Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Oct. 29, 2016 | May 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ANALOG DEVICES INC | |
Entity Central Index Key | 6,281 | |
Document Type | 10-K | |
Document Period End Date | Oct. 29, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --10-29 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 13,575,000,000 | |
Entity Common Stock, Shares Outstanding | 308,170,560 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | ||
Revenue | ||||
Revenue | $ 3,421,409 | $ 3,435,092 | $ 2,864,773 | |
Costs and Expenses | ||||
Cost of sales | [1] | 1,194,236 | 1,175,830 | 1,034,585 |
Gross margin | 2,227,173 | 2,259,262 | 1,830,188 | |
Operating expenses: | ||||
Research and development | [1] | 653,816 | 637,459 | 559,686 |
Selling, marketing, general and administrative | [1] | 461,438 | 478,972 | 454,676 |
Amortization of intangible Assets Operating Expenses | 70,123 | 88,318 | 26,020 | |
Special charges | 13,684 | 0 | 37,322 | |
Other Selling, General and Administrative Expense | 0 | 223,672 | 0 | |
Total operating expenses | 1,199,061 | 1,428,421 | 1,077,704 | |
Operating income from continuing operations | 1,028,112 | 830,841 | 752,484 | |
Nonoperating (income) expenses: | ||||
Interest expense | 88,757 | 27,030 | 34,784 | |
Interest income | (21,221) | (8,625) | (12,173) | |
Other, net | 3,655 | 2,322 | 528 | |
Total nonoperating (income) expense | 71,191 | 20,727 | 23,139 | |
Earnings | ||||
Income from continuing operations before income taxes | 956,921 | 810,114 | 729,345 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Provision for income taxes | 95,257 | 113,236 | 100,025 | |
Income from continuing operations, net of tax | 861,664 | 696,878 | 629,320 | |
Discontinued operations, net of tax: | ||||
Net income | $ 861,664 | $ 696,878 | $ 629,320 | |
Shares used to compute earnings per share - Basic (in shares) | 308,736 | 312,660 | 313,195 | |
Shares used to compute earnings per share - Diluted (in shares) | 312,308 | 316,872 | 318,027 | |
Earnings per share - Basic (in dollars per share) | ||||
Income from continuing operations, net of tax | $ 2.79 | $ 2.23 | $ 2.01 | |
Earnings per share - Diluted (in dollars per share) | ||||
Income from continuing operations, net of tax | 2.76 | 2.20 | 1.98 | |
Dividends declared and paid per share | $ 1.66 | $ 1.57 | $ 1.45 | |
Cost of sales [Member] | ||||
Includes stock-based compensation expense as follows: | ||||
Stock-based compensation expense | $ 7,808 | $ 8,983 | $ 7,069 | |
Research and development [Member] | ||||
Includes stock-based compensation expense as follows: | ||||
Stock-based compensation expense | 27,039 | 26,617 | 20,707 | |
Selling, marketing, general and administrative [Member] | ||||
Includes stock-based compensation expense as follows: | ||||
Stock-based compensation expense | $ 28,574 | $ 33,319 | $ 23,036 | |
[1] | Includes stock-based compensation expense as follows: |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Income from continuing operations, net of tax | $ 861,664 | $ 696,878 | $ 629,320 |
Foreign currency translation adjustment | (6,006) | (12,925) | (5,615) |
Net unrealized (losses) gains on securities: | |||
Net unrealized holding gains (losses) (net of taxes) on available-for-sale securities classified as short-term investments | 847 | (540) | (306) |
Net unrealized (losses) gains on securities | 847 | (540) | (306) |
Derivative instruments designated as cash flow hedges: | |||
Changes in fair value of derivatives (net of taxes) | (4,629) | (28,798) | (9,350) |
Realized loss (gain) reclassification (net of taxes) | 3,437 | 10,447 | 912 |
Net change in derivative instruments designated as cash flow hedges | (1,192) | (18,351) | (8,438) |
Accumulated other comprehensive (loss) income - pension plans: | |||
Transition asset (obligation) (net of taxes) | 17 | 19 | 22 |
Net actuarial (loss) gain (net of taxes) | (16,730) | 153,953 | (74,049) |
Net prior service income (net of taxes) | 101 | (4,481) | 406 |
Net change in accumulated other comprehensive (loss) income - pension plans (net of taxes) | (16,612) | 149,491 | (73,621) |
Other comprehensive (loss) income | (22,963) | 117,675 | (87,980) |
Comprehensive income from continuing operations | $ 838,701 | $ 814,553 | $ 541,340 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 1,175 | $ 1,479 | $ 2,379 |
Net unrealized (losses) gains on securities: | |||
Tax effect on unrealized holding losses on available for sale securities classified as short-term investments | (56) | 55 | 186 |
Derivative instruments designated as cash flow hedges: | |||
Tax effect on changes in fair value of derivatives | 903 | 10,889 | 916 |
Tax effect on realized (gain) loss reclassification | 1,050 | 1,064 | 148 |
Accumulated other comprehensive (loss) income - pension plans: | |||
Tax effect on transition asset (obligation) | 3 | 0 | 0 |
Tax effect on net actuarial gain (loss) | (3,297) | 23,500 | 12,139 |
Tax effect on net prior service income | 47 | (640) | (58) |
Tax effect on change in accumulated other comprehensive income (loss) - pension | $ (3,247) | $ 22,860 | $ 12,081 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Financial Position [Abstract] | |||
Amount Related To Stock Based Compensation | $ 2,486 | $ 2,923 | |
Current Assets | |||
Cash and cash equivalents | 921,132 | 884,353 | |
Short-term investments | 3,134,661 | 2,144,575 | |
Accounts receivable less allowances | 477,609 | 466,527 | |
Inventories | [1] | 376,555 | 412,314 |
Deferred tax assets | 0 | 129,241 | |
Prepaid income tax | 6,405 | 1,941 | |
Prepaid expenses and other current assets | 58,501 | 40,597 | |
Total current assets | 4,974,863 | 4,079,548 | |
Property, Plant and Equipment, at Cost | |||
Land and buildings | 564,329 | 559,660 | |
Machinery and equipment | 1,994,115 | 1,932,727 | |
Office equipment | 58,785 | 54,099 | |
Leasehold improvements | 59,649 | 55,609 | |
Property, plant and equipment, at cost | 2,676,878 | 2,602,095 | |
Less accumulated depreciation and amortization | 2,040,762 | 1,957,985 | |
Net property, plant and equipment | 636,116 | 644,110 | |
Other Assets | |||
Deferred compensation plan investments | 26,152 | 23,753 | |
Other investments | 21,937 | 17,482 | |
Goodwill | 1,679,116 | 1,636,526 | |
Intangible assets, net | 549,368 | 583,517 | |
Deferred tax assets | 36,005 | 33,280 | |
Other assets | 46,721 | 40,561 | |
Total other assets | 2,359,299 | 2,335,119 | |
Total assets | 7,970,278 | 7,058,777 | |
Current Liabilities | |||
Accounts payable | 171,439 | 174,247 | |
Deferred income on shipments to distributors, net | 351,538 | 300,087 | |
Income taxes payable | 4,100 | 15,062 | |
Debt, current | 0 | 374,594 | |
Accrued liabilities | 255,857 | 249,595 | |
Total current liabilities | 782,934 | 1,113,585 | |
Non-current Liabilities | |||
Long-term debt | 1,732,177 | 495,341 | |
Deferred income taxes | 109,931 | 227,376 | |
Deferred compensation plan liability | 26,152 | 23,753 | |
Other non-current liabilities | 153,466 | 125,763 | |
Total non-current liabilities | 2,021,726 | 872,233 | |
Commitments and contingencies (Note 12) | |||
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 | 51,363 | 52,011 | |
Capital in excess of par value | 402,270 | 634,484 | |
Retained earnings | 4,785,799 | 4,437,315 | |
Accumulated other comprehensive loss | (73,814) | (50,851) | |
Total shareholders' equity | 5,165,618 | 5,072,959 | |
Liabilities and Shareholders' Equity | $ 7,970,278 | $ 7,058,777 | |
[1] | Includes $2,486 and $2,923 related to stock-based compensation at October 29, 2016 and October 31, 2015, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 |
Current Assets | ||
Allowances of accounts receivable | $ 5,117 | $ 2,081 |
Amount related to stock-based compensation | $ 2,486 | $ 2,923 |
Shareholders' Equity | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 471,934 | 471,934 |
Preferred stock, shares outstanding | 0 | |
Common stock, par value | $ 0.166 | $ 0.166 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 308,170,560 | 312,060,682 |
Common stock, shares outstanding | 308,170,560 | 312,060,682 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Income from continuing operations, net of tax | $ 629,320 | ||||
Beginning Balance at Nov. 02, 2013 | $ 51,842 | $ 711,879 | $ 4,056,401 | $ (80,546) | |
Beginning Balance (in shares) at Nov. 02, 2013 | 311,045 | ||||
Net Income | 629,320 | ||||
Dividends declared and paid | (454,225) | ||||
Issuance of stock under stock plans and other, net of repurchases | $ 1,234 | 198,880 | |||
Issuance of stock under stock plans and other, net of repurchases (in shares) | 7,400 | ||||
Tax benefit deficit - stock options | 30,085 | ||||
Stock-based compensation expense | 50,812 | ||||
ReplacementSharesissuedwithAcquisition | 6,541 | ||||
Other comprehensive income | (87,980) | (87,980) | |||
Common stock repurchased | $ (1,207) | (355,139) | |||
Common stock repurchased (in shares) | (7,240) | ||||
Ending Balance at Nov. 01, 2014 | $ 51,869 | 643,058 | 4,231,496 | (168,526) | |
Ending Balance (in shares) at Nov. 01, 2014 | 311,205 | ||||
Income from continuing operations, net of tax | 696,878 | ||||
Net Income | 696,878 | ||||
Dividends declared and paid | (491,059) | ||||
Issuance of stock under stock plans and other, net of repurchases | $ 822 | 121,809 | |||
Issuance of stock under stock plans and other, net of repurchases (in shares) | 4,927 | ||||
Tax benefit deficit - stock options | 26,971 | ||||
Stock-based compensation expense | 68,919 | ||||
Other comprehensive income | 117,675 | 117,675 | |||
Common stock repurchased | $ (680) | (226,273) | |||
Common stock repurchased (in shares) | (4,071) | ||||
Ending Balance at Oct. 31, 2015 | 5,072,959 | $ 52,011 | 634,484 | 4,437,315 | (50,851) |
Ending Balance (in shares) at Oct. 31, 2015 | 312,061 | ||||
Income from continuing operations, net of tax | 861,664 | 861,664 | |||
Dividends declared and paid | (513,180) | ||||
Issuance of stock under stock plans and other, net of repurchases | $ 454 | 61,042 | |||
Issuance of stock under stock plans and other, net of repurchases (in shares) | 2,721 | ||||
Tax benefit deficit - stock options | 12,282 | ||||
Stock-based compensation expense | 63,421 | ||||
Other comprehensive income | (22,963) | ||||
Common stock repurchased | $ (1,102) | (368,959) | |||
Common stock repurchased (in shares) | (6,611) | ||||
Ending Balance at Oct. 29, 2016 | $ 5,165,618 | $ 51,363 | $ 402,270 | $ 4,785,799 | $ (73,814) |
Ending Balance (in shares) at Oct. 29, 2016 | 308,171 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 861,664 | $ 696,878 | $ 629,320 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation | 134,540 | 130,147 | 114,064 |
Amortization of intangibles | 75,250 | 92,093 | 27,906 |
Stock-based compensation expense | 63,421 | 68,919 | 50,812 |
Gains (Losses) on Extinguishment of Debt | 3,290 | 0 | 0 |
Other non-cash activity | 24,570 | 6,974 | 4,423 |
Excess tax benefit - stock options | (10,453) | (25,045) | (22,231) |
Deferred income taxes | 8,124 | (52,214) | (77,711) |
Change in operating assets and liabilities: | |||
Accounts receivable | (9,392) | (71,198) | (36,460) |
Inventories | 38,221 | (35,557) | 24,642 |
Prepaid expenses and other current assets | (5,618) | 2,861 | (5,354) |
Deferred compensation plan investments | (2,399) | (2,643) | (3,746) |
Prepaid income tax | (4,315) | 4,546 | 10,499 |
Accounts payable, deferred income and accrued liabilities | 85,502 | 56,614 | 58,373 |
Deferred compensation plan liability | 2,399 | 2,643 | 3,746 |
Income taxes payable | 9,950 | 25,060 | 96,536 |
Other liabilities | 6,141 | 7,720 | (3,217) |
Total adjustments | 419,231 | 210,920 | 242,282 |
Net cash provided by operating activities | 1,280,895 | 907,798 | 871,602 |
Cash flows from investing: | |||
Purchases of short-term available-for-sale investments | (7,697,260) | (6,083,999) | (7,485,162) |
Maturities of short-term available-for-sale investments | 6,375,361 | 4,984,980 | 7,318,877 |
Sales of short-term available-for-sale investments | 332,716 | 1,251,194 | 2,187,389 |
Additions to property, plant and equipment, net | (127,397) | (153,960) | (177,913) |
Payments for acquisitions, net of cash acquired | (83,170) | (7,065) | (1,945,887) |
(Increase) decrease in other assets | (18,520) | (8,275) | (12,055) |
Net cash used for investing activities | (1,218,270) | (17,125) | (114,751) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 1,235,331 | 0 | 1,995,398 |
Payments of Derivative Instruments | (33,430) | 0 | 0 |
Payments of Financing Costs | (26,583) | 0 | 0 |
Early Repayment of Senior Debt | (378,156) | 0 | 0 |
Term Loan Repayments | 0 | 0 | (1,995,398) |
Dividend payments to shareholders | (513,180) | (491,059) | (454,225) |
Repurchase of common stock | (370,061) | (226,953) | (356,346) |
Net proceeds from employee stock plans | 61,496 | 122,631 | 200,114 |
Contingent consideration payment | (1,409) | (1,767) | (3,576) |
(Decrease) Increase in other financing activities | (7,378) | 500 | 15,192 |
Excess tax benefit - stock options | 10,453 | 25,045 | 22,231 |
Net cash (used for) provided by financing activities | (22,917) | (571,603) | (576,610) |
Effect of exchange rate changes on cash | (2,929) | (3,950) | (3,097) |
Net (decrease) increase in cash and cash equivalents | 36,779 | 315,120 | 177,144 |
Cash and cash equivalents at beginning of year | 884,353 | 569,233 | 392,089 |
Cash and cash equivalents at end of year | $ 921,132 | $ 884,353 | $ 569,233 |
Description of Business
Description of Business | 12 Months Ended |
Oct. 29, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Analog Devices, Inc. (Analog Devices or the Company) is a world leader in the design, manufacture and marketing of a broad portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software, and subsystems. Since the Company's inception in 1965, it has focused on solving its customers’ toughest signal processing engineering challenges, playing a fundamental role in converting, conditioning, and processing real-world phenomena such as temperature, pressure, sound, light, speed, and motion into electrical signals to be used in a wide array of electronic devices. The Company combines sensors, data converters, amplifiers and linear products, radio frequency (RF) ICs, power management products, and signal processing products, into technology platforms that meet specific customer and market needs, leveraging its engineering investment across a broad base of markets and customers. As new generations of applications evolve, such as autonomous vehicles and the Internet of Things, new needs for Analog Devices’ high-performance analog signal processing and digital signal processing (DSP) products and technology are emerging. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies a. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Upon consolidation, all intercompany accounts and transactions are eliminated. Certain amounts reported in previous years have been reclassified to conform to the presentation for the fiscal year ended October 29, 2016 ( fiscal 2016 ). As further discussed in Note 2t, New Accounting Pronouncements , the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) , in the first quarter of fiscal 2016. As shown in the table below, pursuant to the guidance in ASU 2015-03 the Company has reclassified unamortized debt issuance costs associated with its senior notes in the Condensed Consolidated Balance Sheet as of October 31, 2015 as follows (in thousands): October 31, 2015 as presented Reclassifications October 31, 2015 Other assets $ 43,962 $ (3,401 ) $ 40,561 Total other assets $ 2,338,520 $ (3,401 ) $ 2,335,119 Total assets $ 7,062,178 $ (3,401 ) $ 7,058,777 Current debt $ 374,839 $ (245 ) $ 374,594 Current liabilities $ 1,113,830 $ (245 ) $ 1,113,585 Long-term debt $ 498,497 $ (3,156 ) $ 495,341 Total non-current liabilities $ 875,389 $ (3,156 ) $ 872,233 Total liabilities and shareholders equity $ 7,062,178 $ (3,401 ) $ 7,058,777 The Company’s fiscal year is the 52 -week or 53 -week period ending on the Saturday closest to the last day in October. Fiscal 2016 , the fiscal year ended October 31, 2015 (fiscal 2015 ) and the fiscal year ended November 1, 2014 (fiscal 2014 ) were 52 -week periods. On July 26, 2016, the Company entered into a definitive agreement (the Merger Agreement) to acquire Linear Technology Corporation (Linear), an independent manufacturer of high performance linear integrated circuits. The Company currently expects the transaction to be completed by the end of the Company's second quarter of fiscal 2017. On July 22, 2014, the Company completed its acquisition of Hittite Microwave Corporation (Hittite), a company that designed and developed high performance integrated circuits, modules, subsystems and instrumentation for radio frequency, microwave and millimeterwave applications. The total consideration paid to acquire Hittite was approximately $2.4 billion , financed through a combination of existing cash on hand and a 90-day term loan facility of $2.0 billion . The acquisition of Hittite is referred to as the Hittite Acquisition. The Consolidated Financial Statements include the financial results of Hittite prospectively from July 22, 2014, the closing date of the Hittite Acquisition. See Note 6, Acquisitions , of these notes to Consolidated Financial Statements for further discussion related to the proposed acquisition of Linear and the acquisition of Hittite. b. Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents are highly liquid investments with insignificant interest rate risk and maturities of ninety days or less at the time of acquisition. Cash, cash equivalents and short-term investments consist primarily of institutional money market funds, corporate obligations such as commercial paper and floating rate notes, bonds and bank time deposits. The Company classifies its investments in readily marketable debt and equity securities as “held-to-maturity,” “available-for-sale” or “trading” at the time of purchase. There were no transfers between investment classifications in any of the fiscal years presented. Held-to-maturity securities, which are carried at amortized cost, include only those securities the Company has the positive intent and ability to hold to maturity. Securities such as bank time deposits, which by their nature are typically held to maturity, are classified as such. The Company’s other readily marketable cash equivalents and short-term investments are classified as available-for-sale. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of related tax, reported in accumulated other comprehensive (loss) income. Adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease in accumulated other comprehensive (loss) income, unless the adjustment is considered an other-than-temporary impairment, in which case the adjustment is recorded as a charge in the statement of income. The Company’s deferred compensation plan investments are classified as trading. See Note 7, D eferred Compensation Plan Investments, of these Notes to Consolidated Financial Statements for additional information on these investments. There were no cash equivalents or short-term investments classified as trading at October 29, 2016 or October 31, 2015 . The Company periodically evaluates its investments for impairment. There were no other-than-temporary impairments of short-term investments in any of the fiscal years presented. Realized gains or losses on investments are determined based on the specific identification basis and are recognized in nonoperating (income) expense. There were no material net realized gains or losses from the sales of available-for-sale investments during any of the fiscal periods presented. Gross unrealized gains and losses on available-for-sale securities classified as short-term investments at October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Unrealized gains on securities classified as short-term investments $ 846 $ 233 Unrealized losses on securities classified as short-term investments (294 ) (584 ) Net unrealized gain (loss) on securities classified as short-term investments $ 552 $ (351 ) As of October 29, 2016 , the Company held 100 investment securities, 25 of which were in an unrealized loss position with gross unrealized losses of $0.3 million and an aggregate fair value of $729.6 million . As of October 31, 2015 , the Company held 76 investment securities, 23 of which were in an unrealized loss position with gross unrealized losses of $0.6 million and an aggregate fair value of $823.4 million . These unrealized losses were primarily related to corporate obligations that earn lower interest rates than current market rates. None of these investments have been in a loss position for more than twelve months. As the Company does not intend to sell these investments and it is unlikely that the Company will be required to sell the investments before recovery of their amortized basis, which will be at maturity, the Company does not consider those investments to be other-than-temporarily impaired at October 29, 2016 and October 31, 2015 . The components of the Company’s cash and cash equivalents and short-term investments as of October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Cash and cash equivalents: Cash $ 67,877 $ 72,638 Available-for-sale 693,255 807,935 Held-to-maturity 160,000 3,780 Total cash and cash equivalents $ 921,132 $ 884,353 Short-term investments: Available-for-sale $ 3,110,011 $ 2,144,575 Held-to-maturity (less than one year to maturity) 24,650 — Total short-term investments $ 3,134,661 $ 2,144,575 See Note 2j, Fair Value, of these Notes to Consolidated Financial Statements for additional information on the Company’s cash equivalents and short-term investments. c. Supplemental Cash Flow Statement Information 2016 2015 2014 Cash paid during the fiscal year for: Income taxes $ 77,918 $ 142,931 $ 73,067 Interest $ 41,701 $ 25,625 $ 27,931 d. Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market. The valuation of inventory requires the Company to estimate obsolete or excess inventory as well as inventory that is not of saleable quality. The Company employs a variety of methodologies to determine the net realizable value of its inventory. While a portion of the calculation to record inventory at its net realizable value is based on the age of the inventory and lower of cost or market calculations, a key factor in estimating obsolete or excess inventory requires the Company to estimate the future demand for its products. If actual demand is less than the Company’s estimates, impairment charges, which are recorded to cost of sales, may need to be recorded in future periods. Inventory in excess of saleable amounts is not valued, and the remaining inventory is valued at the lower of cost or market. Inventories at October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Raw materials $ 20,263 $ 21,825 Work in process 232,196 261,520 Finished goods 124,096 128,969 Total inventories $ 376,555 $ 412,314 e. Property, Plant and Equipment Property, plant and equipment is recorded at cost, less allowances for depreciation. The straight-line method of depreciation is used for all classes of assets for financial statement purposes while both straight-line and accelerated methods are used for income tax purposes. Leasehold improvements are depreciated over the lesser of the term of the lease or the useful life of the asset. Repairs and maintenance charges are expensed as incurred. Depreciation is based on the following ranges of estimated useful lives: Buildings Up to 25 years Machinery & equipment 3-8 years Office equipment 3-8 years Depreciation expense for property, plant and equipment was $134.5 million , $130.1 million and $114.1 million in fiscal 2016 , 2015 and 2014 , respectively. The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of these assets is determined by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate over their remaining economic lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. If such assets are not impaired, but their useful lives have decreased, the remaining net book value is depreciated over the revised useful life. We have not recorded any material impairment charges related to our property, plant and equipment in fiscal 2016 , fiscal 2015 or fiscal 2014 . f. Goodwill and Intangible Assets Goodwill The Company evaluates goodwill for impairment annually, as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable. The Company tests goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis on the first day of the fourth quarter (on or about August 1) or more frequently if indicators of impairment exist. For the Company’s latest annual impairment assessment that occurred as of July 31, 2016 , the Company identified its reporting units to be its seven operating segments. The performance of the test involves a two-step process. The first step of the quantitative impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company determines the fair value of its reporting units using a weighting of the income and market approaches. Under the income approach, the Company uses a discounted cash flow methodology which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company uses the guideline public company method. Under this method the Company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. In order to assess the reasonableness of the calculated reporting unit fair values, the Company reconciles the aggregate fair values of its reporting units determined, as described above, to its current market capitalization, allowing for a reasonable control premium. If the carrying amount of a reporting unit, calculated using the above approaches, exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that reporting unit. There was no impairment of goodwill in any of the fiscal years presented. The Company’s next annual impairment assessment will be performed as of the first day of the fourth quarter of the fiscal year ending October 28, 2017 (fiscal 2017 ) unless indicators arise that would require the Company to reevaluate at an earlier date. The following table presents the changes in goodwill during fiscal 2016 and fiscal 2015 : 2016 2015 Balance at beginning of year $ 1,636,526 $ 1,642,438 Acquisition of Hittite (Note 6) (1) — (1,105 ) Goodwill adjustment related to other acquisitions (2) 44,046 3,663 Foreign currency translation adjustment (1,456 ) (8,470 ) Balance at end of year $ 1,679,116 $ 1,636,526 (1) Amount in fiscal 2015 represents changes to goodwill as a result of finalizing the acquisition accounting related to the Hittite Acquisition. (2) Represents goodwill related to other acquisitions that were not material to the Company on either an individual or aggregate basis. Intangible Assets The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of assets may not be recoverable. Recoverability of these assets is determined by comparison of their carrying value to the estimated future undiscounted cash flows the assets are expected to generate over their remaining estimated useful lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. Indefinite-lived intangible assets are tested for impairment on an annual basis on the first day of the fourth quarter (on or about August 1) or more frequently if indicators of impairment exist. The impairment test involves a qualitative assessment on the indefinite-lived intangible assets to determine whether it is more likely-than not that the indefinite-lived intangible asset is impaired. If it is determined that the fair value of the indefinite-lived intangible asset is less than the carrying value, the Company would recognize into earnings the amount by which the carrying value of the assets exceeds the fair value. No impairment of intangible assets resulted from the impairment tests in any of the fiscal years presented. Definite-lived intangible assets, are amortized on a straight-line basis over their estimated useful lives or on an accelerated method of amortization that is expected to reflect the estimated pattern of economic use. IPR&D assets are considered indefinite-lived intangible assets until completion or abandonment of the associated R&D efforts. Upon completion of the projects, the IPR&D assets will be amortized over their estimated useful lives. As of October 29, 2016 and October 31, 2015 , the Company’s intangible assets consisted of the following: October 29, 2016 October 31, 2015 Gross Carrying Accumulated Gross Carrying Amount Accumulated Amortization Customer relationships $ 649,159 $ 158,979 $ 624,900 $ 88,913 Technology-based 22,231 8,911 15,100 4,834 Trade-name 600 60 — — Backlog 200 — — — IPR&D (1) 46,175 1,047 37,264 — Total (2) (3) $ 718,365 $ 168,997 $ 677,264 $ 93,747 ________ (1) Includes $16.5 million of IPR&D assets that have completed their R&D efforts and are being amortized over their estimated useful lives. (2) Foreign intangible asset carrying amounts are affected by foreign currency translation. (3) Increases in intangible assets relate to other acquisitions that were not material to the Company on either an individual or aggregate basis. Amortization expense related to finite-lived intangible assets was $75.3 million , $92.1 million and $27.9 million in fiscal 2016 , 2015 and 2014 , respectively. The remaining amortization expense will be recognized over a weighted average life of approximately 3.5 years . The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2017 $ 79,794 2018 $ 78,475 2019 $ 75,286 2020 $ 75,047 2021 $ 74,627 g. Grant Accounting Certain of the Company’s foreign subsidiaries have received grants from governmental agencies. These grants include capital, employment and research and development grants. Capital grants for the acquisition of property and equipment are netted against the related capital expenditures and amortized as a credit to depreciation expense over the estimated useful life of the related asset. Employment grants, which relate to employee hiring and training, and research and development grants are recognized in earnings in the period in which the related expenditures are incurred by the Company and the amounts were not material in fiscal 2016 , 2015 or 2014 . h. Translation of Foreign Currencies The functional currency for the Company’s foreign sales and research and development operations is the applicable local currency. Gains and losses resulting from translation of these foreign currencies into U.S. dollars are recorded in accumulated other comprehensive (loss) income. Transaction gains and losses and re-measurement of foreign currency denominated assets and liabilities are included in income currently, including those at the Company’s principal foreign manufacturing operations where the functional currency is the U.S. dollar. Foreign currency transaction gains or losses included in other expenses, net, were not material in fiscal 2016 , 2015 or 2014 . i. Derivative Instruments and Hedging Agreements Foreign Exchange Exposure Management — The Company enters into forward foreign currency exchange contracts to offset certain operational and balance sheet exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar, primarily the Euro; other significant exposures include the Philippine Peso, the Japanese Yen and the British Pound. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less . Hedges related to anticipated transactions are designated and documented at the inception of the respective hedges as cash flow hedges and are evaluated for effectiveness monthly. Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified. As the terms of the contract and the underlying transaction are matched at inception, forward contract effectiveness is calculated by comparing the change in fair value of the contract to the change in the forward value of the anticipated transaction, with the effective portion of the gain or loss on the derivative reported as a component of accumulated other comprehensive (loss) income (OCI) in shareholders’ equity and reclassified into earnings in the same period during which the hedged transaction affects earnings. Any residual change in fair value of the instruments, or ineffectiveness, is recognized immediately in other (income) expense. 