DALLAS, Jan. 24, 2017 /PRNewswire/ -- Texas Instruments
Incorporated (TI) (NASDAQ: TXN) today reported fourth-quarter revenue of $3.41 billion, net income
of $1.05 billion and earnings per share of $1.02. Earnings per share
include a 14-cent benefit for items that were not in the company's original guidance for the
quarter.
Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman,
president and CEO, made the following comments:
- "Revenue increased 7 percent from the same quarter a year ago, as demand for our products remained strong in the automotive
market. The improvement we saw in the third quarter for the industrial market continued. Demand in the personal electronics
market was down slightly from a year ago.
- "In our core businesses, Analog revenue grew 10 percent and Embedded Processing grew 6 percent from the same quarter a year
ago. Operating margin increased in both businesses.
- "Gross margin of 62.5 percent in the fourth quarter reflected the quality of our product portfolio, as well as the
efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
- "Our cash flow from operations of $4.6 billion for the year again underscored the strength of
our business model. Free cash flow for the year was up 6 percent from a year ago to $4.1 billion,
and represents 30.5 percent of revenue, up from 29.6 percent a year ago.
- "We have returned $3.8 billion to owners in 2016 through stock repurchases and dividends,
consistent with our strategy to return all of our free cash flow plus proceeds from exercises of equity compensation minus net
debt retirement. Over the last 12 months, our dividends represented 40 percent of free cash flow, underscoring their
sustainability.
- "Our balance sheet remains strong with $3.5 billion of cash and short-term investments at the
end of the quarter, about 80 percent of which was owned by the company's U.S. entities. Inventory ended the quarter at 126
days.
- "TI's first-quarter outlook is for revenue in the range of $3.17 billion to $3.43 billion and
earnings per share between 78 and 88 cents, which includes a 4-cent
estimated tax benefit related to the new accounting standard for stock compensation. For 2017, TI's annual effective tax rate
is expected to be about 30 percent."
As noted in the first paragraph above, earnings per share for fourth-quarter 2016 include a 14-cent benefit for items not in the company's prior outlook: a 14-cent benefit
for several intellectual property agreements, a 1-cent tax benefit related to the adoption of an
accounting standard for stock compensation and a 1-cent restructuring charge.
Also today, TI said Brian Crutcher has been promoted to chief operating officer. Crutcher, 44,
is a 21-year veteran of the company and has been executive vice president responsible for all business and sales operations, as
well as for Kilby Labs and information technology. As COO, he adds oversight of TI's global
technology and manufacturing operations to his current duties.
Free cash flow is a non-GAAP financial measure. Free cash flow is cash flow from operations less capital
expenditures.
Earnings summary
Amounts are in millions of dollars, except per-share amounts.
|
|
|
4Q16
|
|
|
4Q15
|
|
Change
|
|
Revenue
|
|
$
|
3,414
|
|
$
|
3,189
|
|
7%
|
|
Operating profit
|
|
$
|
1,319
|
|
$
|
1,142
|
|
15%
|
|
Net income
|
|
$
|
1,047
|
|
$
|
836
|
|
25%
|
|
Earnings per share
|
|
$
|
1.02
|
|
$
|
0.80
|
|
28%
|
Cash generation
Amounts are in millions of dollars.
|
|
|
|
|
Trailing 12 Months
|
|
|
|
4Q16
|
|
|
4Q16
|
|
|
4Q15
|
|
Change
|
|
Cash flow from operations
|
|
$
|
1,387
|
|
$
|
4,614
|
|
$
|
4,397
|
|
5%
|
|
Capital expenditures
|
|
$
|
110
|
|
$
|
531
|
|
$
|
551
|
|
-4%
|
|
Free cash flow
|
|
$
|
1,277
|
|
$
|
4,083
|
|
$
|
3,846
|
|
6%
|
|
Free cash flow % of revenue
|
|
|
|
|
|
30.5%
|
|
|
29.6%
|
|
|
Capital expenditures for the past 12 months were 4 percent of revenue, consistent with TI's long-term expectations.
