TEXAS INSTRUMENTS INC
For the period ended Jun 30, 2024. Filed Jul 24, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 24, 2024
TXN$277.36-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-24.
0000097476-24-000021
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-24.
0000097476-24-000030
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 58 previous paragraphs and 76 current paragraphs.
34 unchanged; 22 reworded; 13 added; 2 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 4 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Gross profit of $2.21 billion was down $699 million, or 24%, primarily due to lower revenue and, to a lesser extent, higher manufacturing unit costs associated with our planned capacity expansions and reduced factory loadings. As a percentage of revenue, gross profit decreased to 57.8% from 64.2%. Sequentially, gross profit margin increased 60 basis points, primarily due to higher revenue as well as lower manufacturing unit costs due to increased factory loadings and more manufacturing internally, with more wafers on 300mm.
Current report
Net income was $1.13 billion compared with $1.72 billion. EPS was $1.22 compared with $1.87.
Current report
Second quarter 2024 segment results
Current report
Results of operations – first six months of 2024 compared with first six months of 2023
Current report
Operating expenses were $1.90 billion compared with $1.87 billion.
Current report
Operating profit was $2.53 billion, or 33.9% of revenue, compared with $3.91 billion, or 43.8% of revenue.
Current report
Net income was $2.23 billion compared with $3.43 billion. EPS was $2.42 compared with $3.72.
Current report
Year-to-date segment results
Current report
Analog
Current report
Embedded Processing
Current report
Other
Current report
Other revenue decreased $165 million, and operating profit decreased $20 million.
Current report
Includes a cash benefit of $312 million from the U.S. CHIPS and Science Act ITC used to reduce income taxes payable for the twelve months ended June 30, 2024
Removed paragraphs (2)
Previous report
Net income was $1.11 billion compared with $1.71 billion. EPS was $1.20 compared with $1.85.
Previous report
First quarter 2024 segment results
Reworded paragraphs (22)
Previous wording
Our first quarter revenue was $3.66 billion, net income was $1.11 billion and earnings per share (EPS) were $1.20.
Current wording
Our second quarter revenue was $3.82 billion, net income was $1.13 billion and earnings per share (EPS) were $1.22.
Previous wording
Revenue decreased 16% from the same quarter a year ago and 10% sequentially, as revenue declined across all end markets.
Current wording
Revenue decreased 16% from the same quarter a year ago and increased 4% sequentially. Industrial and automotive continued to decline sequentially, while all other end markets grew.
Previous wording
Our cash flow from operations of $6.3 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $940 million.
Current wording
Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion.
Previous wording
Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.3 billion in capital expenditures and returned $4.8 billion to shareholders.
Current wording
Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.0 billion in capital expenditures and returned $4.9 billion to shareholders.
Previous wording
Results of operations – first quarter 2024 compared with first quarter 2023
Current wording
Results of operations – second quarter 2024 compared with second quarter 2023
Previous wording
Operating expenses (R&D and SG&A) were $933 million compared with $929 million.
Current wording
Operating expenses (R&D and SG&A) were $963 million compared with $938 million.
Previous wording
Operating profit was $1.29 billion, or 35.1% of revenue, compared with $1.93 billion, or 44.2% of revenue.
Current wording
Operating profit was $1.25 billion, or 32.7% of revenue, compared with $1.97 billion, or 43.5% of revenue.
Previous wording
OI&E was $123 million of income compared with $80 million of income, primarily due to higher interest income.
Current wording
OI&E was $130 million of income compared with $119 million of income, primarily due to higher interest income.
Previous wording
Interest and debt expense of $116 million increased $48 million due to the issuance of additional long-term debt. See Note 6 to the financial statements.
Current wording
Interest and debt expense of $131 million increased $42 million due to the issuance of additional long-term debt. See Note 6 to the financial statements.
Previous wording
Our provision for income taxes was $188 million compared with $238 million. This decrease was due to lower income before income taxes, partially offset by discrete tax items.
Current wording
Our provision for income taxes was $120 million compared with $280 million. This decrease was due to lower income before income taxes and higher discrete tax benefits.
Previous wording
Analog revenue decreased in both product lines, led by Signal Chain. Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
Current wording
Analog revenue decreased due to the mix of products shipped in both product lines, led by Signal Chain. Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
Previous wording
Other revenue decreased $85 million, and operating profit increased $50 million.
Current wording
Other revenue decreased $80 million, and operating profit decreased $70 million.
Previous wording
Revenue of $3.66 billion decreased $718 million, or 16%, primarily due to lower revenue from Analog and, to a lesser extent, Embedded Processing.
Current wording
Revenue of $7.48 billion decreased $1.43 billion, or 16%, primarily due to lower revenue from Analog and, to a lesser extent, Embedded Processing.
Previous wording
Gross profit of $2.10 billion was down $768 million, or 27%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with reduced factory loadings and our planned capacity expansions. As a percentage of revenue, gross profit decreased to 57.2% from 65.4%.
Current wording
Gross profit of $4.31 billion was down $1.47 billion, or 25%, primarily due to lower revenue and, to a lesser extent, higher manufacturing unit costs associated with reduced factory loadings and our planned capacity expansions. As a percentage of revenue, gross profit decreased to 57.5% from 64.8%.
Previous wording
At the end of the first quarter of 2024, total cash (cash and cash equivalents plus short-term investments) was $10.39 billion, an increase of $1.82 billion from the end of 2023.
