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Section 1: 8-K (HORMEL FOODS CORPORATION Q1 2018 8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D. C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported)   February 22, 2018
 
HORMEL FOODS CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
1-2402
41-0319970
(State or Other
Jurisdiction of
Incorporation)
(Commission File
Number)
(IRS Employer
Identification
Number)
 
1 Hormel Place
Austin, MN  55912
(Address of Principal Executive Office)
 
Registrant’s telephone number, including area code:  (507) 437-5611
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company   [  ]
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]




Section 2 – FINANCIAL INFORMATION
 
Item 2.02 Results of Operations and Financial Condition
 
On February 22, 2018, the Company issued an earnings release announcing its financial results for the first quarter ended January 28, 2018.  A copy of the earnings release is furnished as Exhibit 99 to this Form 8-K and is incorporated herein by reference.

 
Section 9 – FINANCIAL STATEMENTS AND EXHIBITS
 
Item 9.01 Financial Statements and Exhibits
 
(d)    Exhibits furnished pursuant to Item 2.02
 
 
 
 
 
 
 
 
SIGNATURES
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
HORMEL FOODS CORPORATION
 
 
(Registrant)
 
 
 
Dated: February 22, 2018
By
/s/ JAMES P. SNEE
 
 
JAMES P. SNEE
 
 
Chairman of the Board, President and
 
 
Chief Executive Officer
 
 
 
 
 
 
 
 
 
Dated: February 22, 2018
By
/s/ JAMES N. SHEEHAN
 
 
JAMES N. SHEEHAN
 
 
Senior Vice President and
 
 
Chief Financial Officer


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Section 2: EX-99 (EXHIBIT 99)

Exhibit

 
INVESTOR CONTACT:
Nathan Annis
(507) 437-5248
 
MEDIA CONTACT:        
Wendy Watkins       
(507) 437-5345        
[email protected]      

HORMEL FOODS ANNOUNCES RECORD FIRST QUARTER RESULTS AND INCREASES GUIDANCE DUE TO TAX REFORM
 
Company Plans to Invest a Portion of the Tax Savings to Drive Profitable Growth
 
AUSTIN, Minn. (February 22, 2018) – Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the first quarter of fiscal 2018. All earnings per share estimates assume a fiscal 2018 full year tax rate of 17.5 - 20.5 percent.
 
EXECUTIVE SUMMARY
Record diluted earnings per share of $0.56, up 27% from 2017 EPS of $0.44
Sales of $2.3 billion, up 2%; Organic net sales1 up 1%
Volume of 1.2 billion lbs., down 4%; Organic volume1 down 2%
Cash flow from operations of $304 million, up 56%
Operating margin of 13.2%
First quarter earnings benefited from $63 million, or EPS of $0.12, in one-time tax events
The lower statutory tax rate will provide approximately $110 to $140 million in additional cash flow in fiscal 2018
Fiscal 2018 effective tax rate guidance reduced to 17.5 - 20.5 percent from 32.3 - 33.3 percent due to U.S. corporate tax reform
Fiscal 2018 earnings guidance raised to $1.81 to $1.95 per share from $1.62 to $1.72 per share

COMMENTARY
“We are pleased to report a strong quarter of earnings growth. In addition to the benefit from tax reform, Grocery Products delivered excellent earnings growth which was partially offset by continued challenges at Jennie-O Turkey Store and higher-than-expected freight costs," said Jim Snee, chairman of the board, president, and chief executive officer. "This quarter we also completed the strategic acquisition of Columbus Craft Meats. The Columbus® brand is on-trend with today's consumer and meaningfully changes our presence in the deli while helping us become a broader food company. Tax reform had a positive impact on our business, and the additional funds will allow us to invest in profitable growth, invest in our employees and communities, and return cash back to shareholders," Snee said.

"For the quarter, Grocery Products, Refrigerated Foods, and International met our expectations. Organic sales growth was led by many key brands including retail sales of Hormel® Black Label® bacon, Wholly Guacamole® dips, Muscle Milk® protein beverages, and SPAM® products in addition to foodservice sales of Hormel® Bacon 1TM fully cooked bacon and Hormel® Fire BraisedTM meats."

"We recently announced the creation of a new deli division in Refrigerated Foods which will consolidate all our deli businesses across the enterprise including Columbus Craft Meats, the Jennie-O Turkey Store deli division, the Hormel® and Di Lusso® deli brands, and Hormel Gatherings® party trays. This new deli organization will help retailers drive growth in this on-trend and growing category with an unmatched array of innovative solutions. Our new deli division represents almost $1 billion in annual sales and will be the Company's next growth engine."
 

