TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

September 30,

2018

2017

Cash flows from operating activities

Net income

$

1,570

$

1,285

Adjustments to Net income:

Depreciation

151

133

Amortization of acquisition-related intangibles

80

80

Amortization of capitalized software

12

12

Stock compensation

46

54

Deferred taxes

(52)

(2)

Increase (decrease) from changes in:

Accounts receivable

(34)

(106)

Inventories

(26)

39

Prepaid expenses and other current assets

151

31

Accounts payable and accrued expenses

51

47

Accrued compensation

137

140

Income taxes payable

22

10

Changes in funded status of retirement plans

12

31

Other

(14)

(32)

Cash flows from operating activities

2,106

1,722

Cash flows from investing activities

Capital expenditures

(370)

(186)

Purchases of short-term investments

(3,099)

(1,218)

Proceeds from short-term investments

1,715

920

Other

(14)

(4)

Cash flows from investing activities

(1,768)

(488)

Cash flows from financing activities

Dividends paid

(602)

(495)

Stock repurchases

(1,200)

(650)

Proceeds from common stock transactions

55

76

Other

(8)

(9)

Cash flows from financing activities

(1,755)

(1,078)

Net change in Cash and cash equivalents

(1,417)

156

Cash and cash equivalents at beginning of period

2,919

1,140

Cash and cash equivalents at end of period

$

1,502

$

1,296