Reconciliation of Non-GAAP Financial Measure




The following describes TI’s results excluding the impact of restructuring charges. Management believes this presentation provides investors additional insight into the underlying business conditions and results.

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Non-GAAP Reconciliation
(Millions of dollars, except share and per-share amounts)
 
    For the three
months ended
June 30, 2009
Operating profit as reported $ 343   
Pre-tax restructuring charges   85   
Operating profit excluding restructuring charges $ 428   
 
Revenue $ 2,457   
 
Operating profit percentage of revenue excluding
restructuring charges
  17.4%


 
    For the three
months ended
June 30, 2009
Net income as reported $ 260   
Pre-tax restructuring charges   85   
Tax impact of restructuring charges   (30)  
Net income excluding restructuring charges $ 315   
 
Average diluted shares outstanding   1,272   
 
Diluted earnings per share excluding the impact of
restructuring charges
$ .25   



Non-GAAP Reconciliation of Revenue Without Our Baseband Product Line

The following describes TI's results excluding our baseband product line, which we are winding down over the next few years. Management believes this presentation provides investors additional insight into our performance.


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Non-GAAP Reconciliation
(Millions of dollars, except share and per-share amounts)
                     
    For the three
months ended
June 30, 2009
    For the three
months ended
Mar. 31, 2009
  % change     For the three
months ended
June 30, 2008
  % change
Net revenue as reported $ 2,457     $ 2,086     18%     $ 3,351     -27%  
Baseband revenue   410       400           681      
Net revenue without baseband $ 2,047     $ 1,686     21%     $ 2,670     -23%