TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For Three Months Ended

September 30,

(Millions of dollars)

2021

2020

Cash flows from operating activities

Net income

$

1,947

$

1,353

Adjustments to net income:

Depreciation

192

183

Amortization of acquisition-related intangibles

47

51

Amortization of capitalized software

14

16

Stock compensation

50

50

Gains on sales of assets

(3)

(2)

Deferred taxes

12

(51)

Increase (decrease) from changes in:

Accounts receivable

(62)

(216)

Inventories

(13)

64

Prepaid expenses and other current assets

76

25

Accounts payable and accrued expenses

35

(13)

Accrued compensation

135

157

Income taxes payable

(10)

(208)

Changes in funded status of retirement plans

13

(1)

Other

(5)

35

Cash flows from operating activities

2,428

1,443

Cash flows from investing activities

Capital expenditures

(486)

(146)

Proceeds from asset sales

3

2

Purchases of short-term investments

(1,693)

(2,540)

Proceeds from short-term investments

1,315

510

Other

(23)

(15)

Cash flows from investing activities

(884)

(2,189)

Cash flows from financing activities

Proceeds from issuance of long-term debt

1,495

—

Dividends paid

(942)

(825)

Stock repurchases

(139)

(15)

Proceeds from common stock transactions

75

123

Other

(19)

(9)

Cash flows from financing activities

470

(726)

Net change in cash and cash equivalents

2,014

(1,472)

Cash and cash equivalents at beginning of period

3,649

4,294

Cash and cash equivalents at end of period

$

5,663

$

2,822