Cash return
Amounts are in millions of dollars.
|
|
|
|
|
Trailing 12 Months
|
|
|
|
4Q16
|
|
|
4Q16
|
|
|
4Q15
|
|
Change
|
|
Dividends paid
|
|
$
|
499
|
|
$
|
1,646
|
|
$
|
1,444
|
|
14%
|
|
Stock repurchases
|
|
$
|
475
|
|
$
|
2,132
|
|
$
|
2,741
|
|
-22%
|
|
Total cash returned
|
|
$
|
974
|
|
$
|
3,778
|
|
$
|
4,185
|
|
-10%
|
|
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
|
|
Consolidated Statements of Income
|
|
(Millions of dollars, except share and per-share amounts)
|
|
|
|
For Three Months Ended
|
|
For Years Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Revenue
|
|
$
|
3,414
|
|
$
|
3,189
|
|
$
|
13,370
|
|
$
|
13,000
|
|
Cost of revenue (COR)
|
|
|
1,281
|
|
|
1,323
|
|
|
5,130
|
|
|
5,440
|
|
Gross profit
|
|
|
2,133
|
|
|
1,866
|
|
|
8,240
|
|
|
7,560
|
|
Research and development (R&D)
|
|
|
343
|
|
|
306
|
|
|
1,370
|
|
|
1,280
|
|
Selling, general and administrative (SG&A)
|
|
|
411
|
|
|
405
|
|
|
1,767
|
|
|
1,748
|
|
Acquisition charges
|
|
|
80
|
|
|
81
|
|
|
319
|
|
|
329
|
|
Restructuring charges/other
|
|
|
(20)
|
|
|
(68)
|
|
|
(15)
|
|
|
(71)
|
|
Operating profit
|
|
|
1,319
|
|
|
1,142
|
|
|
4,799
|
|
|
4,274
|
|
Other income (expense), net (OI&E)
|
|
|
197
|
|
|
19
|
|
|
211
|
|
|
32
|
|
Interest and debt expense
|
|
|
19
|
|
|
22
|
|
|
80
|
|
|
90
|
|
Income before income taxes
|
|
|
1,497
|
|
|
1,139
|
|
|
4,930
|
|
|
4,216
|
|
Provision for income taxes
|
|
|
450
|
|
|
303
|
|
|
1,335
|
|
|
1,230
|
|
Net income
|
|
$
|
1,047
|
|
$
|
836
|
|
$
|
3,595
|
|
$
|
2,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
1.02
|
|
$
|
.80
|
|
$
|
3.48
|
|
$
|
2.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding (millions)
|
|
|
1,018
|
|
|
1,027
|
|
|
1,021
|
|
|
1,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
.50
|
|
$
|
.38
|
|
$
|
1.64
|
|
$
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a result of accounting rule ASC 260, which requires a portion of Net
income to be allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents, diluted EPS is
calculated using the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,047
|
|
$
|
836
|
|
$
|
3,595
|
|
$
|
2,986
|
|
Income allocated to RSUs
|
|
|
(13)
|
|
|
(12)
|
|
|
(44)
|
|
|
(42)
|
|
Income allocated to common stock for diluted EPS
|
|
$
|
1,034
|
|
$
|
824
|
|
$
|
3,551
|
|
$
|
2,944
|
|
|
With the fourth-quarter 2016 adoption of ASU 2016-09 related to stock
compensation, we were required to apply the new standard as of the beginning of 2016. As a result, the sum of the
previously reported quarters and the fourth quarter of 2016 does not equal the full year 2016 amounts above. Recast
amounts can be found in the Supplementary financial information section of this release.
