Investor Presentaiton

The following table presents the aggregate maturities of investments in debt securities classified as available for sale as of December 31, 2016: Due One year or less One to two years Fair Value $ 3,254 25 Other-than-temporary declines and impairments in the values of these investments recognized in OI&E were not material in 2016, 2015 and 2014. Fair-value considerations We measure and report certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The three-level hierarchy discussed below indicates the extent and level of judgment used to estimate fair-value measurements. • • • Level 1 - Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities as of the reporting date. Level 2-Uses inputs other than Level 1 that are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data. We utilize a third-party data service to provide Level 2 valuations. We verify these valuations for reasonableness relative to unadjusted quotes obtained from brokers or dealers based on observable prices for similar assets in active markets. Level 3- Uses inputs that are unobservable, supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models that utilize management estimates of market participant assumptions. As of December 31, 2016 and 2015, we had no Level 3 assets or liabilities, other than certain assets held by our postretirement plans. The following are our assets and liabilities that were accounted for at fair value on a recurring basis. These tables do not include cash on hand, assets held by our postretirement plans, or assets and liabilities that are measured at historical cost or any basis other than fair value. Assets: Money market funds Corporate obligations U.S. government agency and Treasury securities Mutual funds Total assets Liabilities: Deferred compensation Total liabilities Level 1 December 31, 2016 Level 2 Total Level 1 December 31, 2015 Level 2 Total $ 346 $ - - 2,042 201 651 240 - $ 346 651 2,282 201 $ 395 $ $ 395 417 1,828 350 187 — 417 2,178 187 $2,589 $ 891 $ 3,480 $ 2,410 $ 767 $ 3,177 $ 218 - $ 218 $ 198 $ $ 198 $ 218 $ SA $ 218 $ 198 $ $ 198 47 TEXAS INSTRUMENTS . 2016 FORM 10-K FORM 10-K

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