TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

September 30,

2016

2015

Cash flows from operating activities

Net income

$

968

$

798

Adjustments to Net income:

Depreciation

150

193

Amortization of acquisition-related intangibles

80

80

Amortization of capitalized software

7

12

Stock-based compensation

56

66

Deferred income taxes

(125)

(50)

Increase (decrease) from changes in:

Accounts receivable

(98)

(47)

Inventories

68

114

Prepaid expenses and other current assets

95

40

Accounts payable and accrued expenses

9

(48)

Accrued compensation

149

132

Income taxes payable

47

99

Changes in funded status of retirement plans

24

24

Other

(17)

(4)

Cash flows from operating activities

1,413

1,409

Cash flows from investing activities

Capital expenditures

(139)

(139)

Purchases of short-term investments

(978)

(459)

Proceeds from short-term investments

515

980

Other

(1)

7

Cash flows from investing activities

(603)

389

Cash flows from financing activities

Repayment of debt

—

(750)

Dividends paid

(382)

(348)

Stock repurchases

(500)

(790)

Proceeds from common stock transactions

159

35

Excess tax benefit from share-based payments

47

4

Cash flows from financing activities

(676)

(1,849)

Net change in Cash and cash equivalents

134

(51)

Cash and cash equivalents at beginning of period

1,235

1,184

Cash and cash equivalents at end of period

$

1,369

$

1,133