Trailing 12 Months

Q3 2019

Q3 2019

Q3 2018

Change

Dividends paid

$

721

$

2,903

$

2,430

19%

Stock repurchases

$

456

$

4,480

$

3,797

18%

Total cash returned

$

1,177

$

7,383

$

6,227

19%

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

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

For Three Months Ended
September 30,

2019

2018

Revenue

$

3,771

$

4,261

Cost of revenue (COR)

1,457

Gross profit

2,446

2,804

Research and development (R&D)

379

390

Selling, general and administrative (SG&A)

399

396

Acquisition charges

79

80

Restructuring charges/other

—

1

Operating profit

1,589

1,937

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

34

23

Interest and debt expense

43

36

Income before income taxes

1,580

1,924

Provision for income taxes

155

354

Net income

$

1,425

$

1,570

Diluted earnings per common share

$

1.49

$

1.58

Average shares outstanding (millions):

Basic

935

969

Diluted

950

989

Cash dividends declared per common share

$

.77

$

.62

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)

$

257

$

367

Discrete tax items

(102)

(13)

Provision for income taxes (effective taxes)

$

155

$

354

Annual operating tax rate

16%

20%

Effective tax rate

10%

18%

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

$

1,425

$

1,570

Income allocated to RSUs

(8)

(11)

Income allocated to common stock for diluted EPS

$

1,417

$

1,559