Quest Diagnostics 2013 Annual Report Download - page 69

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65
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.
Dividends
During each of the quarters of 2013, our Board of Directors declared a quarterly cash dividend of $0.30 per common
share, and in January 2014, authorized an increase in the quarterly cash dividend for the first quarter of 2014 from $0.30 per
common share to $0.33 per common share.
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 an increase in the quarterly cash dividend from $0.17 per common share to
$0.30 per common share.
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 an increase in the quarterly cash dividend from $0.10 per common share 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 August 2013, our Board of Directors authorized the repurchase of an additional $1 billion of our common stock,
increasing the total available authorization at that time to $1.3 billion. This share repurchase authorization has no set expiration
or termination date. At December 31, 2013, $828 million remained available under the share repurchase authorization.
In January 2012, our Board of Directors authorized the repurchase an additional $1 billion of our common stock,
increasing the total available authorization at that time to $1.1 billion.
On April 19, 2013, we entered into an ASR with a financial institution to repurchase $450 million of our common
stock as part of our Common Stock repurchase program. The ASR was structured as a combination of two transactions: (1) a
treasury stock repurchase and (2) a forward contract which permitted us to purchase shares immediately with the final purchase
price of those shares determined by the volume weighted average price of our common stock during the purchase period, less a
fixed discount. Under the ASR, we paid $450 million to the financial institution and received 7.6 million shares of common
stock, resulting in a final price per share of $59.46. We initially received 7.2 million shares of our common stock during the
second quarter of 2013 and received an additional 0.4 million shares upon completion of the ASR during the third quarter of
2013. As of June 30, 2013, we recorded this transaction as an increase to treasury stock of $405 million, and recorded the
remaining $45 million as a decrease to additional paid-in capital in our consolidated balance sheets. Upon completion of the
ASR in the third quarter of 2013, we reclassified the $45 million to treasury stock from additional paid-in capital on our
consolidated balance sheets.
On September 4, 2013, we entered into an ASR with a financial institution to repurchase $350 million of our common
stock as part of our Common Stock repurchase program. The ASR was structured as a combination of two transactions: (1) a
treasury stock repurchase and (2) a forward contract which permitted us to purchase shares immediately with the final purchase
price of those shares determined by the volume weighted average price of our common stock during the purchase period, less a
fixed discount. Under the ASR, we paid $350 million to the financial institution and received 5.8 million shares of common
stock, resulting in a final price per share of $60.73. We initially received 4.7 million shares of our common stock during the
third quarter of 2013 and received an additional 1.1 million shares upon completion of the ASR during the fourth quarter of
2013. As of September 30, 2013, we recorded this transaction as an increase to treasury stock of $280 million, and recorded
the remaining $70 million as a decrease to additional paid-in capital in our consolidated balance sheets. Upon completion of
the ASR in the fourth quarter of 2013, we reclassified the $70 million to treasury stock from additional paid-in capital on our
consolidated balance sheets.
In addition to the ASRs previously discussed, we repurchased shares of our common stock on the open market. For
the year ended December 31, 2013, we repurchased an additional 4.1 million shares of our common stock at an average price of
$57.63 per share for a total of $237 million.
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.