TXN - Earnings call transcript Q2 2018 | Texas Instruments Incorporated

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Operator

Please standby. Good day, and welcome to the Texas Instruments Second Quarter 2018 Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to David Pahl. Please go ahead, sir.

David Pahl

you. Thank thank our and earnings quarter for call. conference you afternoon second joining XXXX Good Chief is Financial TI's Lizardi, Rafael Officer, with today. me

include on of the over any be can This This you missed is our replay it call the ti.com/ir. website website. will broadcast web through and web. through For will the being forward-looking at also our release, available who accessed statements find live differ could notice TI's that management's you published materially A can contained involve to call uncertainties a TI's you from the well that most expectations. review cause in filings for risks regarding more encourage We as release SEC today as current results description. and complete recent statements the to be earnings forward-looking

in last TI Rich as You will and XX the weeks roles investors months. even of times near with the week resumed the the CEO be that TI making several led President role over years, his look under current continuing we met successfully had for announced back. of he's several has Rich leadership and with next Templeton and to we along with couple He'll attending conferences I've tell future be I last excited be can his and forward past meeting to better. and Rich likely you few Chairman. saw the over stronger

focus. running doing and with he strengthening operations that's engaged As best, fully competitive our busy what our our you imagine, and might he's laser strategy, executing does advantages, and

believe the for products a that businesses, In automotive guidance. increased not second discrete industrial per provide the ago businesses. backdrop summary. Processing including results, remained Revenue Turning quarter and year strong ago. X% Analog a markets. from the our of with is some In in in our demand ongoing per trailing were share to the cash increased free believe a same margins long-term. original from both With of share in grew $X.XX $X.X flow twelve-month for on tax we billion, quarter's of quick flow which grew basis, same the core year benefit for shareholder XX.X% Earnings details period on up to Operating cash this as in operations strength compared to X% revenue $X.X especially our was our $X.XX, XX% cash important quarter a Embedded most I'll revenue to start business a from and flow maximizing performance, We for I'll quarter, was value period flow XX% ago. our the cash model. billion. that a be growth, was the the Free our margin continues second revenue. year Free representative

that's and in product of includes growing continue portfolio to if the benefit our the the We the will from XXX-millimeter quality of lived We returned owners. to it's output. diverse our that valued only flow or efficiency be free of manufacturing our believe Analog cash which strategy, productively business and invested long latter

returned stock $X.X to a dividends owners of combination we repurchases. billion period, twelve-month of and trailing the For cash through

both year-ago custom declined. [ph]. revenue from Our now year due primarily a provide ASIC. I’ll of due connected quarter declined grew to growth commitment volume Chain free about cash ago and all by segment, details to Power revenue High segment. From flow owners to increased remains quarter, microcontrollers. to In some return Processing Signal revenue and the our year processors due unchanged. a analog our in to Embedded equal X% ago Other X% from XX%

year by to end strong quarter's ago. growth. broad into versus automotive market this insight and due Now based demand I’ll provide Industrial performance a some revenue remained

five Communication are and low-to customers. equipment across several sectors directed year and In be based This increases grew single-digit we've We continue sequentially. They And allocating with semiconductor diversity declined be continue to will to with deliver and fastest and automotive lastly, content digits a and and growing longevity. automotive ago These and by industrial that diverse sectors provide the to these investments, capital which on semiconductor have to customers. at markets. electronics growth. our and strategy increasing in revenue enterprise low-single strengthen based and from pleased fourteen -mid Personal some declined automotive initiatives a on systems our markets in summary, our grew. and our we continue industrial increases markets across where declines industrial broad belief offset focus been sectors driving the position. were is

will All our translates Rafael of this portfolio. and Rafael? capital terminal profitability, now our value management, high of outlook. review to a

Rafael Lizardi

a of Thanks, quarter On increased Dave, from quarter ago profit Gross the was were or XX.X% and basis as billion increased within everyone. higher year trailing and due expenses range $XXX gross profit a primarily expectations. From a good in revenue. ago, operating million, in year basis, X% expenses of revenue margin $X.XX twelve-month our revenue. Operating Gross points. were of profit expected. XX increase afternoon a the XX.X% to about

