TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended
March 31,

2021

2020

Cash flows from operating activities

Net income

$

1,753

$

1,174

Adjustments to net income:

Depreciation

179

186

Amortization of acquisition-related intangibles

47

50

Amortization of capitalized software

15

14

Stock compensation

61

63

Gains on sales of assets

(1)

—

Deferred taxes

8

(34)

Increase (decrease) from changes in:

Accounts receivable

(170)

(242)

Inventories

65

(2)

Prepaid expenses and other current assets

73

(88)

Accounts payable and accrued expenses

69

—

Accrued compensation

(379)

(353)

Income taxes payable

131

147

Changes in funded status of retirement plans

28

27

Other

(29)

(91)

Cash flows from operating activities

1,850

851

Cash flows from investing activities

Capital expenditures

(308)

(161)

Proceeds from asset sales

1

—

Purchases of short-term investments

(2,782)

(646)

Proceeds from short-term investments

2,000

1,638

Other

(20)

(5)

Cash flows from investing activities

(1,109)

826

Cash flows from financing activities

Proceeds from issuance of long-term debt

—

749

Repayment of debt

(550)

—

Dividends paid

(940)

(841)

Stock repurchases

(100)

(1,641)

Proceeds from common stock transactions

196

146

Other

(12)

(9)

Cash flows from financing activities

(1,406)

(1,596)

Net change in cash and cash equivalents

(665)

81

Cash and cash equivalents at beginning of period

3,107

2,437

Cash and cash equivalents at end of period

$

2,442

$

2,518