10-Q 1 adi-20220430.htm 10-Q adi-20220430
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File No. 1-7819
Analog Devices, Inc.
(Exact name of registrant as specified in its charter) 
Massachusetts 04-2348234
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
One Analog Way,Wilmington,MA 01887
(Address of principal executive offices) (Zip Code)
(781) 935-5565
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock $0.16 2/3 par value per shareADINasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No  
As of April 30, 2022 there were 519,806,028 shares of common stock of the registrant, $0.16 2/3 par value per share, outstanding.




PART I - FINANCIAL INFORMATION
 
ITEM 1.Financial Statements


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share amounts)

 Three Months EndedSix Months Ended
 April 30, 2022May 1, 2021April 30, 2022May 1, 2021
Revenue$2,972,064 $1,661,407 $5,656,357 $3,219,865 
Cost of sales1,027,544 524,770 2,309,840 1,037,857 
Gross margin1,944,520 1,136,637 3,346,517 2,182,008 
Operating expenses:
Research and development420,901 302,238 847,681 590,388 
Selling, marketing, general and administrative305,308 206,612 602,673 391,887 
Amortization of intangibles253,476 107,786 506,843 215,434 
Special charges, net46,674 311 106,402 749 
Total operating expenses1,026,359 616,947 2,063,599 1,198,458 
Operating income:918,161 519,690 1,282,918 983,550 
Nonoperating expense (income):
Interest expense49,548 43,066 101,512 85,545 
Interest income(563)(290)(781)(499)
Other, net(10,069)929 (20,613)(14,099)
Total nonoperating expense (income)38,916 43,705 80,118 70,947 
Income before income taxes879,245 475,985 1,202,800 912,603 
Provision for income taxes95,972 53,080 139,450 101,179 
Net income$783,273 $422,905 $1,063,350 $811,424 
Shares used to compute earnings per common share – basic522,370 368,823 523,831 369,013 
Shares used to compute earnings per common share – diluted526,264 372,418 528,203 372,762 
Basic earnings per common share$1.50 $1.15 $2.03 $2.20 
Diluted earnings per common share$1.49 $1.14 $2.01 $2.18 






See accompanying notes.
1




ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)
Three Months EndedSix Months Ended
April 30, 2022May 1, 2021April 30, 2022May 1, 2021
Net income$783,273 $422,905 $1,063,350 $811,424 
Foreign currency translation adjustments(17,868)(254)(22,472)8,025 
Change in fair value of derivative instruments designated as cash flow hedges (net of taxes of $258, $10,448, $248 and $17,109, respectively)
(3,757)35,428 (2,710)59,893 
Changes in pension plans, net actuarial loss and foreign currency translation adjustments (net of taxes of $91, $86, $187 and $172, respectively)
2,628 412 4,132 (1,372)
Other comprehensive (loss) income(18,997)35,586 (21,050)66,546 
Comprehensive income$764,276 $458,491 $1,042,300 $877,970 



















See accompanying notes.


2


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)

April 30, 2022October 30, 2021
ASSETS  
Current Assets
Cash and cash equivalents$1,737,733 $1,977,964 
Accounts receivable1,608,254 1,459,056 
Inventories1,075,297 1,200,610 
Prepaid expenses and other current assets212,905 740,687 
Total current assets4,634,189 5,378,317 
Non-current Assets
Net property, plant and equipment2,094,148 1,979,051 
Goodwill26,923,756 26,918,470 
Intangible assets, net14,258,728 15,267,170 
Deferred tax assets2,325,317 2,267,269 
Other assets564,514 511,794 
Total non-current assets46,166,463 46,943,754 
TOTAL ASSETS$50,800,652 $52,322,071 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable$451,443 $443,434 
Income taxes payable337,362 332,685 
Debt, current 516,663 
Accrued liabilities1,537,407 1,477,530 
Total current liabilities2,326,212 2,770,312 
Non-current Liabilities
Long-term debt6,253,215 6,253,212 
Deferred income taxes3,873,084 3,938,830 
Income taxes payable698,525 811,337 
Other non-current liabilities549,834 555,838 
Total non-current liabilities11,374,658 11,559,217 
Shareholders’ Equity
Preferred stock, $1.00 par value, 471,934 shares authorized, none outstanding
  
