TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

June 30,

2017

2016

Cash flows from operating activities

Net income

$

1,056

$

819

Adjustments to Net income:

Depreciation

134

155

Amortization of acquisition-related intangibles

79

79

Amortization of capitalized software

12

8

Stock compensation

75

76

Deferred income taxes

(54)

(59)

Increase (decrease) from changes in:

Accounts receivable

(132)

(76)

Inventories

(104)

(71)

Prepaid expenses and other current assets

83

(8)

Accounts payable and accrued expenses

12

40

Accrued compensation

131

147

Income taxes payable

(385)

(25)

Changes in funded status of retirement plans

19

14

Other

(9)

10

Cash flows from operating activities

917

1,109

Cash flows from investing activities

Capital expenditures

(151)

(158)

Purchases of short-term investments

(1,130)

(993)

Proceeds from short-term investments

1,265

1,210

Other

8

6

Cash flows from investing activities

(8)

65

Cash flows from financing activities

Proceeds from issuance of long-term debt

605

499

Repayment of debt

(375)

(1,000)

Dividends paid

(498)

(382)

Stock repurchases

(650)

(527)

Proceeds from common stock transactions

84

193

Other

(8)

(3)

Cash flows from financing activities

(842)

(1,220)

Net change in Cash and cash equivalents

67

(46)

Cash and cash equivalents at beginning of period

1,073

1,281

Cash and cash equivalents at end of period

$

1,140

$

1,235

Certain amounts in the prior period have been recast to conform to the current presentation.