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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission File Number 001-03761
TEXAS INSTRUMENTS INCORPORATED
(Exact Name of Registrant as Specified in Its Charter)
Delaware75-0289970
(State of Incorporation)(I.R.S. Employer Identification No.)
12500 TI Boulevard, Dallas, Texas
75243
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code 214-479-3773

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $1.00TXNThe Nasdaq Global Select Market
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company 
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No ☒
908,204,093
Number of shares of Registrant’s common stock outstanding as of
October 17, 2023


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1. Financial statements
 For Three Months EndedFor Nine Months Ended
Consolidated Statements of IncomeSeptember 30,September 30,
(In millions, except per-share amounts)2023202220232022
Revenue$4,532 $5,241 $13,442 $15,358 
Cost of revenue (COR)1,717 1,624 4,854 4,674 
Gross profit2,815 3,617 8,588 10,684 
Research and development (R&D)471 431 1,403 1,236 
Selling, general and administrative (SG&A)452 431 1,387 1,275 
Restructuring charges/other 77  209 
Operating profit1,892 2,678 5,798 7,964 
Other income (expense), net (OI&E)128 33 327 55 
Interest and debt expense98 53 255 154 
Income before income taxes1,922 2,658 5,870 7,865 
Provision for income taxes213 363 731 1,078 
Net income$1,709 $2,295 $5,139 $6,787 
Earnings per common share (EPS):    
Basic$1.87 $2.50 $5.63 $7.35 
Diluted$1.85 $2.47 $5.58 $7.27 
Average shares outstanding:    
Basic908 913 908 919 
Diluted916 923 916 929 
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted EPS is calculated using the following:
Net income$1,709 $2,295 $5,139 $6,787 
Income allocated to RSUs(10)(11)(26)(30)
Income allocated to common stock for diluted EPS$1,699 $2,284 $5,113 $6,757 
See accompanying notes.    

2

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
 For Three Months EndedFor Nine Months Ended
Consolidated Statements of Comprehensive IncomeSeptember 30,September 30,
(In millions)2023202220232022
Net income$1,709 $2,295 $5,139 $6,787 
Other comprehensive income (loss)    
Net actuarial losses of defined benefit plans:    
Adjustments, net of tax effect of ($3) and ($4); ($4) and $2
6 11 6 (23)
Recognized within net income, net of tax effect of ($1) and ($4); ($3) and ($9)
3 15 9 33 
Prior service cost (credit) of defined benefit plans:    
Adjustments, net of tax effect of $0 and $0; $0 and $0
 1  1 
Recognized within net income, net of tax effect of $0 and $0; $0 and $0
1 (1)1 (1)
Derivative instruments:    
Change in fair value, net of tax effect of $0 and $0; $0 and $0
 1 1 1 
Available-for-sale investments:
Unrealized gains (losses), net of tax effect of $0 and $0; $0 and $2
1 (1)2 (8)
Other comprehensive income (loss), net of taxes11 26 19 3 
Total comprehensive income$1,720 $2,321 $5,158 $6,790 
See accompanying notes.    

3

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
September 30,December 31,
Consolidated Balance Sheets20232022
(In millions, except par value)  
Assets  
Current assets:  
Cash and cash equivalents$2,566 $3,050 
Short-term investments6,382 6,017 
Accounts receivable, net of allowances of ($15) and ($13)
1,976 1,895 
Raw materials401 353 
Work in process2,147 1,546 
Finished goods1,360 858 
Inventories3,908 2,757 
Prepaid expenses and other current assets265 302 
Total current assets15,097 14,021 
Property, plant and equipment at cost12,528 9,950 
Accumulated depreciation(3,208)(3,074)
Property, plant and equipment9,320 6,876 
Goodwill4,362 4,362 
Deferred tax assets632 473 
Capitalized software licenses138 152 
Overfunded retirement plans166 188 
Other long-term assets1,923 1,135 
Total assets$31,638 $27,207 
Liabilities and stockholders’ equity  
Current liabilities:  
Current portion of long-term debt$300 $500 
Accounts payable713 851 
Accrued compensation707 799 
Income taxes payable108 189 
Accrued expenses and other liabilities824 646 
Total current liabilities2,652 2,985 
Long-term debt10,922 8,235 
Underfunded retirement plans141 118 
Deferred tax liabilities66 66 
Other long-term liabilities1,226 1,226 
Total liabilities15,007 12,630 
Stockholders’ equity:  
Preferred stock, $25 par value. Shares authorized – 10; none issued
  
Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741
1,741 1,741 
Paid-in capital3,280 2,951 
Retained earnings52,098 50,353 
Treasury common stock at cost  
Shares: September 30, 2023 – 833; December 31, 2022 – 835
(40,253)(40,214)
Accumulated other comprehensive income (loss), net of taxes (AOCI)(235)(254)
Total stockholders’ equity16,631 14,577 
Total liabilities and stockholders’ equity$31,638 $27,207 
  
See accompanying notes.  