Common stock, $0.16 2/3 par value, 1,200,000,000 shares authorized, 519,806,028 shares outstanding (525,330,672 on October 30, 2021)
86,636 87,554 
Capital in excess of par value29,400,284 30,574,237 
Retained earnings7,820,477 7,517,316 
Accumulated other comprehensive loss(207,615)(186,565)
Total shareholders’ equity37,099,782 37,992,542 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$50,800,652 $52,322,071 






See accompanying notes.
3


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)

Three Months Ended April 30, 2022
Capital inAccumulated
Other
 Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, JANUARY 29, 2022
523,315 $87,221 $30,093,961 $7,434,748 $(188,618)
Net income783,273 
Dividends declared and paid - $0.76 per share
(397,544)
Issuance of stock under stock plans and other1,404 234 11,348 
Stock-based compensation expense70,996 
Other comprehensive loss(18,997)
Common stock repurchased(4,913)(819)(776,021)
BALANCE, APRIL 30, 2022
519,806 $86,636 $29,400,284 $7,820,477 $(207,615)
Six Months Ended April 30, 2022
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 30, 2021
525,331 $87,554 $30,574,237 $7,517,316 $(186,565)
Net income1,063,350 
Dividends declared and paid - $1.45 per share
(760,189)
Issuance of stock under stock plans and other1,983 332 19,722 
Stock-based compensation expense157,935 
Other comprehensive loss(21,050)
Common stock repurchased(7,508)(1,250)(1,351,610)
BALANCE, APRIL 30, 2022
519,806 $86,636 $29,400,284 $7,820,477 $(207,615)















See accompanying notes.




4


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)
Three Months Ended May 1, 2021
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, JANUARY 30, 2021368,894 $61,484 $4,849,185 $7,395,578 $(218,501)
Net income422,905 
Dividends declared and paid - $0.69 per share
(254,429)
Issuance of stock under stock plans and other1,155 192 23,560 
Stock-based compensation expense40,358 
Other comprehensive income35,586 
Common stock repurchased(1,222)(204)(188,610)
BALANCE, MAY 1, 2021
368,827 $61,472 $4,724,493 $7,564,054 $(182,915)
Six Months Ended May 1, 2021
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 31, 2020369,485 $61,582 $4,949,586 $7,236,238 $(249,461)
Net income811,424 
Dividends declared and paid - $1.31 per share
(483,608)
Issuance of stock under stock plans and other1,644 274 43,398 
Stock-based compensation expense76,996 
Other comprehensive income66,546 
Common stock repurchased(2,302)(384)(345,487)
BALANCE, MAY 1, 2021
368,827 $61,472 $4,724,493 $7,564,054 $(182,915)















See accompanying notes.
5



ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
  
Six Months Ended
 April 30, 2022May 1, 2021
Cash flows from operating activities:
Net income$1,063,350 $811,424 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation137,016 108,775 
Amortization of intangibles1,008,900 290,745 
Stock-based compensation expense157,935 76,996 
Cost of goods sold for inventory acquired271,396  
Deferred income taxes(122,992)(48,292)
Non-cash operating lease costs(27,697)8,040 
Other(10,225)(12,122)
Changes in operating assets and liabilities(399,463)(71,263)
Total adjustments1,014,870 352,879 
Net cash provided by operating activities2,078,220 1,164,303 
Cash flows from investing activities:
Additions to property, plant and equipment(229,912)(126,558)
Other13,010 (9,210)
Net cash used for investing activities(216,902)(135,768)
Cash flows from financing activities:
Early termination of debt(519,116) 
Dividend payments to shareholders(760,189)(483,608)
Repurchase of common stock(852,860)(345,871)
Proceeds from employee stock plans20,054 43,672 
Other26,657 2,399 
Net cash used for financing activities(2,085,454)(783,408)
Effect of exchange rate changes on cash(16,095)4,229 
Net (decrease) increase in cash and cash equivalents(240,231)249,356 
Cash and cash equivalents at beginning of period1,977,964 1,055,860 
Cash and cash equivalents at end of period$1,737,733 $1,305,216 

