Trailing 12 Months

3Q16

3Q16

3Q15

Change

Dividends paid

$   1,414

8%

Stock repurchases

$    500

$   2,812

-19%

Total cash returned

$    882

$   4,226

-10%

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

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

For Three Months Ended

September 30,

2016

2015

Revenue

$

3,675

$

3,429

Cost of revenue (COR)

1,395

1,432

Gross profit

2,280

1,997

Research and development (R&D)

356

316

Selling, general and administrative (SG&A)

448

434

Acquisition charges

80

83

Restructuring charges/other

1

—

Operating profit

1,395

1,164

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

4

6

Interest and debt expense

18

22

Income before income taxes

1,381

1,148

Provision for income taxes

413

350

Net income

$

968

$

798

Diluted earnings per common share

$

.94

$

.76

Average diluted shares outstanding (millions)

1,017

1,035

Cash dividends declared per common share

$

.38

$

.34

As a result of accounting rule ASC 260, which requires a portion of Net income to be allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents, diluted EPS is calculated using the following:

Net income

$

968

$

798

Income allocated to RSUs

(11)

(11)

Income allocated to common stock for diluted EPS

$

957

$

787