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
 For Nine Months Ended
Consolidated Statements of Cash FlowsSeptember 30,
(In millions)20232022
Cash flows from operating activities  
Net income$5,139 $6,787 
Adjustments to net income:
Depreciation853 676 
Amortization of capitalized software48 40 
Stock compensation294 227 
Gains on sales of assets(1)(3)
Deferred taxes(159)(18)
Increase (decrease) from changes in:
Accounts receivable(81)(339)
Inventories(1,151)(494)
Prepaid expenses and other current assets38 45 
Accounts payable and accrued expenses(23)72 
Accrued compensation(97)(114)
Income taxes payable(65)26 
Changes in funded status of retirement plans49 126 
Other(348)(353)
Cash flows from operating activities4,496 6,678 
Cash flows from investing activities  
Capital expenditures(3,923)(1,830)
Proceeds from asset sales3 3 
Purchases of short-term investments(10,140)(10,795)
Proceeds from short-term investments9,976 10,007 
Other33 59 
Cash flows from investing activities(4,051)(2,556)
Cash flows from financing activities  
Proceeds from issuance of long-term debt3,000 695 
Repayment of debt(500)(500)
Dividends paid(3,376)(3,174)
Stock repurchases(228)(2,767)
Proceeds from common stock transactions218 191 
Other(43)(29)
Cash flows from financing activities(929)(5,584)
Net change in cash and cash equivalents(484)(1,462)
Cash and cash equivalents at beginning of period3,050 4,631 
Cash and cash equivalents at end of period$2,566 $3,169 
See accompanying notes.  

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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Notes to financial statements
1. Description of business, including segment and geographic area information
We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world. We have two reportable segments, Analog and Embedded Processing, each of which represents groups of similar products that are combined on the basis of similar design and development requirements, product characteristics, manufacturing processes and distribution channels. Our segments also reflect how management allocates resources and measures results.
Analog semiconductors change real-world signals, such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy, whether the equipment is plugged into a wall or using a battery. Our Analog segment consists of two major product lines: Power and Signal Chain.
Embedded Processing products are the digital “brains” of many types of electronic equipment. They are designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application.
We report the results of our remaining business activities in Other. Other includes operating segments that do not meet the quantitative thresholds for individually reportable segments and cannot be aggregated with other operating segments. Other includes DLP® products, calculators and custom ASIC products.
Our centralized manufacturing and support organizations, such as facilities, procurement and logistics, provide support to our operating segments, including those in Other. Costs incurred by these organizations, including depreciation, are charged to the segments on a per-unit basis. Consequently, depreciation expense is not an independently identifiable component within the segments’ results and, therefore, is not provided.
Segment information
For Three Months EndedFor Nine Months Ended
September 30,September 30,
 2023202220232022
Revenue:    
Analog$3,353 $3,993 $9,920 $11,801 
Embedded Processing890 821 2,616 2,424 
Other289 427 906 1,133 
Total revenue$4,532 $5,241 $13,442 $15,358 
Operating profit:
Analog$1,504 $2,185 $4,541 $6,561 
Embedded Processing258 321 813 960 
Other (a)130 172 444 443 
Total operating profit$1,892 $2,678 $5,798 $7,964 
(a)Includes restructuring charges/other
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Geographic area information
The following geographic area information is based on product shipment destination, which does not reflect end demand by geography.
