Texas Instruments

Texas Instruments Incorporated
Reconciliation of Non-GAAP Financial Measures


On June 11, 2012, we held a publicly webcast conference call with analysts to discuss our second-quarter 2012 business outlook. 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 including or excluding some selected items.


Sequential revenue growth rate without the earthquake proceeds in first quarter 2012

We referred to our second-quarter 2012 sequential revenue growth (to the mid-point of the range in our outlook) as being “right around 10%,” excluding the first-quarter 2012 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
 
TI as
Reported
(GAAP)
Adjustments
TI as
Adjusted
(Non-GAAP)
Revenue as of March 31, 2012 $    3,121        
(65)      
 
$    3,056      
Revenue as of June 30, 2012 at the mid-point
    of the outlook range provided
3,350      
 
--       
 
3,350      
Sequential revenue growth
7.3%   
 
   
 
9.6%   




Adjusted five-year average quarterly sequential revenue growth rates

We also made a non-GAAP reference to TI’s five-year average quarterly sequential growth rates, including revenue reported by National Semiconductor (referred to as Silicon Valley Analog or SVA on the conference call) prior to TI’s September 2011 acquisition and excluding revenue associated with TI’s baseband products.

The tables below provide a reconciliation of these non-GAAP sequential growth rates to TI’s average quarterly sequential growth rates as prepared in accordance with GAAP.


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars)
 
1Q vs. 4Q Five-Year Sequential Growth Rate Average
 
Revenue as reported (GAAP):
 
    For Three Months
Ended Dec. 31
    For Three Months
Ended Mar. 31
  Sequential
Growth Rate
2011/2012 $ 3,420   $ 3,121   -9% 
2010/2011   3,525     3,392   -4% 
2009/2010   3,005     3,205   7%
2008/2009   2,491     2,086   -16%  
2007/2008   3,556     3,272   -8% 
Five-Year Sequential
    Growth Rate Average
            -6%
 
 
Plus National Semiconductor (NSC) revenue not included above:
 
    For Three Months
Ended Dec. 31
    For Three Months
Ended Mar. 31
   
2011/2012 $ n/a   $ n/a    
2010/2011   373     358    
2009/2010   345     368    
2008/2009   422     292    
2007/2008   499     453    
 
 
Less Baseband revenue included in Revenue as reported (GAAP):
 
    For Three Months
Ended Dec. 31
    For Three Months
Ended Mar. 31
   
2011/2012 $ 279   $ 87    
2010/2011   435     334      
2009/2010   465     424      
2008/2009   464     400      
2007/2008   870     720      
 
 
Revenue as adjusted (Non-GAAP):
 
    For Three Months
Ended Dec. 31
    For Three Months
Ended Mar. 31
  Sequential
Growth Rate
2011/2012 $ 3,141   $ 3,034   -3%  
2010/2011   3,463     3,416   -1%  
2009/2010   2,885     3,149   9% 
2008/2009   2,449     1,978   -19% *
2007/2008   3,185     3,005   -6%  
Five-Year Sequential Growth Rate
     Average
            -4%  
Five-Year Sequential Growth Rate
     Average Excluding 1Q09 *
            0%  
               
 
 
2Q vs. 1Q Five-Year Sequential Growth Rate Average
 
Revenue as reported (GAAP):
 
    For Three Months
Ended Mar. 31
    For Three Months
Ended June 30
  Sequential
Growth Rate
2011 $ 3,392   $ 3,458   2%
2010   3,205     3,496   9%
2009   2,086     2,457   18% 
2008   3,272     3,351   2%
2007   3,191     3,424   7%
Five-Year Sequential
    Growth Rate Average
            8%
 
 
Plus NSC revenue not included above:
 
    For Three Months
Ended Mar. 31
    For Three Months
Ended June 30
   
2011 $ 358   $ 383    
2010   368     404    
2009   292     281    
2008   453     462    
2007   431     456    
 
 
Less Baseband revenue included in Revenue as reported (GAAP):
 
    For Three Months
Ended Mar. 31
    For Three Months
Ended June 30
   
2011 $ 334   $ 228    
2010   424     416    
2009   400     410    
2008   720     681    
2007   755     788    
 
 
Revenue as adjusted (Non-GAAP):
 
    For Three Months
Ended Mar. 31
    For Three Months
Ended June 30
  Sequential
Growth Rate
2011 $ 3,416   $ 3,613   6%
2010   3,149     3,484   11%  
2009   1,978     2,328   18%  
2008   3,005     3,132   4%
2007   2,867     3,092   8%
Five-Year Sequential
    Growth Rate Average
            9%
               
 
 
3Q vs. 2Q Five-Year Sequential Growth Rate Average
 
Revenue as reported (GAAP):
 
    For Three Months
Ended June 30
    For Three Months
Ended Sept. 30
  Sequential
Growth Rate
2011 $ 3,458   $ 3,466   0%
2010   3,496     3,740   7%
2009   2,457     2,880   17%  
2008   3,351     3,387   1%
2007   3,424     3,663   7%
Five-Year Sequential
    Growth Rate Average
            6%
 
 
Plus NSC revenue not included above:
 
    For Three Months
Ended June 30
    For Three Months
Ended Sept. 30
   
2011 $ 383   $ 315    
2010   404     401    
2009   281     314    
2008   462     466    
2007   456     472    
 
 
Less Baseband revenue included in Revenue as reported (GAAP):
 
    For Three Months
Ended June 30
    For Three Months
Ended Sept. 30
   
2011 $ 228   $ 263    
2010   416     438    
2009   410     450    
2008   681     673    
2007   788     857    
 
 
Revenue as adjusted (Non-GAAP):
 
    For Three Months
Ended June 30
    For Three Months
Ended Sept. 30
  Sequential
Growth Rate
2011 $ 3,613   $ 3,518   -3% 
2010   3,484     3,703   6%
2009   2,328     2,744   18%  
2008   3,132     3,180   2%
2007   3,092     3,278   6% 
Five-Year Sequential
    Growth Rate Average
            6% 
               
 
 
4Q vs. 3Q Five-Year Sequential Growth Rate Average
 
Revenue as reported (GAAP):
 
    For Three Months
Ended Sept. 30
    For Three Months
Ended Dec. 31
  Sequential
Growth Rate
2011 $ 3,466   $ 3,420   -1% 
2010   3,740     3,525   -6% 
2009   2,880     3,005   4%
2008   3,387     2,491   -26%   
2007   3,663     3,556   -3% 
Five-Year Sequential
    Growth Rate Average
            -6% 
 
 
Plus NSC revenue not included above:
 
    For Three Months
Ended Sept. 30
    For Three Months
Ended Dec. 31
   
2011 $ 315   $ n/a    
2010   401     373    
2009   314     345    
2008   466     422    
2007   472     499    
 
 
Less Baseband revenue included in Revenue as reported (GAAP):
 
    For Three Months
Ended Sept. 30
    For Three Months
Ended Dec. 31
   
2011 $ 263   $ 279    
2010   438     435    
2009   450     465    
2008   673     464    
2007   857     870    
 
 
Revenue as adjusted (Non-GAAP):
 
    For Three Months
Ended Sept. 30
    For Three Months
Ended Dec. 31
  Sequential
Growth Rate
2011 $ 3,518   $ 3,141   -11%    
2010   3,703     3,463   -6%  
2009   2,744     2,885   5% 
2008   3,180     2,449   -23% * 
2007   3,278     3,185   -3%  
Five-Year Sequential Growth Rate
     Average
            -8%  
Five-Year Sequential Growth Rate
     Average Excluding 4Q08 *
            -4%  
               
 


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