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 and Japanese Yen as of October 29, 2016 and October 31, 2015 was $179.5 million and $163.9 million , respectively. The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s consolidated balance sheets as of October 29, 2016 and October 31, 2015 were as follows: Fair Value At Balance Sheet Location October 29, 2016 October 31, 2015 Forward foreign currency exchange contracts Accrued liabilities $ 5,260 $ 3,091 Additionally, the Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the re-measurement of certain recorded assets and liabilities in a non-functional currency. Changes in the fair value of these undesignated hedges are recognized in other (income) expense immediately as an offset to the changes in the fair value of the asset or liability being hedged. As of October 29, 2016 and October 31, 2015 , the total notional amount of these undesignated hedges was $46.2 million and $57.9 million , respectively. The fair value of these hedging instruments in the Company’s consolidated balance sheets as of October 29, 2016 and October 31, 2015 was immaterial . The Company estimates that $3.9 million , net of tax, of forward foreign currency derivative instruments included in OCI will be reclassified into earnings within the next 12 months. There was no material ineffectiveness during the fiscal years ended October 29, 2016 and October 31, 2015 . All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparties to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company's consolidated balance sheet on a net basis. As of October 29, 2016 and October 31, 2015 , none of the netting arrangements involved collateral. The following table presents the gross amounts of the Company's derivative assets and liabilities and the net amounts recorded in our consolidated balance sheet as of October 29, 2016 and October 31, 2015 : October 29, 2016 October 31, 2015 Gross amount of recognized liabilities $ (5,788 ) $ (3,896 ) Gross amounts of recognized assets offset in the consolidated balance sheet 557 813 Net liabilities presented in the consolidated balance sheet $ (5,231 ) $ (3,083 ) Interest Rate Exposure Management — The Company's current and future debt may be subject to interest rate risk. The Company utilizes interest rate derivatives to alter interest rate exposure in an attempt to reduce the effects of these changes. On October 28, 2014 , the Company entered into forward starting interest rate swap transactions to hedge its exposure to the variability in future cash flows due to changes in interest rates for the first $500 million of debt issuances that were expected to occur in the future. On December 1, 2015, these forward starting swaps were terminated resulting in a loss of $33.4 million . On December 14, 2015, the Company issued the 2025 Notes and 2045 Notes. The loss was recorded in OCI and will be reclassified out of OCI to interest expense on a straight line basis over the 10-year term of the 2025 Notes. The market risk associated with the Company’s derivative instruments results from currency exchange rate or interest rate movements that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. The counterparties to the agreements relating to the Company’s derivative instruments consist of a number of major international financial institutions with high credit ratings. Based on the credit ratings of the Company’s counterparties as of October 29, 2016 , nonperformance is not perceived to be a material risk. Furthermore, none of the Company’s derivatives are subject to collateral or other security arrangements and none contain provisions that are dependent on the Company’s credit ratings from any credit rating agency. While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of the Company’s exposure to credit risk. The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the obligations of the Company to the counterparties. As a result of the above considerations, the Company does not consider the risk of counterparty default to be significant. The Company records the fair value of its derivative financial instruments in its consolidated financial statements in other current assets, other assets or accrued liabilities, depending on their net position, regardless of the purpose or intent for holding the derivative contract. Changes in the fair value of the derivative financial instruments are either recognized periodically in earnings or in shareholders’ equity as a component of OCI. Changes in the fair value of cash flow hedges are recorded in OCI and reclassified into earnings when the underlying contract matures. Changes in the fair values of derivatives not qualifying for hedge accounting or the ineffective portion of designated hedges are reported in earnings as they occur. For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of accumulated other comprehensive income into the consolidated statement of income related to forward foreign currency exchange contracts, see Note 2o, Accumulated Other Comprehensive (Loss) Income of these Notes to Consolidated Financial Statements. j. 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 October 29, 2016 and October 31, 2015 . 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 October 29, 2016 and October 31, 2015 , the Company held $252.5 million and $76.4 million , respectively, of cash and held-to-maturity investments that were excluded from the tables below. October 29, 2016 Fair Value measurement at Reporting Date using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets Cash equivalents: Available-for-sale: Institutional money market funds $ 277,595 $ — $ — $ 277,595 Corporate obligations (1) — 415,660 — 415,660 Short - term investments: Available-for-sale: Securities with one year or less to maturity: Corporate obligations (1) — 2,518,148 — 2,518,148 Floating rate notes, issued at par — 29,989 — 29,989 Floating rate notes (1) — 561,874 — 561,874 Other assets: Deferred compensation investments 26,916 — — 26,916 Total assets measured at fair value $ 304,511 $ 3,525,671 $ — $ 3,830,182 Liabilities Contingent consideration — — 7,555 7,555 Forward foreign currency exchange contracts (2) — 5,231 — 5,231 Total liabilities measured at fair value $ — $ 5,231 $ 7,555 $ 12,786 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2016 was $3.5 billion . (2) The Company has netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of these Notes to Consolidated Financial Statements for more information related to the Company's master netting arrangements. October 31, 2015 Fair Value measurement at Reporting Date using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets Cash equivalents: Available-for-sale: Institutional money market funds $ 198,853 $ — $ — $ 198,853 Corporate obligations (1) — 609,082 — 609,082 Short - term investments: Available-for-sale: Securities with one year or less to maturity: Corporate obligations (1) — 1,899,374 — 1,899,374 Floating rate notes, issued at par — 99,648 — 99,648 Floating rate notes (1) — 145,553 — 145,553 Other assets: Deferred compensation investments 24,124 — — 24,124 Total assets measured at fair value $ 222,977 $ 2,753,657 $ — $ 2,976,634 Liabilities Contingent consideration — — 2,843 2,843 Forward foreign currency exchange contracts (2) — 3,083 — 3,083 Interest rate swap agreements — 32,737 — 32,737 Total liabilities measured at fair value $ — $ 35,820 $ 2,843 $ 38,663 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 31, 2015 was $2.6 billion . (2) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of these Notes to 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 and short-term investments — 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. Interest rate swap agreements — The fair value of interest rate swap agreements is based on the quoted market price for the same or similar financial instruments. Contingent consideration — The fair value of the contingent consideration was estimated utilizing the income approach and is based upon significant inputs not observable in the market. The income approach is based on two steps. The first step involves a projection of the cash flows that is based on the Company’s estimates of the timing and probability of achieving the defined milestones. The second step involves converting the cash flows into a present value equivalent through discounting. The discount rate reflects the |
Stock-Based Compensation and Sh
Stock-Based Compensation and Shareholders' Equity | 12 Months Ended |
Oct. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Shareholders' Equity | Stock-Based Compensation and Shareholders’ Equity Equity Compensation Plans The Company grants, or has granted, stock options and other stock and stock-based awards under the Company's Amended and Restated 2006 Stock Incentive Plan (2006 Plan). This plan was originally approved by shareholders on March 14, 2006, and shareholders subsequently approved the amended and restated 2006 Plan in March 2014. The 2006 Plan provides for the grant of up to 34 million shares of the Company’s common stock, plus such number of additional shares that were subject to outstanding options under the Company’s previous equity compensation plans that have not been issued because the applicable option award subsequently terminates or expires without being exercised. The 2006 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. Employees, officers, directors, consultants and advisors of the Company and its subsidiaries are eligible to be granted awards under the 2006 Plan. No award may be made under the 2006 Plan after March 12, 2021, but awards previously granted may extend beyond that date. The Company will not grant further equity awards under any previous equity compensation plans. While the Company may grant to employees options that become exercisable at different times or within different periods, the Company has generally granted to employees options that vest over five years and become exercisable in annual installments of 20% on each of the first, second, third, fourth and fifth anniversaries of the date of grant. The maximum contractual term of all options is ten years . In addition, the Company has granted to employees restricted stock units that generally vest in one installment on the third anniversary of the grant date. As of October 29, 2016 , a total of 14.8 million common shares were available for future grant under the 2006 Plan and 29.2 million common shares were reserved for issuance under the 2006 Plan and the Company's previous equity compensation plans. Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards ultimately expected to vest, and is recognized as an expense on a straight-line basis over the vesting period, which is generally five years for stock options and three years for restricted stock units. Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of stock options. Hittite Replacement Awards In connection with the Hittite Acquisition, the Company issued equity awards to certain Hittite employees in replacement of Hittite equity awards that were canceled at closing. The replacement awards consisted of approximately 0.7 million restricted stock units with a weighted average grant date fair value of $48.20 . The terms and intrinsic value of these awards were substantially the same as the canceled Hittite awards. The fair value of the replaced awards associated with services rendered through the date of Acquisition was recognized as a component of the total estimated acquisition consideration, and the remaining fair value of the replaced awards associated with post Acquisition services is being recognized as an expense on a straight-line basis over the remaining vesting period. Modification of Awards The Company has from time to time modified the terms of its equity awards to employees and directors. The modifications made to the Company’s equity awards in fiscal 2016 , 2015 and 2014 did not result in significant incremental compensation costs, either individually or in the aggregate. Grant-Date Fair Value The Company uses the Black-Scholes valuation model to calculate the grant-date fair value of stock option awards and the Monte Carlo simulation model to calculate the grant-date fair value of market-based restricted stock units. The use of these valuation models requires the Company to make estimates and assumptions, such as expected volatility, expected term, risk-free interest rate, expected dividend yield and forfeiture rates. The grant-date fair value of restricted stock units with only a service condition represents the value of the Company's common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company's common stock prior to vesting. Information pertaining to the Company’s stock option awards and the related estimated weighted-average assumptions to calculate the fair value of stock options using the Black-Scholes valuation model granted is as follows: Stock Options 2016 2015 2014 Options granted (in thousands) 1,814 1,954 2,240 Weighted-average exercise price $55.19 $57.20 $51.52 Weighted-average grant-date fair value $12.67 $10.38 $8.74 Assumptions: Weighted-average expected volatility 34.0 % 25.9 % 24.9 % Weighted-average expected term (in years) 5.1 5.3 5.3 Weighted-average risk-free interest rate 1.4 % 1.6 % 1.7 % Weighted-average expected dividend yield 3.0 % 2.8 % 2.9 % The Company utilizes the Monte Carlo simulation valuation model to value market-based restricted stock units. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the performance conditions stipulated in the award grant and calculates the fair market value for the market-based restricted stock units granted. The Monte Carlo simulation model also uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions, including the possibility that the market condition may not be satisfied, and the resulting fair value of the award. Information pertaining to the Company's market-based restricted stock units and the related estimated assumptions used to calculate the fair value of market-based restricted stock units granted using the Monte Carlo simulation model is as follows: Market-based Restricted Stock Units 2016 2015 2014 Units granted (in thousands) 102 75 86 Grant-date fair value $58.95 $55.67 $50.79 Assumptions: Historical stock price volatility 25.1 % 20.0 % 23.2 % Risk-free interest rate 1.1 % 1.1 % 0.8 % Expected dividend yield 3.0 % 2.8 % 2.8 % Expected volatility — The Company is responsible for estimating volatility and has considered a number of factors, including third-party estimates. The Company currently believes that the exclusive use of implied volatility results in the best estimate of the grant-date fair value of employee stock options because it reflects the market’s current expectations of future volatility. In evaluating the appropriateness of exclusively relying on implied volatility, the Company concluded that: (1) options in the Company’s common stock are actively traded with sufficient volume on several exchanges; (2) the market prices of both the traded options and the underlying shares are measured at a similar point in time to each other and on a date close to the grant date of the employee share options; (3) the traded options have exercise prices that are both near-the-money and close to the exercise price of the employee share options; and (4) the remaining maturities of the traded options used to estimate volatility are at least one year. The Company utilizes historical volatility as an input variable of the Monte Carlo simulation to estimate the grant date fair value of market-based restricted stock units. The market performance measure of these awards is based upon the interaction of multiple peer companies. Given the Company is required to use consistent statistical properties in the Monte Carlo simulation and implied volatility is not available across the population, historical volatility must be used. Expected term — The Company uses historical employee exercise and option expiration data to estimate the expected term assumption for the Black-Scholes grant-date valuation. The Company believes that this historical data is currently the best estimate of the expected term of a new option, and that generally its employees exhibit similar exercise behavior. Risk-free interest rate — The yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption is used as the risk-free interest rate. Expected dividend yield — Expected dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors for the current quarter and dividing that result by the closing stock price on the date of grant. Until such time as the Company’s Board of Directors declares a cash dividend for an amount that is different from the current quarter’s cash dividend, the current dividend will be used in deriving this assumption. Cash dividends are not paid on options, restricted stock or restricted stock units. Stock-Based Compensation Expense The amount of stock-based compensation expense recognized during a period is based on the value of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered stock-based award. Based on an analysis of its historical forfeitures, the Company has applied an annual forfeiture rate of 4.7% to all unvested stock-based awards as of October 29, 2016 . This analysis will be re-evaluated quarterly and the forfeiture rate will be adjusted as necessary. