Texas Instruments Incorporated reported consolidated financial results for the fourth quarter and year ended Dec. 31, 2017. For the quarter, the company reported revenue of USD 3,750 million against USD 3,414 million a year ago. Operating profit was USD 1,563 million against USD 1,332 million a year ago. Income before income taxes was USD 1,550 million against USD 1,497 million a year ago. Net income was USD 344 million against USD 1,047 million a year ago. Diluted earnings per share were USD 0.34 against USD 1.02 a year ago. Cash flows from operating activities was USD 1,929 million against USD 1,387 million a year ago. Capital expenditures were USD 231 million against USD 110 million a year ago.

For the full year, the company reported revenue of USD 14,961 million against USD 13,370 million a year ago. Operating profit was USD 6,083 million against USD 4,855 million a year ago. Income before income taxes was USD 6,080 million against USD 4,930 million a year ago. Net income was USD 3,682 million against USD 3,595 million a year ago. Diluted earnings per share were USD 3.61 against USD 3.48 a year ago. Cash flows from operating activities was USD 5,363 million against USD 4,614 million a year ago. Capital expenditures were USD 695 million against USD 531 million a year ago.

TI's first-quarter outlook is for revenue in the range of USD 3.49 billion to USD 3.79 billion, and earnings per share between USD 1.01 and USD 1.17, which includes an estimated USD 30 million discrete tax benefit.

The company reduced annual operating tax rate from 31% in 2017 to an ongoing rate of 18% starting in 2019, comprehending the benefit of exports and having manufacturing, R&D and intellectual property in the United States.

In 2018, annual operating tax rate will be 23%, 5 percentage points higher, due to transitional expense associated with the reduced U.S. tax rate in 2018.