See accompanying notes.
6


ANALOG DEVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED APRIL 30, 2022 (UNAUDITED)
(all tabular amounts in thousands except per share amounts and percentages)

Note 1 – 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 30, 2021 (fiscal 2021) 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 October 29, 2022 (fiscal 2022) 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. Certain amounts reported in previous periods have been reclassified to conform to the fiscal 2022 presentation.
On August 26, 2021 (Acquisition Date), the Company completed the acquisition of Maxim Integrated Products, Inc. (Maxim), an independent manufacturer of innovative analog and mixed-signal products and technologies. The acquisition of Maxim is referred to as the Acquisition. The consolidated financial statements included in this Quarterly Report on Form 10-Q include the financial results of Maxim prospectively from the Acquisition Date. See Note 14, Acquisitions, in these Notes to Condensed Consolidated Financial Statements for additional information.
Note 2 – Shareholders' Equity
In fiscal 2021, the Company entered into accelerated share repurchase agreements (ASR) with third party financial institutions, paid $2.5 billion and received an initial delivery of 12.3 million shares of common stock, which represented approximately 80% of the notional amount of the ASR. As of October 30, 2021, the Company recorded the remaining 20%, or $500.0 million, within Prepaid expenses and other current assets on the Consolidated Balance Sheet, which was utilized during the first quarter of fiscal 2022. During the first quarter of fiscal 2022, the ASR was completed and an additional 2.1 million shares of common stock were received as final settlement of the ASR. In total, the Company repurchased 14.4 million shares under the ASR at an average price per share of $173.77.
As of April 30, 2022, the Company had repurchased a total of approximately 178.5 million shares of its common stock for approximately $10.0 billion under the Company's share repurchase program. As of April 30, 2022, an additional $6.6 billion remains available for repurchase of shares under the current authorized program. The Company also repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units/awards or the exercise of stock options. Future repurchases of common stock will be dependent upon the Company's financial position, results of operations, outlook, liquidity and other factors deemed relevant by the Company.
Note 3 – Accumulated Other Comprehensive (Loss) Income
The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first six months of fiscal 2022.
Foreign currency translation adjustmentUnrealized holding gains (losses) on derivativesPension plansTotal
October 30, 2021$(25,795)$(123,754)$(37,016)$(186,565)
Other comprehensive (loss) income before reclassifications(22,472)(20,728)3,185 (40,015)
Amounts reclassified out of other comprehensive income 18,266 1,134 19,400 
Tax effects (248)(187)(435)
Other comprehensive (loss) income(22,472)(2,710)4,132 (21,050)
April 30, 2022$(48,267)$(126,464)$(32,884)$(207,615)
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:
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Three Months EndedSix Months Ended
Comprehensive Income ComponentApril 30, 2022May 1, 2021April 30, 2022May 1, 2021Location
Unrealized holding (gains) losses on derivatives
Currency forwards $2,113 $(1,363)$3,864 $(3,350)Cost of sales
1,373 (791)2,583 (1,855)Research and development
2,485 (606)4,357 (1,824)Selling, marketing, general and administrative
Interest rate derivatives3,731 464 7,462 928 Interest expense
9,702 (2,296)18,266 (6,101)Total before tax
(1,485)329 (2,786)533 Tax
$8,217 $(1,967)$15,480 $(5,568)Net of tax
Amortization of pension components included in the computation of net periodic pension cost
     Actuarial losses549 750 1,134 1,498 
(91)(86)(187)(172)Tax
$458 $664 $947 $1,326 Net of tax
Total amounts reclassified out of AOCI, net of tax$8,675 $(1,303)$16,427 $(4,242)
Note 4 – Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
 Three Months EndedSix Months Ended
 April 30, 2022May 1, 2021April 30, 2022May 1, 2021
Net Income$783,273 $422,905 $1,063,350 $811,424 
Basic shares:
Weighted-average shares outstanding522,370 368,823 523,831 369,013 
Earnings per common share basic:$1.50 $1.15 $2.03 $2.20 
Diluted shares:
Weighted-average shares outstanding522,370 368,823 523,831 369,013 
Assumed exercise of common stock equivalents3,894 3,595 4,372 3,749 
Weighted-average common and common equivalent shares526,264 372,418 528,203 372,762 
Earnings per common share diluted:$1.49 $1.14 $2.01 $2.18 
Anti-dilutive shares related to:
Outstanding stock-based awards738 622 461 430 