For Three Months EndedFor Nine Months Ended
September 30,September 30,
2023202220232022
Revenue:
United States$630 14 %$694 13 %$1,900 14 %$1,765 11 %
China (a)1,880 41 2,441 47 5,531 41 7,740 50 
Rest of Asia571 13 694 13 1,654 12 1,993 13 
Europe, Middle East and Africa952 21 942 18 2,894 22 2,578 17 
Japan338 7 310 6 976 7 849 6 
Rest of world161 4 160 3 487 4 433 3 
Total revenue$4,532 100 %$5,241 100 %$13,442 100 %$15,358 100 %
(a)Revenue from products shipped into China includes shipments to customers that manufacture in China and then export end products to their customers around the world, as well as distributors that transship inventory through China to service other countries.
The following additional geographic information includes our estimate for revenue based on the location of our end customers’ headquarters, providing a better representation of the geographic profile for where critical decisions are made.
For Three Months EndedFor Nine Months Ended
September 30,September 30,
2023202220232022
Revenue:
United States$1,541 34 %$1,782 34 %$4,391 33 %$5,058 33 %
China813 18 1,143 22 2,561 19 3,758 24 
Rest of Asia434 10 534 10 1,263 10 1,643 11 
Europe, Middle East and Africa (a)1,193 26 1,281 24 3,657 27 3,480 23 
Japan455 10 446 9 1,373 10 1,252 8 
Rest of world96 2 55 1 197 1 167 1 
Total revenue$4,532 100 %$5,241 100 %$13,442 100 %$15,358 100 %
(a)Revenue from end customers headquartered in Germany was 13% and 11% in the third quarters of 2023 and 2022, respectively, and 13% and 10% in the first nine months of 2023 and 2022, respectively.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
2. Basis of presentation and significant accounting policies and practices
Basis of presentation
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and on the same basis as the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2022. The Consolidated Statements of Income, Comprehensive Income and Cash Flows for the periods ended September 30, 2023 and 2022, and the Consolidated Balance Sheet as of September 30, 2023, are not audited but reflect all adjustments that are of a normal recurring nature and are necessary for a fair statement of the results of the periods shown. Certain information and note disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Because the consolidated interim financial statements do not include all of the information and notes required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2022. The results for the three- and nine-month periods are not necessarily indicative of a full year’s results.
Significant accounting policies and practices
Earnings per share (EPS)
We use the two-class method for calculating EPS because the restricted stock units (RSUs) we grant are participating securities containing non-forfeitable rights to receive dividend equivalents. Under the two-class method, a portion of net income is allocated to RSUs and excluded from the calculation of income allocated to common stock.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Computation and reconciliation of earnings per common share are as follows:
 For Three Months Ended September 30,
 20232022
Net IncomeSharesEPSNet IncomeSharesEPS
Basic EPS:      
Net income$1,709   $2,295   
Income allocated to RSUs(9)  (11)  
Income allocated to common stock$1,700 908 $1.87 $2,284 913 $2.50 
Dilutive effect of stock compensation plans8  10 
Diluted EPS: 
Net income$1,709  $2,295 
Income allocated to RSUs(10) (11)
Income allocated to common stock$1,699 916 $1.85 $2,284 923 $2.47 
For Nine Months Ended September 30,
20232022
Net IncomeSharesEPSNet IncomeSharesEPS
Basic EPS:
Net income$5,139 $6,787 
Income allocated to RSUs(27)(30)
Income allocated to common stock$5,112 908 $5.63 $6,757 919 $7.35 
Dilutive effect of stock compensation plans8 10 
Diluted EPS:
Net income$5,139 $6,787 
Income allocated to RSUs(26)(30)
Income allocated to common stock$5,113 916 $5.58 $6,757 929 $7.27 
Potentially dilutive securities representing 9 million and 6 million shares of common stock that were outstanding during the third quarters of 2023 and 2022, respectively, and 9 million and 5 million shares outstanding during the first nine months of 2023 and 2022, respectively, were excluded from the computation of diluted earnings per common share during these periods because their effect would have been anti-dilutive.
Derivatives and hedging
We use derivative financial instruments to manage exposure to foreign exchange risk. These instruments are primarily forward foreign currency exchange contracts, which are used as economic hedges to reduce the earnings impact that exchange rate fluctuations may have on our non-U.S. dollar net balance sheet exposures. Gains and losses from changes in the fair value of these forward foreign currency exchange contracts are credited or charged to OI&E. We do not apply hedge accounting to our foreign currency derivative instruments.
We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees. We use total return swaps to economically hedge this exposure and offset the related compensation expense, recognizing changes in the value of the swaps and the related deferred compensation liabilities in SG&A.
