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[ 48 ] TEXAS INSTRUMENTS 2008 ANNUAL REPORT
Non-marketable equity securities and some venture capital funds are stated at cost. Impairments deemed to be other-than-
temporary are expensed in net income. Investments in the remaining venture capital funds are stated using the equity method.
Investments in mutual funds are stated at fair value. Changes in prices of the mutual fund investments are expected to offset related
changes in deferred compensation liabilities such that a 10 percent increase or decrease in the investments’ fair values would not
materially affect operating results. See Note 9 to the Financial Statements for details of equity and other long-term investments.
Quarterly financial data
(Millions of dollars, except per-share amounts)
Quarter
2008 1st 2nd 3rd 4th
Revenue ....................................................... $3,272 $3,351 $3,387 $2,491
Gross profit .................................................... 1,756 1,749 1,643 1,097
Operating profit................................................. 807 833 746 51
Net income..................................................... $662 $588 $563 $107
Earnings per common share:
Basic earnings per common share............................... $0.50 $0.45 $0.43 $0.08
Diluted earnings per common share ............................. $0.49 $0.44 $0.43 $0.08
Quarter
2007 1st 2nd 3rd 4th
Revenue ....................................................... $3,191 $3,424 $3,663 $3,556
Gross profit (a) .................................................. 1,646 1,795 1,997 1,931
Operating profit .................................................. 680 809 1,013 996
Net income ..................................................... $516 $610 $776 $756
Earnings per common share:
Basic earnings per common share................................. $0.36 $0.42 $0.55 $0.55
Diluted earnings per common share................................ $0.35 $0.42 $0.54 $0.54
(a) To conform to the 2008 presentation, amounts have changed from the prior presentation due to the reclassification of
restructuring costs previously reported in cost of revenue ($9 million for the first quarter, $11 million for the second quarter,
$13 million for the third quarter and $4 million for the fourth quarter).
Included in the results above were the following items:
Quarter
2008 1st 2nd 3rd 4th
Federal research tax credit benefit (a) .......................................... $ — $ — $ — $ 67
Restructuring expense (b) .................................................... $ — $ — $ — $ 254
2007 1st 2nd 3rd 4th
Gain on sale of asset (c) ....................................................... $ — $ — $ 39 $ —
Restructuring expense (b) ...................................................... $14 $17 $15 $ 6
(a) The U.S. federal research tax credit was reinstated in October 2008 and was retroactive to the beginning of 2008.
(b) See Note 2 to the Financial Statements for additional information.
(c) Reflects the gain on the sale of our broadband digital subscriber line (DSL) customer-premises equipment semiconductor product
line to Infineon Technologies AG for $61 million and recognizing a pre-tax gain of $39 million in cost of revenue.