Over R&D. the invested last twelve in $X.XX months, have we billion

and then Analog Operating year $X.XX that quarter top-line per Operating was million. us were grow up and XXXX XX.X% charges We to with the market to margin disciplined are it be Processing, XX.X% year a allocating of our million $XX quarter third And XX% for $XX ago. about remaining was from Acquisition our declined billion R&D will about profit to profit capital process XX.X% two years. Embedded or of for XX.X% charges ago was pleased gain up quarter through XX% from the share. $XX expense revenue. ago. per of a Operating was allows Acquisition noncash for to million up from year quarter. continue

Net best income to $X.XX $X.XX growth. on share. flow in positions differentiated continue with was focused to or both per free second opportunities sustainable investments to nicely quarter the Our growth cash enabled contribute the billion businesses

capital $XXX year-ago tax the cash billion were generation. the quarter. comment we our billion cash analog quarter, quarter, results quarter. revenue, $X.XX XXX-millimeter management $XXX rate $X.XX of primarily with dividends, as trailing basis, Free a on starting due a our second flow In was total of from our million return Let more $XXX me on up in in as in $X.XX $X.XX a well million billion quarter. operations Capital revenue. million lower to the from Cash includes It for twelve-month own ago. flow second expenditures higher which was the a in and billion repurchased XX% from the year stock paid now increased

$X.X the of XX to past with our consistent in our to flow. strategy to We billion cash months, owners return free have returned owners all

their flow cash Over the our dividends same XX% sustainability. of represented period, free underscoring

Our year average ago range. $X.XX of quarter, debt with billion we of a expected XXX, of and it have retired as days balance became coupon X.XX%. coupon and debt debt billion the XX billion of $X.X from at with were strong sheet a investments currently X.XX%. weighted total within end up Inventory the $X.X andraised with cash year a In of quarter. $X.X our short-term days of We X of billion due second remained the

is inventory. there strategic We continue believe value owning controlling to and in our

of earnings expect quarter, benefit. $XX which billion in revenue for per the the in to range to discrete of estimated our includes billion $X.XX be to range the TI share $X.XX an we third million to $X.XX, outlook and Turning $X.XX tax

in We annual be rate tax XX% XX% XXXX. our to expect continue in to ongoing starting operating and about XXXX

Data. I cash our will due the of non-cash expectations for Just flow few year to closing, top-line be of generation. as charges. More strength that In performance can this demonstrated a details Financial our our and from is reminder, margin Summary the to higher growth financial the found on tax last under free throughout rate business taxes model know was our expansion over website years

technology, our We are advantages, and breadth, reach products. continue comparative diverse and and invest long-lived to market portfolio which in manufacturing

We With free back strengthen industrial and continue deliver the per and the and long us Dave. markets, for capital these through growth flow turn disciplined it products, come. that, enable let time focusing will which Analog improve I Embedded best to will to to best automotive, and and me continue cash Processing, allocation a on to to by believe share advantages

David Pahl

lines opportunity follow-up. up Thanks, many a your questions Rafael. question. After single of now our ask the an open provide yourself Operator? Operator, provide in to as you to we’ll possible an response, for order the additional you we question for to can please limit opportunity

Operator

Thank John Credit you. first [Operator question our Instructions] And we'll Suisse. Pitzer from take from

John Pitzer

results. guys. the Thank Congratulations solid you, on

high question first on my David, is the analog volume just So, segment.

to extent year-over-year think for had of it that pruned you be than the your was builds in as mentioned year? you the what more phenomenon to quarter. in extent that in you do do prepared this I what by product might feel you excess portfolio, that’s maybe to kind some that's And comments, I’m year that extent just think choice handset as curious declined indicator leading cycles a “cycle”? what the last robust for a June

David Pahl

for Yeah, John, thanks that asking question.

how we're if we process. that do remember allocating our is of a that. Calls, there R&D. through what went we've Capital in you where opportunities level disciplined of got for And pretty more and time. we've we'll is money what some we're to trying have result February in been think in We've essentially, And revenue I to resources seeing back a differentiation long-lived got some steer our Management

XX% think high year-over-year. I resources that's of know, inclusive result at opportunities. the when look allocating of And grew That’s the you a of what I overall, best sustainable volume. inside revenue results again, So, think that happened you to

revenue. comments, If It the see well. you automotive as of doesn't HVAL, well. to well of drop in prepared that that there percentage do industrial automotive into a did down make up of much and and industrial obviously as you Inside just continue would

and So anyway it. have follow-on, you we're that pleased with surprised Do John? outcome a by not

