TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For Three Months Ended

December 31,

For Years Ended

December 31,

(In millions)

2021

2020

2021

2020

Cash flows from operating activities

Net income

$             2,138

$             1,688

$             7,769

$             5,595

Adjustments to net income:

Depreciation

200

180

755

733

Amortization of acquisition-related intangibles

—

47

142

198

Amortization of capitalized software

13

16

57

61

Stock compensation

50

42

230

224

Gains on sales of assets

(50)

(1)

(57)

(4)

Deferred taxes

(4)

(22)

15

(137)

Increase (decrease) from changes in:

Accounts receivable

(48)

(22)

(287)

(340)

Inventories

(47)

117

45

46

Prepaid expenses and other current assets

(42)

(79)

57

(79)

Accounts payable and accrued expenses

(54)

3

33

63

Accrued compensation

110

111

7

63

Income taxes payable

34

135

(20)

(181)

Changes in funded status of retirement plans

14

(25)

62

(9)

Other

43

(65)

(52)

(94)

Cash flows from operating activities

2,357

2,125

8,756

6,139

Cash flows from investing activities

Capital expenditures

(1,282)

(212)

(2,462)

(649)

Proceeds from asset sales

68

1

75

4

Purchases of short-term investments

(3,697)

(2,351)

(10,124)

(5,786)

Proceeds from short-term investments

2,708

1,587

8,478

5,545

Other

(26)

(21)

(62)

(36)

Cash flows from investing activities

(2,229)

(996)

(4,095)

(922)

Cash flows from financing activities

Proceeds from issuance of long-term debt

—

—

1,495

1,498

Repayment of debt

—

—

(550)

(500)

Dividends paid

(1,062)

(937)

(3,886)

(3,426)

Stock repurchases

(142)

(15)

(527)

(2,553)

Proceeds from common stock transactions

52

114

377

470

Other

(8)

(6)

(46)

(36)

Cash flows from financing activities

(1,160)

(844)

(3,137)

(4,547)

Net change in cash and cash equivalents

(1,032)

285

1,524

670

Cash and cash equivalents at beginning of period

5,663

2,822

3,107

2,437

Cash and cash equivalents at end of period

$             4,631

$             3,107

$             4,631

$             3,107