Investor Presentaiton
FORM 10-K
Changes in expected demand for our products could have a material adverse effect on our results
of operations.
Our customers include companies in a wide range of end markets and sectors within those markets. If demand in one or more
sectors within our end markets declines or grows at a significantly slower pace than management expects, our results of
operations may be adversely affected. The cyclical nature of the semiconductor market may lead to significant and often rapid
increases and decreases in product demand. Additionally, the loss or significant curtailment of purchases by one or more of our
large customers, including curtailments due to a change in the design or manufacturing sourcing policies or practices of these
customers, or the timing of customer or distributor inventory adjustments, may adversely affect our results of operations and
financial condition.
Our results of operations also might suffer because of a general decline in customer demand resulting from, for example:
uncertainty regarding the stability of global credit and financial markets; natural events or domestic or international political,
social, economic or other conditions; breaches of customer information technology systems that disrupt customer operations;
or a customer's inability to access credit markets and other sources of needed liquidity.
Our ability to match inventory and production with the product mix needed to fill orders may affect our ability to meet a quarter's
revenue forecast. In addition, when responding to customers' requests for shorter shipment lead times, we manufacture products
based on forecasts of customers' demands. These forecasts are based on multiple assumptions. If we inaccurately forecast
customer demand, we may hold inadequate, excess or obsolete inventory that would reduce our profit margins and adversely
affect our results of operations and financial condition.
Our global operations subject us to risks associated with domestic or international political, social,
economic or other conditions.
We have facilities in more than 30 countries. About 85 percent of our revenue comes from shipments to locations outside the
United States; in particular, shipments of products into China typically represent a large portion of our revenue. We are exposed to
political, social and economic conditions, security risks, terrorism or other hostile acts, health conditions, labor conditions, and
possible disruptions in transportation, communications and information technology networks of the various countries in which we
operate, including the United States. Additionally, certain countries where we operate have experienced, and other countries may
experience, increasing protectionism that may impact global trade. This could result in an adverse effect on our operations and our
financial results. In addition, our global operations expose us to periods when the U.S. dollar significantly fluctuates in relation to
the non-U.S. currencies in which we transact business. The remeasurement of non-U.S. dollar transactions can have an adverse
effect on our results of operations and financial condition.
Our results of operations could be affected by natural events in the locations in which we operate.
We have manufacturing, data and design facilities and other operations in locations subject to natural occurrences such as severe
weather, geological events or health epidemics that could disrupt operations. A natural disaster that results in a prolonged
disruption to our operations may adversely affect our results and financial condition.
Our operating results and our reputation could be adversely affected by breaches or disruptions of our
information technology systems.
Breaches or disruptions of our information technology systems could be caused by computer viruses, system failures, unauthorized
access, sabotage, vandalism or terrorism. These events could compromise our information technology networks; result in lost data
or the unauthorized release of our, our customers' or our suppliers' confidential or proprietary information; cause a disruption to
our manufacturing and other operations; result in the release of employee personal data; or cause us to incur increased
information technology protection costs, any of which could adversely affect our operating results and our reputation.
We face supply chain and manufacturing risks.
We rely on third parties to supply us with goods and services in a cost-effective and timely manner. Our access to needed goods
and services may be adversely affected by potential disputes with suppliers or disruptions in our suppliers' operations as a result
of, for example: quality excursions; uncertainty regarding the stability of global credit and financial markets; domestic or
international political, social, economic and other conditions; natural events in the locations in which our suppliers operate; or
limited or delayed access to key raw materials, natural resources and utilities. Additionally, a breach of our suppliers' information
technology systems could result in a release of our confidential or proprietary information. If our suppliers are unable to access
credit markets and other sources of needed liquidity, we may be unable to obtain needed supplies, collect accounts receivable or
access needed technology.
TEXAS INSTRUMENTS . 2016 FORM 10-K
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