34 unchanged sentences
Performance summary
−Removed: Our second quarter revenue was $4.58 billion, net income was $1.93 billion and earnings per share (EPS) were $2.05.
−Removed: Revenue increased 7% sequentially and increased 41% from the same quarter a year ago due to strong demand in industrial, automotive and personal electronics.
−Removed: In our core businesses, Analog revenue grew 6% and Embedded Processing grew 2% sequentially.
−Removed: From a year ago, Analog revenue grew 42% and Embedded Processing grew 43%.
+Added: Our third quarter revenue was $4.64 billion, net income was $1.95 billion and earnings per share (EPS) were $2.07.
+Added: Revenue increased 22% from the same quarter a year ago due to strong demand in industrial, automotive and personal electronics.
+Added: Analog revenue grew 24% and Embedded Processing grew 13% from the same quarter a year ago.
Our cash flow from operations of $8.5 billion for the trailing 12 months again underscored the strength of our business model.
Free cash flow for the same period was $7.1 billion and 41% of revenue.
−Removed: This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
+Added: This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter production.
We returned $4.2 billion to shareholders in the past 12 months through dividends and stock repurchases.
Over the same period, our dividend represented 53% of free cash flow, underscoring its sustainability.
−Removed: Results of operations – second quarter 2021 compared with second quarter 2020
−Removed: Revenue of $4.58 billion increased $1.34 billion, or 41%, due to higher revenue from Analog and, to a lesser extent, Embedded Processing.
−Removed: Gross profit of $3.08 billion was up $995 million, or 48%, due to higher revenue.
+Added: In September, we announced we would increase our dividend by 13%.
+Added: Results of operations – third quarter 2021 compared with third quarter 2020
+Added: Revenue of $4.64 billion increased $826 million, or 22%, due to higher revenue from Analog and, to a lesser extent, Embedded Processing.
+Added: Gross profit of $3.15 billion was up $699 million, or 28%, primarily due to higher revenue.
As a percentage of revenue, gross profit increased to 67.9% from 64.3%.
3 unchanged sentences
OI&E was $15 million of income compared with $27 million of income.
−Removed: Our provision for income taxes was an expense of $311 million compared with a benefit of $101 million.
−Removed: This change was due to lower discrete tax benefits compared to the year-ago quarter, which included a $249 million benefit from the settlement of a depreciation-related uncertain tax position, as well as higher income before income taxes in the current period.
−Removed: Our annual operating tax rate, which does not include discrete tax items, is 14% compared with 13% in 2020.
+Added: Our provision for income taxes was $328 million compared with $234 million.
+Added: This increase was due to higher income before income taxes.
+Added: Our annual operating tax rate, which does not include discrete tax items, was 14% in both periods.
We use “annual operating tax rate” to describe the estimated annual effective tax rate, which differs from the 21% U.S.
3 unchanged sentences
EPS was $2.07 compared with $1.45.
−Removed: Second quarter 2021 segment results
+Added: Third quarter 2021 segment results
Our segment results compared with the year-ago quarter are as follows:
4 unchanged sentences
Operating profit % of revenue 52.7 % 46.1 %
−Removed: Analog revenue increased in both product lines about equally.
−Removed: Operating profit increased due to higher revenue and associated gross profit.
+Added: Analog revenue increased in both product lines, led by Signal Chain.
+Added: Operating profit increased primarily due to higher revenue and associated gross profit.
Embedded Processing (includes microcontrollers and processors)
12 unchanged sentences
Other revenue increased $56 million, and operating profit increased $50 million.
−Removed: Results of operations – first six months of 2021 compared with first six months of 2020
+Added: Results of operations – first nine months of 2021 compared with first nine months of 2020
Revenue of $13.51 billion increased $3.13 billion, or 30%, due to higher revenue from Analog and, to a lesser extent, Embedded Processing.
−Removed: Gross profit of $5.87 billion was up $1.70 billion, or 41%, due to higher revenue.
+Added: Gross profit of $9.03 billion was up $2.40 billion, or 36%, primarily due to higher revenue.
As a percentage of revenue, gross profit increased to 66.8% from 63.8%.
3 unchanged sentences
OI&E was $134 million of income compared with $151 million of income.
−Removed: Our provision for income taxes was an expense of $497 million compared with a benefit of $51 million.
−Removed: This change was due to higher income before income taxes and lower discrete tax benefits compared to the year-ago period, which included a $249 million benefit from the settlement of a depreciation-related uncertain tax position.
+Added: Our provision for income taxes was $825 million compared with $183 million.
+Added: This increase was due to higher income before income taxes and lower discrete tax benefits compared to the year-ago period, which included a $249 million benefit from the settlement of a depreciation-related uncertain tax position.
Net income was $5.63 billion compared with $3.91 billion.
