TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For Three Months Ended

June 30,

(Millions of dollars)

2021

2020

Cash flows from operating activities

Net income

$

1,931

$

1,380

Adjustments to net income:

Depreciation

184

184

Amortization of acquisition-related intangibles

48

50

Amortization of capitalized software

15

15

Stock compensation

69

69

Gains on sales of assets

(3)

(1)

Deferred taxes

(1)

(30)

Increase (decrease) from changes in:

Accounts receivable

(7)

140

Inventories

40

(133)

Prepaid expenses and other current assets

(50)

63

Accounts payable and accrued expenses

(17)

73

Accrued compensation

141

148

Income taxes payable

(175)

(255)

Changes in funded status of retirement plans

7

(10)

Other

(61)

27

Cash flows from operating activities

2,121

1,720

Cash flows from investing activities

Capital expenditures

(386)

(130)

Proceeds from asset sales

3

1

Purchases of short-term investments

(1,952)

(249)

Proceeds from short-term investments

2,455

1,810

Other

7

5

Cash flows from investing activities

127

1,437

Cash flows from financing activities

Proceeds from issuance of long-term debt

—

749

Repayment of debt

—

(500)

Dividends paid

(942)

(823)

Stock repurchases

(146)

(882)

Proceeds from common stock transactions

54

87

Other

(7)

(12)

Cash flows from financing activities

(1,041)

(1,381)

Net change in cash and cash equivalents

1,207

1,776

Cash and cash equivalents at beginning of period

2,442

2,518

Cash and cash equivalents at end of period

$

3,649

$

4,294