TXN Q1 2018 10-Q

Texas Instruments Inc (TXN) SEC Quarterly Report (10-Q) for Q2 2018

TXN Q1 2018 10-Q

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)

Delaware

75-0289970

(State of Incorporation)

(I.R.S. Employer Identification No.)

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.

Large accelerated filer

Accelerated filer

Non-accelerated filer

(Do not check if a smaller reporting company)

Smaller reporting company

Emerging growth company

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.

For Three Months Ended

For Six Months Ended

Consolidated Statements of Income

June 30,

June 30,

(Millions of dollars, except share and per-share amounts)

2018

2017

2018

2017

Revenue

$

4,017

$

3,693

$

7,806

$

7,095

Cost of revenue (COR)

1,398

1,319

2,740

2,577

Gross profit

2,619

2,374

5,066

4,518

Research and development (R&D)

384

378

769

747

Selling, general and administrative (SG&A)

441

434

874

873

Acquisition charges

79

79

159

159

Restructuring charges/other

3

3

4

7

Operating profit

1,712

1,480

3,260

2,732

Other income (expense), net (OI&E)

24

26

52

47

Interest and debt expense

30

20

53

38

Income before income taxes

1,706

1,486

3,259

2,741

Provision for income taxes

301

430

488

688

Net income

$

1,405

$

1,056

$

2,771

$

2,053

Earnings per common share (EPS):

Basic

$

1.43

$

1.05

$

2.80

$

2.04

Diluted

$

1.40

$

1.03

$

2.75

$

2.00

Average shares outstanding (millions):

Basic

977

994

980

996

Diluted

997

1,015

1,001

1,017

Cash dividends declared per common share

$

.62

$

.50

$

1.24

$

1.00

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:

Net income

$

1,405

$

1,056

$

2,771

$

2,053

Income allocated to RSUs

(11

)

(10

)

(22

)

(20

)

Income allocated to common stock for diluted EPS

$

1,394

$

1,046

$

2,749

$

2,033

See accompanying notes.

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