In the latter part of 2004, TI initiated a stock repurchase program to significantly reduce the number of shares that were outstanding. Since this program was implemented, we've reduced our share count by 42 percent. In fact, as of the end of 2016, we had reduced shares every quarter year-on-year for 51 consecutive quarters, and our share count had dropped to less than 1 billion shares.
Today, stock repurchases are an essential part of our capital management strategy through which the company both generates cash and returns it to our shareholders. Our intent is to return all of our free cash flow* plus proceeds from exercises of equity compensation minus net debt retirement to shareholders in the form of dividends and stock repurchases. We have a long-term dividend model that gives us a robust framework for adjusting the allocation of our shareholder returns between dividend growth and share repurchases.
*Free cash flow = cash flow from operations less capital expenditures
42% reduction in shares outstanding
|Year||Shares outstanding as
of the period ending (M)
|Repurchased shares (M)||Repurchased ($M)|
Note: repurchased shares are on a settlement date basis.