TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

For Years Ended

December 31,

December 31,

2019

2018

2019

2018

Cash flows from operating activities

Net income

$

1,070

$

1,239

$

5,017

$

5,580

Adjustments to net income:

Depreciation

186

158

708

590

Amortization of acquisition-related intangibles

50

79

288

318

Amortization of capitalized software

14

12

54

46

Stock compensation

41

42

217

232

Gains on sales of assets

—

(3)

(23)

(3)

Deferred taxes

50

(23)

81

(105)

Increase (decrease) from changes in:

Accounts receivable

268

378

133

71

Inventories

39

(101)

216

(282)

Prepaid expenses and other current assets

(20)

101

265

669

Accounts payable and accrued expenses

(29)

(13)

(93)

(7)

Accrued compensation

100

105

(15)

(7)

Income taxes payable

7

147

(193)

158

Changes in funded status of retirement plans

3

10

29

36

Other

(25)

14

(35)

(107)

Cash flows from operating activities

1,754

2,145

6,649

7,189

Cash flows from investing activities

Capital expenditures

(163)

(323)

(847)

(1,131)

Proceeds from asset sales

—

9

30

9

Purchases of short-term investments

(2,070)

(333)

(3,444)

(5,641)

Proceeds from short-term investments

305

2,163

2,309

6,708

Other

7

(11)

32

(23)

Cash flows from investing activities

(1,921)

1,505

(1,920)

(78)

Cash flows from financing activities

Proceeds from issuance of long-term debt

—

—

1,491

1,500

Repayment of debt

—

—

(750)

(500)

Dividends paid

(841)

(736)

(3,008)

(2,555)

Stock repurchases

(489)

(2,009)

(2,960)

(5,100)

Proceeds from common stock transactions

48

38

539

373

Other

(7)

(7)

(42)

(47)

Cash flows from financing activities

(1,289)

(2,714)

(4,730)

(6,329)

Net change in cash and cash equivalents

(1,456)

936

(1)

782

Cash and cash equivalents at beginning of period

3,893

1,502

2,438

1,656

Cash and cash equivalents at end of period

$

2,437

$

2,438

$

2,437

$

2,438