Business Context and Reporting Period
Company: Applied Materials, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 27, 2005
Subject: Entry into a Material Definitive Agreement regarding amendments to the company's Relocation Policy and a specific extension of benefits for the CEO.
Key Financial Metrics
This filing does not contain financial performance data. There are no reported figures for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The filing details amendments to the Applied Materials, Inc. Relocation Policy approved by the Human Resources and Compensation Committee on October 27, 2005:
- Delegation of Authority: Extensions of the standard one-year period for relocation benefits for eligible employees may now be approved by the Human Resources Vice President alone. However, extensions for executive officers must still be approved by the Committee.
- Executive Exceptions: All exceptions to the Policy made for executive officers exceeding $50,000 must be approved by the Committee.
- CEO Benefit Extension: The Committee approved an extension of relocation benefits for Michael R. Splinter, President and CEO, through December 31, 2005.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on market outlook, or discussion of general business risks. The only contingency noted is the standard requirement that relocation benefits generally must be reimbursed on a pro rata basis if an employee terminates employment within 18 months, unless the termination is for business or economic reasons.
Investor Verification Checklist
- Verify the specific terms of the amended Relocation Policy (Exhibit 10.46) to understand the scope of delegated authority.
- Confirm the total value of relocation benefits extended to Michael R. Splinter to assess if it exceeds the $50,000 threshold requiring Committee approval.
- Review the company's 10-K or 10-Q filings for the most recent financial performance data, as this 8-K does not provide financial metrics.