(State or other jurisdiction of incorporation) | (Commission file number) | (I.R.S. employer identification no.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Designation of Exhibit in this Report | Description of Exhibit | |||||||
99 | ||||||||
Dated April 23, 2024 (furnished pursuant to Item 2.02) | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
TEXAS INSTRUMENTS INCORPORATED | ||||||||||||||
Date: April 23, 2024 | By: | /s/ Rafael R. Lizardi | ||||||||||||
Rafael R. Lizardi | ||||||||||||||
Senior Vice President and | ||||||||||||||
Chief Financial Officer |
(In millions, except per-share amounts) | Q1 2024 | Q1 2023 | Change | ||||||||||||||
Revenue | $ | 3,661 | $ | 4,379 | (16) | % | |||||||||||
Operating profit | $ | 1,286 | $ | 1,934 | (34) | % | |||||||||||
Net income | $ | 1,105 | $ | 1,708 | (35) | % | |||||||||||
Earnings per share | $ | 1.20 | $ | 1.85 | (35) | % |
Trailing 12 Months | |||||||||||||||||||||||
(In millions) | Q1 2024 | Q1 2024 | Q1 2023 | Change | |||||||||||||||||||
Cash flow from operations | $ | 1,017 | $ | 6,277 | $ | 7,736 | (19) | % | |||||||||||||||
Capital expenditures | $ | 1,248 | $ | 5,337 | $ | 3,336 | 60 | % | |||||||||||||||
Free cash flow | $ | (231) | $ | 940 | $ | 4,400 | (79) | % | |||||||||||||||
Free cash flow % of revenue | 5.6 | % | 22.6 | % |
Trailing 12 Months | |||||||||||||||||||||||
(In millions) | Q1 2024 | Q1 2024 | Q1 2023 | Change | |||||||||||||||||||
Dividends paid | $ | 1,183 | $ | 4,615 | $ | 4,359 | 6 | % | |||||||||||||||
Stock repurchases | $ | 3 | $ | 193 | $ | 3,129 | (94) | % | |||||||||||||||
Total cash returned | $ | 1,186 | $ | 4,808 | $ | 7,488 | (36) | % |
Consolidated Statements of Income | For Three Months Ended March 31, | |||||||||||||
(In millions, except per-share amounts) | 2024 | 2023 | ||||||||||||
Revenue | $ | 3,661 | $ | 4,379 | ||||||||||
Cost of revenue (COR) | 1,566 | 1,516 | ||||||||||||
Gross profit | 2,095 | 2,863 | ||||||||||||
Research and development (R&D) | 478 | 455 | ||||||||||||
Selling, general and administrative (SG&A) | 455 | 474 | ||||||||||||
Restructuring charges/other | (124) | — | ||||||||||||
Operating profit | 1,286 | 1,934 | ||||||||||||
Other income (expense), net (OI&E) | 123 | 80 | ||||||||||||
Interest and debt expense | 116 | 68 | ||||||||||||
Income before income taxes | 1,293 | 1,946 | ||||||||||||
Provision for income taxes | 188 | 238 | ||||||||||||
Net income | $ | 1,105 | $ | 1,708 | ||||||||||
Diluted earnings per common share | $ | 1.20 | $ | 1.85 | ||||||||||
Average shares outstanding: | ||||||||||||||
Basic | 910 | 907 | ||||||||||||
Diluted | 917 | 916 | ||||||||||||
Cash dividends declared per common share | $ | 1.30 | $ | 1.24 | ||||||||||
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) | $ | 176 | $ | 276 | ||||||||||
Discrete tax items | 12 | (38) | ||||||||||||
Provision for income taxes (effective taxes) | $ | 188 | $ | 238 | ||||||||||
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 | $ | 1,105 | $ | 1,708 | ||||||||||
Income allocated to RSUs | (5) | (9) | ||||||||||||
Income allocated to common stock for diluted EPS | $ | 1,100 | $ | 1,699 |
Consolidated Balance Sheets | March 31, | |||||||||||||
(In millions, except par value) | 2024 | 2023 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 2,483 | $ | 4,477 | ||||||||||
Short-term investments | 7,910 | 5,068 | ||||||||||||
Accounts receivable, net of allowances of ($20) and ($13) | 1,671 | 1,877 | ||||||||||||
Raw materials | 417 | 378 | ||||||||||||
Work in process | 2,129 | 1,850 | ||||||||||||
Finished goods | 1,537 | 1,060 | ||||||||||||
Inventories | 4,083 | 3,288 | ||||||||||||
Prepaid expenses and other current assets | 1,301 | 313 | ||||||||||||
Total current assets | 17,448 | 15,023 | ||||||||||||
Property, plant and equipment at cost | 13,739 | 10,791 | ||||||||||||
Accumulated depreciation | (3,297) | (3,126) | ||||||||||||
Property, plant and equipment | 10,442 | 7,665 | ||||||||||||
Goodwill | 4,362 | 4,362 | ||||||||||||
Deferred tax assets | 821 | 486 | ||||||||||||
Capitalized software licenses | 231 | 140 | ||||||||||||
Overfunded retirement plans | 169 | 189 | ||||||||||||
Other long-term assets | 1,412 | 1,355 | ||||||||||||
Total assets | $ | 34,885 | $ | 29,220 | ||||||||||
Liabilities and stockholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | 1,349 | $ | 500 | ||||||||||
Accounts payable | 551 | 952 | ||||||||||||
Accrued compensation | 399 | 394 | ||||||||||||
Income taxes payable | 378 | 372 | ||||||||||||
