FORM SD

 

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

 

FORM SD

 

 

SPECIALIZED DISCLOSURE REPORT

 

 

Citrix Systems, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   0-27084   75-2275152

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

851 West Cypress Creek Road

Fort Lauderdale, Florida

  33309
(Address of principal executive offices)   (Zip Code)

 

 

Antonio G. Gomes

Senior Vice President and General Counsel

Citrix Systems, Inc.

15 Network Drive

Burlington, Massachusetts 01803

(781) 203-4500

With a Copy To:

Michael R. Littenberg

Ropes and Gray LLP

1211 Avenue of the Americas

New York, New York 10036

(212) 596-9000

(Name and telephone number, including area code, of the person to contact in connection with this report.)

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:

 

Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2017.

 

 

 

 


Section 1 – Conflict Minerals Disclosure

Item 1.01 Conflict Minerals Disclosure and Report

As provided for in the Conflict Minerals Rule, a Conflict Minerals Report is provided as an Exhibit to this Form SD and is available on our website at http://www.citrix.com/content/dam/citrix/en_us/documents/about/conflict-minerals-report.pdf. The information contained on our website is not incorporated by reference into this Form SD or our Conflict Minerals Report and should not be considered part of this Form SD or the Conflict Minerals Report.

Information concerning tin, tantalum, tungsten and gold from recycled or scrap sources that may be contained in our in-scope products is included in the Conflict Minerals Report and is incorporated in this Form SD by reference.

Item 1.02 Exhibit

The Conflict Minerals Report described in Item 1.01 is filed as Exhibit 1.01 to this Form SD.

Section 2 – Exhibits

Item 2.01 Exhibits

Exhibit 1.01 – Conflict Minerals Report for the calendar year ended December 31, 2017.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.

 

Citrix Systems, Inc.

   

By:

 

/s/ Antonio G. Gomes

      Dated: May 31, 2018
 

Name:

 

Antonio G. Gomes

     
 

Title:

 

Senior Vice President, General Counsel and Secretary

     


EXHIBIT INDEX

 

Exhibit

  

Description

1.01    Conflict Minerals Report for the calendar year ended December 31, 2017.

 

EX-1.01

Exhibit 1.01

Conflict Minerals Report

Citrix Systems, Inc. has included this Conflict Minerals Report as an exhibit to its Form SD for 2017 as provided for in Rule 13p-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Form SD (collectively, the “Conflict Minerals Rule”).

Unless the context indicates otherwise, the terms “we,” “its,” “us,” and “our” refer to Citrix Systems, Inc. and its consolidated subsidiaries. As used herein and consistent with the Conflict Minerals Rule, “Conflict Minerals” or “3TG” are columbite-tantalite (coltan), cassiterite, gold, wolframite and the derivatives tantalum, tin and tungsten, without regard to the location of origin of the minerals or derivative metals.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act. In particular, statements contained in this document that are not historical facts, including, but not limited to, statements concerning the additional steps that we intend to take to mitigate the risk that our necessary 3TG benefit armed groups, constitute forward-looking statements and are made under the safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act.

Forward-looking statements are subject to risks and uncertainties that could cause actual actions or performance to differ materially from those expressed in the forward-looking statements. These risks and uncertainties may include, but are not limited to, the continued implementation of satisfactory traceability and other compliance measures by our direct and indirect suppliers on a timely basis or at all, whether smelters and refiners and other market participants responsibly source 3TG and political and regulatory developments, whether in the Democratic Republic of the Congo (the “DRC”) region, the United States or elsewhere. We caution readers not to place undue reliance on any forward-looking statements, which only speak as of the date made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Applicability of the Conflict Minerals Rule to Our Company

Our mission is to power a world where people, organizations and things are securely connected and accessible to make the extraordinary possible. We help customers reimagine the future of work by providing a comprehensive secure digital workspace that unifies the apps, data and services people need to be productive, and simplifies IT’s ability to adopt and manage complex cloud environments. Most of our products consist solely of software and do not contain a physical component and therefore do not contain 3TG. Accordingly, substantially all of our products are out of scope for purposes of the Conflict Minerals Rule.

Although substantially all of our products are out of scope for purposes of the Conflict Minerals Rule, we identified a limited number of hardware components with necessary 3TG content in the products that we contracted to manufacture in 2017. These in-scope products consisted of physical networking products and a mouse sold in connection with our Windows app delivery products for tablet use cases (“In-Scope Products”). We did not directly source the 3TG in these In-Scope Products, and we make no purchases from mines in the DRC or any of its adjoining countries or from any smelters or refiners. The 3TG were sourced, either directly or indirectly, by the manufacturers of the In-Scope Products and we believe that we are in most cases many levels removed from such mines, smelters or refiners. While, practically speaking, we have limited influence over the sourcing of the 3TG in our In-Scope Products, through the efforts described in this Conflict Minerals Report, we seek to ensure that our sourcing practices are consistent with our Conflict Minerals Policy (which is discussed below under “Our Conflict Minerals Policy”), promote transparency and traceability and encourage conflict free sourcing in our supply chain.

