0000097476 --12-31 Yes Large Accelerated Filer false false Q2 false false 750289970 750289970 P8Y P7Y P10Y country:US country:US country:US country:US 0000097476 2019-01-01 2019-06-30 xbrli:shares 0000097476 2019-07-24 iso4217:USD 0000097476 2019-04-01 2019-06-30 0000097476 2018-04-01 2018-06-30 0000097476 2018-01-01 2018-06-30 iso4217:USD xbrli:shares 0000097476 2019-06-30 0000097476 2018-12-31 0000097476 2017-12-31 0000097476 2018-06-30 txn:Reportable_Segments 0000097476 txn:AnalogMember 2019-04-01 2019-06-30 0000097476 txn:AnalogMember 2018-04-01 2018-06-30 0000097476 txn:AnalogMember 2019-01-01 2019-06-30 0000097476 txn:AnalogMember 2018-01-01 2018-06-30 0000097476 txn:EmbeddedProcessingMember 2019-04-01 2019-06-30 0000097476 txn:EmbeddedProcessingMember 2018-04-01 2018-06-30 0000097476 txn:EmbeddedProcessingMember 2019-01-01 2019-06-30 0000097476 txn:EmbeddedProcessingMember 2018-01-01 2018-06-30 0000097476 us-gaap:AllOtherSegmentsMember 2019-04-01 2019-06-30 0000097476 us-gaap:AllOtherSegmentsMember 2018-04-01 2018-06-30 0000097476 us-gaap:AllOtherSegmentsMember 2019-01-01 2019-06-30 0000097476 us-gaap:AllOtherSegmentsMember 2018-01-01 2018-06-30 0000097476 country:US 2019-04-01 2019-06-30 0000097476 country:US 2018-04-01 2018-06-30 0000097476 country:US 2019-01-01 2019-06-30 0000097476 country:US 2018-01-01 2018-06-30 0000097476 srt:AsiaMember 2019-04-01 2019-06-30 0000097476 srt:AsiaMember 2018-04-01 2018-06-30 0000097476 srt:AsiaMember 2019-01-01 2019-06-30 0000097476 srt:AsiaMember 2018-01-01 2018-06-30 0000097476 us-gaap:EMEAMember 2019-04-01 2019-06-30 0000097476 us-gaap:EMEAMember 2018-04-01 2018-06-30 0000097476 us-gaap:EMEAMember 2019-01-01 2019-06-30 0000097476 us-gaap:EMEAMember 2018-01-01 2018-06-30 0000097476 country:JP 2019-04-01 2019-06-30 0000097476 country:JP 2018-04-01 2018-06-30 0000097476 country:JP 2019-01-01 2019-06-30 0000097476 country:JP 2018-01-01 2018-06-30 0000097476 txn:RestOfWorldMember 2019-04-01 2019-06-30 0000097476 txn:RestOfWorldMember 2018-04-01 2018-06-30 0000097476 txn:RestOfWorldMember 2019-01-01 2019-06-30 0000097476 txn:RestOfWorldMember 2018-01-01 2018-06-30 0000097476 country:CN 2019-04-01 2019-06-30 0000097476 country:CN 2019-01-01 2019-06-30 0000097476 country:CN 2018-04-01 2018-06-30 0000097476 country:CN 2018-01-01 2018-06-30 0000097476 us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 xbrli:pure 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:MutualFundMember txn:TradingSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:EquityMethodInvestmentsMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember 2019-06-30 0000097476 txn:NonMarketableEquityInvestmentsMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:CashMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember 2019-06-30 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:MutualFundMember txn:TradingSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:EquityMethodInvestmentsMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember 2018-12-31 0000097476 txn:NonMarketableEquityInvestmentsMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:CashMember us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMember 2018-12-31 0000097476 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2019-06-30 0000097476 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2018-12-31 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000097476 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000097476 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000097476 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000097476 us-gaap:MutualFundMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0000097476 us-gaap:MutualFundMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 us-gaap:MutualFundMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000097476 us-gaap:MutualFundMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000097476 us-gaap:MutualFundMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000097476 us-gaap:MutualFundMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000097476 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0000097476 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000097476 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000097476 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000097476 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000097476 txn:DeferredCompensationMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2019-06-30 0000097476 txn:DeferredCompensationMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000097476 txn:DeferredCompensationMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000097476 txn:DeferredCompensationMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000097476 txn:DeferredCompensationMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2018-12-31 0000097476 txn:DeferredCompensationMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000097476 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0000097476 us-gaap:DevelopedTechnologyRightsMember srt:MinimumMember 2019-01-01 2019-06-30 0000097476 us-gaap:DevelopedTechnologyRightsMember srt:MaximumMember 2019-01-01 2019-06-30 0000097476 us-gaap:DevelopedTechnologyRightsMember 2019-06-30 0000097476 us-gaap:CustomerRelationshipsMember 2019-06-30 0000097476 us-gaap:DevelopedTechnologyRightsMember 2018-12-31 0000097476 us-gaap:CustomerRelationshipsMember 2018-12-31 0000097476 us-gaap:PensionPlansDefinedBenefitMember country:US 2019-04-01 2019-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember country:US 2018-04-01 2018-06-30 0000097476 us-gaap:DefinedBenefitPostretirementHealthCoverageMember country:US 2019-04-01 2019-06-30 0000097476 us-gaap:DefinedBenefitPostretirementHealthCoverageMember country:US 2018-04-01 2018-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2019-04-01 