TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

September 30,

2019

2018

Cash flows from operating activities

Net income

$

1,425

$

1,570

Adjustments to net income:

Depreciation

183

151

Amortization of acquisition-related intangibles

79

80

Amortization of capitalized software

13

12

Stock compensation

48

46

Deferred taxes

(4)

(52)

Increase (decrease) from changes in:

Accounts receivable

77

(34)

Inventories

39

(26)

Prepaid expenses and other current assets

44

151

Accounts payable and accrued expenses

29

51

Accrued compensation

129

137

Income taxes payable

(93)

22

Changes in funded status of retirement plans

17

12

Other

6

(14)

Cash flows from operating activities

1,992

2,106

Cash flows from investing activities

Capital expenditures

(149)

(370)

Purchases of short-term investments

(986)

(3,099)

Proceeds from short-term investments

220

1,715

Other

1

(14)

Cash flows from investing activities

(914)

(1,768)

Cash flows from financing activities

Proceeds from issuance of long-term debt

748

—

Repayment of debt

(750)

—

Dividends paid

(721)

(602)

Stock repurchases

(456)

(1,200)

Proceeds from common stock transactions

194

55

Other

(13)

(8)

Cash flows from financing activities

(998)

(1,755)

Net change in cash and cash equivalents

80

(1,417)

Cash and cash equivalents at beginning of period                                                                          

3,813

2,919

Cash and cash equivalents at end of period

$

3,893

$

1,502