UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
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 Number
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of |
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(I.R.S. Employer |
incorporation or organization) |
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Identification No.) |
(Address of principal executive offices, including zip code)
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
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Name of exchange on which registered |
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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.
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).
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.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of November 21, 2024, there were
TABLE OF CONTENTS
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Item 1 |
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3 |
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3 |
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4 |
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7 |
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9 |
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Item 2 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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26 |
Item 3 |
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37 |
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Item 4 |
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38 |
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Item 1 |
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39 |
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Item 1A |
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39 |
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Item 2 |
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39 |
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Item 3 |
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39 |
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Item 4 |
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39 |
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Item 5 |
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39 |
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Item 6 |
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40 |
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41 |
TRADEMARKS
© 2024 NetApp, Inc. All Rights Reserved. No portions of this document may be reproduced without prior written consent of NetApp, Inc. NetApp, the NetApp logo, and the marks listed at http://www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.
2
PART I — FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)
NETAPP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
(Unaudited)
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October 25, |
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April 26, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Short-term investments |
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Accounts receivable |
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Inventories |
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Other current assets |
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Total current assets |
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Property and equipment, net |
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Goodwill |
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Purchased intangible assets, net |
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Other non-current assets |
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Total assets |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued expenses |
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Current portion of long-term debt |
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Short-term deferred revenue and financed unearned services revenue |
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Total current liabilities |
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Long-term debt |
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Other long-term liabilities |
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Long-term deferred revenue and financed unearned services revenue |
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Total liabilities |
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Stockholders' equity: |
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Common stock and additional paid-in capital, $ |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total stockholders' equity |
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Total liabilities and stockholders' equity |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
3
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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October 25, |
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October 27, |
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October 25, |
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October 27, |
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Net revenues: |
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Product |
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$ |
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$ |
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$ |
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$ |
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Services |
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Net revenues |
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Cost of revenues: |
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Cost of product |
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Cost of services |
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Total cost of revenues |
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Gross profit |
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Operating expenses: |
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Sales and marketing |
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Research and development |
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General and administrative |
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Restructuring charges |
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Acquisition-related expense |
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Total operating expenses |
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Income from operations |
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Other income, net |
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Income before income taxes |
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Provision for income taxes |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Net income per share: |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Shares used in net income per share calculations: |
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Basic |
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Diluted |
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See accompanying notes to condensed consolidated financial statements.
4
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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October 25, |
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October 27, |
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October 25, |
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October 27, |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive income (loss): |
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Foreign currency translation adjustments |
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( |
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( |
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Unrealized gains on available-for-sale securities: |
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Unrealized holding gains arising during the period |
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Unrealized gains (losses) on cash flow hedges: |
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Unrealized holding gains (losses) arising during the period |
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( |
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( |
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Reclassification adjustments for losses (gains) included in net income |
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( |
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( |
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Other comprehensive income (loss) |
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( |
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( |
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Comprehensive income |
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$ |
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$ |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
5
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
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Six Months Ended |
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October 25, |
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October 27, |
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Cash flows from operating activities: |
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Net income |
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$ |
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$ |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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Non-cash operating lease cost |
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Stock-based compensation |
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Deferred income taxes |
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( |
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( |
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Other items, net |
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( |
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Changes in assets and liabilities, net of acquisitions of businesses: |
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Accounts receivable |
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Inventories |
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( |
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Other operating assets |
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( |
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( |
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Accounts payable |
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Accrued expenses |
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( |
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Deferred revenue and financed unearned services revenue |
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( |
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( |
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Long-term taxes payable |
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( |
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( |
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Other operating liabilities |
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( |
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Net cash provided by operating activities |
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Cash flows from investing activities: |
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Purchases of investments |
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( |
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Maturities, sales and collections of investments |
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Purchases of property and equipment |
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( |
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( |
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Other investing activities, net |
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Net cash provided by (used in) investing activities |
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( |
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Cash flows from financing activities: |
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Proceeds from issuance of common stock under employee stock award plans |
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Payments for taxes related to net share settlement of stock awards |
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( |
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( |
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Repurchase of common stock |
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( |
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( |
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Repayments and extinguishment of debt |
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( |
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Dividends paid |
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( |
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( |
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Net cash used in financing activities |
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( |
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( |
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
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( |
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Net change in cash, cash equivalents and restricted cash |
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( |
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( |
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Cash, cash equivalents and restricted cash: |
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Beginning of period |
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End of period |
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$ |
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$ |
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See accompanying notes to condensed consolidated financial statements.
