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. 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
(B shares)

Graph- outstanding shares

Year   Shares outstanding as
of the period ending (M)
Repurchased shares (M) Repurchased ($M)
2016 996 35 $2,132
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.