Halliburton 2011 Annual Report Download - page 59

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44
LIQUIDITY AND CAPITAL RESOURCES
We ended 2011 with cash and equivalents of $2.7 billion compared to $1.4 billion at December
31, 2010. As of December 31, 2011, $502 million of the $2.7 billion of cash and equivalents was held by
our foreign subsidiaries that would be subject to tax if repatriated. If these funds are needed for our
operations in the United States, we would be required to accrue and pay United States taxes to repatriate
these funds. However, our intent is to permanently reinvest these funds outside of the United States and our
current plans do not demonstrate a need to repatriate them to fund our United States operations. We also
held $150 million of short-term, United States Treasury securities classified as marketable securities at
December 31, 2011 compared to $653 million of short-term, United States Treasury securities at December
31, 2010.
Significant sources of cash
Cash flows from operating activities contributed $3.7 billion to cash in 2011.
In November 2011, we issued $500 million aggregate principal amount of 3.25% senior notes due
2021 and $500 million aggregate principal amount of 4.5% senior notes due 2041.
During 2011, we sold approximately $1.0 billion of short-term marketable securities.
Further available sources of cash. On February 22, 2011, we entered into an unsecured $2.0
billion five-year revolving credit facility that replaced our then existing $1.2 billion unsecured credit
facility established in July 2007. The purpose of the facility is to provide general working capital and credit
for other corporate purposes. The full amount of the revolving credit facility was available as of December
31, 2011.
Significant uses of cash
Capital expenditures were $3.0 billion in 2011 and were predominantly made in Halliburton
Production Enhancement, Sperry Drilling, Cementing, and Wireline and Perforating. We have also invested
additional working capital to support the growth of our business.
During 2011, we purchased $501 million of short-term marketable securities.
We paid $330 million in dividends to our shareholders in 2011.
In October 2011, we completed the acquisition of Multi-Chem Group, LLC (Multi-Chem) in an all
cash transaction. Multi-Chem is the fourth-largest provider of production chemicals in North America,
delivering specialty chemicals, services and solutions. We paid approximately $880 million for Multi-
Chem and other acquisitions in 2011.
Future uses of cash. Capital spending for 2012 is currently expected to be between $3.5 and $4.0
billion. The capital expenditures plan for 2012 is primarily directed toward Halliburton Production
Enhancement, Sperry Drilling, Cementing, Completion Tools, and Wireline and Perforating.
We are continuing to explore opportunities for acquisitions that will enhance or augment our
current portfolio of services and products, including those with unique technologies or distribution
networks in areas where we do not already have large operations.
Subject to Board of Directors approval, we expect to pay quarterly dividends of approximately
$83 million during 2012. We also have approximately $1.7 billion remaining available under our share
repurchase authorization, which may be used for open market share purchases.