28 unchanged sentences
Conversely, as factory loadings increase, our fixed costs are spread over increased output and, absent other circumstances, our profit margins increase.
−Removed: Increases and decreases in factory loadings tend to correspond to increases and decreases in demand.
• For an explanation of free cash flow and the term “annual operating tax rate,” see the Non-GAAP financial information section.
3 unchanged sentences
Performance summary
−Removed: Our third quarter revenue was $4.64 billion, net income was $1.95 billion and earnings per share (EPS) were $2.07.
−Removed: Revenue increased 22% from the same quarter a year ago due to strong demand in industrial, automotive and personal electronics.
−Removed: Analog revenue grew 24% and Embedded Processing grew 13% from the same quarter a year ago.
+Added: Our first quarter revenue was $4.91 billion, net income was $2.20 billion and earnings per share (EPS) were $2.35.
+Added: Revenue increased 14% from the same quarter a year ago primarily due to growth in industrial and automotive.
Our cash flow from operations of $9.1 billion for the trailing 12 months again underscored the strength of our business model.
1 unchanged sentence
This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter production.
−Removed: We returned $4.2 billion to shareholders in the past 12 months through dividends and stock repurchases.
−Removed: Over the same period, our dividend represented 53% of free cash flow, underscoring its sustainability.
−Removed: In September, we announced we would increase our dividend by 13%.
−Removed: Results of operations – third quarter 2021 compared with third quarter 2020
−Removed: Revenue of $4.64 billion increased $826 million, or 22%, due to higher revenue from Analog and, to a lesser extent, Embedded Processing.
+Added: Over the past 12 months we invested $3.2 billion in R&D and SG&A, invested $2.6 billion in capital expenditures and returned $5.0 billion to shareholders.
+Added: Results of operations – first quarter 2022 compared with first quarter 2021
+Added: Revenue of $4.91 billion increased $616 million, or 14%, primarily due to higher revenue from Analog and, to a lesser extent, Embedded Processing.
+Added: This increase benefited from higher prices and the mix of products shipped.
Gross profit of $3.44 billion was up $645 million, or 23%, primarily due to higher revenue.
1 unchanged sentence
Operating expenses (R&D and SG&A) were $813 million compared with $811 million.
−Removed: Acquisition charges were $47 million compared with $51 million and were non-cash.
+Added: Restructuring charges/other was $66 million due to integration charges at our Lehi, Utah, manufacturing facility.
Operating profit was $2.56 billion, or 52.3% of revenue, compared with $1.94 billion, or 45.2% of revenue.
1 unchanged sentence
Our provision for income taxes was $325 million compared with $186 million.
−Removed: This increase was due to higher income before income taxes.
+Added: This increase was due to higher income before income taxes and lower discrete tax benefits.
Our annual operating tax rate, which does not include discrete tax items, was 14% in both periods.
4 unchanged sentences
EPS was $2.35 compared with $1.87.
−Removed: Third quarter 2021 segment results
+Added: First quarter 2022 segment results
Our segment results compared with the year-ago quarter are as follows:
12 unchanged sentences
Embedded Processing revenue increased.
−Removed: Operating profit increased primarily due to higher revenue and associated gross profit.
+Added: Operating profit increased primarily due to higher gross profit.
Other (includes DLP ® products, calculators and custom ASIC products)
5 unchanged sentences
Other revenue increased $65 million, and operating profit increased $92 million.
−Removed: Results of operations – first nine months of 2021 compared with first nine months of 2020
−Removed: 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 $9.03 billion was up $2.40 billion, or 36%, primarily due to higher revenue.
−Removed: As a percentage of revenue, gross profit increased to 66.8% from 63.8%.
−Removed: Operating expenses were $2.43 billion compared with $2.37 billion.
−Removed: Acquisition charges were $142 million compared with $151 million and were non-cash.
−Removed: Operating profit was $6.46 billion, or 47.8% of revenue, compared with $4.08 billion, or 39.3% of revenue.
−Removed: OI&E was $134 million of income compared with $151 million of income.
−Removed: Our provision for income taxes was $825 million compared with $183 million.
−Removed: 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.
−Removed: Net income was $5.63 billion compared with $3.91 billion.
−Removed: EPS was $5.99 compared with $4.17.
−Removed: Year-to-date segment results
−Removed: Our segment results compared with the year-ago period are as follows:
−Removed: YTD 2021 YTD 2020 Change
−Removed: Revenue $ 10,292 $ 7,759 33 %
−Removed: Operating profit 5,295 3,398 56 %
−Removed: Operating profit % of revenue 51.4 % 43.8 %
−Removed: Analog revenue increased in both product lines, led by Signal Chain.
