Texas Instruments Denmark A/S
Lyngby Hovedgade 4, 2800 Kongens Lyngby
CVR No. 20 53 16 73
Annual report
for the year ended 31 December 2013
Approved at the annual general meeting of shareholders on 26 June 2014
As chairman:
...................................................
Wolfram Tietscher
Contents
Management's review
Company details
Management's review
Statement by management on the annual report
Independent auditor's reports
Financial statements
Income statement
Balance sheet
Statement of changes in equity
Notes
Accounting policies
Subsequent events
Staff costs
Financial income
Tax for the year
Property, plant and equipment
Receivables
Share capital
Contingent liabilities and other financial obligations
Related parties
60548289 / SB
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Management's review
Company details
Address, Postal code, City
Lyngby Hovedgade 4, 2800 Kongens Lyngby
CVR No.
20 53 16 73
Home Page
www.ti.dk
Tel.
Telefax
+45 96 34 68 68
+45 96 34 68 69
Supervisory board
Wolfram Tietscher, chairman
Andreas Schwaiger
Klaus Weisel
Executive board
Andreas Schwaiger
Auditors
Ernst & Young, Godkendt Revisionspartnerselskab
Gyngemose Parkvej 50, 2860 Søborg, Denmark
Tel.
+45 70 10 80 50
Telefax +45 35 87 22 00
Bankers
Citibank
Management's review
The company's business review
Business activities and mission
The company’s activities include research and consultancy services related to the development of low-power radio
systems and digital amplifiers. Moreover, the company provides services in connection with the sale of graphic
pocket calculators and other group products.
Financial review
The company's income statement for the year ended 31 December 2013 shows a loss of DKK 12,703,919, and
the balance sheet at 31 December 2013 shows equity of DKK 559,189,887.
Expenses incurred in connection with research and development activities are charged to the income statement
on a current basis.
Post balance sheet events
The Group has reached a settlement with the tax authorities in US regarding transfer pricing for R&D services for
the years 2010 - 2013. The adjustment for the years amounts to DKK 6.5 million. The adjustment is treated as a
non-adjusted subsequent event. The effect of the adjustments depends whether the Danish authorities will agree
with the change in transfer pricing.
No further events have occurred after the financial year-end which could significantly affect the company’s
financial position.
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Statement by management on the annual report
Today, management has discussed and approved the annual report of Texas Instruments Denmark A/S for the
financial year 1 January - 31 December 2013.
The annual report is prepared in accordance with the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the company's financial position at 31
December 2013 and of the results of the company's operations for the financial year 1 January - 31 December
2013.
In our opinion, the management's review includes a fair review of the matters dealt with in the management's
review.
We recommend the adoption of the annual report at the annual general meeting.
Lyngby, 26 June 2014
Executive board:
Andreas Schwaiger
Supervisory board:
Wolfram Tietscher
chairman
Andreas Schwaiger
Klaus Weisel
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Independent auditor's reports
To the shareholders of Texas Instruments Denmark A/S
Report on financial statements
We have audited the financial statements of Texas Instruments Denmark A/S for the financial year 1 January - 31
December 2013, which comprise an income statement, balance sheet, statement of changes in equity and notes,
including a summary of significant accounting policies. The financial statements are prepared in accordance with
the Danish Financial Statements Act.
Management's responsibility for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the Danish Financial Statements Act. Further, management is responsible for such internal control as it
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit
in accordance with international standards on auditing and additional requirements according to Danish audit
regulations. This requires that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgement, including an assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of financial statements
that give a true and fair view.
The purpose is to design audit procedures that are appropriate in the circumstances, but not to express an opinion
on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of
accounting policies used, the reasonableness of accounting estimates made by management as well as the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Our audit has not resulted in any qualification.
Opinion
In our opinion, the financial statements give a true and fair view of the company's financial position at 31
December 2013 and of the results of its operations for the financial year 1 January - 31 December 2013 in
accordance with the Danish Financial Statements Act.
Statement on the management's review
In accordance with the Danish Financial Statements Act, we have read the management's review. We have not
performed any further procedures in addition to the audit of the financial statements.
On this basis, it is our opinion that the information provided in the management's review is consistent with the
financial statements.