|
|
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
|
|
Consolidated Balance Sheets
|
|
(Millions of dollars, except share amounts)
|
|
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,154
|
|
$
|
1,000
|
|
Short-term investments
|
|
|
2,336
|
|
|
2,218
|
|
Accounts receivable, net of allowances of ($17) and ($7)
|
|
|
1,267
|
|
|
1,165
|
|
Raw materials
|
|
|
102
|
|
|
109
|
|
Work in process
|
|
|
954
|
|
|
846
|
|
Finished goods
|
|
|
734
|
|
|
736
|
|
Inventories
|
|
|
1,790
|
|
|
1,691
|
|
Prepaid expenses and other current assets
|
|
|
910
|
|
|
1,000
|
|
Total current assets
|
|
|
7,457
|
|
|
7,074
|
|
Property, plant and equipment at cost
|
|
|
4,923
|
|
|
5,465
|
|
Accumulated depreciation
|
|
|
(2,411)
|
|
|
(2,869)
|
|
Property, plant and equipment, net
|
|
|
2,512
|
|
|
2,596
|
|
Long-term investments
|
|
|
235
|
|
|
221
|
|
Goodwill, net
|
|
|
4,362
|
|
|
4,362
|
|
Acquisition-related intangibles, net
|
|
|
1,264
|
|
|
1,583
|
|
Deferred income taxes
|
|
|
374
|
|
|
201
|
|
Capitalized software licenses, net
|
|
|
52
|
|
|
46
|
|
Overfunded retirement plans
|
|
|
96
|
|
|
85
|
|
Other assets
|
|
|
79
|
|
|
62
|
|
Total assets
|
|
$
|
16,431
|
|
$
|
16,230
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
631
|
|
$
|
1,000
|
|
Accounts payable
|
|
|
396
|
|
|
386
|
|
Accrued compensation
|
|
|
710
|
|
|
664
|
|
Income taxes payable
|
|
|
83
|
|
|
95
|
|
Accrued expenses and other liabilities
|
|
|
444
|
|
|
410
|
|
Total current liabilities
|
|
|
2,264
|
|
|
2,555
|
|
Long-term debt
|
|
|
2,978
|
|
|
3,120
|
|
Underfunded retirement plans
|
|
|
129
|
|
|
196
|
|
Deferred income taxes
|
|
|
33
|
|
|
37
|
|
Deferred credits and other liabilities
|
|
|
554
|
|
|
376
|
|
Total liabilities
|
|
|
5,958
|
|
|
6,284
|
|
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
|
|
|
1,674
|
|
|
1,629
|
|
Retained earnings
|
|
|
33,107
|
|
|
31,176
|
|
Treasury common stock at cost
|
|
|
|
|
|
|
|
Shares: 2016 – 744,831,978; 2015 – 729,547,527
|
|
|
(25,523)
|
|
|
(24,068)
|
|
Accumulated other comprehensive income (loss), net of taxes
(AOCI)
|
|
|
(526)
|
|
|
(532)
|
|
Total stockholders' equity
|
|
|
10,473
|
|
|
9,946
|
|
Total liabilities and stockholders' equity
|
|
$
|
16,431
|
|
$
|
16,230
|
|
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
|
|
Consolidated Statements of Cash Flows
|
|
(Millions of dollars)
|
|
|
|
For Three Months Ended
|
|
For Years Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,047
|
|
$
|
836
|
|
$
|
3,595
|
|
$
|
2,986
|
|
Adjustments to Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
139
|
|
|
172
|
|
|
605
|
|
|
766
|
|
Amortization of acquisition-related intangibles
|
|
|
80
|
|
|
79
|
|
|
319
|
|
|
319
|
|
Amortization of capitalized software
|
|
|
8
|
|
|
10
|
|
|
31
|
|
|
48
|
|
Stock-based compensation
|
|
|
48
|
|
|
58
|
|
|
252
|
|
|
286
|
|
Gains on sales of assets
|
|
|
(40)
|
|
|
(82)
|
|
|
(40)
|
|
|
(85)
|
|
Deferred income taxes
|
|
|
(42)
|
|
|
51
|
|
|
(202)
|
|
|
(55)
|
|
Increase (decrease) from changes in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
166
|
|
|
318
|
|
|
(108)
|
|
|
77
|
|
Inventories
|
|
|
18
|
|
|
80
|
|
|
(99)
|
|
|
93
|
|
Prepaid expenses and other current assets
|
|
|
(211)
|
|
|
5
|
|
|
(81)
|
|
|
94
|
|
Accounts payable and accrued expenses
|
|
|
59
|
|
|
3
|
|
|
72
|
|
|
(142)
|
|
Accrued compensation
|
|
|
62
|
|
|
44
|
|
|
36
|
|
|
7
|
|
Income taxes payable
|
|
|
180
|
|
|
(10)
|
|
|
333
|
|
|
11
|
|
Changes in funded status of retirement plans
|
|
|
(129)
|
|
|
(88)
|
|
|
(73)
|
|
|
(23)
|
|
Other
|
|
|
2
|
|
|
(30)
|
|
|
(26)
|
|
|
15
|
|
Cash flows from operating activities
|
|
|
1,387
|
|
|
1,446
|
|
|
4,614
|
|
|
4,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(110)
