Texas Instruments 2012 Annual Report Download - page 48

ANNUAL
REPORT
TEXAS INSTRUMENTS46 • 2012 ANNUAL REPORT
Restructuring charges/other of $112 million for 2011 were associated with the action initiated to close certain manufacturing facilities
in Texas and Japan. Restructuring charges/other for 2010 included $33 million of restructuring charges associated with pension benefit
settlements related to actions taken in 2009, offset by a gain of $144 million from the divestiture of a product line included in Other.
Operating profit was $2.99 billion, or 21.8 percent of revenue, compared with $4.51 billion, or 32.3 percent of revenue, in 2010. The
decrease was due to, in decreasing order, lower gross profit, higher total acquisition-related charges, higher operating expenses and a
gain on the divestiture of a product line in 2010.
OI&E for 2011 was income of $5 million. This was $32 million lower than in 2010 due to an expense in 2011 associated with a
settlement related to a divested business.
Interest and debt expense was $42 million. This included interest and amortization of debt expense associated with our issuance of
new debt in 2011 and the assumption of debt as a result of our acquisition of National.
The tax provision for 2011 was $719 million compared with $1.32 billion for the prior year. The decrease was primarily due to lower
income before income taxes.
Net income was $2.24 billion, a decrease of $992 million from 2010. EPS for 2011 was $1.88 compared with $2.62 for 2010. EPS
benefited $0.07 from 2010 due to a lower number of average shares outstanding as a result of our stock repurchase program.
Segment results
A detailed discussion of our segment results appears below.
Analog
2011 2010 Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,375 $5,979 7%
Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,693 1,876 -10%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.6% 31.4%
Restructuring charges/other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 13
* Included in Operating profit
Analog revenue increased $396 million, or 7 percent, from 2010 primarily due to the inclusion of a partial year of SVA, and to a lesser
extent, increased shipments of Power Management and High Volume Analog & Logic products. Partially offsetting these increases was
lower revenue from High Performance Analog due to normal price declines.
Operating profit was $1.69 billion, or 26.6 percent of revenue. This was a decrease of $183 million, or 10 percent, compared with
2010 due to higher operating expenses from the inclusion of a partial year of SVA and, to a lesser extent, lower gross profit resulting
from lower factory utilization.
Embedded Processing
2011 2010 Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,110 $2,073 2%
Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 491 -25%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.4% 23.7%
Restructuring charges/other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 6
* Included in Operating profit
Embedded Processing revenue increased $37 million, or 2 percent, compared with 2010 due to increased shipments of products sold
into automotive and communications infrastructure applications. Partially offsetting these increases was lower revenue from catalog
products resulting from a less favorable mix of catalog products shipped.
Operating profit was $368 million, or 17.4 percent of revenue. This was a decrease of $123 million, or 25 percent, compared with
2010 primarily due to lower gross profit, and to a lesser extent, higher operating expenses. Lower gross profit was primarily due to
lower factory utilization and the effect of the mix of products, which contributed about equally to the change.
Wireless
2011 2010 Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,518 $2,978 -15%
Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 683 -40%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.4% 22.9%
Restructuring charges/other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 10
* Included in Operating profit