TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

June 30,

2018

2017

Cash flows from operating activities

Net income

$

1,405

$

1,056

Adjustments to Net income:

Depreciation

144

134

Amortization of acquisition-related intangibles

79

79

Amortization of capitalized software

10

12

Stock compensation

74

75

Deferred taxes

1

(54)

Increase (decrease) from changes in:

Accounts receivable

(97)

(132)

Inventories

(58)

(104)

Prepaid expenses and other current assets

61

83

Accounts payable and accrued expenses

6

12

Accrued compensation

123

131

Income taxes payable

120

(385)

Changes in funded status of retirement plans

29

19

Other

(71)

(9)

Cash flows from operating activities

1,826

917

Cash flows from investing activities

Capital expenditures

(249)

(151)

Purchases of short-term investments

(1,213)

(1,130)

Proceeds from short-term investments

1,375

1,265

Other

6

8

Cash flows from investing activities

(81)

(8)

Cash flows from financing activities

Proceeds from issuance of long-term debt

1,500

605

Repayment of debt

(500)

(375)

Dividends paid

(606)

(498)

Stock repurchases

(1,018)

(650)

Proceeds from common stock transactions

102

84

Other

(21)

(8)

Cash flows from financing activities

(543)

(842)

Net change in Cash and cash equivalents

1,202

67

Cash and cash equivalents at beginning of period

1,717

1,073

Cash and cash equivalents at end of period

$

2,919

$

1,140