ANALOG DEVICES INC [ADI] Filings

10-Q 1 adi-20220430.htm 10-Q adi-20220430

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


☐			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,

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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.16 2/3 par value per share	ADI	Nasdaq 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 Ended				Six Months Ended
	April 30, 2022		May 1, 2021		April 30, 2022		May 1, 2021
Revenue	$	2,972,064	$	1,661,407	$	5,656,357	$	3,219,865
Cost of sales	1,027,544		524,770		2,309,840		1,037,857
Gross margin	1,944,520		1,136,637		3,346,517		2,182,008
Operating expenses:
Research and development	420,901		302,238		847,681		590,388
Selling, marketing, general and administrative	305,308		206,612		602,673		391,887
Amortization of intangibles	253,476		107,786		506,843		215,434
Special charges, net	46,674		311		106,402		749
Total operating expenses	1,026,359		616,947		2,063,599		1,198,458
Operating income:	918,161		519,690		1,282,918		983,550
Nonoperating expense (income):
Interest expense	49,548		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 taxes	879,245		475,985		1,202,800		912,603
Provision for income taxes	95,972		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 – basic	522,370		368,823		523,831		369,013
Shares used to compute earnings per common share – diluted	526,264		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.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)


	Three Months Ended				Six Months Ended
	April 30, 2022		May 1, 2021		April 30, 2022		May 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.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)


	April 30, 2022		October 30, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	1,737,733	$	1,977,964

Accounts receivable	1,608,254		1,459,056
Inventories	1,075,297		1,200,610



Prepaid expenses and other current assets	212,905		740,687
Total current assets	4,634,189		5,378,317
Non-current Assets

Net property, plant and equipment	2,094,148		1,979,051
Goodwill	26,923,756		26,918,470
Intangible assets, net	14,258,728		15,267,170
Deferred tax assets	2,325,317		2,267,269

Other assets	564,514		511,794
Total non-current assets	46,166,463		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 payable	337,362		332,685
Debt, current	—		516,663

Accrued liabilities	1,537,407		1,477,530
Total current liabilities	2,326,212		2,770,312
Non-current Liabilities
Long-term debt	6,253,215		6,253,212
Deferred income taxes	3,873,084		3,938,830

Income taxes payable	698,525		811,337

Other non-current liabilities	549,834		555,838
Total non-current liabilities	11,374,658		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 value	29,400,284		30,574,237
Retained earnings	7,820,477		7,517,316
Accumulated other comprehensive loss	(207,615)		(186,565)
Total shareholders’ equity	37,099,782		37,992,542
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	50,800,652	$	52,322,071

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)


	Three Months Ended April 30, 2022
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss








BALANCE, JANUARY 29, 2022	523,315	$	87,221	$	30,093,961	$	7,434,748	$	(188,618)

Net income						783,273
Dividends declared and paid - $0.76 per share						(397,544)

Issuance of stock under stock plans and other	1,404	234		11,348
Stock-based compensation expense				70,996
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 in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss
BALANCE, OCTOBER 30, 2021	525,331	$	87,554	$	30,574,237	$	7,517,316	$	(186,565)
Net income						1,063,350
Dividends declared and paid - $1.45 per share						(760,189)
Issuance of stock under stock plans and other	1,983	332		19,722
Stock-based compensation expense				157,935
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.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)


	Three Months Ended May 1, 2021
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss







BALANCE, JANUARY 30, 2021	368,894	$	61,484	$	4,849,185	$	7,395,578	$	(218,501)

Net income						422,905
Dividends declared and paid - $0.69 per share						(254,429)
Issuance of stock under stock plans and other	1,155	192		23,560
Stock-based compensation expense				40,358
Other comprehensive income								35,586
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 in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss
BALANCE, OCTOBER 31, 2020	369,485	$	61,582	$	4,949,586	$	7,236,238	$	(249,461)
Net income						811,424
Dividends declared and paid - $1.31 per share						(483,608)
Issuance of stock under stock plans and other	1,644	274		43,398
Stock-based compensation expense				76,996
Other comprehensive income								66,546
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.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Six Months Ended
	April 30, 2022		May 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:
Depreciation	137,016		108,775
Amortization of intangibles	1,008,900		290,745

Stock-based compensation expense	157,935		76,996


Cost of goods sold for inventory acquired	271,396		—
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 adjustments	1,014,870		352,879
Net cash provided by operating activities	2,078,220		1,164,303
Cash flows from investing activities:



Additions to property, plant and equipment	(229,912)		(126,558)



Other	13,010		(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 plans	20,054		43,672

Other	26,657		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 period	1,977,964		1,055,860
Cash and cash equivalents at end of period	$	1,737,733	$	1,305,216

See accompanying notes.

