TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

March 31,

2017

2016

Cash flows from operating activities

Net income

$

997

$

711

Adjustments to Net income:

Depreciation

139

161

Amortization of acquisition-related intangibles

80

80

Amortization of capitalized software

11

8

Stock compensation

68

72

Deferred income taxes

9

24

Increase (decrease) from changes in:

Accounts receivable

(68)

(100)

Inventories

(53)

(114)

Prepaid expenses and other current assets

(71)

43

Accounts payable and accrued expenses

(78)

(41)

Accrued compensation

(356)

(322)

Income taxes payable

149

131

Changes in funded status of retirement plans

(14)

18

Other

(18)

(18)

Cash flows from operating activities

795

653

Cash flows from investing activities

Capital expenditures

(127)

(124)

Proceeds from asset sales

40

—

Purchases of short-term investments

(757)

(200)

Proceeds from short-term investments

1,120

900

Other

(9)

(3)

Cash flows from investing activities

267

573

Cash flows from financing activities

Repayment of debt

(250)

—

Dividends paid

(500)

(383)

Stock repurchases

(550)

(630)

Proceeds from common stock transactions

161

68

Other

(4)

—

Cash flows from financing activities

(1,143)

(945)

Net change in Cash and cash equivalents

(81)

281

Cash and cash equivalents at beginning of period

1,154

1,000

Cash and cash equivalents at end of period

$

1,073

$

1,281

Certain amounts in the prior period have been recast to conform to the current presentation.