Cover
Cover | 3 Months Ended |
Feb. 03, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Feb. 03, 2024 |
Document Transition Report | false |
Entity File Number | 1-7819 |
Entity Registrant Name | Analog Devices, Inc. |
Entity Incorporation, State or Country Code | MA |
Entity Tax Identification Number | 04-2348234 |
Entity Address, Address Line One | One Analog Way, |
Entity Address, City or Town | Wilmington, |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01887 |
City Area Code | 781 |
Local Phone Number | 935-5565 |
Title of 12(b) Security | Common Stock $0.16 2/3 par value per share |
Entity Trading Symbol | ADI |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 495,908,150 |
Entity Central Index Key | 0000006281 |
Current Fiscal Year End Date | --11-02 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 2,512,704 | $ 3,249,630 |
Cost of sales | 1,038,763 | 1,125,289 |
Gross margin | 1,473,941 | 2,124,341 |
Operating expenses: | ||
Research and development | 391,427 | 414,095 |
Selling, marketing, general and administrative | 290,078 | 326,284 |
Amortization of intangibles | 190,332 | 253,142 |
Special charges, net | 16,140 | 0 |
Total operating expenses | 887,977 | 993,521 |
Operating income: | 585,964 | 1,130,820 |
Nonoperating expense (income): | ||
Interest expense | 77,141 | 60,453 |
Interest income | (9,169) | (10,829) |
Other, net | 4,574 | 7,723 |
Total nonoperating expense (income) | 72,546 | 57,347 |
Income before income taxes | 513,418 | 1,073,473 |
Provision for income taxes | 50,691 | 111,999 |
Net income | $ 462,727 | $ 961,474 |
Shares used to compute earnings per common share – basic (in shares) | 495,765 | 507,121 |
Shares used to compute earnings per common share – diluted (in shares) | 498,741 | 511,184 |
Basic earnings per common share (in dollars per share) | $ 0.93 | $ 1.90 |
Diluted earnings per common share (in dollars per share) | $ 0.93 | $ 1.88 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 462,727 | $ 961,474 |
Foreign currency translation adjustments | 385 | 2,499 |
Change in fair value of derivative instruments designated as cash flow hedges, net | 8,020 | 25,467 |
Changes in pension plans, net actuarial gain/loss and foreign currency translation adjustments, net | (1,388) | 452 |
Other comprehensive income | 7,017 | 28,418 |
Comprehensive income | $ 469,744 | $ 989,892 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Feb. 03, 2024 | Oct. 28, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 1,303,560 | $ 958,061 |
Accounts receivable | 1,196,721 | 1,469,734 |
Inventories | 1,553,221 | 1,642,214 |
Prepaid expenses and other current assets | 362,375 | 314,013 |
Total current assets | 4,415,877 | 4,384,022 |
Non-current Assets | ||
Net property, plant and equipment | 3,281,937 | 3,219,157 |
Goodwill | 26,913,134 | 26,913,134 |
Intangible assets, net | 10,871,054 | 11,311,957 |
Deferred tax assets | 2,172,174 | 2,223,272 |
Other assets | 734,288 | 742,936 |
Total non-current assets | 43,972,587 | 44,410,456 |
TOTAL ASSETS | 48,388,464 | 48,794,478 |
Current Liabilities | ||
Accounts payable | 398,107 | 493,041 |
Income taxes payable | 410,013 | 309,046 |
Debt, current | 499,322 | 499,052 |
Commercial paper notes | 544,444 | 547,224 |
Accrued liabilities | 1,071,480 | 1,352,608 |
Total current liabilities | 2,923,366 | 3,200,971 |
Non-current Liabilities | ||
Long-term debt | 5,946,673 | 5,902,457 |
Deferred income taxes | 2,975,815 | 3,127,852 |
Income taxes payable | 415,535 | 417,076 |
Other non-current liabilities | 579,002 | 581,000 |
Total non-current liabilities | 9,917,025 | 10,028,385 |
Shareholders’ Equity | ||
Preferred stock, $1.00 par value, 471,934 shares authorized, none outstanding | 0 | 0 |
Common stock, $0.16 2/3 par value, 1,200,000,000 shares authorized, 495,908,150 shares outstanding (496,261,678 on October 28, 2023) | 82,653 | 82,712 |
Capital in excess of par value | 25,253,256 | 25,313,914 |
Retained earnings | 10,393,449 | 10,356,798 |
Accumulated other comprehensive loss | (181,285) | (188,302) |
Total shareholders’ equity | 35,548,073 | 35,565,122 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 48,388,464 | $ 48,794,478 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Feb. 03, 2024 | Oct. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 471,934 | 471,934 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.16 | $ 0.16 |
Common stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares outstanding (in shares) | 495,908,150 | 496,261,678 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Oct. 29, 2022 | 509,296,000 | ||||
Beginning balance at Oct. 29, 2022 | $ 84,880 | $ 27,857,270 | $ 8,721,325 | $ (198,152) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 961,474 | 961,474 | |||
Dividends declared and paid | (385,452) | ||||
Issuance of stock under stock plans and other (in shares) | 617,000 | ||||
Issuance of stock under stock plans and other | $ 103 | 41,135 | |||
Stock-based compensation expense | 75,041 | ||||
Other comprehensive income | $ 28,418 | 28,418 | |||
Common stock repurchased (in shares) | (4,061,000) | ||||
Common stock repurchased | $ (677) | (653,880) | |||
Ending balance (in shares) at Jan. 28, 2023 | 505,852,000 | ||||
Ending balance at Jan. 28, 2023 | $ 84,306 | 27,319,566 | 9,297,347 | (169,734) | |
Beginning balance (in shares) at Oct. 28, 2023 | 496,261,678 | 496,262,000 | |||
Beginning balance at Oct. 28, 2023 | $ 35,565,122 | $ 82,712 | 25,313,914 | 10,356,798 | (188,302) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 462,727 | 462,727 | |||
Dividends declared and paid | (426,076) | ||||
Issuance of stock under stock plans and other (in shares) | 676,000 | ||||
Issuance of stock under stock plans and other | $ 113 | 49,706 | |||
Stock-based compensation expense | 69,815 | ||||
Other comprehensive income | $ 7,017 | 7,017 | |||
Common stock repurchased (in shares) | (1,030,000) | ||||
Common stock repurchased | $ (172) | (180,179) | |||
Ending balance (in shares) at Feb. 03, 2024 | 495,908,150 | 495,908,000 | |||