For 2017, we were unable to determine the origin of at least a portion of the 3TG that were necessary to the functionality or production of each of our In-Scope Products. None of the necessary 3TG contained in our In-Scope Products were determined by us to directly or indirectly finance or benefit armed groups in the DRC or an adjoining country. However, we did not conclude that any of our products were “DRC conflict free.” The terms “adjoining country,” “armed group,” and “DRC conflict free” have the meanings contained in the Conflict Minerals Rule. Smelter, refiner and country of origin information for 2017 is provided under “Product Information” below.

 

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Our Conflict Minerals Policy

We have adopted a company policy relating to 3TG (the “Conflict Minerals Policy”). The Conflict Minerals Policy includes, but is not limited to, our expectations that our suppliers:

 

  1. adopt a policy of responsible sourcing of minerals and pass this requirement through their supply chain;

 

  2. implement due diligence processes to support that policy;

 

  3. source minerals from socially responsible suppliers; and

 

  4. provide us all information we may request regarding the sourcing of minerals in products supplied to us.

The Conflict Minerals Policy indicates that, if we become aware of a supplier who is not in compliance with the foregoing expectations, then we will take appropriate action to remedy the situation, including reassessment of supplier relationships.

Our Conflict Minerals Policy also contains an email address for employees, suppliers and other interested parties to report violations of the policy electronically. The email address is compliance.prime@citrix.com.

We do not support embargos of 3TG from the DRC region, but rather encourage our suppliers to continue to source responsibly from that region.

Reasonable Country of Origin Inquiry Information

As required by the Conflict Minerals Rule, for 2017, we conducted a “reasonable country of origin inquiry.” For our reasonable country of origin inquiry, to the extent applicable, we utilized the same processes and procedures as for our due diligence, in particular Steps 1 and 2 of the OECD Guidance (as defined below) design framework, which are described below in this Conflict Minerals Report.

Our outreach included, with respect to the In-Scope Products, all of those suppliers (the “Suppliers”) that we identified as having provided us with components, parts or products that contain 3TG or that we believe may have provided us with components, parts or products that contain 3TG. In connection with our scoping determination, we looked at product specifications, made supplier inquiries and utilized other information known to us regarding the materials composition of our products.

For 2017, the Suppliers identified to us 203 smelters and refiners that processed or may have processed the necessary 3TG contained in our In-Scope Products. Based on our reasonable country of origin inquiry, we concluded that 118 of these smelters and refiners sourced entirely from outside of the DRC and its adjoining countries, including from recycled or scrap sources, as described under “Product Information — Smelter, Refiner and Country of Origin Information.” Our conclusion was based on information provided by the Responsible Minerals Initiative (the “RMI,” and formerly the Conflict-Free Sourcing Initiative) to its members.

Pursuant to the Conflict Minerals Rule, based on the results of our reasonable country of origin inquiry, we conducted due diligence for 2017. These due diligence efforts are discussed below.

Due Diligence Framework

We utilize due diligence measures relating to 3TG that are intended to conform with, in all material respects, the criteria set forth in the Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, including the Supplement on Tin, Tantalum and Tungsten and the Supplement on Gold (the “OECD Guidance”).

The OECD Guidance has established a five-step framework for due diligence as a basis for responsible global supply chain management of minerals from conflict-affected and high-risk areas. Selected elements of our program design are discussed below, but these are not all of the elements of the program that we have put in place to help ensure that the 3TG contained in our products are responsibly sourced. Selected due diligence measures that we took in respect of 2017 are discussed under “Due Diligence Program Execution.”

 

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Compliance Team

In support of our compliance efforts, we have a Conflict Minerals Reporting Oversight Committee (the “Committee”) that is charged with overseeing, implementing and providing feedback on our Conflict Minerals compliance strategy. The Committee consists of senior staff under our Chief Financial Officer and our Senior Vice President and General Counsel, who have executive leadership for our 3TG compliance program. Finance, legal and supply chain management are represented on the Committee. Certain members of the Committee and selected other internal personnel are trained on the Conflict Minerals Rule, the OECD Guidance, our compliance plan and the procedures for reviewing and validating supplier responses to our inquiries.

The Committee is supplemented by outside professionals. We utilize specialist outside counsel to advise us on certain aspects of our compliance. We also utilize a third-party to help us gather data from some suppliers.

Conflict Minerals Policy; Reporting Mechanism

As described above under “Our Conflict Minerals Policy,” we have adopted a Conflict Minerals Policy. We communicate the Conflict Minerals Policy internally to selected employees. The Conflict Minerals Policy also is communicated to direct suppliers and certain tier 2 suppliers with whom we have a direct relationship and that we determine to potentially be in-scope for purposes of our compliance. In addition, the Conflict Minerals Policy is posted on our website at https://www.citrix.com/content/dam/citrix/en_us/documents/about/conflict-minerals-policy.pdf. Our Conflict Minerals Policy contains an email address for employees, suppliers and other interested parties to report violations of the policy electronically. The email address is compliance.prime@citrix.com.

Records Storage and Retention

We have an internal electronic database for the maintenance of business records relating to 3TG due diligence, including records of due diligence processes, findings and resulting decisions. As contemplated by the OECD Guidance, our policy requires the maintenance of these records for at least five years.

