In an interview with Louis V. Gertsner, who had just retired as chairman of IBM, BusinessWeek in its issue of December 9, 2002, raised questions about the use of financial engineering to increase the price of IBM stock. Particularly, they questioned him about IBMs use of $43 billion for share repurchases during his 9 years at the head of IBM. Mr. Gertsner responded that IBM had an unchanging plan for the use of its free cash flows after taxes. First, they made capital and working capital investments for future growth. Second, they funded research. Third, they increased employee compensation. Fourth, they paid down company debt. Fifth, what remained was returned to shareholders through share buybacks, not dividends, because of tax advantages to shareholders. We always bought, right through thick and thin. If your were talking about financial engineering, then you would buy at certain times and not buy at other times. Comment on the share buyback policy at IBM.