5 unchanged sentences
The extent to which the COVID-19 pandemic will adversely affect our business, results of operations and financial condition is uncertain.
−Removed: The global spread of the novel coronavirus, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), and the coronavirus disease, COVID-19, has created significant uncertainty and economic disruption, both near-term and potentially long-term.
+Added: The global spread of the coronavirus (COVID-19) has created significant uncertainty and economic disruption, both near-term and potentially long-term.
We have modified, and might further modify, our business practices in response to the COVID-19 pandemic, related third-party responses, including from government authorities and our suppliers, customers and distributors, and the economic and social ramifications of the disease and societal responses across the markets in which TI operates.
3 unchanged sentences
and the effect of the pandemic on short- and long-term general economic conditions.
−Removed: We might experience short- or long-term constrained supply or volatility in customer demand, which could materially and adversely affect our business and financial results in future periods.
+Added: We have experienced, and continue to experience, short- or long-term constrained supply or volatility in customer demand, which could materially and adversely affect our business and financial results.
Our global operations subject us to risks associated with domestic or international political, social, economic or other conditions.
4 unchanged sentences
Trade tensions impact our ability to deliver products and product support into China, cause Chinese customers to seek alternate suppliers and could otherwise adversely affect our operations and financial results.
−Removed: We are exposed to political, social and economic conditions, security risks, terrorism or other hostile acts, health conditions and epidemics, labor conditions, and possible disruptions in transportation, communications and information technology networks of the various countries in which we operate.
+Added: We are exposed to political, social and economic conditions, security risks, terrorism or other hostile acts, health conditions and epidemics, labor conditions, climate change risks and possible disruptions in transportation, communications and information technology networks of the various countries in which we operate.
In addition, our global operations expose us to periods when the U.S.
21 unchanged sentences
Our ability to match inventory and production with the product mix needed to fill orders may affect our ability to meet a quarter’s revenue forecast.
−Removed: We manufacture products based on forecasts of customers’ demands.
−Removed: These forecasts are based on multiple assumptions, and if inaccurate, could cause us to hold inadequate, excess or obsolete inventory that would reduce our profit margins and adversely affect our results of operations and financial condition.
−Removed: Our operating results and our reputation could be adversely affected by breaches, disruptions or other incidents relating to our information technology systems.
+Added: Due to strong demand, our manufacturing lead times for some products are longer than normal, and lead times might continue to extend.
+Added: We manufacture products with the intent to provide high levels of customer service.
+Added: Our manufacturing forecasts are based on multiple assumptions, and if inaccurate, could cause us to hold inadequate, excess or obsolete inventory that would reduce our profit margins and adversely affect our results of operations and financial condition.
+Added: Our operating results and our reputation could be adversely affected by cybersecurity events, breaches, disruptions or other incidents relating to our information technology systems.
Breaches, disruptions or other incidents relating to our information technology systems or the systems of our customers, vendors and other third parties could be caused by factors such as computer viruses, system failures, restricted network access, unauthorized access, terrorism, employee malfeasance, or human error.
7 unchanged sentences
From time to time, we undertake strategic, business and organizational changes, including acquisitions, divestitures and restructuring actions, to support or carry out our objectives.
+Added: For example, the purchase of our 300-millimeter semiconductor factory in Lehi, Utah in 2021.
If we do not successfully implement these changes, our business plans and operating results could be adversely affected.
2 unchanged sentences
We have manufacturing, data and design facilities and other operations in locations subject to natural occurrences such as severe weather, geological events or epidemics that could disrupt operations.
+Added: Climate change might exacerbate these occurrences or cause natural disasters to occur with greater frequency.
A natural disaster that results in a prolonged disruption, particularly where we have principal manufacturing and design operations, as listed in the Properties section in Item 2, may adversely affect our results and financial condition.
7 unchanged sentences
We rely on third parties to supply us with goods and services in a cost-effective and timely manner.
−Removed: Our access to needed goods and services may be adversely affected by potential disputes with suppliers or disruptions in our suppliers’ operations as a result of, for example:
+Added: Our access to needed goods and services may be adversely affected by potential disputes with suppliers or disruptions in our own or suppliers’ operations as a result of, for example:
quality excursions;
2 unchanged sentences
natural events or epidemics in the locations in which our suppliers operate;
−Removed: or limited or delayed access to key raw materials, natural resources and utilities.
+Added: or limited or delayed access to and high costs of key materials, natural resources, services and utilities.
Additionally, a breach or other incident relating to our suppliers’ information technology systems could result in a release of confidential or proprietary information.
If our suppliers are unable to access credit markets and other sources of needed liquidity, we may be unable to obtain needed supplies, collect accounts receivable or access needed technology.
−Removed: In particular, our manufacturing processes and critical manufacturing equipment require that certain key raw materials, natural resources and utilities be available.
−Removed: Limited or delayed access to and high costs of these items could adversely affect our results of operations.
+Added: In particular, our manufacturing processes and critical manufacturing equipment, and those of our suppliers, require that certain key materials, natural resources, services and utilities be available.
+Added: Suppliers of these items have and might continue to extend lead times, limit supply or increase prices due to factors beyond our control.
+Added: Limited or delayed access to and high costs of key materials, natural resources, services and utilities could adversely affect our results of operations.
Our products contain materials that are subject to conflict minerals reporting requirements.
2 unchanged sentences
Our inability to timely implement new manufacturing technologies or install manufacturing equipment could adversely affect our results of operations.
+Added: We have made and will continue to make significant investments in manufacturing capacity, and we might not realize our expected return on those investments.
We subcontract a portion of our wafer fabrication and assembly and testing of our products, and we depend on third parties to provide advanced logic manufacturing process technology development.
