Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Texas Instruments Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal	943)	1,235)	948)	357)	483)
Non-U.S.	240)	212)	169)	192)	135)
U.S. state	24)	27)	18)	10)	12)
Current	1,207)	1,474)	1,135)	559)	630)
U.S. federal	(277)	(223)	(23)	(122)	25)
Non-U.S.	(22)	32)	38)	(15)	56)
Deferred	(299)	(191)	15)	(137)	81)
Provision for income taxes	908)	1,283)	1,150)	422)	711)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Texas Instruments Inc. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Texas Instruments Inc. deferred decreased from 2021 to 2022 and from 2022 to 2023.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Texas Instruments Inc. provision for income taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Texas Instruments Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign derived intangible income	-6.80%	-7.00%	-6.10%	-6.10%	-4.90%
R&D tax credit	-1.30%	-0.90%	-0.90%	-1.30%	-1.40%
Stock compensation	-1.00%	-0.70%	-1.50%	-2.50%	-3.10%
Changes in uncertain tax positions	0.00%	0.10%	-0.20%	-4.00%	-0.10%
Other	0.30%	0.30%	0.60%	-0.10%	0.90%
Effective tax rate	12.20%	12.80%	12.90%	7.00%	12.40%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Texas Instruments Inc. effective tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Texas Instruments Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Capitalized R&D	750)	380)	—)	—)	—)
Accrued expenses	236)	182)	209)	180)	113)
Deferred loss and tax credit carryforwards	205)	201)	207)	207)	213)
Stock compensation	163)	132)	110)	106)	109)
Inventories and related reserves	104)	88)	74)	105)	109)
Retirement costs for defined benefit and retiree health care	37)	43)	—)	44)	49)
Other	47)	36)	40)	3)	—)
Deferred tax assets, before valuation allowance	1,542)	1,062)	640)	645)	593)
Valuation allowance	(198)	(189)	(188)	(179)	(180)
Deferred tax assets, after valuation allowance	1,344)	873)	452)	466)	413)
Property, plant and equipment	(592)	(410)	(197)	(116)	(95)
International earnings	(33)	(35)	(38)	(44)	(62)
Acquisition-related intangibles and fair-value adjustments	(14)	(13)	(12)	(40)	(82)
Retirement costs for defined benefit and retiree health care	—)	—)	(15)	—)	—)
Other	(11)	(8)	(14)	(13)	(55)
Deferred tax liabilities	(650)	(466)	(276)	(213)	(294)
Net deferred tax asset (liability)	694)	407)	176)	253)	119)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets, before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Texas Instruments Inc. deferred tax assets, before valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, after valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Texas Instruments Inc. deferred tax assets, after valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Texas Instruments Inc. net deferred tax asset (liability) increased from 2021 to 2022 and from 2022 to 2023.

Texas Instruments Inc., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	757)	473)	263)	343)	197)
	Deferred tax liabilities	63)	66)	87)	90)	78)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Texas Instruments Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Texas Instruments Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Texas Instruments Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	32,348)	27,207)	24,676)	19,351)	18,018)
Less: Noncurrent deferred tax assets, net	757)	473)	263)	343)	197)
Total assets (adjusted)	31,591)	26,734)	24,413)	19,008)	17,821)
Adjustment to Total Liabilities
Total liabilities (as reported)	15,451)	12,630)	11,343)	10,164)	9,111)
Less: Noncurrent deferred tax liabilities, net	63)	66)	87)	90)	78)
Total liabilities (adjusted)	15,388)	12,564)	11,256)	10,074)	9,033)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	16,897)	14,577)	13,333)	9,187)	8,907)
Less: Net deferred tax assets (liabilities)	694)	407)	176)	253)	119)
Stockholders’ equity (adjusted)	16,203)	14,170)	13,157)	8,934)	8,788)
Adjustment to Net Income
Net income (as reported)	6,510)	8,749)	7,769)	5,595)	5,017)
Add: Deferred income tax expense (benefit)	(299)	(191)	15)	(137)	81)
Net income (adjusted)	6,211)	8,558)	7,784)	5,458)	5,098)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Texas Instruments Inc., Financial Data: Reported vs. Adjusted