Contract Terms With Suppliers

We have a contract addendum (the “Contract Addendum”) requiring relevant suppliers to agree to, among other things, (1) maintain, record and provide to us on request, traceability data and other information that we may request in order to facilitate our compliance with the Conflict Minerals Rule, (2) comply with our Conflict Minerals Policy and (3) adopt and maintain policies, due diligence frameworks and management systems that enable us to comply with our obligations under the Conflict Minerals Rule. The Contract Addendum was sent to suppliers with whom we already had contracts at the time that the addendum was developed and is included in new proposed contracts as determined to be appropriate by our legal department.

Identification, Assessment and Reporting of Supply Chain Risk

Following our scoping determination, we request that relevant suppliers provide us with information concerning the usage and source of the 3TG in the In-Scope Products they supply to us by submitting to us a completed copy of the Conflict Minerals Reporting Template (“Template”) developed by the RMI. If a supplier does not respond within the requested time frame, we, or one of our tier 1 third-party manufacturers on our behalf, follow up with the supplier.

After we receive back the Template responses from suppliers, we review the responses. We, or one of our tier 1 third-party manufacturers on our behalf, follow up with suppliers that do not fully complete the Template or that submit a response that we determine contained errors or inaccuracies. If a supplier does not fully complete the Template or if we determine that the response contained errors or inaccuracies, we or the third-party manufacturer on our behalf requests that the supplier submit a revised response.

We review smelters and refiners listed on Template responses against the Smelter Look-up tab list of the Template and the lists of Conformant and Active (as defined later in this Conflict Minerals Report) smelters and refiners published by the RMI, as well as the country of origin information made available by the RMI to its members. If an indicated smelter or refiner is

 

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not listed on the Smelter Look-up tab list or listed as Conformant, we consult public online information, request the assistance of our supplier or contact the listed entity to attempt to determine whether that entity was actually a smelter or refiner, the mine or location of origin of the 3TG processed by the smelter or refiner and whether it is known to obtain 3TG from sources that directly or indirectly finance or benefit armed groups in the DRC or an adjoining country.

Based on the information furnished by the suppliers and other information known to us, we assess the risks of adverse impacts. The Committee also reports the findings of its supply chain risk assessment to our Chief Financial Officer, our Senior Vice President and General Counsel and our internal management Disclosure Committee.

We determine on a case-by-case basis the appropriate risk mitigation strategy for any identified risks of a violation of our Conflict Minerals Policy. Potential outcomes under our risk mitigation strategy include continuing to work with the supplier while risks are addressed or reassessing the relationship with the supplier. Under our risk mitigation strategy, to the extent that risks that require mitigation are identified, if applicable, we will adopt procedures for monitoring and tracking the performance of the risk mitigation efforts and for reporting these efforts back to appropriate senior oversight personnel. Under our procedures, we also will undertake additional fact and risk assessments, as determined by the Committee, for risks that require mitigation or after a change of circumstances.

Independent Third-party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain

We utilize and rely on information made available by the RMI concerning independent third-party audits of smelters and refiners to assess smelter and refiner due diligence and to determine whether identified smelters and refiners are Conformant. We are a member of the Responsible Business Alliance (the “RBA,” formerly the Electronic Industry Citizenship Coalition), of which the RMI is an initiative.

Report on Supply Chain Due Diligence

We file a Form SD and a Conflict Minerals Report with the Securities and Exchange Commission and make these filings available on our corporate website.

Due Diligence Program Execution

In furtherance of our 3TG due diligence, we performed the due diligence measures discussed below for 2017. These are not all of the measures that we took in furtherance of our 3TG compliance program and pursuant to the Conflict Minerals Rule and the OECD Guidance. For a discussion of the design of our due diligence measures, see “Due Diligence Framework.”

 

  1. We sent requests to the Suppliers to provide us with a completed Template. We requested that the Suppliers furnish us with a completed Template at the product level. We followed up by email or phone with the Suppliers that did not provide a response within the specified time frame. Some of the requests were sent, and follow-up was performed on our behalf, by one of our tier 1 third-party manufacturers.

 

  2. We reviewed the completed responses received from the Suppliers for incomplete responses, potential errors, inaccuracies and other potential issues.

 

  3. We reviewed the smelters and refiners identified to us by the Suppliers against those contained on the Smelter Look-up tab list of the Template. To the extent not on that list, we (a) requested that the Supplier confirm that the listed entity is a smelter or refiner, (b) consulted publicly available online information to attempt to determine whether the identified entity was a smelter or refiner or (c) attempted to contact the listed entity.

 

  4. We reviewed identified smelters and refiners against the lists of Conformant and Active smelters and refiners and country of origin information published by the RMI or made available by it to its members. Two hundred (200), or 99%, of the identified smelters and refiners in product level Template responses were listed as Conformant by the RMI as of April 26, 2018. In comparison, for calendar 2016, 155 out of 173, or just under 90%, of the reported smelters were listed as Conformant.

 

  5. To the extent that a smelter or refiner identified by a Supplier was not listed as Conformant by the RMI, we searched online public information to attempt to determine the mine or location of origin of the 3TG processed by the smelter or refiner and whether it is known to obtain 3TG from sources that directly or indirectly finance or benefit armed groups in the DRC or an adjoining country.

 

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  6. The Committee reported the findings of its supply chain risk assessment to our Chief Financial Officer, our Senior Vice President and General Counsel and our internal management Disclosure Committee.

