TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Millions of dollars)

For Three Months Ended

June 30,

2015

2014

Cash flows from operating activities

Net income

$

696

$

683

Adjustments to Net income:

Depreciation

198

213

Amortization of acquisition-related intangibles

80

80

Amortization of capitalized software

13

14

Stock-based compensation

84

77

Gains on sales of assets

(2)

(2)

Deferred income taxes

(57)

(57)

Increase (decrease) from changes in:

Accounts receivable

(40)

(165)

Inventories

(41)

(30)

Prepaid expenses and other current assets

(5)

14

Accounts payable and accrued expenses

(34)

(59)

Accrued compensation

125

113

Income taxes payable

(225)

(128)

Changes in funded status of retirement plans

22

19

Other

6

3

Cash flows from operating activities

820

775

Cash flows from investing activities

Capital expenditures

(125)

(80)

Proceeds from asset sales

9

3

Purchases of short-term investments

(919)

(415)

Proceeds from short-term investments

860

1,294

Other

1

—

Cash flows from investing activities

(174)

802

Cash flows from financing activities

Proceeds from issuance of long-term debt

498

—

Repayment of debt

(250)

(1,000)

Dividends paid

(354)

(323)

Stock repurchases

(654)

(743)

Proceeds from common stock transactions

51

125

Excess tax benefit from share-based payments

8

15

Other

(3)

—

Cash flows from financing activities

(704)

(1,926)

Net change in Cash and cash equivalents

(58)

(349)

Cash and cash equivalents at beginning of period

1,242

1,565

Cash and cash equivalents at end of period

$

1,184

$

1,216