Copenhagen, 26 June 2014
Ernst & Young
Godkendt Revisionspartnerselskab
Lissen Fagerlin Hammer
state authorised public accountant
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Income statement for the year ended 31 December
2013
DKK
Notes
2012
DKK
Revenue
Raw materials and consumables
Other external expenses
36.871.269
821.441
7.119.424
34.604.211
1.329.529
7.460.312
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Gross margin
Staff costs
Depreciation of property, plant and equipment
28.930.404
24.943.812
16.446
25.814.370
22.828.392
49.879
4
Operating profit/loss
Financial income
Financial expenses
3.970.146
3.568.226
24.746.766
2.936.099
5.031.173
5.909.878
Pre-tax profit/loss
Tax for the year
-17.208.394
-4.504.475
2.057.394
388.075
Profit/loss for the year
-12.703.919
1.669.319
Recommended appropriation of the profit/loss for the year
Retained earnings/accumulated loss
-12.703.919
1.669.319
-12.703.919
1.669.319
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Balance sheet at 31 December
2013
DKK
Notes
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2012
DKK
Assets
Fixed assets
Leasehold improvements
Plant and machinery
Other fixtures and fittings, tools and equipment
0
22.390
0
0
32.646
6.190
Property, plant and equipment
22.390
38.836
Other receivables
496.043
484.664
Investments
496.043
484.664
Total fixed assets
518.433
523.500
Current assets
Receivables from group entities
Income taxes receivable
Other receivables
567.452.539
0
3.500
583.398.911
1.117.468
43.689
Receivables
567.456.039
584.560.068
Total current assets
567.456.039
584.560.068
Total assets
567.974.472
585.083.568
Equity and liabilities
Equity
Share capital
Retained earnings/Accumulated loss
1.700.000
557.489.887
1.700.000
570.193.806
Total equity
559.189.887
571.893.806
Provisions
Provisions for deferred tax
1.812.000
8.173.000
Total provisions
1.812.000
8.173.000
Liabilities
Trade payables
Income taxes payable
Other payables
279.506
993.829
5.699.250
361.429
0
4.655.333
Short-term liabilities
6.972.585
5.016.762
Total liabilities
6.972.585
5.016.762
567.974.472
585.083.568
Total equity and liabilities
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Statement of changes in equity
(DKK)
Share capital
Retained
earnings/accumulated loss
Total
Equity at 1/1 2013
Profit/loss for the year, cf. appropriation of profit/loss
1.700.000
570.193.806
-12.703.919
571.893.806
-12.703.919
Equity at 31/12 2013
1.700.000
557.489.887
559.189.887
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Notes
1.
Accounting policies
The annual report of Texas Instruments Denmark A/S has been presented in accordance with the provisions of the
Danish Financial Statements Act as regards reporting class B enterprises.
The accounting policies applied by the company are consistent with those of last year.
Reporting currency
The financial statements are presented in Danish kroner.
Currency translation
Transactions denominated in foreign currencies are translated into Danish kroner at the exchange rate at the date
of the transaction.
Receivables, payables and other monetary items denominated in foreign currencies are translated into Danish
kroner at the exchange rate at the balance sheet date. Realised and unrealised exchange gains and losses are
recognised in the income statement as financial income/expenses.
Income statement
Revenue
Income from the commission from sale of goods is recognised in revenue at the time of delivery and when the risk
passes to the buyer, provided that the income can be made up reliably and is expected to be received.
Income from the rendering of services is recognised as revenue as the services are rendered, implying that
revenue corresponds to the market value of the services rendered in the year (production method).
Revenue is measured net of all types of discounts/rebates granted. Also, revenue is measured net of VAT and
other indirect taxes charged on behalf of third parties.
Other external expenses
Other external expenses include the year's expenses relating to the entity's core activities, including expenses
relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases,
etc.
Depreciation of property, plant and equipment
The item comprises depreciation of property, plant and equipment.
Property, plant and equipment are depreciated on a straight-line basis over the expected useful life of each
individual asset. The depreciation basis is the cost.
The expected useful lives of the assets are as follows:
Useful life (year)
Leasehold improvements
Plant and machinery
Other fixtures and fittings, tools and equipment
4-5 years
4-5 years
3-5 years
Financial income and expenses
Financial income and expenses are recognised in the income statement at the amounts that relate to the financial
reporting period. The items comprise interest income and expenses, e.g. from group entities and associates,
dividends declared from other securities and investments, financial expenses relating to finance leases, realised
and unrealised capital gains and losses relating to other securities and investments, exchange gains and losses
and amortisation of financial assets and liabilities.
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Notes
1.
Accounting policies - continued
Tax
Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax
adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the
income statement, whereas the portion that relates to transactions taken to equity is recognised in equity.
Balance sheet
Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the
asset is ready for use.