Ending balance at Feb. 03, 2024 | $ 35,548,073 | $ 82,653 | $ 25,253,256 | $ 10,393,449 | $ (181,285) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (in dollars per share) | $ 0.86 | $ 0.76 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 462,727 | $ 961,474 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation | 84,348 | 85,321 |
Amortization of intangibles | 440,903 | 502,177 |
Stock-based compensation expense | 69,815 | 75,041 |
Deferred income taxes | (102,149) | (146,354) |
Other | 4,684 | 9,732 |
Changes in operating assets and liabilities | 178,504 | (81,086) |
Total adjustments | 676,105 | 444,831 |
Net cash provided by operating activities | 1,138,832 | 1,406,305 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (222,978) | (176,158) |
Other | 3,877 | 102 |
Net cash used for investing activities | (219,101) | (176,056) |
Cash flows from financing activities: | ||
Proceeds from commercial paper notes | 2,779,494 | 0 |
Payments of commercial paper notes | (2,782,274) | 0 |
Repurchase of common stock | (180,351) | (654,557) |
Dividend payments to shareholders | (426,076) | (385,452) |
Proceeds from employee stock plans | 49,819 | 41,238 |
Other | (14,844) | (31,588) |
Net cash used for financing activities | (574,232) | (1,030,359) |
Net increase in cash and cash equivalents | 345,499 | 199,890 |
Cash and cash equivalents at beginning of period | 958,061 | 1,470,572 |
Cash and cash equivalents at end of period | $ 1,303,560 | $ 1,670,462 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 03, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the information furnished in the accompanying condensed consolidated financial statements reflects all normal recurring adjustments that are necessary to fairly state the results for these interim periods and should be read in conjunction with Analog Devices, Inc.’s (the Company) Annual Report on Form 10-K for the fiscal year ended October 28, 2023 (fiscal 2023) and related notes. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending November 2, 2024 (fiscal 2024) or any future period. The Company has a 52-53 week fiscal year that ends on the Saturday closest to the last day in October. Fiscal 2024 is a 53-week fiscal year and fiscal 2023 was a 52-week fiscal year. The additional week in fiscal 2024 is included in the first quarter ended February 3, 2024. Therefore, the first quarter of fiscal 2024 included 14 weeks of operations and the first quarter of fiscal 2023 included 13 weeks of operations. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Feb. 03, 2024 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity As of February 3, 2024, the Company had repurchased a total of approximately 206.2 million shares of its common stock for approximately $14.7 billion under the Company's share repurchase program. As of February 3, 2024, an additional $2.0 billion remains available for repurchase of shares under the current authorized program. The Company also repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units/awards or the exercise of stock options as well as for the Company's employee stock purchase plan. Future repurchases of common stock will be dependent upon the Company's financial position, results of operations, outlook, liquidity and other factors deemed relevant by the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Feb. 03, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first three months of fiscal 2024. Foreign currency translation adjustment Unrealized holding gains (losses) on derivatives Pension plans Total October 28, 2023 $ (72,544) $ (102,043) $ (13,715) $ (188,302) Other comprehensive income before reclassifications 385 6,795 (1,904) 5,276 Amounts reclassified out of other comprehensive income — 2,699 516 3,215 Tax effects — (1,474) — (1,474) Other comprehensive income 385 8,020 (1,388) 7,017 February 3, 2024 $ (72,159) $ (94,023) $ (15,103) $ (181,285) The amounts reclassified out of AOCI into the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Shareholders' Equity with presentation location during each period were as follows: Three Months Ended Comprehensive (Loss) Income Component February 3, 2024 January 28, 2023 Location Unrealized holding (gains) losses on derivatives: Currency forwards $ (71) $ (1,059) Cost of sales (69) (447) Research and development (891) (1,297) Selling, marketing, general and administrative Interest rate derivatives 3,730 3,727 Interest expense 2,699 924 Total before tax (848) (802) Tax $ 1,851 $ 122 Net of tax Amortization of pension components included in the computation of net periodic pension cost: Actuarial losses $ 516 $ 370 Net of tax Total amounts reclassified out of AOCI, net of tax $ 2,367 $ 492 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended February 3, 2024 January 28, 2023 Net income $ 462,727 $ 961,474 Basic shares: Weighted-average shares outstanding 495,765 507,121 Earnings per common share basic: $ 0.93 $ 1.90 Diluted shares: Weighted-average shares outstanding 495,765 507,121 Assumed exercise of common stock equivalents 2,976 4,063 Weighted-average common and common equivalent shares 498,741 511,184 Earnings per common share diluted: $ 0.93 $ 1.88 Anti-dilutive shares related to: Outstanding stock-based awards 214 322 |
Special Charges, Net
