Investor Presentaiton
FORM 10-K
Net income was $3.60 billion, an increase of $609 million, or 20 percent. EPS was $3.48 compared with $2.82. EPS benefited
$0.13 in 2016 due to the application of the new accounting standard related to stock compensation.
Segment results - 2016 compared with 2015
Analog (included High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon
Valley Analog (SVA) product lines)
Revenue
Operating profit
Operating profit % of revenue
2016
2015
Change
$ 8,536
$ 8,339
2%
3,380
39.6%
3,048
36.6%
11%
Analog revenue increased primarily due to SVA and HPA. Power also grew, but to a lesser extent, while HVAL declined due to the
mix of products shipped. Operating profit increased due to higher gross profit, which benefited from lower manufacturing costs.
Embedded Processing (included Processors, Microcontrollers and Connectivity product lines)
Revenue
Operating profit
Operating profit % of revenue.
2016
2015
Change
$ 3,023
$2,787
8%
801
596
34%
26.5% 21.4%
Embedded Processing revenue increased due to, in declining order, Processors, Microcontrollers and Connectivity. Processors
revenue increased due to the mix of products shipped. Operating profit increased primarily due to higher revenue and associated
gross profit.
Other (included DLP products, calculators, custom ASICS and royalties)
Revenue
Operating profit
*
Operating profit % of revenue
2016
2015
Change
$1,811 $1,874
(3)%
618
630
34.1% 33.6%
(2)%
Includes Acquisition charges and Restructuring charges/other
Other revenue decreased due to, in declining order, lower royalties, custom ASIC products and calculators. This decrease was
partially offset by growth in DLP products. Operating profit decreased $12 million.
Prior results of operations
In 2015, Analog revenue grew 3 percent, and Embedded Processing revenue grew 2 percent. Analog and Embedded Processing
represented 86 percent of revenue in 2015, up from 83 percent in 2014. Gross margin was 58.2 percent for 2015.
In 2015, cash flows from operations were $4.40 billion, up from $4.05 billion in 2014. Free cash flow in 2015, was 29.6 percent of
revenue, up from 28.1 percent in 2014. During 2015, we returned $4.19 billion of cash to investors through a combination of stock
repurchases and dividends.
Details of financial results
2015 compared with 2014
Revenue of $13.00 billion was about even with 2014, as higher revenue from Analog and Embedded Processing was offset by
lower revenue from Other. Our 2015 revenue was negatively affected by about $150 million from changes in foreign currency
exchange rates.
Gross profit was $7.56 billion, an increase of $133 million, or 2 percent, due to lower manufacturing costs. Gross profit margin was
58.2 percent of revenue compared with 56.9 percent.
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TEXAS INSTRUMENTS . 2016 FORM 10-KView entire presentation