DELAWARE | ||||||||||||||
(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 26, 2022 (furnished pursuant to Item 2.02) | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
TEXAS INSTRUMENTS INCORPORATED | ||||||||||||||
Date: April 26, 2022 | By: | /s/ Rafael R. Lizardi | ||||||||||||
Rafael R. Lizardi | ||||||||||||||
Senior Vice President and | ||||||||||||||
Chief Financial Officer |
Q1 2022 | Q1 2021 | Change | |||||||||||||||
Revenue | $ | 4,905 | $ | 4,289 | 14 | % | |||||||||||
Operating profit | $ | 2,563 | $ | 1,939 | 32 | % | |||||||||||
Net income | $ | 2,201 | $ | 1,753 | 26 | % | |||||||||||
Earnings per share | $ | 2.35 | $ | 1.87 | 26 | % |
Trailing 12 Months | |||||||||||||||||||||||
Q1 2022 | Q1 2022 | Q1 2021 | Change | ||||||||||||||||||||
Cash flow from operations | $ | 2,144 | $ | 9,050 | $ | 7,138 | 27 | % | |||||||||||||||
Capital expenditures | $ | 443 | $ | 2,597 | $ | 796 | 226 | % | |||||||||||||||
Free cash flow | $ | 1,701 | $ | 6,453 | $ | 6,342 | 2 | % | |||||||||||||||
Free cash flow % of revenue | 34.0 | % | 41.1 | % |
Trailing 12 Months | |||||||||||||||||||||||
Q1 2022 | Q1 2022 | Q1 2021 | Change | ||||||||||||||||||||
Dividends paid | $ | 1,063 | $ | 4,009 | $ | 3,525 | 14 | % | |||||||||||||||
Stock repurchases | $ | 589 | $ | 1,016 | $ | 1,012 | 0 | % | |||||||||||||||
Total cash returned | $ | 1,652 | $ | 5,025 | $ | 4,537 | 11 | % |
Consolidated Statements of Income | For Three Months Ended March 31, | |||||||||||||
(In millions, except per-share amounts) | 2022 | 2021 | ||||||||||||
Revenue | $ | 4,905 | $ | 4,289 | ||||||||||
Cost of revenue (COR) | 1,463 | 1,492 | ||||||||||||
Gross profit | 3,442 | 2,797 | ||||||||||||
Research and development (R&D) | 391 | 386 | ||||||||||||
Selling, general and administrative (SG&A) | 422 | 425 | ||||||||||||
Acquisition charges | — | 47 | ||||||||||||
Restructuring charges/other | 66 | — | ||||||||||||
Operating profit | 2,563 | 1,939 | ||||||||||||
Other income (expense), net (OI&E) | 15 | 46 | ||||||||||||
Interest and debt expense | 52 | 46 | ||||||||||||
Income before income taxes | 2,526 | 1,939 | ||||||||||||
Provision for income taxes | 325 | 186 | ||||||||||||
Net income | $ | 2,201 | $ | 1,753 | ||||||||||
Diluted earnings per common share | $ | 2.35 | $ | 1.87 | ||||||||||
Average shares outstanding: | ||||||||||||||
Basic | 923 | 922 | ||||||||||||
Diluted | 934 | 935 | ||||||||||||
Cash dividends declared per common share | $ | 1.15 | $ | 1.02 | ||||||||||
Supplemental Information | ||||||||||||||
(Quarterly, except as noted) | ||||||||||||||
Our annual operating tax rate, which does not include discrete tax items, was 14% in both periods. | ||||||||||||||
Provision for income taxes is based on the following: | ||||||||||||||
Operating taxes (calculated using the estimated annual effective tax rate) | $ | 361 | $ | 275 | ||||||||||
Discrete tax items | (36) | (89) | ||||||||||||
Provision for income taxes (effective taxes) | $ | 325 | $ | 186 | ||||||||||
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 | $ | 2,201 | $ | 1,753 | ||||||||||
Income allocated to RSUs | (9) | (8) | ||||||||||||
Income allocated to common stock for diluted EPS | $ | 2,192 | $ | 1,745 |
Consolidated Balance Sheets | March 31, | |||||||||||||
(In millions, except par value) | 2022 | 2021 | ||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 3,505 | $ | 2,442 | ||||||||||
Short-term investments | 6,320 | 4,244 | ||||||||||||
Accounts receivable, net of allowances of ($9) and ($9) | 1,795 | 1,584 | ||||||||||||
Raw materials | 265 | 183 | ||||||||||||
Work in process | 1,151 | 980 | ||||||||||||
Finished goods | 644 | 727 | ||||||||||||
Inventories | 2,060 | 1,890 | ||||||||||||
Prepaid expenses and other current assets | 330 | 245 | ||||||||||||
Total current assets | 14,010 | 10,405 | ||||||||||||
Property, plant and equipment at cost | 8,236 | 5,967 | ||||||||||||
Accumulated depreciation | (2,797) | (2,536) | ||||||||||||
Property, plant and equipment | 5,439 | 3,431 | ||||||||||||
Goodwill | 4,362 | 4,362 | ||||||||||||
Deferred tax assets | 273 | 331 | ||||||||||||
Capitalized software licenses | 91 | 113 | ||||||||||||
Overfunded retirement plans | 383 | 235 | ||||||||||||
Other long-term assets | 718 | 762 | ||||||||||||
Total assets | $ | 25,276 | $ | 19,639 | ||||||||||