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. Additional paid-in-capital (APIC) Pool The APIC pool represents the excess tax benefits related to share-based compensation that are available to absorb future tax deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, the Company records the excess as income tax expense in its consolidated statements of income. For fiscal 2016 , fiscal 2015 and fiscal 2014, the Company had a sufficient APIC pool to cover any tax deficiencies recorded and as a result, these deficiencies did not affect its results of operations. Stock-Based Compensation Activity A summary of the activity under the Company’s stock option plans as of October 29, 2016 and changes during the fiscal year then ended is presented below: Options Outstanding (in thousands) Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term in Years Aggregate Options outstanding at October 31, 2015 12,181 $41.60 Options granted 1,814 $55.19 Options exercised (1,790 ) $34.43 Options forfeited (482 ) $50.84 Options expired (19 ) $40.42 Options outstanding at October 29, 2016 11,704 $44.43 6.0 $223,611 Options exercisable at October 29, 2016 6,577 $37.90 4.5 $168,549 Options vested or expected to vest at October 29, 2016 (1) 11,321 $44.09 6.0 $220,085 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. The total intrinsic value of options exercised (i.e. the difference between the market price at exercise and the price paid by the employee to exercise the options) during fiscal 2016 , 2015 and 2014 was $46.6 million , $99.2 million and $130.6 million , respectively, and the total amount of proceeds received by the Company from exercise of these options during fiscal 2016 , 2015 and 2014 was $61.5 million , $122.6 million and $200.1 million , respectively. A summary of the Company’s restricted stock unit award activity as of October 29, 2016 and changes during the fiscal year then ended is presented below: Restricted Stock Units Outstanding (in thousands) Weighted- Average Grant- Date Fair Value Per Share Restricted stock units outstanding at October 31, 2015 2,698 $47.59 Units granted 1,099 $51.59 Restrictions lapsed (905 ) $44.30 Forfeited (202 ) $50.34 Restricted stock units outstanding at October 29, 2016 2,690 $50.11 As of October 29, 2016 , there was $112.3 million of total unrecognized compensation cost related to unvested share-based awards comprised of stock options and restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.4 years. The total grant-date fair value of shares that vested during fiscal 2016 , 2015 and 2014 was approximately $62.8 million , $65.6 million and $57.4 million , respectively. Common Stock Repurchases The Company’s common stock repurchase program has been in place since August 2004 . In the aggregate, the Board of Directors has authorized the Company to repurchase $6.2 billion of the Company’s common stock under the program. The Company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of the Company’s Board of Directors, the repurchase program will expire when the Company has repurchased all shares authorized under the program. As of October 29, 2016 , the Company had repurchased a total of approximately 147.0 million shares of its common stock for approximately $5.4 billion under this program. An additional $792.5 million remains available for repurchase of shares under the current authorized program. The repurchased shares are held as authorized but unissued shares of common stock. As a result of the Company's planned acquisition of Linear Technology Corporation, see Note 6, Acquisitions, of these Notes to Consolidated Financial Statements, the Company temporarily suspended the common stock repurchase plan in the third quarter of 2016. The Company also, from time to time, repurchases shares in settlement of employee minimum tax withholding obligations due upon the vesting of restricted stock units or the exercise of stock options. The withholding amount is based on the employees minimum statutory withholding requirement. Any future common stock repurchases will be dependent upon several factors, including the Company's financial performance, outlook, liquidity and the amount of cash the Company has available in the United States. Preferred Stock The Company has 471,934 authorized shares of $1.00 par value preferred stock, none of which is issued or outstanding. The Board of Directors is authorized to fix designations, relative rights, preferences and limitations on the preferred stock at the time of issuance. |
Industry, Segment and Geographi
Industry, Segment and Geographic Information | 12 Months Ended |
Oct. 29, 2016 | |
Segment Reporting [Abstract] | |
Industry, Segment and Geographic Information | Industry, Segment and Geographic Information The Company operates and tracks its results in one reportable segment based on the aggregation of seven operating segments. The Company designs, develops, manufactures and markets a broad range of integrated circuits (ICs). The Chief Executive Officer has been identified as the Company's Chief Operating Decision Maker. The Company has determined that all of the Company's operating segments share the following similar economic characteristics, and therefore meet the criteria established for operating segments to be aggregated into one reportable segment, namely: • The primary source of revenue for each operating segment is the sale of integrated circuits. • The integrated circuits sold by each of the Company's operating segments are manufactured using similar semiconductor manufacturing processes and raw materials in either the Company’s own production facilities or by third-party wafer fabricators using proprietary processes. • The Company sells its products to tens of thousands of customers worldwide. Many of these customers use products spanning all operating segments in a wide range of applications. • The integrated circuits marketed by each of the Company's operating segments are sold globally through a direct sales force, third-party distributors, independent sales representatives and via our website to the same types of customers. All of the Company's operating segments share a similar long-term financial model as they have similar economic characteristics. The causes for variation in operating and financial performance are the same among the Company's operating segments and include factors such as (i) life cycle and price and cost fluctuations, (ii) number of competitors, (iii) product differentiation and (iv) size of market opportunity. Additionally, each operating segment is subject to the overall cyclical nature of the semiconductor industry. Lastly, the number and composition of employees and the amounts and types of tools and materials required for production of products are similar for each operating segment. 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 evolve and improve, 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. 2016 2015 2014 Revenue % of Revenue % of Revenue % of Industrial $ 1,502,019 44 % $ 1,494,898 44 % $ 1,344,906 47 % Automotive 540,940 16 % 525,893 15 % 525,123 18 % Consumer 688,289 20 % 729,860 21 % 327,434 11 % Communications 690,161 20 % 684,441 20 % 667,310 23 % Total Revenue $ 3,421,409 100 % $ 3,435,092 100 % $ 2,864,773 100 % ________________ * The sum of the individual percentages does not equal the total due to rounding. Geographic Information Revenue by geographic region is based upon the primary location of the Company's customers' design activity for its products. In fiscal years 2016 , 2015 and 2014 , the predominant countries comprising “Rest of North and South America” are Canada and Mexico; the predominant countries comprising “Europe” are Germany, Sweden, France and the United Kingdom; and the predominant countries comprising “Rest of Asia” are South Korea and Taiwan. 2016 2015 2014 Revenue United States $ 1,299,629 $ 1,325,279 $ 821,554 Rest of North and South America 95,957 97,189 96,957 Europe 924,849 939,230 924,477 Japan 291,649 319,569 308,054 China 575,690 511,365 459,260 Rest of Asia 233,635 242,460 254,471 Subtotal all foreign countries 2,121,780 2,109,813 2,043,219 Total revenue $ 3,421,409 $ 3,435,092 $ 2,864,773 Property, plant and equipment United States $ 236,625 $ 253,417 $ 255,473 Ireland 174,952 173,703 167,359 Philippines 194,587 195,662 180,586 All other countries 29,952 21,328 19,004 Subtotal all foreign countries 399,491 390,693 366,949 Total property, plant and equipment $ 636,116 $ 644,110 $ 622,422 |
Special Charges
Special Charges | 12 Months Ended |
Oct. 29, 2016 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | Special Charges The Company monitors global macroeconomic conditions on an ongoing basis and continues to assess opportunities for improved operational effectiveness and efficiency, as well as a better alignment of expenses with revenues. As a result of these assessments, the Company has undertaken various restructuring actions over the past several years. These actions are described below. The following tables display the special charges taken for ongoing actions and a roll-forward from November 2, 2013 to October 29, 2016 of the employee separation and exit cost accruals established related to these actions. Statement of Income Reduction of Workforce reductions 37,873 Facility closure costs 459 Non-cash impairment charge 433 Change in estimate (1,443 ) Total Fiscal 2014 Charges $ 37,322 Workforce reductions 13,684 Total Fiscal 2016 Charges $ 13,684 Accrued Restructuring Reduction of Operating Costs Action Balance at November 2, 2013 $ 19,955 Fiscal 2014 special charges 37,322 Severance payments (16,790 ) Effect of foreign currency on accrual 16 Balance at November 1, 2014 $ 40,503 Severance payments (33,220 ) Facility closure costs (459 ) Non-cash impairment charge (433 ) Effect of foreign currency on accrual (514 ) Balance at October 31, 2015 $ 5,877 Fiscal 2016 special charges 13,684 Severance payments (7,184 ) Effect of foreign currency on accrual (3 ) Balance at October 29, 2016 $ 12,374 Reduction of Operating Costs Actions During fiscal 2014, the Company recorded special charges of approximately $37.3 million . These special charges included $37.9 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 341 manufacturing, engineering and SMG&A employees; $0.5 million for lease obligations costs for facilities that the Company ceased using during the fourth quarter of fiscal 2014; and $0.4 million for the impairment of assets that have no future use located at closed facilities. In addition, the Company reversed approximately $ 1.4 million of its severance accrual related to charges taken in fiscal 2013 primarily due to severance costs being lower than the Company's estimates. The Company has terminated the employment of all employees associated with this action. During fiscal 2016, the Company recorded special charges of approximately $13.7 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan for 123 manufacturing, engineering and SMG&A employees. As of October 29, 2016 , the Company still employed 44 of the 123 employees included in these cost reduction actions. These employees must continue to be employed by the Company until their employment is terminated in order to receive the severance benefit. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 29, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Proposed Acquisition of Linear Technology Corporation On July 26, 2016, the Company entered into the Merger Agreement to acquire Linear. Under the terms of the agreement, Linear stockholders will receive, for each outstanding share of Linear common stock, $46.00 in cash and 0.2321 of a share of the Company’s common stock at the closing. Based on the number of outstanding shares of Linear common stock as of July 26, 2016 and the Company's 5-day volume weighted average price as of July 21, 2016, the value of the total consideration to be paid by the Company is estimated to be approximately $14.8 billion , to be funded with the issuance of approximately 58.0 million new shares of the Company’s common stock and approximately $11.6 billion of new short- and long-term indebtedness. On October 18, 2016, Linear stockholders approved the Merger Agreement. As of October 29, 2016 the Company had received antitrust clearance in the United States and Germany. Subsequently, the Company also received antitrust clearances in Japan and Israel. The Company currently expects the transaction to be completed by the end of the second quarter of fiscal 2017, subject to receipt of the remaining required regulatory clearances and the satisfaction or waiver of the other conditions contained in the Merger Agreement. The Merger Agreement includes termination rights for both the Company and Linear. Under certain circumstances, including if the proposed merger is terminated due to a failure to obtain the required regulatory clearances, the Company may be required to pay Linear a termination fee of $700.0 million . In connection with the planned acquisition, the Company has obtained bridge financing commitments and has entered into a term loan facility. See Note 16, Debt, of these Notes to Consolidated Financial Statements for further information on these financing commitments. These sources of financing together with the issuance of the new shares of the Company's common stock are expected to be sufficient to finance the acquisition. As a result of the planned acquisition, the Company has temporarily suspended its share repurchase program. See Note 3, Stock-Based Compensation and Shareholders' Equity of these Notes to Consolidated Financial Statements for further information on the Company's stock repurchases. During fiscal 2016, the Company incurred approximately $12.2 million of transaction-related costs recorded within Selling, Marketing, General and Administrative expenses in the Company's Consolidated Statement of Income. Hittite Microwave Corporation On July 22, 2014 , the Company completed its acquisition of Hittite, a company that designed and developed high performance integrated circuits, modules, subsystems and instrumentation for radio frequency, microwave and millimeterwave applications. The total consideration paid to acquire Hittite was approximately $2.4 billion , financed through a combination of existing cash on hand and a 90-day term loan facility of $2.0 billion . The Hittite Acquisition is expected to expand the Company’s technology position in high performance signal processing solutions and drive growth in key markets. The Company completed the Hittite Acquisition through a cash tender offer (the Offer) by BBAC Corp., a wholly-owned subsidiary of the Company, for all of the outstanding shares of common stock, par value $0.01 per share, of Hittite at a purchase price of $78.00 per share, net to the seller in cash, without interest, less any applicable withholding taxes. After completion of the Offer, BBAC Corp. merged with and into Hittite, with Hittite continuing as the surviving corporation and a wholly-owned subsidiary of the Company. The results of operations of Hittite from July 22, 2014 (the Hittite Acquisition Date) are included in the Company’s consolidated statements of income for fiscal 2015 and fiscal 2014. The amount of revenue and earnings attributable to Hittite included in the Company's consolidated statements of income for fiscal 2014 was immaterial. The Hittite Acquisition date fair value of the consideration transferred in the Hittite Acquisition consisted of the following: (in thousands) Cash consideration $2,424,446 Fair value of replacement share-based awards 6,541 Total estimated purchase price $ 2,430,987 Hittite Replacement Awards — In connection with the Hittite Acquisition, the Company issued equity awards to certain Hittite employees in replacement of Hittite equity awards that were canceled at closing. The replacement awards consisted of approximately 0.7 million restricted stock units with a weighted average grant date fair value of $48.20 . The grant-date fair value of the restricted stock units represents the value of the Company’s common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting. The terms and the intrinsic value of these awards were substantially the same as the canceled Hittite awards. The $6.5 million noted in the table above represents the portion of the fair value of the replacement awards associated with services rendered through the Hittite Acquisition Date and have been included as a component of the total estimated purchase price. During fiscal 2015, the Company completed the acquisition accounting for the Hittite Acquisition. The following is a summary of the amounts recognized in the accounting for the Hittite Acquisition: (in thousands) Cash and cash equivalents $ 480,742 Marketable securities 28,008 Accounts receivable (a) 36,991 Inventories 115,377 Prepaid expenses and other assets 24,088 Property, plant and equipment 50,726 Deferred tax assets 2,242 Intangible assets (Note 2f) 666,400 Goodwill (Note 2f) 1,355,972 Total assets $ 2,760,546 Assumed liabilities 52,876 Deferred tax liabilities 276,683 Total estimated purchase price $ 2,430,987 ____________ (a) The fair value of accounts receivable was $37.0 million , with the gross contractual amount being $37.3 million , of which the Company estimates that $0.3 million is uncollectible. Of the $666.4 million of acquired intangible assets, $0.9 million was recorded as in-process research and development (IPR&D) assets at estimated fair value on the Hittite Acquisition Date. The IPR&D assets acquired were capitalized until the technology was commercially available for their intended uses and are now being amortized over their estimated useful lives. The amortizable intangible assets acquired consisted of the following, which are being amortized on a straight-line basis over their estimated useful lives. Fair Value (in thousands) Weighted Average Useful Lives (in Years) Technology-based $ 15,100 4 Backlog 25,500 1 Customer relationships 624,900 9 Total amortizable intangible assets $ 665,500 9 The goodwill recognized is attributable to synergies which are expected to enhance and expand the Company’s overall product portfolio and opportunities in new markets, future technologies that have yet to be determined and Hittite’s assembled workforce. Future technologies do not meet the criteria for recognition separately from goodwill because they are part of future development and growth of the business. There were no significant contingencies assumed as part of the Hittite Acquisition. The Company recognized $50.9 million of transaction-related costs, including legal, accounting, severance, debt financing, interest and other related fees, of which approximately $9.7 million and $41.2 million were expensed in fiscal 2015 and fiscal 2014, respectively. Approximately $9.7 million of these costs are included in the consolidated statements of income in operating expenses within SMG&A expenses for fiscal 2015. Approximately $33.3 million of these costs are included in the consolidated statements of income in operating expenses within SMG&A expenses for fiscal 2014, and approximately $7.9 million of these costs are included in the consolidated statements of income within nonoperating expenses for fiscal 2014. The following unaudited pro forma consolidated financial information presents the Company's combined results of operations after giving effect to the Hittite Acquisition and assumes that the Hittite Acquisition, which closed on July 22, 2014 , was completed on November 4, 2012 (the first day of the Company’s fiscal 2013). The pro forma consolidated financial information has been calculated after applying the Company’s accounting policies and includes adjustments for amortization expense of acquired intangible assets, transaction-related costs, a step-up in the value of acquired inventory and property, plant and equipment, and interest expense for the debt incurred to fund the Hittite Acquisition, together with the consequential tax effects. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the operating results of the Company that would have been achieved had the Hittite Acquisition actually taken place on November 4, 2012. In addition, these results are not intended to be a projection of future results and do not reflect events that may occur after the Hittite Acquisition, including but not limited to revenue enhancements, cost savings or operating synergies that the combined Company may achieve as a result of the Hittite Acquisition. (thousands, except per share data) 2014 Revenue $ 3,075,468 Net income $ 778,049 Basic net income per common share $ 2.48 Diluted net income per common share $ 2.44 Other Acquisitions The Company has not provided pro forma results of operations for any other acquisitions completed in fiscal years 2016 , 2015 or 2014 herein as they were not material to the Company on either an individual or an aggregate basis. The Company included the results of operations of each acquisition in its consolidated statement of income from the date of each acquisition. |
