Cash Structure

Management is pleased with the excellent cash generation worldwide that will enable CL to maintain its strong balance sheet, fund a higher dividend, and launch a new share repurchase program.

The Company ended FY09 with $600 million in cash and cash equivalents, versus $555 at the end of FY08.   Total debt decreased to $3,182 million in FY09 from $3,783 million in FY08.  Accounts receivable, net was $1,626 million in FY09 versus $1,592 million in FY08.

Net cash provided by operations increased 42% y-o-y to $3,277 million in FY09.  The Company’s improvement in cash flow from operations was driven by higher earnings and better working capital management.  Working capital improved by 290 bps from 2.5% to sales in FY08 to (0.4)% to sales in FY09.  Working capital was a $210 million source of cash flow in the quarter, as compared with about an $82 million source of cash flow in 4Q08.  These results reflect the strength of the Company's overall balance sheet and key ratios as well as its tight focus on working capital. Both receivable and inventory trends improved y-o-y, as receivable days and inventory days outstanding declined during the quarter.

Free cash flow before dividends increased to $2,702 million in FY09 from $1,618 million in FY08.  Capital expenditures decreased to $575 million in FY09 from $684 million in FY08.

With stock approaching fair value and big upside to numbers is unlikely given required reinvestment.

Share Repurchase Program

On January 28, 2010, the Board of Directors authorized a new share repurchase program.  The Company plans to purchase 40 million common shares over the next two years.  The shares may be purchased in the open-market or privately negotiated transactions.  As of December 31, 2009, the Company had approximately 494 million shares of common stock outstanding.