Impairment of fixed assets
Every year, intangible assets and property, plant and equipment as well as investments in subsidiaries and
associates are reviewed for impairment. Where there is indication of impairment, an impairment test is made for
each individual asset or group of assets, respectively, generating independent cash flows. The assets are written
down to the higher of the value in use and the net selling price of the asset or group of assets (recoverable
amount) if it is lower than the carrying amount. Where an impairment loss is recognised on a group of assets, a
loss must first be allocated to goodwill and then to the other assets on a pro rata basis.
Receivables
Receivables are measured at amortised cost, which usually corresponds to the nominal value. Provisions are made
for bad debts on the basis of objective evidence that a receivable or a group of receivables are impaired.
Provisions are made to the lower of the net realisable value and the carrying amount.
Equity
Proposed dividend
Dividends proposed for the financial year are presented as a separate item under ‘Equity'.
Income tax
Current tax payables and receivables are recognised in the balance sheet as the estimated tax charge in respect of
the taxable income for the year, adjusted for tax on prior years' taxable income and tax paid on account.
Provisions for deferred tax are calculated, based on the liability method, of all temporary differences between
carrying amounts and tax values, with the exception of temporary differences occurring at the time of acquisition
of assets and liabilities neither affecting the results of operations nor the taxable income, as well as temporary
differences on non-amortisable goodwill.
Deferred tax is measured according to the taxation rules and taxation rates in the respective countries applicable
at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are
recognised at the value at which they are expected to be utilised, either through elimination against tax on future
earnings or through a set-off against deferred tax liabilities within the same jurisdiction.
Liabilities
Financial liabilities are recognised on the raising of the loan at the proceeds received net of transaction costs
incurred. Interest-bearing debt is subsequently measured at amortised cost, using the effective interest rate
method. Borrowing costs, including capital losses, are recognised as financing costs in the income statement over
the term of the loan.
Other liabilities are measured at net realisable value.
2.
Subsequent events
The Group has reached a settlement with the tax authorities in US regarding transfer pricing for R&D services for
the years 2010 - 2013. The adjustment for the years amounts to DKK 6.5 million. The adjustment is treated as a
non-adjusted subsequent event. The effect of the adjustments depends whether the Danish authorities will agree
with the change in transfer pricing.
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Notes
2013
DKK
3. Staff costs
Analysis of staff costs:
Wages/salaries
Pensions
Other social security costs
Other staff costs
4. Financial income
Interest receivable, group entities
Other financial income
5. Tax for the year
Estimated tax charge for the year
Deferred tax adjustments in the year
Tax adjustments, prior years
6.
2012
DKK
23.296.859
1.297.998
174.188
174.767
21.140.421
1.278.853
220.437
188.681
24.943.812
22.828.392
2.769.369
798.857
4.361.120
670.053
3.568.226
5.031.173
1.856.525
-6.361.000
0
2.215.400
-1.821.000
-6.325
-4.504.475
388.075
Property, plant and equipment
(DKK)
Cost
Balance at 1/1 2013
Cost at 31/12 2013
Depreciation and impairment losses
Balance at 1/1 2013
Depreciation in the year
Depreciation and impairment losses at
31/12 2013
Carrying amount at 31/12 2013
Leasehold
improvements
Plant and
machinery
Other fixtures
and fittings,
tools and
equipment
Total
257.002
257.002
2.604.991
2.604.991
86.744
86.744
2.948.737
2.948.737
257.002
0
2.572.345
10.256
80.554
6.190
2.909.901
16.446
257.002
2.582.601
86.744
2.926.347
0
22.390
0
22.390
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Notes
7.
Receivables
Receivables from group entities include group cash pool.
8.
Share capital
The company's share capital has remained DKK 1,700,000 over the past 5 years.
9.
Contingent liabilities and other financial obligations
Other financial obligations
Rent commitment concerning a contract which is non-terminable until 1 January 2016 totals DKK 2,966,000
(2012: DKK 4,449,000).
Commitments under operating and finance leases concerning cars and IT equipment up to one year totals DKK
145,000 (2012: DKK 333,000).
10. Related parties
Information about consolidated financial statements:
Parent
Domicile
Texas Instruments Incorporated
USA
Requisitioning of the parent's
consolidated financial
statements
The consolidated financial
statements can be obtained from
the company on request, or on
the homepage for Texas
Instruments.
Information about shareholders holding 5% or more of the share capital or the voting rights
Name
Domicile
Texas Instruments France
821, Avenue Jack Kilby BP5, F-06271 Villeneuve Loubet Cedex,
Frankrig
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