TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

March 31,

2020

2019

Cash flows from operating activities

Net income

$

1,174

$

1,217

Adjustments to net income:

Depreciation

186

166

Amortization of acquisition-related intangibles

50

79

Amortization of capitalized software

14

13

Stock compensation

63

61

Gains on sales of assets

—

(2)

Deferred taxes

(34)

4

Increase (decrease) from changes in:

Accounts receivable

(242)

(233)

Inventories

(2)

86

Prepaid expenses and other current assets

(88)

223

Accounts payable and accrued expenses

—

(67)

Accrued compensation

(353)

(373)

Income taxes payable

147

(94)

Changes in funded status of retirement plans

27

7

Other

(91)

20

Cash flows from operating activities

851

1,107

Cash flows from investing activities

Capital expenditures

(161)

(251)

Proceeds from asset sales

—

2

Purchases of short-term investments

(646)

(149)

Proceeds from short-term investments

1,638

1,584

Other

(5)

(13)

Cash flows from investing activities

826

1,173

Cash flows from financing activities

Proceeds from issuance of long-term debt

749

743

Dividends paid

(841)

(724)

Stock repurchases

(1,641)

(1,152)

Proceeds from common stock transactions

146

151

Other

(9)

(16)

Cash flows from financing activities

(1,596)

(998)

Net change in cash and cash equivalents

81

1,282

Cash and cash equivalents at beginning of period

2,437

2,438

Cash and cash equivalents at end of period

$

2,518

$

3,720