Special Charges, Net | 3 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Special Charges, Net | Special Charges, Net Liabilities related to special charges, net are included in Accrued liabilities and Other non-current liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below: Accrued Special Charges Global Repositioning Actions Q4 2023 Plan Balance at October 28, 2023 $ 36,981 $ 110,446 Employee severance and benefit costs — 11,977 Severance and benefit payments (4,420) (87,013) Balance at February 3, 2024 $ 32,561 $ 35,410 Accrued liabilities $ 9,425 $ 35,410 Other non-current liabilities $ 23,136 $ — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 03, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On March 17, 2022, Walter E. Ryan and Ryan Asset Management, LLC, purported stockholders of Maxim Integrated Products, Inc. (Maxim), filed a putative class action in the Court of Chancery of the State of Delaware (C.A. No. 2022—0255) against the Company and the former directors of Maxim. The complaint alleges breaches of fiduciary duties by the individual defendants in connection with Maxim’s agreement, as part of the merger negotiations with the Company, to suspend Maxim dividends for up to four quarters prior to the closing of the Company's acquisition of Maxim. The complaint further alleges that the Company aided and abetted those alleged breaches of fiduciary duties. The plaintiffs seek damages in an amount to be determined at trial, plaintiffs’ costs and disbursements, including reasonable attorneys’ and experts’ fees, costs and other expenses. On May 2, 2023, the Court of Chancery entered an order dismissing the action in its entirety and with prejudice. On May 9, 2023, the plaintiffs filed a Motion for Reargument, which the Court denied on May 30, 2023. On June 21, 2023, the plaintiffs filed a Notice of Appeal to the Delaware Supreme Court. The appeal is fully briefed, and the Delaware Supreme Court heard argument on February 14, 2024. The Company believes that it and the other defendants have meritorious arguments in response to the appeal and defenses to the underlying allegations; however, the Company is currently unable to determine the ultimate outcome of this matter or determine an estimate, or a range of estimates, of potential losses, if any. |
Revenue
Revenue | 3 Months Ended |
Feb. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Trends by End Market The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. As data systems for capturing and tracking this data and the Company's methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. Three Months Ended February 3, 2024 January 28, 2023 Revenue % of Revenue* Y/Y% Revenue % of Revenue* Industrial $ 1,196,832 48 % (31) % $ 1,740,780 54 % Automotive 739,158 29 % 9 % 680,637 21 % Communications 302,573 12 % (37) % 477,266 15 % Consumer 274,141 11 % (22) % 350,947 11 % Total revenue $ 2,512,704 100 % (23) % $ 3,249,630 100 % * The sum of the individual percentages may not equal the total due to rounding. Revenue by Sales Channel The following table summarizes revenue by channel. The Company sells its products globally through a direct sales force, third party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time. Three Months Ended February 3, 2024 January 28, 2023 Channel Revenue % of Revenue* Revenue % of Revenue* Distributors $ 1,535,210 61 % $ 2,011,323 62 % Direct customers 939,975 37 % 1,195,534 37 % Other 37,519 1 % 42,773 1 % Total revenue $ 2,512,704 100 % $ 3,249,630 100 % * The sum of the individual percentages may not equal the total due to rounding. |
Fair Value
Fair Value | 3 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below, set forth by level, present the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of February 3, 2024 and October 28, 2023. The tables exclude cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. As of February 3, 2024 and October 28, 2023, the Company held $721.4 million and $642.1 million, respectively, of cash that is excluded from the tables below. February 3, 2024 Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 512,453 $ — $ 512,453 Corporate obligations (1) — 69,755 69,755 Other assets: Forward foreign currency exchange contracts (2) $ — $ 4,044 4,044 Deferred compensation plan investments 89,267 — 89,267 Total assets measured at fair value $ 601,720 $ 73,799 $ 675,519 Liabilities Forward foreign currency exchange contracts (2) $ — $ 11,282 $ 11,282 Interest rate derivatives (3) — 37,074 37,074 Total liabilities measured at fair value $ — $ 48,356 $ 48,356 (1) The amortized cost of the Company's investments classified as available-for-sale as of February 3, 2024 was $69.8 million. (2) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company's master netting arrangements. (3) The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements. October 28, 2023 Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 315,980 $ — $ 315,980 Other assets: Forward foreign currency exchange contracts (1) — 1,940 1,940 Deferred compensation plan investments 78,246 — 78,246 Total assets measured at fair value $ 394,226 $ 1,940 $ 396,166 Liabilities Forward foreign currency exchange contracts (1) $ — $ 13,515 $ 13,515 Interest rate derivatives (2) — 81,602 81,602 Total liabilities measured at fair value $ — $ 95,117 $ 95,117 (1) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company's master netting arrangements. (2) The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements. Assets and Liabilities Not Recorded at Fair Value on a Recurring Basis The table below presents the estimated fair values of certain financial instruments not recorded at fair value on a recurring basis. Given the short tenure of the Company's commercial paper notes, the carrying value of the outstanding commercial paper notes approximates the fair values, and therefore, are excluded from the table below ($544.4 million and $547.2 million as of February 3, 2024 and October 28, 2023, respectively). The fair values of the senior unsecured notes are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy. February 3, 2024 October 28, 2023 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value 2024 Notes, due October 2024 $ 500,000 $ 500,183 $ 500,000 $ 499,473 2025 Notes, due April 2025 400,000 391,161 400,000 385,231 2026 Notes, due December 2026 900,000 874,033 900,000 851,023 2027 Notes, due June 2027 440,212 420,472 440,212 408,595 2028 Notes, due October 2028 750,000 659,548 750,000 628,999 2031 Notes, due October 2031 1,000,000 836,328 1,000,000 773,404 2032 Notes, due October 2032 300,000 286,680 300,000 269,828 2036 Notes, due December 2036 144,278 128,570 144,278 118,554 2041 Notes, due October 2041 750,000 545,101 750,000 479,078 2045 Notes, due December 2045 332,587 326,610 332,587 292,248 2051 Notes, due October 2051 1,000,000 685,693 1,000,000 590,666 Total senior unsecured notes $ 6,517,077 $ 5,654,379 $ 6,517,077 $ 5,297,099 |