John Pitzer

gap Rafael and there's year-over-year in from showed and rather op embedded analog as trends on ever know sequentially look flat I and in business my a was And you on the margins. year-over-year analog? on probably embedded good op to operating the a leverage close sequential between will and that embedded margin gap Yeah, it than and here? How we at really about still op then market embedded do better it's But the think follow-on, leverage margins between that the revenue business. you basis

Rafael Lizardi

things flow we step it that some and company. comes So, say free the and cash capital let And about to we the there take back owners all for how growing of strategy you our driving share. to think of me down per value to back management us, and

it’s continue expect flow cash free not to Both are share. it's be growing we it's and businesses of per analog cash margins, flow those operating So not about all versus that to free to not embedded, it's margin, per contributors gross share.

growing is focus the So the top-line.

in and as As we in our case think are to invest we of where advantage. continue what a best automotive, analog markets, to footprint expand cost the XXX-millimeter we and the the have continue structural industrial we

David Pahl

go now the please. next Okay, we’ll to caller

Operator

from we And Timothy Arcuri UBS. have

Timothy Arcuri

Thank it's fact it's were that quarter a was of a basis you seasonal comps. few Thank what's difficult the very points question and in inventory had years. Is the couple a is which XXX But up is off like look bit actually year-over-year, little I guidance, difficult figure points basis comps there element any that a below you. I kind The September June But really on channel hundred normal. know at there the you numbers of lowest headwinds? seasonal guidance. to know more if more of and in below QX out is hard kind of some coming or much. seasonal I

David Pahl

just fees through steady when customers is specific from demand get say strongest that we that together or there remain weeks. We signals or and if low. to past, at have out at end remain we that are customer low, as I channels we we the market guidance, that as that about the and four our specific inventory stable, there remain example that as that. And if would like get two changing, something in about that something our orders specific say put Tim, reschedules the as call cancellations see you consignment And Yeah, programs. was well the we we remained was I that know would just let look times a lead

from changes pointed that other So it's a of exactly as data to thing at when couple points, seasonal. look you you hard describe don't any we the what is see And standpoint. out really

those And five last the five sequential ten been a at you years, of look it's growth. had we've so over year if you has over a period, And if Three look X% years X%. X%.

a seen the certainly our a you that So is follow of past. standpoint have we've Do things from certainly on? guidance in seasonal within the range

Timothy Arcuri

Thanks and were? then I follow orders to quick bill Dave, on. and give as a guess just book you can what

David Pahl

that. give I can

on me book the orders of X.XX. bill sequentially, always in up was to year quarter. – feel where X.XX programs it find book about bill that to point consignment and pull XX% don't Let book need I to with were a through it. Yeah, orders last we so comment X.XX out orders, was our get of XX% going advance bill I'll from any revenue just to ago demand.

as So book the or strong past. it clear the least of is bill to signal in used as a as isn't of a at signal to be what

So go please. caller to we'll thank And Tim. next you, the

Operator

from And we'll Seymore take Ross caller Deutsche Bank. from our next

Ross Seymore

guys. Hey,

David Pahl

Ross. Hi,

Ross Seymore

called but just business? as last of point potentially macro discussion fact, I to – does you, in And view. seeing Dave, necessarily you ask yet? wars, that know but me haven't Let about cetera, as et a all a from are think your question. you With further, not point TI any about of question, anything view, trade impact the of the impacting a in want to how cyclical general tariffs, out answer from of dynamic ask just your seeing

Rafael Lizardi

go take Yeah, Ross, that. I ahead will and

those take long-term to support the are ST And IP free and me strong industry. let of TI's trade and First, broader both protection. TI important

way. we that So – we continue feel

had do in position that continue long We been time advocate to that. have and we for and stated, a that we

are if are they comment not subject on the imported to yet. remember, July, integrated then into have If go or of that on origin the effect those they tariffs into that go into Chinese been effect, to that apply place announced so they Specifically public deemed once those in circuits, are of end United the – States. still goods through will are

not XX% other revenue United to that deemed only And revenue U.S. States. a of is subject TI, has our origin. imported origin In Chinese sliver our of so is be that XX%, would – XX% into For of about words, a tariffs. as the Chinese exports, as only

would further. applied supply line, only before other we our revenue bottom things to have any So those – to any could about make even potential we adjustments, that's chain do that of minimize impact X% it. and And tariffs that

