Trailing 12 Months

1Q18

1Q18

1Q17

Change

Dividends paid

$

611

$

2,215

$

1,763

26%

Stock repurchases

$

873

$

2,879

$

2,052

40%

Total cash returned

$

1,484

$

5,094

$

3,815

34%

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

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

For Three Months Ended

March 31,

2018

2017

Revenue

$

3,789

$

3,402

Cost of revenue (COR)

1,342

1,258

Gross profit

2,447

2,144

Research and development (R&D)

385

369

Selling, general and administrative (SG&A)

433

439

Acquisition charges

80

80

Restructuring charges/other

1

4

Operating profit

1,548

1,252

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

28

21

Interest and debt expense

23

18

Income before income taxes

1,553

1,255

Provision for income taxes

187

258

Net income

$

1,366

$

997

Diluted earnings per common share

$

1.35

$

.97

Average shares outstanding (millions):

Basic

983

998

Diluted

1,005

1,019

Cash dividends declared per common share

$

.62

$

.50

Supplemental Information

(Quarterly, except as noted)

Provision for income taxes is based on the following:

Operating taxes (calculated using the estimated annual effective tax rate)

$

316

$

382

Discrete tax items

(129)

(124)

Provision for income taxes (effective taxes)

$

187

$

258

Annual operating tax rate

20%

30%

Effective tax rate

12%

21%

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

$

1,366

$

997

Income allocated to RSUs

(11)

(10)

Income allocated to common stock for diluted EPS

$

1,355

$

987