Reconciliation of Non-GAAP Financial Measure

Texas Instruments Incorporated
Reconciliation of Non-GAAP Financial Measures

On January 24, 2011, we held a publicly webcast conference call with analysts to discuss our fourth-quarter and full-year earnings. During the call we made a non-GAAP reference to operating profit as a percent of revenue excluding the gain on the sale of a product line. We provided this information to give investors additional insight into our underlying business conditions, results and expectations. The table below provides a reconciliation of the non-GAAP item to our fourth-quarter results prepared in accordance with GAAP.

(Millions of dollars)
    For the three
months ended
Dec. 31, 2010
Revenue $ 3,525   
Operating profit as reported   1,230   
Operating profit % of revenue as reported   34.9%
Gain on sale of product line $ 144   
Non-GAAP operating profit without gain   1,086   
Non-GAAP operating profit % of revenue without gain   30.8%