So day, major don't at impact the than or other event a impact. any of the end direct we see minimal some

that eventually could impact, a the TI have that the but comment a the say that macro that industry against Now, macro free between a everybody. that's economies free beyond macro effect not level, anything detrimental to at to beyond that and that trade that's an would could very in trade have – goes semiconductor two largest world, be

David Pahl

follow you Ross? have on, Do

Ross Seymore

do. I Yeah,

it being And seen. and the sequentially, Other the in much things Just so at Analog if last we've Embedded guys what and the to much you Embedded years, was of your it few higher what being I look switching back we think is know much any segments, year-over-year, behind reasons there was lower for but higher? line lower seemed was pretty like sequentially we've Other seen but product than

David Pahl

if of Embedded, has Yeah, think percentage comms it look at equipment. higher I a you

impacted then in got strong by we've was third seasonality and in forget don't it that. second So Other, And quarter. that

thank those go And to next Ross, caller So, please. for questions. will you, the we

Operator

We Amit Markets. have RBC Daryanani from our next from Capital question

Amit Daryanani

if – or well from degree? lot. And headwind, – first you through you flow a quarter quarter? went well. to product does September you Maybe product the questions into me could revenue may, the but quantify I not had in revenue impact for that mine Thanks you the as word, off, guess, guys that two as some June rationalization your optimization

David Pahl

clarify product you you rationalization? what mean Amit, by can

Amit Daryanani

Yes.

you over in when a by time. revenue And of how how was there fair? these tracked about how if that reflection some R&D I so, your talked talked the declines of driven some fact not the were revenue consumer-centric about markets, markets, driven impact just of guess, by? Is budgets are think, decided the you I much that that to you Dave, participate

David Pahl

I we Capital Well, shared February Management and on in this if our look you back Call. think,

spend you allocating compare electronics, ten versus specifically we it's As markets years ago, personal five in our and at resources when there looked lower. end across and

opportunities just inside to that invest. zero. of still that not find opportunities space. continue personal good looking it's inside Now, electronics of We're sustainable for we There's growth and

about. what really that's So we're talking

of think specifically question So one segment. businesses inside the Analog again, I first about the in of came our

I think you our have that, total allocation results. with. pleased we're to judge capital the quite efficiency by of the And

question? answer your does help So to that

Amit Daryanani

guys year-over-year No, could follow-up, consistent on had that's just I you multiple helpful. of And quarters if a I gross guess, expansion, basis. margin have very

levers margins talk gross back what here? feel about the the of from margin the comfortable that to And maybe in XXXX, about can expand gross expand continue half you back could As you should are think half? enable do to you that

Rafael Lizardi

Amit. ahead go and I’ll take that Yeah,

in talked free company Capital of for not cash about per focus operating creation As margin. cash per settings, margin. flow for have the Management we It's It's It's our other in and flow is not share. value of gross share. dollars the free owners

content for So XXX-millimeter. where continue there. are line markets And simple. the as in to invest and the It's that's grow continue we because to best top that share markets and gain best and the then, expanding the semiconductor expanding to that is the and the we best opportunity continuing products

talked for have number years. a We that about of

$X about in ten As of through the of our last billion XXX-millimeter, went space. Analog four year, revenue of out

lot expansion that free room and a flow XXX-millimeter leaves on grow continued share. to for that cash So of per continuing

David Pahl

caller will Amit. you, please. we next And go the Okay, thank

Operator

JP Sur We will take our next Harlan question Morgan. from from

Harlan Sur

afternoon. good Yes,

strong the Solid generation. and free execution cash on flow quarterly job

color a us in breadth the automotive, these be Your Any growth on majority sense XX year-over-year you X up of these focused a helpful. would subsegments got give of markets? subsegments. just Were guys Industrial, you've Can here you've got year-over-year? markets, subsegments. the

David Pahl

that look when we're really had, of pleased it. all growth, sectors, at XX It’s them of the XX at that the combined you with you broad based. very of we And when Yeah, grew. Harlan, look out actually

broad-based. So it’s very

I at broad-based. look pipeline, across design-ins different think to our we look continue be – very products, that you different our in when and investments those

But So and have made. doesn't progress we some of standpoint, that it see headwinds have feel look we gives the about at a us won't course, And of you from cyclical you in we five sustainability point. year Do mean at that confidence ten the that it growth. good follow-on, Harlan? really that when

