Quest Diagnostics 2013 Annual Report Download - page 68

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secured receivables credit facility and our senior unsecured revolving credit facility in the second quarter of 2011. In addition,
cash flows from investing activities for the year ended December 31, 2011 included capital expenditures of $161 million.
Cash Flows from Financing Activities
Net cash used in financing activities for the year ended December 31, 2013 was $1.1 billion, consisting primarily of
net decreases in debt of $4 million, purchases of treasury stock of $1.0 billion, dividend payments of $185 million and
distributions to noncontrolling interests of $32 million. These decreases were partially offset by proceeds from the exercise of
stock options and related tax benefits totaling $142 million. The net decrease in debt consists of $896 million of borrowings
and $900 million of repayments. Purchases of treasury stock were largely funded by the proceeds from the Ibrutinib Sale and
the HemoCue and Enterix sales.
The borrowings of $896 million and repayments of $900 million are primarily associated with our secured receivables
credit facility.
In December 2013, we renewed our existing secured receivables credit facility, which now matures on December 5,
2014. Interest on the secured receivables credit facility is based on rates that are intended to approximate commercial paper
rates for highly rated issuers. There were no outstanding borrowings under this facility at December 31, 2013.
Net cash used in financing activities for the year ended December 31, 2012 was $822 million, consisting primarily of a
net decrease in debt of $654 million, purchases of treasury stock of $200 million, dividend payments of $108 million and
distributions to noncontrolling interests of $38 million. These decreases were partially offset by proceeds from the exercise of
stock options and related tax benefits totaling $166 million. The net decrease in debt consists of $715 million of borrowings
and $1.4 billion of repayments.
The borrowings of $715 million represent amounts borrowed under our secured receivables credit facility. The
repayments of $1.4 billion represent the repayment of our $560 million term loan due May 2012, and $800 million of
repayments under our secured receivables credit facility.
Net cash provided by financing activities for the year ended December 31, 2011 was $64 million, consisting primarily
of net increases in debt of $1.0 billion, and proceeds from the exercise of stock options and related tax benefits totaling $141
million, partially offset by purchases of treasury stock of $935 million, dividend payments of $65 million, distributions to
noncontrolling interests of $36 million and $13 million of payments primarily related to debt issuance costs incurred in
connection with our senior notes offering in the first quarter of 2011 and our senior unsecured revolving credit facility in the
third quarter of 2011. The net increase in debt consists of $2.7 billion of borrowings and $1.7 billion of repayments.
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 13 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