“But as long as we think the buybacks are creative to long-term owners, we're going to have some buybacks.”

In context

“a little bit over capitalized and you'd start to buy back more stock? I'm just kind of -- obviously you're not buying back much, but I'm just kind of wondering if you could talk us through what triggers you might be looking for to start that back again. Thanks. Rafael Lizardi: Yeah, stepping back and just to remind everybody how we think about our returns, our objective is to return all free cash flow to the owners of the Company over the long term. And we do that through dividends and buyback. You look at our 18-year history on that and is really consistent. In fact, we've, many years -- most years, we've averaged well over 100% of return. During that time, we have, I would remind you we have increased the proportion of the return that comes into dividends. So that also plays into that. But as long as we think the buybacks are creative to long-term owners, we're going to have some buybacks. And as you have seen, as you pointed out, the last 3 quarters we have. In fact, I don't think there's been a single quarter in the last 18 years or so that we have not purchased the return cash through the owners through buybacks in one form or another. Dave Pahl: Okay. Thank you, Tim. And we'll go to the next caller, please. Operator: We'll go next to Harlan Sur of JPMorgan. Harlan Sur: Good afternoon and thanks for taking my question. On finished goods inventory, most of which I assume is sitting at customer consignment hubs, this has come down faster than overall inventories. Finished goods dropped 8% sequentially in Q3, dropped 9% in Q2. They're down 25% from the beginning of this year, and down 33% pre-COVID-19, I assume due to the strong demand profile from your direct customers.”