 

  7. We are a member of the RBA; its affiliated entity, the RMI, coordinates independent third-party audits of smelters and refiners on behalf of its membership.

Product Information

For 2017, we were unable to determine the origin of at least a portion of the necessary 3TG in each of our In-Scope Products (which are described earlier in this Conflict Minerals Report). Most of our products consist solely of software and do not contain a physical component, and therefore do not contain 3TG. For a further discussion of our products, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The information contained in our Form 10-K is not incorporated by reference into this Conflict Minerals Report or our Form SD and should not be considered part of this Conflict Minerals Report or our Form SD.

For 2017, none of the 3TG in our In-Scope Products was determined by us to have directly or indirectly financed or benefitted armed groups in the DRC or an adjoining country. An “armed group” under the Conflict Minerals Rule is an armed group that is identified as a perpetrator of serious human rights abuses in annual Country Reports on Human Rights Practices under sections 116(d) and 502B(b) of the Foreign Assistance Act of 1961 relating to the DRC or an adjoining country. However, we did not conclude that any of our products were “DRC conflict free.”

Smelter, Refiner and Country of Origin Information

The Suppliers identified to us the 203 facilities listed below that may have processed the necessary 3TG contained in our In-Scope Products during 2017. As of April 26, 2018, two hundred (200) of these facilities, or 99%, were listed as Conformant.

We depend upon our suppliers for information concerning the origin of the 3TG contained in our In-Scope Products. The smelters and refiners identified to us by the Suppliers may not be all of the smelters and refiners that were in our supply chain during 2017, since the Suppliers were not able to obtain smelter and refiner information from all of their direct and indirect suppliers, and since we did not receive responses from all of the Suppliers.

Smelter and Refiner Information (1)

 

      

Metal

  

Name of Smelter or Refiner

  

Country Location

  

Smelter or Refiner

          Status           

    1      Gold    Aida Chemical Industries Co., Ltd.    JAPAN    Conformant
    2      Gold    Allgemeine Gold-und Silberscheideanstalt A.G.    GERMANY    Conformant
    3      Gold    Almalyk Mining and Metallurgical Complex (AMMC)    UZBEKISTAN    Conformant
    4      Gold    AngloGold Ashanti Córrego do Sítio Mineração    BRAZIL    Conformant
    5      Gold    Argor-Heraeus S.A.    SWITZERLAND    Conformant
    6      Gold    Asahi Pretec Corp.    JAPAN    Conformant
    7      Gold    Asahi Refining Canada Ltd.    CANADA    Conformant
    8      Gold    Asahi Refining USA Inc.    UNITED STATES OF AMERICA    Conformant
    9      Gold    Asaka Riken Co., Ltd.    JAPAN    Conformant
  10      Gold    Aurubis AG    GERMANY    Conformant
  11      Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    PHILIPPINES    Conformant
  12      Gold    Boliden AB    SWEDEN    Conformant
  13      Gold    C. Hafner GmbH + Co. KG    GERMANY    Conformant
  14      Gold    CCR Refinery—Glencore Canada Corporation    CANADA    Conformant
  15      Gold    Chimet S.p.A.    ITALY    Conformant

 

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  16      Gold    DODUCO Contacts and Refining GmbH    GERMANY    Conformant
  17      Gold    Dowa    JAPAN    Conformant
  18      Gold    DSC (Do Sung Corporation)    KOREA (REPUBLIC OF)    Conformant
  19      Gold    Eco-System Recycling Co., Ltd.    JAPAN    Conformant
  20      Gold    Gold Refinery of Zijin Mining Group Co., Ltd.    CHINA    Conformant
  21      Gold    Heimerle + Meule GmbH    GERMANY    Conformant
  22      Gold    Heraeus Metals Hong Kong Ltd.    CHINA    Conformant
  23      Gold    Heraeus Precious Metals GmbH & Co. KG    GERMANY    Conformant
  24      Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    CHINA    Conformant
  25      Gold    Ishifuku Metal Industry Co., Ltd.    JAPAN    Conformant
  26      Gold    Istanbul Gold Refinery    TURKEY    Conformant
  27      Gold    Japan Mint    JAPAN    Conformant
  28      Gold    Jiangxi Copper Co., Ltd.    CHINA    Conformant
  29      Gold    JSC Ekaterinburg Non-Ferrous Metal Processing Plant    RUSSIAN FEDERATION    Conformant
  30      Gold    JSC Uralelectromed    RUSSIAN FEDERATION    Conformant
  31      Gold    JX Nippon Mining & Metals Co., Ltd.    JAPAN    Conformant
  32      Gold    Kazzinc    KAZAKHSTAN    Conformant
  33      Gold    Kennecott Utah Copper LLC    UNITED STATES OF AMERICA    Conformant
  34      Gold    Kojima Chemicals Co., Ltd.    JAPAN    Conformant
  35      Gold    Kyrgyzaltyn JSC    KYRGYZSTAN    Conformant
  36      Gold    LS-NIKKO Copper Inc.    KOREA (REPUBLIC OF)    Conformant
  37      Gold    Materion    UNITED STATES OF AMERICA    Conformant
  38      Gold    Matsuda Sangyo Co., Ltd.    JAPAN    Conformant
  39      Gold    Metalor Technologies (Hong Kong) Ltd.    CHINA    Conformant
  40      Gold    Metalor Technologies (Singapore) Pte., Ltd.    SINGAPORE    Conformant
  41      Gold    Metalor Technologies (Suzhou) Ltd.    CHINA    Conformant
  42      Gold    Metalor Technologies S.A.    SWITZERLAND    Conformant
  43      Gold    Metalor USA Refining Corporation    UNITED STATES OF AMERICA    Conformant
  44      Gold    Metalúrgica Met-Mex Peñoles S.A. De C.V.    MEXICO    Conformant
  45      Gold    Mitsubishi Materials Corporation    JAPAN    Conformant
  46      Gold    Mitsui Mining and Smelting Co., Ltd.    JAPAN    Conformant
  47      Gold    MMTC-PAMP India Pvt., Ltd.    INDIA    Conformant
  48      Gold    Moscow Special Alloys Processing Plant    RUSSIAN FEDERATION    Conformant
  49      Gold    Nadir Metal Rafineri San. Ve Tic. A.Ş.    TURKEY    Conformant
  50      Gold    Nihon Material Co., Ltd.    JAPAN    Conformant
  51      Gold    Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH    AUSTRIA    Conformant
  52      Gold    Ohura Precious Metal Industry Co., Ltd.    JAPAN    Conformant
  53      Gold    OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)    RUSSIAN FEDERATION    Conformant
  54      Gold    OJSC Novosibirsk Refinery    RUSSIAN FEDERATION    Conformant

