Quest Diagnostics 2015 Annual Report Download - page 72

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68
Cash Flows from Financing Activities
Net cash (used in) provided by financing activities for the year ended December 31, 2015 was $(507) million,
compared to $92 million for the year ended December 31, 2014. This $599 million increase in cash used in financing activities
was primarily a result of a $455 million decrease in net borrowings (proceeds from borrowings less repayments of debt), a $92
million increase in repurchases of our common stock (discussed in "Share Repurchases"), a $25 million increase in dividends
paid as a result of higher dividend rates in 2015 (discussed in "Dividends") and an $18 million decrease in proceeds from the
exercise of stock options. Net cash used in financing activities for the year ended December 31, 2015, also includes $51
million of deferred acquisition consideration payments, primarily to UMass Memorial Medical Center ("UMass") related to the
business acquisition in 2013, and $63 million of proceeds from the sale of a noncontrolling interest in a subsidiary to UMass.
Net cash provided by (used in) financing activities for the year ended December 31, 2014 was $92 million, compared
to $(1.1) billion for the year ended December 31, 2013. The $1.2 billion increase in cash provided by financing activities was
primarily a result of a $375 million net increase in debt, primarily a result of borrowings of $598 million from our Senior Notes
Offering in March 2014, partially offset by the $200 million repayment of our floating rate senior notes due March 2014, and a
$904 million decrease in repurchases of our common stock (discussed in "Share Repurchases"). These increases in cash
provided by financing activities were partially offset by a $60 million decrease in proceeds from the exercise of stock options.
In 2015, we borrowed $1.3 billion under our secured receivables credit facility, all of which was repaid in 2015. In
2014, we borrowed $1.2 billion under our secured receivables credit facility and $200 million under our senior unsecured
revolving credit facility, all of which was repaid in 2014.
For details regarding our 2015 Senior Notes Offering, see "Recent Transactions: Senior Notes Offering" and Note 13
to the consolidated financial statements. For details regarding our 2014 Senior Notes Offering, see Note 13 to the consolidated
financial statements
Dividends
During each of the quarters of 2015, our Board of Directors declared a quarterly cash dividend of $0.38 per common
share. During each of the quarters of 2014, our Board of Directors declared a quarterly cash dividend of $0.33 per common
share. During each of the quarters in 2013, our Board of Directors declared a quarterly cash dividend of $0.30 per common
share. We expect to fund future dividend payments with cash flows from operations, and do not expect the dividend to have a
material impact on our ability to finance future growth.
On January 28, 2016, we announced that our Board of Directors authorized a 5% increase in our quarterly dividend
from $0.38 per share to $0.40 per share, or $1.60 annually, commencing with the dividend payable in April 2016.
Share Repurchases
In December 2015, our Board of Directors authorized us to repurchase an additional $500 million of our common
stock. In August 2013, our Board of Directors authorized us to repurchase an additional $1 billion of our common stock. At
December 31, 2015, $972 million remained available under the share repurchase authorization.
For the year ended December 31, 2015, we repurchased 3.2 million shares of our common stock for $224 million. For
the year ended December 31, 2014, we repurchased 2.2 million shares of our common stock for $132 million. For the year
ended December 31, 2013, we repurchased 17.4 million shares of our common stock for $1.0 billion, including 13.3 million
shares repurchased under accelerated share repurchase agreements for $800 million. For further details regarding our share
repurchases, see Note 15 to the consolidated financial statements.
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K