2019-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2018-04-01 2018-06-30 0000097476 us-gaap:DefinedBenefitPostretirementHealthCoverageMember country:US 2019-06-30 0000097476 us-gaap:DefinedBenefitPostretirementHealthCoverageMember country:US 2018-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember country:US 2019-01-01 2019-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember country:US 2018-01-01 2018-06-30 0000097476 us-gaap:DefinedBenefitPostretirementHealthCoverageMember country:US 2019-01-01 2019-06-30 0000097476 us-gaap:DefinedBenefitPostretirementHealthCoverageMember country:US 2018-01-01 2018-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2019-01-01 2019-06-30 0000097476 us-gaap:PensionPlansDefinedBenefitMember us-gaap:ForeignPlanMember 2018-01-01 2018-06-30 0000097476 us-gaap:RevolvingCreditFacilityMember 2019-06-30 0000097476 txn:FixedThreePointEightSevenFivePercentNotesDueTwoThousandAndThirtyNineMember 2019-03-31 0000097476 txn:FixedThreePointEightSevenFivePercentNotesDueTwoThousandAndThirtyNineMember 2019-01-01 2019-03-31 0000097476 txn:FixedOnePointSixFivePercentNotesDueTwoThousandAndNineteenMember 2019-06-30 0000097476 txn:FixedOnePointSixFivePercentNotesDueTwoThousandAndNineteenMember 2018-12-31 0000097476 txn:FixedOnePointSevenFivePercentNotesDueTwoThousandAndTwentyMember 2019-06-30 0000097476 txn:FixedOnePointSevenFivePercentNotesDueTwoThousandAndTwentyMember 2018-12-31 0000097476 txn:FixedTwoPointSevenFivePercentNotesDueTwoThousandAndTwentyOneMember 2019-06-30 0000097476 txn:FixedTwoPointSevenFivePercentNotesDueTwoThousandAndTwentyOneMember 2018-12-31 0000097476 txn:FixedOnePointEightFivePercentNotesDueTwoThousandAndTwentyTwoMember 2019-06-30 0000097476 txn:FixedOnePointEightFivePercentNotesDueTwoThousandAndTwentyTwoMember 2018-12-31 0000097476 txn:FixedTwoPointTwoFivePercentNotesDueTwoThousandAndTwentyThreeMember 2019-06-30 0000097476 txn:FixedTwoPointTwoFivePercentNotesDueTwoThousandAndTwentyThreeMember 2018-12-31 0000097476 txn:FixedTwoPointSixTwoFivePercentNotesDueTwoThousandAndTwentyFourMember 2019-06-30 0000097476 txn:FixedTwoPointSixTwoFivePercentNotesDueTwoThousandAndTwentyFourMember 2018-12-31 0000097476 txn:FixedTwoPointNineZeroPercentNotesDueTwoThousandAndTwentySevenMember 2019-06-30 0000097476 txn:FixedTwoPointNineZeroPercentNotesDueTwoThousandAndTwentySevenMember 2018-12-31 0000097476 txn:FixedThreePointEightSevenFivePercentNotesDueTwoThousandAndThirtyNineMember 2019-06-30 0000097476 txn:FixedThreePointEightSevenFivePercentNotesDueTwoThousandAndThirtyNineMember 2018-12-31 0000097476 txn:FixedFourPointOneFivePercentNotesDueTwoThousandAndFortyEightMember 2019-06-30 0000097476 txn:FixedFourPointOneFivePercentNotesDueTwoThousandAndFortyEightMember 2018-12-31 0000097476 us-gaap:CommonStockMember 2018-12-31 0000097476 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000097476 us-gaap:RetainedEarningsMember 2018-12-31 0000097476 us-gaap:TreasuryStockMember 2018-12-31 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000097476 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000097476 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000097476 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000097476 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000097476 us-gaap:CommonStockMember 2019-03-31 0000097476 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000097476 us-gaap:RetainedEarningsMember 2019-03-31 0000097476 us-gaap:TreasuryStockMember 2019-03-31 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000097476 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000097476 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000097476 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000097476 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000097476 us-gaap:CommonStockMember 2019-06-30 0000097476 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000097476 us-gaap:RetainedEarningsMember 2019-06-30 0000097476 us-gaap:TreasuryStockMember 2019-06-30 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000097476 2019-01-01 2019-03-31 0000097476 2018-01-01 2018-03-31 0000097476 us-gaap:CommonStockMember 2017-12-31 0000097476 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000097476 us-gaap:RetainedEarningsMember 2017-12-31 0000097476 us-gaap:TreasuryStockMember 2017-12-31 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000097476 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0000097476 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000097476 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000097476 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000097476 us-gaap:CommonStockMember 2018-03-31 0000097476 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000097476 us-gaap:RetainedEarningsMember 2018-03-31 0000097476 us-gaap:TreasuryStockMember 2018-03-31 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000097476 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000097476 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000097476 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000097476 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000097476 us-gaap:CommonStockMember 2018-06-30 0000097476 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000097476 us-gaap:RetainedEarningsMember 2018-06-30 0000097476 us-gaap:TreasuryStockMember 2018-06-30 0000097476 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-04-01 2019-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-04-01 2018-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-01-01 2018-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-04-01 2019-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-04-01 2018-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-06-30 0000097476 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-01-01 2018-06-30