Derivatives
Derivatives | 3 Months Ended |
Feb. 03, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Foreign Exchange Exposure Management — The total notional amounts of forward foreign currency derivative instruments designated as hedging instruments of cash flow hedges denominated in Euros, British Pounds, Philippine Pesos, Thai Baht, South Korean Won and Japanese Yen as of February 3, 2024 and October 28, 2023 were $292.7 million and $322.6 million, respectively. The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s Condensed Consolidated Balance Sheets as of February 3, 2024 and October 28, 2023 were as follows: Fair Value At Balance Sheet Location February 3, 2024 October 28, 2023 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 1,724 $ 471 Forward foreign currency exchange contracts Accrued liabilities $ 4,637 $ 9,897 As of February 3, 2024 and October 28, 2023, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $293.1 million and $334.7 million, respectively. The fair values of undesignated hedges in the Company’s Condensed Consolidated Balance Sheets as of February 3, 2024 and October 28, 2023 were as follows: Fair Value At Balance Sheet Location February 3, 2024 October 28, 2023 Undesignated hedges related to forward foreign currency exchange contracts Prepaid expenses and other current assets $ 2,320 $ 1,469 Undesignated hedges related to forward foreign currency exchange contracts Accrued liabilities $ 6,645 $ 3,618 Interest Rate Exposure Management — The Company does not consider the risk of counterparty default to be significant. The gain or loss on the Company's interest rate swap transactions attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows: February 3, 2024 Balance Sheet Location Loss on Swaps Gain on Note Accrued liabilities $ 37,074 $ — Long-term debt $ — $ 37,074 For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the Condensed Consolidated Statements of Income related to forward foreign currency exchange contracts, see Note 3, Accumulated Other Comprehensive (Loss) Income, in these Notes to Condensed Consolidated Financial Statements for further information. |
Inventories
Inventories | 3 Months Ended |
Feb. 03, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at February 3, 2024 and October 28, 2023 were as follows: February 3, 2024 October 28, 2023 Raw materials $ 125,131 $ 128,142 Work in process 1,108,667 1,125,819 Finished goods 319,423 388,253 Total inventories $ 1,553,221 $ 1,642,214 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three-month periods ended February 3, 2024 and January 28, 2023 were below the U.S. statutory tax rate of 21.0%, due to lower statutory tax rates applicable to the Company's operations in the foreign jurisdictions in which it earns income. The Company's effective tax rate also includes the effects of the mandatory capitalization and amortization of research and development expenses which began in fiscal 2023 under the Tax Cuts and Jobs Act of 2017. The mandatory capitalization requirement decreases the Company's effective tax rate primarily by increasing the foreign-derived intangible income deduction. It is reasonably possible that the balance of gross unrealized tax benefits, including accrued interest and penalties, could decrease by as much as approximately $136.0 million within the next twelve months due to the completion of tax audits, including any administrative appeals. The Company has numerous audits ongoing throughout the world including: an IRS income tax audit for the fiscal years ended November 2, 2019 and November 3, 2018; a pre-acquisition IRS income tax audit for Maxim's fiscal years ended June 27, 2015 through August 26, 2021; various U.S. state and local audits and international audits, including an Irish corporate tax audit for the fiscal year ended November 2, 2019. The Company's U.S. federal income tax returns prior to the fiscal year ended November 3, 2018 are no longer subject to examination, except for the applicable Maxim pre-acquisition fiscal years noted above. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Feb. 03, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Standards Implemented Acquired Contract Assets and Contract Liabilities In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities . Under this guidance (ASC 805-20-30-28), the acquirer should determine what contract assets and/or contract liabilities it would have recorded under ASC 606 (the revenue guidance) as of the acquisition date, as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. The recognition and measurement of those contract assets and contract liabilities will likely be comparable to what the acquiree has recorded on its books under ASC 606 as of the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2021-08 in the first quarter of fiscal 2024. Upon adoption, ASU 2021-08 did not have a material impact on the Company's financial position and results of operations. Standards to be Implemented Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosure requirements for reportable segments. ASU 2023-07 requires segment disclosure to include significant segment expense categories and amounts, and qualitative detail of other segment items. Disclosure of multiple measures of segment profit and loss may also be reported. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial position and results of operations. Income Taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires the disaggregation of information in existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial position and results of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Feb. 03, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 20, 2024, the Board of Directors of the Company declared a cash dividend of $0.92 per outstanding share of common stock. The dividend will be paid on March 15, 2024 to all shareholders of record at the close of business on March 5, 2024 and is expected to total approximately $456.2 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 462,727 | $ 961,474 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 03, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The following table describes contracts, instructions or written plans for the sale or purchase of our securities adopted by our directors or officers during the first quarter of fiscal 2024 that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (Rule 10b5-1 trading arrangement). Name and Title Date of Adoption Duration of Rule 10b5-1 Trading Arrangement Aggregate Number of Securities to Be Purchased or Sold James Mollica, Vice President, Finance and Sales Operations and former Interim Chief Financial Officer November 28, 2023 Until June 28, 2024, or such earlier date upon which all transactions are completed or expire without execution Sale of up to 4,381 shares |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