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IMPACT OF THE TAX CUTS AND JOBS ACT
Investment for Growth
“Tax reform will have a clear benefit to all Hormel Foods stakeholders - our shareholders, our employees, and the communities in which we operate. The ongoing cash tax benefit will provide additional funds, allowing us to accelerate the growth of our business. We intend to make additional strategic, disciplined capital investments into innovation, technology, and automation which will improve our operating efficiencies and enhance margins. We also plan to invest a portion of the tax benefit back into our business to drive incremental sales and earnings growth. Our priorities are to invest in growing key domestic brands such as Jennie-O®, Hormel® Pepperoni®, Skippy®, Muscle Milk®, and our new plant-based protein brand Evolve®."

Investing in Our Employees and Communities
"In addition to awarding our over 20,000 employees stock options, we will raise our starting wage for all employees to $13 per hour by the end of fiscal 2018 and to $14 per hour by the end of fiscal 2020. We also pledged an additional $25 million in donations over the next five years as supporting our communities through product and monetary donations is important to us."

Returning Cash to Shareholders
"Our unwavering commitment to returning cash back to our shareholders in the form of consistent dividend increases and share buybacks will not change. With 52 consecutive years of dividend increases, we are an S&P 500 Dividend Aristocrat and we intend to continue that track record."

Financial Impact
The passage of The Tax Cuts and Jobs Act in December 2017 lowered the Company's long-term effective tax rate. In the first quarter, the Company recorded a one-time non-cash tax benefit of $68 million related to revaluing deferred tax liabilities and a $5 million charge related to mandatory repatriation tax. The one-time tax events and reduction in the federal statutory tax rate were the main drivers of the Company's first quarter effective tax rate of 0.6 percent versus 33.7 percent last year.

For fiscal 2018, the Company expects an effective tax rate of between 17.5 to 20.5 percent compared to original guidance of 32.3 to 33.3 percent. The change is due primarily to the decrease in the statutory tax rate, one-time discrete tax events, and the adoption of new accounting standards related to stock compensation. The full year cash flow benefit is expected to be between $100 - $140 million. For Fiscal 2019 and beyond, the Company expects an effective tax rate of between 21.5 to 24.5 percent.
 
SEGMENT HIGHLIGHTS – FIRST QUARTER

Grocery Products
 
Volume down 1%
Net sales up 1%
Segment profit up 8%

Beginning this quarter, the Specialty Foods segment was merged with, and is reported in, the Grocery Products segment. Strong sales growth from Wholly Guacamole® dips, Muscle Milk® protein products, Hormel® Compleats® microwave meals, Herdez® salsas, and the SPAM® family of products more than offset declines from our contract manufacturing business. CytoSport posted volume and sales gains with Muscle Milk® and Evolve® protein products delivering strong double-digit sales increases. Segment profit increased due to strong earnings growth from the Wholly Guacamole® and Herdez® brands and a one-time tax gain in our MegaMex joint venture; lower selling, general and administrative expenses; and improved earnings from our Justin's® and Skippy®nut butter brands. 

2


Refrigerated Foods
 
Volume down 8%; Organic volume1 down 1%
 Net sales up 5%; Organic net sales1 up 4%
Segment profit down 18%
 
Sales increases were related to the inclusion of Columbus and Fontanini but were partially offset by the divestiture of the Farmer John business. Foodservice sales of Hormel® Bacon 1TM fully cooked bacon and Hormel® pizza toppings and retail sales of Hormel® Black Label® bacon and Applegate® natural and organic products contributed to the organic sales growth. Segment profit declined due to one-time transaction costs of two cents EPS for the Columbus acquisition, the divestiture of the Farmer John business representing one cent EPS, and increased freight expenses. Harvest volumes decreased by 17 percent due to the divestiture of Farmer John and harvest reductions in our Midwest production facilities. Hog markets were higher than last year but in line with expectations.
 
Jennie-O Turkey Store
 
Volume down 4%
Net sales down 7%
Segment profit down 27%
 
Volume and sales declines were due primarily to lower harvest volumes and lower turkey commodity prices as a result of continued oversupply of turkeys in the industry and excess meat in cold storage. Sales declines of whole birds were partially offset by increased retail sales, led by Jennie-O® lean ground turkey and Jennie-O® Oven Ready® products. Segment profit decreased as a result of lower profits from whole bird and commodity sales, and increased freight expenses. Lower selling, general, and administrative expenses offset a portion of the earnings decline. Feed costs were flat to last year and in line with expectations. Commodity turkey breast markets remain at multi-year lows, and inventories continue to be elevated. Commodity markets for whole birds were significantly below last year and below our expectations.