|
|
|
(164)
|
|
|
(531)
|
|
|
(551)
|
|
Proceeds from asset sales
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
110
|
|
Purchases of short-term investments
|
|
|
(1,332)
|
|
|
(1,054)
|
|
|
(3,503)
|
|
|
(2,767)
|
|
Proceeds from short-term investments
|
|
|
765
|
|
|
437
|
|
|
3,390
|
|
|
2,892
|
|
Other
|
|
|
(8)
|
|
|
6
|
|
|
(6)
|
|
|
14
|
|
Cash flows from investing activities
|
|
|
(685)
|
|
|
(675)
|
|
|
(650)
|
|
|
(302)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of debt
|
|
|
—
|
|
|
—
|
|
|
499
|
|
|
498
|
|
Repayment of debt
|
|
|
—
|
|
|
—
|
|
|
(1,000)
|
|
|
(1,000)
|
|
Dividends paid
|
|
|
(499)
|
|
|
(386)
|
|
|
(1,646)
|
|
|
(1,444)
|
|
Stock repurchases
|
|
|
(475)
|
|
|
(627)
|
|
|
(2,132)
|
|
|
(2,741)
|
|
Proceeds from common stock transactions
|
|
|
57
|
|
|
109
|
|
|
472
|
|
|
396
|
|
Other
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Cash flows from financing activities
|
|
|
(917)
|
|
|
(904)
|
|
|
(3,810)
|
|
|
(4,294)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in Cash and cash equivalents
|
|
|
(215)
|
|
|
(133)
|
|
|
154
|
|
|
(199)
|
|
Cash and cash equivalents at beginning of period
|
|
|
1,369
|
|
|
1,133
|
|
|
1,000
|
|
|
1,199
|
|
Cash and cash equivalents at end of period
|
|
$
|
1,154
|
|
$
|
1,000
|
|
$
|
1,154
|
|
$
|
1,000
|
|
|
Certain amounts in the prior periods have been recast to conform to the
current presentation. See Supplemental financial information section of this release.
|
Quarterly segment results
Amounts are in millions of dollars.
|
|
|
4Q16
|
|
|
4Q15
|
|
Change
|
|
Analog:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
2,290
|
|
$
|
2,073
|
|
10%
|
|
Operating profit
|
|
$
|
981
|
|
$
|
787
|
|
25%
|
|
Embedded Processing:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
744
|
|
$
|
700
|
|
6%
|
|
Operating profit
|
|
$
|
210
|
|
$
|
164
|
|
28%
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
380
|
|
$
|
416
|
|
-9%
|
|
Operating profit*
|
|
$
|
128
|
|
$
|
191
|
|
-33%
|
|
|
* Includes Acquisition charges and Restructuring
charges/other.
|
Compared with the year-ago quarter:
Analog: (includes High Volume Analog & Logic, Power Management, High Performance Analog and Silicon Valley
Analog)
- Revenue increased due to Power Management, High Performance Analog and Silicon Valley Analog. High Volume Analog &
Logic was about even.
- Operating profit increased primarily due to higher revenue and associated gross profit.
Embedded Processing: (includes Processors, Microcontrollers and Connectivity)
- Revenue increased due to Processors and Microcontrollers. Connectivity also grew.
- Operating profit increased due to higher gross profit.
Other: (includes DLP® products, calculators, custom ASIC products and
royalties)
- Revenue declined due to royalties and custom ASIC products. DLP products and calculators were about even.
- Operating profit decreased due to gains on sales of assets in the year-ago quarter.
Annual segment results
Amounts are in millions of dollars.
|
|
|
2016
|
|
|
2015
|
|
Change
|
|
Analog:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
8,536
|
|
$
|
8,339
|
|
2%
|
|
Operating profit
|
|
$
|
3,380
|
|
$
|
3,048
|
|
11%
|
|
Embedded Processing:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
3,023
|
|
$
|
2,787
|
|
8%
|
|
Operating profit
|
|
$
|
801
|
|
$
|
596
|
|
34%
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,811
|
|
$
|
1,874
|
|
-3%
|
|
Operating profit*
|
|
$
|
618
|
|
$
|
630
|
|
-2%
|
|
|
* Includes Acquisition charges and Restructuring
charges/other.
|
Compared with the prior year:
Analog:
- Revenue increased due to Silicon Valley Analog and High Performance Analog. Power Management also grew, while High Volume
Analog & Logic declined.