James Mollica [Member] | |
Trading Arrangements, by Individual | |
Name | James Mollica |
Title | Vice President, Finance and Sales Operations and former Interim Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | November 28, 2023 |
Arrangement Duration | 213 days |
Aggregate Available | 4,381,000 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Feb. 03, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | The Company has a 52-53 week fiscal year that ends on the Saturday closest to the last day in October. Fiscal 2024 is a 53-week fiscal year and fiscal 2023 was a 52-week fiscal year. The additional week in fiscal 2024 is included in the first quarter ended February 3, 2024. Therefore, the first quarter of fiscal 2024 included 14 weeks of operations and the first quarter of fiscal 2023 included 13 weeks of operations. |
Standards Implemented and Standards to be Implemented | Standards Implemented Acquired Contract Assets and Contract Liabilities In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities . Under this guidance (ASC 805-20-30-28), the acquirer should determine what contract assets and/or contract liabilities it would have recorded under ASC 606 (the revenue guidance) as of the acquisition date, as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. The recognition and measurement of those contract assets and contract liabilities will likely be comparable to what the acquiree has recorded on its books under ASC 606 as of the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2021-08 in the first quarter of fiscal 2024. Upon adoption, ASU 2021-08 did not have a material impact on the Company's financial position and results of operations. Standards to be Implemented Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances the disclosure requirements for reportable segments. ASU 2023-07 requires segment disclosure to include significant segment expense categories and amounts, and qualitative detail of other segment items. Disclosure of multiple measures of segment profit and loss may also be reported. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial position and results of operations. Income Taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires the disaggregation of information in existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact, if any, adoption will have on its financial position and results of operations. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive (loss) income, net of tax | The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first three months of fiscal 2024. Foreign currency translation adjustment Unrealized holding gains (losses) on derivatives Pension plans Total October 28, 2023 $ (72,544) $ (102,043) $ (13,715) $ (188,302) Other comprehensive income before reclassifications 385 6,795 (1,904) 5,276 Amounts reclassified out of other comprehensive income — 2,699 516 3,215 Tax effects — (1,474) — (1,474) Other comprehensive income 385 8,020 (1,388) 7,017 February 3, 2024 $ (72,159) $ (94,023) $ (15,103) $ (181,285) |
Schedule of reclassification out of accumulated other comprehensive (loss) income | The amounts reclassified out of AOCI into the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Shareholders' Equity with presentation location during each period were as follows: Three Months Ended Comprehensive (Loss) Income Component February 3, 2024 January 28, 2023 Location Unrealized holding (gains) losses on derivatives: Currency forwards $ (71) $ (1,059) Cost of sales (69) (447) Research and development (891) (1,297) Selling, marketing, general and administrative Interest rate derivatives 3,730 3,727 Interest expense 2,699 924 Total before tax (848) (802) Tax $ 1,851 $ 122 Net of tax Amortization of pension components included in the computation of net periodic pension cost: Actuarial losses $ 516 $ 370 Net of tax Total amounts reclassified out of AOCI, net of tax $ 2,367 $ 492 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended February 3, 2024 January 28, 2023 Net income $ 462,727 $ 961,474 Basic shares: Weighted-average shares outstanding 495,765 507,121 Earnings per common share basic: $ 0.93 $ 1.90 Diluted shares: Weighted-average shares outstanding 495,765 507,121 Assumed exercise of common stock equivalents 2,976 4,063 Weighted-average common and common equivalent shares 498,741 511,184 Earnings per common share diluted: $ 0.93 $ 1.88 Anti-dilutive shares related to: Outstanding stock-based awards 214 322 |
Special Charges, Net (Tables)
