Investor Presentaiton
Operating expenses were $1.28 billion for R&D and $1.75 billion for SG&A. R&D expense decreased $78 million, or 6 percent, and
SG&A decreased $95 million, or 5 percent. Both comparisons reflect savings from ongoing efforts across the company to align
costs with growth opportunities, including the completed restructuring actions in Embedded Processing and Japan. These
decreases were partially offset by higher compensation-related costs.
Acquisition charges were related to our 2011 acquisition of National Semiconductor and were $329 million, about even with 2014.
These non-cash charges were primarily from the amortization of intangible assets.
Restructuring charges/other was a net credit of $71 million, which included gains on sales of assets of $83 million that were
partially offset by $12 million related to restructuring charges and other credits. This compared with a net credit of $51 million in
2014, reflecting gains on sales of assets of $75 million that were partially offset by restructuring charges and other expenses of
$24 million. These amounts are included in Other for segment reporting purposes.
Operating profit was $4.27 billion, or 32.9 percent of revenue, compared with $3.95 billion, or 30.3 percent of revenue, in 2014.
The income tax provision was $1.23 billion compared with $1.05 billion. The increase in the total tax provision was due to higher
income before income taxes and, to a lesser extent, a lower benefit from non-U.S. effective tax rates. Our effective tax rate was
29 percent in 2015 and 27 percent in 2014.
Net income was $2.99 billion, an increase of $165 million, or 6 percent, from 2014. EPS was $2.82 compared with $2.57 in 2014.
Segment results
-
2015 compared with 2014
Analog
Revenue
Operating profit
2015
2014
Change
$ 8,339
$ 8,104
3%
3,048
36.6%
2,786
9%
34.4%
Operating profit % of revenue.
Analog revenue increased primarily due to HVAL. Power and SVA also grew, but to a lesser extent. HPA declined due to the mix of
products shipped. Operating profit increased due to higher revenue and associated gross profit and, to a lesser extent, lower
manufacturing costs.
Embedded Processing
Revenue
Operating profit
Operating profit % of revenue
2015
$2,787
596
21.4%
2014
Change
$ 2,740
384
2%
55%
14.0%
Embedded Processing revenue increased due about equally to Connectivity and Microcontrollers, which together offset a decline in
Processors. Operating profit increased primarily due to lower operating expenses.
Other
Revenue
Operating profit *
Operating profit % of revenue
*
Includes Acquisition charges and Restructuring charges/other
2015
2014
Change
$ 1,874
$ 2,201
(15)%
630
777
(19)%
33.6%
35.3%
Other revenue declined primarily due to custom ASICs. Revenue from DLP products also declined, but to a lesser extent. Operating
profit declined primarily due to lower revenue and associated gross profit.
TEXAS INSTRUMENTS . 2016 FORM 10-K
19
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