 

 

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 June 30, 2019

 

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)

 

 

 

 

 

Delaware

75-0289970

(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 class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00

TXN

The 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 filer

 

Accelerated filer

Non-accelerated filer

 

Smaller 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  

933,619,937

Number of shares of Registrant’s common stock outstanding as of

July 24, 2019

 


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

 

PART I - FINANCIAL INFORMATION

ITEM 1. Financial statements

 

 

For Three Months Ended

 

 

For Six Months Ended

 

Consolidated Statements of Income

 

June 30,

 

 

June 30,

 

(Millions of dollars, except share and per-share amounts)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

$

 

3,668

 

 

$

 

4,017

 

 

$

 

7,262

 

 

$

 

7,806

 

Cost of revenue (COR)

 

 

 

1,308

 

 

 

 

1,398

 

 

 

 

2,641

 

 

 

 

2,740

 

Gross profit

 

 

 

2,360

 

 

 

 

2,619

 

 

 

 

4,621

 

 

 

 

5,066

 

Research and development (R&D)

 

 

 

390

 

 

 

 

384

 

 

 

 

779

 

 

 

 

769

 

Selling, general and administrative (SG&A)

 

 

 

420

 

 

 

 

441

 

 

 

 

834

 

 

 

 

874

 

Acquisition charges

 

 

 

80

 

 

 

 

79

 

 

 

 

159

 

 

 

 

159

 

Restructuring charges/other

 

 

 

(36

)

 

 

 

3

 

 

 

 

(36

)

 

 

 

4

 

Operating profit

 

 

 

1,506

 

 

 

 

1,712

 

 

 

 

2,885

 

 

 

 

3,260

 

Other income (expense), net (OI&E)

 

 

 

52

 

 

 

 

24

 

 

 

 

88

 

 

 

 

52

 

Interest and debt expense

 

 

 

44

 

 

 

 

30

 

 

 

 

82

 

 

 

 

53

 

Income before income taxes

 

 

 

1,514

 

 

 

 

1,706

 

 

 

 

2,891

 

 

 

 

3,259

 

Provision for income taxes

 

 

 

209

 

 

 

 

301

 

 

 

 

369

 

 

 

 

488

 

Net income

 

$

 

1,305

 

 

$

 

1,405

 

 

$

 

2,522

 

 

$

 

2,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (EPS):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