Special Charges, Net (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of accrued restructuring | Liabilities related to special charges, net are included in Accrued liabilities and Other non-current liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below: Accrued Special Charges Global Repositioning Actions Q4 2023 Plan Balance at October 28, 2023 $ 36,981 $ 110,446 Employee severance and benefit costs — 11,977 Severance and benefit payments (4,420) (87,013) Balance at February 3, 2024 $ 32,561 $ 35,410 Accrued liabilities $ 9,425 $ 35,410 Other non-current liabilities $ 23,136 $ — |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. As data systems for capturing and tracking this data and the Company's methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. Three Months Ended February 3, 2024 January 28, 2023 Revenue % of Revenue* Y/Y% Revenue % of Revenue* Industrial $ 1,196,832 48 % (31) % $ 1,740,780 54 % Automotive 739,158 29 % 9 % 680,637 21 % Communications 302,573 12 % (37) % 477,266 15 % Consumer 274,141 11 % (22) % 350,947 11 % Total revenue $ 2,512,704 100 % (23) % $ 3,249,630 100 % * The sum of the individual percentages may not equal the total due to rounding. Revenue by Sales Channel The following table summarizes revenue by channel. The Company sells its products globally through a direct sales force, third party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time. Three Months Ended February 3, 2024 January 28, 2023 Channel Revenue % of Revenue* Revenue % of Revenue* Distributors $ 1,535,210 61 % $ 2,011,323 62 % Direct customers 939,975 37 % 1,195,534 37 % Other 37,519 1 % 42,773 1 % Total revenue $ 2,512,704 100 % $ 3,249,630 100 % * The sum of the individual percentages may not equal the total due to rounding. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities | The tables below, set forth by level, present the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of February 3, 2024 and October 28, 2023. The tables exclude cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. As of February 3, 2024 and October 28, 2023, the Company held $721.4 million and $642.1 million, respectively, of cash that is excluded from the tables below. February 3, 2024 Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 512,453 $ — $ 512,453 Corporate obligations (1) — 69,755 69,755 Other assets: Forward foreign currency exchange contracts (2) $ — $ 4,044 4,044 Deferred compensation plan investments 89,267 — 89,267 Total assets measured at fair value $ 601,720 $ 73,799 $ 675,519 Liabilities Forward foreign currency exchange contracts (2) $ — $ 11,282 $ 11,282 Interest rate derivatives (3) — 37,074 37,074 Total liabilities measured at fair value $ — $ 48,356 $ 48,356 (1) The amortized cost of the Company's investments classified as available-for-sale as of February 3, 2024 was $69.8 million. (2) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company's master netting arrangements. (3) The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements. October 28, 2023 Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 315,980 $ — $ 315,980 Other assets: Forward foreign currency exchange contracts (1) — 1,940 1,940 Deferred compensation plan investments 78,246 — 78,246 Total assets measured at fair value $ 394,226 $ 1,940 $ 396,166 Liabilities Forward foreign currency exchange contracts (1) $ — $ 13,515 $ 13,515 Interest rate derivatives (2) — 81,602 81,602 Total liabilities measured at fair value $ — $ 95,117 $ 95,117 (1) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company's master netting arrangements. (2) The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements. |
Schedule of debt | The table below presents the estimated fair values of certain financial instruments not recorded at fair value on a recurring basis. Given the short tenure of the Company's commercial paper notes, the carrying value of the outstanding commercial paper notes approximates the fair values, and therefore, are excluded from the table below ($544.4 million and $547.2 million as of February 3, 2024 and October 28, 2023, respectively). The fair values of the senior unsecured notes are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy. February 3, 2024 October 28, 2023 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value 2024 Notes, due October 2024 $ 500,000 $ 500,183 $ 500,000 $ 499,473 2025 Notes, due April 2025 400,000 391,161 400,000 385,231 2026 Notes, due December 2026 900,000 874,033 900,000 851,023 2027 Notes, due June 2027 440,212 420,472 440,212 408,595 2028 Notes, due October 2028 750,000 659,548 750,000 628,999 2031 Notes, due October 2031 1,000,000 836,328 1,000,000 773,404 2032 Notes, due October 2032 300,000 286,680 300,000 269,828 2036 Notes, due December 2036 144,278 128,570 144,278 118,554 2041 Notes, due October 2041 750,000 545,101 750,000 479,078 2045 Notes, due December 2045 332,587 326,610 332,587 292,248 2051 Notes, due October 2051 1,000,000 685,693 1,000,000 590,666 Total senior unsecured notes $ 6,517,077 $ 5,654,379 $ 6,517,077 $ 5,297,099 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of hedging instruments | The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s Condensed Consolidated Balance Sheets as of February 3, 2024 and October 28, 2023 were as follows: Fair Value At Balance Sheet Location February 3, 2024 October 28, 2023 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 1,724 $ 471 Forward foreign currency exchange contracts Accrued liabilities $ 4,637 $ 9,897 Fair Value At Balance Sheet Location February 3, 2024 October 28, 2023 Undesignated hedges related to forward foreign currency exchange contracts Prepaid expenses and other current assets $ 2,320 $ 1,469 Undesignated hedges related to forward foreign currency exchange contracts Accrued liabilities $ 6,645 $ 3,618 |
Schedule of interest rate derivatives | The gain or loss on the Company's interest rate swap transactions attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows: February 3, 2024 Balance Sheet Location Loss on Swaps Gain on Note Accrued liabilities $ 37,074 $ — Long-term debt $ — $ 37,074 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at February 3, 2024 and October 28, 2023 were as follows: February 3, 2024 October 28, 2023 Raw materials $ 125,131 $ 128,142 Work in process 1,108,667 1,125,819 Finished goods 319,423 388,253 Total inventories $ 1,553,221 $ 1,642,214 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) shares in Millions, $ in Billions | Feb. 03, 2024 USD ($) shares |
Stockholders' Equity Note [Abstract] | |
Stock repurchase program, number of shares authorized to be repurchased (in shares) | shares | 206.2 |
Stock repurchase program, authorized amount | $ 14.7 |
Stock repurchase program, remaining authorized repurchase amount | $ 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Changes By Component and Tax Effect (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 35,565,122 | |
