Texas Instruments 2014 Annual Report Download - page 13

 7
FORM 10-K
Raw materials
We฀purchase฀materials,฀parts฀and฀supplies฀from฀a฀number฀of฀suppliers.฀In฀some฀cases฀we฀purchase฀such฀items฀from฀sole฀source฀
suppliers.฀The฀materials,฀parts฀and฀supplies฀essential฀to฀our฀business฀are฀generally฀available฀at฀present,฀and฀we฀believe฀that฀such฀
materials,฀parts฀and฀supplies฀will฀be฀available฀in฀the฀foreseeable฀future.
Intellectual property
We own many patents, and have many patent applications pending, in the United States and other countries in fields relating to
our฀business.฀We฀have฀developed฀a฀strong,฀broad-based฀patent฀portfolio฀and฀continually฀add฀patents฀to฀that฀portfolio.฀We฀also฀have฀
agreements฀with฀numerous฀companies฀involving฀license฀rights฀and฀anticipate฀that฀other฀license฀agreements฀may฀be฀negotiated฀in฀the฀
future.฀In฀general,฀our฀license฀agreements฀have฀multi-year฀terms฀and฀may฀be฀renewed฀after฀renegotiation.
Our฀semiconductor฀patent฀portfolio฀is฀an฀ongoing฀contributor฀to฀our฀revenue.฀We฀do฀not฀consider฀our฀business฀materially฀dependent฀
upon any one patent or patent license, although taken as a whole, our rights and the products made and sold under patents and patent
licenses฀are฀important฀to฀our฀business.฀
We often participate in industry initiatives to set technical standards. Our competitors may participate in the same initiatives.
Participation฀in฀these฀initiatives฀may฀require฀us฀to฀license฀certain฀of฀our฀patents฀to฀other฀companies฀on฀reasonable฀and฀non-
discriminatory terms.
We฀own฀trademarks฀that฀are฀used฀in฀the฀conduct฀of฀our฀business.฀These฀trademarks฀are฀valuable฀assets,฀the฀most฀important฀of฀which฀
are฀“Texas฀Instruments”฀and฀our฀corporate฀monogram.฀Other฀valuable฀trademarks฀include฀DLP®.
Research and development
Our฀R&D฀expense฀was฀$1.36฀billion฀in฀2014,฀compared฀with฀$1.52฀billion฀in฀2013฀and฀$1.88฀billion฀in฀2012.฀Our฀primary฀areas฀of฀R&D฀
investment฀are฀Analog฀and฀Embedded฀Processing฀products.฀Our฀R&D฀has฀been฀declining฀primarily฀as฀a฀result฀of฀our฀decision฀to฀wind฀
down investments in legacy wireless products. This wind-down is now complete.
We฀conduct฀most฀of฀our฀R&D฀internally.฀However,฀we฀also฀closely฀engage฀with฀a฀wide฀range฀of฀third฀parties,฀including฀software฀suppliers,฀
universities฀and฀select฀industry฀consortia,฀and฀we฀collaborate฀with฀our฀foundry฀suppliers฀on฀semiconductor฀manufacturing฀technology.
Executive officers of the Registrant
The฀following฀is฀an฀alphabetical฀list฀of฀the฀names฀and฀ages฀of฀the฀executive฀officers฀and฀those฀chosen฀to฀become฀executive฀officers฀of฀
the฀company฀and฀the฀positions฀or฀offices฀with฀the฀company฀held฀by฀each฀person฀named:฀
Name Age Position
Stephen A. Anderson 53 Senior฀Vice฀President
Brian T. Crutcher 42 Executive฀Vice฀President
R. Gregory Delagi 52 Senior฀Vice฀President
Joseph฀F.฀Hubach฀* 57 Senior฀Vice฀President,฀Secretary฀and฀General฀Counsel
Kevin฀P.฀March 57 Senior฀Vice฀President฀and฀Chief฀Financial฀Officer
Kevin฀J.฀Ritchie 58 Senior฀Vice฀President
Richard฀K.฀Templeton 56 Director; Chairman of the Board; President and Chief Executive Officer
Cynthia฀Hoff฀Trochu฀* 51 Elected฀to฀become฀Senior฀Vice฀President,฀Secretary฀and฀General฀Counsel
Teresa L. West 54 Senior฀Vice฀President
Darla H. Whitaker 49 Senior฀Vice฀President
Bing Xie 47 Senior฀Vice฀President
*฀ Effective฀August฀3,฀2015,฀Mr.฀Hubach฀will฀retire฀from฀the฀company,฀and฀Ms.฀Trochu฀will฀succeed฀him.฀
The฀term฀of฀office฀of฀these฀officers฀is฀from฀the฀date฀of฀their฀election฀until฀their฀successor฀shall฀have฀been฀elected฀and฀qualified.฀All฀have฀
been฀employees฀of฀the฀company฀for฀more฀than฀five฀years.฀Mses.฀West฀and฀Whitaker฀and฀Messrs.฀Anderson,฀Delagi,฀Hubach,฀March,฀
Ritchie฀and฀Templeton฀have฀served฀as฀executive฀officers฀of฀the฀company฀for฀more฀than฀five฀years.฀Mr.฀Crutcher฀became฀an฀executive฀
officer฀of฀the฀company฀in฀2010.฀Mr.฀Xie฀became฀an฀executive฀officer฀of฀the฀company฀in฀2015.฀