Investor Presentaiton

FORM 10-K Details of these accounts receivable allowances are as follows: Balance, January 1 Additions charged (credited) to operating results Recoveries and write-offs, net Balance, December 31 8. Valuation of debt and equity investments and certain liabilities Debt and equity investments 2016 2015 2014 $ 7 $ 12 $ 22 10 (5) (9) (1) $ 17 $ 7 $ 12 We classify our investments as available for sale, trading, equity method or cost method. Most of our investments are classified as available for sale. Available-for-sale and trading securities are stated at fair value, which is generally based on market prices or broker quotes. See the fair-value discussion below. Unrealized gains and losses on available-for-sale securities are recorded as an increase or decrease, net of taxes, in AOCI on our Consolidated Balance Sheets. We record other-than-temporary impairments on available-for-sale securities in Ol&E in our Consolidated Statements of Income. We classify certain mutual funds as trading securities. These mutual funds hold a variety of debt and equity investments intended to generate returns that offset changes in certain deferred compensation liabilities. We record changes in the fair value of these mutual funds and the related deferred compensation liabilities in SG&A. Our other investments are not measured at fair value but are accounted for using either the equity method or cost method. These investments consist of interests in venture capital funds and other non-marketable equity securities. Gains and losses from equity-method investments are reflected in OI&E based on our ownership share of the investee's financial results. Gains and losses on cost-method investments are recorded in OI&E when realized or when an impairment of the investment's value is warranted based on our assessment of the recoverability of each investment. Details of our investments are as follows: December 31, 2016 December 31, 2015 Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash and Cash Equivalents Short-Term Investments Long-Term Investments Measured at fair value: Available-for-sale securities: Money market funds 346 $ 395 $ Corporate obligations 107 544 132 285 U.S. government agency and Treasury securities 490 1,792 245 1,933 Trading securities: Mutual funds 201 ― - 187 Total 943 2,336 201 772 2,218 187 Other measurement basis: Equity-method investments Cost-method investments Cash on hand Total 25 9 211 228 $ 1,154 $2,336 $ 235 $1,000 $ 2,218 $ 221 25 22 As of December 31, 2016 and 2015, unrealized gains and losses associated with our available-for-sale investments were not material. We did not recognize any credit losses related to available-for-sale investments in 2016, 2015 and 2014. In 2016, 2015 and 2014, the proceeds from sales, redemptions and maturities of short-term available-for-sale investments were $3.39 billion, $2.89 billion and $2.97 billion, respectively. Gross realized gains and losses from these sales were not material. 46 TEXAS INSTRUMENTS . 2016 FORM 10-K

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