88f371a07fd4954bd0b9d171d6264032a1786dfcde17aff2df67857e9d9ec07e

Analog

Embedded Processing

Other

Total Revenue

4b186bd1e736dc765e391710e38abed1748ee502a4c4b94aee02cc6d9f0c1768

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

a80f8f41777de329f79da1e089eae98da40f4cf7ce9d437842e1317dc0cbfa99

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

a5e54460616239b06a3121f6cece4aef0bf466e9785e3fe5ba7740931d438708

United States

China

Rest of Asia

Asia (including China)

EMEA

Japan

Rest of World

7f6ebe8a8a1d0c9fefe5a8c322c38d62a2259bb5f7d11965ea01ed585fe36f4e

cca063cc2ef5b9506efe4576829eac40fae5233390ec981c8dced226cfd32391

Net Income (USD, millions)

Depreciation (USD, millions)

Amortization of Capitalized Software (USD, millions)

Stock Compensation (USD, millions)

Gains on Sales of Assets (USD, millions)

Changes in Funded Status of Retirement Plans (USD, millions)

Other, Operating Activities (USD, millions)

Cash Flows from Operating Activities (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from Asset Sales, Investing Activities (USD, millions)

Purchases of Short-Term Investments (USD, millions)

Proceeds from Short-Term Investments (USD, millions)

Other, Investing Activities (USD, millions)

Cash Flows from Investing Activities (USD, millions)

Proceeds from Issuance of Long-Term Debt (USD, millions)

Repayment of Debt (USD, millions)

Dividends Paid (USD, millions)

Stock Repurchases (USD, millions)

Proceeds from Common Stock Transactions (USD, millions)

Other, Financing Activities (USD, millions)

Cash Flows from Financing Activities (USD, millions)

Net Change in Cash and Cash Equivalents (USD, millions)

Investment Tax Credit (ITC) Used to Reduce Income Taxes Payable (USD, millions)

Total Cash Benefit Related to the U.S. CHIPS and Science Act (USD, millions)

Deferred Taxes (USD, millions)

Accounts Receivable (USD, millions)

Inventories (USD, millions)

Prepaid Expenses and Other Current Assets (USD, millions)

Accounts Payable and Accrued Expenses (USD, millions)

Accrued Compensation (USD, millions)

Income Taxes Payable (USD, millions)

Cash and Cash Equivalents at Beginning of Period (USD, millions)

Cash and Cash Equivalents at End of Period (USD, millions)

4bbb7095308ecf891899c64fc04bc9843666f9d76bd7306da9e4ee1decd3ecc8

Revenue (USD, millions)

Cost of Revenue (USD, millions)

Gross Profit (USD, millions)

Research and Development (USD, millions)

Selling, General and Administrative (USD, millions)

Restructuring Charges/Other (USD, millions)

Operating Profit (USD, millions)

Other Income (Expense), Net (USD, millions)

Interest and Debt Expense (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Earnings per Common Share - Basic (USD)

Earnings per Common Share - Diluted (USD)

Average Shares Outstanding - Basic (millions)

Average Shares Outstanding - Diluted (millions)

Income Allocated to RSUs (USD, millions)

Income Allocated to Common Stock for Diluted EPS (USD, millions)

347d5c96cc5c88c3bbca379df1fe5e80b7c9544c5eaaa6675f4b190a69eaadad

TXN’s **cash and cash equivalents** were significantly lower in Q1 2024 because the company increased its investments in manufacturing capacity, leading to **higher capital expenditures** (increasing from **$982 million** in Q1 2023 to **$1,248 million** in Q1 2024) and experienced **lower cash flow from operations** (dropping from **$1,160 million** to **$1,017 million**) compared to the previous year. Additionally, TXN managed its liquidity by issuing **$3 billion in long-term debt** and returned **$1,186 million** to shareholders through dividends and stock repurchases, which further reduced its cash reserves.  **[20240423DA93691:1]** **[0000097476-24-000020_q12024txnex99-er1.htm:2]** **[0000097476-24-000020_q12024txnex99-er1.htm:0]** **[TXN_3380281_12]** **[TXN_3380281_1]** 

Why was Cash and cash equivalents so low in Q1 2024?

The significant increase in **long-term debt** in Q1 2024 was primarily driven by the issuance of **$3.0 billion** in senior unsecured notes in February 2024. This financing activity raised the debt from **$10,624 million** at the end of 2023 to **$12,840 million** as of March 31, 2024. The net proceeds of **$2.98 billion**—after accounting for issuance discounts and costs—were allocated for **general corporate purposes**, including funding the company’s **$5 billion annual capital expenditures** for manufacturing investments.  **[0000097476-24-000021_txn-20240331.htm:9]** **[TXN_3380281_1]** 

Why did Long-term debt jump in Q1 2024?

The spike in **Prepaid expenses and other current assets** in Q1 2024 was primarily driven by the **U.S. CHIPS and Science Act investment tax credit**, which increased from **$497 million** as of December 31, 2023, to **$999 million** by March 31, 2024.  **[0000097476-24-000021_txn-20240331.htm:10]** 

What caused the spike in Prepaid expenses and other current assets in Q1 2024?

TXN’s short-term investments were unusually high in Q1 2024 primarily because the company significantly **increased its purchases of short-term investments**. Specifically, purchases rose to **$4,864 million** in Q1 2024 compared to **$3,013 million** in Q1 2023, while proceeds from these investments declined from **$4,026 million** to **$2,631 million**, resulting in a higher net cash usage. This shift in investment activity reflects TXN's strategy to manage liquidity and optimize returns on its cash reserves.  **[0000097476-24-000020_q12024txnex99-er1.htm:2]** **[0000097476-24-000021_txn-20240331.htm:3]** **[0000097476-24-000021_txn-20240331.htm:15]** 

Why were Short-term investments unusually high in Q1 2024?

