Strong Financial Discipline

Our fundamental approach to capital allocation is to invest in profitable, durable growth opportunities and to return cash to shareholders

Our Priorities

  • Invest in organic growth opportunities, primarily through RD&E and capital investments
  • Utilize selective M&A to expand market access or strengthen product portfolio
  • Provide attractive shareholder returns
  • Preserve financial strength with strong balance sheet

Our Approach

  • Scale capital investments when we have an advantaged product, a manufacturing process with a leading cost position, and committed demand from customers
  • Reapply and repurpose our insights and assets to decrease our cost of innovation and increase profitability
  • Require new investments to be above a 20% ROIC threshold
  • Reward shareholders with dividends and opportunistic share repurchases
  • Establish debt maturity profile that can be easily supported by operating cash flow
  • Utilize yen-denominated debt to provide a natural hedge and lower borrowing costs

Our Results to Date

  • Improved corporate ROIC over time
  • Dividend yield is top quartile in the S&P 500 – increased dividend at an 11% CAGR from 2015 to 2023
  • Retired 48% of share count from 2015 to 2023
  • One of the longest debt tenors in the S&P 500
  • No meaningful near-term debt maturities