TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

September 30,

2015

2014

Cash flows from operating activities

Net income

$

798

$

826

Adjustments to Net income:

Depreciation

193

213

Amortization of acquisition-related intangibles

80

80

Amortization of capitalized software

12

15

Stock-based compensation

66

62

Gains on sales of assets

—

(5)

Deferred income taxes

(50)

(27)

Increase (decrease) from changes in:

Accounts receivable

(47)

42

Inventories

114

(7)

Prepaid expenses and other current assets

40

96

Accounts payable and accrued expenses

(48)

(48)

Accrued compensation

132

127

Income taxes payable

99

(42)

Changes in funded status of retirement plans

24

32

Other

(4)

19

Cash flows from operating activities

1,409

1,383

Cash flows from investing activities

Capital expenditures

(139)

(103)

Proceeds from asset sales

—

6

Purchases of short-term investments

(459)

(704)

Proceeds from short-term investments

980

412

Other

7

6

Cash flows from investing activities

389

(383)

Cash flows from financing activities

Repayment of debt

(750)

—

Dividends paid

(348)

(319)

Stock repurchases

(790)

(670)

Proceeds from common stock transactions

35

68

Excess tax benefit from share-based payments

4

11

Cash flows from financing activities

(1,849)

(910)

Net change in Cash and cash equivalents

(51)

90

Cash and cash equivalents at beginning of period

1,184

1,216

Cash and cash equivalents at end of period

$

1,133

$

1,306