Meritor Acquisition and 2022 Financial Results
Table of Contents
Stock Repurchases
In December 2021, the Board authorized the acquisition of up to $2.0 billion of additional common stock upon completion of the $2.0 billion repurchase plan authorized in
2019. For the year ended December 31, 2022, we made the following purchases under our stock repurchase program:
In millions (except per share amounts)
For each quarter ended
Shares
Purchased
Average Cost
Per Share
Total Cost of
Repurchases
Remaining
Authorized
Capacity (1)
March 31
June 30
September 30
1.6
$
199.27 $
311
$
2,281
0.1
194.00
36
2,245
0.2
197.72
23
2,222
December 31
Total
0.0 (2)
1.9
206.12
4
2,218
198.74
$
374
(1) The remaining $218 million authorized capacity under the 2019 plan was calculated based on the cost to purchase the shares, but excludes commission expenses in
accordance with the authorized plan.
(2) Shares purchased in the fourth quarter totaled 21,830.
We intend to repurchase outstanding shares from time to time during 2023 to enhance shareholder value.
Capital Expenditures
Capital expenditures were $916 million, $734 million and $528 million in 2022, 2021 and 2020, respectively. We continue to invest in new product lines and targeted capacity
expansions. We plan to spend an estimated $1.2 billion to $1.3 billion in 2023 on capital expenditures with over 60 percent of these expenditures expected to be invested in
North America.
Current Maturities of Short and Long-Term Debt
We had $2.6 billion of commercial paper outstanding at December 31, 2022, that matures in less than one year. The maturity schedule of our existing long-term debt requires
significant cash outflows in 2023 when our 3.65 percent senior notes and 2025 when our term loan and 0.75 percent senior notes are due. Required annual long-term debt
principal payments range from $44 million (2024) to $2.1 billion (2025) over the next five years. See NOTE 13, "DEBT," to the Consolidated Financial Statements for
additional information.
Pensions
Our global pension plans, including our unfunded and non-qualified plans, were 120 percent funded at December 31, 2022. Our U.S. defined benefit plans (qualified and non-
qualified), which represented approximately 69 percent of the worldwide pension obligation, were 121 percent funded, and our U.K. defined benefit plans were 119 percent
funded at December 31, 2022. The funded status of our pension plans is dependent upon a variety of variables and assumptions including return on invested assets, market
interest rates and levels of voluntary contributions to the plans. In 2022, the investment loss on our U.S. pension trusts was 5.7 percent while our U.K. pension trusts' loss was
41.3 percent.
We sponsor funded and unfunded domestic and foreign defined benefit pension plans. Contributions to the U.S. and U.K. plans were as follows:
In millions
Defined benefit pension contributions
Defined contribution pension plans
Years ended December 31,
2022
2021
2020
$
53
$
110
78 $
92
92
85
We anticipate making total contributions of approximately $106 million to our global defined benefit pension plans in 2023. Expected contributions to our defined benefit
pension plans in 2023 will meet or exceed the current funding requirements.
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