Texas Instruments 2015 Annual Report Download - page 25

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FORM 10-K
Acquisition charges were related to our 2011 acquisition of National and were $341 million in 2013 compared with $450 million in
2012. The charges were primarily from the amortization of intangible assets. The decrease from 2012 was due to the nonrecurrence of
integration-related expenses.
Restructuring charges/other was a net credit of $189 million, reflecting the $315 million gain from the technology transfer, partially
offset by restructuring charges of $126 million. This compared with a net charge of $264 million in 2012, which included restructuring
and other charges of $408 million, partially offset by a $144 million gain from the transfer of the obligations and assets of a portion of
our Japan pension program from the pension trust to the government of Japan. These net amounts are all included in Other. For details
on restructuring actions, see Note 4 to the financial statements.
Operating profit was $2.83 billion, or 23.2 percent of revenue, compared with $1.97 billion, or 15.4 percent of revenue, in 2012.
The income tax provision was $592 million compared with $176 million for 2012. The increase in the total tax provision was due to
higher income before income taxes and, to a lesser extent, lower discrete tax benefits. The discrete tax benefits were $79 million in
2013, primarily due to the effect of the reinstatement of the federal research tax credit for 2012. In 2012, the discrete tax benefits were
$252 million, primarily due to additional U.S. tax benefits for manufacturing related to prior years. Our annual effective tax rates were
24 percent in 2013 and 22 percent in 2012.
Net income was $2.16 billion, an increase of $403 million, or 23 percent, from 2012. EPS was $1.91 compared with $1.51 for 2012.
EPS benefited $0.06 from 2012 due to a lower number of average shares outstanding as a result of our stock repurchase program.
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Analog
2013 2012 Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,194 $ 6,998 3%
Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,859 1,650 13%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.8% 23.6%
Analog revenue increased primarily due to growth in Power. Revenue from SVA and HPA also increased, but to a lesser extent. HVAL
revenue decreased primarily due to a less favorable mix of products shipped. Operating profit increased primarily due to higher gross
profit that benefited from higher revenue and lower manufacturing costs. This increase in gross profit was partially offset by higher
operating expenses.
Embedded Processing
2013 2012 Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,450 $ 2,257 9%
Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 158 17%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6% 7.0%
Embedded Processing revenue increased primarily due to higher revenue from Microcontrollers, and to a lesser extent, Processor and
Connectivity. Operating profit increased due to higher revenue and associated gross profit, partially offset by higher operating expenses.
Other
2013 2012 Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,561 $ 3,570 -28%
Operating profit * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788 165 378%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.8% 4.6%
* Includes Acquisition charges and Restructuring charges/other
Revenue from Other decreased primarily due to lower revenue from legacy wireless products. Operating profit from Other increased due
to lower operating expenses and Restructuring charges/other. These decreases were partially offset by lower revenue and associated
gross profit.