TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

(Millions of dollars, except share and per-share amounts)

For Three Months Ended
March 31,

2020

2019

Revenue

$

3,329

$

3,594

Cost of revenue (COR)

1,241

1,333

Gross profit

2,088

2,261

Research and development (R&D)

377

389

Selling, general and administrative (SG&A)

417

414

Acquisition charges

50

79

Operating profit

1,244

1,379

Other income (expense), net (OI&E)

25

36

Interest and debt expense

45

38

Income before income taxes

1,224

1,377

Provision for income taxes

50

160

Net income

$

1,174

$

1,217

Diluted earnings per common share

$

1.24

$

1.26

Average shares outstanding (millions):

Basic

931

939

Diluted

943

956

Cash dividends declared per common share

$

.90

$

.77

Supplemental Information

(Quarterly, except as noted)

Provision for income taxes is based on the following:

Operating taxes (calculated using the estimated annual effective tax rate)

$

166

$

220

Discrete tax items

(116)

(60)

Provision for income taxes (effective taxes)

$

50

$

160

Annual operating tax rate

14%

16%

Effective tax rate

4%

12%

A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following:

Net income

$

1,174

$

1,217

Income allocated to RSUs

(6)

(8)

Income allocated to common stock for diluted EPS

$

1,168

$

1,209

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheets

(Millions of dollars, except share amounts)

March 31,

2020

2019

Assets

Current assets:

Cash and cash equivalents

$

2,518

$

3,720

Short-term investments

2,224

366

Accounts receivable, net of allowances of ($8) and ($17)

1,316

1,440

Raw materials

175

191

Work in process

915

1,016

Finished goods

913

924

Inventories

2,003

2,131

Prepaid expenses and other current assets

249

294

Total current assets

8,310

7,951

Property, plant and equipment at cost

5,736

5,642

Accumulated depreciation

(2,503)

(2,324)

Property, plant and equipment

3,233

3,318

Long-term investments

34

281

Goodwill

4,362

4,362

Acquisition-related intangibles

290

549

Deferred tax assets

208

290

Capitalized software licenses

138

98

Overfunded retirement plans

215

96

Other long-term assets

493

498

Total assets

$

17,283

$

17,443

Liabilities and stockholders’ equity

Current liabilities:

Current portion of long-term debt

$

1,051

$

750

Accounts payable

363

477

Accrued compensation

353

342

Income taxes payable

62

113

Accrued expenses and other liabilities

552

477

Total current liabilities

2,381

2,159

Long-term debt

5,499

5,057

Underfunded retirement plans

95

120

Deferred tax liabilities

64

43

Other long-term liabilities

1,510

1,545

Total liabilities

9,549

8,924

Stockholders’ equity:

Preferred stock, $25 par value. Authorized – 10,000,000 shares

Participating cumulative preferred – None issued

—

—

Common stock, $1 par value. Authorized – 2,400,000,000 shares

Shares issued – 1,740,815,939

1,741

1,741

Paid-in capital

2,096

1,927

Retained earnings

40,227

38,396

Treasury common stock at cost

Shares: March 31, 2020 – 819,335,097; March 31, 2019 – 802,016,668

(36,002)

(33,080)

Accumulated other comprehensive income (loss), net of taxes (AOCI)

(328)

(465)

Total stockholders’ equity

7,734

8,519

Total liabilities and stockholders’ equity

$

17,283

$

17,443

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

March 31,

2020

2019

Cash flows from operating activities

Net income

$

1,174

$

1,217

Adjustments to net income:

Depreciation

186

166

Amortization of acquisition-related intangibles

50

79

Amortization of capitalized software

14

13

Stock compensation

63

61

Gains on sales of assets

—

(2)

Deferred taxes

(34)

4

Increase (decrease) from changes in:

Accounts receivable

(242)

(233)

Inventories

(2)

86

Prepaid expenses and other current assets

(88)

223

Accounts payable and accrued expenses

—

(67)

Accrued compensation

(353)

(373)

Income taxes payable

147

(94)

Changes in funded status of retirement plans

27

7

Other

(91)

20

Cash flows from operating activities

851

1,107

Cash flows from investing activities

Capital expenditures

(161)

(251)

Proceeds from asset sales

—

2

Purchases of short-term investments

(646)

(149)

Proceeds from short-term investments

1,638

1,584

Other

(5)

(13)

Cash flows from investing activities

826

1,173

Cash flows from financing activities

Proceeds from issuance of long-term debt

749

743

Dividends paid

(841)

(724)

Stock repurchases

(1,641)

(1,152)

Proceeds from common stock transactions

146

151

Other

(9)

(16)

Cash flows from financing activities

(1,596)

(998)

Net change in cash and cash equivalents

81

1,282

Cash and cash equivalents at beginning of period

2,437

2,438

Cash and cash equivalents at end of period

$

2,518

$

3,720

Q1 2020

Q1 2019

变化

模拟：

             营业收入

$

2,460

$

2,518

(2)%

             营业利润

$

1,025

$

1,088

(6)%

嵌入式处理：

            营业收入

$

653

$

796

(18)%

            营业利润

$

182

$

249

(27)%

其它：

            营业收入

$

216

$

280

(23)%

            营业利润*

$

37

$

42

(12)%

For Years Ended

 March 31,

2020

2019

Change

Cash flow from operations (GAAP)

$

6,393

$

7,184

(11)%

Capital expenditures

(757)

(1,193)

Free cash flow (non-GAAP)

$

5,636

$

5.991

(6)%

Revenue

$

14,118

$

15,589

Cash flow from operations as a percent of revenue (GAAP)

45.3%

46.1%

Free cash flow as a percent of revenue (non-GAAP)

39.9%

38.4%