This release also includes references to free cash flow and various ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow was calculated by subtracting Capital expenditures from the most directly comparable GAAP measure, Cash flow from operating activities (also referred to as Cash flow from operations). The various ratios in the release compare free cash flow to the following GAAP measures: Revenue, Dividends paid and Stock repurchases.
The company believes these non-GAAP measures provide insight into its liquidity, its cash-generating capability and the amount of cash potentially available to return to investors, as well as insight into its financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.
Reconciliation to the most directly comparable GAAP-based measures is provided in the tables below.
|
|
|
| ||||||
|
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES | ||||||||
|
(Millions of dollars) | ||||||||
|
Free cash flow: |
|
| ||||||
|
|
|
| ||||||
|
|
For Three Months Ended Mar. 31, 2014 |
|
|
For Twelve Months Ended Mar. 31, 2014 |
|
For Twelve Months Ended Mar. 31, 2013 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ 2,983 |
|
|
$ 12,302 |
|
$ 12,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations (GAAP) |
$ 462 |
|
|
$ 3,486 |
|
$ 3,324 |
|
5% |
|
Capital expenditures |
(77) |
|
|
(405) |
|
(476) |
|
|
|
Free cash flow (non-GAAP) |
$ 385 |
|
|
$ 3,081 |
|
$ 2,848 |
|
8% |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations as a percent of revenue (GAAP) |
15% |
|
|
28% |
|
26% |
|
|
|
Free cash flow as a percent of revenue (non-GAAP) |
13% |
|
|
25% |
|
23% |
|
|
|
| |||
|
| |||
|
Total cash returned to shareholders as a percentage of targeted cash return: | |||
|
|
|
|
For Twelve Months Ended Mar. 31, 2014 |
|
|
|
|
|
|
Dividends paid |
|
|
$ 1,268 |
|
Stock repurchases |
|
|
2,909 |
|
Total cash returned to shareholders |
|
|
$ 4,177 |
|
|
|
|
|
|
Free cash flow (non-GAAP) |
|
|
$ 3,081 |
|
Proceeds from issuance of long-term debt |
|
$ 1,484 |
|
|
Repayment of debt |
|
(1,500) |
|
|
Net debt retirement |
|
|
$ (16) |
|
Proceeds from common stock transactions |
|
|
1,143 |
|
Targeted cash return to shareholders (non-GAAP) |
|
|
$ 4,208 |
|
|
|
|
|
|
|
|
|
|
|
Total cash returned to shareholders as a percentage of targeted cash return to shareholders (non-GAAP) |
|
|
99% |
|
|
|
|
|
