TI(TXN) - 2024 Q4 - Annual Report

Financial Performance - Revenue for 2024 was $15.64 billion, a decrease of$ 1.88 billion or 10.7% compared to 2023[110] - Gross profit for 2024 was $9.09 billion, down$ 1.93 billion or 17.5%, with a gross profit margin of 58.1% compared to 62.9% in 2023[110] - Net income for 2024 was $4.80 billion, down from$ 6.51 billion in 2023, with EPS decreasing from $7.07 to$ 5.20[114] - Operating profit for 2024 was $5.47 billion, or 34.9% of revenue, compared to$ 7.33 billion or 41.8% in 2023[112] - The Embedded Processing segment saw a revenue decline of 25% to $2.53 billion, with operating profit down 65% to$ 352 million[116] Cash Flow and Liquidity - Cash flow from operations was $6.32 billion, representing 40.4% of revenue, a decrease of$ 102 million from 2023[119][126] - Free cash flow for 2024 was $1.50 billion, or 9.6% of revenue, compared to$ 1.35 billion or 7.7% in 2023[109][126] - Total cash at the end of 2024 was $7.58 billion, a decrease of$ 995 million from the end of 2023[118] Capital Expenditures and Investments - Capital expenditures for 2024 were $4.82 billion, down from$ 5.07 billion in 2023, primarily for semiconductor manufacturing[120] - The company expects to receive between $7.5 billion to$ 9.5 billion from the CHIPS Act through 2034, including $1.6 billion for large-scale wafer fabs[121] Interest Rate Impact - As of December 31, 2024, a hypothetical 100 basis point increase in interest rates would decrease the fair value of cash equivalents and short-term investments by approximately$ 22 million[136] - A 100 basis point increase in interest rates would decrease the fair value of long-term debt by $952 million[136] - Changes in interest rates do not affect cash flows associated with long-term debt as the interest rates are fixed[136] - The company has potential exposure to changes in interest rates affecting both investments and debt[135]