- Operating profit increased due to higher gross profit, which benefited from lower manufacturing costs.
Embedded Processing:
- Revenue increased due to growth in all three product lines, led by Processors.
- Operating profit increased primarily due to higher revenue and associated gross profit.
Other:
- Revenue declined due to royalties, custom ASIC products and calculators. This was partially offset by growth in DLP
products.
- Operating profit decreased $12 million.
Non-GAAP financial information
This release includes references to free cash flow and ratios based on that measure. These are financial measures that were
not prepared in accordance with GAAP. Free cash flow was calculated by subtracting Capital expenditures from the most directly
comparable GAAP measure, Cash flows from operating activities (also referred to as cash flow from operations).
The company believes that free cash flow and the associated ratios provide insight into its liquidity, its cash-generating
capability and the amount of cash potentially available to return to shareholders, as well as insight into its financial
performance. These non-GAAP measures are supplemental to the comparable GAAP measures.
Reconciliation to the most directly comparable GAAP measures is provided in the table below.
Amounts are in millions of dollars.
|
|
For Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
Cash flow from operations (GAAP)
|
|
$
|
4,614
|
|
$
|
4,397
|
|
5%
|
|
Capital expenditures
|
|
|
(531)
|
|
|
(551)
|
|
|
|
Free cash flow (non-GAAP)
|
|
$
|
4,083
|
|
$
|
3,846
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
13,370
|
|
$
|
13,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations as a percent of revenue (GAAP)
|
|
|
34.5%
|
|
|
33.8%
|
|
|
|
Free cash flow as a percent of revenue (non-GAAP)
|
|
|
30.5%
|
|
|
29.6%
|
|
|
Supplemental financial information
With the fourth-quarter 2016 adoption of ASU 2016-09 related to stock compensation, we were required to apply the new standard
only as of the beginning of 2016 for the Consolidated Statements of Income and on a full retrospective basis for all periods in
the Consolidated Statements of Cash Flows. The recast amounts can be found in the chart below.
|
4Q16 (a)
|
3Q16
|
2Q16
|
1Q16
|
|
|
Reported
|
Reported
|
Recast
|
Reported
|
Recast
|
Reported
|
Recast
|
|
|
Income statement data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
$
|
450
|
$
|
413
|
$
|
363
|
$
|
323
|
$
|
283
|
$
|
282
|
$
|
239
|
|
|
Net income
|
|
1,047
|
|
968
|
|
1,018
|
|
779
|
|
819
|
|
668
|
|
711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding, in millions
|
|
1,018
|
|
1,017
|
|
1,023
|
|
1,016
|
|
1,020
|
|
1,018
|
|
1,022
|
|
|
Basic EPS
|
$
|
1.04
|
$
|
0.95
|
$
|
1.00
|
$
|
0.77
|
$
|
0.81
|
$
|
0.65
|
$
|
0.70
|
|
|
Diluted EPS
|
$
|
1.02
|
$
|
0.94
|
$
|
0.98
|
$
|
0.76
|
$
|
0.79
|
$
|
0.65
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities (GAAP)
|
|
1,387
|
|
1,413
|
|
1,465
|
|
1,069
|
|
1,109
|
|
547
|
|
653
|
|
|
Capital expenditures
|
|
(110)
|
|
(139)
|
|
(139)
|
|
(158)
|
|
(158)
|
|
(124)
|
|
(124)
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(non-GAAP) (c)
|
|
1,277
|
|
1,274
|
|
1,326
|
|
911
|
|
951
|
|
423
|
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
(917)
|
|
(676)
|
|
(728)
|
|
(1,180)
|
|
(1,220)
|
|
(839)
|
|
(945)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 (b)
|
2015
|
|
|
|
|
|
|
|
|
|
|
Total
|
Reported
|
Recast
|
|
|
|
|
|
|
|
|
|
|
Income statement data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
$
|
1,335
|
$
|
1,230
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
3,595
|
|
2,986
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding, in millions
|
|
1,021
|
|
1,043
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
$
|
3.54
|
$
|
2.86
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
$
|
3.48
|
$
|
2.82
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities (GAAP)
|
|
4,614
|
|
4,268
|
|
4,397
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(531)
|
|
(551)
|
|
(551)
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(non-GAAP) (c)
|
|
4,083
|
|
3,717
|
|
3,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
(3,810)
|
|
(4,165)
|
|
(4,294)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) 4Q16 amounts reflect adoption of ASU 2016-09.
