant and equipment, mainly due to the absence of
Chemours in the second half of 2015 which accounted for $0.3 billion. See Note 20 for further discussion of marketable securities
outstanding at December 31, 2015 and 2014.
Cash used for investing activities in 2014 decreased $3.3 billion compared to 2013. The change was primarily due to lower proceeds
received from the sale of businesses in 2014 compared to 2013.
Purchases of property, plant and equipment totaled $1.6 billion, $2.0 billion and $1.9 billion in 2015, 2014, and 2013, respectively.
The company expects 2016 purchases of property, plant and equipment to about $1.1 billion.
(Dollars in millions) 2015 2014 2013
Cash used for financing activities $(1,823) $ (5,074) $ (1,474)
The $3.3 billion decrease in cash used for financing activities in 2015 was primarily due to the distribution of Chemours borrowings
to the company as part of the separation, partially offset by a reduction in short term borrowings, and an increase in the repurchase
of common stock.
The $3.6 billion increase in cash used for financing activities in 2014 was primarily due to lower borrowings and higher payments
for the repurchase of common stock.
Dividends paid to common and preferred shareholders were $1.5 billion, $1.7 billion, and $1.7 billion in 2015, 2014, and 2013,
respectively. Dividends per share of common stock were $1.72, $1.84, and $1.78 in 2015, 2014, and 2013, respectively. In January
2016, the Board of Directors declared a first quarter common stock dividend of $0.38 per share. With the first quarter 2016 dividend,
the company has paid quarterly consecutive dividends since the company’s first dividend in the fourth quarter 1904.