1.38

 

 

$

 

1.43

 

 

$

 

2.67

 

 

$

 

2.80

 

Diluted

 

$

 

1.36

 

 

$

 

1.40

 

 

$

 

2.63

 

 

$

 

2.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

937

 

 

 

 

977

 

 

 

 

938

 

 

 

 

980

 

Diluted

 

 

 

953

 

 

 

 

997

 

 

 

 

954

 

 

 

 

1,001

 

 

 

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

 

$

 

1,305

 

 

$

 

1,405

 

 

$

 

2,522

 

 

$

 

2,771

 

Income allocated to RSUs

 

 

 

(8

)

 

 

 

(11

)

 

 

 

(16

)

 

 

 

(22

)

Income allocated to common stock for diluted EPS

 

$

 

1,297

 

 

$

 

1,394

 

 

$

 

2,506

 

 

$

 

2,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

 

 

 

For Three Months Ended

 

 

For Six Months Ended

 

Consolidated Statements of Comprehensive Income

 

June 30,

 

 

June 30,

 

(Millions of dollars)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

 

1,305

 

 

$

 

1,405

 

 

$

 

2,522

 

 

$

 

2,771

 

Other comprehensive income (loss), net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial losses of defined benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

(3

)

 

 

 

15

 

 

 

 

(5

)

 

 

 

(1

)

Recognized within net income

 

 

 

11

 

 

 

 

9

 

 

 

 

21

 

 

 

 

18

 

Prior service credit of defined benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognized within net income

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

(2

)

Derivative instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

(2

)

Other comprehensive income (loss)

 

 

 

8

 

 

 

 

21

 

 

 

 

16

 

 

 

 

13

 

Total comprehensive income

 

$

 

1,313

 

 

$

 

1,426

 

 

$

 

2,538

 

 

$

 

2,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

 

June 30,

 

 

December 31,

 

Consolidated Balance Sheets

 

2019

 

 

2018

 

(Millions of dollars, except share amounts)

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

3,813

 

 

$

 

2,438

 

Short-term investments

 

 

 

405

 

 

 

 

1,795

 

Accounts receivable, net of allowances of ($15) and ($19)

 

 

 

1,419

 

 

 

 

1,207

 

Raw materials

 

 

 

176

 

 

 

 

181

 

Work in process

 

 

 

958

 

 

 

 

1,070

 

Finished goods

 

 

 

945

 

 

 

 

966

 

Inventories

 

 

 

2,079

 

 

 

 

2,217

 

Prepaid expenses and other current assets

 

 

 

240

 

 

 

 

440

 

Total current assets

 

 

 

7,956

 

 

 

 

8,097

 

Property, plant and equipment at cost

 

 

 

5,706

 

 

 

 

5,425

 

Accumulated depreciation

 

 

 

(2,341

)

 

 

 

(2,242

)

Property, plant and equipment

 

 

 

3,365

 

 

 

 

3,183

 

Long-term investments

 

 

 

300

 

 

 

 

251

 

Goodwill

 

 

 

4,362

 

 

 

 

4,362

 

Acquisition-related intangibles

 

 

 

469

 

 

 

 

628

 

Deferred tax assets

 

 

 

261

 

 

 

 

295

 

Capitalized software licenses

 

 

 

88

 

 

 

 

89

 

Overfunded retirement plans

 

 

 

104

 

 

 

 

92

 

Other long-term assets

 

 

 

479

 

 

 

 

140

 

Total assets

 

$

 

17,384

 

 

$

 

17,137

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

 

1,249

 

 

$

 

749

 

Accounts payable

 

 

 

412

 

 

 

 

478

 

Accrued compensation

 

 

 

476

 

 

 

 

724

 

Income taxes payable

 

 

 

87

 

 

 

 

103

 

Accrued expenses and other liabilities

 

 

 

422

 

 

 

 

420

 

Total current liabilities

 

 

 

2,646

 

 

 

 

2,474

 

Long-term debt

 

 

 

4,558

 

 

 

 

4,319

 

Underfunded retirement plans

 

 

 

121

 

 

 

 

118

 

Deferred tax liabilities

 

 

 

49

 

 

 

 

42

 

Other long-term liabilities

 

 

 

1,524

 

 

 

 

1,190

 

Total liabilities

 

 

 

8,898

 

 

 

 

8,143

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock, $25 par value. Authorized – 10,000,000 shares