Other comprehensive income before reclassifications | 5,276 | |
Amounts reclassified out of other comprehensive income | 3,215 | |
Tax effects | (1,474) | |
Other comprehensive income | 7,017 | $ 28,418 |
Ending balance | 35,548,073 | |
AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (188,302) | (198,152) |
Other comprehensive income | 7,017 | 28,418 |
Ending balance | (181,285) | $ (169,734) |
Foreign currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (72,544) | |
Other comprehensive income before reclassifications | 385 | |
Amounts reclassified out of other comprehensive income | 0 | |
Tax effects | 0 | |
Other comprehensive income | 385 | |
Ending balance | (72,159) | |
Unrealized holding gains (losses) on derivatives | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (102,043) | |
Other comprehensive income before reclassifications | 6,795 | |
Amounts reclassified out of other comprehensive income | 2,699 | |
Tax effects | (1,474) | |
Other comprehensive income | 8,020 | |
Ending balance | (94,023) | |
Pension plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (13,715) | |
Other comprehensive income before reclassifications | (1,904) | |
Amounts reclassified out of other comprehensive income | 516 | |
Tax effects | 0 | |
Other comprehensive income | (1,388) | |
Ending balance | $ (15,103) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $ 1,038,763 | $ 1,125,289 |
Research and development | 391,427 | 414,095 |
Selling, marketing, general and administrative | 290,078 | 326,284 |
Interest expense | 77,141 | 60,453 |
Total before tax | (513,418) | (1,073,473) |
Tax | 50,691 | 111,999 |
Net of tax | (462,727) | (961,474) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 2,367 | 492 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized holding (gains) losses on derivatives: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 2,699 | 924 |
Tax | (848) | (802) |
Net of tax | 1,851 | 122 |
Reclassification out of Accumulated Other Comprehensive Income | Pension plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 516 | 370 |
Reclassification out of Accumulated Other Comprehensive Income | Currency forwards | Unrealized holding (gains) losses on derivatives: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | (71) | (1,059) |
Research and development | (69) | (447) |
Selling, marketing, general and administrative | (891) | (1,297) |
Reclassification out of Accumulated Other Comprehensive Income | Interest rate derivatives | Unrealized holding (gains) losses on derivatives: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ 3,730 | $ 3,727 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Earnings per share | ||
Net income | $ 462,727 | $ 961,474 |
Basic shares: | ||
Weighted-average shares outstanding (in shares) | 495,765 | 507,121 |
Earnings per common share, basic (in dollars per share) | $ 0.93 | $ 1.90 |
Diluted shares: | ||
Assumed exercise of common stock equivalents (in shares) | 2,976 | 4,063 |
Weighted-average common and common equivalent shares (in shares) | 498,741 | 511,184 |
Earnings per common share, diluted (in dollars per share) | $ 0.93 | $ 1.88 |
Anti-dilutive shares related to: | ||
Outstanding stock-based awards (in shares) | 214 | 322 |
Special Charges, Net (Details)
Special Charges, Net (Details) $ in Thousands | 3 Months Ended |
Feb. 03, 2024 USD ($) | |
Global Repositioning Actions | |
Restructuring Reserve [Roll Forward] | |
Accrued restructuring, beginning balance | $ 36,981 |
Employee severance and benefit costs | 0 |
Severance and benefit payments | (4,420) |
Accrued restructuring, ending balance | 32,561 |
Accrued liabilities | 9,425 |
Other non-current liabilities | 23,136 |
Q4 2023 Plan | |
Restructuring Reserve [Roll Forward] | |
Accrued restructuring, beginning balance | 110,446 |
Employee severance and benefit costs | 11,977 |
Severance and benefit payments | (87,013) |
Accrued restructuring, ending balance | 35,410 |
Accrued liabilities | 35,410 |
Other non-current liabilities | $ 0 |
Revenue - Revenue Trends by Seg
Revenue - Revenue Trends by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 2,512,704 | $ 3,249,630 |
Percent of revenue (as percent) | 100% | 100% |
Year over year change (as percent) | (23.00%) | |
Industrial | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 1,196,832 | $ 1,740,780 |
Percent of revenue (as percent) | 48% | 54% |
Year over year change (as percent) | (31.00%) | |
Automotive | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 739,158 | $ 680,637 |
Percent of revenue (as percent) | 29% | 21% |
Year over year change (as percent) | 9% | |
Communications | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 302,573 | $ 477,266 |
Percent of revenue (as percent) | 12% | 15% |
Year over year change (as percent) | (37.00%) | |
Consumer | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 274,141 | $ 350,947 |
Percent of revenue (as percent) | 11% | 11% |
Year over year change (as percent) | (22.00%) |
Revenue - Revenue by Sales Chan
Revenue - Revenue by Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 2,512,704 | $ 3,249,630 |
Percent of revenue (as percent) | 100% | 100% |
Distributors | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 1,535,210 | $ 2,011,323 |
Percent of revenue (as percent) | 61% | 62% |
Direct customers | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 939,975 | $ 1,195,534 |
Percent of revenue (as percent) | 37% | 37% |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 37,519 | $ 42,773 |
Percent of revenue (as percent) | 1% | 1% |
Fair Value - Textual (Details)
Fair Value - Textual (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Oct. 28, 2023 |
Fair Value Disclosures [Abstract] | ||
Cash | $ 721,400 | $ 642,100 |
Commercial paper notes | $ 544,444 | $ 547,224 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Oct. 28, 2023 |
Liabilities | ||
Available-for-sale, amortized cost | $ 69,800 | |
Recurring | ||
Other assets: | ||
Forward foreign currency exchange contracts | 4,044 | $ 1,940 |
