Honeywell 2015 Annual Report Download - page 26

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LIQUIDITY AND CAPITAL RESOURCES
The Company continues to manage its businesses to maximize operating cash flows as the primary source of liquidity. In
addition to our available cash and operating cash flows, additional sources of liquidity include committed credit lines, short-
term debt from the commercial paper market, long-term borrowings, and access to the public debt and equity markets. We
continue to balance our cash and financing uses through investment in our existing core businesses, acquisition activity,
share repurchases and dividends.
Cash Flow Summary
Our cash flows from operating, investing and financing activities, as reflected in the Consolidated Statement of Cash
Flows, are summarized as follows:
2015 compared with 2014
Cash provided by operating activities increased by $430 million primarily due to a $489 million favorable impact from
working capital and a $382 million increase in net income before the non-cash pension mark-to-market adjustment, partially
offset by (i) a $175 million decrease in customer advances and deferred income, (ii) $151 million in OEM incentives and (iii)
increased cash tax payments of $50 million.
Cash used for investing activities increased by $4,638 million primarily due to an increase in cash paid for acquisitions
of $5,224 million, most significantly the Elster Division of Melrose Industries plc (Elster), and a decrease in proceeds of $159
million, primarily from the Friction Materials divestiture, partially offset by a net $659 million decrease in investments,
primarily short-term marketable securities.
Cash provided by financing activities increased by $2,374 million primarily due to an increase in the net proceeds from
debt issuances of $3,648 million, partially offset by an increase in net repurchases of common stock of $1,039 million and
an increase in cash dividends paid of $216 million.
2014 compared with 2013
Cash provided by operating activities increased by $689 million primarily due to (i) a $508 million increase of net income
before the non-cash pension mark-to-market adjustment, (ii) reduced net payments for repositioning and other charges of
$233 million primarily due to the collection of a $130 million asbestos receivable due from one of our insurance carriers and
lower asbestos related payments of $98 million, (iii) reduced cash contributions to our pension and other postretirement
plans of $131 million and (iv) lower cash tax payments of approximately $129 million, partially offset by a $93 million
unfavorable impact from working capital primarily driven by higher inventory to support sales growth.
Cash used for investing activities decreased by $83 million primarily due to a decrease in cash paid for acquisitions of
$1,129 million most significantly Intermec and RAE Systems, Inc. in 2013 and an increase in proceeds from the sales of
businesses of $157 million (most significantly Friction Materials), partially offset by (i) a net $688 million increase in
investments primarily short-term marketable securities, (ii) an increase of approximately $371 million in settlement payments
of foreign currency exchange contracts used as economic hedges on certain non-functional currency
23
Years Ended December 31,
2015
2014
2013
Cash provided by (used for):
Operating activities
$
5,454
$
5,024
$
4,335
Investing activities
(6,514
)
(1,876
)
(1,959
)
Financing activities
102
(2,272
)
(433
)
Effect of exchange rate changes on cash
(546
)
(339
)
(155
)
Net increase in cash and cash equivalents
$
(1,504
)
$
537
$
1,788