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 adjustment		Unrealized holding gains (losses) on derivatives		Pension plans		Total
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:


	Three Months Ended				Six Months Ended
Comprehensive Income Component	April 30, 2022		May 1, 2021		April 30, 2022		May 1, 2021		Location
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 derivatives	3,731		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 losses	549		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 Ended				Six Months Ended
	April 30, 2022		May 1, 2021		April 30, 2022		May 1, 2021
Net Income	$	783,273	$	422,905	$	1,063,350	$	811,424



Basic shares:
Weighted-average shares outstanding	522,370		368,823		523,831		369,013
Earnings per common share basic:	$	1.50	$	1.15	$	2.03	$	2.20
Diluted shares:
Weighted-average shares outstanding	522,370		368,823		523,831		369,013
Assumed exercise of common stock equivalents	3,894		3,595		4,372		3,749
Weighted-average common and common equivalent shares	526,264		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 awards	738		622		461		430

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 Charges	Closure of Manufacturing Facilities		Global Repositioning Actions















































Balance at October 30, 2021	$	25,774	$	21,065
Employee severance and benefit costs	75		44,411
Facility closure costs	6,513		—
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 costs	4,287		—
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:



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, 2022						May 1, 2021
	Revenue		% of Revenue*		Y/Y%		Revenue		% of Revenue*
Industrial	$	1,501,111	51	%	54	%	$	975,706	59	%
Automotive	633,926		21	%	145	%	258,943		16	%
Communications	473,074		16	%	70	%	278,650		17	%
Consumer	363,953		12	%	146	%	148,108		9	%


Total revenue	$	2,972,064	100	%	79	%	$	1,661,407	100	%


	Six Months Ended
	April 30, 2022						May 1, 2021
	Revenue		% of Revenue*		Y/Y%		Revenue		% of Revenue*
Industrial	$	2,847,838	50	%	55	%	$	1,833,198	57	%
Automotive	1,184,927		21	%	134	%	505,748		16	%
Communications	885,450		16	%	58	%	560,904		17	%
Consumer	738,142		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

customers for which revenue is recorded over time.


	Three Months Ended
	April 30, 2022				May 1, 2021
Channel	Revenue		% of Revenue*		Revenue		% of Revenue*
Distributors	$	1,849,988	62	%	$	1,092,928	66	%
Direct customers	1,091,710		37	%	546,555		33	%
Other	30,366		1	%	21,924		1	%
Total revenue	$	2,972,064	100	%	$	1,661,407	100	%

	Six Months Ended
	April 30, 2022				May 1, 2021
Channel	Revenue		% of Revenue*		Revenue		% of Revenue*
Distributors	$	3,503,042	62	%	$	2,039,314	63	%
Direct customers	2,094,891		37	%	1,136,011		35	%
Other	58,424		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

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 investments	66,390		—		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 investments	71,301		—		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.

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, 2022				October 30, 2021
	Principal Amount Outstanding		Fair Value		Principal Amount Outstanding		Fair Value
Maxim 2023 Notes, due March 2023	$	—	$	—	$	500,000	$	520,236
2024 Notes, due October 2024	500,000		496,904		500,000		500,482
2025 Notes, due April 2025	400,000		394,337		400,000		423,265
2026 Notes, due December 2026	900,000		895,250		900,000		986,243
Maxim 2027 Notes, due June 2027	500,000		484,078		500,000		542,942
2028 Notes, due October 2028	750,000		655,130		750,000		743,109
2031 Notes, due October 2031	1,000,000		854,753		1,000,000		996,702
2036 Notes, due December 2036	144,278		143,752		144,278		176,960
2041 Notes, due October 2041	750,000		595,806		750,000		758,246
2045 Notes, due December 2045	332,587		365,491		332,587		469,592
2051 Notes, due October 2051	1,000,000		772,751		1,000,000		1,029,830
Total debt	$