Harlan Sur

thanks Yeah, there. the insights for

of I think regions a maybe this know so all were quarter quarter, Japan. I follow-up right? to see last from – quarter? ship I all still, geographical think And is to is for on right? but did perspective, this ship but that data, except What last kind nevertheless important, regions up and This to, you

David Pahl

but the look story. – a talked same That times. reporting. when the They're I've it's that you shout-out look reporting Japan, independent you friends them them of them is that is to in as to. us give down, through And channel couple – call revenue a we tools mentioned, And what some ship allow a to my we've got at to

there. continuing customers make with progress So to they're the

Just it the of revenue U.S. that in in designed there. it's though a or lot either Europe ends Asia or up in shipping in ships even somewhere

on but shipping the have actual So is measurement we – box. label the that the

the called So know conference call, I which they're not happy out about. on they're unfortunately, still

caller we please. the go So Harlan. to thank next you, will And

Operator

Bank from will Arya Vivek our America. bank question of of next we And from take

Vivek Arya

Thanks on my the question execution. for taking good and congratulations

your I now CapEx. quarters, – trailing QX, is think I is below was X% over one, first X.X%. it four Depreciation now CapEx For the it's think, in

And should model what for and incremental So we are going? is all these CapEx where long-term assume right depreciation? the investments

Rafael Lizardi

take Yeah, that. let me

technology for to the to to CapEx. back manufacturing free for and revenue step XXX-millimeter, objective new maximizes growth me to cash advantage, low-cost grow share specifically and our remind what let you development flow right, which support the opportunity extend It's to invest including First is, long-term. our per

that but revenue the So in growth to of share. interesting real percent of metric driver long-term an flow is the have free mind, per cash is

what – in support and – that's the is and to There's are periods and test. things. that sustained That XXX-millimeter some been to XXX-millimeter. up have our invest There of demand, part tends to that it's factories There's building footprint CapEx fab other we is other assembly but going of you're of where to cost to go seeing. primarily predominantly, going even CapEx that strong we existing factories. expand at of continue CapEx, within So

I the increase. grew trailing point flow go go a Before to and months, our billion a want you ahead next cash the flow to from free on billion, $X.X on to flow billion cash $X make free about free In $X.X question, cash XX% growth. XX

would foremost, drew and about what – that? tax that So comparison. in grew our profit what that billion First drove $X before

XXX-millimeter, and to tax which, higher flow. is more industrial revenue with revenue, again, which, the majority automotive, continues to And question earlier, that revenue by and help and obviously, free of of the then driven that So reform. expansion the the drove cash second growth; more

So lower a in tax talked have rate did in the year United that States, we way. reform had a XXXX about, have we versus previous – the as in significant our and, we tax

about million are benefits year-to-date we associated reform. related tax also Additionally, one-time with of had of $XXX that tax

that a factor that So played comparison. in also

David Pahl

have Okay, that do Vivek so a with follow-up? you

Vivek Arya

thanks, Yeah, Dave.

customers on just I have components your other help know because you peers your seen supply of might trade behave things to customers down short stock of various other that, up, way, in just a be impact your but don't do. that their different passive Beyond of trajectory components. issue, might there I systems? But stock complete your you has been guys shortages know talk the

David Pahl

and, that time Yeah, spend lot that remain lead a remain And on to of keeping close the and they in majority metric that don't with vast do for we on-time our customers focused we stable. we Vivek, trying stable. products, continue And aggressively I we'll look think one-thing time course, work have those to mean we the performance. other that shipping is of of to as as inside gaps doesn't And is important have of that hotspots can.

remain that, and customers inside very, that continued to nervous. very of to a has tend And if you've at levels. lead So time get you're not shipping high got stated

from from specifically. that the It visibility not in bottlenecks So we any not we would be, there? places see can't have be up into. being able but to get something it's it could other shows Could customers product certainly order that book

think customers confidence remain and shipping we getting times what have from just performance, is So we can on can I in control, lead if product focused which us. the

we Okay, caller the will to go next please.

Operator

And we will question from take Research. from Stacy next Rasgon our Bernstein

Stacy Rasgon

Hi, for that you'd is my any Normally OpEx first might about could probably given, QX in the that have little we questions. make guys. be of anything this would Thanks things taking that one going My than down into into ask seen leading different a trajectory. be I on this? trends QX, drivers there near-term or seen bit sequentially. Is some ordinarily the what we've guess, historical

Rafael Lizardi

out. So, revenue there and were that if that We're out and would lines, because and it if EPS any guidance so Stacy, unusual. give know, that stop and there's point not unless guidance we pointing we right unusual as trends so, between you at nothing – the

trends just expect our ranges. within should reasonable you So usual

David Pahl

you Do have follow-on, Stacy?

