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Reconciliation of Non-GAAP Financial Measure
Texas
Instruments Incorporated
Reconciliation of Non-GAAP Financial Measure
On October 23, 2006,
we held a publicly webcast conference call with analysts to discuss our
third-quarter earnings. The table below provides a reconciliation of a
non-GAAP item discussed during the conference call to our third-quarter
results prepared in accordance with GAAP. We included the non-GAAP financial
measure not only to respond to a specific question asked during the conference
call, but also to enhance understanding of our ongoing operations and
to communicate the impact of the excluded second-quarter items in comparison
to our third-quarter results.
Semiconductor
Segment Gross Profit Margin Detail
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| |
|
|
|
|
Change
from |
| (Millions of
dollars) |
Sept
30, 2006 |
|
June
30, 2006 |
|
June
30, 2006 |
| |
|
|
|
|
|
| GAAP
Measure: |
|
|
|
|
|
| Semiconductor
revenue |
$
3,579 |
|
$
3,505 |
|
$
74 |
| Semiconductor
gross profit |
1,844 |
|
1,815
|
|
29 |
| Gross profit
change as % of revenue change |
|
|
|
|
39% |
| |
|
|
|
|
|
| Reconciliation
to Non-GAAP: |
|
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|
|
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Excluding the
effects of:
Royalty settlement revenue |
|
|
(70) |
|
|
| Royalty settlement gross margin |
|
|
(60) |
|
|
| Refund of state sales tax gross margin |
|
|
(31) |
|
|
| |
|
|
|
|
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| Non-GAAP
Measure |
|
|
|
|
|
| Semiconductor
revenue |
$
3,579 |
|
$
3,435 |
|
$
144 |
| Semiconductor
gross profit |
1,844 |
|
1,724
|
|
120 |
| Gross profit
change as % of revenue change |
|
|
|
|
83% |
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