United states securities and exchange commission

Legal and Regulatory Compliance Risks
The Company’s business, results of operations and financial condition could be adversely impacted by unfavorable 
results of legal proceedings or government investigations.
The Company is subject to various claims, legal proceedings and government investigations that have arisen in the ordinary 
course of business and have not yet been fully resolved, and new matters may arise in the future. In addition, agreements 
entered into by the Company sometimes include indemnification provisions which can subject the Company to costs and 
damages in the event of a claim against an indemnified third party. The number of claims, legal proceedings and government 
investigations involving the Company, and the alleged magnitude of such claims, proceedings and government investigations, 
has generally increased over time and may continue to increase.
The Company has faced and continues to face a significant number of patent claims relating to its cellular-enabled products, and 
new claims may arise in the future. For example, technology and other patent-holding companies frequently assert their patents 
and seek royalties and often enter into litigation based on allegations of patent infringement or other violations of intellectual 
property rights. The Company is vigorously defending infringement actions in courts in several U.S. jurisdictions, as well as 
internationally in various countries. The plaintiffs in these actions frequently seek injunctions and substantial damages.
Regardless of the merit of particular claims, defending against litigation or responding to government investigations can be 
expensive, time-consuming and disruptive to the Company’s operations. In recognition of these considerations, the Company 
may enter into agreements or other arrangements to settle litigation and resolve such challenges. There can be no assurance 
such agreements can be obtained on acceptable terms or that litigation will not occur. These agreements can also significantly 
increase the Company’s cost of sales and operating expenses and require the Company to change its business practices and 
limit the Company’s ability to offer certain products and services.
Except as described in Part I, Item 3 of this Form 10-K under the heading “Legal Proceedings” and in Part II, Item 8 of this Form 
10-K in the Notes to Consolidated Financial Statements in Note 10, “Commitments and Contingencies” under the heading 
“Contingencies,” in the opinion of management, there was not at least a reasonable possibility the Company may have incurred a 
material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other 
claims.
The outcome of litigation or government investigations is inherently uncertain. If one or more legal matters were resolved against 
the Company or an indemnified third party in a reporting period for amounts above management’s expectations, the Company’s 
results of operations and financial condition for that reporting period could be materially adversely affected. Further, such an 
outcome can result in significant compensatory, punitive or trebled monetary damages, disgorgement of revenue or profits, 
remedial corporate measures or injunctive relief against the Company, and can require the Company to change its business 
practices and limit the Company’s ability to offer certain products and services, all of which could materially adversely affect the 
Company’s business, reputation, results of operations and financial condition.
While the Company maintains insurance coverage for certain types of claims, such insurance coverage may be insufficient to 
cover all losses or all types of claims that may arise.