Accrued expenses and other liabilities | 876 | 686 | ||||||||||||
Total current liabilities | 3,553 | 2,904 | ||||||||||||
Long-term debt | 12,840 | 9,626 | ||||||||||||
Underfunded retirement plans | 111 | 123 | ||||||||||||
Deferred tax liabilities | 55 | 73 | ||||||||||||
Other long-term liabilities | 1,343 | 1,251 | ||||||||||||
Total liabilities | 17,902 | 13,977 | ||||||||||||
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 capital | 3,439 | 3,016 | ||||||||||||
Retained earnings | 52,199 | 50,930 | ||||||||||||
Treasury common stock at cost | ||||||||||||||
Shares: March 31, 2024 – 831; March 31, 2023 – 833 | (40,193) | (40,192) | ||||||||||||
Accumulated other comprehensive income (loss), net of taxes (AOCI) | (203) | (252) | ||||||||||||
Total stockholders' equity | 16,983 | 15,243 | ||||||||||||
Total liabilities and stockholders' equity | $ | 34,885 | $ | 29,220 |
Consolidated Statements of Cash Flows | For Three Months Ended March 31, | |||||||||||||
(In millions) | 2024 | 2023 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 1,105 | $ | 1,708 | ||||||||||
Adjustments to net income: | ||||||||||||||
Depreciation | 346 | 265 | ||||||||||||
Amortization of capitalized software | 16 | 16 | ||||||||||||
Stock compensation | 106 | 104 | ||||||||||||
Gains on sales of assets | (129) | — | ||||||||||||
Deferred taxes | (71) | (8) | ||||||||||||
Increase (decrease) from changes in: | ||||||||||||||
Accounts receivable | 116 | 18 | ||||||||||||
Inventories | (84) | (531) | ||||||||||||
Prepaid expenses and other current assets | (24) | (4) | ||||||||||||
Accounts payable and accrued expenses | (77) | (124) | ||||||||||||
Accrued compensation | (444) | (407) | ||||||||||||
Income taxes payable | 212 | 185 | ||||||||||||
Changes in funded status of retirement plans | 17 | 6 | ||||||||||||
Other | (72) | (68) | ||||||||||||
Cash flows from operating activities | 1,017 | 1,160 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Capital expenditures | (1,248) | (982) | ||||||||||||
Proceeds from asset sales | 192 | 1 | ||||||||||||
Purchases of short-term investments | (4,864) | (3,013) | ||||||||||||
Proceeds from short-term investments | 2,631 | 4,026 | ||||||||||||
Other | (40) | (4) | ||||||||||||
Cash flows from investing activities | (3,329) | 28 | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance of long-term debt | 2,980 | 1,397 | ||||||||||||
Dividends paid | (1,183) | (1,125) | ||||||||||||
Stock repurchases | (3) | (103) | ||||||||||||
Proceeds from common stock transactions | 65 | 85 | ||||||||||||
Other | (28) | (15) | ||||||||||||
Cash flows from financing activities | 1,831 | 239 | ||||||||||||
Net change in cash and cash equivalents | (481) | 1,427 | ||||||||||||
Cash and cash equivalents at beginning of period | 2,964 | 3,050 | ||||||||||||
Cash and cash equivalents at end of period | $ | 2,483 | $ | 4,477 |
(In millions) | Q1 2024 | Q1 2023 | Change | ||||||||||||||
Analog: | |||||||||||||||||
Revenue | $ | 2,836 | $ | 3,289 | (14) | % | |||||||||||
Operating profit | $ | 1,008 | $ | 1,574 | (36) | % | |||||||||||
Embedded Processing: | |||||||||||||||||
Revenue | $ | 652 | $ | 832 | (22) | % | |||||||||||
Operating profit | $ | 105 | $ | 237 | (56) | % | |||||||||||
Other: | |||||||||||||||||
Revenue | $ | 173 | $ | 258 | (33) | % | |||||||||||
Operating profit* | $ | 173 | $ | 123 | 41 | % |
For 12 Months Ended March 31, | |||||||||||||||||
(In millions) | 2024 | 2023 | Change | ||||||||||||||
Cash flow from operations (GAAP) | $ | 6,277 | $ | 7,736 | (19) | % | |||||||||||
Capital expenditures | (5,337) | (3,336) | |||||||||||||||
Free cash flow (non-GAAP) | $ | 940 | $ | 4,400 | (79) | % | |||||||||||
Revenue | $ | 16,801 | $ | 19,502 | |||||||||||||
Cash flow from operations as a percentage of revenue (GAAP) | 37.4 | % | 39.7 | % | |||||||||||||
Free cash flow as a percentage of revenue (non-GAAP) | 5.6 | % | 22.6 | % |
Cover |
Apr. 23, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 23, 2024 |
Entity Registrant Name | TEXAS INSTRUMENTS INCORPORATED |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-03761 |
Entity Tax Identification Number | 75-0289970 |
Entity Address, Address Line One | 12500 TI Boulevard |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75243 |
City Area Code | 214 |
Local Phone Number | 479-3773 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $1.00 |
Trading Symbol | TXN |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0000097476 |
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