In connection with the issuance of long-term debt, we may use financial derivatives such as treasury-rate lock agreements that are recognized in AOCI and amortized over the life of the related debt.
The results of these derivative transactions have not been material. We do not use derivatives for speculative or trading purposes.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Fair values of financial instruments
The fair values of our derivative financial instruments were not material as of September 30, 2023. Our investments in cash equivalents, short-term investments and certain long-term investments, as well as our deferred compensation liabilities, are carried at fair value. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. As of September 30, 2023, the carrying value of long-term debt, including the current portion, was $11.22 billion, and the estimated fair value was $9.82 billion. The estimated fair value is measured using broker-dealer quotes, which are Level 2 inputs. See Note 4 for a description of fair value and the definition of Level 2 inputs.
3. Income taxes
Provision for income taxes is based on the following:
For Three Months EndedFor Nine Months Ended
September 30,September 30,
 2023202220232022
Taxes calculated using the estimated annual effective tax rate$229 $391 $794 $1,147 
Discrete tax items(16)(28)(63)(69)
Provision for income taxes$213 $363 $731 $1,078 
Effective tax rate11 %14 %12 %14 %
The effective tax rate differs from the 21% U.S. statutory corporate tax rate due to the effect of U.S. tax benefits.
4. Valuation of debt and equity investments and certain liabilities
Investments measured at fair value
Money market funds, debt investments and mutual funds are stated at fair value, which is generally based on market prices or broker quotes. We classify all debt investments as available-for-sale. See Fair-value considerations. Unrealized gains and losses are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets, and any credit losses are recorded as an allowance for credit losses with an offset recognized in OI&E in our Consolidated Statements of Income.
Our mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A.
Other investments
Our other investments include equity-method investments and non-marketable investments, which are not measured at fair value. These investments consist of interests in venture capital funds and other non-marketable securities. Gains and losses from equity-method investments are recognized in OI&E based on our ownership share of the investee’s financial results.
Non-marketable securities are measured at cost with adjustments for observable changes in price or impairments. Gains and losses on non-marketable investments are recognized in OI&E.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Details of our investments are as follows:
 September 30, 2023December 31, 2022
Cash and Cash EquivalentsShort-Term InvestmentsLong-Term InvestmentsCash and Cash EquivalentsShort-Term InvestmentsLong-Term Investments
Measured at fair value:      
Money market funds$1,141 $ $ $1,238 $ $ 
Corporate obligations280 1,519  276 1,535  
U.S. government and agency securities398 4,467  680 4,234  
Non-U.S. government and agency securities100 396  149 248  
Mutual funds  11   11 
Total1,919 6,382 11 2,343 6,017 11 
Other measurement basis:
Equity-method investments  16   18 
Non-marketable investments  5   5 
Cash on hand647   707   
Total$2,566 $6,382 $32 $3,050 $6,017 $34 
As of September 30, 2023, and December 31, 2022, unrealized gains and losses associated with our debt investments were not material. We did not recognize any credit losses related to debt investments for the first nine months of 2023 and 2022.
The following table presents the aggregate maturities of our available-for-sale debt investments as of September 30, 2023:
Fair Value
One year or less$6,775 
One to two years385 
Proceeds from sales, redemptions and maturities of short-term available-for-sale investments were $2.89 billion and $3.03 billion for the third quarters of 2023 and 2022, respectively, and $9.98 billion and $10.01 billion for the first nine months of 2023 and 2022, respectively. Gross realized gains and losses from these sales were not material.
Fair-value considerations
We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
The three-level hierarchy described below indicates the extent and level of judgment used to estimate fair-value measurements.
Level 1 – Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Level 2 – Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets.
Level 3 – Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of September 30, 2023, and December 31, 2022, we had no Level 3 assets or liabilities.
The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value.
