Reconciliation of Non-GAAP Financial Measure


Texas Instruments Incorporated
Reconciliation of Non-GAAP Financial Measures
On January 26, 2009, we held a publicly webcast conference call with analysts to discuss our fourth-quarter and annual 2008 earnings that included discussion of non-GAAP financial measures. The tables below provide a reconciliation of the non-GAAP items to our fourth-quarter and annual 2008 results prepared in accordance with GAAP. We included the non-GAAP financial measures, which excluded the impact of restructuring charges on our results, to provide investors additional insight into our underlying business conditions and results.

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars, except share and per-share amounts)
  For the three
months ended
Dec. 31, 2008
Net Income as reported $107   
Pre-tax restructuring charges 254   
Tax impact of restructuring charges (89)   
Net income excluding restructuring charges $272   
Average diluted shares outstanding 1,289   
Diluted earnings per common share excluding
restructuring charges
$.21   
Diluted earnings per common share as reported         $.08   


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars, except share and per-share amounts)
  For the three
months ended
Dec. 31, 2008
Pre-tax restructuring charges $254   
Tax impact of restructuring charges (89)   
After-tax restructuring charges $165   
Average diluted shares outstanding                           1,289   
Earnings per share impact of restructuring
charges
$.13   
Diluted earnings per common share as reported $.08   
Diluted earnings per common share excluding
restructuring charges
$.21   


TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
(Millions of dollars, except share and per-share amounts)
   
  For the three
months ended
Dec. 31, 2008
  For the
year ended
Dec. 31, 2008
Operating profit as reported $ 51      $ 2,437   
Pre-tax restructuring charges 254      254   
Operating profit excluding restructuring charges         305      2,691   
Revenue 2,491      12,501   
Operating profit percentage of revenue
excluding restructuring charges
12.2%      21.5%   


Wireless Segment
(Millions of dollars)
  For the
year ended
Dec. 31, 2008
GAAP as reported  
Operating profit as reported $347   
   
Revenue 3,383   
   
Operating profit percentage of revenue as reported    10.3%  
   
Non-GAAP measure  
Operating profit as reported $347   
Pre-tax restructuring charges 130   
Operating profit excluding restructuring charges 477   
   
Revenue 3,383   
   
Operating profit percentage of revenue excluding
restructuring charges        
14.1%