Stacy Rasgon

on I question earlier And looking other time, the your guys margin do, now out you. benefit elevated expense filling and over continue you depreciation than that's it's you you offsets benefit. penetration from are the you're to out Do for because increasing obviously, think, on same XXX-millimeter CapEx. we assets. XXX-millimeter of time, as gross margins? thank At a more know There’s grow, the

Rafael Lizardi

like look I from at way this a the to standpoint. cash Well, is so

on spreadsheet, that investment don't flowing standpoint. and then those cell first after return. a I I think that your about out, cash the think as depreciation So it for from is purposes of

– will for time of put So as pretty cash to very fall-through these Any the investments XXX, in investments tools and any we are high. long-term long that those that a time. good, continue we on last invest place we those is think is on

David Pahl

have Okay, caller. I very Stacy. think one much, we more you time for And thank

Operator

Stanley. And Joe we more question from have one from Morgan Moore

Joe Moore

Great, thank you.

And know grow that of bit some electronics on a more grew I think were some Can said me color markets smartphones, QX? and you in continue Thanks. your which? as to particular, were in up give down. QX You personal smartphones into I

David Pahl

Yeah, inside Joe, there. on into detail. of had growing sectors we on saw some inside also wanted personal won’t give growing. customers not go that want some to out We level – to electronics was but all of that that color of customers see I multiple were we growing, going did point were We what

we saw. what that's So

a that think the to we electronics. to invest continue that industrial the place a to of for growth of opportunity portfolio is the my having look automotive. what but being illustrates we personal of see us, engine product multiple diverse point of sell And and Longer at power it I is earlier, term, customers. kind inside able as we is a really we don't significant from to that going believe and growth really and the majority come to

we've moved those into growth So incrementally, our it as we've areas. spend, more up taken

going other to to those and PCs things for have we're decades but – and come. again, handsets So

find just you to there of inside and good in continue we them. So have follow-on, Do want opportunities Joe? invest to

Joe Moore

the for there. thanks color Yeah,

for now think communication opportunity? and you help question understand I that last the investment you need to affect and infrastructure, that the repeatedly TI. XG longer-term In there's you've us the automotive. terms that opportunity industrial an soft in? on about of XG do comment areas that Do made to just few how How And quarters. everyone are will around invest been just obviously, think in the you think it's

David Pahl

with that so management through consistent yeah, thinking walked again would as to back remains I that. our capital presentation we refer Sure, think I

investments I equipment time. say would comms shifted our a that over from So standpoint, have

for frequencies to is support things standards things all like find going are complexity translates beamforming Analog look you that MIMO, the XG to products being things, in the that the that into radio massive that, for And able support itself. If in and like new at the things us, that. added, needed the antennas that be and new other you to

same years change our So and up has that X But the XX in really versus, digital is when look at at and doesn't time standards in the supporting for It mix spend side. spend impact Analog XG that same ago. transition. our say, for time, we some been

actually down So is that. our on spend

coming describe So we primarily as industrial our again, and the next from I'd automotive decade. over growth look

where our but we're to shift well. we advantage inside say position around confident So will great that, to as And general, of I'd that's XG very tried in got position. off of building spending we've of a – just increase we've take like spending, XG. And in things

So we're those with very investments. pleased

Rafael Lizardi

So, that last call? the was

David Pahl

Correct.

Rafael Lizardi

demonstrate capital Yeah, results, our wasn't generated return flow we trailing so just strategy. and but want basis among of $X.X billion before XX-month We on management to it because a things, point of cash flow our I close, billion that $X.X would we execution in other cash make timeframe. free free on and continued asked, a discipline

was was company. That all buybacks. case through and In free virtually, the that on generated returned free of owners was of flow. So the dividends, dividends XX% both it cash comparison, flow cash to the of

the XX% between lower but and I'd of those towards the guidance, XX% clearly right underscore end, sustainability just So so dividends.

David Pahl

evening. Okay, and on will Rafael Good this our thank for call available replay you, website. thank us. of joining A all be you

Operator

you And that participation. Thank your today's concludes for conference.

You may now disconnect.

Texas Instruments (TXN) 24 Jul 182018 Q2 Earnings call transcript