International & Other
 
Volume up 14%; Organic volume1 down 3%
Net sales up 19%; Organic net sales1 up 2%
Segment profit down 3%
 
International sales increased due to the addition of sales by the Ceratti business in Brazil, increased export sales, and strong results in China. Earnings decreased as higher costs of goods for exports were partially offset by the inclusion of the Ceratti business and improving profitability in China due to lower raw material costs.

SELECTED FINANCIAL DETAILS
The Company will webcast a presentation of first quarter earnings at the Consumer Analyst Group of New York conference on February 22, 2018, in lieu of an earnings conference call. As such, incremental commentary relating to the financial statements is provided.

Income Statement
Advertising expenses were $40 million compared to $52 million. The decrease is related to timing. Full year advertising expenses are expected to increase by more than 20 percent.
Selling, general and administrative expenses increased due to transaction costs of two cents EPS related to the Columbus Craft Meats acquisition.

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Operating margin was 13.2% compared to 15.6%. Higher hog costs, one-time transaction expenses related to the Columbus acquisition, and increased freight expenses were the primary contributors to the operating margin decline.

Cash Flow Statement
Working capital decreased to $625 million, primarily related to an increase in short-term debt and lower accounts receivable.
Capital expenditures were $54 million compared to $38 million last year. Full year capital expenditures are expected to total $425 million. Key projects include bacon capacity increases in our Wichita, Kans., facility, a new whole bird facility in Melrose, Minn., modernization of the Austin, Minn., plant, and projects designed to increase value-added capacity.
Depreciation and amortization expense was $39 million compared to $31 million last year. Full year expenses are expected to be approximately $145 million.
Share repurchases totaled $25 million, representing 0.7 million shares purchased.
The Company paid its 358th consecutive quarterly dividend at the annual rate of $0.75 per share, a 10 percent increase over the prior year.

Balance Sheet
Cash on hand decreased to $386 million as a result of the Columbus Craft Meats acquisition.
Total debt increased to approximately $880 million as a result of the Columbus Craft Meats acquisition. The debt is split between short-term borrowings of $255 million and long-term borrowings of $625 million.
The Company remains in a strong financial position to fund any other capital needs.

OUTLOOK
"Fiscal 2018 brings both opportunities and challenges," Snee said. "Tax reform will have a clear benefit and allow us to increase investments into our business to drive long-term profitable growth. We continue to build earnings power through our three recent strategic acquisitions and increased capital investments for value-added capacity. While our expectations for Grocery Products, Refrigerated Foods and International have not changed, we project a slower-than-expected recovery at Jennie-O Turkey Store as we continue to work through a difficult operating environment in the turkey industry. Freight costs will continue to be a headwind for the balance of the year and we are working to mitigate the impact through long-term sustainable solutions across our entire supply chain."

"Taking all factors into consideration, we are increasing our earnings guidance to $1.81 - $1.95 per share while leaving our sales guidance unchanged. Our plan remains back-half weighted aided by acquisitions, innovation, and cost efficiencies."
 
 
Revised Outlook
Original Outlook
Net Sales Guidance (in billions)
$9.70 - $10.10
$9.70 - $10.10
Earnings per Share Guidance
$1.81 - $1.95
$1.62 - $1.72

PRESENTATION
 
The Company's presentation of its first quarter earnings at the Consumer Analyst Group of New York conference will be webcast live at 5:00 p.m. ET on Thursday, February 22, 2018. Access is available at www.hormelfoods.com. The webcast replay will be available at 6:00 a.m. CT, Friday, February 23, 2018, and will remain on our website for one year.


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ABOUT HORMEL FOODS - Inspired People. Inspired Food.™
 
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenues across more than 80 countries worldwide. Its brands include Skippy®, SPAM®, Hormel® Natural Choice®, Columbus®, Applegate®, Justin’s®, Wholly Guacamole®, Hormel® Black Label® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the ninth year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. In 2016, the company celebrated its 125th anniversary and announced its new vision for the future - Inspired People. Inspired Food.™
- focusing on its legacy of innovation. For more information, visit www.hormelfoods.com and http://csr.hormelfoods.com/.
 
FORWARD-LOOKING STATEMENTS
 
This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors which appear on pages 31 - 35 in the Company’s 2017 annual report, which can be accessed at www.hormelfoods.com under “Investors - Filings & Reports - Annual Reports & Proxy Statements.”



