Stock repurchases

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.

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 100 percent 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 target our dividend level by taking about 50 percent of the average of the previous four years' free cash flow. The remaining amount, once adjusted for debt and exercises, is targeted toward repurchases.

*Free cash flow = cash flow from operations minus capital expenditures

42% reduction in shares outstanding
(B shares)

Graph- outstanding shares

Year   Shares outstanding as
of the period ending (M)
Repurchased shares (M) Repurchased ($M)
2015 1,011 51 $2,741
2014 1,047 62 $2,831
2013 1,083 78 $2,868
2012 1,108 60 $1,800
2011 1,139 59 $1,973
2010 1,167 94 $2,454
2009 1,240 45 $954
2008 1,278 80 $2,122
2007 1,343 147 $4,886
2006 1,450 172 $5,302
2005 1,597 153 $4,151
2004 1,718 30 $753

Note: repurchased shares are on a settlement date basis.