DALLAS, Jan. 24, 2011 /PRNewswire/ -- Texas Instruments
Incorporated (TI) (NYSE: TXN) today announced fourth-quarter
revenue of $3.53 billion, net income
of $942 million and earnings per
share of 78 cents. Earnings per
share included 14 cents from the
combination of the gain on the sale of a product line and a tax
benefit that was primarily associated with the reinstatement of the
federal R&D tax credit.
"Our strong financial results for the fourth quarter reinforce
our view that the inventory-driven downturn that started in the
second half of 2010 is now mostly complete," said Rich Templeton, TI chairman, president and chief
executive officer. "We used this short and shallow downturn
to replenish our inventory, return product lead times to normal and
ramp three new factories. As markets start to grow again, we
are well positioned with the products and manufacturing capacity
that our customers need."
Templeton noted that the fourth quarter capped an important year
in TI's transformation. "Strong revenue growth of 34 percent
last year was led by our core businesses of Analog, Embedded
Processing and the part of our Wireless segment that is focused on
smartphones and tablets. Each of these core businesses grew
more than 40 percent and gained significant market share.
Success in these businesses let us again return cash to
shareholders by repurchasing $2.5
billion of TI stock and paying dividends of nearly
$600 million.
"As we enter 2011, Analog and Embedded Processing technologies
are becoming even more pervasive in the electronics of everyday
life. They are critical for the small form factors and long
battery lives in tablets and smartphones, the safety and
intelligence features in automobiles, and the reliability and
energy-saving features of the smart grid. With our focused
R&D and expanded manufacturing capacity, we're ready to deliver
when and where our customers want."
4Q10 financial summary
Amounts are in millions of dollars, except per-share
amounts.
|
|
|
4Q10
|
|
4Q09
|
vs. 4Q09
|
|
3Q10
|
vs. 3Q10
|
|
Revenue
|
$ 3,525
|
|
$ 3,005
|
17%
|
|
$ 3,740
|
-6%
|
|
Operating
profit
|
$ 1,230
|
|
$ 875
|
41%
|
|
$ 1,227
|
0%
|
|
Net income
|
$ 942
|
|
$ 655
|
44%
|
|
$ 859
|
10%
|
|
Earnings per
share
|
$ .78
|
|
$
.52
|
50%
|
|
$ .71
|
10%
|
|
Cash flow from
operations
|
$ 1,230
|
|
$ 1,000
|
23%
|
|
$ 1,318
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
TI's operating profit included $144
million from the gain on the sale of a product line.
Net income also included a $78
million tax benefit, which was primarily associated with the
reinstatement of the federal R&D tax credit that was
retroactive to the beginning of 2010.
In addition, operating profit increased from a year ago due to
higher gross profit from higher revenue. Compared with the
prior quarter, operating profit was about even as lower gross
profit, which resulted from lower revenue, offset the gain on sale
and lower operating expenses.
4Q10 segment results
|
|
|
4Q10
|
|
4Q09
|
vs.
4Q09
|
|
3Q10
|
vs.
3Q10
|
|
|
Analog:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 1,518
|
|
$ 1,263
|
20%
|
|
$ 1,581
|
-4%
|
|
|
Operating
profit
|
$ 486
|
|
$ 383
|
27%
|
|
$ 520
|
-7%
|
|
|
Embedded Processing:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 538
|
|
$ 412
|
31%
|
|
$ 579
|
-7%
|
|
|
Operating
profit
|
$ 143
|
|
$
89
|
61%
|
|
$ 160
|
-11%
|
|
|
Wireless:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 767
|
|
$ 758
|
1%
|
|
$ 767
|
0%
|
|
|
Operating
profit
|
$ 180
|
|
$ 181
|
-1%
|
|
$ 180
|
0%
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 702
|
|
$ 572
|
23%
|
|
$ 813
|
-14%
|
|
|
Operating
profit
|
$ 421
|
|
$ 222
|
90%
|
|
$ 367
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 4Q09 has been restated to reflect the 1Q10
transfer of a low-power wireless product line from the Analog
segment to the Wireless segment. For 2009, revenue from this
product line was $68 million, and it
operated at a loss of $17
million.