Deferred Compensation Plan Inve
Deferred Compensation Plan Investments | 12 Months Ended |
Oct. 29, 2016 | |
Deferred Compensation Plan Investments [Abstract] | |
Deferred Compensation Plan Investments | Deferred Compensation Plan Investments Investments in The Analog Devices, Inc. Deferred Compensation Plan (the Deferred Compensation Plan) are classified as trading. The components of the investments as of October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Money market funds $ 3,129 $ 3,659 Mutual funds 23,787 20,465 Total Deferred Compensation Plan investments $ 26,916 $ 24,124 The fair values of these investments are based on published market quotes on October 29, 2016 and October 31, 2015 , respectively. Adjustments to the fair value of, and income pertaining to, Deferred Compensation Plan investments are recorded in operating expenses. Gross realized and unrealized gains and losses from trading securities were not material in fiscal 2016 , fiscal 2015 or fiscal 2014 . The Company has recorded a corresponding liability for amounts owed to the Deferred Compensation Plan participants. See Note 10, Deferred Compensation Plan Liability, of these Notes to Consolidated Financial Statements for further information. These investments are specifically designated as available to the Company solely for the purpose of paying benefits under the Deferred Compensation Plan. However, in the event the Company became insolvent, the investments would be available to all unsecured general creditors. |
Other Investments
Other Investments | 12 Months Ended |
Oct. 29, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Other Investments | Other Investments Other investments consist of interests in venture capital funds and other long-term investments. Investments are accounted for using the equity or cost method of accounting, depending on the nature of the investment, as appropriate. Realized gains and losses from equity method investments are reflected in nonoperating (income) expense based upon the Company's ownership share of the investee's financial results. Realized gains or losses on cost-method investments are determined based on the specific identification basis and are recognized in nonoperating (income) expense. During fiscal 2016, the Company recognized an other-than-temporary impairment of $6.0 million , recorded in the condensed consolidated statement of income in other, net, within non-operating (income) expense, related to a cost method investment that the Company determined was impaired. There were no other-than-temporary impairments recognized in any other of the fiscal periods presented. There were no material net realized or unrealized gains or losses from other investments during fiscal 2016, fiscal 2015 and fiscal 2014 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Oct. 29, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at October 29, 2016 and October 31, 2015 consisted of the following: 2016 2015 Accrued compensation and benefits $ 112,003 $ 125,500 Interest rate swap (Note 2i) — 32,737 Accrued interest (Note 16) 26,411 6,069 Special charges (Note 5) 12,374 5,877 Other 105,069 79,412 Total accrued liabilities $ 255,857 $ 249,595 |
Deferred Compensation Plan Liab
Deferred Compensation Plan Liability | 12 Months Ended |
Oct. 29, 2016 | |
Deferred Compensation Liability [Abstract] | |
Deferred Compensation Plan Liability | Deferred Compensation Plan Liability The deferred compensation plan liability relates to obligations due under the Deferred Compensation Plan. The Deferred Compensation Plan allows certain members of management and other highly-compensated employees and non-employee directors to defer receipt of all or any portion of their compensation. The balance represents Deferred Compensation Plan participant accumulated deferrals and earnings thereon since the inception of the Deferred Compensation Plan net of withdrawals. The Company’s liability under the Deferred Compensation Plan is an unsecured general obligation of the Company. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Oct. 29, 2016 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases certain facilities, equipment and software under various operating leases that expire at various dates through 2022 . The lease agreements frequently include renewal and escalation clauses and require the Company to pay taxes, insurance and maintenance costs. Total rental expense under operating leases was approximately $58.5 million in fiscal 2016 , $51.8 million in fiscal 2015 and $51.0 million in fiscal 2014 . The following is a schedule of future minimum rental payments required under long-term operating leases at October 29, 2016 : Operating Fiscal Years Leases 2017 $ 34,328 2018 25,301 2019 8,130 2020 7,033 2021 4,439 Later Years 3,394 Total $ 82,625 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, in the ordinary course of the Company’s business, various claims, charges and litigation are asserted or commenced against the Company arising from, or related to, contractual matters, patents, trademarks, personal injury, environmental matters, product liability, insurance coverage and personnel and employment disputes. As to such claims and litigation, the Company can give no assurance that it will prevail. The Company does not believe that any current legal matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Oct. 29, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans The Company and its subsidiaries have various savings and retirement plans covering substantially all employees. The Company maintains a defined contribution plan for the benefit of its eligible U.S. employees. This plan provides for Company contributions of up to 5% of each participant’s total eligible compensation. In addition, the Company contributes an amount equal to each participant’s pre-tax contribution, if any, up to a maximum of 3% of each participant’s total eligible compensation. The total expense related to the defined contribution plan for U.S. employees was $28.3 million in fiscal 2016 , $26.3 million in fiscal 2015 and $24.1 million in fiscal 2014 . The Company also has various defined benefit pension and other retirement plans for certain non-U.S. employees that are consistent with local statutory requirements and practices. The total expense related to the various defined benefit pension and other retirement plans for certain non-U.S. employees, excluding settlement charges related to the Company's Irish defined benefit plan, was $26.9 million in fiscal 2016 , $33.3 million in fiscal 2015 and $29.8 million in fiscal 2014 . Non-U.S. Plan Disclosures During fiscal 2015, the Company converted the benefits provided to participants in the Company’s Irish defined benefits pension plan (the DB Plan) to benefits provided under the Company’s Irish defined contribution plan. As a result, in fiscal 2015 the Company recorded expenses of $223.7 million , including settlement charges, legal, accounting and other professional fees to settle the pension obligation. The assets related to the DB Plan were liquidated and used to purchase annuities for retirees and distributed to active and deferred members' accounts in the Company's Irish defined contribution plan in connection with the plan conversion. Accordingly, plan assets for the DB Plan were zero as of the end of fiscal 2015. The Company’s funding policy for its foreign defined benefit pension plans is consistent with the local requirements of each country. The plans’ assets consist primarily of U.S. and non-U.S. equity securities, bonds, property and cash. The benefit obligations and related assets under these plans have been measured at October 29, 2016 and October 31, 2015 . Components of Net Periodic Benefit Cost Net annual periodic pension cost of non-U.S. plans is presented in the following table: 2016 2015 2014 Service cost $ 5,520 $ 15,675 $ 13,532 Interest cost 3,675 11,636 14,051 Expected return on plan assets (3,764 ) (13,509 ) (13,615 ) Amortization of prior service cost — (229 ) (240 ) Amortization of transition obligation 17 18 19 Recognized actuarial loss 679 7,257 4,544 Subtotal $ 6,127 $ 20,848 $ 18,291 Curtailment impact — (4,463 ) — Settlement impact 151 226,810 — Net periodic pension cost $ 6,278 $ 243,195 $ 18,291 Benefit Obligations and Plan Assets Obligation and asset data of the Company’s non-U.S. plans at each fiscal year end is presented in the following table: 2016 2015 Change in Benefit Obligation Benefit obligation at beginning of year $ 106,533 $ 455,205 Service cost 5,520 15,675 Interest cost 3,675 11,636 Participant contributions — 1,895 Plan amendments (142 ) — Curtailment — (20,586 ) Settlement (632 ) (412,136 ) Premiums paid — (332 ) Actuarial loss 30,223 114,767 Benefits paid (1,701 ) (4,449 ) Exchange rate adjustment (13,765 ) (55,142 ) Benefit obligation at end of year $ 129,711 $ 106,533 Change in Plan Assets Fair value of plan assets at beginning of year $ 70,365 $ 269,371 Actual return on plan assets 9,002 24,283 Employer contributions 4,880 228,582 Participant contributions — 1,895 Settlements (632 ) (412,136 ) Premiums paid — (332 ) Benefits paid (1,701 ) (4,449 ) Exchange rate adjustment (12,091 ) (36,849 ) Fair value of plan assets at end of year $ 69,823 $ 70,365 Reconciliation of Funded Status Funded status $ (59,888 ) $ (36,168 ) Amounts Recognized in the Balance Sheet Non-current assets $ — $ 3,246 Current liabilities (606 ) (595 ) Non-current liabilities (59,282 ) (38,819 ) Net amount recognized $ (59,888 ) $ (36,168 ) 2016 2015 Reconciliation of Amounts Recognized in the Statement of Financial Position Initial net obligation $ (24 ) $ (44 ) Prior service credit 148 — Net loss (39,647 ) (19,620 ) Accumulated other comprehensive loss (39,523 ) (19,664 ) Accumulated contributions (less than) in excess of net periodic benefit cost (20,365 ) (16,504 ) Net amount recognized $ (59,888 ) $ (36,168 ) Changes Recognized in Other Comprehensive Income Changes in plan assets and benefit obligations recognized in other comprehensive income Prior service cost $ (142 ) $ — Net loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost) $ 24,985 $ 83,610 Effect of exchange rates on amounts included in accumulated other comprehensive income (loss) (4,137 ) (26,366 ) Amounts recognized as a component of net periodic benefit cost Amortization, settlement or curtailment recognition of net transition obligation (17 ) (18 ) Amortization or curtailment recognition of prior service credit (cost) — 4,490 Amortization or settlement recognition of net loss (830 ) (234,067 ) Total recognized in other comprehensive loss $ 19,859 $ (172,351 ) Total recognized in net periodic cost and other comprehensive loss $ 26,137 $ 70,844 Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year Initial net obligation $ (14 ) $ (17 ) Prior service credit 10 — Net loss (1,808 ) (697 ) Total $ (1,812 ) $ (714 ) The accumulated benefit obligation for non-U.S. pension plans was $106.4 million and $88.5 million at October 29, 2016 and October 31, 2015 , respectively. Information relating to the Company’s non-U.S. plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets at each fiscal year end is presented in the following table: 2016 2015 Plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 129,711 $ 61,713 Fair value of plan assets $ 69,823 $ 22,300 Plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation $ 98,244 $ 36,986 Accumulated benefit obligation $ 93,164 $ 31,790 Fair value of plan assets $ 45,948 $ 487 Assumptions The range of assumptions used for the non-U.S. defined benefit plans reflects the different economic environments within the various countries. As of October 29, 2016, the Company changed the method utilized to estimate the service cost and interest cost components of net periodic benefit cost for certain of its defined benefit pension plans. Prior to October 29, 2016, the Company estimated the service cost and interest cost components of net periodic benefit costs using a single weighted average discount rate. As of October 29, 2016, the Company will use a spot rate approach to estimate the service and interest cost components of net periodic benefit cost for certain of its defined benefit pension plans as the Company believes this approach calculates a better estimate. The change did not, and is not expected to, materially affect the Company's Consolidated Statement of Income. The projected benefit obligation was determined using the following weighted-average assumptions: 2016 2015 Discount rate 2.92 % 3.64 % Rate of increase in compensation levels 3.36 % 3.05 % Net annual periodic pension cost was determined using the following weighted average assumptions: 2016 2015 Discount rate 3.64 % 2.95 % Expected long-term return on plan assets 5.65 % 5.80 % Rate of increase in compensation levels 3.05 % 2.77 % The expected long-term rate of return on assets is a weighted-average of the long-term rates of return selected for the various countries where the Company has funded pension plans. The expected long-term rate of return on assets assumption is selected based on the facts and circumstances that exist as of the measurement date and the specific portfolio mix of plan assets. Management, in conjunction with its actuaries, reviewed anticipated future long-term performance of individual asset categories and considered the asset allocation strategy adopted by the Company and/or the trustees of the plans. While the review considered recent fund performance and historical returns, the assumption is primarily a long-term prospective rate. The Company’s investment strategy is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, in order to maximize the return on assets, a majority of assets are invested in equities. Investments within each asset class are diversified to reduce the impact of losses in single investments. The use of derivative instruments is permitted where appropriate and necessary to achieve overall investment policy objectives and asset class targets. The Company establishes strategic asset allocation percentage targets and appropriate benchmarks for each significant asset class to obtain a prudent balance between return and risk. The interaction between plan assets and benefit obligations is periodically studied by the Company and its actuaries to assist in the establishment of strategic asset allocation targets. Fair value of plan assets The following table presents plan assets measured at fair value on a recurring basis by investment categories as of October 29, 2016 and October 31, 2015 using the same three-level hierarchy described in Note 2j, Fair Value, of these Notes to Consolidated Financial Statements: October 29, 2016 October 31, 2015 Fair Value Measurement at Reporting Date Using: Fair Value Measurement at Reporting Date Using: Quoted Significant Unobservable Total Quoted Significant Unobservable Total Unit trust funds(1) $ — $ 4,681 $ — $ 4,681 $ — $ 5,198 $ — $ 5,198 Equities(1) — 30,510 74 30,584 — 30,196 77 30,273 Fixed income securities(2) — 33,573 — 33,573 — 34,504 — 34,504 Cash and cash equivalents 985 — — 985 390 — — 390 Total assets measured at fair value $ 985 $ 68,764 $ 74 $ 69,823 $ 390 $ 69,898 $ 77 $ 70,365 _______________________________________ (1) The majority of the assets in these categories are invested in a mix of equities, including those from North America, Europe and Asia. