Eme r s on 2013 Ann u al R e por t 27 In May 2013 the Board of Directors approved a new program for the repurchase of up to 70 million common shares subsequent to the completion of the May 2008 authorization for 80 million shares In 2013 a total of 203 million shares were repurchased under the 2013 and 2008 authorizations in 2012 and 2011 164 million shares and 187 million shares respectively were repurchased under the 2008 authorization 639 million shares remain available for repurchase under the 2013 authorization and none remain available under the the 2008 authorization Purchases of Emerson common stock totaled 1189 million 787 million and 958 million in 2013 2012 and 2011 respectively at an average per share price of 5851 4794 and 5131 respectively l eve R a G eCa PI tal I zat IO n dollars in millions 2011 2012 2013 Total Assets 23861 23818 24711 Longterm Debt 4324 3787 4055 Common Stockholders Equity 10399 10295 10585 Total DebttoCapital Ratio 333 340 348 Net DebttoNet Capital Ratio 232 221 183 Operating Cash FlowtoDebt Ratio 622 577 647 Interest Coverage Ratio 158X 139X 146X Total debt which includes longterm debt current maturities of longterm debt commercial paper and other shortterm borrowings was 56 billion 53 billion and 52 billion for 2013 2012 and 2011 respectively During the year the Company repaid 250 million of 4625 notes that matured in October 2012 and 250 million of 45 notes that matured in May 2013 In 2013 the Company issued 500 million of 2625 notes due February 2023 under an automatic shelf registration statement on fle with the US Securities and Exchange Commission SEC The net proceeds from the sale of the notes were used for general corporate purposes and to repay commercial paper borrowings The total debttocapital ratio increased primarily due to higher average borrowings in the current year The net debttonet capital ratio less cash and shortterm investments improved refecting an increase in equity and cash The operating cash fowtodebt ratio also improved in 2013 refecting an increase in operating cash fow The interest coverage ratio is computed as earnings before income taxes plus interest expense divided by interest expense The increase in interest coverage in 2013 compared to 2012 refects higher earnings and lower interest expense in the current year resulting from the replacement of matured longterm debt with lower average interest rate borrowings The decrease in interest coverage in 2012 compared to 2011 refects lower earnings See Notes 8 and 9 for additional information The Company maintains a 275 billion fouryear revolving backup credit facility which expires in December 2014 to support shortterm borrowings There were no borrowings against US lines of credit in the last three years The credit facility contains no fnancial covenants and is not subject to termination based on a change in credit ratings or material adverse changes The Company maintains a universal shelf registration statement on fle with the SEC under which it can issue debt securities preferred stock common stock warrants share purchase contracts or share purchase units without a predetermined limit Securities can be sold in one or more separate offerings with the size price and terms to be determined at the time of sale Emerson maintains a conservative fnancial structure which provides the strength and fexibility necessary to achieve its strategic objectives The Company has been successful in effciently deploying cash where needed worldwide to fund operations complete acquisitions and sustain longterm growth Substantially all of the Companys cash is held outside the US primarily in Europe and Asia and is available for repatriation to the US Under current tax law repatriated cash may be subject to US federal income taxes net of available foreign tax credits The Company routinely repatriates a portion of its nonUS cash from earnings each year or otherwise when it can be accomplished tax effciently and provides for US income taxes as appropriate The Company has been able to readily meet all its funding requirements and currently believes that suffcient funds will be available to meet the Companys needs in the foreseeable future through operating cash fow existing resources short and long term debt capacity or backup credit lines 132 09 13 12 11 10 134 138 160 164 57 C O n S e C u t I ve Y e a R S O F I n CR e a S ed d I v I d end S P e R S H a R e d I v I dend S P e R SH a R e