PG&E 2015 Annual Report Download - page 55

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PART II
ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
the Dividend Reinvestment and Stock Purchase Plan, and
share-based compensation plans for total cash proceeds
of $354 million.
The proceeds from equity issuances were used for general
corporate purposes, including the contribution of equity
into the Utility. For the year ended December 31, 2015,
PG&E Corporation made equity contributions to the Utility
of $705 million, of which $300 million was used to pay a
fine to the State General Fund as required by the Penalty
Decision. Additionally, PG&E Corporation and the Utility
expect to continue to issue long-term and short-term
debt for general corporate purposes and to maintain the
CPUC-authorized capital structure during 2016.
Revolving Credit Facilities and Commercial
Paper Programs
At December 31, 2015, PG&E Corporation and the Utility
had $300 million and $1.9 billion available under their
respective $300 million and $3.0 billion revolving credit
facilities. (See Note 4 of the Notes to the Consolidated
Financial Statements in Item 8.)
The revolving credit facilities require that PG&E Corporation
and the Utility maintain a ratio of total consolidated debt
to total consolidated capitalization of at most 65% as
of the end of each fiscal quarter. At December 31, 2015,
PG&E Corporation’s and the Utility’s total consolidated
debt to total consolidated capitalization was 51% and
50%, respectively. PG&E Corporation’s revolving credit
facility agreement also requires that PG&E Corporation
own, directly or indirectly, at least 80% of the outstanding
common stock and at least 70% of the outstanding voting
capital stock of the Utility. In addition, the revolving credit
facilities include usual and customary provisions regarding
events of default and covenants including covenants limiting
liens to those permitted under PG&E Corporation’s and
the Utility’s senior note indentures, mergers, and imposing
conditions on the sale of all or substantially all of PG&E
Corporation’s and the Utility’s assets and other fundamental
changes. At December 31, 2015, PG&E Corporation and
the Utility were in compliance with all covenants under
their respective revolving credit facilities.
Dividends
PG&E Corporation
For each of the quarters in 2015, 2014, and 2013, the
Board of Directors of PG&E Corporation declared
common stock dividends of $0.455 per share, for annual
dividends of $1.82 per share. Dividends paid to common
stockholders by PG&E Corporation were $856 million
in 2015, $828 million in 2014, and $782 million in 2013.
In December 2015, the Board of Directors of PG&E
Corporation declared quarterly dividends of $0.455
pershare, totaling $224 million, of which approximately
$219million was paid on January 15, 2016 to shareholders
of record on December 31, 2015.
Utility
For each of the quarters in 2015, 2014, and 2013, the Utility’s
Board of Directors declared common stock dividends in
the aggregate amount of $179 million to PG&E Corporation
for annual dividends paid of $716 million in each of 2015,
2014, and 2013. In addition, the Utility paid $14 million of
dividends on preferred stock in each of 2015, 2014, and 2013.
The Utility’s preferred stock is cumulative and any dividends
in arrears must be paid before the Utility may pay any
common stock dividends. In December 2015, the Board of
Directors of the Utility declared dividends on its outstanding
series of preferred stock, payable on February 15,
2016, to shareholders of record on January 29, 2016.
Utility Cash Flows
The Utility’s cash flows were as follows:
 YearEndedDecember
(inmillions)    
Netcashprovidedbyoperatingactivities       
Netcashusedininvestingactivities  ()  ()  ()
Netcashprovidedbyfinancingactivities       
Netchangeincashandcashequivalents     ()  ()