TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

March 31,

2019

2018

Cash flows from operating activities

Net income

$

1,217

$

1,366

Adjustments to net income:

Depreciation

166

137

Amortization of acquisition-related intangibles

79

80

Amortization of capitalized software

13

12

Stock compensation

61

70

Gains on sales of assets

(2)

—

Deferred taxes

4

(31)

Increase (decrease) from changes in:

Accounts receivable

(233)

(176)

Inventories

86

(97)

Prepaid expenses and other current assets

223

356

Accounts payable and accrued expenses

(67)

(51)

Accrued compensation

(373)

(372)

Income taxes payable

(94)

(131)

Changes in funded status of retirement plans

7

(15)

Other

20

(36)

Cash flows from operating activities

1,107

1,112

Cash flows from investing activities

Capital expenditures

(251)

(189)

Proceeds from asset sales

2

—

Purchases of short-term investments

(149)

(996)

Proceeds from short-term investments

1,584

1,455

Other

(13)

(4)

Cash flows from investing activities

1,173

266

Cash flows from financing activities

Proceeds from issuance of long-term debt

743

—

Dividends paid

(724)

(611)

Stock repurchases

(1,152)

(873)

Proceeds from common stock transactions

151

178

Other

(16)

(11)

Cash flows from financing activities

(998)

(1,317)

Net change in cash and cash equivalents

1,282

61

Cash and cash equivalents at beginning of period

2,438

1,656

Cash and cash equivalents at end of period

$

3,720

$

1,717