TI reports 3Q15 financial results and shareholder returns

Capital expenditures for the past 12 months were 4 percent of revenue. The company's long-term expectation is about 4 percent.

Cash return

Amounts are in millions of dollars.

The company's targeted cash return is 100 percent of free cash flow plus proceeds from exercises of equity compensation minus net debt retirement.

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
(Millions of dollars, except share and per-share amounts)

	For Three Months Ended
	September 30,
	2015		2014
Revenue	$	3,429	$	3,501
Cost of revenue (COR)		1,432		1,457
Gross profit		1,997		2,044
Research and development (R&D)		316		332
Selling, general and administrative (SG&A)		434		463
Acquisition charges		83		83
Restructuring charges/other		—		(9)
Operating profit		1,164		1,175
Other income (expense), net (OI&E)		6		3
Interest and debt expense		22		23
Income before income taxes		1,148		1,155
Provision for income taxes		350		329
Net income	$	798	$	826

Diluted earnings per common share	$	.76	$	.76

Average diluted shares outstanding (millions)		1,035		1,074

Cash dividends declared per common share	$	.34	$	.30

As a result of accounting rule ASC 260, which requires a portion of Net income to be allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents, diluted EPS is calculated using the following:


Net income	$	798	$	826
Income allocated to RSUs		(11)		(13)
Income allocated to common stock for diluted EPS	$	787	$	813