DuPont 2012 Annual Report Download - page 30

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
 continued
(Dollars in millions)   
 $(1,346) $ (6,238) $ (2,439)
Cash used for investing activities decreased $4.9 billion in 2012 compared to 2011. The decrease was due mainly to the absence in 2012 of the company's
Danisco acquisition in 2011.
The $3.8 billion increase in 2011 was mainly due to the payment for the Danisco acquisition, higher expenditures for the purchases of property, plant and
equipment, and a net increase in payments for forward exchange contract settlements; partially offset by changes in investments in short-term financial
instruments.
Purchases of property, plant and equipment totaled $1.8 billion in 2012 and 2011, and $1.5 billion in 2010. The company expects 2013 purchases of
property, plant and equipment to be about $1.9 billion, an increase of $0.1 billion over 2012.
(Dollars in millions)   
 $(2,697) $ 403 $(1,829)
The $3.1 billion increase in cash used for financing activities in 2012 was due mainly to a decrease in borrowings in 2012 versus an increase in 2011, less
cash received from options exercised and the company's increased investment in Solae, LLC in 2012, partially offset by reduced purchases of common stock
in 2012 versus 2011.
The $2.2 billion change in 2011 was primarily due to an increase in borrowings in 2011 to finance the Danisco acquisition as compared to a decrease in
borrowings in 2010.
Dividends paid to common and preferred shareholders were $1.6 billion, $1.5 billion, and $1.5 billion in 2012, 2011, and 2010, respectively. Dividends per
share of common stock were $1.70, $1.64, and $1.64 in 2012, 2011, and 2010, respectively. The common dividend declared in the first quarter 2013 was
the company's 434th consecutive dividend since the company's first dividend in the fourth quarter 1904.
During 2012, the company purchased and retired 7.8 million shares at a total cost of $400 million. These purchases completed the 2001 $2 billion share
buyback plan and began purchases under a $2 billion share buyback plan authorized by the company's Board of Directors in April 2011. Under the
completed 2001 plan, the company purchased a total of 42.0 million shares. As of December 31, 2012, the company has purchased 5.5 million shares at a
total cost of $284 million under the 2011 plan. There is no required completion date for the purchases under the 2011 plan.
In December 2012, the company's Board of Directors authorized a $1 billion share buyback plan, subject to receiving the proceeds from the Performance
Coatings divestiture. On February 1, 2013, the sale of Performance Coatings was completed. The 2012 share buyback plan is expected to be completed in the
first half 2013.
During 2011 and 2010, the company purchased and retired 13.8 million and 5.4 million shares at a total cost of $672 million and $250 million, respectively,
under the 2001 plan.
(Dollars in millions)   
Cash provided by operating activities $ 4,849 $ 5,152 $4,559
Purchases of property, plant and equipment (1,793) (1,843) (1,508)
 $3,056 $3,309 $ 3,051
Free cash flow is a measurement not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. All
companies do not calculate non-GAAP financial measures in the same manner and, accordingly, the company's free cash flow definition may not be consistent
with the methodologies used by other companies. The company defines free cash flow as cash provided by operating activities less purchases of property,
plant and equipment, and therefore indicates operating cash flow available for payment of dividends, other investing activities and other financing activities.
Free cash flow is useful to investors and management to evaluate the company's cash flow and financial performance, and is an integral financial measure
used in the company's financial planning process.
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