TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

June 30,

2020

2019

Cash flows from operating activities

Net income

$

1,380

$

1,305

Adjustments to net income:

Depreciation

184

173

Amortization of acquisition-related intangibles

50

80

Amortization of capitalized software

15

14

Stock compensation

69

67

Gains on sales of assets

(1)

(21)

Deferred taxes

(30)

31

Increase (decrease) from changes in:

Accounts receivable

140

21

Inventories

(133)

52

Prepaid expenses and other current assets

63

18

Accounts payable and accrued expenses

73

(26)

Accrued compensation

148

129

Income taxes payable

(255)

(13)

Changes in funded status of retirement plans

(10)

2

Other

27

(36)

Cash flows from operating activities

1,720

1,796

Cash flows from investing activities

Capital expenditures

(130)

(284)

Proceeds from asset sales

1

28

Purchases of short-term investments

(249)

(239)

Proceeds from short-term investments

1,810

200

Other

5

37

Cash flows from investing activities

1,437

(258)

Cash flows from financing activities

Proceeds from issuance of long-term debt

749

—

Repayment of debt

(500)

—

Dividends paid

(823)

(722)

Stock repurchases

(882)

(863)

Proceeds from common stock transactions

87

146

Other

(12)

(6)

Cash flows from financing activities

(1,381)

(1,445)

Net change in cash and cash equivalents

1,776

93

Cash and cash equivalents at beginning of period

2,518

3,720

Cash and cash equivalents at end of period

$

4,294

$

3,813