Fluor 2013 Annual Report Download - page 83

technology. Proceeds from disposal of property, plant and equipment of $74 million, $78 million and
$54 million during 2013, 2012 and 2011, respectively, primarily related to the disposal of construction
equipment associated with the equipment operations in the Global Services segment.
During 2013, the company paid $15 million to acquire a Virginia-based construction company and
$8 million to acquire an Australian-based company that specializes in fabrication and pressure welding.
During 2012, the company paid $19 million to acquire an equipment company in Mozambique. During
2011, the company paid $27 million to acquire controlling interests in both NuScale Power, LLC
(‘‘NuScale’’), an Oregon-based designer of small modular nuclear reactors, and Goar, Allison &
Associates, a Texas-based provider of sulfur technologies for upstream gas plants, downstream refineries
and gasification. The company continues to make investments in partnerships or joint ventures primarily
for the execution of single contracts or projects. Investments in unconsolidated partnerships and joint
ventures were $27 million, $31 million and $8 million in 2013, 2012 and 2011, respectively.
During 2013, NuScale received notification from the U.S. Department of Energy (‘‘DOE’’) that it is
one of two companies that have qualified to receive matching funding under the DOE’s Small Modular
Reactor Licensing Technical Support program. NuScale’s share of the $452 million of total matching
funding authorized under this program has not yet been determined.
Financing Activities
Cash utilized by financing activities during 2013, 2012 and 2011 of $370 million, $617 million and
$396 million, respectively, included company stock repurchases, company dividend payments to
stockholders, proceeds from the issuance of senior notes, repayments of debt and distributions paid to
holders of noncontrolling interests.
The company has a common stock repurchase program, authorized by the Board of Directors, to
purchase shares in open market or privately negotiated transactions at the company’s discretion. The
company repurchased 2,591,557 shares, 7,409,200 shares and 10,050,000 shares of common stock under its
current and previously authorized stock repurchase programs resulting in cash outflows of $200 million,
$389 million and $640 million in 2013, 2012 and 2011, respectively. As of December 31, 2013, 9.2 million
shares could still be purchased under the existing stock repurchase program. On February 6, 2014, the
Board of Directors approved an increase of 6.0 million shares to the share repurchase program.
During 2013, the company’s Board of Directors authorized the payment of quarterly dividends of
$0.16 per share (compared to quarterly dividends of $0.16 per share in 2012 and $0.125 per share in 2011).
Quarterly cash dividends are typically paid during the month following the quarter in which they are
declared. However, dividends declared in the fourth quarter of 2012 were paid in December 2012. The
payment and level of future cash dividends is subject to the discretion of the company’s Board of Directors.
Dividends of $79 million, $129 million and $88 million, were paid during 2013, 2012 and 2011, respectively.
On February 6, 2014, the Board of Directors voted to increase the quarterly dividend to $0.21 per share
from $0.16 per share.
In September 2011, the company issued $500 million of 3.375% Senior Notes (the ‘‘2011 Notes’’) due
September 15, 2021 and received proceeds of $492 million, net of underwriting discounts and debt issuance
costs. Interest on the 2011 Notes is payable semi-annually on March 15 and September 15 of each year,
and began on March 15, 2012. The company may, at any time, redeem the 2011 Notes at a redemption
price equal to 100 percent of the principal amount, plus a ‘‘make whole’’ premium described in the
indenture. Additionally, if a change of control triggering event occurs, as defined by the terms of the
indenture, the company will be required to offer to purchase the 2011 Notes at a purchase price equal to
101 percent of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.
The company is generally not limited under the indenture governing the 2011 Notes in its ability to incur
additional indebtedness provided the company is in compliance with certain restrictive covenants,
including restrictions on liens and restrictions on sale and leaseback transactions. These covenants are not
expected to impact the company’s liquidity or capital resources.
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