Analog: (includes high-volume analog &
logic, high-performance analog and power management products)
- Compared with a year ago, the increase in revenue was primarily
due to high-performance analog products. High-volume analog
& logic and power management products grew to a lesser extent.
- Compared with the prior quarter, the decline in revenue was
primarily due to power management products. The other two
product areas declined to a lesser extent.
- Operating profit increased from a year ago and declined from
the prior quarter due to gross profit changes.
Embedded Processing: (includes digital signal
processor and microcontroller catalog products that are sold across
a wide variety of markets, as well as application-specific products
that are used in communications infrastructure and automotive
electronics)
- Compared with a year ago, revenue grew primarily due to catalog
products. Revenue from products sold into communications
infrastructure also grew strongly, while revenue from automotive
applications increased to a lesser extent.
- Compared with the prior quarter, revenue declined due to
catalog products. Revenue from products sold into
communications infrastructure and automotive applications was about
even.
- Operating profit increased from a year ago and declined from
the prior quarter due to gross profit changes.
Wireless: (includes connectivity
products, OMAP™ applications processors and baseband products)
- Compared with a year ago, revenue was about even as strength in
connectivity products, and to a lesser extent applications
processors, was offset by lower baseband revenue.
- Compared with the prior quarter, revenue was even as growth in
applications processors was offset by lower revenue from
connectivity and baseband products.
- Operating profit was about even with the year-ago and prior
quarters.
Other: (includes DLP® products, custom
ASIC products, calculators and royalties, as well as products sold
under transitional supply agreements associated with recently
acquired factories)
- Compared with a year ago, revenue grew primarily as a result of
transitional supply agreements associated with recently acquired
factories and higher revenue from custom ASIC and DLP products.
Royalties and calculator revenue increased to a lesser
extent.
- Compared with the prior quarter, revenue decreased due to the
seasonal decline in calculator revenue. DLP product revenue
declined and transitional supply revenue increased by similar
amounts. Royalty revenue increased to a lesser extent and
custom ASIC revenue was about even.
- Operating profit increased both from a year ago and from the
prior quarter primarily due to the gain on the sale of a product
line. Higher gross profit also contributed to the year-ago
increase. Lower gross profit partially offset the gain on
sale compared with the prior quarter.
Restructuring charges were as follows:
|
|
|
4Q10
|
|
4Q09
|
|
3Q10
|
|
Analog
|
$
1
|
|
$
6
|
|
$
1
|
|
Embedded
Processing
|
$
0
|
|
$
3
|
|
$
1
|
|
Wireless
|
$
0
|
|
$
1
|
|
$
1
|
|
Other
|
$
0
|
|
$
2
|
|
$
1
|
|
Total
|
$
1
|
|
$ 12
|
|
$
4
|
|
|
|
|
|
|
|
|
|
4Q10 additional financial information
- Orders were $3.13 billion, down 4
percent from a year ago and down 9 percent from the prior
quarter.
- Inventory was $1.52 billion at
the end of the quarter, up $318
million from a year ago and up $96
million from the prior quarter.
- Capital expenditures were $301
million in the quarter compared with $436 million a year ago and $396 million in the prior quarter. Capital
expenditures in the quarter were primarily for assembly/test
manufacturing equipment, as well as for analog wafer manufacturing
equipment.
- The company used $600 million in
the quarter to repurchase 19.5 million shares of its common stock
and paid dividends of $153
million.
Year 2010 financial summary
|
2010
|
|
2009
|
vs.
2009
|
|
Revenue
|
$ 13,966
|
|
$ 10,427
|
34%
|
|
Operating
profit
|
$ 4,514
|
|
$ 1,991
|
127%
|
|
Net income
|
$ 3,228
|
|
$ 1,470
|
120%
|
|
Earnings per
share
|
$
2.62
|
|
$
1.15
|
128%
|
|
Cash flow from
operations
|
$ 3,820
|
|
$ 2,643
|
45%
|
|
|
|
|
|
|
TI's operating profit increased in 2010 due to higher gross
profit from higher revenue.