 September 30, 2023December 31, 2022
 Level 1Level 2TotalLevel 1Level 2Total
Assets:      
Money market funds$1,141 $ $1,141 $1,238 $ $1,238 
Corporate obligations 1,799 1,799  1,811 1,811 
U.S. government and agency securities4,161 704 4,865 4,914  4,914 
Non-U.S. government and agency securities 496 496  397 397 
Mutual funds11  11 11  11 
Total assets$5,313 $2,999 $8,312 $6,163 $2,208 $8,371 
Liabilities:
Deferred compensation$352 $ $352 $326 $ $326 
Total liabilities$352 $ $352 $326 $ $326 
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
5. Postretirement benefit plans
Expenses related to defined benefit and retiree health care benefit plans are as follows:
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
For Three Months Ended September 30,202320222023202220232022
Service cost$2 $4 $ $1 $4 $6 
Interest cost7 8 4 3 14 7 
Expected return on plan assets(6)(6)(4)(3)(16)(15)
Recognized net actuarial losses (gains)2 1 (1) 3 1 
Amortization of prior service cost (credit)   (1)1  
Net periodic benefit costs (credits)5 7 (1) 6 (1)
Settlement losses 16    1 
Total, including other postretirement losses (gains)$5 $23 $(1)$ $6 $ 
U.S. Defined BenefitU.S. Retiree Health CareNon-U.S. Defined Benefit
For Nine Months Ended September 30,202320222023202220232022
Service cost$6 $12 $1 $2 $12 $19 
Interest cost21 20 11 8 43 26 
Expected return on plan assets(17)(22)(13)(9)(48)(50)
Recognized net actuarial losses (gains)5 2 (4) 9 1 
Amortization of prior service cost (credit)   (1)1  
Net periodic benefit costs (credits)15 12 (5) 17 (4)
Settlement losses1 29   1 10 
Total, including other postretirement losses (gains)$16 $41 $(5)$ $18 $6 
6. Debt and lines of credit
Short-term borrowings
We maintain a line of credit to provide additional liquidity through bank loans and, if necessary, to support commercial paper borrowings. As of September 30, 2023, the aforementioned line of credit was a variable-rate, revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $1 billion until March 2024. The interest rate on borrowings under this credit facility, if drawn, is indexed to the applicable Term Secured Overnight Financing Rate (Term SOFR). As of September 30, 2023, our credit facility was undrawn, and we had no commercial paper outstanding.
Long-term debt
In May 2023, we issued three series of senior unsecured notes for an aggregate principal amount of $1.60 billion, consisting of:
$200 million further issuance of existing 4.60% notes due in 2028;
$200 million further issuance of existing 4.90% notes due in 2033; and
$1.20 billion of 5.05% notes due in 2063.
We incurred $7 million of issuance cost and other related costs. The proceeds of the offering were $1.60 billion, net of the original issuance discounts and premiums, which will be used for general corporate purposes.
In May 2023, we retired $500 million of maturing debt.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
In March 2023, we issued two series of senior unsecured notes for an aggregate principal amount of $1.40 billion, consisting of $750 million of 4.90% notes due in 2033 and $650 million of 5.00% notes due in 2053. We incurred $11 million of issuance and other related costs. The proceeds of the offering were $1.40 billion, net of the original issuance discounts, which will be used for general corporate purposes.
Long-term debt outstanding is as follows:
September 30,December 31,
20232022
Notes due 2023 at 2.25%
$ $500 
Notes due 2024 at 2.625%
300 300 
Notes due 2024 at 4.70%
300 300 
Notes due 2025 at 1.375%
750 750 
Notes due 2026 at 1.125%
500 500 
Notes due 2027 at 2.90%
500 500 
Notes due 2028 at 4.60%
700 500 
Notes due 2029 at 2.25%
750 750 
Notes due 2030 at 1.75%
750 750 
Notes due 2031 at 1.90%
500 500 
Notes due 2032 at 3.65%
400 400 
Notes due 2033 at 4.90%
950  
Notes due 2039 at 3.875%
750 750 
Notes due 2048 at 4.15%
1,500 1,500 
Notes due 2051 at 2.70%
500 500 
Notes due 2052 at 4.10%
300 300 
Notes due 2053 at 5.00%
650  
Notes due 2063 at 5.05%
1,200  
Total debt11,300 8,800 
Net unamortized discounts, premiums and issuance costs(78)(65)
Total debt, including net unamortized discounts, premiums and issuance costs11,222 8,735 
Current portion of long-term debt(300)(500)
Long-term debt$10,922 $8,235 
Interest and debt expense was $98 million and $53 million for the third quarters of 2023 and 2022, respectively, and $255 million and $154 million for the first nine months of 2023 and 2022, respectively. This was net of the amortized discounts, premiums, issuance and other related costs. Capitalized interest was not material.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
