UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2018
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________ to ___________
Commission File Number 001-03761
TEXAS INSTRUMENTS INCORPORATED
(Exact Name of Registrant as Specified in Its Charter)
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Delaware | 75-0289970 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
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12500 TI Boulevard, Dallas, Texas | 75243 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code 214-479-3773
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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Large accelerated filer | ☒ |
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Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | ||||
Emerging growth company | ☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act | ☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
972,195,072
Number of shares of Registrant's common stock outstanding as of
July 24, 2018
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements.
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| For Three Months Ended |
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| For Six Months Ended |
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Consolidated Statements of Income |
| June 30, |
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| June 30, |
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(Millions of dollars, except share and per-share amounts) |
| 2018 |
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| 2017 |
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| 2018 |
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| 2017 |
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Revenue |
| $ |
| 4,017 |
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| $ |
| 3,693 |
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| $ |
| 7,806 |
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| $ |
| 7,095 |
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Cost of revenue (COR) |
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| 1,398 |
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| 1,319 |
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| 2,740 |
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| 2,577 |
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Gross profit |
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| 2,619 |
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| 2,374 |
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| 5,066 |
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| 4,518 |
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Research and development (R&D) |
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| 384 |
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| 378 |
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| 769 |
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| 747 |
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Selling, general and administrative (SG&A) |
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| 441 |
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| 434 |
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| 874 |
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| 873 |
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Acquisition charges |
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| 79 |
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| 79 |
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| 159 |
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| 159 |
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Restructuring charges/other |
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| 3 |
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| 3 |
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| 4 |
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| 7 |
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Operating profit |
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| 1,712 |
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| 1,480 |
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| 3,260 |
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| 2,732 |
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Other income (expense), net (OI&E) |
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| 24 |
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| 26 |
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| 52 |
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| 47 |
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Interest and debt expense |
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| 30 |
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| 20 |
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| 53 |
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| 38 |
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Income before income taxes |
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| 1,706 |
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| 1,486 |
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| 3,259 |
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| 2,741 |
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Provision for income taxes |
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| 301 |
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| 430 |
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| 488 |
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| 688 |
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Net income |
| $ |
| 1,405 |
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| $ |
| 1,056 |
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| $ |
| 2,771 |
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| $ |
| 2,053 |
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Earnings per common share (EPS): |
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Basic |
| $ |
| 1.43 |
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| $ |
| 1.05 |
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| $ |
| 2.80 |
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| $ |
| 2.04 |
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Diluted |
| $ |
| 1.40 |
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| $ |
| 1.03 |
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| $ |
| 2.75 |
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| $ |
| 2.00 |
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Average shares outstanding (millions): |
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Basic |
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| 977 |
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| 994 |
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| 980 |
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| 996 |
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Diluted |
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| 997 |
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| 1,015 |
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| 1,001 |
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| 1,017 |
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Cash dividends declared per common share |
| $ |
| .62 |
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| $ |
| .50 |
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| $ |
| 1.24 |
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| $ |
| 1.00 |
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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: |
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Net income |
| $ |
| 1,405 |
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| 1,056 |
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| $ |
| 2,771 |
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| $ |
| 2,053 |
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Income allocated to RSUs |
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| (11 | ) |
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| (10 | ) |
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| (22 | ) |
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| (20 | ) |
Income allocated to common stock for diluted EPS |
| $ |
| 1,394 |
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| $ |
| 1,046 |
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| $ |
| 2,749 |
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| $ |
| 2,033 |
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See accompanying notes. |
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