DuPont 2014 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 2014 DuPont annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
33
Cash provided by operating activities decreased $1.7 billion in 2013 compared to 2012 due to lower cash from earnings and higher
working capital in the Agriculture segment. Lower earnings were driven by the absence of 11 months of results from the Performance
Coatings business as well as a decline in the Performance Chemicals segment. Higher working capital in the Agriculture segment
was a result of higher trade receivables due to an increase in sales in the fourth quarter 2013 as well as an increase in customer
credit sales in Latin America. In addition the Agriculture segment's working capital was negatively impacted in 2013 as a result
of timing differences in when customer prepayments for the 2012 and 2013 growing seasons were collected.
(Dollars in millions) 2014 2013 2012
Cash (used by) provided by investing activities $(337) $ 2,945 $ (1,346)
Cash used by investing activities in 2014 decreased $3.3 billion compared to 2013. The change was primarily due to lower proceeds
received from the sale of businesses in 2014 compared to 2013.
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.
Purchases of property, plant and equipment totaled $2.0 billion, $1.9 billion and $1.8 billion in 2014, 2013, and 2012, respectively.
The company expects 2015 purchases of property, plant and equipment to about $1.8 billion.
(Dollars in millions) 2014 2013 2012
Cash used for financing activities $(5,074) $ (1,474) $ (2,697)
The $3.6 billion increase in cash used for financing activities in 2014 was primarily due to lower borrowings and higher payments
for the repurchase of common stock.
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.
Dividends paid to common and preferred shareholders were $1.7 billion, $1.7 billion, and $1.6 billion in 2014, 2013, and 2012,
respectively. Dividends per share of common stock were $1.84, $1.78, and $1.70 in 2014, 2013, and 2012, respectively. With the
first quarter 2015 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 that replaced the 2011 plan. In
February and August 2014, the company entered into two separate accelerated share repurchase (ASR) agreements. The February
2014 ASR agreement was completed in the second quarter of 2014, under which the company purchased and retired 15.1 million
shares for $1 billion. The August 2014 ASR agreement was completed in the fourth quarter of 2014, under which the company
purchased and retired 10.4 million shares for $700 million. In addition to the ASR agreements, in 2014, the company repurchased
and retired 4.7 million shares in the open market for a total cost of $300 million. As a result, the company has completed $2 billion
of repurchases as of December 31, 2014. The remainder of the $5 billion share buyback will be purchased in future periods as
there is no required completion date for purchases under the 2014 plan. See Part I, Item 5 Market for Registrant's Common Equity,
Related Stockholder Matters and Issuer Purchases of Equity Securities and Note 16 to the Consolidated Financial Statements for
additional information.
In December 2012, the company's Board of Directors authorized a $1 billion share buyback plan. In February 2013, the company
entered into an 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.