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39
2012
Net cash used in financing activities for the year ended December 31, 2012 primarily consisted of stock repurchases of $400
million and dividend payments of $284 million.
On November 20, 2012, we completed the issuance of $500 million aggregate principal amount of senior unsecured notes
consisting of $250 million aggregate principal amount of our 2.00% senior notes due January 15, 2020 and $250 million aggregate
principal amount of our 2.70% senior notes due November 15, 2022.
On December 21, 2012, we repaid $450 million of our 2.35% senior notes due December 21, 2012 at maturity.
2011
Net cash used in financing activities for the year ended December 31, 2011 primarily consisted of stock repurchases of $522
million and dividend payments of $251 million.
On January 11, 2011, we completed the issuance of $500 million aggregate principal amount of 2.90% senior notes due
January 15, 2016.
On November 15, 2011, we completed the issuance of $500 million aggregate principal amount of senior unsecured notes
consisting of $250 million aggregate principal amount of 2.60% senior notes due January 15, 2019 and $250 million aggregate
principal amount of 3.20% senior notes due November 15, 2021.
On December 21, 2011, we repaid $400 million of our 1.70% senior notes due December 21, 2011 at maturity.
Debt Ratings
As of December 31, 2013, our debt ratings were Baa1 with a stable outlook from Moody's and BBB+ with a stable outlook
from S&P. On November 13, 2013, S&P raised our rating from BBB with a positive outlook to BBB+ with a stable outlook. Our
commercial paper ratings were P-2/A-2 from Moody's and S&P, respectively.
These debt and commercial paper ratings impact the interest we pay on our financing arrangements. A downgrade of one or
both of our debt and commercial paper ratings could increase our interest expense and decrease the cash available to fund anticipated
obligations.
Cash Management
We fund our liquidity needs from cash flow from operations, cash on hand or amounts available under our financing
arrangements, as Commercial Paper is now a more significant part of our overall cash management strategy.
Capital Expenditures
Capital expenditures were $179 million, $217 million and $238 million for the years ended December 31, 2013, 2012 and
2011, respectively. Capital expenditures have reduced over the last three years as a result of a stronger focus on the return on our
discretionary capital expenditures, the result of our RCI initiatives and reduced infrastructure investments required after our
separation from Cadbury. Capital expenditures for the years ended December 31, 2013 and 2012 primarily related to machinery
and equipment, IT investments, expansion and replacement of existing cold drink equipment, plant improvements and our
distribution fleet. Capital expenditures for the year ended December 31, 2011 primarily consisted of expansion of our capabilities
in existing facilities, cold drink equipment and IT investments for new systems.
In 2014, we expect to incur annual capital expenditures, net of proceeds from disposals, in an amount approximately 3.00%
of our net sales, which we expect to fund through cash provided by operating activities.