Texas Instruments Incorporated
Reconciliation of Non-GAAP Financial Measures

On April 23, 2012, we held a publicly webcast conference call with analysts to discuss our first-quarter 2012 earnings. During the call we made the non-GAAP references detailed below. We provided these non-GAAP measures to give investors additional insight into TI's underlying business conditions and results without the impact of some quarter-specific items.

Sequential revenue growth outlook

We made two non-GAAP references to our first-quarter 2012 revenue without the insurance proceeds of about $65 million related to the 2011 Japan earthquake. Both references involved a comparison of our second-quarter 2012 outlook on revenue growth to our first-quarter 2012 results without the benefit of the insurance proceeds. The table below provides a reconciliation of the non-GAAP item to our first-quarter results prepared in accordance with GAAP.


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars)
       
  For Three
Months Ended
March 31, 2012
   
Revenue as reported (GAAP) $      3,121       
Adjustment for insurance proceeds (65)      
Revenue as adjusted (Non-GAAP)         3,056       
       
Revenue outlook as provided For Three
Months Ended
June 30, 2012
  Sequential
Revenue
Growth
   Low-point of range $      3,220      5%   
   Mid-point of range 3,350      10%   
   High-point of range         3,480      14%   


Gross margin

We referred to our first-quarter 2012 gross profit margin without the insurance proceeds of about $65 million related to the 2011 Japan earthquake. The table below provides a reconciliation of this non-GAAP item to our first-quarter results prepared in accordance with GAAP.


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars)
 
 
For Three Months Ended
 
March 31, 2012
 
TI as
Reported
(GAAP)
Adjustments
TI as
Adjusted
(Non-GAAP)
Revenue
$         3,121  
 
(65)   
 
$         3,056  
Cost of revenue
1,590  
 
--    
 
1,590  
Gross profit
1,531  
 
(65)   
 
1,466  
Gross margin
49.0%  
 
   
 
48.0%