2 unchanged sentences
Our results of operations and our reputation could be affected by warranty claims, product liability claims, product recalls or legal proceedings.
−Removed: Claims based on warranty, product liability, epidemic or delivery failures, or other grounds relating to our products, manufacturing, services, designs, communications or cybersecurity could lead to significant expenses as we defend the claims or pay damage awards or settlements.
+Added: Claims based on warranty, product liability, epidemic or delivery failures, or other grounds relating to our products, software, manufacturing, services, designs, communications or cybersecurity could lead to significant expenses as we defend the claims or pay damage awards or settlements.
In the event of a claim, we would also incur costs if we decide to compensate the affected customer or end consumer.
3 unchanged sentences
Any of these events could adversely affect our results of operations, financial condition and reputation.
−Removed: Our results of operations and financial condition could be adversely affected if a customer or a distributor suffers a loss with respect to our inventory.
−Removed: We have consignment inventory programs in place for some of our largest customers and distributors.
−Removed: If a customer or distributor were to experience a loss with respect to TI-consigned inventory, our results of operations and financial condition would be adversely affected if we do not recover the full value of the lost inventory from the customer, distributor or insurer, or if our recovery is delayed.
Our results of operations could be adversely affected by distributors’ promotion of competing product lines or our distributors’ financial performance.
−Removed: In 2020, about half of our revenue was generated from sales of our products through distributors.
+Added: In 2021, about one-third of our revenue was generated from sales of our products through distributors.
Our distributors carry competing product lines, and our sales could be affected if semiconductor distributors promote competing products over our products.
14 unchanged sentences
There can be no assurance that we will be able to successfully retain and recruit the key engineering, management and technical personnel that we require to execute our business strategy.
−Removed: Our ability to recruit internationally or deploy employees to various locations may be limited by immigration laws.
+Added: Our ability to recruit internationally or deploy employees to various locations may be limited by immigration laws and policies, including changes to, or the administration or interpretation of, those laws and policies.
Legal and regulatory risks
Our operations could be affected by the complex laws, rules and regulations to which our business is subject.
−Removed: We are subject to complex laws, rules and regulations affecting our domestic and international operations relating to, for example, the environment and climate change, safety and health;
+Added: We are subject to complex laws, rules and regulations affecting our domestic and international operations relating to, for example, the environment and climate change;
bribery and corruption;
8 unchanged sentences
Furthermore, should these laws, rules and regulations be amended or expanded, or new ones enacted, we could incur materially greater compliance costs or restrictions on our ability to manufacture our products and operate our business.
+Added: Increased focus from government authorities, investors, customers and other key stakeholders on environmental, social and governance (ESG) matters has led to new and more stringent reporting standards and disclosure requirements.
+Added: As the nature, scope and complexity of ESG reporting, diligence and disclosure requirements expand, we might have to undertake costly efforts to control, assess and report on ESG metrics.
Some of these complex laws, rules and regulations – for example, those related to environmental, safety and health requirements – may particularly affect us in the jurisdictions in which we manufacture products, especially if such laws and regulations:
require the use of abatement equipment beyond what we currently employ;
−Removed: require the addition or elimination of a raw material or process to or from our current manufacturing processes;
+Added: require the addition or elimination of a material or process to or from our current manufacturing processes;
or impose costs, fees or reporting requirements on the direct or indirect use of energy, natural resources, or materials or gases used or emitted into the environment in connection with the manufacture of our products.
−Removed: A substitute for a prohibited raw material or process might not be available, or might not be available at reasonable cost.
+Added: A substitute for a prohibited material or process might not be available, or might not be available at reasonable cost.
Our results of operations could be affected by changes in tax-related matters.
27 unchanged sentences
The laws of countries where we operate may not protect our intellectual property rights to the same extent as U.S.
−Removed: Increases in health care and pension benefit costs could affect our results of operations and financial condition.
−Removed: Federal and state health care reform programs could increase our costs with regard to medical coverage of our employees, which could reduce profitability and affect our results of operations and financial condition.
−Removed: In addition, obligations related to our pension and other postretirement plans reflect assumptions that affect the planned funding and costs of these plans, including the actual return on plan assets, discount rates, plan participant population demographics and changes in pension regulations.
−Removed: Changes in these assumptions may affect plan funding, cash flow and results of operations, and our costs and funding obligations could increase significantly if our plans’ actual experience differs from these assumptions.
Risks related to our financing activities and other risks
4 unchanged sentences
Our results of operations and liquidity could be affected by changes in the financial markets.
−Removed: We maintain bank accounts, one or more multiyear revolving credit agreements, and a portfolio of investments to support the financing needs of the company.
+Added: We maintain bank accounts, a portfolio of investments, access to one or more multiyear revolving credit agreements and the ability to issue debt to support the financing needs of the company.
Our ability to fund our operations, invest in our business, make strategic acquisitions, service our debt obligations and meet our cash return objectives depends upon continuous access to our bank and investment accounts, and may depend on access to our bank credit lines that support commercial paper borrowings and provide additional liquidity through short-term bank loans.
If we are unable to access these accounts and credit lines (for example, due to instability in the financial markets), our results of operations and financial condition could be adversely affected and our ability to access the capital markets or redeem our investments could be restricted.
−Removed: Material impairments of our goodwill or intangible assets could adversely affect our results of operations.
−Removed: We have a significant amount of goodwill and intangible assets on our consolidated balance sheet.
−Removed: Charges associated with impairments of goodwill or intangible assets could adversely affect our financial condition and results of operations.
+Added: Material impairments of our goodwill could adversely affect our results of operations.
+Added: We have a significant amount of goodwill on our consolidated balance sheet.
+Added: Charges associated with impairments of goodwill could adversely affect our financial condition and results of operations.
Unresolved staff comments
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.