 

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  55      Gold    PAMP S.A.    SWITZERLAND    Conformant
  56      Gold    Prioksky Plant of Non-Ferrous Metals    RUSSIAN FEDERATION    Conformant
  57      Gold    PT Aneka Tambang (Persero) Tbk    INDONESIA    Conformant
  58      Gold    PX Précinox S.A.    SWITZERLAND    Conformant
  59      Gold    Rand Refinery (Pty) Ltd.    SOUTH AFRICA    Conformant
  60      Gold    Republic Metals Corporation    UNITED STATES OF AMERICA    Conformant
  61      Gold    Royal Canadian Mint    CANADA    Conformant
  62      Gold    Samduck Precious Metals    KOREA (REPUBLIC OF)    Conformant
  63      Gold    Schone Edelmetaal B.V.    NETHERLANDS    On Smelter Look-up Tab List Only
  64      Gold    SEMPSA Joyería Platería S.A.    SPAIN    Conformant
  65      Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    CHINA    Conformant
  66      Gold    Sichuan Tianze Precious Metals Co., Ltd.    CHINA    Conformant
  67      Gold    Singway Technology Co., Ltd.    TAIWAN, PROVINCE OF CHINA    Conformant
  68      Gold    SOE Shyolkovsky Factory of Secondary Precious Metals    RUSSIAN FEDERATION    Conformant
  69      Gold    Solar Applied Materials Technology Corp.    TAIWAN, PROVINCE OF CHINA    Conformant
  70      Gold    Sumitomo Metal Mining Co., Ltd.    JAPAN    Conformant
  71      Gold    T.C.A S.p.A    ITALY    Conformant
  72      Gold    Tanaka Kikinzoku Kogyo K.K.    JAPAN    Conformant
  73      Gold    The Refinery of Shandong Gold Mining Co., Ltd.    CHINA    Conformant
  74      Gold    Tokuriki Honten Co., Ltd.    JAPAN    Conformant
  75      Gold    Torecom    KOREA (REPUBLIC OF)    Conformant
  76      Gold    Umicore Brasil Ltda.    BRAZIL    Conformant
  77      Gold    Umicore Precious Metals Thailand    THAILAND    Conformant
  78      Gold    Umicore S.A. Business Unit Precious Metals Refining    BELGIUM    Conformant
  79      Gold    United Precious Metal Refining, Inc.    UNITED STATES OF AMERICA    Conformant
  80      Gold    Valcambi S.A.    SWITZERLAND    Conformant
  81      Gold    Western Australian Mint (T/a The Perth Mint)    AUSTRALIA    Conformant
  82      Gold    Yamakin Co., Ltd.    JAPAN    Conformant
  83      Gold    Yokohama Metal Co., Ltd.    JAPAN    Conformant
  84      Gold    Zhongyuan Gold Smelter of Zhongjin Gold Corporation    CHINA    Conformant
  85      Tantalum    Changsha South Tantalum Niobium Co., Ltd.    CHINA    Conformant
  86      Tantalum    D Block Metals, LLC    UNITED STATES OF AMERICA    Conformant
  87      Tantalum    Exotech Inc.    UNITED STATES OF AMERICA    Conformant
  88      Tantalum    F&X Electro-Materials Ltd.    CHINA    Conformant
  89      Tantalum    FIR Metals & Resource Ltd.    CHINA    Conformant
  90      Tantalum    Global Advanced Metals Aizu    JAPAN    Conformant
  91      Tantalum    Global Advanced Metals Boyertown    UNITED STATES OF AMERICA    Conformant

 

