"Common stock" represents the total number of shares outstanding to everyone in the world. When Intel buys back shares, this number neither decreases nor increases. Shares can be voted on to be dissolved, but it doesn't look like Intel did that this year so far. In fact, as you noticed, they issued 12M more shares.
Well, sort of. Common stock outstanding is reduced by the number of shares purchased by the company. The stock so purchased becomes "treasury" stock. It is authorized but is no longer "issued".
When stock bonuses, or options to buy stock or stock used for acquisitions is needed, it comes from the treasury stock. There must be enough authorized but unissued treasury stock to do this.
If Intel bought back 94MM and there are now 12MM more, then in broad brush, Intel issued 106MM new shares. It is to be noted that under the new dilution rules, even if a stock option is issued, but the stock still has not, the company has to report the amount of stock as if it were already issued. Ie, it must treat the stock as outstanding (fully diluted) even if has not been issued and is still technically treasury stock.
There are significant tax reasons for using stock in this manner.
This may be perhaps more than you wished to know. :)) |
