A portion of the Financing Activities section of PepsiCo's statement of cash flows for the year ended December 27, 2014, follows (in millions):

                                                                                      2014

Financing Activities

Proceeds from issuances of long-term debt ........$ 3,855

Payments of long-term debt .................................. (2,189)

Short-term borrowings, by original maturity

More than three months-proceeds ............................. 50

More than three months-payments .......................... (10)

Three months or less, net ...................................... (2,037)

Cash dividends paid ................................................ (3,730)

Share repurchases-common ................................. (5,012)

Share repurchases-preferred ..................................... (10)

Required

1. Explain why proceeds from debt is shown as a positive amount and payment of debt is shown as a negative amount.

2. During 2014, interest rates remained at low levels. Explain why the company might have paid off debt during such conditions.

3. What are possible reasons why the company repurchased some of its stock?