Trailing 12 Months

Q1 2020

Q1 2020

Q1 2019

Change

Dividends paid

$

841

$

3,125

$

2,668

17%

Stock repurchases

$

1,641

$

3,449

$

5,379

(36)%

Total cash returned

$

2,482

$

6,574

$

8,047

(18)%

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

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

For Three Months Ended
March 31,

2020

2019

Revenue

$

3,329

$

3,594

Cost of revenue (COR)

1,333

Gross profit

2,088

2,261

Research and development (R&D)

377

389

Selling, general and administrative (SG&A)

417

414

Acquisition charges

50

79

Operating profit

1,244

1,379

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

25

36

Interest and debt expense

45

38

Income before income taxes

1,224

1,377

Provision for income taxes

50

160

Net income

$

1,174

$

1,217

Diluted earnings per common share

$

1.24

$

1.26

Average shares outstanding (millions):

Basic

931

939

Diluted

943

956

Cash dividends declared per common share

$

.90

$

.77

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)

$

166

$

220

Discrete tax items

(116)

(60)

Provision for income taxes (effective taxes)

$

50

$

160

Annual operating tax rate

14%

16%

Effective tax rate

4%

12%

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

$

1,174

$

1,217

Income allocated to RSUs

(6)

(8)

Income allocated to common stock for diluted EPS

$

1,168

$

1,209