Overview Our commitment to building a better future is ingrained in everything we do – from the responsible manufacturing of our semiconductors, to caring for our employees, to giving back to communities. In 2011, TI weathered a number of challenges, including natural disasters and economic uncertainties, but ended the year with greater manufacturing capacity, a stronger product portfolio, and a continued commitment to the communities where we operate. Natural disasters throughout the year, including an earthquake and tsunami in Japan and floods in Taiwan, exercised TI's business continuity readiness and inspired employees to reach out to those in need. We not only kept operations on track but supported the communities affected through contributions to disaster relief support. Throughout the year, TI ramped up its manufacturing facility in Richardson, Texas, and more fully integrated two manufacturing facilities acquired in late 2010; one in Chengdu, China, and another in Aizu, Japan. As a result, our resource use and related emissions increased – even while production decreased – because manufacturing operations use roughly the same amount of water and energy regardless of production level. This negatively affected our normalized performance results. In the third quarter of 2011, we acquired National Semiconductor. With the acquisition, TI gained a portfolio of thousands of analog products, strong customer design tools and additional manufacturing capacity; this action was consistent with our strategy to grow our Analog business. National Semiconductor's 2011 performance results are not included in this report. Despite the challenges, we continued to be conscientious about growing responsibly. We invested in strategic energy- and water-conservation projects and reduced utility costs by $8.6 million. We also welcomed more than 5,000 National employees to TI.