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We are focused on cash generation, capital management, limiting discretionary spending and reducing our debt. We issued $1 billion in equity in 2002 to enhance our balance sheet, and we’ve sold non-strategic businesses and assets. To improve cash flow, we’ve cut costs, significantly reduced capital spending and focused on the productivity and efficiency of our operations.
In 2003, we expect cash flow from operations, including divestitures, to more than adequately fund capital expenditures of approximately $3 billion and the approximately $1 billion needed for the yearly dividend of $1.10 per share. As of year-end 2002, we had nearly $2.9 billion in unused bank credit available, in addition to more than $850 million cash on hand.
In spite of our lowered credit ratings, we have been able to access the capital markets on favorable terms. In 2002, we borrowed at an average interest rate of 6.1 percent, which compares favorably to an average rate of approximately 7 percent for our total debt portfolio.
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