Cash Dividends-Our Board of Directors authorized the following cash dividends:
Six Months Ended
(In millions, except per share amounts)
343 313 In
March 2013, our Board of Directors authorized a 10% increase to our annual dividend payout rate from $2.00to $2.20per share. Dividends are subject to quarterly approval by our Board of Directors. CAPITAL RESOURCES Total debt was $4.7 billionat June 30, 2013and December 31, 2012. 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 2041. Cash and Cash Equivalents and Short-Term Investments-Cash and cash equivalents and short-term investments were approximately $3.5 billionat June 30, 2013and $4.0 billionat December 31, 2012. 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 A1 and minimum short-term debt rating of A-1 and P-1. Cash and cash equivalents and short-term investments balances held at our foreign subsidiaries were approximately $713 millionand $725 millionat June 30, 2013and December 31, 2012, respectively. 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 billionrevolving credit facility maturing in 2016, replacing the previous $500 millionand $1.0 billioncredit facilities, which were both scheduled to mature in November 2012. Under the $1.4 billioncredit 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 June 30, 2013, borrowings would generally bear interest at LIBOR plus 90 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 June 30, 2013and December 31, 2012, there were no borrowings outstanding under this credit facility. However, we had $2 millionof outstanding letters of credit at June 30, 2013and December 31, 2012, which effectively reduced our borrowing capacity under this credit facility by those same amounts.