TI to return more cash to shareholders with 24% dividend increase and authorization for additional $12 billion in share repurchases

DALLAS, Sept. 20, 2018 /PRNewswire/ -- Texas Instruments Incorporated (TI) (NASDAQ: TXN) today said it will raise its quarterly cash dividend by 24 percent, from $0.62 per share to $0.77, or $3.08 annualized. The higher dividend will be payable November 19, 2018, to stockholders of record on October 31, 2018, contingent upon formal declaration by the board of directors at its regular meeting in October.

The board of directors also authorized the company to repurchase an additional $12 billion of its common stock over time. This is in addition to approximately $7.4 billion of previously authorized repurchases that remained at the end of June 2018.

Dividend increases and share repurchases are integral pieces of TI's capital management strategy, reflecting the company's continued strength in free cash flow generation and its commitment to return excess cash to stockholders. In the 12-month period ending June 2018, TI has paid 41 percent of its free cash flow in dividends. Today's announcement marks 15 consecutive years of dividend increases. As of second quarter 2018, the company has reduced its outstanding shares by 43 percent through its consistent share repurchases since the end of 2004.

Notice regarding forward-looking statements

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:

    --  Market demand for semiconductors, particularly in our end markets;
    --  Our ability to compete in products and prices in an intensely
        competitive industry;
    --  Customer demand that differs from forecasts and the financial impact of
        inadequate or excess company inventory that results from demand that
        differs from projections;
    --  Economic, social and political conditions in the countries in which we,
        our customers or our suppliers operate, including security risks; global
        trade policies; political and social instability; health conditions;
        possible disruptions in transportation, communications and information
        technology networks; and fluctuations in foreign currency exchange
        rates;
    --  Evolving cybersecurity threats to our information technology systems or
        those of our customers or suppliers;
    --  Natural events such as severe weather, geological events or health
        epidemics in the locations in which we, our customers or our suppliers
        operate;
    --  Our ability to develop, manufacture and market innovative products in a
        rapidly changing technological environment;
    --  Timely implementation of new manufacturing technologies and installation
        of manufacturing equipment, and the ability to obtain needed third-party
        foundry and assembly/test subcontract services;
    --  Availability and cost of raw materials, utilities, manufacturing
        equipment, third-party manufacturing services and manufacturing
        technology;
    --  Compliance with or changes in the complex laws, rules and regulations to
        which we are or may become subject, or actions of enforcement
        authorities, that restrict our ability to manufacture or ship our
        products or operate our business, or subject us to fines, penalties or
        other legal liability;
    --  Product liability or warranty claims, claims based on epidemic or
        delivery failure, or other claims relating to our products,
        manufacturing, services, design or communications, or recalls by our
        customers for a product containing one of our parts;
    --  Changes in tax law and accounting standards that can impact the tax rate
        applicable to us, the jurisdictions in which profits are determined to
        be earned and taxed, adverse resolution of tax audits, increases in
        tariff rates, and the ability to realize deferred tax assets;
    --  A loss suffered by one of our customers or distributors with respect to
        TI-consigned inventory;
    --  Financial difficulties of our distributors or their promotion of
        competing product lines to our detriment, or the loss of a significant
        number of distributors;
    --  Losses or curtailments of purchases from key customers or the timing and
        amount of distributor and other customer inventory adjustments;
    --  Our ability to maintain or improve profit margins, including our ability
        to utilize our manufacturing facilities at sufficient levels to cover
        our fixed operating costs, in an intensely competitive and cyclical
        industry and despite changes in the regulatory environment;
    --  Our ability to maintain and enforce a strong intellectual property
        portfolio and maintain freedom of operation in all jurisdictions where
        we conduct business; or our exposure to infringement claims;
    --  Instability in the global credit and financial markets that affects our
        ability to fund our daily operations, invest in the business, make
        strategic acquisitions, or make principal and interest payments on our
        debt;
    --  Increases in health care and pension benefit costs;
    --  Our ability to recruit and retain skilled engineering, management and
        technical personnel;
    --  Our ability to successfully integrate and realize opportunities for
        growth from acquisitions, or our ability to realize our expectations
        regarding the amount and timing of restructuring charges and associated
        cost savings; and
    --  Impairments of our non-financial assets.

For a more detailed discussion of these factors, see the Risk Factors discussion in Item 1A of TI's most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances.

About Texas Instruments

Texas Instruments Incorporated (TI) is a global semiconductor design and manufacturing company that develops analog ICs and embedded processors. By employing the world's brightest minds, TI creates innovations that shape the future of technology. TI is helping approximately 100,000 customers transform the future, today. Learn more at www.ti.com.

TXN-G

View original content:http://www.prnewswire.com/news-releases/ti-to-return-more-cash-to-shareholders-with-24-dividend-increase-and-authorization-for-additional-12-billion-in-share-repurchases-300716365.html

SOURCE Texas Instruments Incorporated