8


Note 5 – Special Charges, net
Liabilities related to special charges, net are included in Accrued liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below:
Accrued Special ChargesClosure of Manufacturing Facilities Global Repositioning Actions
Balance at October 30, 2021$25,774 $21,065 
Employee severance and benefit costs75 44,411 
Facility closure costs6,513  
Severance and benefit payments(4,016)(25,776)
Facility closure cost payments (6,513) 
Effect of foreign currency on accrual (54)
Balance at January 29, 2022$21,833 $39,646 
Employee severance and benefit costs 39,610 
Facility closure costs4,287  
Severance and benefit payments(14,026)(25,608)
Facility closure cost payments(4,287) 
Effect of foreign currency on accrual (156)
Balance at April 30, 2022$7,807 $53,492 
Closure of Manufacturing Facilities
The Company recorded net special charges of $66.9 million on a cumulative basis through April 30, 2022 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation.
The special charges include severance and fringe benefit costs, in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations, one-time termination benefits for the impacted manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees and other exit costs. These one-time termination benefits are being recognized over the future service period required for employees to earn these benefits.
During fiscal 2021, the Company ceased production at its Hillview wafer fabrication facility located in Milpitas, California and determined that this facility met the held for sale criteria specified in Accounting Standards Codification (ASC) 360. See Note 6, Property, Plant and Equipment in these Notes to Condensed Consolidated Financial Statements for amounts reclassified.
During fiscal 2021, the Company completed the sale of its facility and certain equipment in Singapore, which were previously classified as held for sale, for approximately $35.7 million, which resulted in a gain of $13.6 million. Concurrent with the sale, the Company entered into a short-term lease agreement to leaseback a portion of the facility while it completes its transition of related operations to its facilities in Penang, Malaysia and the Philippines, as well as to its outsourced assembly and test partners.
Global Repositioning Actions
The Company recorded net special charges of $316.4 million on a cumulative basis through April 30, 2022, as part of the integration of the Acquisition and continued organizational initiatives to better align its global workforce with the Company's long-term strategic plan. Special charges of $95.5 million recognized in the first six months of fiscal 2022 primarily consisted of $103.8 million of severance and benefit costs as well as charges recorded from the acceleration of equity awards in connection with the termination of certain employees in manufacturing, engineering and SMG&A roles at sites assumed related to the Acquisition and various locations throughout the world. These charges were partially offset by a gain of $8.3 million recognized upon the sale of a business.
Note 6 – Property, Plant and Equipment
During fiscal 2021, the Company ceased production at its Hillview wafer fabrication facility located in Milpitas, California and determined that this facility met the held for sale criteria specified in ASC 360. As of April 30, 2022, Prepaid expenses and other current assets includes the following assets held for sale recorded at the fair value of the asset group, less costs to sell:
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Land and buildings$40,070 
Less accumulated depreciation and amortization(13,634)
Net property, plant and equipment reclassified to Prepaid expenses and other current assets$26,436 
Note 7 – 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
 April 30, 2022May 1, 2021
 Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$1,501,111 51 %54 %$975,706 59 %
Automotive633,926 21 %145 %258,943 16 %
Communications473,074 16 %70 %278,650 17 %
Consumer363,953 12 %146 %148,108 9 %
Total revenue$2,972,064 100 %79 %$1,661,407 100 %
Six Months Ended
April 30, 2022May 1, 2021
Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$2,847,838 50 %55 %$1,833,198 57 %
Automotive1,184,927 21 %134 %505,748 16 %
Communications885,450 16 %58 %560,904 17 %
Consumer738,142 13 %131 %320,015 10 %
Total revenue$5,656,357 100 %76 %$3,219,865 100 %
* 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 (OEMs). Other customers include the U.S. government, government prime contractors and certain commercial
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customers for which revenue is recorded over time.
Three Months Ended
April 30, 2022May 1, 2021
ChannelRevenue% of Revenue*Revenue% of Revenue*
   Distributors$1,849,988 62 %$1,092,928 66 %
   Direct customers1,091,710 37 %546,555 33 %
   Other30,366 1 %21,924 1 %
Total revenue$2,972,064 100 %$1,661,407 100 %
Six Months Ended
April 30, 2022May 1, 2021
ChannelRevenue% of Revenue*Revenue% of Revenue*
Distributors$3,503,042 62 %$2,039,314 63 %
Direct customers2,094,891 37 %1,136,011 35 %
Other58,424 1 %44,540 1 %
Total revenue$5,656,357 100 %$3,219,865 100 %
* The sum of the individual percentages may not equal the total due to rounding.
Note 8 – Fair Value
The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.
The tables below, set forth by level, presents the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of April 30, 2022 and October 30, 2021. 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 April 30, 2022 and October 30, 2021, the Company held $1,030.1 million and $1,315.0 million, respectively, of cash that was
11