6 unchanged sentences
Operating profit % of revenue 51.4 % 43.8 %
−Removed: Analog revenue increased in both product lines about equally.
+Added: Analog revenue increased in both product lines, led by Signal Chain.
Operating profit increased due to higher revenue and associated gross profit.
13 unchanged sentences
Financial condition
−Removed: At the end of the second quarter of 2021, total cash (cash and cash equivalents plus short-term investments) was $7.39 billion, an increase of $822 million from the end of 2020.
+Added: At the end of the third quarter of 2021, total cash (cash and cash equivalents plus short-term investments) was $9.78 billion, an increase of $3.21 billion from the end of 2020.
Accounts receivable were $1.65 billion, an increase of $239 million compared with the end of 2020.
−Removed: Days sales outstanding were 31 for both the second quarter of 2021 and at the end of 2020.
+Added: Days sales outstanding for the third quarter of 2021 were 32 compared with 31 at the end of 2020.
Inventory was $1.86 billion, a decrease of $92 million from the end of 2020.
−Removed: Days of inventory for the second quarter of 2021 were 111 compared with 123 at the end of 2020.
+Added: Days of inventory for the third quarter of 2021 were 112 compared with 123 at the end of 2020.
Liquidity and capital resources
1 unchanged sentence
Additional sources of liquidity are cash and cash equivalents, short-term investments and a variable-rate, revolving credit facility.
−Removed: Cash flows from operating activities for the first six months of 2021 were $3.97 billion, an increase of $1.40 billion from the year-ago period due to higher net income and lower cash used for working capital.
+Added: Cash flows from operating activities for the first nine months of 2021 were $6.40 billion, an increase of $2.39 billion from the year-ago period due to higher net income and lower cash used for working capital.
Our revolving credit facility is with a consortium of investment-grade banks and allows us to borrow up to $2 billion until March 2024.
This credit facility also serves as support for the issuance of commercial paper.
−Removed: As of June 30, 2021, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: Investing activities for the first six months of 2021 used $982 million compared with providing cash of $2.26 billion in the year-ago period.
−Removed: Capital expenditures were $694 million compared with $291 million in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods.
−Removed: Short-term investments used cash of $279 million compared with providing cash of $2.55 billion in the year-ago period.
−Removed: Financing activities for the first six months of 2021 used $2.45 billion compared with $2.98 billion in the year-ago period.
−Removed: In 2021, we retired maturing debt of $550 million.
+Added: As of September 30, 2021, our credit facility was undrawn, and we had no commercial paper outstanding.
+Added: Investing activities for the first nine months of 2021 used $1.87 billion compared with providing cash of $74 million in the year-ago period.
+Added: Capital expenditures were $1.18 billion compared with $437 million in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods.
+Added: We expect our capital expenditures to continue to increase in future periods.
+Added: Short-term investments used cash of $657 million compared with providing cash of $523 million in the year-ago period.
+Added: Financing activities for the first nine months of 2021 used $1.98 billion compared with $3.70 billion in the year-ago period.
+Added: In 2021, we received net proceeds of $1.50 billion from the issuance of fixed-rate, long-term debt and retired maturing debt of $550 million.
In the year-ago period, we received net proceeds of $1.50 billion from the issuance of fixed-rate, long-term debt, and we retired maturing debt of $500 million.
2 unchanged sentences
Employee exercises of stock options provided cash proceeds of $325 million compared with $356 million in the year-ago period.
−Removed: We had $3.65 billion of cash and cash equivalents and $3.74 billion of short-term investments as of June 30, 2021.
+Added: We had $5.66 billion of cash and cash equivalents and $4.12 billion of short-term investments as of September 30, 2021.
We believe we have the necessary financial resources and operating plans to fund our working capital needs, capital expenditures, dividend and debt-related payments, and other business requirements for at least the next 12 months.
−Removed: On June 30, 2021, we announced that we signed an agreement to acquire Micron Technology’s 300-millimeter semiconductor factory in Lehi, Utah, for cash consideration of $900 million.
−Removed: We plan to complete the transaction by the end of 2021.
+Added: In October 2021, we completed our acquisition of Micron Technology’s 300-millimeter semiconductor factory in Lehi, Utah, for cash consideration of about $900 million.
Non-GAAP financial information
6 unchanged sentences
For 12 Months Ended
+Added: September 30,
2021 2020 Change
9 unchanged sentences
Information regarding long-term contractual obligations is in Item 7 of our Form 10-K for the year ended December 31, 2020.
−Removed: Additionally, in the first six months of 2021, we retired $550 million of maturing debt.
+Added: Additionally, in September 2021, we issued $500 million principal amount of 1.125% notes maturing in 2026, $500 million principal amount of 1.90% notes maturing in 2031 and $500 million principal amount of 2.70% notes maturing in 2051.
+Added: We retired $550 million of maturing debt in February 2021.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.