|
|
|
(b) 2016 total is the sum of recast 1Q16, 2Q16 and 3Q16, and reported
4Q16.
|
|
|
(c) Free cash flow is Cash flow from operating activities less Capital
expenditures.
|
|
|
* Accounting standard ASU 2016-09 allowed only prospective adoption for the
income statement, therefore the prior annual periods were not recast.
|
|
Notice regarding forward-looking statements
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as
TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of
similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or
goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from
the expectations of TI or its management:
- Market demand for semiconductors, particularly in TI's end markets;
- TI's ability to compete in products and prices in an intensely competitive industry;
- Losses or curtailments of purchases from key customers and the timing and amount of distributor and other customer
inventory adjustments;
- Customer demand that differs from forecasts and the financial impact of inadequate or excess TI inventory that results from
demand that differs from projections;
- TI's ability to maintain or improve profit margins, including its ability to utilize its manufacturing facilities at
sufficient levels to cover its fixed operating costs, in an intensely competitive and cyclical industry;
- TI's ability to develop, manufacture and market innovative products in a rapidly changing technological environment;
- Economic, social and political conditions in the countries in which TI, its customers or its suppliers operate, including
security risks, health conditions, possible disruptions in transportation, communications and information technology networks
and fluctuations in foreign currency exchange rates;
- Natural events such as severe weather, geological events or health epidemics in the locations in which TI, its customers or
its suppliers operate;
- Breaches of TI's information technology systems or those of its customers or suppliers;
- Availability and cost of raw materials, utilities, manufacturing equipment, third-party manufacturing services and
manufacturing technology;
- Timely implementation of new manufacturing technologies and installation of manufacturing equipment, and the ability to
obtain needed third-party foundry and assembly/test subcontract services;
- TI's ability to maintain and enforce a strong intellectual property portfolio and obtain needed licenses from third
parties, expiration of license agreements between TI and its patent licensees, and market conditions reducing royalty payments
to TI;
- Compliance with or changes in the complex laws, rules and regulations to which TI is or may become subject, or actions of
enforcement authorities, that restrict TI's ability to manufacture its products or operate its business, or subject us to
fines, penalties, or other legal liability;
- Product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to TI
products, manufacturing, services, design or communications, or recalls by TI customers for a product containing a TI
part;
- Changes in the tax rate applicable to TI as the result of changes in tax law, the jurisdictions in which profits are
determined to be earned and taxed, adverse resolution of tax audits and the ability to realize deferred tax assets;
- Financial difficulties of distributors or their promotion of competing product lines to TI's detriment;
- A loss suffered by a customer or distributor of TI with respect to TI-consigned inventory;
- Instability in the global credit and financial markets that affects TI's ability to fund its daily operations, invest in
the business, make strategic acquisitions, or make principal and interest payments on its debt;
- Increases in health care and pension benefit costs;
- TI's ability to recruit and retain skilled personnel;
- TI's ability to successfully integrate and realize opportunities for growth from acquisitions, and its ability to realize
its expectations regarding the amount and timing of restructuring charges and associated cost savings; and
- Impairments of TI's non-financial assets.
For a more detailed discussion of these factors, see the Risk Factors discussion in Item 1A of TI's most recent Form 10-K. The
forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation
to update the forward-looking statements to reflect subsequent events or circumstances.
About Texas Instruments
Texas Instruments Incorporated (TI) is a global semiconductor design and manufacturing company that develops analog ICs and
embedded processors. By employing the world's brightest minds, TI creates innovations that shape the future of
technology. TI is helping more than 100,000 customers transform the future, today. Learn more at www.ti.com.
TI trademarks:
DLP
Other trademarks are the property of their respective owners.
TXN-G
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SOURCE Texas Instruments Incorporated