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1 COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS
 
The non-GAAP adjusted financial measurements of organic net sales and organic volume are presented to provide investors additional information to facilitate the comparison of past and present operations. The company believes these non-GAAP financial measurements provide useful information to investors because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

Organic net sales and organic volume are defined as net sales and volume excluding the impact of acquisitions and divestitures. Organic net sales and organic volume exclude the impacts of the acquisition of Columbus Craft Meats (November 2017), the acquisition of Fontanini Italian Meats and Sausages (August 2017), and the divestiture of Farmer John (January 2017) in Refrigerated Foods and the acquisition of Ceratti (August 2017) in International. The tables below show the calculations to reconcile from the non-GAAP adjusted measures to the GAAP measures in the first quarter of fiscal 2018 and fiscal 2017.

NON-GAAP1 VOLUME AND SALES DATA    
1st Quarter
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Volume (lbs.)
 
FY 2018
 
FY 2017
 
 
(in thousands)
 
Reported
(GAAP)
 
Acquisitions
 
Organic
(Non-GAAP)
 
Reported
(GAAP)
 
Divestitures
 
Organic
(Non-GAAP)
 
Organic
% change
Grocery Products
 
334,217

 


 
334,217

 
338,792

 


 
338,792

 
(1.4
)
Refrigerated Foods
 
562,495

 
(31,660
)
 
530,835

 
614,425

 
(80,454
)
 
533,971

 
(0.6
)
Jennie-O Turkey Store
 
208,431

 


 
208,431

 
216,643

 


 
216,643

 
(3.8
)
International & Other
 
85,449

 
(12,833
)
 
72,616

 
75,049

 


 
75,049

 
(3.2
)
Total Volume
 
1,190,592

 
(44,493
)
 
1,146,099

 
1,244,909

 
(80,454
)
 
1,164,455

 
(1.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
FY 2018
 
FY 2017
 
 
(in thousands)
 
Reported
(GAAP)
 
Acquisitions
 
Organic
(Non-GAAP)
 
Reported
(GAAP)
 
Divestitures
 
Organic
(Non-GAAP)
 
Organic
% change
Grocery Products
 
$
613,870

 


 
$
613,870

 
$
610,374

 


 
$
610,374

 
0.6

Refrigerated Foods
 
1,176,456

 
(111,017
)
 
1,065,439

 
1,123,039

 
(100,231
)
 
1,022,808

 
4.2

Jennie-O Turkey Store
 
390,648

 


 
390,648

 
420,989

 


 
420,989

 
(7.2
)
International & Other
 
150,319

 
(21,855
)
 
128,464

 
125,825

 


 
125,825

 
2.1

Total Net Sales
 
$
2,331,293

 
$
(132,872
)
 
$
2,198,421

 
$
2,280,227

 
$
(100,231
)
 
$
2,179,996

 
0.8

 

Statements Follow

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HORMEL FOODS CORPORATION
SEGMENT DATA
(Unaudited) (In thousands)

 
 
 
 
 

 
 
Thirteen Weeks Ended
 
 
 
 
January 28, 2018
 
January 29, 2017
 
% Change
NET SALES
 
 
 
 
 
 
Grocery Products
 
$
613,870

 
$
610,374

 
0.6

Refrigerated Foods
 
1,176,456

 
1,123,039

 
4.8

Jennie-O Turkey Store
 
390,648

 
420,989

 
(7.2
)
International & Other
 
150,319

 
125,825

 
19.5

Total
 
$
2,331,293

 
$
2,280,227

 
2.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING PROFIT
 
 

 
 

 
 

Grocery Products
 
$
99,977

 
$
92,376

 
8.2

Refrigerated Foods
 
142,949

 
173,808

 
(17.8
)
Jennie-O Turkey Store
 
49,874

 
68,180

 
(26.8
)
International & Other
 
24,655

 
25,463

 
(3.2
)
Total segment operating profit
 
317,455

 
359,827

 
(11.8
)
Net interest and investment expense (income)
 
1,423

 
577

 
146.6

General corporate expense
 
10,971

 
4,621

 
137.4

Less: Noncontrolling interest
 
104

 
156

 
(33.3
)
Earnings Before Income Taxes
 
$
305,165

 
$
354,785

 
(14.0
)


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HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share amounts)


 
 
 
 
 
 
 
Thirteen Weeks Ended
 
 
January 28, 2018
 
January 29, 2017
Net sales
 
$
2,331,293

 
$
2,280,227

Cost of products sold
 
1,829,114

 
1,727,947

GROSS PROFIT
 
502,179

 
552,280

Selling, general and administrative
 
219,122

 
210,217

Equity in earnings of affiliates
 
23,531

 
13,299

OPERATING INCOME
 
306,588

 
355,362

Other income & expenses:
 
