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: • For an explanation of free cash flow and the term “annual operating tax rate,” see the Non-GAAP financial information section.
+Added: • For an explanation of free cash flow, see the Non-GAAP financial information section.
• All dollar amounts in the tables are stated in millions of U.S.
2 unchanged sentences
Performance summary
−Removed: Our first quarter revenue was $4.91 billion, net income was $2.20 billion and earnings per share (EPS) were $2.35.
−Removed: Revenue increased 14% from the same quarter a year ago primarily due to growth in industrial and automotive.
+Added: Our second quarter revenue was $5.21 billion, net income was $2.29 billion and earnings per share (EPS) were $2.45.
+Added: Revenue increased 14% from the same quarter a year ago due to growth across markets.
Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model.
2 unchanged sentences
Over the past 12 months we invested $3.2 billion in R&D and SG&A, invested $2.8 billion in capital expenditures and returned $6.2 billion to shareholders.
−Removed: Results of operations – first quarter 2022 compared with first quarter 2021
−Removed: 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: Results of operations – second quarter 2022 compared with second quarter 2021
+Added: Revenue of $5.21 billion increased $632 million, or 14%, due to higher revenue from Analog and, to a lesser extent, Embedded Processing.
This increase benefited from higher prices and the mix of products shipped.
6 unchanged sentences
Our provision for income taxes was $390 million compared with $311 million.
−Removed: This increase was due to higher income before income taxes and lower discrete tax benefits.
−Removed: Our annual operating tax rate, which does not include discrete tax items, was 14% in both periods.
−Removed: We use “annual operating tax rate” to describe the estimated annual effective tax rate, which differs from the 21% U.S.
−Removed: statutory corporate tax rate due to the effect of U.S.
−Removed: tax benefits.
+Added: This increase was primarily due to higher income before income taxes.
Net income was $2.29 billion compared with $1.93 billion.
EPS was $2.45 compared with $2.05.
−Removed: First quarter 2022 segment results
+Added: Second 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 gross profit.
+Added: Operating profit increased primarily due to higher revenue and associated gross profit.
Other (includes DLP ® products, calculators and custom ASIC products)
5 unchanged sentences
Other revenue increased $63 million, and operating profit increased $50 million.
+Added: Results of operations – first six months of 2022 compared with first six months of 2021
+Added: Revenue of $10.12 billion increased $1.25 billion, or 14%, 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.
+Added: Gross profit of $7.07 billion was up $1.19 billion, or 20%, primarily due to higher revenue.
+Added: As a percentage of revenue, gross profit increased to 69.9% from 66.2%.
+Added: Operating expenses were $1.65 billion compared with $1.63 billion.
+Added: Restructuring charges/other was $132 million due to integration charges at our Lehi, Utah, manufacturing facility.
+Added: Operating profit was $5.29 billion, or 52.2% of revenue, compared with $4.15 billion, or 46.8% of revenue.
+Added: OI&E was $22 million of income compared with $119 million of income.
+Added: Our provision for income taxes was $715 million compared with $497 million.
+Added: This increase was due to higher income before income taxes and lower discrete tax benefits.
+Added: Net income was $4.49 billion compared with $3.68 billion.
+Added: EPS was $4.80 compared with $3.92.
+Added: Year-to-date segment results
+Added: Our segment results compared with the year-ago period are as follows:
+Added: YTD 2022 YTD 2021 Change
+Added: Revenue $ 7,808 $ 6,744 16 %
+Added: Operating profit 4,376 3,424 28 %
+Added: Operating profit % of revenue 56.0 % 50.8 %
+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.
+Added: Embedded Processing
+Added: YTD 2022 YTD 2021 Change
+Added: Revenue $ 1,603 $ 1,547 4 %
+Added: Operating profit 639 599 7 %
+Added: Operating profit % of revenue 39.9 % 38.7 %
+Added: Embedded Processing revenue increased.
+Added: Operating profit increased primarily due to higher revenue and associated gross profit.
+Added: YTD 2022 YTD 2021 Change
+Added: Revenue $ 706 $ 578 22 %
+Added: Operating profit* 271 129 110 %
+Added: Operating profit % of revenue 38.4 % 22.3 %
+Added: * Includes acquisition charges and restructuring charges/other
+Added: Other revenue increased $128 million, and operating profit increased $142 million.
Financial condition
−Removed: 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.
+Added: At the end of the second quarter of 2022, total cash (cash and cash equivalents plus short-term investments) was $8.39 billion, a decrease of $1.35 billion from the end of 2021.
Accounts receivable were $2.19 billion, an increase of $489 million compared with the end of 2021.
−Removed: Days sales outstanding for the first quarter of 2022 were 33 compared with 32 at the end of 2021.
+Added: Days sales outstanding for the second quarter of 2022 were 38 compared with 32 at the end of 2021.
Inventory was $2.20 billion, an increase of $289 million from the end of 2021.
−Removed: Days of inventory for the first quarter of 2022 were 127 compared with 116 at the end of 2021.
+Added: Days of inventory for the second quarter of 2022 were 125 compared with 116 at the end of 2021.
Liquidity and capital resources
2 unchanged sentences
We also have a variable rate, revolving credit facility.
−Removed: As of March 31, 2022, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: 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.
−Removed: Investing activities for the first three months of 2022 used $1.67 billion compared with $1.11 billion in the year-ago period.
−Removed: 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 of June 30, 2022, our credit facility was undrawn, and we had no commercial paper outstanding.
+Added: Cash flows from operating activities for the first six months of 2022 were $3.91 billion, a decrease of $59 million from the year-ago period due to higher cash used for working capital, partially offset by higher net income.
+Added: Investing activities for the first six months of 2022 used $443 million compared with $982 million in the year-ago period.
+Added: Capital expenditures were $1.04 billion compared with $694 million in the year-ago period and were primarily for semiconductor manufacturing equipment and facilities in both periods.
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.
−Removed: Short-term investments used cash of $1.21 billion compared with $782 million in the year-ago period.
−Removed: Financing activities for the first three months of 2022 used $1.60 billion compared with $1.41 billion in the year-ago period.
−Removed: In the year-ago period, we retired maturing debt of $550 million.
−Removed: Dividends paid were $1.06 billion compared with $940 million in the year-ago period, reflecting an increased dividend rate.
−Removed: 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.
+Added: Short-term investments provided cash of $525 million compared with using cash of $279 million in the year-ago period.
+Added: Financing activities for the first six months of 2022 used $4.30 billion compared with $2.45 billion in the year-ago period.
+Added: In 2022, we retired maturing debt of $500 million compared with $550 million in the year-ago period.
+Added: Dividends paid were $2.12 billion compared with $1.88 billion in the year-ago period, reflecting an increased dividend rate.
+Added: We used $1.77 billion to repurchase 10.7 million shares of our common stock compared with $246 million used in the year-ago period to repurchase 1.4 million shares.
Employee exercises of stock options provided cash proceeds of $113 million compared with $250 million in the year-ago period.
−Removed: In April 2022, we used cash and cash equivalents to retire $500 million of maturing debt.
−Removed: We had $3.51 billion of cash and cash equivalents and $6.32 billion of short-term investments as of March 31, 2022.
+Added: We had $3.80 billion of cash and cash equivalents and $4.59 billion of short-term investments as of June 30, 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.
14 unchanged sentences
Free cash flow as a percentage of revenue (non-GAAP) 30.1 % 38.7 %
−Removed: This MD&A also includes references to an annual operating tax rate, a non-GAAP term we use to describe the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items.
−Removed: We believe the term annual operating tax rate helps differentiate from the effective tax rate, which includes discrete tax items.
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.