Liabilities and stockholders' equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Current portion of long-term debt | $ | 500 | $ | — | ||||||||||
Accounts payable | 641 | 554 | ||||||||||||
Accrued compensation | 386 | 388 | ||||||||||||
Income taxes payable | 405 | 278 | ||||||||||||
Accrued expenses and other liabilities | 596 | 480 | ||||||||||||
Total current liabilities | 2,528 | 1,700 | ||||||||||||
Long-term debt | 7,242 | 6,250 | ||||||||||||
Underfunded retirement plans | 81 | 130 | ||||||||||||
Deferred tax liabilities | 94 | 88 | ||||||||||||
Other long-term liabilities | 1,314 | 1,305 | ||||||||||||
Total liabilities | 11,259 | 9,473 | ||||||||||||
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 | 2,667 | 2,391 | ||||||||||||
Retained earnings | 47,053 | 42,860 | ||||||||||||
Treasury common stock at cost | ||||||||||||||
Shares: March 31, 2022 – 819; March 31, 2021 – 818 | (37,291) | (36,479) | ||||||||||||
Accumulated other comprehensive income (loss), net of taxes (AOCI) | (153) | (347) | ||||||||||||
Total stockholders' equity | 14,017 | 10,166 | ||||||||||||
Total liabilities and stockholders' equity | $ | 25,276 | $ | 19,639 |
Consolidated Statements of Cash Flows | For Three Months Ended March 31, | |||||||||||||
(In millions) | 2022 | 2021 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 2,201 | $ | 1,753 | ||||||||||
Adjustments to net income: | ||||||||||||||
Depreciation | 200 | 179 | ||||||||||||
Amortization of acquisition-related intangibles | — | 47 | ||||||||||||
Amortization of capitalized software | 14 | 15 | ||||||||||||
Stock compensation | 74 | 61 | ||||||||||||
Gains on sales of assets | (2) | (1) | ||||||||||||
Deferred taxes | (1) | 8 | ||||||||||||
Increase (decrease) from changes in: | ||||||||||||||
Accounts receivable | (94) | (170) | ||||||||||||
Inventories | (150) | 65 | ||||||||||||
Prepaid expenses and other current assets | 21 | 73 | ||||||||||||
Accounts payable and accrued expenses | 11 | 69 | ||||||||||||
Accrued compensation | (388) | (379) | ||||||||||||
Income taxes payable | 284 | 131 | ||||||||||||
Changes in funded status of retirement plans | 21 | 28 | ||||||||||||
Other | (47) | (29) | ||||||||||||
Cash flows from operating activities | 2,144 | 1,850 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Capital expenditures | (443) | (308) | ||||||||||||
Proceeds from asset sales | 2 | 1 | ||||||||||||
Purchases of short-term investments | (3,988) | (2,782) | ||||||||||||
Proceeds from short-term investments | 2,774 | 2,000 | ||||||||||||
Other | (13) | (20) | ||||||||||||
Cash flows from investing activities | (1,668) | (1,109) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Repayment of debt | — | (550) | ||||||||||||
Dividends paid | (1,063) | (940) | ||||||||||||
Stock repurchases | (589) | (100) | ||||||||||||
Proceeds from common stock transactions | 57 | 196 | ||||||||||||
Other | (7) | (12) | ||||||||||||
Cash flows from financing activities | (1,602) | (1,406) | ||||||||||||
Net change in cash and cash equivalents | (1,126) | (665) | ||||||||||||
Cash and cash equivalents at beginning of period | 4,631 | 3,107 | ||||||||||||
Cash and cash equivalents at end of period | $ | 3,505 | $ | 2,442 |
Q1 2022 | Q1 2021 | Change | |||||||||||||||
Analog: | |||||||||||||||||
Revenue | $ | 3,816 | $ | 3,280 | 16 | % | |||||||||||
Operating profit | $ | 2,150 | $ | 1,646 | 31 | % | |||||||||||
Embedded Processing: | |||||||||||||||||
Revenue | $ | 782 | $ | 767 | 2 | % | |||||||||||
Operating profit | $ | 315 | $ | 287 | 10 | % | |||||||||||
Other: | |||||||||||||||||
Revenue | $ | 307 | $ | 242 | 27 | % | |||||||||||
Operating profit* | $ | 98 | $ | 6 | 1,533 | % |
For 12 Months Ended March 31, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Cash flow from operations (GAAP) | $ | 9,050 | $ | 7,138 | 27 | % | |||||||||||
Capital expenditures | (2,597) | (796) | |||||||||||||||
Free cash flow (non-GAAP) | $ | 6,453 | $ | 6,342 | 2 | % | |||||||||||
Revenue | $ | 18,960 | $ | 15,421 | |||||||||||||
Cash flow from operations as a percentage of revenue (GAAP) | 47.7 | % | 46.3 | % | |||||||||||||
Free cash flow as a percentage of revenue (non-GAAP) | 34.0 | % | 41.1 | % |
Cover |
Apr. 26, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 26, 2022 |
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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