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  92      Tantalum    Guangdong Rising Rare Metals-EO Materials Ltd.    CHINA    Conformant
  93      Tantalum    Guangdong Zhiyuan New Material Co., Ltd.    CHINA    Conformant
  94      Tantalum    H.C. Starck Co., Ltd.    THAILAND    Conformant
  95      Tantalum    H.C. Starck Hermsdorf GmbH    GERMANY    Conformant
  96      Tantalum    H.C. Starck Inc.    UNITED STATES OF AMERICA    Conformant
  97      Tantalum    H.C. Starck Ltd.    JAPAN    Conformant
  98      Tantalum    H.C. Starck Smelting GmbH & Co. KG    GERMANY    Conformant
  99      Tantalum    H.C. Starck Tantalum and Niobium GmbH    GERMANY    Conformant
  100      Tantalum    Hengyang King Xing Lifeng New Materials Co., Ltd.    CHINA    Conformant
  101      Tantalum    JiuJiang JinXin Nonferrous Metals Co., Ltd.    CHINA    Conformant
  102      Tantalum    Jiujiang Tanbre Co., Ltd.    CHINA    Conformant
  103      Tantalum    LSM Brasil S.A.    BRAZIL    Conformant
  104      Tantalum    Metallurgical Products India Pvt., Ltd.    INDIA    Conformant
  105      Tantalum    Mineracao Taboca S.A.    BRAZIL    Conformant
  106      Tantalum    Mitsui Mining and Smelting Co., Ltd.    JAPAN    Conformant
  107      Tantalum    Ningxia Orient Tantalum Industry Co., Ltd.    CHINA    Conformant
  108      Tantalum    NPM Silmet AS    ESTONIA    Conformant
  109      Tantalum    Solikamsk Magnesium Works OAO    RUSSIAN FEDERATION    Conformant
  110      Tantalum    Taki Chemical Co., Ltd.    JAPAN    Conformant
  111      Tantalum    Telex Metals    UNITED STATES OF AMERICA    Conformant
  112      Tantalum    Ulba Metallurgical Plant JSC    KAZAKHSTAN    Conformant
  113      Tantalum    Yichun Jin Yang Rare Metal Co., Ltd.    CHINA    On Smelter Look-up Tab List Only
  114      Tin    Alpha    UNITED STATES OF AMERICA    Conformant
  115      Tin    China Tin Group Co., Ltd.    CHINA    Conformant
  116      Tin    CNMC(Guangxi) PGMA Co., Ltd.    CHINA    On Smelter Look-up Tab List Only
  117      Tin    CV Ayi Jaya    INDONESIA    Conformant
  118      Tin    CV Gita Pesona    INDONESIA    Conformant
  119      Tin    CV United Smelting    INDONESIA    Conformant
  120      Tin    CV Venus Inti Perkasa    INDONESIA    Conformant
  121      Tin    Dowa    JAPAN    Conformant
  122      Tin    EM Vinto    BOLIVIA (PLURINATIONAL STATE OF)    Conformant
  123      Tin    Fenix Metals    POLAND    Conformant
  124      Tin    Gejiu Jinye Mineral Company    CHINA    Conformant
  125      Tin    Gejiu Non-Ferrous Metal Processing Co., Ltd.    CHINA    Conformant
  126      Tin    Jiangxi Ketai Advanced Material Co., Ltd.    CHINA    Conformant
  127      Tin    Magnu’s Minerais Metais e Ligas Ltda.    BRAZIL    Conformant
  128      Tin    Malaysia Smelting Corporation (MSC)    MALAYSIA    Conformant
  129      Tin    Melt Metais e Ligas S.A.    BRAZIL    Conformant

 

