Trailing 12 Months

2Q18

2Q18

2Q17

Change

Dividends paid

$

606

$

2,323

$

1,879

24%

Stock repurchases

$

1,018

$

3,247

$

2,175

49%

Total cash returned

$

1,624

$

5,570

$

4,054

37%

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

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

For Three Months Ended

June 30,

2018

2017

Revenue

$

4,017

$

3,693

Cost of revenue (COR)

1,398

1,319

Gross profit

2,619

2,374

Research and development (R&D)

384

378

Selling, general and administrative (SG&A)

441

434

Acquisition charges

79

79

Restructuring charges/other

3

3

Operating profit

1,712

1,480

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

24

26

Interest and debt expense

30

20

Income before income taxes

1,706

1,486

Provision for income taxes

301

430

Net income

$

1,405

$

1,056

Diluted earnings per common share

$

1.40

$

1.03

Average shares outstanding (millions):

Basic

977

994

Diluted

997

1,015

Cash dividends declared per common share

$

.62

$

.50

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)

$

344

$

458

Discrete tax items

(43)

(28)

Provision for income taxes (effective taxes)

$

301

$

430

Annual operating tax rate

20%

31%

Effective tax rate

18%

29%

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

$

1,405

$

1,056

Income allocated to RSUs

(11)

(10)

Income allocated to common stock for diluted EPS

$

1,394

$

1,046