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TI has had a stock repurchase program, authorized by its board of directors, for many years. The repurchases were initially intended to neutralize the potential dilutive effect of shares expected to be issued upon the exercise of stock options under the company's long-term incentive plans and employee stock purchase plan.

In 2004, TI implemented a much more aggressive stock repurchase program designed to reduce the number of shares outstanding. In late 2004, as TI began to shift its product portfolio to higher-profit analog and embedded processing products, both of which require less capital spending, the company began to generate more cash flow from operations. In addition, successful implementation of the company's hybrid manufacturing strategy allowed TI to reduce the amount of cash carried on the balance sheet.

Over the last several years, we've used repurchases to significantly reduce the number of shares that are outstanding. Cumulatively, the board of directors has authorized $27.5 billion in stock repurchases since the beginning of September 2004, and we've reduced our share count by 34 percent since the end of 2004. However, given that our cash balances are at a desirable level and that we plan to pay down the debt we acquired to purchase National Semiconductor as it matures, it is likely our repurchases, while continuing as a means of returning value to our shareholders, will be at lower levels than they have been in the past.

TI Stock Repurchases