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  130      Tin    Metallic Resources, Inc.    UNITED STATES OF AMERICA    Conformant
  131      Tin    Metallo Spain S.L.U.    SPAIN    Conformant
  132      Tin    Metallo-Chimique N.V.    BELGIUM    Conformant
  133      Tin    Mineracao Taboca S.A.    BRAZIL    Conformant
  134      Tin    Minsur    PERU    Conformant
  135      Tin    Mitsubishi Materials Corporation    JAPAN    Conformant
  136      Tin    O.M. Manufacturing (Thailand) Co., Ltd.    THAILAND    Conformant
  137      Tin    O.M. Manufacturing Philippines, Inc.    PHILIPPINES    Conformant
  138      Tin    Operaciones Metalurgical S.A.    BOLIVIA (PLURINATIONAL STATE OF)    Conformant
  139      Tin    PT Aries Kencana Sejahtera    INDONESIA    Conformant
  140      Tin    PT Artha Cipta Langgeng    INDONESIA    Conformant
  141      Tin    PT ATD Makmur Mandiri Jaya    INDONESIA    Conformant
  142      Tin    PT Babel Inti Perkasa    INDONESIA    Conformant
  143      Tin    PT Bangka Prima Tin    INDONESIA    Conformant
  144      Tin    PT Bangka Tin Industry    INDONESIA    Conformant
  145      Tin    PT Belitung Industri Sejahtera    INDONESIA    Conformant
  146      Tin    PT Bukit Timah    INDONESIA    Conformant
  147      Tin    PT DS Jaya Abadi    INDONESIA    Conformant
  148      Tin    PT Eunindo Usaha Mandiri    INDONESIA    Conformant
  149      Tin    PT Inti Stania Prima    INDONESIA    Conformant
  150      Tin    PT Menara Cipta Mulia    INDONESIA    Conformant
  151      Tin    PT Mitra Stania Prima    INDONESIA    Conformant
  152      Tin    PT Panca Mega Persada    INDONESIA    Conformant
  153      Tin    PT Premium Tin Indonesia    INDONESIA    Conformant
  154      Tin    PT Prima Timah Utama    INDONESIA    Conformant
  155      Tin    PT Rajehan Ariq    INDONESIA    Conformant
  156      Tin    PT Refined Bangka Tin    INDONESIA    Conformant
  157      Tin    PT Sariwiguna Binasentosa    INDONESIA    Conformant
  158      Tin    PT Stanindo Inti Perkasa    INDONESIA    Conformant
  159      Tin    PT Sukses Inti Makmur    INDONESIA    Conformant
  160      Tin    PT Sumber Jaya Indah    INDONESIA    Conformant
  161      Tin    PT Timah (Persero) Tbk Kundur    INDONESIA    Conformant
  162      Tin    PT Timah (Persero) Tbk Mentok    INDONESIA    Conformant
  163      Tin    PT Tinindo Inter Nusa    INDONESIA    Conformant
  164      Tin    PT Tommy Utama    INDONESIA    Conformant
  165      Tin    Resind Indústria e Comércio Ltda.    BRAZIL    Conformant
  166      Tin    Rui Da Hung    TAIWAN, PROVINCE OF CHINA    Conformant
  167      Tin    Soft Metais Ltda.    BRAZIL    Conformant
  168      Tin    Thaisarco    THAILAND    Conformant
  169      Tin    White Solder Metalurgia e Mineracao Ltda.    BRAZIL    Conformant

 

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  170      Tin    Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    CHINA    Conformant
  171      Tin    Yunnan Tin Company Limited    CHINA    Conformant
  172      Tungsten    A.L.M.T. TUNGSTEN Corp.    JAPAN    Conformant
  173      Tungsten    Chenzhou Diamond Tungsten Products Co., Ltd.    CHINA    Conformant
  174      Tungsten    Chongyi Zhangyuan Tungsten Co., Ltd.    CHINA    Conformant
  175      Tungsten    Fujian Jinxin Tungsten Co., Ltd.    CHINA    Conformant
  176      Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.    CHINA    Conformant
  177      Tungsten    Ganzhou Jiangwu Ferrotungsten Co., Ltd.    CHINA    Conformant
  178      Tungsten    Ganzhou Seadragon W & Mo Co., Ltd.    CHINA    Conformant
  179      Tungsten    Global Tungsten & Powders Corp.    UNITED STATES OF AMERICA    Conformant
  180      Tungsten    Guangdong Xianglu Tungsten Co., Ltd.    CHINA    Conformant
  181      Tungsten    H.C. Starck Smelting GmbH & Co. KG    GERMANY    Conformant
  182      Tungsten    H.C. Starck Tungsten GmbH    GERMANY    Conformant
  183      Tungsten    Hunan Chenzhou Mining Co., Ltd.    CHINA    Conformant
  184      Tungsten    Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji    CHINA    Conformant
  185      Tungsten    Hunan Chunchang Nonferrous Metals Co., Ltd.    CHINA    Conformant
  186      Tungsten    Hydrometallurg, JSC    RUSSIAN FEDERATION    Conformant
  187      Tungsten    Japan New Metals Co., Ltd.    JAPAN    Conformant
  188      Tungsten    Jiangwu H.C. Starck Tungsten Products Co., Ltd.    CHINA    Conformant
  189      Tungsten    Jiangxi Gan Bei Tungsten Co., Ltd.    CHINA    Conformant
  190      Tungsten    Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.    CHINA    Conformant
  191      Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.    CHINA    Conformant
  192      Tungsten    Jiangxi Yaosheng Tungsten Co., Ltd.    CHINA    Conformant
  193      Tungsten    Kennametal Fallon    UNITED STATES OF AMERICA    Conformant
  194      Tungsten    Kennametal Huntsville    UNITED STATES OF AMERICA    Conformant
  195      Tungsten    Malipo Haiyu Tungsten Co., Ltd.    CHINA    Conformant
  196      Tungsten    Niagara Refining LLC    UNITED STATES OF AMERICA    Conformant
  197      Tungsten    Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC    VIET NAM    Conformant
  198      Tungsten    Tejing (Vietnam) Tungsten Co., Ltd.    VIET NAM    Conformant
  199      Tungsten    Vietnam Youngsun Tungsten Industry Co., Ltd.    VIET NAM    Conformant
  200      Tungsten    Wolfram Bergbau und Hutten AG    AUSTRIA    Conformant
  201      Tungsten    Xiamen Tungsten (H.C.) Co., Ltd.    CHINA    Conformant
  202      Tungsten    Xiamen Tungsten Co., Ltd.    CHINA    Conformant
  203      Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.    CHINA    Conformant

 

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(1) We note the following in connection with the information contained in the foregoing list:

 

  a) The smelters and refiners listed above were identified to us by the Suppliers as being part of our 2017 supply chain. However, not all of the included smelters and refiners may have processed necessary 3TG contained in our In-Scope Products. Some Suppliers may have reported to us smelters and refiners that were not in our supply chain due to over-inclusiveness in the information received from their suppliers, due to errors or for other reasons. In addition, the smelters or refiners reflected above may not be all of the smelters and refiners in our 2017 supply chain, since (i) we have not included smelter or refiner information that our Suppliers reported to us at a “company level,” meaning that they reported to us the 3TG content contained in all of their products, not just the products they sold to us; (ii) many of our Suppliers were unable to identify all of the smelters and refiners used to process the necessary 3TG content contained in our In-Scope Products; and (iii) because not all of our Suppliers responded to our inquiries.