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. Due to the nature of the underlying assets of these funds, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with governing documents. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded. Level 3 securities are valued at book value per share based upon the financial statements of the investment. (2) The majority of the assets in this category are invested in funds primarily concentrated in non-U.S. debt instruments. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. The table below presents a reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for fiscal years 2016 and 2015 . Properties Equities Balance as of November 1, 2014 $ 3,029 $ 121 Purchases, sales, and settlements, net (2,907 ) (37 ) Realized and unrealized return on plan assets 152 — Exchange rate adjustment (274 ) (7 ) Balance as of October 31, 2015 $ — $ 77 Exchange rate adjustment — (3 ) Balance as of October 29, 2016 $ — $ 74 Estimated future cash flows Expected fiscal 2017 Company contributions and estimated future benefit payments are as follows: Expected Company Contributions 2017 $ 5,187 Expected Benefit Payments 2017 $ 1,765 2018 $ 1,798 2019 $ 1,890 2020 $ 2,253 2021 $ 2,448 2022 through 2025 $ 19,074 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The reconciliation of income tax computed at the U.S. federal statutory rates to income tax expense is as follows: 2016 2015 2014 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Income tax provision reconciliation: Tax at statutory rate: $ 334,922 $ 283,540 $ 255,271 Net foreign income subject to lower tax rate (264,157 ) (198,061 ) (179,329 ) State income taxes, net of federal benefit (10,821 ) (4,425 ) (6,361 ) Valuation allowance 13,658 4,875 2,846 Federal research and development tax credits (16,237 ) (8,232 ) (1,165 ) Change in uncertain tax positions 4,797 2,449 719 Amortization of purchased intangibles 35,641 38,973 8,126 Acquisitions — — 15,656 Other, net (2,546 ) (5,883 ) 4,262 Total income tax provision $ 95,257 $ 113,236 $ 100,025 For financial reporting purposes, income before income taxes includes the following components: 2016 2015 2014 Pretax income: Domestic $ 2,642 $ 110,710 $ 127,084 Foreign 954,279 699,404 602,261 Income before income taxes $ 956,921 $ 810,114 $ 729,345 The components of the provision for income taxes are as follows: 2016 2015 2014 Current: Federal tax $ 27,790 $ 65,942 $ 128,591 State 1,409 695 316 Foreign 57,934 98,813 48,829 Total current $ 87,133 $ 165,450 $ 177,736 Deferred: Federal $ 325 $ (27,933 ) $ (74,263 ) State 2,820 541 (1,113 ) Foreign 4,979 (24,822 ) (2,335 ) Total deferred $ 8,124 $ (52,214 ) $ (77,711 ) The Company continues to intend to reinvest certain of its foreign earnings indefinitely. Accordingly, no U.S. income taxes have been provided for approximately $5.1 billion of unremitted earnings of international subsidiaries. As of October 29, 2016 , the amount of unrecognized deferred tax liability on these earnings was $1.4 billion . The significant components of the Company’s deferred tax assets and liabilities for the fiscal years ended October 29, 2016 and October 31, 2015 are as follows: 2016 2015 Deferred tax assets: Inventory reserves $ 22,527 $ 24,009 Deferred income on shipments to distributors 49,455 40,842 Reserves for compensation and benefits 48,062 45,515 Tax credit carryovers 68,669 64,838 Stock-based compensation 56,345 68,530 Depreciation 3,078 1,840 Acquisition-related costs 19,312 6,327 Other 47,482 36,711 Total gross deferred tax assets 314,930 288,612 Valuation allowance (67,094 ) (52,675 ) Total deferred tax assets 247,836 235,937 Deferred tax liabilities: Depreciation (59,218 ) (50,389 ) Undistributed earnings of foreign subsidiaries (60,986 ) (29,471 ) Acquisition-related intangibles (199,035 ) (217,961 ) Other (2,523 ) (2,971 ) Total gross deferred tax liabilities (321,762 ) (300,792 ) Net deferred tax liabilities $ (73,926 ) $ (64,855 ) The valuation allowances of $67.1 million and $52.7 million at October 29, 2016 and October 31, 2015 , respectively, are valuation allowances primarily for the Company’s state credit carryover. The Company believes that it is more-likely-than-not that these credit carryovers will not be realized and as a result has recorded a full valuation allowance as of October 29, 2016. The state credit carryover of $67.9 million will begin to expire in 2016. As of October 29, 2016 , the Company has foreign tax credit carryforwards of $0.7 million to offset future passive income. If not used, these carryforwards will expire between 2019 and 2023. The Company has provided for potential tax liabilities due in the various jurisdictions in which the Company operates. Judgment is required in determining the worldwide income tax expense provision. In the ordinary course of global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of cost reimbursement arrangements among related entities. Although the Company believes its estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in the historical income tax provisions and accruals. Such differences could have a material impact on the Company’s income tax provision and operating results in the period in which such determination is made. As of October 29, 2016 and October 31, 2015 , the Company had a liability of $75.6 million and $75.3 million , respectively, for unrealized tax benefits, all of which, if settled in the Company’s favor, would lower the Company’s effective tax rate in the period recorded. As of October 29, 2016 and October 31, 2015 , the Company had a liability of approximately $20.1 million and $16.1 million , respectively, for interest and penalties. The Company includes interest and penalties related to unrecognized tax benefits within the provision for taxes in the consolidated statements of income. The total liability as of October 29, 2016 and October 31, 2015 of $81.7 million and $81.0 million , respectively, for uncertain tax positions is classified as non-current, and is included in other non-current liabilities, because the Company believes that the ultimate payment or settlement of these liabilities may not occur within the next twelve months. The consolidated statements of income for fiscal year 2016 , fiscal 2015 and fiscal 2014 include $4.0 million , $4.1 million and $1.9 million , respectively, of interest and penalties related to these uncertain tax positions. Over the next fiscal year, the Company anticipates the liability to be reduced by $1.6 million for the possible expiration of an income tax statute of limitations. The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2014 through fiscal 2016 : Unrealized Tax Benefits Balance, November 2, 2013 $ 68,139 Additions for tax positions related to current year 214 Reductions for tax positions related to prior years (1,321 ) Reductions due to lapse of applicable statute of limitations (1,568 ) Balance, November 1, 2014 $ 65,464 Additions for tax positions related to current year 524 Additions for tax positions related to prior years 9,799 Reductions for tax positions related to prior years (2,745 ) Reductions due to lapse of applicable statute of limitations (1,260 ) Balance, October 31, 2015 $ 71,782 Additions for tax positions related to current year 2,539 Reductions for tax positions related to prior years (4,475 ) Reductions due to lapse of applicable statute of limitations (1,311 ) Balance, October 29, 2016 $ 68,535 The Company has filed a petition with the U.S. Tax Court for one open matter for fiscal years 2006 and 2007 that pertains to Section 965 of the Internal Revenue Code related to the beneficial tax treatment of dividends paid from foreign owned companies under The American Jobs Creation Act. The potential liability for this adjustment is $36.5 million . On September 18, 2013, in a matter not involving the Company, the U.S. Tax Court held that accounts receivable created under Rev. Proc. 99-32 may constitute indebtedness for purposes of Section 965 (b)(3) of the Internal Revenue Code and that the IRS was not precluded from reducing the beneficial dividend received deduction because of the increase in related-party indebtedness (BMC Software Inc. v Commissioner, 141 T.C. No. 5 2013). After analyzing the Tax Court’s decision, the Company has determined that its tax position with respect to the Section 965(b)(3) no longer meets the more likely than not standard of recognition for accounting purposes. Accordingly, the Company recorded a $36.5 million reserve for this matter in the fourth quarter of 2013. All of the Company's U.S. federal tax returns prior to fiscal 2013 are no longer subject to examination. All of the Company's Ireland tax returns prior to fiscal 2012 are no longer subject to examination. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Oct. 29, 2016 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On December 19, 2012, the Company entered into a five-year, $500.0 million senior unsecured revolving credit facility with certain institutional lenders (the Credit Agreement). On July 10, 2015 , the Company amended and restated the Credit Agreement. On September 23, 2016, the Company subsequently amended and restated the Credit Agreement. The Credit Agreement expires on July 10, 2020 and provides that the Company may borrow up to $750.0 million . Subject to closing the acquisition of Linear and the satisfaction of certain other conditions, the aggregate amount of commitments under the facility will increase to $1.0 billion from $750.0 million and the maximum covenant level will be temporarily revised. To date, the Company has not borrowed under this credit facility but the Company may borrow in the future and use the proceeds for repayment of existing indebtedness, stock repurchases, acquisitions, capital expenditures, working capital and other lawful corporate purposes. Revolving loans under the Credit Agreement (other than swing line loans) bear interest, at the Company's option, at either a rate equal to (a) the Eurodollar Rate (as defined in the Credit Agreement) plus a margin based on the Company's debt rating or (b) the Base Rate (defined as the highest of (i) the Bank of America prime rate, (ii) the Federal Funds Rate (as defined in the Credit Agreement) plus .50% or (iii) one month Eurodollar Rate plus a margin based on the Company's debt rating. The terms of the facility impose restrictions on the Company’s ability to undertake certain transactions, to create certain liens on assets and to incur certain subsidiary indebtedness. In addition, the Credit Agreement contains a consolidated leverage ratio covenant of total consolidated funded debt to consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of not greater than 3.0 to 1.0 . As of October 29, 2016 , the Company was compliant with these covenants . |
Debt
Debt | 12 Months Ended |
Oct. 29, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt On April 4, 2011 , the Company issued $375.0 million aggregate principal amount of 3.0% senior unsecured notes due April 15, 2016 (the 2016 Notes) with semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing October 15, 2011 . The net proceeds of the offering were $370.5 million , after issuing at a discount and deducting expenses, underwriting fees and commissions. On December 18, 2015 , the Company redeemed the 2016 Notes. The redemption price was 100.79% of the principal amount for the 2016 Notes. In accordance with the applicable guidance, the Company concluded that the debt transaction qualified as a debt extinguishment and recognized a net loss of approximately $3.3 million recorded in the consolidated statement of income in other, net, within non-operating (income) expense. This loss was comprised of the make-whole premium of $3.0 million paid to holders of the 2016 Notes in accordance with the terms of the notes and approximately $0.3 million of debt issuance and discount costs that remained to be amortized. The write-off of the debt issuance costs and discount are reflected in the Company’s consolidated statement of cash flows within operating activities, and the make-whole premium is reflected within financing activities. On June 3, 2013 , the Company issued $500.0 million aggregate principal amount of 2.875% senior unsecured notes due June 1, 2023 (the 2023 Notes) with semi-annual fixed interest payments due on June 1 and December 1 of each year, commencing December 1, 2013 . Prior to issuing the 2023 Notes, on April 24, 2013 , the Company entered into a treasury rate lock agreement with Bank of America. This agreement allowed the Company to lock a 10-year US Treasury rate of 1.7845% through June 14, 2013 for its anticipated issuance of the 2023 Notes. Upon issuing the 2023 Notes, the Company simultaneously terminated the treasury rate lock agreement resulting in a gain of approximately $11.0 million . This gain will be amortized into interest expense over the 10-year term of the 2023 Notes. The sale of the 2023 Notes was made pursuant to the terms of an underwriting agreement, dated as of May 22, 2013 , among the Company and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Credit Suisse Securities (USA) LLC, as the representatives of the several underwriters named therein. The net proceeds of the offering were $493.9 million , after discount and issuance costs. Debt discount and issuance costs will be amortized through interest expense over the term of the 2023 Notes. The indenture governing the 2023 Notes contains covenants that may limit the Company's ability to: incur, create, assume or guarantee any debt for borrowed money secured by a lien upon a principal property; enter into sale and lease-back transactions with respect to a principal property; and consolidate with or merge into, or transfer or lease all or substantially all of its assets to, any other party. As of October 29, 2016 , the Company was compliant with these covenants . The notes are subordinated to any future secured debt and to the other liabilities of the Company's subsidiaries. On July 22, 2014, the Company entered into a 90-day term loan facility in an aggregate principal amount of $2.0 billion with Credit Suisse AG, as Administrative Agent, and each lender from time to time party thereto (the Term Loan Agreement) to finance the Hittite Acquisition. On August 29, 2014 the outstanding principal balance due under the Term Loan Agreement was repaid. On December 14, 2015 , the Company issued $850.0 million aggregate principal amount of 3.9% senior unsecured notes due December 15, 2025 (the 2025 Notes) and $400.0 million aggregate principal amount of 5.3% senior unsecured notes due December 15, 2045 (the 2045 Notes) with semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing June 15, 2016 . The sale of the 2025 Notes and 2045 Notes was made pursuant to the terms of an underwriting agreement, dated as of December 3, 2015 among the Company and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Credit Suisse Securities (USA) LLC, as the representatives of the several underwriters named therein. The net proceeds of the offering were $1.2 billion , after discount and issuance costs. Debt discount and issuance costs will be amortized through interest expense over the term of the 2025 Notes and 2045 Notes. The indenture governing the 2025 Notes and 2045 Notes contains covenants that may limit the Company's ability to: incur, create, assume or guarantee any debt for borrowed money secured by a lien upon a principal property; enter into sale and lease-back transactions with respect to a principal property; and consolidate with or merge into, or transfer or lease all or substantially all of its assets to, any other party. As of October 29, 2016 , the Company was compliant with these covenants . The 2025 Notes and 2045 Notes are subordinated to any future secured debt and to the other liabilities of the Company's subsidiaries. On July 26, 2016 , the Company entered into a definitive agreement to acquire Linear. In connection with the proposed acquisition, the Company announced that it had obtained a 364-day senior unsecured bridge facility in an aggregate principal amount of up to $7.5 billion (364-day Bridge) and it had obtained a 90-day senior unsecured bridge facility in an aggregate principal amount of up to $4.1 billion . The bridge financing commitments expire on April 26, 2017, but may be extended until October 26, 2017 under certain conditions. As discussed below, $5.0 billion of the bridge financing has been terminated. The Company expects to incur fees for the bridge financing commitments of approximately $37.8 million , of which $28.7 million was recorded as debt issuance costs in the third quarter of fiscal 2016 and will be amortized into interest expense over the term of the bridge financing commitments. As a result of entering into the Term Loan Agreement, $13.7 million of unamortized bridge fees were accelerated and amortized into interest expense in the fourth quarter of fiscal 2016. On September 23, 2016, the Company entered into a term loan facility consisting of a 3-year unsecured term loan facility in the principal amount of $2.5 billion and a 5-year unsecured term loan facility in the principal amount of $2.5 billion established pursuant to a Credit Agreement (Term Loan Agreement) with the Company as the borrower and JP Morgan Chase Bank, N.A. as administrative agent and other banks identified therein as lenders. The Term Loan Agreement replaces $5.0 billion of the 364-Bridge. The closing date and availability of the initial borrowings under the Term Loan Agreement are conditioned upon the consummation of the acquisition of Linear. The commitments are automatically terminated on the earlier of the making of the loans to the Company on the closing date of the acquisition of Linear or October 26, 2017. The Company has agreed to pay a ticking fee based on the Company’s debt rating from time to time, accruing beginning 60 days following the effectiveness of the Term Loan Agreement and continuing until the earlier of the termination of the commitments or the closing date of the acquisition of Linear. In addition, the Company expects to incur approximately $4.0 million in customary fees, including ticking fees, related to the future financing arrangements as well as its revolving credit facility, of which approximately $0.7 million was recorded as debt issuance costs in fiscal 2016 and will be amortized into interest expense over the term of the associated financing arrangements. Additional fees will be incurred when the bridge financing commitments are drawn and in connection with the Term Loan Agreement. The Company’s debt consisted of the following as of October 29, 2016 and October 31, 2015 : October 29, 2016 October 31, 2015 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 2016 Notes $ — $ — $ 375,000 $ 406 2023 Notes 500,000 4,047 500,000 4,659 2025 Notes 850,000 8,034 — — 2045 Notes 400,000 5,742 — — Total $ 1,750,000 $ 17,823 $ 875,000 $ 5,065 Debt, current $ — $ — $ 375,000 $ 406 Long-term debt $ 1,750,000 $ 17,823 $ 500,000 $ 4,659 The Company’s principal payments related to its debt obligations are as follows: $500.0 million in fiscal 2023, $850.0 million in fiscal 2025 and $400.0 million in fiscal 2045. