2005 Financial Review
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
LIQUIDITY AND CAPITAL RESOURCES
Financing Activities
Summary of Financing Activities
| Years Ended December 31, | ||||
| (In millions) | 2005 | 2004 | 2003 | |
| Net borrowings (repayments) of debt: | ||||
| Short-term debt | $ | 14.0 | (7.9) | (14.3) |
| Revolving Facility | 107.1 | (12.5) | (98.1) | |
| Senior Notes | (18.3) | - | - | |
| Other | (16.2) | (16.4) | (1.8) | |
| Net borrowings (repayments) of debt | 86.6 | (36.8) | (114.2) | |
| Dividends | (5.5) | (5.4) | (5.3) | |
| Dividends to minority interests in subsidiaries | (6.7) | (4.8) | (2.9) | |
| Proceeds from exercise of stock options and other | 26.9 | 22.4 | 1.1 | |
| Discontinued operations, net | (7.7) | (2.3) | (4.6) | |
| Cash flows from financing activities | $ | 93.6 | (26.9) | (125.9) |
The Company’s day-to-day operating liquidity needs are typically financed by short-term debt, the accounts receivable securitization facility (through December 15, 2005 when the facility expired), and the Company’s Revolving Facility and Letter of Credit Facility, both of which are described below in “Capitalization.”
With proceeds from the sale of BAX Global, the Company paid $46 million of debt in January 2006. The Company expects to make a self-tender offer for a portion of its outstanding common stock, which is expected to result in significant cash outflows of between $400 million and $600 million during 2006.
The Company paid quarterly dividends on its common stock at an annual rate of $0.10 per share in each of the last three years. Dividends paid on common stock totaled $5.5 million in 2005, $5.4 million in 2004 and $5.3 million in 2003.
Future dividends are dependent on the earnings, financial condition, cash flow and business requirements of the Company, as determined by the Board. On January 26, 2006, the Board declared a quarterly cash dividend of $0.025 per share of common stock, payable on March 1, 2006 to shareholders of record on February 8, 2006.