Investor Presentaiton
Financial condition
At the end of 2016, total cash (Cash and cash equivalents plus Short-term investments) was $3.49 billion, an increase of
$272 million from the end of 2015.
Accounts receivable were $1.27 billion at the end of 2016. This was an increase of $102 million compared with the end of 2015.
Days sales outstanding were 33 at the end of both 2016 and 2015.
Inventory was $1.79 billion at the end of 2016. This was an increase of $99 million from the end of 2015. Days of inventory at the
end of 2016 were 126 compared with 115 at the end of 2015.
Liquidity and capital resources
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are Cash and cash equivalents,
Short-term investments and a variable rate, revolving credit facility. Cash flows from operating activities for 2016 was
$4.61 billion, an increase of $217 million from 2015 primarily due to an increase in Net income.
Our revolving credit facility is with a consortium of investment-grade banks and allows us to borrow up to $2 billion until March
2021. This credit facility also serves as support for the issuance of commercial paper. As of December 31, 2016, our credit facility
was undrawn, and we had no commercial paper outstanding.
In 2016, investing activities used $650 million compared with $302 million in 2015. For 2016, Capital expenditures were
$531 million compared with $551 million in 2015. Capital expenditures in both periods were primarily for semiconductor
manufacturing equipment. In 2016, we had purchases of short-term investments, net of proceeds, that used cash of $113 million.
In comparison, in 2015 we had proceeds from short-term investments, net of purchases, that provided cash of $125 million. In
2015, we received $110 million from asset sales, compared with none in 2016.
In 2016, financing activities used $3.81 billion compared with $4.29 billion in 2015. In 2016, we received proceeds of $499 million
from the issuance of fixed-rate, long-term debt (net of original issuance discount) and repaid $1.00 billion of maturing debt. In
2015, we received proceeds of $498 million from the issuance of fixed-rate, long-term debt (net of original issuance discount) and
repaid $1.00 billion of maturing debt. Dividends paid in 2016 were $1.65 billion compared with $1.44 billion in 2015, reflecting
increases in the dividend rate, partially offset by fewer shares outstanding. During 2016, the quarterly dividend increased to $0.50
from $0.38 per share, resulting in an annualized dividend payment of $2.00 per share. During 2015, we increased our quarterly
dividend to $0.38 from $0.34 per share. In 2016, we used $2.13 billion to repurchase 35.5 million shares of our common stock.
This compared with $2.74 billion used in 2015 to repurchase 51.4 million shares. Employee exercises of stock options are also
reflected in Cash flows from financing activities. In 2016, these exercises provided cash proceeds of $472 million compared with
$396 million in 2015.
We had $1.15 billion of Cash and cash equivalents and $2.34 billion of Short-term investments as of December 31, 2016, with our
U.S. entities owning about 80 percent of these amounts combined at the end of 2016. We believe we have the necessary financial
resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and
other business requirements for at least the next 12 months.
FORM 10-K
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TEXAS INSTRUMENTS . 2016 FORM 10-KView entire presentation