Earnings per share, excluding two items
This release includes a reference to earnings per share, excluding two items, compared with previously issued guidance. The company believes this measure, which was not prepared in accordance with generally accepted accounting principles in the United States (GAAP) and is supplemental to the comparable GAAP measure, provides investors with insight into TI's underlying business results.
Reconciliation to the most directly comparable GAAP measure is provided in the table below.
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|
|
For Three Months Ended | |
|
|
|
December 31, 2014 | |
|
Earnings per common share (GAAP) |
|
$ |
0.76 |
|
Federal research tax credit |
|
|
(0.05) |
|
Gains on sales of assets |
|
|
(0.02) |
|
Earnings per common share, excluding two items (non-GAAP) |
|
$ |
0.69 |
TI's fourth-quarter 2014 outlook for earnings per share between $0.64 and $0.74 was included in the company's third-quarter earnings release.
Free cash flow and associated ratios
This release also 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 investors, 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-based measures is provided in the table below.
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|
|
For Years Ended |
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| ||||
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|
|
December 31, |
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| ||||
|
|
|
2014 |
|
2013 |
|
Change | ||
|
Cash flow from operations (GAAP) |
|
$ |
3,892 |
|
$ |
3,384 |
|
15% |
|
Capital expenditures |
|
|
(385) |
|
|
(412) |
|
|
|
Free cash flow (non-GAAP) |
|
$ |
3,507 |
|
$ |
2,972 |
|
18% |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
13,045 |
|
$ |
12,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations as a percent of revenue (GAAP) |
|
|
30% |
|
|
28% |
|
|
|
Free cash flow as a percent of revenue (non-GAAP) |
|
|
27% |
|
|
24% |
|
|
Safe Harbor Statement
