Texas Instruments 2014 Annual Report Download - page 14
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8
FORM 10-K
Employees
AtDecember31,2014,wehad31,003employees.
Available information
OurInternetaddressiswww.ti.com.Informationonourwebsiteisnotapartofthisreport.Wemakeavailablefreeofchargethrough
our Investor RelationswebsiteourreportsonForms10-K,10-Qand8-K,andamendmentstothosereports,assoonasreasonably
practicableaftertheyarefiledwiththeSEC.AlsoavailablethroughtheTIInvestor Relationswebsitearereportsfiledbyourdirectors
and executive officers on Forms 3, 4 and 5, and amendments to those reports.
Availableonourwebsiteatwww.ti.com/corporategovernanceare:(i)ourCorporateGovernanceGuidelines;(ii)chartersfortheAudit,
Compensation,andGovernanceandStockholderRelationsCommitteesofourboardofdirectors;(iii)ourCodeofBusinessConduct;and
(iv) our Code of Ethics for TI Chief Executive Officer and Senior Finance Officers. Stockholders may request copies of these documents
freeofchargebywritingtoTexasInstrumentsIncorporated,P.O.Box660199,MS8657,Dallas,Texas,75266-0199,Attention:
Investor Relations.
ITEM 1A. Risk Factors.
You should read the following riskfactorsinconjunctionwiththefactorsdiscussedelsewhereinthisandotherofourfilingswiththe
SecuritiesandExchangeCommission(SEC)andinmaterialsincorporatedbyreferenceinthesefilings.Theserisk factors are intended
tohighlightcertainfactorsthatmayaffectourfinancialconditionandresultsofoperationsandarenotmeanttobeanexhaustive
discussionofrisksthatapplytocompanieslikeTIwithbroadinternationaloperations.Likeothercompanies,wearesusceptibleto
macroeconomicdownturnsintheUnitedStatesorabroadthatmayaffectthegeneraleconomicclimateandourperformanceand
theperformanceofourcustomers.Similarly,thepriceofoursecuritiesissubjecttovolatilityduetofluctuationsingeneralmarket
conditions,actualfinancialresultsthatdonotmeetourand/ortheinvestmentcommunity’sexpectations,changesinourand/orthe
investmentcommunity’sexpectationsforourfutureresultsandotherfactors,manyofwhicharebeyondourcontrol.
Cyclicality in the semiconductor market may affect our performance.
Semiconductorproductsaretheprincipalsourceofourrevenue.Thesemiconductormarkethistoricallyhasbeencyclicaland
subjecttosignificantandoftenrapidincreasesanddecreasesinproductdemand.Thesechangescouldhaveadverseeffectsonour
resultsofoperations,andonthemarketpriceofoursecurities.Ourresultsofoperationsmaybeadverselyaffectedinthefutureif
demand for our semiconductors decreases or if this market or key end-equipment markets grow at a significantly slower pace than
management expects.
Ourprofitmarginsmaybeadverselyaffectedinthefuturebyanumberoffactors,includingdecreasesinourshipmentvolume,
reductionsin,orobsolescenceofourinventoryandshiftsinourproductmix.Inaddition,thehighlycompetitivemarketenvironmentin
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.
Ourresultsofoperationsdependinpartuponourabilitytosuccessfullydevelop,manufactureandmarketinnovativeproductsin
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,expendituresfortechnologyandproductdevelopmentaregenerallymadebeforethecommercialviabilityforsuch
developmentscanbeassured,sowemaynotbeabletosuccessfullydevelopandmarketthesenewproducts.Wedonotexpectthat
all of our R&Dprojectswillresultinproductsthatareultimatelyreleasedforsale,orthatourprojectswillcontributesignificantrevenue
untilatleastafewyearsaftertheyarecompleted.Further,theproductswedodevelopandmarketmightnotbewell-receivedby
customers,andwemightnotrealizeareturnonthecapitalexpendedtodevelopsuchproducts.