TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

March 31,

2015

Cash flows from operating activities:

Net income

Adjustments to Net income:

Depreciation

203

213

Amortization of acquisition-related intangibles

80

81

Amortization of capitalized software

13

16

Stock-based compensation

78

78

Gains on sales of assets

(1)

(37)

Deferred income taxes

1

—

Increase (decrease) from changes in:

Accounts receivable

(154)

(149)

Inventories

(60)

17

Prepaid expenses and other current assets

54

(29)

Accounts payable and accrued expenses

(108)

(117)

Accrued compensation

(294)

(189)

Income taxes payable

147

80

Changes in funded status of retirement plans

19

22

Other

(25)

(11)

Cash flows from operating activities

609

462

Cash flows from investing activities:

Capital expenditures

(123)

(77)

Proceeds from asset sales

1

37

Purchases of short-term investments

(335)

(1,051)

Proceeds from short-term investments

615

785

Other

—

1

Cash flows from investing activities

158

(305)

Cash flows from financing activities:

Proceeds from issuance of long-term debt

—

498

Dividends paid

(356)

(325)

Stock repurchases

(670)

(720)

Proceeds from common stock transactions

246

283

Excess tax benefit from share-based payments

56

49

Other

—

(4)

Cash flows from financing activities

(724)

(219)

Net change in Cash and cash equivalents

43

(62)

Cash and cash equivalents at beginning of period

1,199

1,627

Cash and cash equivalents at end of period