Reconciliation of Non-GAAP Financial Measure


On April 26, 2010, we held a publicly webcast conference call with analysts to discuss our first-quarter earnings. The table below provides a reconciliation of a non-GAAP item, which was discussed during the conference call, to our first-quarter results prepared in accordance with GAAP. The non-GAAP financial measure was an estimate of operating expenses as a percent of revenue excluding our wireless baseband operations. We provided this information to give investors additional insight into our underlying business conditions, results and expectations.

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars)
 
    For the Three
Months Ended
March 31, 2010
Revenue $ 3,205   
 
Research & development (R&D)   370   
Selling, general & administrative (SG&A)   359   
Total operating expenses $ 729   
 
Total operating expenses % of revenue as reported   23%
 
Revenue $ 3,205   
Baseband revenue   424   
Revenue less baseband $ 2,781   
 
Research & development (R&D)   370   
Selling, general & administrative (SG&A)   359   
Total operating expenses $ 729   
 
Total operating expenses % of revenue less baseband   26%