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TEXAS INSTRUMENTS 2014 PROXY STATEMENT • C-1
PROXY
STATEMENT
APPENDIX
NON-GAAP RECONCILIATIONS
This proxy statement refers to (1) revenue excluding legacy wireless products (baseband products, and OMAP applications processors
and connectivity products sold into smartphone and consumer tablet applications) and (2) ratios based on free cash flow. These
are financial measures that were not prepared in accordance with generally accepted accounting principles in the U.S. (non-GAAP
measures). Free cash flow is a non-GAAP measure 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 revenue excluding
legacy wireless products provides insight into our underlying business results. We believe free cash flow and these ratios based on it
provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to investors, as
well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures and are
reconciled in the tables below to the most directly comparable GAAP measures.
Revenue excluding legacy wireless products (amounts in millions of dollars)
For Years Ended December 31, 2013
One-Year
Growth
2013
Three-Year
CAGR*2013 2012 2011 2010
Revenue (GAAP) . . . . . . . . . . . . . . . . . . . . . . . $12,205 $12,825 $13,735 $13,966 -4.8% -4.4%
Legacy wireless revenue . . . . . . . . . . . . . . . . . . . (470) (1,200) (2,391) (2,870)
TI Revenue less legacy wireless revenue (non-GAAP) . . . . . $11,735 $11,625 $11,344 $11,096 0.9% 1.9%
* CAGR (compound annual growth rate) is calculated using the formula: (Ending Value/Beginning Value)1/number of years-1.
Free cash flow as a percentage of revenue (amounts in millions of dollars)
Total
Percentage of Revenue
For Years Ended December 31, For Years Ended December 31,
Total2013 2012 2011 2013 2012 2011
Revenue . . . . . . . . . . . . . . . . . . . $12,205 $12,825 $13,735 $38,765
Cash flow from operations (GAAP) . . . . . . $ 3,384 $ 3,414 $ 3,256 $10,054 27.7% 26.6% 23.7% 25.9%
Capital expenditures . . . . . . . . . . . . . (412) (495) (816) (1,723)
Free cash flow (non-GAAP) . . . . . . . . . . $ 2,972 $ 2,919 $ 2,440 $ 8,331 24.4% 22.8% 17.8% 21.5%
Total cash returned to shareholders as a percentage of free cash flow (amounts in millions of dollars)
For Years Ended December 31,
Total2013 2012 2011
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,175 $ 819 $ 644 $2,638
Stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,868 1,800 1,973 6,641
Total cash returned to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,043 $2,619 $2,617 $9,279
Percentage of Cash flow from operations (GAAP) . . . . . . . . . . . . . . . . . . . . . 119.5% 76.7% 80.4% 92.3%
Percentage of free cash flow (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . 136.0% 89.7% 107.3% 111.4%