Texas Instruments 2007 Annual Report Download - page 65

SAFE HARBOR STATEMENT
TEXAS INSTRUMENTS 2007 ANNUAL REPORT 63
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This report includes forward-looking statements
intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-
looking statements generally can be identified by phrases such as TI or its management “believes,” “expects,” “anticipates,” “foresees,”
“forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this report that describe our business
strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are
subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the
expectations of TI or its management:
•฀Market฀demand฀for฀semiconductors,฀particularly฀for฀analog฀chips฀and฀digital฀signal฀processors฀in฀key฀markets฀such฀as฀
communications, entertainment electronics and computing;
•฀TI’s฀ability฀to฀maintain฀or฀improve฀profit฀margins,฀including฀its฀ability฀to฀utilize฀its฀manufacturing฀facilities฀at฀sufficient฀levels฀to฀cover฀
its fixed operating costs, in an intensely competitive and cyclical industry;
•฀TI’s฀ability฀to฀develop,฀manufacture฀and฀market฀innovative฀products฀in฀a฀rapidly฀changing฀technological฀environment;฀
•฀TI’s฀ability฀to฀compete฀in฀products฀and฀prices฀in฀an฀intensely฀competitive฀industry;฀
•฀TI’s฀ability฀to฀maintain฀and฀enforce฀a฀strong฀intellectual฀property฀portfolio฀and฀obtain฀needed฀licenses฀from฀third฀parties;฀
•฀Expiration฀of฀license฀agreements฀between฀TI฀and฀its฀patent฀licensees,฀and฀market฀conditions฀reducing฀royalty฀payments฀to฀TI;฀
•฀Economic,฀social฀and฀political฀conditions฀in฀the฀countries฀in฀which฀TI,฀its฀customers฀or฀its฀suppliers฀operate,฀including฀security฀risks,฀
health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates;
•฀Natural฀events฀such฀as฀severe฀weather฀and฀earthquakes฀in฀the฀locations฀in฀which฀TI,฀its฀customers฀or฀its฀suppliers฀operate;฀
•฀Availability฀and฀cost฀of฀raw฀materials,฀utilities,฀manufacturing฀equipment,฀third-party฀manufacturing฀services฀and฀manufacturing฀
technology;
•฀Changes฀in฀the฀tax฀rate฀applicable฀to฀TI฀as฀the฀result฀of฀changes฀in฀tax฀law,฀the฀jurisdictions฀in฀which฀profits฀are฀determined฀to฀be฀
earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets;
•฀Losses฀or฀curtailments฀of฀purchases฀from฀key฀customers฀and฀the฀timing฀and฀amount฀of฀distributor฀and฀other฀customer฀inventory฀
adjustments;
•฀Customer฀demand฀that฀differs฀from฀our฀forecasts;฀
•฀The฀financial฀impact฀of฀inadequate฀or฀excess฀TI฀inventory that results from demand that differs from projections;
•฀TI’s฀ability฀to฀access฀its฀bank฀accounts฀and฀lines฀of฀credit฀or฀otherwise฀access฀the฀capital฀markets;฀
•฀Product฀liability฀or฀warranty฀claims,฀claims฀based฀on฀epidemic฀or฀delivery฀failure฀or฀recalls฀by฀TI฀customers฀for฀a฀product฀containing฀
a TI part;
•฀TI’s฀ability฀to฀recruit฀and฀retain฀skilled฀personnel;฀and฀
•฀Timely฀implementation฀of฀new฀manufacturing฀technologies,฀installation฀of฀manufacturing฀equipment฀and฀the฀ability฀to฀obtain฀
needed third-party foundry and assembly/test subcontract services.
For a more detailed discussion of these factors, see the text under the heading “Risk Factors” in Item 1A of our most recent Form 10-K.
The forward-looking statements included in this report are made only as of the date of publication (February 2008), and we undertake
no obligation to update the forward-looking statements to reflect subsequent events or circumstances.