Baker Hughes 2015 Annual Report Download - page 45

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Proceeds from the disposal of assets were $388 million, $437 million and $455 million for 2015, 2014 and 2013,
respectively. These disposals related to equipment that was lost-in-hole and property, machinery, and equipment no
longer used in operations that was sold throughout the year.
In 2015, we purchased short-term and long-term investment securities totaling $310 million. In 2014, we paid
$314 million for acquisitions, net of cash acquired of $7 million. Under the Merger Agreement with Halliburton, as
described in Note 2. "Halliburton Merger Agreement" of the Notes to Consolidated Financial Statements in Item 8
herein, we have restrictions on our ability to acquire or dispose of any businesses while the Merger is pending.
Financing Activities
We had net repayments of commercial paper and other short-term debt of $45 million, $248 million and $571
million in 2015, 2014 and 2013, respectively.
Total debt outstanding at December 31, 2015 was $4.04 billion, a decrease of $92 million compared to
December 31, 2014. The total debt-to-capital (defined as total debt plus equity) ratio was 0.20 at December 31,
2015 and 0.18 at December 31, 2014. We received proceeds of $116 million, $216 million and $101 million in 2015,
2014 and 2013, respectively, from the issuance of common stock through the exercise of stock options and the
employee stock purchase plan.
Our Board of Directors has authorized a program to repurchase our common stock from time to time. During
2013, our Board of Directors increased the authorization to purchase our common stock under our share
repurchase program by $800 million. During 2015, we did not repurchase any shares of common stock. We had
authorization remaining to repurchase approximately $1.05 billion in common stock at the end of 2015. During
2014, we repurchased 9.1 million shares of our common stock at an average price of $65.75 per share, for a total of
$600 million. During 2013, we repurchased 6.3 million shares of our common stock at an average prices of $55.59
per share, for a total of $350 million.
We paid dividends of $297 million, $279 million and $267 million in 2015, 2014 and 2013, respectively.
Under the Merger Agreement with Halliburton, as described in Note 2. "Halliburton Merger Agreement" of the
Notes to Consolidated Financial Statements in Item 8 herein, we have generally agreed not to repurchase any
shares of common stock or increase the quarterly dividend while the Merger is pending.
Available Credit Facility
As discussed above, we have a committed revolving credit facility with commercial banks and a related
commercial paper program under which the maximum combined borrowing at any time under both the credit facility
and the commercial paper program is $2.5 billion. The credit facility matures in September 2016 and contains
certain covenants which, among other things, restrict certain Merger transactions or the sale of all or substantially
all of our assets or a significant subsidiary and limit the amount of subsidiary indebtedness. Upon the occurrence of
certain events of default, our obligations under the credit facility may be accelerated. Such events of default include
payment defaults to lenders under the credit facility, covenant defaults and other customary defaults. We were in
compliance with all of the credit facility’s covenants, and there were no direct borrowings under the credit facility
during 2015. Under the commercial paper program, we may issue from time to time up to $2.5 billion in commercial
paper with maturities of no more than 270 days. The amount available to borrow under the credit facility is reduced
by the amount of any commercial paper outstanding. At December 31, 2015, we had no outstanding borrowings
under the commercial paper program.
If market conditions were to change and our revenue was reduced significantly or operating costs were to
increase, our cash flows and liquidity could be reduced. Additionally, it could cause the rating agencies to lower our
credit rating. There are no ratings triggers that would accelerate the maturity of any borrowings under our
committed credit facility. However, a downgrade in our credit ratings could increase the cost of borrowings under
the credit facility and could also limit or preclude our ability to issue commercial paper. Should this occur, we would
seek alternative sources of funding, including borrowing under the credit facility.