8-K

NXP Semiconductors N.V. 8-K Report (Aug 17, 2011)

Filed August 17, 2011For Securities:NXPI

Summary

NXP Semiconductors N.V. (NXPI) filed a Form 6-K on August 17, 2011, to announce an update to its existing stock repurchase program. The company's Board of Directors resolved to increase the number of shares authorized for repurchase from 5,000,000 to 8,000,000. These repurchased shares are intended to partially cover employee stock options and equity rights under NXP's long-term incentive plans. The repurchases will be conducted opportunistically in the open market or through private transactions, subject to market conditions and the company's best interests. While the exact number of shares to be repurchased is not guaranteed, this increase signals continued confidence from management and a commitment to returning value to shareholders by managing its equity structure.

Key Highlights

  • 1NXP announced an increase in its stock repurchase program from 5,000,000 to 8,000,000 shares.
  • 2The purpose of the repurchases is to cover employee stock options and equity rights under long-term incentive plans.
  • 3Repurchases will be executed via open market or privately negotiated transactions.
  • 4The timing and final number of repurchases are subject to market conditions and management's evaluation.
  • 5The company retains the right to terminate the repurchase program at any time.
  • 6Repurchased shares will be returned to the status of authorized but unissued shares.
  • 7The filing was made on August 17, 2011, via a Form 6-K.

Frequently Asked Questions

The primary reason for increasing the stock repurchase program is to provide shares for NXP's employee stock options and equity rights under its long-term incentive plans. This helps the company manage its equity compensation effectively.

NXP may repurchase shares in both privately negotiated transactions and open market transactions. The company will make these decisions based on market conditions, the terms of any private transactions, and what is deemed to be in the best interests of NXP shareholders, in compliance with applicable legal requirements.

No, there is no guarantee as to the exact number of shares that will be repurchased. NXP may choose to repurchase fewer shares depending on various factors, and the company also reserves the right to terminate the repurchase program at any time.

Repurchased shares will be returned to the status of authorized but un-issued shares of common stock of NXP. They will essentially be held in reserve by the company.