TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

March 31,

2018

2017

Cash flows from operating activities

Net income

$

1,366

$

997

Adjustments to Net income:

Depreciation

137

139

Amortization of acquisition-related intangibles

80

80

Amortization of capitalized software

12

11

Stock compensation

70

68

Deferred taxes

(31)

9

Increase (decrease) from changes in:

Accounts receivable

(176)

(68)

Inventories

(97)

(53)

Prepaid expenses and other current assets

356

(71)

Accounts payable and accrued expenses

(51)

(78)

Accrued compensation

(372)

(356)

Income taxes payable

(131)

149

Changes in funded status of retirement plans

(15)

(14)

Other

(36)

(18)

Cash flows from operating activities

1,112

795

Cash flows from investing activities

Capital expenditures

(189)

(127)

Proceeds from asset sales

—

40

Purchases of short-term investments

(996)

(757)

Proceeds from short-term investments

1,455

1,120

Other

(4)

(9)

Cash flows from investing activities

266

267

Cash flows from financing activities

Repayment of debt

—

(250)

Dividends paid

(611)

(500)

Stock repurchases

(873)

(550)

Proceeds from common stock transactions

178

161

Other

(11)

(4)

Cash flows from financing activities

(1,317)

(1,143)

Net change in Cash and cash equivalents

61

(81)

Cash and cash equivalents at beginning of period

1,656

1,154

Cash and cash equivalents at end of period

$

1,717

$

1,073