DuPont 2013 Annual Report Download - page 30

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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
29
Cash provided by operating activities decreased $303 million in 2012 compared to 2011 due mainly to lower cash from earnings
and a $500 million contribution to its principal US pension plan, partially offset by changes in operating assets and liabilities,
primarily related to working capital within the Agriculture segment.
Other operating charges and credits primarily consists of expenses related to pension plans as well as reclassifications of items
whose cash effects are included in investing or financing activities.
The change in other operating charges and credits, net for 2013 totaled $0.9 billion, a decrease of $0.3 billion from 2012. The
decrease is primarily due to lower pension plan charges.
The change in other operating charges and credits, net for 2012 totaled $1.2 billion, an increase of $0.2 billion from 2011. The
increase is primarily due to increased pension plan charges.
(Dollars in millions) 2013 2012 2011
Cash provided by (used for) investing activities $ 2,945 $ (1,346) $ (6,238)
Cash provided by investing activities in 2013 increased $4.3 billion compared to 2012. The change was primarily due to the
proceeds received from the sale of the Performance Coatings business. See Note 2 to the Consolidated Financial Statements for
additional information.
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.
Purchases of property, plant and equipment totaled $1.9 billion in 2013 and $1.8 billion in 2012 and 2011. The company expects
2014 purchases of property, plant and equipment to be about the same as 2013.
(Dollars in millions) 2013 2012 2011
Cash (used for) provided by financing activities $(1,474) $ (2,697) $ 403
The $1.2 billion decrease in cash used for financing activities in 2013 was due primarily to higher borrowings and lower payments
for noncontrolling interests, partially offset by higher repurchases of common stock.
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.
Dividends paid to common and preferred shareholders were $1.7 billion, $1.6 billion, and $1.5 billion in 2013, 2012, and 2011,
respectively. Dividends per share of common stock were $1.78, $1.70, and $1.64 in 2013, 2012, and 2011, respectively. With the
first quarter 2014 dividend, the company has paid quarterly consecutive dividends since the company’s first dividend in the fourth
quarter 1904.
In January 2014, the company’s Board of Directors authorized a $5 billion share buyback plan, with $2 billion expected to occur
in 2014. This plan will replace the company’s 2011 plan. There is no required completion date for purchases under the 2014 plan.
In December 2012, the company's Board of Directors authorized a $1 billion share buyback plan. In February 2013, the company
entered into an accelerated share repurchase (ASR) agreement with a financial institution under which the company used $1 billion
of the proceeds from the sale of Performance Coatings for the purchase of shares of common stock. The 2012 $1 billion share
buyback plan was completed in the second quarter 2013 through the ASR agreement, under which the company purchased and
retired 20.4 million shares.
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. Under
the 2011 plan, the company has purchased 5.5 million shares at a total cost of $284 million as of December 31, 2013.