Deferred compensation plan investments | 89,267 | 78,246 |
Total assets measured at fair value | 675,519 | 396,166 |
Liabilities | ||
Forward foreign currency exchange contracts | 11,282 | 13,515 |
Interest rate derivatives | 37,074 | 81,602 |
Total liabilities measured at fair value | 48,356 | 95,117 |
Recurring | Government and institutional money market funds | ||
Available-for-sale: | ||
Cash equivalents available for sale | 512,453 | 315,980 |
Recurring | Corporate obligations | ||
Available-for-sale: | ||
Cash equivalents available for sale | 69,755 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Other assets: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Deferred compensation plan investments | 89,267 | 78,246 |
Total assets measured at fair value | 601,720 | 394,226 |
Liabilities | ||
Forward foreign currency exchange contracts | 0 | 0 |
Interest rate derivatives | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and institutional money market funds | ||
Available-for-sale: | ||
Cash equivalents available for sale | 512,453 | 315,980 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations | ||
Available-for-sale: | ||
Cash equivalents available for sale | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Other assets: | ||
Forward foreign currency exchange contracts | 4,044 | 1,940 |
Deferred compensation plan investments | 0 | 0 |
Total assets measured at fair value | 73,799 | 1,940 |
Liabilities | ||
Forward foreign currency exchange contracts | 11,282 | 13,515 |
Interest rate derivatives | 37,074 | 81,602 |
Total liabilities measured at fair value | 48,356 | 95,117 |
Recurring | Significant Other Observable Inputs (Level 2) | Government and institutional money market funds | ||
Available-for-sale: | ||
Cash equivalents available for sale | 0 | $ 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Available-for-sale: | ||
Cash equivalents available for sale | $ 69,755 |
Fair Value - Debt (Details)
Fair Value - Debt (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Oct. 28, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | $ 6,517,077 | $ 6,517,077 |
Fair Value | 5,654,379,000 | 5,297,099 |
Senior notes | 2024 Notes, due October 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 500,000 | 500,000 |
Fair Value | 500,183,000 | 499,473 |
Senior notes | 2025 Notes, due April 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 400,000 | 400,000 |
Fair Value | 391,161,000 | 385,231 |
Senior notes | 2026 Notes, due December 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 900,000 | 900,000 |
Fair Value | 874,033,000 | 851,023 |
Senior notes | 2027 Notes, due June 2027 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 440,212 | 440,212 |
Fair Value | 420,472,000 | 408,595 |
Senior notes | 2028 Notes, due October 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 750,000 | 750,000 |
Fair Value | 659,548,000 | 628,999 |
Senior notes | 2031 Notes, due October 2031 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 1,000,000 | 1,000,000 |
Fair Value | 836,328,000 | 773,404 |
Senior notes | 2032 Notes, due October 2032 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 300,000 | 300,000 |
Fair Value | 286,680,000 | 269,828 |
Senior notes | 2036 Notes, due December 2036 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 144,278 | 144,278 |
Fair Value | 128,570,000 | 118,554 |
Senior notes | 2041 Notes, due October 2041 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 750,000 | 750,000 |
Fair Value | 545,101,000 | 479,078 |
Senior notes | 2045 Notes, due December 2045 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 332,587 | 332,587 |
Fair Value | 326,610,000 | 292,248 |
Senior notes | 2051 Notes, due October 2051 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal Amount Outstanding | 1,000,000 | 1,000,000 |
Fair Value | $ 685,693,000 | $ 590,666 |
Derivatives - Textual (Details)
Derivatives - Textual (Details) - Forward foreign currency exchange contract - USD ($) $ in Millions | Feb. 03, 2024 | Oct. 28, 2023 |
Designated Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 292.7 | $ 322.6 |
Undesignated Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 293.1 | $ 334.7 |
Derivatives - Forward Foreign C
Derivatives - Forward Foreign Currency Balance Sheet (Details) - Forward foreign currency exchange contracts - USD ($) $ in Thousands | Feb. 03, 2024 | Oct. 28, 2023 |
Designated Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign currency exchange contracts | $ 1,724 | $ 471 |
Designated Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign currency exchange contracts | 4,637 | 9,897 |
Undesignated Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign currency exchange contracts | 2,320 | 1,469 |
Undesignated Hedging Instrument | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign currency exchange contracts | $ 6,645 | $ 3,618 |
Derivatives - Interest Rate Der
Derivatives - Interest Rate Derivatives (Details) - Interest rate swap $ in Thousands | 3 Months Ended |
Feb. 03, 2024 USD ($) | |
Accrued liabilities | |
Derivatives, Fair Value [Line Items] | |
Loss on Swaps | $ 37,074 |
Gain on Note | 0 |
Long-term debt | |
Derivatives, Fair Value [Line Items] | |
Loss on Swaps | 0 |
Gain on Note | $ 37,074 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Oct. 28, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 125,131 | $ 128,142 |
Work in process | 1,108,667 | 1,125,819 |
Finished goods | 319,423 | 388,253 |
Total inventories | $ 1,553,221 | $ 1,642,214 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate (as percent) | 21% | 21% |
Maxim | Settlement with Taxing Authority | ||
Income Tax Contingency [Line Items] | ||
Decrease in unrealized tax benefits is reasonably possible | $ 136 |
Subsequent Events (Details)
Subsequent Events (Details) - Common Stock - Subsequent event $ / shares in Units, $ in Millions | Feb. 20, 2024 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Common stock cash dividends per share, declared (in dollars per share) | $ / shares | $ 0.92 |
Dividends | $ | $ 456.2 |