Texas Instruments 2015 Annual Report Download - page 14

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
8
FORM 10-K
Employees
At฀December฀31,฀2014,฀we฀had฀31,003฀employees.
Available information
Our฀Internet฀address฀is฀www.ti.com.฀Information฀on฀our฀web฀site฀is฀not฀a฀part฀of฀this฀report.฀We฀make฀available฀free฀of฀charge฀through฀
our Investor Relations฀web฀site฀our฀reports฀on฀Forms฀10-K,฀10-Q฀and฀8-K,฀and฀amendments฀to฀those฀reports,฀as฀soon฀as฀reasonably฀
practicable฀after฀they฀are฀filed฀with฀the฀SEC.฀Also฀available฀through฀the฀TI฀฀Investor Relations฀web฀site฀are฀reports฀filed฀by฀our฀directors฀
and executive officers on Forms 3, 4 and 5, and amendments to those reports.
Available฀on฀our฀web฀site฀at฀www.ti.com/corporategovernance฀are:฀(i)฀our฀Corporate฀Governance฀Guidelines;฀(ii)฀charters฀for฀the฀Audit,฀
Compensation,฀and฀Governance฀and฀Stockholder฀Relations฀Committees฀of฀our฀board฀of฀directors;฀(iii)฀our฀Code฀of฀Business฀Conduct;฀and฀
(iv) our Code of Ethics for TI Chief Executive Officer and Senior Finance Officers. Stockholders may request copies of these documents
free฀of฀charge฀by฀writing฀to฀Texas฀Instruments฀Incorporated,฀P.O.฀Box฀660199,฀MS฀8657,฀Dallas,฀Texas,฀75266-0199,฀Attention:฀
Investor Relations.
ITEM 1A. Risk Factors.
You should read the following risk฀factors฀in฀conjunction฀with฀the฀factors฀discussed฀elsewhere฀in฀this฀and฀other฀of฀our฀filings฀with฀the฀
Securities฀and฀Exchange฀Commission฀(SEC)฀and฀in฀materials฀incorporated฀by฀reference฀in฀these฀filings.฀These฀฀risk factors are intended
to฀highlight฀certain฀factors฀that฀may฀affect฀our฀financial฀condition฀and฀results฀of฀operations฀and฀are฀not฀meant฀to฀be฀an฀exhaustive฀
discussion฀of฀risks฀that฀apply฀to฀companies฀like฀TI฀with฀broad฀international฀operations.฀Like฀other฀companies,฀we฀are฀susceptible฀to฀
macroeconomic฀downturns฀in฀the฀United฀States฀or฀abroad฀that฀may฀affect฀the฀general฀economic฀climate฀and฀our฀performance฀and฀
the฀performance฀of฀our฀customers.฀Similarly,฀the฀price฀of฀our฀securities฀is฀subject฀to฀volatility฀due฀to฀fluctuations฀in฀general฀market฀
conditions,฀actual฀financial฀results฀that฀do฀not฀meet฀our฀and/or฀the฀investment฀community’s฀expectations,฀changes฀in฀our฀and/or฀the฀
investment฀community’s฀expectations฀for฀our฀future฀results฀and฀other฀factors,฀many฀of฀which฀are฀beyond฀our฀control.
Cyclicality in the semiconductor market may affect our performance.
Semiconductor฀products฀are฀the฀principal฀source฀of฀our฀revenue.฀The฀semiconductor฀market฀historically฀has฀been฀cyclical฀and฀
subject฀to฀significant฀and฀often฀rapid฀increases฀and฀decreases฀in฀product฀demand.฀These฀changes฀could฀have฀adverse฀effects฀on฀our฀
results฀of฀operations,฀and฀on฀the฀market฀price฀of฀our฀securities.฀Our฀results฀of฀operations฀may฀be฀adversely฀affected฀in฀the฀future฀if฀
demand for our semiconductors decreases or if this market or key end-equipment markets grow at a significantly slower pace than
management expects.

Our฀profit฀margins฀may฀be฀adversely฀affected฀in฀the฀future฀by฀a฀number฀of฀factors,฀including฀decreases฀in฀our฀shipment฀volume,฀
reductions฀in,฀or฀obsolescence฀of฀our฀inventory฀and฀shifts฀in฀our฀product฀mix.฀In฀addition,฀the฀highly฀competitive฀market฀environment฀in฀
which we operate might adversely affect pricing for our products. Because we own much of our manufacturing capacity, a significant
portion of our operating costs is fixed. In general, these fixed costs do not decline with reductions in customer demand or factory
loadings, and can adversely affect profit margins as a result.
The markets we serve are characterized by rapid technological change that requires us to develop new
technologies and products.
Our฀results฀of฀operations฀depend฀in฀part฀upon฀our฀ability฀to฀successfully฀develop,฀manufacture฀and฀market฀innovative฀products฀in฀
a rapidly changing technological environment. We require significant capital to develop new technologies and products to meet
changing customer demands that, in turn, may result in shortened product life cycles and a decline in average selling prices of our
products.฀Moreover,฀expenditures฀for฀technology฀and฀product฀development฀are฀generally฀made฀before฀the฀commercial฀viability฀for฀such฀
developments฀can฀be฀assured,฀so฀we฀may฀not฀be฀able฀to฀successfully฀develop฀and฀market฀these฀new฀products.฀We฀do฀not฀expect฀that฀
all of our R&D฀projects฀will฀result฀in฀฀products฀that฀are฀ultimately฀released฀for฀sale,฀or฀that฀our฀projects฀will฀contribute฀significant฀revenue฀
until฀at฀least฀a฀few฀years฀after฀they฀are฀completed.฀Further,฀the฀products฀we฀do฀develop฀and฀market฀might฀not฀be฀well-received฀by฀
customers,฀and฀we฀might฀not฀realize฀a฀return฀on฀the฀capital฀expended฀to฀develop฀such฀products.