 

  b) The listed smelters and refiners only include those reported entities that were listed on the Smelter Look-up tab list of the Template because those are the only reported entities that we were able to determine were smelters or refiners.

 

  c) “Conformant” means that a smelter or refiner was listed as Conformant with the Responsible Minerals Assurance Process’s (“RMAP,” formerly known as the Conflict-Free Smelter Program) assessment protocols, including through mutual recognition and those indicated as “re-audit in process.” Included smelters and refiners were not necessarily Conformant for all or part of 2017 and may not continue to be Conformant for any future period. We do not have information on the origin of the 3TG processed by any of the Conformant smelters and refiners prior to their respective compliance dates.

 

  d) “Active” means that the smelter or refiner is a participant in the RMAP and has committed to undergo an audit or is participating in a cross-recognized certification program.

 

  e) A smelter or refiner is listed as “On Smelter Look-up List Only” if it was not Conformant or Active but appears on the Smelter Look-up tab list of the Template.

 

  f) The compliance status and country location reflected in the list is based solely on information made available by the RMI to its members, without independent verification by us.

 

  g) Country Location is the location of the smelter or refiner and is based solely on information made publicly available by RMI, without independent verification by us.

We have endeavored to determine the mine or location of origin of the 3TG contained in our In-Scope Products by requesting that the Suppliers provide us with completed Templates and through the flow-down provisions contained in the Conflict Minerals Policy. Where a smelter or refiner has been identified, we also have reviewed public online information and information made available by the RMI to its members, to the extent available, to try to determine the mine or location of origin.

The countries of origin of the Conflict Minerals processed by the Conformant smelters and refiners identified to us by the Suppliers may have included the countries listed below. The listed countries of origin are derived from information made available by the RMI to its members. Except for the DRC, the RMI does not indicate individual countries of origin of the 3TG processed by Conformant smelters and refiners. Instead, the RMI indicates country of origin by category, according to risk level. The identified Conformant smelters and refiners were in each of the categories below:

L1 – Countries that are not identified as conflict regions or plausible areas of smuggling or export from the DRC and its adjoining countries: Argentina, Australia, Austria, Benin, Bolivia, Brazil, Burkina Faso, Cambodia, Canada, Chile, China, Colombia, Ecuador, Eritrea, Ethiopia, France, Germany, Ghana, Guatemala, Guinea, Guyana, Honduras, India, Indonesia, Japan, Kazakhstan, Laos, Madagascar, Malaysia, Mali, Mexico, Mongolia, Myanmar, Namibia, Nicaragua, Nigeria, Panama, Peru, Portugal, Russia, Senegal, Sierra Leone, Spain, Thailand, Togo, United States of America, United Kingdom, Uzbekistan, Vietnam and Zimbabwe.

L2 – Countries that are known or plausible countries for smuggling, export out of region or transit of materials containing 3TG: Mozambique and South Africa.

L3 – The DRC and its adjoining countries: Burundi, Rwanda and Uganda.

DRC – The Democratic Republic of the Congo.

 

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Alternatively, some of the 3TG processed by the Conformant smelters and refiners may have originated from recycled or scrap sources. Because the RMI does not indicate individual countries of origin of the 3TG processed by Conformant smelters and refiners (other than the DRC), we were not able to determine the countries of origin of the 3TG processed by the identified Conformant smelters and refiners with greater specificity, and certain of the Conformant smelters and refiners sourced from more than one region listed above and/or from recycled or scrap sources. In addition, for some of the identified Conformant smelters and refiners, origin information is not disclosed by the RMI. We did not determine the countries of origin of the 3TG processed by the other smelters and refiners listed in the table above.

As noted earlier in this Conflict Minerals Report, based on our reasonable country of origin inquiry, we concluded that 118 of the Conformant smelters and refiners identified by the Suppliers sourced entirely from outside of the DRC and its adjoining countries, including from recycled or scrap sources.

Due Diligence Improvement Measures

We intend to further improve due diligence measures for 2018 in order to mitigate the risk that the necessary 3TG in our In-Scope Products benefit armed groups by taking the following steps, among others:

 

    Using the latest revision of the Conflict Minerals Reporting Template for our 2018 supplier outreach;

 

    Continuing to encourage Suppliers that provided company level information for 2017 to provide product level information for 2018 through ongoing outreach with these Suppliers;

 

    Continuing to engage with Suppliers that provided incomplete responses or that did not provide responses for 2017 to help ensure that they provide requested information for 2018; and

 

    Communicating our sourcing expectations to any new supplier in 2018, including providing the supplier with a copy of the Conflict Minerals Policy.

 

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