Investor Presentaiton
FORM 10-K
In particular, our manufacturing processes and critical manufacturing equipment require that certain key raw materials, natural
resources and utilities be available. Limited or delayed access to and high costs of these items could adversely affect our results of
operations. Our products contain materials that are subject to conflict minerals reporting requirements. Our relationships with
customers and suppliers may be adversely affected if we are unable to describe our products as conflict-free. Additionally, our
costs may increase if one or more of our customers demand that we change the sourcing of materials we cannot identify as
conflict-free.
Our inability to timely implement new manufacturing technologies or install manufacturing equipment could adversely affect our
results of operations. We subcontract a portion of our wafer fabrication and assembly and testing of our products, and we depend
on third parties to provide advanced logic manufacturing process technology development. We do not have long-term contracts
with all of these suppliers, and the number of alternate suppliers is limited. Reliance on these suppliers involves risks, including
possible shortages of capacity in periods of high demand, suppliers' inability to develop and deliver advanced logic manufacturing
process technology in a timely, cost effective, and appropriate manner and the possibility of suppliers' imposition of increased
costs on us.
Our operations could be affected by the complex laws, rules and regulations to which our business
is subject.
We are subject to complex laws, rules and regulations affecting our domestic and international operations relating to, for example,
the environment, safety and health; exports and imports; bribery and corruption; tax; data privacy and protection; labor and
employment; competition; and intellectual property ownership and infringement. Compliance with these laws, rules and regulations
may be onerous and expensive and could restrict our ability to manufacture or ship our products and operate our business. If we
fail to comply or if we become subject to enforcement activity, we could be subject to fines, penalties or other legal liability.
Furthermore, should these laws, rules and regulations be amended or expanded, or new ones enacted, we could incur materially
greater compliance costs or restrictions on our ability to manufacture our products and operate our business.
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Some of these complex laws, rules and regulations - for example, those related to environmental, safety and health requirements
may particularly affect us in the jurisdictions in which we manufacture products, especially if such laws and regulations: require
the use of abatement equipment beyond what we currently employ; require the addition or elimination of a raw material or process
to or from our current manufacturing processes; or impose costs, fees or reporting requirements on the direct or indirect use of
energy, natural resources, or materials or gases used or emitted into the environment in connection with the manufacture of our
products. A substitute for a prohibited raw material or process might not be available, or might not be available at reasonable cost.
Our results of operations and our reputation could be affected by warranty claims, product liability
claims, product recalls or legal proceedings.
We could be subject to claims based on warranty, product liability, epidemic or delivery failures, or other grounds relating to our
products, manufacturing, services, designs or communications that could lead to significant expenses as we defend such claims or
pay damage awards or settlements. In the event of a claim, we may also incur costs if we decide to compensate the affected
customer or end consumer. We maintain product liability insurance, but there is no guarantee that such insurance will be available
or adequate to protect against all such claims. In addition, it is possible for one of our customers to recall a product containing a TI
part, for example, with respect to products used in automotive applications or handheld electronics, which may cause us to incur
costs and expenses relating to the recall. Any of these events could adversely affect our results of operations, financial condition
and our reputation.
Our results of operations could be affected by changes in tax-related matters.
We have facilities in more than 30 countries and as a result are subject to taxation and audit by a number of taxing authorities.
Tax rates vary among the jurisdictions in which we operate. If our tax rate increases, our results of operations could be adversely
affected. A number of factors could cause our taxes to increase, including a change in the jurisdictions in which our profits are
earned and taxed; a change in the mix of profits from those jurisdictions; changes in available tax credits; changes in applicable
tax rates; changes in tariff regulations or surcharges; or adverse resolution of audits by taxing authorities.
In addition, we are subject to laws and regulations in various jurisdictions that determine how much profit has been earned and
when it is subject to taxation in that jurisdiction. Changes in these laws and regulations could affect the locations where we are
deemed to earn income, which could in turn affect our results of operations. We have deferred tax assets on our balance sheet.
Changes in applicable tax laws and regulations or in our business performance could affect our ability to realize those deferred tax
assets, which could also affect our results of operations. Each quarter we forecast our tax liability based on our forecast of our
performance for the year. If that performance forecast changes, our forecasted tax liability will change.
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TEXAS INSTRUMENTS
2016 FORM 10-KView entire presentation