AbbVie 2014 Annual Report Download - page 51

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in 2014 also reflected capital expenditures, including the purchase of a small molecule active
pharmaceutical ingredient manufacturing facility in Singapore, and net sales (purchases) of short-term
investments.
In 2014 and 2013, the company issued and redeemed commercial paper. The balance of commercial
paper outstanding was $416 million and $400 million at December 31, 2014 and 2013, respectively. AbbVie
may issue additional commercial paper or retire commercial paper to meet liquidity requirements as
needed.
Cash dividend payments totaled $2.7 billion in 2014 and $2.6 billion in 2013. On October 20, 2014, the
board of directors declared a quarterly cash dividend of $0.49 per share for stockholders of record at the
close of business on January 15, 2015, payable on February 13, 2015. The timing, declaration, amount of,
and payment of any dividends is within the discretion of AbbVie’s board of directors and will depend upon
many factors, including AbbVie’s financial condition, earnings, capital requirements of its operating
subsidiaries, covenants associated with certain of AbbVie’s debt service obligations, legal requirements,
regulatory constraints, industry practice, ability to access capital markets, and other factors deemed relevant
by its board of directors.
In February 2013, AbbVie’s board of directors authorized a $1.5 billion common stock repurchase
program, which was effective immediately. In October 2014, AbbVie’s board of directors authorized a new
$5.0 billion stock repurchase program, which was effective immediately and superseded the prior
authorization. Under these programs, the company repurchased approximately 9 million shares for
$550 million in the open market in 2014 and approximately 4 million shares for $223 million in the open
market in 2013. Purchases of AbbVie shares may be made from time to time at management’s discretion.
The program has no time limit and can be discontinued at any time. AbbVie’s remaining share repurchase
authorization was $4.7 billion as of December 31, 2014.
Cash and equivalents in 2014 was also impacted by net unfavorable exchange rate changes totaling
$577 million principally due to the impact of the substantial weakening of the Euro in 2014 on the
translation of the company’s Euro-denominated assets, and the weakening of foreign currencies in
combination with an increased concentration of cash denominated in foreign currencies accumulated in
anticipation of the terminated proposed combination with Shire. While a significant portion of cash and
equivalents at December 31, 2014 are considered reinvested indefinitely in foreign subsidiaries, AbbVie does
not expect such reinvestment to affect its liquidity and capital resources. If these funds were needed for
operations in the United States, AbbVie would be required to accrue and pay U.S. income taxes to
repatriate these funds. AbbVie believes that it has sufficient sources of liquidity to support its assumption
that the disclosed amount of undistributed earnings at December 31, 2014 has been reinvested indefinitely.
Substantially all of AbbVie’s trade receivables in Greece, Portugal, Italy, and Spain are with
governmental health systems. AbbVie continues to monitor the economic health of the economy in
Southern Europe, as heightened economic concerns still exist. Outstanding net governmental receivables in
these countries at December 31, 2014 and 2013 were as follows:
Net receivables
over one year
Net receivables past due
(in millions) 2014 2013 2014 2013
Greece $ 30 $ 37 $— $ —
Portugal 27 59 7 3
Italy 176 245 16 22
Spain 213 440 10 135
Total $446 $781 $33 $160
2014 Form 10-K 45