 

 

 

 

 

 

 

 

 

 

Participating cumulative preferred – None issued

 

 

 

 

 

 

 

 

Common stock, $1 par value. Authorized – 2,400,000,000 shares

 

 

 

 

 

 

 

 

 

 

Shares issued – 1,740,815,939

 

 

 

1,741

 

 

 

 

1,741

 

Paid-in capital

 

 

 

2,003

 

 

 

 

1,950

 

Retained earnings

 

 

 

38,974

 

 

 

 

37,906

 

Treasury common stock at cost

 

 

 

 

 

 

 

 

 

 

Shares: June 30, 2019 – 806,251,136; December 31, 2018 – 795,665,646

 

 

 

(33,775

)

 

 

 

(32,130

)

Accumulated other comprehensive income (loss), net of taxes (AOCI)

 

 

 

(457

)

 

 

 

(473

)

Total stockholders’ equity

 

 

 

8,486

 

 

 

 

8,994

 

Total liabilities and stockholders’ equity

 

$

 

17,384

 

 

$

 

17,137

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

4


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

 

 

For Six Months Ended

 

Consolidated Statements of Cash Flows

 

June 30,

 

(Millions of dollars)

 

2019

 

 

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 

2,522

 

 

$

 

2,771

 

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

339

 

 

 

 

281

 

Amortization of acquisition-related intangibles

 

 

 

159

 

 

 

 

159

 

Amortization of capitalized software

 

 

 

27

 

 

 

 

22

 

Stock compensation

 

 

 

128

 

 

 

 

144

 

Gains on sales of assets

 

 

 

(23

)

 

 

 

 

Deferred taxes

 

 

 

35

 

 

 

 

(30

)

Increase (decrease) from changes in:

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

(212

)

 

 

 

(273

)

Inventories

 

 

 

138

 

 

 

 

(155

)

Prepaid expenses and other current assets

 

 

 

241

 

 

 

 

417

 

Accounts payable and accrued expenses

 

 

 

(93

)

 

 

 

(45

)

Accrued compensation

 

 

 

(244

)

 

 

 

(249

)

Income taxes payable

 

 

 

(107

)

 

 

 

(11

)

Changes in funded status of retirement plans

 

 

 

9

 

 

 

 

14

 

Other

 

 

 

(16

)

 

 

 

(107

)

Cash flows from operating activities

 

 

 

2,903

 

 

 

 

2,938

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

(535

)

 

 

 

(438

)

Proceeds from asset sales

 

 

 

30

 

 

 

 

 

Purchases of short-term investments

 

 

 

(388

)

 

 

 

(2,209

)

Proceeds from short-term investments

 

 

 

1,784

 

 

 

 

2,830

 

Other

 

 

 

24

 

 

 

 

2

 

Cash flows from investing activities

 

 

 

915

 

 

 

 

185

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of long-term debt

 

 

 

743

 

 

 

 

1,500

 

Repayment of debt

 

 

 

 

 

 

 

(500

)

Dividends paid

 

 

 

(1,446

)

 

 

 

(1,217

)

Stock repurchases

 

 

 

(2,015

)

 

 

 

(1,891

)

Proceeds from common stock transactions

 

 

 

297

 

 

 

 

280

 

Other

 

 

 

(22

)

 

 

 

(32

)

Cash flows from financing activities

 

 

 

(2,443

)

 

 

 

(1,860

)

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

 

1,375

 

 

 

 

1,263

 

Cash and cash equivalents at beginning of period

 

 

 

2,438

 

 

 

 

1,656

 

Cash and cash equivalents at end of period

 

$

 

3,813

 

 

$

 

2,919

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

5


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

Notes to financial statements

1. Description of business, including segment and geographic area information

We design, make and sell semiconductors to electronics designers and manufacturers all over the world. We have two reportable segments, which are established along major categories of products as follows:

 

Analog – consisting of the following product lines: Power, Signal Chain and High Volume.

 

Embedded Processing – consisting of the following product lines: Connected Microcontrollers and Processors.

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 Ended

 

 

For Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analog

$

 

2,534

 

 

$

 

2,690

 

 

$

 

5,052

 

 

$

 

5,256

 

Embedded Processing

 

 

790

 

 

 

 

943

 

 

 

 

1,586

 

 

 

 

1,869

 

Other

 

 

344

 

 

 

 

384

 

 

 

 

624