7. Stockholders’ equity
Changes in equity are as follows:
Common StockPaid-in CapitalRetained EarningsTreasury Common StockAOCI
Balance, December 31, 2022$1,741 $2,951 $50,353 $(40,214)$(254)
2023
Net income— — 1,708 — — 
Dividends declared and paid ($1.24 per share)
— — (1,125)— — 
Common stock issued for stock-based awards— (37)— 118 — 
Stock repurchases— — — (96)— 
Stock compensation— 104 — — — 
Other comprehensive income (loss), net of taxes— — — — 2 
Dividend equivalents on RSUs— — (6)— — 
Other— (2)— — — 
Balance, March 31, 20231,741 3,016 50,930 (40,192)(252)
Net income— — 1,722 — — 
Dividends declared and paid ($1.24 per share)
— — (1,125)— — 
Common stock issued for stock-based awards— 36 — 29 — 
Stock repurchases— — — (77)— 
Stock compensation— 111 — — — 
Other comprehensive income (loss), net of taxes— — — — 6 
Dividend equivalents on RSUs— — (5)— — 
Balance, June 30, 20231,741 3,163 51,522 (40,240)(246)
Net income  1,709   
Dividends declared and paid ($1.24 per share)
  (1,126)  
Common stock issued for stock-based awards 38  35  
Stock repurchases   (48) 
Stock compensation 79    
Other comprehensive income (loss), net of taxes    11 
Dividend equivalents on RSUs  (6)  
Other  (1)  
Balance, September 30, 2023$1,741 $3,280 $52,098 $(40,253)$(235)
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Common StockPaid-in CapitalRetained EarningsTreasury Common StockAOCI
Balance, December 31, 2021$1,741 $2,630 $45,919 $(36,800)$(157)
2022
Net income— — 2,201 — — 
Dividends declared and paid ($1.15 per share)
— — (1,063)— — 
Common stock issued for stock-based awards— (36)— 93 — 
Stock repurchases— — — (584)— 
Stock compensation— 74 — — — 
Other comprehensive income (loss), net of taxes— — — — 4 
Dividend equivalents on RSUs— — (5)— — 
Other— (1)1 — — 
Balance, March 31, 20221,741 2,667 47,053 (37,291)(153)
Net income— — 2,291 — — 
Dividends declared and paid ($1.15 per share)
— — (1,060)— — 
Common stock issued for stock-based awards— 31 — 25 — 
Stock repurchases— — — (1,266)— 
Stock compensation— 85 — — — 
Other comprehensive income (loss), net of taxes— — — — (27)
Dividend equivalents on RSUs— — (4)— — 
Balance, June 30, 20221,741 2,783 48,280 (38,532)(180)
Net income— — 2,295 — — 
Dividends declared and paid ($1.15 per share)
— — (1,051)— — 
Common stock issued for stock-based awards— 26 — 52 — 
Stock repurchases— — — (996)— 
Stock compensation— 68 — — — 
Other comprehensive income (loss), net of taxes— — — — 26 
Dividend equivalents on RSUs— — (5)— — 
Balance, September 30, 2022$1,741 $2,877 $49,519 $(39,476)$(154)
8. Contingencies
Indemnification guarantees
We routinely sell products with an intellectual property indemnification included in the terms of sale. Historically, we have had only minimal, infrequent losses associated with these indemnities. Consequently, we cannot reasonably estimate any future liabilities that may result.
Warranty costs/product liabilities
Our stated warranties for semiconductor products obligate us to repair, replace or credit the purchase price of a covered product back to the buyer. Product claim consideration may exceed the price of our products. Historically, we have experienced a low rate of payments on product claims. Although we cannot predict the likelihood or amount of any future claims, we do not believe they will have a material adverse effect on our consolidated financial statements. We accrue for known product-related claims if a loss is probable and can be reasonably estimated. During the periods presented, there have been no material accruals or payments regarding product warranty or product liability.
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TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
General
We are subject to various legal and administrative proceedings. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our consolidated financial statements.
9. Supplemental financial information
Restructuring charges/other
During the third quarter and first nine months of 2022, restructuring charges/other included $77 million and $209 million, respectively, of preproduction costs at our Lehi, Utah, manufacturing facility, which were included in Other for segment reporting purposes. These costs transitioned primaril