Year 2010 segment results
|
|
|
2010
|
|
2009
|
vs.
2009
|
|
Note
|
|
Analog:
|
|
|
|
|
|
|
|
Revenue
|
$ 5,979
|
|
$ 4,202
|
42%
|
|
(1)
|
|
Operating
profit
|
$ 1,876
|
|
$ 770
|
144%
|
|
|
|
Embedded Processing:
|
|
|
|
|
|
|
|
Revenue
|
$ 2,073
|
|
$ 1,471
|
41%
|
|
(2)
|
|
Operating
profit
|
$ 491
|
|
$ 194
|
153%
|
|
|
|
Wireless:
|
|
|
|
|
|
|
|
Revenue
|
$ 2,978
|
|
$ 2,626
|
13%
|
|
(3)
|
|
Operating
profit
|
$ 683
|
|
$ 315
|
117%
|
|
|
|
Other:
|
|
|
|
|
|
|
|
Revenue
|
$ 2,936
|
|
$ 2,128
|
38%
|
|
(4)
|
|
Operating
profit
|
$ 1,464
|
|
$ 712
|
106%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Analog revenue increased due to
strength across all three major product areas – high-volume analog
& logic, power management and high-performance analog products.
|
|
(2)
|
Embedded Processing revenue
increased primarily due to catalog products. Revenue from
products sold into communications infrastructure and automotive
applications increased to a lesser extent.
|
|
(3)
|
Wireless revenue increased
primarily due to strength in connectivity products, and to a lesser
extent, applications processors. Baseband revenue was about
even.
|
|
(4)
|
Other revenue increased
primarily due to strength in DLP products and custom ASIC products,
as well as higher royalties. Transitional supply revenue and
calculator revenue grew to a lesser extent.
|
|
|
|
Restructuring charges negatively impacted each segment's
operating profit as follows:
|
2010
|
|
2009
|
|
Analog
|
$ 13
|
|
$ 84
|
|
Embedded
Processing
|
$ 6
|
|
$ 43
|
|
Wireless
|
$ 10
|
|
$ 62
|
|
Other
|
$ 4
|
|
$ 23
|
|
Total
|
$ 33
|
|
$ 212
|
|
|
|
|
|
2010 additional financial information
- Capital expenditures were $1.20
billion in 2010, up $446
million from 2009.
- The company used $2.45 billion to
repurchase 93.7 million shares of its common stock and paid
dividends of $592 million.
Outlook
For the first quarter of 2011, TI expects:
- Revenue: $3.27 – 3.55 billion
- Earnings per share: $0.54 – 0.62
TI will update its first-quarter outlook on March 8, 2011.
For the full year of 2011, TI expects approximately the
following:
- R&D expense: $1.7 billion
- Capital expenditures: $0.9 billion
- Depreciation: $0.9 billion
- Annual effective tax rate: 30%
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31,
2010
|
|
Dec.
31,
2009
|
|
Sept.
30,
2010
|
|
Dec.
31,
2010
|
|
Dec.
