Exhibit 12
Texas Instruments Incorporated and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Millions of dollars)
For Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income tax | $ | 3,874 | $ | 2,754 | $ | 1,935 | $ | 2,955 | $ | 4,551 | ||||||||||
Equity method investments (gains) and losses | (3 | ) | (6 | ) | (17 | ) | (5 | ) | (1 | ) | ||||||||||
Add: | ||||||||||||||||||||
Fixed charges (from below) | 107 | 105 | 99 | 54 | 15 | |||||||||||||||
Amortization of capitalized interest | 2 | 2 | 2 | 3 | 4 | |||||||||||||||
Distributed income from equity investees | 1 | 11 | 16 | 11 | 1 | |||||||||||||||
Total earnings | $ | 3,981 | $ | 2,866 | $ | 2,035 | $ | 3,018 | $ | 4,570 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Total gross interest on debt (expensed) (a) | $ | 103 | $ | 104 | $ | 104 | $ | 48 | $ | — | ||||||||||
Amortization of debt premium and debt issuance costs | (9 | ) | (9 | ) | (18 | ) | (6 | ) | — | |||||||||||
Estimated interest element of rental and lease expense | 13 | 10 | 13 | 12 | 15 | |||||||||||||||
Total fixed charges | $ | 107 | $ | 105 | $ | 99 | $ | 54 | $ | 15 | ||||||||||
Ratio of earnings to fixed charges | 37.2 | 27.3 | 20.6 | 55.9 | 304.8 | |||||||||||||||
(a) Capitalized interest was immaterial for 2014, 2013, 2012 and 2011.