ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

Total cash disbursements for the purchase of property,plant and equipment and intangibles in 2010 amountedto $840 million, including $164 million for the purchase ofmachinery and equipment, $175 million for the purchase ofland and buildings, $54 million for the purchase of intangibleassets and $447 million capital expenditures for constructionin progress.Acquisition of businesses (net of cash acquired), in 2010,primarily related to the acquisition of Ventyx and certainsmaller acquisitions such as K-TEK in the United States andJokab Safety in Sweden.Net cash provided by (used in) financingactivities($ in millions) 2012 2011 2010Net changes in debt withmaturities of 90 days or less 570 450 52Increase in debt 5,986 2,580 277Repayment of debt (1,104) (2,576) (497)Purchase of shares – – (228)Delivery of shares 90 110 78Dividends paid (1,626) (1,569) –Dividends paid in the formof nominal value reduction – – (1,112)Acquisition of noncontrollinginterests (9) (13) (956)Dividends paid to noncontrollingshareholders (121) (157) (193)Other financing activities (24) (33) 49Net cash provided by (used in)financing activities 3,762 (1,208) (2,530)Our financing activities primarily include debt transactions(both from the issuance of debt securities and borrowingsdirectly from banks), share transactions, and dividends paid.The 2012 and 2011 net cash inflow from changes in debtwith maturities of 90 days or less, primarily reflects the netissuance of commercial paper under our commercial paperprogram in the United States. During the third quarter of2012, the program was increased to $2 billion, replacing thepre vious $1 billion program.In 2012, the cash inflows from increases in debtprimarily related to the issuance of the following bonds:EUR 1,250 million aggregate principal, 2.625 percent,due 2019; $1,250 million aggregate principal, 2.875 percent,due 2022; $750 million aggregate principal, 4.375 percent,due 2042; $500 million aggregate principal, 1.625 percent,due 2017; AUD 400 million aggregate principal, 4.25 percent,due 2017; and CHF 350 million aggregate principal, 1.50 percent,due 2018. In 2011, the cash inflows from increases indebt principally related to the issuance of the following bonds:$600 million aggregate principal, 2.5 percent, due 2016;$650 million aggregate principal, 4.0 percent, due 2021;CHF 500 million aggregate principal, 1.25 percent, due 2016;and CHF 350 million aggregate principal, 2.25 percent,due 2021. In 2010, the increase in debt primarily related toshort-term borrowings.During 2012, $1,104 million of debt was repaid, mainlyreflecting the repayment of part of the debt assumed from theacquisition of Thomas & Betts (approximately $320 million)and of other debt (primarily short-term bank borrowings). During2011, $2,576 million of bonds and other debt was repaid,primarily reflecting the repayment of $1.2 billion in debtassumed upon the acquisition of Baldor in January 2011 andthe repayment at maturity of 650 million euro of 6.5% EURInstruments, due 2011, (equivalent to $865 million at date ofrepayment). During 2010, $497 million of debt was repaidat maturity.During 2010, we purchased, on the open market, 12.1 millionof our own shares for use in connection with our employeeshare-based programs, resulting in a cash outflow of$228 million. During 2012 and 2011, there were no purchasesor sales of treasury stock on the open market.The acquisition of noncontrolling interests in 2010 of$956 million represented the cost of increasing our ownershipinterest in ABB Limited, India (our publicly-listed subsidiary inIndia) from approximately 52 percent to 75 percent.Disclosures aboutcontractual obligationsand commitmentsThe contractual obligations presented in the table belowrepresent our estimates of future payments under fixed contractualobligations and commitments. The amounts inthe table may differ from those reported in our ConsolidatedBalance Sheet at December 31, 2012. Changes in our businessneeds, cancellation provisions and changes in interestrates, as well as actions by third parties and other factors,may cause these estimates to change. Therefore, our actualpayments in future periods may vary from those presentedin the table. The following table summarizes certain of ourcontractual obligations and principal and interest paymentsunder our debt instruments, leases and purchase obligationsat December 31, 2012:Payments due by period TotalLessthan1 year1–3years3–5yearsMorethan5 years($ in millions)Long-term debt obligations 8,529 998 52 2,099 5,380Interest payments related tolong-term debt obligations 2,389 269 446 407 1,267Operating lease obligations 2,139 527 799 518 295Capital lease obligations (1) 188 31 52 23 82Purchase obligations 6,029 4,751 986 252 40Total 19,274 6,576 2,335 3,299 7,064(1)Capital lease obligations represent the total cash payments to be made in the futureand include interest expense of $83 million and executory cost of $2 million.76 Financial review | ABB Annual Report 2012