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 46%, including a 1.4% reduction in 2019.
We focus on consistently repurchasing shares when the intrinsic value of the company exceeds its market value. In 2019, we bought back $3.0 billion of TI stock.
Today, stock repurchases are an essential part of our disciplined approach to capital management through which the company both generates cash and returns it to our shareholders. Our intent is to return all of our free cash flow* to shareholders in the form of dividends and stock repurchases. We have a long-term dividend model that gives us a robust framework for adjusting the allocation of our shareholder returns between dividend growth and share repurchases.
*Free cash flow = cash flow from operations less capital expenditures
46% reduction in shares outstanding
|Year||Shares outstanding as
of the period ending (M)
|Repurchased shares (M)||Repurchased ($M)|
Note: repurchased shares are on a settlement date basis.