Raytheon 2014 Annual Report Download - page 76

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Share repurchases also include shares surrendered by employees to satisfy tax withholding obligations in connection with
restricted stock, restricted stock units and stock option awards issued to employees.
Our share repurchases were as follows:
(In millions) 2014 2013 2012
$ Shares $ Shares $ Shares
Shares repurchased under our share repurchase programs $ 750 7.7 $ 1,075 15.2 $ 825 15.9
Shares repurchased to satisfy tax withholding obligations 90 0.9 48 0.8 37 0.7
Total share repurchases $ 840 8.6 $ 1,123 16.0 $ 862 16.6
In May 2010, our stockholders approved the Raytheon 2010 Stock Plan. Under the plan, we may grant restricted stock awards,
restricted stock units, stock grants, stock options and stock appreciation rights.
Cash Dividends—Our Board of Directors authorized the following cash dividends:
(In millions, except per share amounts) 2014 2013 2012
Cash dividends per share $2.42 $2.20 $2.00
Total dividends paid 735 694 643
In March 2014, our Board of Directors authorized a 10% increase to our annual dividend payout rate from $2.20 to $2.42 per
share. In March 2013, our Board of Directors authorized a 10% increase in our annual dividend payout rate from $2.00 to
$2.20 per share. Dividends are subject to quarterly approval by our Board of Directors.
CAPITAL RESOURCES
Total debt was $5.3 billion at December 31, 2014, and $4.7 billion December 31, 2013. Our outstanding debt bears contractual
interest at fixed interest rates ranging from 2.5% to 7.2% and matures at various dates from 2018 through 2044.
Cash and Cash Equivalents and Short-term Investments—Cash and cash equivalents and short-term investments were $4.7
billion and $4.3 billion at December 31, 2014 and December 31, 2013, respectively. We may invest in U.S. Treasuries; AAA/
Aaa rated money market funds; certificates of deposit, time deposits and commercial paper of banks with a minimum long-
term debt rating of A or A2 and minimum short-term debt rating of A-1 and P-1, and commercial paper of corporations with
a minimum long-term debt rating of A- or A3 and minimum short-term debt rating of A-2 and P-2. Cash and cash equivalents
and short-term investments balances held at our foreign subsidiaries were approximately $715 million and $810 million at
December 31, 2014 and December 31, 2013, respectively. In the first quarter of 2014, a foreign subsidiary authorized and
completed a transaction which resulted in a taxable dividend of approximately $115 million. The transaction does not affect
our indefinite reinvestment assertion because it generated a net tax benefit of approximately $80 million. Earnings from our
foreign subsidiaries are currently deemed to be indefinitely reinvested. We do not expect such reinvestment to affect our
liquidity and capital resources, and we continuously evaluate our liquidity needs and ability to meet global cash requirements
as a part of our overall capital deployment strategy. Factors that affect our global capital deployment strategy include anticipated
cash flows, the ability to repatriate cash in a tax efficient manner, funding requirements for operations and investment activities,
acquisitions and divestitures, and capital market conditions.
Credit Facilities—In December 2011, we entered into a $1.4 billion revolving credit facility maturing in 2016. Under the $1.4
billion credit facility, we can borrow, issue letters of credit and backstop commercial paper. Borrowings under this facility
bear interest at various rate options, including LIBOR plus a margin based on our credit ratings. Based on our credit ratings
at December 31, 2014, borrowings would generally bear interest at LIBOR plus 79.5 basis points. The credit facility is
comprised of commitments from approximately 25 separate highly rated lenders, each committing no more than 10% of the
facility. As of December 31, 2014 and December 31, 2013, there were no borrowings outstanding under this credit facility.
However, we had $2 million of outstanding letters of credit at December 31, 2014 and December 31, 2013, which effectively
reduced our borrowing capacity under this credit facility by those same amounts.
Under the $1.4 billion credit facility we must comply with certain covenants, including a ratio of total debt to total capitalization
of no more than 60%. We were in compliance with the credit facility covenants during 2014 and 2013. Our ratio of total debt
to total capitalization, as those terms are defined in the credit facility, was 35.9% at December 31, 2014. We are providing