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2021年7月21日

DALLAS, July 21, 2021 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $4.58 billion, net income of $1.93 billion and earnings per share of $2.05. Earnings per share included a 6-cent benefit for items that were not in the company’s original guidance.

Regarding the company’s performance and returns to shareholders, Rich Templeton, TI’s chairman, president and CEO, made the following comments:

  • "Revenue increased 7% sequentially and increased 41% from the same quarter a year ago due to strong demand in industrial, automotive and personal electronics.
  • "In our core businesses, Analog revenue grew 6% and Embedded Processing grew 2% sequentially. From a year ago, Analog revenue grew 42% and Embedded Processing grew 43%.
  • "Our cash flow from operations of $7.5 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $6.5 billion and 39% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
  • "We returned $3.9 billion to owners in the past 12 months through dividends and stock repurchases. Over the same period, our dividend represented 56% of free cash flow, underscoring its sustainability.
  • "TI’s third quarter outlook is for revenue in the range of $4.40 billion to $4.76 billion and earnings per share between $1.87 and $2.13. We continue to expect our 2021 annual operating tax rate to be about 14%."

Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.

Earnings summary

Amounts are in millions of dollars, except per-share amounts.

 

Q2 2021

 

Q2 2020

 

Change

Revenue

$

4,580

 

$

3,239

 

41%

Operating profit

$

2,213

 

$

1,228

 

80%

Net income

$

1,931

 

$

1,380

 

40%

Earnings per share

$

2.05

 

$

1.48

 

39%

 

Cash generation

Amounts are in millions of dollars.

     

Trailing 12 Months

 

Q2 2021

 

Q2 2021

 

Q2 2020

 

Change

Cash flow from operations

$

2,121

 

$

7,539

 

$

6,317

 

19%

Capital expenditures

$

386

 

$

1,052

 

$

603

 

74%

Free cash flow

$

1,735

 

$

6,487

 

$

5,714

 

14%

Free cash flow % of revenue

   

38.7%

 

41.7%

   

 

Cash return

Amounts are in millions of dollars.

     

Trailing 12 Months

 

Q2 2021

 

Q2 2021

 

Q2 2020

 

Change

Dividends paid

$

942

 

$

3,644

 

$

3,226

 

13%

Stock repurchases

$

146

 

$

276

 

$

3,468

 

(92)%

Total cash returned

$

1,088

 

$

3,920

 

$

6,694

 

(41)%

 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

Consolidated Statements of Income

 

For Three Months Ended

June 30,

 

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

 

2021

 

2020

 

Revenue

 

$

4,580

 

$

3,239

 

Cost of revenue (COR)

 

1,503

 

1,157

 

Gross profit

 

3,077

 

2,082

 

Research and development (R&D)

 

391

 

379

 

Selling, general and administrative (SG&A)

 

425

 

401

 

Acquisition charges

 

48

 

50

 

Restructuring charges/other

 

 

24

 

Operating profit

 

2,213

 

1,228

 

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

 

73

 

99

 

Interest and debt expense

 

44

 

48

 

Income before income taxes

 

2,242

 

1,279

 

Provision for income taxes

 

311

 

(101)

 

Net income

 

$

1,931

 

$

1,380

 
         

Diluted earnings per common share

 

$

2.05

 

$

1.48

 
         

Average shares outstanding (millions):

       

Basic

 

923

 

916

 

Diluted

 

937

 

927

 
         

Cash dividends declared per common share

 

$

1.02

 

$

.90

 
         
 
 

Supplemental Information

(Quarterly, except as noted)

     

Our annual operating tax rate, which does not include discrete tax items, was 14% for the current period and 13% for the year-ago period.

     

Provision for income taxes is based on the following:

   
         

Operating taxes (calculated using the estimated annual effective tax rate)

 

$

322

 

$

164

 

Discrete tax items

 

(11)

 

(265)

 

Provision for income taxes (effective taxes)

 

$

311

 

$

(101)

 
         

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

 

$

1,931

 

$

1,380

 

Income allocated to RSUs

 

(7)

 

(7)

 

Income allocated to common stock for diluted EPS

 

$

1,924

 

$

1,373

 

 

 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

 

Consolidated Balance Sheets

 

June 30,

 

(Millions of dollars, except share amounts)

 

2021

 

2020

 

Assets

         

Current assets:

         

Cash and cash equivalents

 

$

3,649

 

$

4,294

 

Short-term investments

 

3,741

 

666

 

Accounts receivable, net of allowances of ($9) and ($9)

 

1,591

 

1,176

 

Raw materials

 

201

 

182

 

Work in process

 

996

 

977

 

Finished goods

 

659

 

977

 

Inventories

 

1,856

 

2,136

 

Prepaid expenses and other current assets

 

340

 

216

 

Total current assets

 

11,177

 

8,488

 

Property, plant and equipment at cost

 

6,235

 

5,741

 

Accumulated depreciation

 

(2,557)

 

(2,540)

 

Property, plant and equipment

 

3,678

 

3,201

 

Goodwill

 

4,362

 