−Removed: Operating profit increased due to higher revenue and associated gross profit.
−Removed: Embedded Processing
−Removed: YTD 2021 YTD 2020 Change
−Removed: Revenue $ 2,285 $ 1,850 24 %
−Removed: Operating profit 881 494 78 %
−Removed: Operating profit % of revenue 38.6 % 26.7 %
−Removed: Embedded Processing revenue increased.
−Removed: Operating profit increased primarily due to higher revenue and associated gross profit.
−Removed: YTD 2021 YTD 2020 Change
−Removed: Revenue $ 935 $ 776 20 %
−Removed: Operating profit* 281 189 49 %
−Removed: Operating profit % of revenue 30.1 % 24.4 %
−Removed: * Includes acquisition charges and restructuring charges/other
−Removed: Other revenue increased $159 million, and operating profit increased $92 million.
Financial condition
−Removed: 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.
+Added: At the end of the first quarter of 2022, total cash (cash and cash equivalents plus short-term investments) was $9.83 billion, an increase of $86 million from the end of 2021.
Accounts receivable were $1.80 billion, an increase of $94 million compared with the end of 2021.
−Removed: Days sales outstanding for the third quarter of 2021 were 32 compared with 31 at the end of 2020.
−Removed: Inventory was $1.86 billion, a decrease of $92 million from the end of 2020.
−Removed: Days of inventory for the third quarter of 2021 were 112 compared with 123 at the end of 2020.
+Added: Days sales outstanding for the first quarter of 2022 were 33 compared with 32 at the end of 2021.
+Added: Inventory was $2.06 billion, an increase of $150 million from the end of 2021.
+Added: Days of inventory for the first quarter of 2022 were 127 compared with 116 at the end of 2021.
Liquidity and capital resources
Our primary source of liquidity is cash flow from operations.
−Removed: 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 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.
−Removed: Our revolving credit facility is with a consortium of investment-grade banks and allows us to borrow up to $2 billion until March 2024.
−Removed: This credit facility also serves as support for the issuance of commercial paper.
−Removed: As of September 30, 2021, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: 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.
−Removed: 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.
−Removed: We expect our capital expenditures to continue to increase in future periods.
−Removed: Short-term investments used cash of $657 million compared with providing cash of $523 million in the year-ago period.
−Removed: Financing activities for the first nine months of 2021 used $1.98 billion compared with $3.70 billion in the year-ago period.
−Removed: 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.
−Removed: 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.
−Removed: Dividends paid were $2.82 billion compared with $2.49 billion in the year-ago period, reflecting an increase in the dividend rate.
−Removed: We used $385 million to repurchase 2.1 million shares of our common stock compared with $2.54 billion used in the year-ago period to repurchase 23.3 million shares.
+Added: Additional sources of liquidity are cash and cash equivalents, short-term investments and access to debt markets.
+Added: We also have a variable rate, revolving credit facility.
+Added: As of March 31, 2022, our credit facility was undrawn, and we had no commercial paper outstanding.
+Added: Cash flows from operating activities for the first three months of 2022 were $2.14 billion, an increase of $294 million from the year-ago period due to higher net income, partially offset by higher cash used for working capital.
+Added: Investing activities for the first three months of 2022 used $1.67 billion compared with $1.11 billion in the year-ago period.
+Added: Capital expenditures were $443 million compared with $308 million in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods.
+Added: As we continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity planning, we expect our capital expenditures to be higher than historical levels.
+Added: Short-term investments used cash of $1.21 billion compared with $782 million in the year-ago period.
+Added: Financing activities for the first three months of 2022 used $1.60 billion compared with $1.41 billion in the year-ago period.
+Added: In the year-ago period, we retired maturing debt of $550 million.
+Added: Dividends paid were $1.06 billion compared with $940 million in the year-ago period, reflecting an increased dividend rate.
+Added: We used $589 million to repurchase 3.4 million shares of our common stock compared with $100 million used in the year-ago period to repurchase 0.6 million shares.
Employee exercises of stock options provided cash proceeds of $57 million compared with $196 million in the year-ago period.
−Removed: We had $5.66 billion of cash and cash equivalents and $4.12 billion of short-term investments as of September 30, 2021.
+Added: In April 2022, we used cash and cash equivalents to retire $500 million of maturing debt.
+Added: We had $3.51 billion of cash and cash equivalents and $6.32 billion of short-term investments as of March 31, 2022.
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: 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
−Removed: September 30,
2022 2021 Change
7 unchanged sentences
We believe the term annual operating tax rate helps differentiate from the effective tax rate, which includes discrete tax items.
−Removed: Long-term contractual obligations
−Removed: 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 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.
−Removed: 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.