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 41 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
41% 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.