31,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 3,525
|
|
$ 3,005
|
|
$ 3,740
|
|
$ 13,966
|
|
$ 10,427
|
|
Cost of revenue
|
|
1,656
|
|
1,416
|
|
1,701
|
|
6,474
|
|
5,428
|
|
Gross profit
|
|
1,869
|
|
1,589
|
|
2,039
|
|
7,492
|
|
4,999
|
|
Research and development
(R&D)
|
|
393
|
|
355
|
|
417
|
|
1,570
|
|
1,476
|
|
Selling, general and
administrative (SG&A)
|
|
389
|
|
347
|
|
391
|
|
1,519
|
|
1,320
|
|
Restructuring expense
|
|
1
|
|
12
|
|
4
|
|
33
|
|
212
|
|
Gain on divestiture
|
|
(144)
|
|
--
|
|
--
|
|
(144)
|
|
--
|
|
Operating profit
|
|
1,230
|
|
875
|
|
1,227
|
|
4,514
|
|
1,991
|
|
Other income (expense)
net
|
|
18
|
|
6
|
|
8
|
|
37
|
|
26
|
|
Income before income
taxes
|
|
1,248
|
|
881
|
|
1,235
|
|
4,551
|
|
2,017
|
|
Provision for income
taxes
|
|
306
|
|
226
|
|
376
|
|
1,323
|
|
547
|
|
Net income
|
|
$
942
|
|
$ 655
|
|
$ 859
|
|
$
3,228
|
|
$ 1,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
.79
|
|
$ .52
|
|
$ .71
|
|
$
2.66
|
|
$ 1.16
|
|
Diluted
|
|
$
.78
|
|
$ .52
|
|
$ .71
|
|
$
2.62
|
|
$ 1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding
(millions):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,170
|
|
1,243
|
|
1,184
|
|
1,199
|
|
1,260
|
|
Diluted
|
|
1,189
|
|
1,257
|
|
1,196
|
|
1,213
|
|
1,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
share of common stock
|
|
$
.13
|
|
$ .12
|
|
$ .12
|
|
$
.49
|
|
$
.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
53.0%
|
|
52.9%
|
|
54.5%
|
|
53.6%
|
|
47.9%
|
|
R&D
|
|
11.1%
|
|
11.8%
|
|
11.1%
|
|
11.2%
|
|
14.2%
|
|
SG&A
|
|
11.1%
|
|
11.5%
|
|
10.5%
|
|
10.9%
|
|
12.6%
|
|
Operating profit
|
|
34.9%
|
|
29.1%
|
|
32.8%
|
|
32.3%
|
|
19.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As required by accounting rule
ASC 260, net income allocated to unvested restricted stock units
(RSUs) on which we pay dividend equivalents is excluded from the
calculation of EPS. The amount excluded from earnings per
common share was $14 million, $7 million and $13 million for the
quarters ending December 31, 2010, December 31, 2009, and September
30, 2010; and $44 million and $14 million for years ending December
31, 2010, and December 31, 2009, respectively.
|
|
|
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Balance Sheets
(Millions of
dollars, except share amounts)
|
|
|
|
Dec.
31,
2010
|
|
Dec.
31,
2009
|
|
Sept.
30,
2010
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,319
|
|
$ 1,182
|
|
$ 1,093
|
|
Short-term
investments
|
|
1,753
|
|
1,743
|
|
1,417
|
|
Accounts receivable, net
of allowances of ($18), ($23) and ($20)
|
|
1,518
|
|
1,277
|
|
1,754
|
|
Raw materials
|
|
122
|
|
93
|
|
114
|
|
Work in process
|
|
919
|
|
758
|
|
875
|
|
Finished goods
|
|
479
|
|
351
|
|
435
|
|
Inventories
|
|
1,520
|
|
1,202
|
|
1,424
|
|
Deferred income
taxes
|
|
770
|
|
546
|
|
601
|
|
Prepaid expenses and other
current assets
|
|
180
|
|
164
|
|
179
|
|
Total current
assets
|
|
7,060
|
|
6,114
|
|
6,468
|
|
Property, plant and equipment at
cost
|
|
6,907
|
|
6,705
|
|
6,897
|
|
Less accumulated
depreciation
|
|
(3,227)
|
|
(3,547)
|
|
(3,441)
|
|
Property, plant and
equipment, net
|
|
3,680
|
|
3,158
|
|
3,456
|
|
Long-term investments
|
|
453
|
|
637
|
|
523
|
|
Goodwill
|
|
924
|
|
926
|
|
926
|
|
Acquisition-related
intangibles
|
|
76
|
|
124
|
|
86
|
|
Deferred income taxes
|
|
927
|
|
926
|
|
907
|
|
Capitalized software licenses,
net
|
|
205
|
|
119
|
|
213
|
|
Overfunded retirement
plans
|
|
31
|
|
64
|
|
23
|
|
Other assets
|
|
45
|
|
51
|
|
47
|
|
Total assets
|
|
$ 13,401
|
|
$ 12,119
|
|
$ 12,649
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
621
|
|
$
503
|
|
$ 623
|
|
Accrued
compensation
|
|
629
|
|
386
|
|
568
|
|
Income taxes
payable
|
|
109
|
|
128
|
|
31
|
|
Accrued expenses and other
liabilities
|
|
622
|
|
570
|
|
616
|
|
Total current
liabilities
|
|
1,981
|
|
1,587
|
|
1,838
|
|
Underfunded retirement
plans
|
|
519
|
|
425
|
|
447
|
|
Deferred income taxes
|
|
86
|
|
67
|
|
82
|
|
Deferred credits and other
liabilities
|
|
378
|
|
318
|
|
320
|
|
Total liabilities
|
|
2,964
|
|
2,397
|
|
2,687
|
|
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: Dec.