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 29, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 21, 2016 , the Board of Directors of the Company declared a cash dividend of $0.42 per outstanding share of common stock. The dividend will be paid on December 13, 2016 to all shareholders of record at the close of business on December 2, 2016 . |
Supplementary Financial Informa
Supplementary Financial Information (Unaudited) | 12 Months Ended |
Oct. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) | SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) (thousands, except per share amounts and as noted) The Company’s fiscal year is the 52 -week or 53 -week period ending on the Saturday closest to the last day in October. The Company's interim periods operates on a 4-4-5 fiscal calendar, where each fiscal quarter is comprised of two 4-week periods and one 5-week period, with each week ending on a Saturday. The Company's fiscal year quarterly financial information for fiscal 2016 and fiscal 2015 : 4Q16 3Q16 2Q16 1Q16 4Q15 3Q15 2Q15 1Q15 Revenue 1,003,623 869,591 778,766 769,429 978,722 863,365 821,019 771,986 Cost of sales 336,936 297,301 267,863 292,136 336,926 294,328 276,197 268,379 Gross margin 666,687 572,290 510,903 477,293 641,796 569,037 544,822 503,607 % of Revenue 66.4 % 65.8 % 65.6 % 62.0 % 65.6 % 65.9 % 66.4 % 65.2 % Research and development 172,926 163,227 160,235 157,428 170,736 160,784 154,233 151,706 Selling, marketing, general and administrative 118,881 122,909 112,186 107,462 121,400 120,030 117,371 120,171 Special charges — — 13,684 — — — — — Other operating expense (a) — — — — 223,672 — — — Amortization of intangibles 17,899 17,447 17,419 17,358 17,358 22,954 24,210 23,796 Total operating expenses 309,706 303,583 303,524 282,248 533,166 303,768 295,814 295,673 Operating income 356,981 268,707 207,379 195,045 108,630 265,269 249,008 207,934 % of Revenue 36 % 31 % 27 % 25 % 11 % 31 % 30 % 27 % Nonoperating (income) expenses: Interest expense (b) 38,764 18,476 18,455 13,062 6,739 6,755 6,880 6,656 Interest income (7,114 ) (5,665 ) (5,243 ) (3,199 ) (2,343 ) (2,229 ) (2,009 ) (2,044 ) Other, net 1,897 (504 ) (743 ) 3,005 (443 ) 1,265 (1,052 ) 2,552 Total nonoperating (income) expense 33,547 12,307 12,469 12,868 3,953 5,791 3,819 7,164 Income before income taxes 323,434 256,400 194,910 182,177 104,677 259,478 245,189 200,770 % of Revenue 32 % 29 % 25 % 24 % 11 % 30 % 30 % 26 % Provision for income taxes (c) 27,277 25,970 24,337 17,673 8,372 43,000 39,851 22,013 Net income 296,157 230,430 170,573 164,504 96,305 216,478 205,338 178,757 % of Revenue 30 % 26 % 22 % 21 % 10 % 25 % 25 % 23 % Basic earnings per share 0.96 0.75 0.55 0.53 0.31 0.69 0.66 0.57 Diluted earnings per share 0.95 0.74 0.55 0.52 0.30 0.68 0.65 0.57 Shares used to compute earnings per share (in thousands): Basic 307,854 307,135 308,790 311,166 312,829 313,877 312,660 311,274 Diluted 311,633 310,558 312,250 314,793 316,571 318,187 317,047 315,684 Dividends declared per share 0.42 0.42 0.42 0.40 0.40 0.40 0.40 0.37 a) The Company converted the benefits provided to participants in the Company’s Irish defined benefits pension plan to benefits provided under the Company’s Irish defined contribution plan. As a result, the Company recorded expenses of $ 223.7 million , including settlement charges, legal, accounting and other professional fees to settle the pension obligation. b) Interest expense in the fourth quarter of fiscal 2016 includes $13.7 million related to accelerated amortization of fees associated with the bridge financing commitments related to the proposed Linear acquisition. c) Provision for income taxes in the fourth quarter of fiscal 2015 includes a benefit of $13.0 million for the reversal of certain prior period tax liabilities and in the first quarter of fiscal 2015 includes a tax benefit of $7.0 million from the reinstatement of the U.S. federal research and development tax credit in December 2014 retroactive to January 1, 2014 and a tax benefit of $3.8 million as a result of an acquisition accounting adjustment. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 29, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended October 29, 2016 , October 31, 2015 and November 1, 2014 (dollar amounts in thousands) Description Balance at Beginning of Period Additions (Reductions) Charged to Income Statement Other Deductions Balance at Accounts Receivable Reserves and Allowances: Year ended November 1, 2014 $ 2,593 $ 4,563 $ — $ 4,237 $ 2,919 Year ended October 31, 2015 $ 2,919 $ 2,686 $ — $ 3,524 $ 2,081 Year ended October 29, 2016 $ 2,081 $ 3,936 $ — $ 900 $ 5,117 Valuation Reserve for Deferred Tax Asset: Year ended November 1, 2014 $ 43,502 $ 4,297 $ 4,265 $ — $ 52,064 Year ended October 31, 2015 $ 52,064 $ 4,876 $ — $ 4,265 $ 52,675 Year ended October 29, 2016 $ 52,675 $ 13,658 $ 761 $ — $ 67,094 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Upon consolidation, all intercompany accounts and transactions are eliminated. Certain amounts reported in previous years have been reclassified to conform to the presentation for the fiscal year ended October 29, 2016 ( fiscal 2016 ). As further discussed in Note 2t, New Accounting Pronouncements , the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) , in the first quarter of fiscal 2016. As shown in the table below, pursuant to the guidance in ASU 2015-03 the Company has reclassified unamortized debt issuance costs associated with its senior notes in the Condensed Consolidated Balance Sheet as of October 31, 2015 as follows (in thousands): October 31, 2015 as presented Reclassifications October 31, 2015 Other assets $ 43,962 $ (3,401 ) $ 40,561 Total other assets $ 2,338,520 $ (3,401 ) $ 2,335,119 Total assets $ 7,062,178 $ (3,401 ) $ 7,058,777 Current debt $ 374,839 $ (245 ) $ 374,594 Current liabilities $ 1,113,830 $ (245 ) $ 1,113,585 Long-term debt $ 498,497 $ (3,156 ) $ 495,341 Total non-current liabilities $ 875,389 $ (3,156 ) $ 872,233 Total liabilities and shareholders equity $ 7,062,178 $ (3,401 ) $ 7,058,777 The Company’s fiscal year is the 52 -week or 53 -week period ending on the Saturday closest to the last day in October. Fiscal 2016 , the fiscal year ended October 31, 2015 (fiscal 2015 ) and the fiscal year ended November 1, 2014 (fiscal 2014 ) were 52 -week periods. On July 26, 2016, the Company entered into a definitive agreement (the Merger Agreement) to acquire Linear Technology Corporation (Linear), an independent manufacturer of high performance linear integrated circuits. The Company currently expects the transaction to be completed by the end of the Company's second quarter of fiscal 2017. On July 22, 2014, the Company completed its acquisition of Hittite Microwave Corporation (Hittite), a company that designed and developed high performance integrated circuits, modules, subsystems and instrumentation for radio frequency, microwave and millimeterwave applications. The total consideration paid to acquire Hittite was approximately $2.4 billion , financed through a combination of existing cash on hand and a 90-day term loan facility of $2.0 billion . The acquisition of Hittite is referred to as the Hittite Acquisition. The Consolidated Financial Statements include the financial results of Hittite prospectively from July 22, 2014, the closing date of the Hittite Acquisition. See Note 6, Acquisitions , of these notes to Consolidated Financial Statements for further discussion related to the proposed acquisition of Linear and the acquisition of Hittite. |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents are highly liquid investments with insignificant interest rate risk and maturities of ninety days or less at the time of acquisition. Cash, cash equivalents and short-term investments consist primarily of institutional money market funds, corporate obligations such as commercial paper and floating rate notes, bonds and bank time deposits. The Company classifies its investments in readily marketable debt and equity securities as “held-to-maturity,” “available-for-sale” or “trading” at the time of purchase. There were no transfers between investment classifications in any of the fiscal years presented. Held-to-maturity securities, which are carried at amortized cost, include only those securities the Company has the positive intent and ability to hold to maturity. Securities such as bank time deposits, which by their nature are typically held to maturity, are classified as such. The Company’s other readily marketable cash equivalents and short-term investments are classified as available-for-sale. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of related tax, reported in accumulated other comprehensive (loss) income. Adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease in accumulated other comprehensive (loss) income, unless the adjustment is considered an other-than-temporary impairment, in which case the adjustment is recorded as a charge in the statement of income. The Company’s deferred compensation plan investments are classified as trading. See Note 7, D eferred Compensation Plan Investments, of these Notes to Consolidated Financial Statements for additional information on these investments. There were no cash equivalents or short-term investments classified as trading at October 29, 2016 or October 31, 2015 . The Company periodically evaluates its investments for impairment. There were no other-than-temporary impairments of short-term investments in any of the fiscal years presented. |
Supplemental Cash Flow Statement Information | Supplemental Cash Flow Statement Information 2016 2015 2014 Cash paid during the fiscal year for: Income taxes $ 77,918 $ 142,931 $ 73,067 Interest $ 41,701 $ 25,625 $ 27,931 |
Inventories | Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market. The valuation of inventory requires the Company to estimate obsolete or excess inventory as well as inventory that is not of saleable quality. The Company employs a variety of methodologies to determine the net realizable value of its inventory. While a portion of the calculation to record inventory at its net realizable value is based on the age of the inventory and lower of cost or market calculations, a key factor in estimating obsolete or excess inventory requires the Company to estimate the future demand for its products. If actual demand is less than the Company’s estimates, impairment charges, which are recorded to cost of sales, may need to be recorded in future periods. Inventory in excess of saleable amounts is not valued, and the remaining inventory is valued at the lower of cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost, less allowances for depreciation. The straight-line method of depreciation is used for all classes of assets for financial statement purposes while both straight-line and accelerated methods are used for income tax purposes. Leasehold improvements are depreciated over the lesser of the term of the lease or the useful life of the asset. Repairs and maintenance charges are expensed as incurred. Depreciation is based on the following ranges of estimated useful lives: Buildings Up to 25 years Machinery & equipment 3-8 years Office equipment 3-8 years Depreciation expense for property, plant and equipment was $134.5 million , $130.1 million and $114.1 million in fiscal 2016 , 2015 and 2014 , respectively. The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Recoverability of these assets is determined by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate over their remaining economic lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. If such assets are not impaired, but their useful lives have decreased, the remaining net book value is depreciated over the revised useful life. We have not recorded any material impairment charges related to our property, plant and equipment in fiscal 2016 , fiscal 2015 or fiscal 2014 . |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company evaluates goodwill for impairment annually, as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable. The Company tests goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis on the first day of the fourth quarter (on or about August 1) or more frequently if indicators of impairment exist. For the Company’s latest annual impairment assessment that occurred as of July 31, 2016 , the Company identified its reporting units to be its seven operating segments. The performance of the test involves a two-step process. The first step of the quantitative impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company determines the fair value of its reporting units using a weighting of the income and market approaches. Under the income approach, the Company uses a discounted cash flow methodology which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company uses the guideline public company method. Under this method the Company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. In order to assess the reasonableness of the calculated reporting unit fair values, the Company reconciles the aggregate fair values of its reporting units determined, as described above, to its current market capitalization, allowing for a reasonable control premium. If the carrying amount of a reporting unit, calculated using the above approaches, exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that reporting unit. There was no impairment of goodwill in any of the fiscal years presented. The Company’s next annual impairment assessment will be performed as of the first day of the fourth quarter of the fiscal year ending October 28, 2017 (fiscal 2017 ) unless indicators arise that would require the Company to reevaluate at an earlier date. The following table presents the changes in goodwill during fiscal 2016 and fiscal 2015 : 2016 2015 Balance at beginning of year $ 1,636,526 $ 1,642,438 Acquisition of Hittite (Note 6) (1) — (1,105 ) Goodwill adjustment related to other acquisitions (2) 44,046 3,663 Foreign currency translation adjustment (1,456 ) (8,470 ) Balance at end of year $ 1,679,116 $ 1,636,526 (1) Amount in fiscal 2015 represents changes to goodwill as a result of finalizing the acquisition accounting related to the Hittite Acquisition. (2) Represents goodwill related to other acquisitions that were not material to the Company on either an individual or aggregate basis. Intangible Assets The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of assets may not be recoverable. Recoverability of these assets is determined by comparison of their carrying value to the estimated future undiscounted cash flows the assets are expected to generate over their remaining estimated useful lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their fair value determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. Indefinite-lived intangible assets are tested for impairment on an annual basis on the first day of the fourth quarter (on or about August 1) or more frequently if indicators of impairment exist. The impairment test involves a qualitative assessment on the indefinite-lived intangible assets to determine whether it is more likely-than not that the indefinite-lived intangible asset is impaired. If it is determined that the fair value of the indefinite-lived intangible asset is less than the carrying value, the Company would recognize into earnings the amount by which the carrying value of the assets exceeds the fair value. No impairment of intangible assets resulted from the impairment tests in any of the fiscal years presented. Definite-lived intangible assets, are amortized on a straight-line basis over their estimated useful lives or on an accelerated method of amortization that is expected to reflect the estimated pattern of economic use. IPR&D assets are considered indefinite-lived intangible assets until completion or abandonment of the associated R&D efforts. Upon completion of the projects, the IPR&D assets will be amortized over their estimated useful lives. As of October 29, 2016 and October 31, 2015 , the Company’s intangible assets consisted of the following: October 29, 2016 October 31, 2015 Gross Carrying Accumulated Gross Carrying Amount Accumulated Amortization Customer relationships $ 649,159 $ 158,979 $ 624,900 $ 88,913 Technology-based 22,231 8,911 15,100 4,834 Trade-name 600 60 — — Backlog 200 — — — IPR&D (1) 46,175 1,047 37,264 — Total (2) (3) $ 718,365 $ 168,997 $ 677,264 $ 93,747 ________ (1) Includes $16.5 million of IPR&D assets that have completed their R&D efforts and are being amortized over their estimated useful lives. (2) Foreign intangible asset carrying amounts are affected by foreign currency translation. (3) Increases in intangible assets relate to other acquisitions that were not material to the Company on either an individual or aggregate basis. Amortization expense related to finite-lived intangible assets was $75.3 million , $92.1 million and $27.9 million in fiscal 2016 , 2015 and 2014 , respectively. The remaining amortization expense will be recognized over a weighted average life of approximately 3.5 years . The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2017 $ 79,794 2018 $ 78,475 2019 $ 75,286 2020 $ 75,047 2021 $ 74,627 |
