SEC Comment Letter for TEXAS INSTRUMENTS INC (TXN) (CIK 0000097476) (TXN) — Apr 5, 2016
TEXAS INSTRUMENTS INC (TXN) (CIK 0000097476)
Date: April 5, 2016 · CIK: 0000097476 · Accession: 0000000000-16-071030
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Mailstop 4628 April 5 , 2016 Via E -mail Richard K. Templeton Chairman of the Board, President and Chief Executive Officer Texas Instruments Incorporated 12500 TI Boulevard Dallas, Texas 75243 Re: Texas Instruments Incorporated Form 10 -K for the Fiscal Year Ended December 31, 2015 Filed February 24, 2016 File No. 1 -03761 Dear Mr. Templeton : We have limited our review of your filing to your contacts with countries that have been identified as state sponsors of terrorism, and we have the following comments. Our review with respect to this issue does not preclude further review by the Assistant Director group with respect to other issues. In our comments, we ask you to p rovide us with information so we may better understand your disclosure. Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response. After reviewing your response to these comments, we may have additional comments. General 1. We are aware of publicly available information indicating that you may have, or may have had, a significant relationship with ZTE Corporation and that you have sold items to ZTE Corporation, and that ZTE Corporation has re -exported items of U.S. origin to countries including Sudan and Syria. Sudan and Syria are designated by the S tate Department as state sponsors of terrorism, and are subject to U.S. economic sanctions and export controls. Your Form 10 -K does not include disclosure about contacts with Sudan or Syria. Please describe to us the nature and extent of any past, curren t and anticipated contacts with Sudan and Syria, whether through direct or indirect arrangements, including any involving ZTE Corporation. You should describe any products, components, services or technology you have provided into Sudan and Syria, directl y or Richard K. Templeton Texas Instruments Incorporated April 5 , 2016 Page 2 indirectly, and any agreements, commercial arrangements or other contacts you have had with the governments of those countries or entities they control. 2. Please discuss the materiality of any contacts with Sudan and Syria you describe in response to t he comment above, and whether the contacts constitute a material investment risk for your security holders. You should address materiality in quantitative terms, including the approximate dollar amounts of any revenues, assets and liabilities associated w ith Sudan and Syria for the last three fiscal years and the subsequent interim period. Also, address materiality in terms of qualitative factors that a reasonable investor would deem important in making an investment decision, including the potential impa ct of corporate activities upon a company’s reputation and share value. Various state and municipal governments, universities and other investors have proposed or adopted divestment or similar initiatives regarding investment in companies that do business with U.S.-designated state sponsors of terrorism. You should address the potential impact of the investor sentiment evidenced by such actions directed toward companies that have operations associated with Sudan and Syria. 3. Information recently publishe d by the Commerce Department and reported by various news organizations indicates that ZTE Corporation has re -exported controlled items to sanctioned countries contrary to U.S. law, and that it planned and organized a scheme to establish, control and use a series of shell companies to re -export controlled items to Iran in violation of U.S. export control laws. Please address for us the possibility that this information will have adverse reputational and other effects upon you because of your relationship w ith ZTE Corporation. We urge all persons who are responsible for the accuracy and adequacy of the disclosure in the filing to be certain that the filing includes the information the Securities Exchange Act of 1934 and all applicable Exchange Act rules req uire. Since the company and its management are in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made. In responding to our comments, please provide a written statement from the company acknowledging that: the company is responsible for the adequacy and accuracy of the disclosure in the filing; staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking an y action with respect to the filing; and the company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. Richard K. Templeton Texas Instruments Incorporated April 5 , 2016 Page 3 You may contact Pradip Bhaumik, Specia l Counsel, at (202) 551 -3333 or me at (202) 551-3470 if you have any questions about the comments or our review. Sincerely, /s/ Cecilia Blye Cecilia Blye, Chief Office of Global Security Risk cc: Amanda Ravitz Assistant Director Division of Corporation Finance