Texas Instruments 2015 Annual Report Download - page 17
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FORM 10-K
Wehavefacilitiesin35countriesandasaresultaresubjecttotaxationandauditbyanumberoftaxingauthorities.Taxratesvary
amongthejurisdictionsinwhichweoperate.Ourresultsofoperationscouldbeaffectedbymarketopportunitiesordecisionswemake
thatcauseustoincreaseordecreaseoperationsinoneormorecountries,orbychangesinapplicabletaxratesorauditsbythetaxing
authorities in countries in which we operate.
Inaddition,wearesubjecttolawsandregulationsinvariousjurisdictionsthatdeterminehowmuchprofithasbeenearnedandwhenit
issubjecttotaxationinthatjurisdiction.Changesintheselawsandregulationscouldaffectthelocationswherewearedeemedtoearn
income,whichcouldinturnaffectourresultsofoperations.Wehavedeferredtaxassetsonourbalancesheet.Changesinapplicable
taxlawsandregulationsorinourbusinessperformancecouldaffectourabilitytorealizethosedeferredtaxassets,whichcouldalso
affectourresultsofoperations.Eachquarterweforecastourtaxliabilitybasedonourforecastofourperformancefortheyear.Ifthat
performanceforecastchanges,ourforecastedtaxliabilitywillchange.
WehavenotmadeaprovisionforU.S.incometaxontheportionofourundistributedearningsofournon-U.S.subsidiariesthatis
considered permanently reinvested outside the United States. If in the future we repatriate any of these foreign earnings, we might incur
incremental U.S. income tax, which could affect our results of operations.
Wearesubjecttocomplexlaws,rulesandregulationsaffectingourdomesticandinternationaloperationsrelatingto,forexample,
environmental,safetyandhealth;exportsandimports;briberyandcorruption;tax;dataprivacy;laborandemployment;competition;
andintellectualpropertyownershipandinfringement.Compliancewiththeselaws,rulesandregulationsmaybeonerousand
expensive, and if we fail to complyorifwebecomesubjecttoenforcement activity, ourabilitytomanufacture our products and operate
ourbusinesscouldberestrictedandwecouldbesubjecttofines,penaltiesorotherlegalliability.Furthermore,shouldtheselaws,rules
andregulationsbeamendedorexpanded,ornewonesenacted,wecouldincurmateriallygreatercompliancecostsorrestrictionson
ourabilitytomanufactureourproductsandoperateourbusiness.
Some of these complex laws, rules and regulations – for example, those related to environmental, safety and health requirements – may
particularlyaffectusinthejurisdictionsinwhichwemanufactureproducts,especiallyifsuchlawsandregulations:requiretheuseof
abatementequipmentbeyondwhatwecurrentlyemploy;requiretheadditionoreliminationofarawmaterialorprocesstoorfromour
current manufacturing processes; or impose costs, fees or reporting requirements on the direct or indirect use of energy, or of materials
orgasesusedoremittedintotheenvironment,inconnectionwiththemanufactureofourproducts.Therecanbenoassurancethatin
allinstancesasubstituteforaprohibitedrawmaterialorprocesswouldbeavailable,orbeavailableatreasonablecost.
Wemaintainbankaccounts,oneormoremulti-yearrevolvingcreditagreements,andaportfolioofinvestmentstosupportthefinancing
needsofthecompany.Ourabilitytofundourdailyoperations,investinourbusiness,makestrategicacquisitions,serviceourdebt
obligationsandmeetourcashreturnobjectivesrequirescontinuousaccesstoourbankandinvestmentaccounts,aswellasaccessto
ourbankcreditlinesthatsupportcommercialpaperborrowingsandprovideadditionalliquiditythroughshort-termbankloans.Ifweare
unabletoaccesstheseaccountsandcreditlines(forexample,duetoinstabilityinthefinancialmarkets),ourresultsofoperationsand
financialconditioncouldbeadverselyaffected.Similarly,suchcircumstancescouldalsorestrictourabilitytoaccessthecapitalmarkets
orredeemourinvestments.Ifourcustomersorsuppliersareunabletoaccesscreditmarketsandothersourcesofneededliquidity,we
mayreceivefewercustomerordersorbeunabletoobtainneededsupplies,collectaccountsreceivableoraccessneededtechnology.
Material impairments of our goodwill or intangible assets could adversely affect our results of operations.
Chargesassociatedwithimpairmentsofourgoodwillorintangibleassetscouldadverselyaffectourfinancialconditionandresults
of operations. Goodwill is reviewed for impairment annually or more frequently if certain impairment indicators arise or upon the
dispositionofasignificantportionofareportingunit.Thereviewcomparesthefairvalueforeachreportingunittoitsassociatedbook
valueincludinggoodwill.Adecreaseinthefairvalueassociatedwithareportingunitresultingfrom,amongotherthings,unfavorable
changesintheestimatedfuturediscountedcashflowofthereportingunit,mayrequireustorecognizeimpairmentsofgoodwill.Mostof
ourintangibleassetsareamortizedovertheirestimatedusefullives,buttheyarereviewedforimpairmentwhenevereventsorchanges
incircumstancesindicatethatthecarryingamountoftheassetmaynotberecoverable.Ifthesumofthefutureundiscountedcash
flowsexpectedtoresultfromtheuseoftheintangibleassetanditseventualdispositionislessthanthecarryingamountoftheasset,
wewouldrecognizeanimpairmentlosstotheextentthecarryingamountoftheassetexceedsitsfairvalue.