excluded from the tables below.
 April 30, 2022
 
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$577,683 $ $577,683 
Corporate obligations (1) 129,941 129,941 
Other assets:
Deferred compensation plan investments66,390  66,390 
Total assets measured at fair value$644,073 $129,941 $774,014 
Liabilities
Forward foreign currency exchange contracts (2)$ $22,524 $22,524 
Total liabilities measured at fair value$ $22,524 $22,524 
(1)The amortized cost of the Company’s investments classified as available-for-sale as of April 30, 2022 was $130.0 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.
 October 30, 2021
 
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$662,997 $ $662,997 
Other assets:
Deferred compensation plan investments71,301  71,301 
Total assets measured at fair value$734,298 $ $734,298 
Liabilities
Forward foreign currency exchange contracts (1)$ $8,085 $8,085 
Total liabilities measured at fair value$ $8,085 $8,085 
(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.

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
Cash equivalents — These investments are adjusted to fair value based on quoted market prices or are determined using a yield curve model based on current market rates.
Deferred compensation plan investments — The fair value of these mutual fund, money market fund and equity investments are based on quoted market prices.
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Forward foreign currency exchange contracts — The estimated fair value of forward foreign currency exchange contracts, which includes derivatives that are accounted for as cash flow hedges and those that are not designated as cash flow hedges, is based on the estimated amount the Company would receive if it sold these agreements at the reporting date taking into consideration current interest rates as well as the creditworthiness of the counterparty for assets and the Company’s creditworthiness for liabilities. The fair value of these instruments is based upon valuation models using current market information such as strike price, spot rate, maturity date and volatility.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis
Held for sale assets —The Company has classified the assets held for sale at fair value, which is determined based on the use of appraisals and input from market participants, and as such is considered a Level 3 fair value measurement. See Note 6, Property, Plant and Equipment, in these Notes to Condensed Consolidated Financial Statements for more information related to held for sale assets.
Debt — The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis. 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.
April 30, 2022October 30, 2021
Principal Amount OutstandingFair Value Principal Amount Outstanding Fair Value
Maxim 2023 Notes, due March 2023$ $ $500,000 $520,236 
2024 Notes, due October 2024500,000 496,904 500,000 500,482 
2025 Notes, due April 2025400,000 394,337 400,000 423,265 
2026 Notes, due December 2026900,000 895,250 900,000 986,243 
Maxim 2027 Notes, due June 2027500,000 484,078 500,000 542,942 
2028 Notes, due October 2028750,000 655,130 750,000 743,109 
2031 Notes, due October 20311,000,000 854,753 1,000,000 996,702 
2036 Notes, due December 2036144,278 143,752 144,278 176,960 
2041 Notes, due October 2041750,000 595,806 750,000 758,246 
2045 Notes, due December 2045332,587 365,491 332,587 469,592 
2051 Notes, due October 20511,000,000 772,751 1,000,000 1,029,830 
Total debt$