Texas Instruments Incorporated
Reconciliation of Non-GAAP Financial Measures


On September 11, 2012, we held a publicly webcast conference call with analysts to discuss our third-quarter 2012 business outlook. During the call, we made a non-GAAP reference to TI's five-year average quarterly sequential growth rate from the third to fourth quarter, excluding 2008. Consistent with the non-GAAP reconciliations that we provided in second quarter 2012, the non-GAAP sequential growth rates included revenue reported by National Semiconductor prior to TI's September 2011 acquisition and excluded revenue associated with TI's baseband products.

We provided this non-GAAP measure to give investors additional insight into TI's underlying business conditions and results including or excluding some selected items. The tables below provide reconciliations of these non-GAAP sequential growth rates to TI's average quarterly sequential growth rate as prepared in accordance with GAAP.


 
 
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%