Trailing 12 Months

1Q19

1Q19

1Q18

Change

Dividends paid

$

724

$

2,668

$

2,215

20%

Stock repurchases

$

1,152

$

5,379

$

2,879

87%

Total cash returned

$

1,876

$

8,047

$

5,094

58%

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income

(Millions of dollars, except share and per-share amounts)

For Three Months Ended

2019

2018

Revenue

$

3,594

$

3,789

Cost of revenue (COR)

1,333

1,342

Gross profit

2,261

2,447

Research and development (R&D)

389

385

Selling, general and administrative (SG&A)

414

433

Acquisition charges

79

80

Restructuring charges/other

—

1

Operating profit

1,379

1,548

Other income (expense), net (OI&E)

36

28

Interest and debt expense

38

23

Income before income taxes

1,377

1,553

Provision for income taxes

160

187

Net income

$

1,217

$

1,366

Diluted earnings per common share

$

1.26

$

1.35

Average shares outstanding (millions):

Basic

939

983

Diluted

956

1,005

Cash dividends declared per common share

$

.77

$

.62

Supplemental Information

(Quarterly, except as noted)

Provision for income taxes is based on the following:

Operating taxes (calculated using the estimated annual effective tax rate)

$

220

$

316

Discrete tax items

(129)

Provision for income taxes (effective taxes)

$

160

$

187

Annual operating tax rate

16%

20%

Effective tax rate

12%

12%

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

$

1,217

$

1,366

Income allocated to RSUs

(8)

(11)

Income allocated to common stock for diluted EPS

$

1,209

$

1,355