Investor Presentaiton
FORM 10-K
As of December 31, 2016, our liability to participants of the deferred compensation plans was $218 million and is recorded in
Deferred credits and other liabilities on our Consolidated Balance Sheets. This amount reflects the accumulated participant
deferrals and earnings thereon as of that date. As of December 31, 2016, we held $201 million in mutual funds related to these
plans that are recorded in Long-term investments on our Consolidated Balance Sheets, and serve as an economic hedge against
changes in fair values of our other deferred compensation liabilities. We record changes in the fair value of the liability and the
related investment in SG&A as discussed in Note 8.
11. Debt and lines of credit
Short-term borrowings
We maintain a line of credit to support commercial paper borrowings, if any, and to provide additional liquidity through bank loans.
As of December 31, 2016, we had a variable-rate revolving credit facility from a consortium of investment-grade banks that allows
us to borrow up to $2 billion until March 2021. The interest rate on borrowings under this credit facility, if drawn, is indexed to the
applicable London Interbank Offered Rate (LIBOR). As of December 31, 2016, our credit facility was undrawn and we had no
commercial paper outstanding.
Long-term debt
In May 2016, we issued a principal amount of $500 million of fixed-rate, long-term debt due in 2022. We incurred $3 million of
issuance and other related costs, which are amortized to Interest and debt expense over the term of the debt. The proceeds of the
offering were $499 million, net of the original issuance discount, and were used toward the repayment of a portion of $1.0 billion
of maturing debt retired in May 2016.
In May 2015, we issued a principal amount of $500 million of fixed-rate, long-term debt due in 2020. We incurred $3 million of
issuance and other related costs, which are amortized to Interest and debt expense over the term of the debt. The proceeds of the
offering were $498 million, net of the original issuance discount, and were used toward the repayment of a portion of the debt that
matured in August 2015. We retired $250 million of maturing debt in April 2015 and another $750 million in August 2015.
In March 2014, we issued an aggregate principal amount of $500 million of fixed-rate, long-term debt, with $250 million due in
2017 and $250 million due in 2021. We incurred $3 million of issuance and other related costs, which are amortized to Interest
and debt expense over the term of the debt. The proceeds of the offering were $498 million, net of the original issuance discount,
and were used toward the repayment of the $1.0 billion of debt that matured in May 2014.
Long-term debt outstanding is as follows:
Notes due 2016 at 2.375%
Notes due 2017 at 0.875%
Notes due 2017 at 6.60% (assumed with National acquisition)
Notes due 2018 at 1.00%
Notes due 2019 at 1.65%
Notes due 2020 at 1.75%
Notes due 2021 at 2.75%
Notes due 2022 at 1.85%
Notes due 2023 at 2.25%
Total debt
Net unamortized discounts, premiums and debt issuance costs
Total debt, including net unamortized discounts, premiums and debt issuance costs
Current portion of long-term debt
December 31,
2016
2015
$ 1,000
250
250
375
375
500
500
750
750
500
500
250
250
500
500
500
3,625
4,125
(16)
(5)
3,609
4,120
(631)
(1,000)
$ 2,978
$ 3,120
Long-term debt.
Interest and debt expense was $80 million in 2016, $90 million in 2015 and $94 million in 2014. This was net of the amortization
of the debt discounts, premiums and debt issuance costs. Cash payments for interest on long-term debt were $88 million in 2016,
$99 million in 2015 and $102 million in 2014. Capitalized interest was not material.
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TEXAS INSTRUMENTS . 2016 FORM 10-KView entire presentation