 

 
 

Interest & investment income
 
3,306

 
2,449

Interest expense
 
(4,729
)
 
(3,026
)
EARNINGS BEFORE INCOME TAXES
 
305,165

 
354,785

Provision for income taxes
 
1,954

 
119,482

(effective tax rate)
 
0.64
%
 
33.68
%
NET EARNINGS
 
303,211

 
235,303

Less: net earnings attributable to noncontrolling interest
 
104

 
156

NET EARNINGS ATTRIBUTABLE TO HORMEL
 
 
 
 
   FOODS CORPORATION
 
$
303,107

 
$
235,147

 
 
 
 
 
NET EARNINGS PER SHARE
 
 

 
 

Basic
 
$
0.57

 
$
0.44

Diluted
 
$
0.56

 
$
0.44

 
 
 
 
 
WEIGHTED AVG. SHARES OUTSTANDING
 
 

 
 

Basic
 
529,453

 
528,585

Diluted
 
543,482

 
540,064

 
 
 
 
 
DIVIDENDS DECLARED PER SHARE
 
$
0.1875

 
$
0.1700


8

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) (In thousands)

 
 
 
 
 
 
 
January 28, 2018
 
October 29, 2017
ASSETS
CURRENT ASSETS
 
 

 
 

Cash and cash equivalents
 
$
385,775

 
$
444,122

Accounts receivable
 
569,099

 
618,351

Inventories
 
973,221

 
921,022

Income taxes receivable
 
176

 
22,346

Prepaid expenses
 
15,581

 
16,144

Other current assets
 
4,417

 
4,538

TOTAL CURRENT ASSETS
 
1,948,269

 
2,026,523

INTANGIBLES
 
3,980,785

 
3,146,827

OTHER ASSETS
 
636,728

 
599,307

PROPERTY, PLANT & EQUIPMENT, NET
 
1,293,066

 
1,203,251

TOTAL ASSETS
 
$
7,858,848

 
$
6,975,908

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
CURRENT LIABILITIES
 
 
 
 
  Short-term debt
 
$
255,000

 
$

  Current liabilities excluding debt
 
1,068,514

 
1,058,212

    TOTAL CURRENT LIABILITIES
 
1,323,514

 
1,058,212

LONG-TERM DEBT – LESS CURRENT MATURITIES
 
624,726

 
250,000

DEFERRED INCOME TAXES
 
114,688

 
98,410

OTHER LONG-TERM LIABILITIES
 
640,546

 
629,589

SHAREHOLDERS’ INVESTMENT
 
5,155,374

 
4,939,697

TOTAL LIAB. & SHAREHOLDERS’ INVESTMENT
 
$
7,858,848

 
$
6,975,908


9

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)


 
 
 
 
 
 
 
Thirteen Weeks Ended
 
 
January 28, 2018
 
January 29, 2017
OPERATING ACTIVITIES
 
 

 
 

Net earnings
 
$
303,211

 
$
235,303

Depreciation and amortization of intangibles
 
39,123

 
31,319

Decrease (increase) in working capital
 
58,879

 
(77,043
)
Other
 
(97,036
)
 
5,670

NET CASH PROVIDED BY OPERATING ACTIVITIES
 
304,177

 
195,249

 
 
 
 
 
INVESTING ACTIVITIES
 
 

 
 

Proceeds from sale of business
 

 
135,944

Acquisitions of businesses/intangibles
 
(858,102
)
 

Net purchases of property/equipment
 
(52,943
)
 
(33,969
)
Decrease in investments, equity in affiliates, and other assets
 
5,746

 
3,596

NET CASH USED IN (PROVIDED BY) INVESTING ACTIVITIES
 
(905,299
)
 
105,571

 
 
 
 
 
FINANCING ACTIVITIES
 
 

 
 

Net proceeds (payments) from short-term debt
 
255,000

 

Net proceeds (payments) from long-term debt
 
374,726

 

Dividends paid on common stock
 
(89,814
)
 
(76,629
)
Share repurchase
 
(25,199
)
 
(30,588
)
Other
 
23,455

 
7,398

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
 
538,168

 
(99,819
)
Effect of exchange rate changes on cash
 
4,607

 
(6,323
)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
(58,347
)
 
194,678

Cash and cash equivalents at beginning of year
 
444,122

 
415,143

CASH AND CASH EQUIVALENTS AT END OF QUARTER
 
$
385,775

 
$
609,821



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