4,362

 

Acquisition-related intangibles

 

57

 

240

 

Deferred tax assets

 

326

 

236

 

Capitalized software licenses

 

99

 

141

 

Overfunded retirement plans

 

254

 

223

 

Other long-term assets

 

650

 

554

 

Total assets

 

$

20,603

 

$

17,445

 
           

Liabilities and stockholders’ equity

     

Current liabilities:

     

Current portion of long-term debt

 

$

499

 

$

551

 

Accounts payable

 

587

 

409

 

Accrued compensation

 

531

 

505

 

Income taxes payable

 

107

 

179

 

Accrued expenses and other liabilities

 

477

 

519

 

Total current liabilities

 

2,201

 

2,163

 

Long-term debt

 

5,752

 

6,245

 

Underfunded retirement plans

 

131

 

99

 

Deferred tax liabilities

 

87

 

60

 

Other long-term liabilities

 

1,279

 

1,234

 

Total liabilities

 

9,450

 

9,801

 

Stockholders’ equity:

         

Preferred stock, $25 par value. Authorized – 10,000,000 shares; none issued

 

 

 

Common stock, $1 par value. Authorized – 2,400,000,000 shares

     

Shares issued – 1,740,815,939

 

1,741

 

1,741

 

Paid-in capital

 

2,485

 

2,182

 

Retained earnings

 

43,846

 

40,780

 

Treasury common stock at cost

         

Shares: June 30, 2021 – 817,729,258; June 30, 2020 – 825,225,307

 

(36,596)

 

(36,725)

 

Accumulated other comprehensive income (loss), net of taxes (AOCI)

 

(323)

 

(334)

 

Total stockholders’ equity

 

11,153

 

7,644

 

Total liabilities and stockholders’ equity

 

$

20,603

 

$

17,445

 

 

 

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

 

 

 

Segment results

Amounts are in millions of dollars.

 

Q2 2021

 

Q2 2020

 

Change

Analog:

         

Revenue

$

3,464

 

$

2,434

 

42%

Operating profit

$

1,778

 

$

1,053

 

69%

Embedded Processing:

         

Revenue

$

780

 

$

546

 

43%

Operating profit

$

312

 

$

125

 

150%

Other:

         

Revenue

$

336

 

$

259

 

30%

Operating profit*

$

123

 

$

50

 

146%

 

* Includes acquisition charges and restructuring charges/other.

 

Non-GAAP financial information

This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow was calculated by subtracting capital expenditures from the most directly comparable GAAP measure, cash flows from operating activities (also referred to as cash flow from operations).

We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.

Reconciliation to the most directly comparable GAAP measures is provided in the table below.

Amounts are in millions of dollars.

 

For 12 Months Ended

June 30,

   
 

2021

 

2020

 

Change

Cash flow from operations (GAAP)

$

7,539

 

$

6,317

 

19%

Capital expenditures

(1,052)

 

(603)

   

Free cash flow (non-GAAP)

$

6,487

 

$

5,714

 

14%

         

Revenue

$

16,762

 

$

13,689

   
           

Cash flow from operations as a percentage of revenue (GAAP)

45.0%

 

46.1%

   

Free cash flow as a percentage of revenue (non-GAAP)

38.7%

 

41.7%

   

 

This release also includes references to an annual operating tax rate, a non-GAAP term we use to describe the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term annual operating tax rate helps differentiate from the effective tax rate, which includes discrete tax items.

Notice regarding forward-looking statements

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:

  • The duration and scope of the COVID-19 pandemic, government and other third-party responses to it and the consequences for the global economy, including to our business and the businesses of our suppliers, customers and distributors;
  • Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies;
  • Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts;
  • Our ability to compete in products and prices in an intensely competitive industry;
  • Evolving cybersecurity and other threats relating to our information technology systems or those of our customers or suppliers;
  • Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings;
  • Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, and our timely implementation of new manufacturing technologies and installation of manufacturing equipment;
  • Availability and cost of raw materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology;
  • Product liability, warranty or other claims relating to our products, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts;
  • Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability;
  • Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets;
  • A loss suffered by one of our customers or distributors with respect to TI-consigned inventory;
  • Financial difficulties of our distributors or semiconductor distributors’ promotion of competing product lines to our detriment; or disputes with current or former distributors;
  • Losses or curtailments of purchases from key customers or the timing and amount of distributor and other customer inventory adjustments;
  • Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment;
  • Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims;
  • Instability in the global credit and financial markets;
  • Increases in health care and pension benefit costs;
  • Our ability to recruit and retain skilled personnel, and effectively manage key employee succession; and
  • Impairments of our non-financial assets.

For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of TI’s most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. Our passion to create a better world by making electronics more affordable through semiconductors is alive today, as each generation of innovation builds upon the last to make our technology smaller, more efficient, more reliable and more affordable – making it possible for semiconductors to go into electronics everywhere. We think of this as Engineering Progress. It’s what we do and have been doing for decades. Learn more at TI.com.

TXN-G

SOURCE Texas Instruments Incorporated