Snapple 2014 Annual Report Download - page 43

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40
NET CASH USED IN FINANCING ACTIVITIES
2014
Net cash used in financing activities for the year ended December 31, 2014 primarily consisted of stock repurchases of $400
million and dividend payments of $317 million.
2013
Net cash used in financing activities for the year ended December 31, 2013 primarily consisted of stock repurchases of $400
million and dividend payments of $302 million.
On May 1, 2013, we repaid $250 million of our 6.12% senior notes due May 1, 2013 at maturity.
2012
Net cash used in financing activities for the year ended December 31, 2012 primarily consisted of stock repurchases of $400
million and dividend payments of $284 million.
On November 20, 2012, we completed the issuance of $500 million aggregate principal amount of senior unsecured notes
consisting of $250 million aggregate principal amount of our 2.00% senior notes due January 15, 2020 and $250 million aggregate
principal amount of our 2.70% senior notes due November 15, 2022.
On December 21, 2012, we repaid $450 million of our 2.35% senior notes due December 21, 2012 at maturity.
Debt Ratings
As of December 31, 2014, our debt ratings were Baa1 with a stable outlook from Moody's and BBB+ with a stable outlook
from S&P. Our commercial paper ratings were P-2/A-2 from Moody's and S&P, respectively.
These debt and commercial paper ratings impact the interest we pay on our financing arrangements. A downgrade of one or
both of our debt and commercial paper ratings could increase our interest expense and decrease the cash available to fund anticipated
obligations.
Cash Management
We fund our liquidity needs from cash flow from operations, cash on hand or amounts available under our financing
arrangements, as Commercial Paper is now a more significant part of our overall cash management strategy.
Capital Expenditures
Capital expenditures were $170 million, $179 million and $217 million for the years ended December 31, 2014, 2013 and
2012, respectively. Capital expenditures have reduced over the last three years as a result of a stronger focus on the return on our
discretionary capital expenditures, the result of our RCI initiatives and reduced infrastructure investments required after our
separation from Cadbury. Capital expenditures for the year ended December 31, 2014 primarily related to machinery and equipment
including production improvements in our Mexico facilities, our distribution fleet, IT investments and expansion and replacement
of existing cold drink equipment. For the year ended December 31, 2013, capital expenditures primarily related to machinery and
equipment, IT investments, expansion and replacement of existing cold drink equipment and our distribution fleet. Capital
expenditures for the year ended December 31, 2012 primarily related to machinery and equipment, expansion and replacement
of existing cold drink equipment, our distribution fleet and IT investments.
In 2015, we expect to incur annual capital expenditures, net of proceeds from disposals, in an amount approximately 3.00%
of our net sales, which we expect to fund through cash provided by operating activities.