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Texas Instruments Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	37.16%	43.68%	42.35%	38.69%	34.88%
Adjusted net profit margin	35.45%	42.73%	42.43%	37.74%	35.44%
Total Asset Turnover
Reported total asset turnover	0.54	0.74	0.74	0.75	0.80
Adjusted total asset turnover	0.55	0.75	0.75	0.76	0.81
Financial Leverage
Reported financial leverage	1.91	1.87	1.85	2.11	2.02
Adjusted financial leverage	1.95	1.89	1.86	2.13	2.03
Return on Equity (ROE)
Reported ROE	38.53%	60.02%	58.27%	60.90%	56.33%
Adjusted ROE	38.33%	60.40%	59.16%	61.09%	58.01%
Return on Assets (ROA)
Reported ROA	20.12%	32.16%	31.48%	28.91%	27.84%
Adjusted ROA	19.66%	32.01%	31.88%	28.71%	28.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Texas Instruments Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Texas Instruments Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Texas Instruments Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Texas Instruments Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Texas Instruments Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Texas Instruments Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Revenue	17,519)	20,028)	18,344)	14,461)	14,383)
Profitability Ratio
Net profit margin¹	37.16%	43.68%	42.35%	38.69%	34.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,211)	8,558)	7,784)	5,458)	5,098)
Revenue	17,519)	20,028)	18,344)	14,461)	14,383)
Profitability Ratio
Adjusted net profit margin²	35.45%	42.73%	42.43%	37.74%	35.44%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 6,510 ÷ 17,519 = 37.16%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 6,211 ÷ 17,519 = 35.45%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Texas Instruments Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenue	17,519)	20,028)	18,344)	14,461)	14,383)
Total assets	32,348)	27,207)	24,676)	19,351)	18,018)
Activity Ratio
Total asset turnover¹	0.54	0.74	0.74	0.75	0.80
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	17,519)	20,028)	18,344)	14,461)	14,383)
Adjusted total assets	31,591)	26,734)	24,413)	19,008)	17,821)
Activity Ratio
Adjusted total asset turnover²	0.55	0.75	0.75	0.76	0.81

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 17,519 ÷ 32,348 = 0.54

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 17,519 ÷ 31,591 = 0.55

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Texas Instruments Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	32,348)	27,207)	24,676)	19,351)	18,018)
Stockholders’ equity	16,897)	14,577)	13,333)	9,187)	8,907)
Solvency Ratio
Financial leverage¹	1.91	1.87	1.85	2.11	2.02
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	31,591)	26,734)	24,413)	19,008)	17,821)
Adjusted stockholders’ equity	16,203)	14,170)	13,157)	8,934)	8,788)
Solvency Ratio
Adjusted financial leverage²	1.95	1.89	1.86	2.13	2.03

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 32,348 ÷ 16,897 = 1.91

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 31,591 ÷ 16,203 = 1.95

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Texas Instruments Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Stockholders’ equity	16,897)	14,577)	13,333)	9,187)	8,907)
Profitability Ratio
ROE¹	38.53%	60.02%	58.27%	60.90%	56.33%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,211)	8,558)	7,784)	5,458)	5,098)
Adjusted stockholders’ equity	16,203)	14,170)	13,157)	8,934)	8,788)
Profitability Ratio
Adjusted ROE²	38.33%	60.40%	59.16%	61.09%	58.01%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,510 ÷ 16,897 = 38.53%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 6,211 ÷ 16,203 = 38.33%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Texas Instruments Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Total assets	32,348)	27,207)	24,676)	19,351)	18,018)
Profitability Ratio
ROA¹	20.12%	32.16%	31.48%	28.91%	27.84%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,211)	8,558)	7,784)	5,458)	5,098)
Adjusted total assets	31,591)	26,734)	24,413)	19,008)	17,821)
Profitability Ratio
Adjusted ROA²	19.66%	32.01%	31.88%	28.71%	28.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,510 ÷ 32,348 = 20.12%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,211 ÷ 31,591 = 19.66%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Texas Instruments Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Texas Instruments Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Texas Instruments Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)