Mondelez 2014 Annual Report Download - page 48

Table of Contents
Debt:
From time to time we refinance long-term and short-term debt. The nature and amount of our long-term and short-
term debt and the
proportionate amount of each varies as a result of current and expected business requirements, market conditions and other
factors. Generally, in the first and second quarters of the year, our working capital requirements grow, increasing the need for short-
term financing. The third and fourth quarters of the year typically generate higher cash flows. As such, we may issue commercial
paper or secure other forms of financing throughout the year to meet short-term working capital needs.
In February 2014, our Board of Directors approved a $5 billion long-term financing authority that remains available as of
December 31, 2014.
In the next 12 months, $1,513 million of long-term debt will mature as follows: $1,029 million in March 2015 and € 400 million ($484
million as of December 31, 2014) in June 2015. We expect to fund these repayments with cash from operations and the issuance of
commercial paper or additional debt.
Our total debt was $16.7 billion at December 31, 2014 and $17.1 billion at December 31, 2013. Our debt-to-capitalization ratio was
0.38 at December 31, 2014 and 0.35 at December 31, 2013. At December 31, 2014, the weighted-average term of our outstanding
long-term debt was 7.7 years. Our average daily commercial borrowings were $1.9 billion in 2014, $1.0 billion in 2013 and $1.0
billion in 2012. We expect to continue to comply with our long-term debt covenants. Refer to Note 8, Debt and Borrowing
Arrangements
, for more information on our debt and debt covenants.
Equity and Dividends
Stock Plans:
See Note 12, Stock Plans , to the consolidated financial statements for more information on our stock plans, grant activity during
2014, 2013 and 2012, and stock award modifications related to the Spin-Off.
Share Repurchases:
See Note 13, Capital Stock
, to the consolidated financial statements for more information on our share repurchase and accelerated
share repurchase programs.
We intend to continue to use a portion of our cash for share repurchases. Under our current Board of Directors’ authorization to
repurchase up to $7.7 billion of our Common Stock through December 31, 2016, we have repurchased $4.6 billion ($1.9 billion in
2014 and $2.7 billion in 2013) of shares, with $3.1 billion of share repurchase capacity remaining. The number of shares that we
ultimately repurchase under our share repurchase program may vary depending on numerous factors, including share price and
other market conditions, our ongoing capital allocation planning, levels of cash and debt balances, other demands for cash, such as
acquisition activity, general economic or business conditions and board and management discretion. Additionally, our share
repurchase activity during any particular period may fluctuate. We may accelerate, suspend, delay or discontinue our share
repurchase program at any time, without notice.
Dividends:
We paid dividends of $964 million in 2014, $943 million in 2013 and $2,058 million in 2012. Immediately following the Spin-Off of
Kraft Foods Group, Inc. on October 1, 2012, our annual dividend rate changed to $0.52 per common share. On August 6, 2013, our
Audit Committee, with authorization from our Board of Directors, approved an 8% increase in the quarterly dividend to $0.14 per
common share or $0.56 per common share on an annual basis. On August 5, 2014, our Audit Committee, with authorization from
our Board of Directors, approved a 7% increase in the quarterly dividend to $0.15 per common share or $0.60 per common share
on an annual basis. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various
factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of
Directors deems relevant to its analysis and decision making.
45