Quest Diagnostics 2012 Annual Report Download - page 70

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67
In February 2011, borrowings of $500 million under our secured receivables credit facility and $75 million under our
senior unsecured revolving credit facility, together with $260 million of cash on hand, were used to fund purchases of treasury
stock totaling $835 million. In addition, we completed a $1.25 billion senior notes offering in March 2011 (the “2011 Senior
Notes”). We used $485 million of the $1.24 billion in net proceeds from the 2011 Senior Notes offering, together with $90
million of cash on hand, to fund the repayment of $500 million outstanding under our secured receivables credit facility, and
the repayment of $75 million outstanding under our senior unsecured revolving credit facility. The remaining portion of the net
proceeds from the 2011 Senior Notes offering were used to fund our acquisition of Athena on April 4, 2011. The 2011 Senior
Notes are further described in Note 12 to the Consolidated Financial Statements.
During the second quarter of 2011, $585 million and $30 million of borrowings under our secured receivables credit
facility and our senior unsecured revolving credit facility, respectively, together with cash on hand, were used to fund the
acquisition of Celera in May 2011. During the second quarter of 2011, proceeds from the sale of short-term marketable
securities acquired as part of the Celera acquisition totaling $214 million, together with cash on hand, were used to fund $500
million and $30 million of debt repayments under our secured receivables credit facility and our senior unsecured revolving
credit facility, respectively.
During the third quarter of 2011, $225 million of borrowings under our secured receivables credit facility were used
primarily to fund $159 million of debt repayments under our senior notes due July 2011 and purchases of treasury stock
totaling $50 million. Later in the quarter, we repaid $225 million of borrowings outstanding under our secured receivables
credit facility with cash on hand.
During the fourth quarter of 2011, $31 million of borrowings under our secured receivables credit facility, together
with cash on hand, were used primarily to fund $182 million of debt repayments under our term loan due May 2012 and
purchases of treasury stock totaling $50 million. Later in the quarter, we repaid $31 million of borrowings outstanding under
our secured receivables credit facility with cash on hand.
In September 2011, we entered into a $750 million senior unsecured revolving credit facility which replaced our prior
$750 million senior unsecured revolving credit facility that was scheduled to mature in May 2012. See Note 12 to the
Consolidated Financial Statements for further details.
Dividends
During each of the first three quarters in 2012, our Board of Directors declared a quarterly cash dividend of $0.17 per
common share, and in November 2012, declared a 76% increase in the quarterly cash dividend to $0.30 per common share.
This 76% increase raises the annual dividend rate to $1.20 per common share from $0.68 per common share and represents a
three-fold increase from the annual rate in effect in 2011.
During each of the first three quarters of 2011, our Board of Directors declared a quarterly cash dividend of $0.10 per
common share, and in October 2011, declared a 70% increase in the quarterly cash dividend to $0.17 per common share.
We expect to fund future dividend payments with cash flows from operations, and do not expect the dividend to have a
material impact on our ability to finance future growth.
Share Repurchases
In January 2012, our Board of Directors authorized $1 billion of additional share repurchases of our common stock,
increasing our total available authorization at that time to $1.1 billion. The share repurchase authorization has no set expiration
or termination date.
For the year ended December 31, 2012, we repurchased 3.4 million shares of our common stock at an average price of
$58.31 per share for a total of $200 million. At December 31, 2012, $865 million remained available under share repurchase
authorizations.
For the year ended December 31, 2011, the Company repurchased 17.3 million shares of its common stock at an
average price of $54.05 per share for a total of $935 million, including 15.4 million shares purchased in the first quarter from
SB Holdings Capitial Inc., a wholly-owned subsidiary of GlaxoSmithKline plc., at an average price of $54.30 per share for a
total of $835 million.