1. Repayment of debt resulting in lower interest cost and higher earnings. This would also reduce debt ratios and improves interest coverage, possibly leading to higher debt ratings.
2. Repurchase of equity. This may raise earnings per share and (if repurchased below stated book value per share) would increase this book value.
3. Increased ability to make acquisitions (such as Kraft), which can provide future growth, better diversification, and lower risk.
4. Increased funding of internal growth through capital spending, research and development, new product introduction costs, and so forth.
5. Increase in dividends, providing larger payout of earnings to equity investors.
6. Increased liquidity (financial flexibility), allowing the firm to respond to unexpected needs and opportunities.