12 unchanged sentences
Discipline in allocating capital to the best opportunities.
−Removed: This spans how we select R&D projects, develop new capabilities like TI.com, invest in new manufacturing capacity or how we think about acquisitions and returning cash to our owners.
+Added: This spans how we select R&D projects, develop new capabilities, invest in manufacturing capacity or how we think about acquisitions and returning cash to our owners.
Efficiency, which means constantly striving for more output for every dollar spent.
20 unchanged sentences
We sell our products into six end markets:
−Removed: industrial, automotive, personal electronics, communications equipment, enterprise systems and other.
+Added: industrial, automotive, personal electronics, enterprise systems, communications equipment and other.
While all of these end markets represent good opportunities, we place additional strategic emphasis on designing and selling our products into the industrial and automotive markets, which we believe represent the best long-term growth opportunities.
4 unchanged sentences
Details of financial results – 2024 compared with 2023
−Removed: Revenue of $17.52 billion decreased $2.51 billion, or 12.5%, primarily due to lower revenue from Analog, partially offset by higher revenue from Embedded Processing.
−Removed: Gross profit of $11.02 billion was down $2.75 billion, or 20.0%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with planned capacity expansion and reduced factory loadings.
+Added: Revenue of $15.64 billion decreased $1.88 billion, or 10.7%, due to lower revenue from Analog and Embedded Processing.
+Added: Gross profit of $9.09 billion was down $1.93 billion, or 17.5%, primarily due to lower revenue and, to a lesser extent, higher manufacturing costs associated with our planned capacity expansions.
As a percentage of revenue, gross profit decreased to 58.1% from 62.9%.
Operating expenses (R&D and SG&A) were $3.75 billion compared with $3.69 billion.
−Removed: This increase was primarily due to higher employee-related costs as we invest to strengthen our competitive advantages.
−Removed: Restructuring charges/other in the year-ago period was $257 million due to preproduction costs at our Lehi, Utah, manufacturing facility.
−Removed: These costs transitioned primarily to cost of revenue after production began in December 2022.
+Added: Restructuring charges/other was a credit of $124 million primarily due to a gain on the sale of a property during 2024.
See Note 11 to the financial statements.
Operating profit was $5.47 billion, or 34.9% of revenue, compared with $7.33 billion, or 41.8% of revenue.
−Removed: Other income and expense (OI&E) was $440 million of income compared with $106 million of income, due to higher interest income.
+Added: Other income and expense (OI&E) was $496 million of income compared with $440 million of income, due to interest income.
See Note 11 to the financial statements.
1 unchanged sentence
See Note 8 to the financial statements.
−Removed: Our provision for income taxes was $908 million compared with $1.28 billion.
+Added: Our provision for income taxes was $654 million compared with $908 million.
This decrease was due to lower income before income taxes.
10 unchanged sentences
Operating profit % of revenue 37.9 % 44.6 %
−Removed: Analog revenue decreased in both product lines about equally.
+Added: Analog revenue decreased due to the mix of products shipped in both product lines, led by Signal Chain.
Operating profit decreased primarily due to lower revenue and higher manufacturing costs.
4 unchanged sentences
Operating profit % of revenue 13.9 % 29.9 %
−Removed: Embedded Processing revenue increased due to the mix of products shipped.
−Removed: Operating profit decreased primarily due to higher manufacturing costs, partially offset by higher revenue.
+Added: Embedded Processing revenue decreased.
+Added: Operating profit decreased primarily due to lower revenue and associated gross profit.
Other (includes DLP ® products, calculators and custom ASIC products)
4 unchanged sentences
* Includes restructuring charges/other
−Removed: Other revenue decreased $297 million, and operating profit decreased $26 million.
+Added: Other revenue decreased $164 million, and operating profit increased $3 million.
Financial condition
1 unchanged sentence
Accounts receivable were $1.72 billion, a decrease of $68 million compared with the end of 2023.
−Removed: Days sales outstanding at the end of 2023 were 39 compared with 37 at the end of 2022.
−Removed: Inventory was $4.00 billion, an increase of $1.24 billion from the end of 2022.
+Added: Days sales outstanding at the end of 2024 and 2023 were 39.
+Added: Inventory was $4.53 billion, an increase of $528 million from the end of 2023.
Days of inventory at the end of 2024 were 241 compared with 219 at the end of 2023.
4 unchanged sentences
As of December 31, 2024, our credit facility was undrawn, and we had no commercial paper outstanding.
−Removed: Cash flows from operating activities for 2023 were $6.42 billion, a decrease of $2.30 billion due to lower net income and higher cash used for working capital, as we continued to strategically build inventory.
+Added: Cash flows from operating activities for 2024 were $6.32 billion, a decrease of $102 million due to lower net income, partially offset by lower cash used for working capital.
+Added: Cash flows from operating activities for 2024 include a cash benefit of $588 million from the U.S.
+Added: CHIPS and Science Act (CHIPS Act) investment tax credit (ITC) used to reduce income taxes payable.
Investing activities for 2024 used $3.20 billion compared with $4.36 billion in 2023.
