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Shareholders' Equity
 9 Months Ended
Jun. 27, 2015
Shareholders' Equity

Note 7 – Shareholders’ Equity

Dividends

The Company declared and paid cash dividends per share during the periods presented as follows:

 

     Dividends
Per Share		      Amount
(in millions)		  

2015:

      

Third quarter

    $ 0.52       $ 2,997   

Second quarter

      0.47         2,734   

First quarter

      0.47         2,750   
  

 

 

     

 

 

  

Total cash dividends declared and paid

    $ 1.46       $ 8,481   
  

 

 

     

 

 

  
               

2014:

      

Fourth quarter

    $ 0.47       $ 2,807   

Third quarter

      0.47         2,830   

Second quarter

      0.44         2,655   

First quarter

      0.44         2,739   
  

 

 

     

 

 

  

Total cash dividends declared and paid

    $ 1.82       $ 11,031   
  

 

 

     

 

 

  

Future dividends are subject to declaration by the Board of Directors.

 

Share Repurchase Program

In the third quarter of 2015, the Company’s Board of Directors increased the share repurchase authorization to $140 billion of the Company’s common stock, of which $90.0 billion had been utilized as of June 27, 2015. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

The Company has entered, and in the future may enter, into accelerated share repurchase arrangements (“ASRs”) with financial institutions. In exchange for up-front payments, the financial institutions deliver shares of the Company’s common stock during the purchase periods of each ASR. The total number of shares ultimately delivered, and therefore the average repurchase price paid per share, is determined at the end of the applicable purchase period of each ASR based on the volume weighted-average price of the Company’s common stock during that period. The shares received are retired in the periods they are delivered, and the up-front payments are accounted for as a reduction to shareholders’ equity in the Company’s Condensed Consolidated Balance Sheets in the periods the payments are made. The Company reflects the ASRs as a repurchase of common stock in the period delivered for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. The ASRs met all of the applicable criteria for equity classification, and therefore were not accounted for as derivative instruments.

The following table shows the Company’s ASR activity and related information during the nine months ended June 27, 2015 and the year ended September 27, 2014:

 

     Purchase Period
End Date		    Number of
Shares
(in thousands)		    Average
Repurchase
Price
Per Share		    ASR
Amount
(in millions)

May 2015 ASR

      November 2015         38,320 (1)              (1)       $ 6,000   

August 2014 ASR

      February 2015         81,525 (2)       $ 110.40       $ 9,000   

January 2014 ASR

      December 2014         134,247           $ 89.39       $ 12,000   

April 2013 ASR

      March 2014         172,548           $ 69.55       $ 12,000   

 

  (1) 

The number of shares represents shares delivered in the third quarter of 2015 and does not represent the final number of shares to be delivered under the May 2015 ASR. The total number of shares ultimately delivered under the May 2015 ASR, and therefore the average repurchase price paid per share, will be determined at the end of the applicable purchase period based on the volume weighted-average price of the Company’s common stock during that period. The May 2015 ASR purchase period will end in or before November 2015.

  

 

  (2) 

Includes 59.9 million shares delivered and retired at the beginning of the purchase period, which began in the fourth quarter of 2014, 8.3 million net shares delivered and retired in the first quarter of 2015 and 13.3 million shares delivered and retired at the end of the purchase period, which concluded in the second quarter of 2015.

  

Additionally, the Company repurchased shares of its common stock in the open market, which were retired upon repurchase, during the periods presented as follows:

 

     Number of
Shares
(in thousands)		      Average
Repurchase
Price
Per Share		      Amount
(in millions)		  

2015:

         

Third quarter

      31,231       $ 128.08       $ 4,000   

Second quarter

      56,400       $ 124.11         7,000   

First quarter

      45,704       $ 109.40         5,000   
  

 

 

        

 

 

  

Total open market common stock repurchases

      133,335          $ 16,000   
  

 

 

        

 

 

  

    

         

2014:

         

Fourth quarter

      81,255       $ 98.46       $ 8,000   

Third quarter

      58,661       $ 85.23         5,000   

Second quarter

      79,749       $ 75.24         6,000   

First quarter

      66,847       $ 74.79         5,000   
  

 

 

        

 

 

  

Total open market common stock repurchases

      286,512          $ 24,000