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The documents indicate that **Proceeds from Asset Sales** increased from **$1 million** in Q1 2023 to **$192 million** in Q1 2024, but they do not provide specific details or reasons for this significant change.  **[0000097476-23-000025_txn-20230331.htm:3]** **[0000097476-24-000021_txn-20240331.htm:3]**  

What drove the significant spike in Proceeds from Asset Sales in Q1 2024?

The increase in **capital expenditures** in **Q1 2024** was primarily driven by TXN's investments in **semiconductor manufacturing equipment and facilities** as well as its efforts in **long-term capacity planning**. The company is also positioning itself to take advantage of the **U.S. CHIPS and Science Act**, which includes funding for manufacturing grants, research investments, and a **25% investment tax credit** for qualifying U.S. semiconductor manufacturing investments.  **[0000097476-24-000021_txn-20240331.htm:15]** 

Why did Capital Expenditures increase in Q1 2024?

The documents do not provide a definitive explanation for the change in stock repurchases. While one section notes TXN’s Q3 2024 repurchase level was **$318 million** and implies a change in its capital allocation strategy—emphasizing investments in R&D, capital expenditures, and enhanced dividend payments—no specific factor is explicitly identified as the cause for the change in the repurchase level.  **[20241022DA35762:1]** **[0000097476-24-000040_q32024txnex99-er1.htm:0]** 

What led to the sharp rise in Stock Repurchases in Q3 2024?

The documents do not provide an explicit reason for the decline from **$2,565 million** in Q4 2023 to **$909 million** in Q4 2024. However, such changes are often influenced by adjustments in a company's **liquidity management strategy, cash flow requirements**, or shifts in **investment opportunities**.  **[0000097476-25-000003_q42024txnex99-eredgar.htm:3]** 

Why did Purchases of Short-Term Investments decline significantly in Q4 2024?

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In Q1 2024, revenue was low due to a combination of factors resulting in a **16% decrease** compared to Q1 2023. **Lower revenue across all segments** drove the decline, with the **Analog segment down 14%** due to weaker performance in the Power and Signal Chain product lines; **Embedded Processing falling 22%** because of reduced demand for microcontrollers and processors; and the **Other Segment declining 33%** due to decreased demand for DLP® products, calculators, and custom ASIC products.  **[20240423DA93691:2]** **[0000097476-24-000021_txn-20240331.htm:14]**  Moreover, **end market weakness**—with sequential declines in industrial, automotive, personal electronics, communications equipment, and enterprise systems—and broader **macroeconomic factors** that led customers to reduce inventory levels also significantly contributed to the decrease.  **[TXN_3380281_0]** 

Why was Revenue so low in Q1 2024?

TXN’s operating profit dropped in Q1 2024 primarily due to a **16% decrease in revenue**, with the Analog and Embedded Processing segments falling by **14%** and **22%**, respectively. This revenue decline, combined with **higher manufacturing costs** from reduced factory loadings and planned capacity expansions, led to a drop in gross profit margins by **820 basis points**, causing a **34% reduction** in operating profit compared to Q1 2023.  **[20240423DA93691:0]** **[0000097476-24-000020_q12024txnex99-er1.htm:0]** **[0000097476-24-000021_txn-20240331.htm:14]** **[TXN_3380281_1]** 

Why did Operating Profit drop in Q1 2024?

The lower EPS in Q1 2024 was driven by several key factors. **Revenue declined by 16%**, falling from **$4.38 billion to $3.66 billion** due to reduced sales across all end markets, which directly impacted profitability.  **[20240423DA93691:0]** **[TXN_3380281_0]**  In addition, **gross profit fell by 27%** (from **$2.86 billion to $2.10 billion**) as lower revenues combined with higher manufacturing costs led to squeezed margins.  **[TXN_3380281_1]** **[TXN_3380281_0]**  **Operating profit dropped by 34%** (from **$1.93 billion to $1.29 billion**), and higher **interest and debt expenses** (increasing from **$68 million to $116 million**) further eroded net income, which itself declined by 35% (from **$1.71 billion to $1.11 billion**).  **[20240423DA93691:0]** **[0000097476-24-000020_q12024txnex99-er1.htm:1]**  These combined factors significantly contributed to the lower EPS in Q1 2024.

What contributed to the lower EPS in Q1 2024?

The decline in annual net income was driven by several factors. **Revenue decline** played a key role as overall revenues fell from **$17,519 million to $15,641 million**, which affected the operating profit, reducing it from **$7,331 million to $5,465 million**. This was exacerbated by **higher operating expenses**, including an increase in depreciation expenses from **$1,175 million to $1,508 million**, reflecting investments in manufacturing capacity. In addition, segment-specific challenges—most notably within the **Embedded Processing** segment—and only a modest impact from a reduced provision for income taxes further contributed to the decline.  **[0000097476-25-000003_q42024txnex99-eredgar.htm:3]** **[20250123DA01944:1]** **[0000097476-25-000007_txn-20241231.htm:38]** 

What factors drove the decline in annual Net Income?

e7356bcdce9f89f2d87493ef029332819f0fc8a52299ea018093f0b40a59c845

Texas Instruments Inc (TXN)

Financials