Capital expenditures were $4.82 billion compared with $5.07 billion in 2023 and were primarily for semiconductor manufacturing equipment and facilities in both periods.
−Removed: Short-term investments provided cash proceeds of $682 million in 2023 compared with $826 million of cash used in 2022.
−Removed: As we continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity planning, our capital expenditures are expected to continue to be higher than historical levels.
−Removed: In August 2022, the U.S.
−Removed: government enacted the U.S.
−Removed: CHIPS and Science Act, which provides funding for manufacturing grants and research investments and establishes a 25% investment tax credit for certain investments in U.S.
−Removed: semiconductor manufacturing.
−Removed: We expect to receive the cash benefit associated with the investment tax credit for qualifying capital expenditures in future periods, and we have submitted applications for the manufacturing grants provided by the legislation.
−Removed: See Note 11 to the financial statements.
+Added: Short-term investments provided cash proceeds of $1.47 billion in 2024 compared with $682 million in 2023.
+Added: As we continue to invest to strengthen our competitive advantages in manufacturing and technology, as part of our long-term capacity planning, our capital expenditures are expected to remain at elevated levels.
+Added: We expect to receive between $7.5 billion to $9.5 billion through 2034 from the CHIPS Act.
+Added: This includes the ITC for qualified U.S.
+Added: manufacturing investments and direct funding of up to $1.6 billion for our three large-scale 300mm wafer fabs currently under construction in Sherman, Texas, and Lehi, Utah.
+Added: We received $588 million in associated cash benefit from qualifying capital expenditures in 2024.
Financing activities for 2024 used $2.88 billion compared with $2.14 billion in 2023.
2 unchanged sentences
Dividends paid in 2024 were $4.80 billion compared with $4.56 billion in 2023, reflecting an increased dividend rate.
−Removed: We used $293 million to repurchase 1.8 million shares of our common stock compared with $3.62 billion used in 2022 to repurchase 22.2 million shares.
+Added: We used $929 million to repurchase 4.7 million shares of our common stock compared with $293 million used in 2023 to repurchase 1.8 million shares.
Employee exercises of stock options provided cash proceeds of $517 million compared with $263 million in 2023.
15 unchanged sentences
Free cash flow as a percentage of revenue (non-GAAP) 9.6 % 7.7 %
+Added: * Includes a cash benefit of $588 million from the CHIPS Act ITC used to reduce income taxes payable for 2024
Critical accounting estimates
4 unchanged sentences
We consider the following accounting policies to be those that are most important to the portrayal of our financial condition and that require a higher degree of judgment.
−Removed: In determining net income for financial statement purposes, we must make certain estimates and judgments in the calculation of tax provisions and the resultant tax liabilities and in the recoverability of deferred tax assets that arise from temporary differences between the tax and financial statement recognition of revenue and expense.
+Added: In determining net income for financial statement purposes, we must make certain estimates and judgments in the calculation of tax provisions and the resultant tax liabilities that arise from temporary differences between the tax and financial statement recognition of revenue and expense.
In the ordinary course of global business, there may be many transactions and calculations where the ultimate tax outcome is uncertain.
−Removed: The calculation of tax liabilities involves dealing with uncertainties in the interpretation and application of complex tax laws, and significant judgment is necessary to (i) determine whether, based on the technical merits, a tax position is more likely than not to be sustained and (ii) measure the amount of tax benefit that qualifies for recognition.
−Removed: We recognize potential liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on an estimate of the ultimate resolution of whether, and the extent to which, additional taxes will be due.
−Removed: Although we believe the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different from what is reflected in the historical income tax provisions and accruals.
−Removed: Inventory valuation allowances
−Removed: Inventory is valued net of allowances for unsalable or obsolete raw materials, work in process and finished goods.
−Removed: Statistical allowances are determined quarterly for raw materials and work in process based on historical disposals of inventory for salability and obsolescence reasons.
−Removed: For finished goods, quarterly statistical allowances are determined by comparing inventory levels of individual parts to historical shipments, current backlog and estimated future sales in order to identify inventory considered unlikely to be sold.
−Removed: A specific allowance for each material type will be carried if there is a significant event not captured by the statistical allowance, such as an end-of-life part or demand with imminent risk of cancellation.
−Removed: Allowances are also calculated quarterly for instances where inventoried costs for individual products are in excess of the net realizable value for those products.
−Removed: Actual future write-offs of inventory for salability and obsolescence reasons may differ from estimates and calculations used to determine valuation allowances due to changes in customer demand, customer negotiations, technology shifts and other factors.
+Added: The evaluation of tax liabilities involves dealing with uncertainties in the interpretation and application of complex tax laws, and significant judgment is necessary to determine whether, based on the technical merits, a tax position is more likely than not to be sustained.
+Added: We determine potential liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on an estimate of the ultimate resolution of whether, and the extent to which, additional taxes will be due.
+Added: Although we believe our analysis of the underlying issues and the associated estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different from what is reflected in the historical income tax provisions and accruals.
Commitments and contingencies
1 unchanged sentence
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.