31, 2010 -- 1,740,166,101; Dec. 31, 2009 --
|
|
|
|
|
|
|
|
1,739,811,721; Sept. 30,
2010 -- 1,739,932,695
|
|
1,740
|
|
1,740
|
|
1,740
|
|
Paid-in capital
|
|
1,114
|
|
1,086
|
|
1,128
|
|
Retained earnings
|
|
24,695
|
|
22,066
|
|
23,907
|
|
Less treasury common stock
at cost:
|
|
|
|
|
|
|
|
Shares: Dec. 31,
2010 -- 572,722,397; Dec. 31, 2009 --
|
|
|
|
|
|
|
|
499,693,704; Sept. 30,
2010 -- 565,775,203
|
|
(16,411)
|
|
(14,549)
|
|
(16,169)
|
|
Accumulated other
comprehensive income (loss), net of taxes
|
|
(701)
|
|
(621)
|
|
(644)
|
|
Total stockholders'
equity
|
|
10,437
|
|
9,722
|
|
9,962
|
|
Total liabilities and
stockholders' equity
|
|
$ 13,401
|
|
$ 12,119
|
|
$ 12,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Millions of
dollars)
|
|
|
For Three
Months Ended
|
For Years
Ended
|
|
|
|
Dec.
31,
2010
|
|
Dec.
31,
2009
|
|
Sept.
30,
2010
|
|
Dec.
31,
2010
|
|
Dec.
31,
2009
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 942
|
|
$ 655
|
|
$ 859
|
|
$ 3,228
|
|
$ 1,470
|
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
226
|
|
210
|
|
213
|
|
865
|
|
877
|
|
Stock-based
compensation
|
|
47
|
|
44
|
|
48
|
|
190
|
|
186
|
|
Amortization of
acquisition-related intangibles
|
|
10
|
|
14
|
|
11
|
|
48
|
|
48
|
|
Gain on
divestiture
|
|
(144)
|
|
--
|
|
--
|
|
(144)
|
|
--
|
|
Deferred income
taxes
|
|
(175)
|
|
66
|
|
(27)
|
|
(220)
|
|
146
|
|
Increase (decrease) from
changes in:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
237
|
|
156
|
|
(29)
|
|
(231)
|
|
(364)
|
|
Inventories
|
|
(91)
|
|
(86)
|
|
(66)
|
|
(304)
|
|
177
|
|
Prepaid expenses and
other current assets
|
|
3
|
|
11
|
|
(15)
|
|
(8)
|
|
35
|
|
Accounts payable and
accrued expenses
|
|
(40)
|
|
(34)
|
|
115
|
|
57
|
|
5
|
|
Accrued
compensation
|
|
64
|
|
8
|
|
149
|
|
246
|
|
(38)
|
|
Income taxes
payable
|
|
193
|
|
(18)
|
|
23
|
|
81
|
|
73
|
|
Other
|
|
(42)
|
|
(26)
|
|
37
|
|
12
|
|
28
|
|
Net cash provided by operating
activities
|
|
1,230
|
|
1,000
|
|
1,318
|
|
3,820
|
|
2,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(301)
|
|
(436)
|
|
(396)
|
|
(1,199)
|
|
(753)
|
|
Proceeds from
divestiture
|
|
148
|
|
--
|
|
--
|
|
148
|
|
--
|
|
Purchases of short-term
investments
|
|
(699)
|
|
(831)
|
|
(599)
|
|
(2,510)
|
|
(2,273)
|
|
Sales, redemptions and
maturities of short-term
|
|
|
|
|
|
|
|
|
|
|
|
investments
|
|
390
|
|
618
|
|
373
|
|
2,564
|
|
2,030
|
|
Purchases of long-term
investments
|
|
(2)
|
|
(4)
|
|
(4)
|
|
(8)
|
|
(9)
|
|
Redemptions and sales of
long-term investments
|
|
56
|
|
2
|
|
23
|
|
147
|
|
64
|
|
Business
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
(158)
|
|
--
|
|
(42)
|
|
(200)
|
|
--
|
|
Inventories
|
|
(5)
|
|
--
|
|
(9)
|
|
(14)
|
|
--
|
|
Other
|
|
23
|
|
--
|
|
(8)
|
|
15
|
|
(155)
|
|
Business acquisitions, net
of cash acquired
|
|
(140)
|
|
--
|
|
(59)
|
|
(199)
|
|
(155)
|
|
Net cash used in investing
activities
|
|
(548)
|
|
(651)
|
|
(662)
|
|
(1,057)
|
|
(1,096)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
(153)
|
|
(149)
|
|
(143)
|
|
(592)
|
|
(567)
|
|
Sales and other common
stock transactions
|
|
287
|
|
38
|
|
41
|
|
407
|
|
109
|
|
Excess tax benefit from
share-based payments
|
|
10