6
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In millions, except per share amounts)
(Unaudited)
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Three Months Ended October 25, 2024 |
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Accumulated |
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Common Stock and |
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Other |
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Additional Paid-in Capital |
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Retained |
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Comprehensive |
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Shares |
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Amount |
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Earnings |
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Loss |
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Total |
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Balances, July 26, 2024 |
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$ |
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$ |
— |
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$ |
( |
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$ |
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Net income |
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— |
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— |
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— |
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Other comprehensive income |
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— |
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— |
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— |
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Issuance of common stock under employee stock award plans, net of taxes |
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( |
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— |
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— |
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( |
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Repurchase of common stock |
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( |
) |
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( |
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( |
) |
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— |
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( |
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Excise tax on net stock repurchases |
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— |
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( |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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Cash dividends declared ($ |
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— |
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( |
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( |
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— |
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( |
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Balances, October 25, 2024 |
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$ |
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$ |
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$ |
( |
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$ |
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Three Months Ended October 27, 2023 |
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Accumulated |
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Common Stock and |
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Other |
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Additional Paid-in Capital |
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Retained |
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Comprehensive |
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Shares |
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Amount |
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Earnings |
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Loss |
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Total |
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Balances, July 28, 2023 |
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$ |
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$ |
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$ |
( |
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$ |
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Net income |
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— |
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— |
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— |
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Other comprehensive loss |
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— |
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— |
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— |
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( |
) |
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( |
) |
Issuance of common stock under employee stock award plans, net of taxes |
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( |
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— |
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— |
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( |
) |
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Repurchase of common stock |
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( |
) |
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( |
) |
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( |
) |
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— |
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( |
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Excise tax on net stock repurchases |
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— |
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( |
) |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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Modification of liability-classified awards |
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— |
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— |
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— |
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Cash dividends declared ($ |
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— |
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( |
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— |
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— |
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( |
) |
Balances, October 27, 2023 |
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$ |
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$ |
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$ |
( |
) |
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$ |
|
See accompanying notes to condensed consolidated financial statements.
7
NETAPP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In millions, except per share amounts)
(Unaudited)
|
|
Six Months Ended October 25, 2024 |
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Accumulated |
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Common Stock and |
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Other |
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Additional Paid-in Capital |
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Retained |
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Comprehensive |
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Shares |
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Amount |
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Earnings |
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Loss |
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Total |
|
|||||
Balances, April 26, 2024 |
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$ |
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$ |
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$ |
( |
) |
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$ |
|
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Net income |
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— |
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— |
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— |
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Other comprehensive income |
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— |
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— |
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— |
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||
Issuance of common stock under employee stock award plans, net of taxes |
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
Repurchase of common stock |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Excise tax on net stock repurchases |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Stock-based compensation |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Cash dividends declared ($ |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Balances, October 25, 2024 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
Six Months Ended October 27, 2023 |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|||||
|
|
Common Stock and |
|
|
|
|
|
Other |
|
|
|
|
||||||||
|
|
Additional Paid-in Capital |
|
|
Retained |
|
|
Comprehensive |
|
|
|
|
||||||||
|
|
Shares |
|
|
Amount |
|
|
Earnings |
|
|
Loss |
|
|
Total |
|
|||||
Balances, April 28, 2023 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Issuance of common stock under employee stock award plans, net of taxes |
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
Repurchase of common stock |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Excise tax on net stock repurchases |
|
|
— |
|
|
|