Current wording
At the end of the second quarter of 2024, total cash (cash and cash equivalents plus short-term investments) was $9.69 billion, an increase of $1.11 billion from the end of 2023.
Previous wording
Accounts receivable were $1.67 billion, a decrease of $116 million compared with the end of 2023. Days sales outstanding for the first quarter of 2024 were 41 compared with 39 at the end of 2023.
Current wording
Accounts receivable were $1.71 billion, a decrease of $76 million compared with the end of 2023. Days sales outstanding for the second quarter of 2024 were 40 compared with 39 at the end of 2023.
Previous wording
Inventory was $4.08 billion, an increase of $84 million from the end of 2023. Days of inventory for the first quarter of 2024 were 235 compared with 219 at the end of 2023.
Current wording
Inventory was $4.11 billion, an increase of $107 million from the end of 2023. Days of inventory for the second quarter of 2024 were 229 compared with 219 at the end of 2023.
Previous wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments and access to debt markets. We also have a variable-rate, revolving credit facility. As of March 31, 2024, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first three months of 2024 were $1.02 billion, a decrease of $143 million from the year-ago period primarily due to lower net income, partially offset by lower cash used for working capital.
Current wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments and access to debt markets. We also have a variable-rate, revolving credit facility. As of June 30, 2024, our credit facility was undrawn, and we had no commercial paper outstanding. Cash flows from operating activities for the first six months of 2024 were $2.59 billion, an increase of $29 million from the year-ago period primarily due to lower cash used for working capital, partially offset by lower net income. Cash flows from operating activities for the first six months of 2024 include a cash benefit of $312 million from the U.S. CHIPS and Science Act investment tax credit used to reduce income taxes payable.
Previous wording
Investing activities for the first three months of 2024 used $3.33 billion compared with $28 million of cash provided in the year-ago period. Capital expenditures were $1.25 billion compared with $982 million in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods. Short-term investments used cash of $2.23 billion compared with $1.01 billion of cash provided in the year-ago period.
Current wording
Investing activities for the first six months of 2024 used $3.33 billion compared with $2.36 billion in the year-ago period. Capital expenditures were $2.31 billion compared with $2.43 billion in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods. Short-term investments used cash of $1.20 billion compared with $31 million of cash provided in the year-ago period.
Previous wording
As we continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity planning, our capital expenditures are expected to remain at elevated levels. In August 2022, the U.S. government enacted the U.S. CHIPS and Science Act, which provides funding for manufacturing grants and research investments and establishes a 25% investment tax credit for certain investments in U.S. semiconductor manufacturing. We will begin receiving the cash benefit associated with the investment tax credit for qualifying capital expenditures in the second quarter of 2024. See Note 9 to the financial statements. We have also submitted applications for the manufacturing grants provided by the legislation.
Current wording
As we continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity planning, our capital expenditures are expected to remain at elevated levels. In August 2022, the U.S. government enacted the U.S. CHIPS and Science Act, which provides funding for manufacturing grants and research investments and establishes a 25% investment tax credit for certain investments in U.S. semiconductor manufacturing. We began receiving the cash benefit associated with the investment tax credit for qualifying capital expenditures in the second quarter of 2024. See Note 9 to the financial statements. We have also submitted applications for the manufacturing grants provided by the legislation.
Previous wording
Financing activities for the first three months of 2024 provided $1.83 billion compared with $239 million in the year-ago period. In 2024, we received net proceeds of $2.98 billion from the issuance of fixed-rate, long-term debt. In the year-ago period, we received net proceeds of $1.40 billion from the issuance of fixed-rate, long-term debt. Dividends paid were $1.18 billion compared with $1.13 billion in the year-ago period, reflecting an increased dividend rate. We used $3 million to repurchase shares of our common stock compared with $103 million in the year-ago period. Employee exercises of stock options provided cash proceeds of $65 million compared with $85 million in the year-ago period.
Current wording
Financing activities for the first six months of 2024 provided $517 million compared with $187 million in the year-ago period. In 2024, we received net proceeds of $2.98 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $300 million. In the year-ago period, we received net proceeds of $3.00 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $500 million. Dividends paid were $2.37 billion compared with $2.25 billion in the year-ago period, reflecting an increased dividend rate. We used $74 million to repurchase 0.4 million shares of our common stock compared with $182 million in the year-ago period to repurchase 1.1 million shares. Employee exercises of stock options provided cash proceeds of $313 million compared with $150 million in the year-ago period.
Previous wording
We had $2.48 billion of cash and cash equivalents and $7.91 billion of short-term investments as of March 31, 2024. We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.
Current wording
We had $2.74 billion of cash and cash equivalents and $6.95 billion of short-term investments as of June 30, 2024. We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Revenue of $3.82 billion decreased $709 million, or 16%, primarily due to lower revenue from Analog and Embedded Processing.
Current report — wording carried from elsewhere
OI&E was $253 million of income compared with $199 million of income, primarily due to higher interest income.
Current report — wording carried from elsewhere
Interest and debt expense of $247 million increased $90 million due to the issuance of additional long-term debt.
Current report — wording carried from elsewhere
Our provision for income taxes was $308 million compared with $518 million. This decrease was due to lower income before income taxes.
Current report — wording carried from elsewhere
Our segment results compared with the year-ago period are as follows:
Current report — wording carried from elsewhere
Analog revenue decreased due to the mix of products shipped in both product lines, led by Signal Chain. Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
Current report — wording carried from elsewhere
Embedded Processing revenue decreased. Operating profit decreased primarily due to lower revenue and associated gross profit.