Trailing 12 Months

1Q16

1Q16

1Q15

Change

$     383

Stock repurchases

$   2,781

-3%

Total cash returned

$   4,172

$   4,135

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

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

For Three Months Ended

March 31,

2016

2015

Revenue

$

3,008

$

3,150

Cost of revenue (COR)

1,184

1,334

Gross profit

1,824

1,816

Research and development (R&D)

326

338

Selling, general and administrative (SG&A)

448

439

Acquisition charges

80

83

Restructuring charges/other

2

(2)

Operating profit

968

958

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

4

4

Interest and debt expense

22

22

Income before income taxes

950

940

Provision for income taxes

282

284

Net income

$

668

$

656

Diluted earnings per common share

$

.65

$

.61

Average diluted shares outstanding (millions)

1,018

1,061

Cash dividends declared per common share

$

.38

$

.34

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

$

668

$

656

Income allocated to RSUs

(9)

(9)

Income allocated to common stock for diluted EPS

$

659

$

647