TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

June 30,

2019

2018

Cash flows from operating activities

Net income

$

1,305

$

1,405

Adjustments to net income:

Depreciation

173

144

Amortization of acquisition-related intangibles

80

79

Amortization of capitalized software

14

10

Stock compensation

67

74

Gains on sales of assets

(21)

—

Deferred taxes

31

1

Increase (decrease) from changes in:

Accounts receivable

21

(97)

Inventories

52

(58)

Prepaid expenses and other current assets

18

61

Accounts payable and accrued expenses

(26)

6

Accrued compensation

129

123

Income taxes payable

(13)

120

Changes in funded status of retirement plans

2

29

Other

(36)

(71)

Cash flows from operating activities

1,796

1,826

Cash flows from investing activities

Capital expenditures

(284)

(249)

Proceeds from asset sales

28

—

Purchases of short-term investments

(239)

(1,213)

Proceeds from short-term investments

200

1,375

Other

37

6

Cash flows from investing activities

(258)

(81)

Cash flows from financing activities

Proceeds from issuance of long-term debt

—

1,500

Repayment of debt

—

(500)

Dividends paid

(722)

(606)

Stock repurchases

(863)

(1,018)

Proceeds from common stock transactions

146

102

Other

(6)

(21)

Cash flows from financing activities

(1,445)

(543)

Net change in cash and cash equivalents

93

1,202

Cash and cash equivalents at beginning of period

3,720

1,717

Cash and cash equivalents at end of period

$

3,813

$

2,919