|
|
1
|
|
1
|
|
13
|
|
1
|
|
Stock repurchases
|
|
(600)
|
|
(351)
|
|
(600)
|
|
(2,454)
|
|
(954)
|
|
Net cash used in financing
activities
|
|
(456)
|
|
(461)
|
|
(701)
|
|
(2,626)
|
|
(1,411)
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
226
|
|
(112)
|
|
(45)
|
|
137
|
|
136
|
|
Cash and cash equivalents,
beginning of period
|
|
1,093
|
|
1,294
|
|
1,138
|
|
1,182
|
|
1,046
|
|
Cash and cash equivalents, end
of period
|
|
$ 1,319
|
|
$ 1,182
|
|
$ 1,093
|
|
$ 1,319
|
|
$ 1,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain amounts in prior
periods' financial statements have been reclassified to conform to
the current presentation.
|
|
|
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995:
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 key markets
such as communications, computing, industrial and entertainment
electronics;
- 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;
- TI's ability to compete in products and prices in an intensely
competitive industry;
- 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;
- 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 networks and fluctuations in foreign currency
exchange rates;
- Natural events such as severe weather and earthquakes in the
locations in which TI, its customers or its suppliers operate;
- Availability and cost of raw materials, utilities,
manufacturing equipment, third-party manufacturing services and
manufacturing technology;
- 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, the outcome of tax audits and
the ability to realize deferred tax assets;
- Changes in laws and regulations to which TI or its suppliers
are or may become subject, such as those imposing fees or reporting
or substitution costs relating to the discharge of emissions into
the environment or the use of certain raw materials in our
manufacturing processes;
- 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 our forecasts;
- The financial impact of inadequate or excess TI inventory that
results from demand that differs from projections;
- Impairments of our non-financial assets;
- Product liability or warranty claims, claims based on epidemic
or delivery failure or recalls by TI customers for a product
containing a TI part;
- TI's ability to recruit and retain skilled personnel; and
- Timely implementation of new manufacturing technologies,
installation of manufacturing equipment and the ability to obtain
needed third-party foundry and assembly/test subcontract
services.
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 TI undertakes no
obligation to update the forward-looking statements to reflect
subsequent events or circumstances.
About Texas Instruments
Texas Instruments (NYSE: TXN) helps customers solve problems and
develop new electronics that make the world smarter, healthier,
safer, greener and more fun. A global semiconductor company,
TI innovates through design, sales and manufacturing operations in
more than 30 countries. For more information, go to
www.ti.com.
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Other trademarks are the property of their respective
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TXN-F
SOURCE Texas Instruments Incorporated