Grant Accounting | Grant Accounting Certain of the Company’s foreign subsidiaries have received grants from governmental agencies. These grants include capital, employment and research and development grants. Capital grants for the acquisition of property and equipment are netted against the related capital expenditures and amortized as a credit to depreciation expense over the estimated useful life of the related asset. Employment grants, which relate to employee hiring and training, and research and development grants are recognized in earnings in the period in which the related expenditures are incurred by the Company and the amounts were not material in fiscal 2016 , 2015 or 2014 . |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency for the Company’s foreign sales and research and development operations is the applicable local currency. Gains and losses resulting from translation of these foreign currencies into U.S. dollars are recorded in accumulated other comprehensive (loss) income. Transaction gains and losses and re-measurement of foreign currency denominated assets and liabilities are included in income currently, including those at the Company’s principal foreign manufacturing operations where the functional currency is the U.S. dollar. Foreign currency transaction gains or losses included in other expenses, net, were not material in fiscal 2016 , 2015 or 2014 . |
Derivative Instruments and Hedging Agreements | Derivative Instruments and Hedging Agreements Foreign Exchange Exposure Management — The Company enters into forward foreign currency exchange contracts to offset certain operational and balance sheet exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U.S. dollar, primarily the Euro; other significant exposures include the Philippine Peso, the Japanese Yen and the British Pound. These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature. The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less . Hedges related to anticipated transactions are designated and documented at the inception of the respective hedges as cash flow hedges and are evaluated for effectiveness monthly. Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified. As the terms of the contract and the underlying transaction are matched at inception, forward contract effectiveness is calculated by comparing the change in fair value of the contract to the change in the forward value of the anticipated transaction, with the effective portion of the gain or loss on the derivative reported as a component of accumulated other comprehensive (loss) income (OCI) in shareholders’ equity and reclassified into earnings in the same period during which the hedged transaction affects earnings. Any residual change in fair value of the instruments, or ineffectiveness, is recognized immediately in other (income) expense. |
Fair Value | 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 October 29, 2016 and October 31, 2015 . 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 October 29, 2016 and October 31, 2015 , the Company held $252.5 million and $76.4 million , respectively, of cash and held-to-maturity investments that were excluded from the tables below. October 29, 2016 Fair Value measurement at Reporting Date using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets Cash equivalents: Available-for-sale: Institutional money market funds $ 277,595 $ — $ — $ 277,595 Corporate obligations (1) — 415,660 — 415,660 Short - term investments: Available-for-sale: Securities with one year or less to maturity: Corporate obligations (1) — 2,518,148 — 2,518,148 Floating rate notes, issued at par — 29,989 — 29,989 Floating rate notes (1) — 561,874 — 561,874 Other assets: Deferred compensation investments 26,916 — — 26,916 Total assets measured at fair value $ 304,511 $ 3,525,671 $ — $ 3,830,182 Liabilities Contingent consideration — — 7,555 7,555 Forward foreign currency exchange contracts (2) — 5,231 — 5,231 Total liabilities measured at fair value $ — $ 5,231 $ 7,555 $ 12,786 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2016 was $3.5 billion . (2) The Company has netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of these Notes to Consolidated Financial Statements for more information related to the Company's master netting arrangements. October 31, 2015 Fair Value measurement at Reporting Date using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets Cash equivalents: Available-for-sale: Institutional money market funds $ 198,853 $ — $ — $ 198,853 Corporate obligations (1) — 609,082 — 609,082 Short - term investments: Available-for-sale: Securities with one year or less to maturity: Corporate obligations (1) — 1,899,374 — 1,899,374 Floating rate notes, issued at par — 99,648 — 99,648 Floating rate notes (1) — 145,553 — 145,553 Other assets: Deferred compensation investments 24,124 — — 24,124 Total assets measured at fair value $ 222,977 $ 2,753,657 $ — $ 2,976,634 Liabilities Contingent consideration — — 2,843 2,843 Forward foreign currency exchange contracts (2) — 3,083 — 3,083 Interest rate swap agreements — 32,737 — 32,737 Total liabilities measured at fair value $ — $ 35,820 $ 2,843 $ 38,663 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 31, 2015 was $2.6 billion . (2) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of these Notes to 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 and short-term investments — 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. Interest rate swap agreements — The fair value of interest rate swap agreements is based on the quoted market price for the same or similar financial instruments. Contingent consideration — The fair value of the contingent consideration was estimated utilizing the income approach and is based upon significant inputs not observable in the market. The income approach is based on two steps. The first step involves a projection of the cash flows that is based on the Company’s estimates of the timing and probability of achieving the defined milestones. The second step involves converting the cash flows into a present value equivalent through discounting. The discount rate reflects the Baa costs of debt plus the relevant risk associated with the asset and the time value of money. The fair value measurement of the contingent consideration encompasses the following significant unobservable inputs: Unobservable Inputs Range Potential contingent consideration payments $8,500 Discount rate 0% - 2% Timing of cash flows 1 to 3 years Probability of achievement 90% - 100% Changes in the fair value of the contingent consideration are recognized in operating income in the period of the estimated fair value change. Significant increases or decreases in any of the inputs in isolation may result in a fluctuation in the fair value measurement. The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) from November 1, 2014 to October 29, 2016 : Contingent Consideration Balance as of November 1, 2014 $ 4,806 Payment made (1) (2,000 ) Fair value adjustment (2) (137 ) Effect of foreign currency 174 Balance as of October 31, 2015 $ 2,843 Contingent consideration liability recorded 7,500 Payment made (1) (1,489 ) Fair value adjustment (2) (888 ) Effect of foreign currency (411 ) Balance as of October 29, 2016 $ 7,555 (1) The payment is reflected in the statements of cash flows as cash used in financing activities related to the liability recognized at fair value as of the acquisition date and as cash provided by operating activities related to the fair value adjustments previously recognized in earnings. (2) Recorded in research and development expense in the consolidated statements of income. Financial Instruments Not Recorded at Fair Value on a Recurring Basis On April 4, 2011 , the Company issued the 2016 Notes with semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing October 15, 2011 . In December 2015, the Company redeemed the 2016 Notes. The fair value of the 2016 Notes as of October 31, 2015 was $378.6 million , and was classified as a Level 1 measurement according to the fair value hierarchy. On June 3, 2013 , the Company issued the 2023 Notes with semi-annual fixed interest payments due on June 1 and December 1 of each year, commencing December 1, 2013 . Based on quotes received from third-party banks, the fair value of the 2023 Notes as of October 29, 2016 and October 31, 2015 was $501.3 million and $480.9 million , respectively, and is classified as a Level 1 measurement according to the fair value hierarchy. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates relate to the useful lives of fixed assets and identified intangible assets, allowances for doubtful accounts and customer returns, the net realizable value of inventory, potential reserves relating to litigation matters, accrued liabilities, accrued taxes, deferred tax valuation allowances, assumptions pertaining to share-based payments and other reserves. Actual results could differ from those estimates and such differences may be material to the financial statements. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments and trade accounts receivable. The Company maintains cash, cash equivalents and short-term and long-term investments with high credit quality counterparties, continuously monitors the amount of credit exposure to any one issuer and diversifies its investments in order to minimize its credit risk. The Company sells its products to distributors and original equipment manufacturers involved in a variety of industries including industrial process automation, instrumentation, defense/aerospace, automotive, communications, computers and computer peripherals and consumer electronics. The Company has adopted credit policies and standards to accommodate growth in these markets. The Company performs continuing credit evaluations of its customers’ financial condition and although the Company generally does not require collateral, the Company may require letters of credit from customers in certain circumstances. The Company provides reserves for estimated amounts of accounts receivable that may not be collected. The Company's largest single customer represented approximately 12% of fiscal 2016 and 13% of fiscal 2015 revenue. No sales to an individual customer accounted for more than 10% of fiscal 2014 revenue. |
Concentration of Other Risks | Concentration of Other Risks The semiconductor industry is characterized by rapid technological change, competitive pricing pressures and cyclical market patterns. The Company’s financial results are affected by a wide variety of factors, including general economic conditions worldwide, economic conditions specific to the semiconductor industry, the timely implementation of new manufacturing technologies, the ability to safeguard patents and intellectual property in a rapidly evolving market and reliance on assembly and test subcontractors, third-party wafer fabricators and independent distributors. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns at various times. The Company is exposed to the risk of obsolescence of its inventory depending on the mix of future business. Additionally, a large portion of the Company’s purchases of external wafer and foundry services are from a limited number of suppliers, primarily Taiwan Semiconductor Manufacturing Company (TSMC). If TSMC or any of the Company’s other key suppliers are unable or unwilling to manufacture and deliver sufficient quantities of components, on the time schedule and of the quality that the Company requires, the Company may be forced to engage additional or replacement suppliers, which could result in significant expenses and disruptions or delays in manufacturing, product development and shipment of product to the Company’s customers. Although the Company has experienced shortages of components, materials and external foundry services from time to time, these items have generally been available to the Company as needed. |
Revenue Recognition | Revenue Recognition Revenue from product sales to customers is generally recognized when title passes, which is upon shipment in the U.S. and in certain foreign counties. Revenue from product sales to customers in other foreign countries is subsequent to product shipment. Title for these shipments to these other foreign countries ordinarily passes within a week of shipment. Accordingly, the Company defers the revenue recognized relating to these other foreign countries until title has passed. For multiple element arrangements, the Company allocates arrangement consideration among the elements based on the relative fair values of those elements as determined using vendor-specific objective evidence or third-party evidence. The Company uses its best estimate of selling price to allocate arrangement consideration between the deliverables in cases where neither vendor-specific objective evidence nor third-party evidence is available. A reserve for sales returns and allowances for customers is recorded based on historical experience or specific identification of an event necessitating a reserve. Revenue from contracts with the United States government, government prime contractors and some commercial customers is generally recorded on a percentage of completion basis using either units delivered or costs incurred as the measurement basis for progress towards completion. The output measure is used to measure results directly and is generally the best measure of progress toward completion in circumstances in which a reliable measure of output can be established. Estimated revenue in excess of amounts billed is reported as unbilled receivables. Contract accounting requires judgment in estimating costs and assumptions related to technical issues and delivery schedule. Contract costs include material, subcontract costs, labor and an allocation of indirect costs. The estimation of costs at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Changes in contract performance, estimated gross margin, including the impact of final contract settlements, and estimated losses are recognized in the period in which the changes or losses are determined. In all regions of the world, the Company defers revenue and the related cost of sales on shipments to distributors until the distributors resell the products to their customers. As a result, the Company’s revenue fully reflects end customer purchases and is not impacted by distributor inventory levels. Sales to distributors are made under agreements that allow distributors to receive price-adjustment credits, as discussed below, and to return qualifying products for credit, as determined by the Company, in order to reduce the amounts of slow-moving, discontinued or obsolete product from their inventory. These agreements limit such returns to a certain percentage of the value of the Company’s shipments to that distributor during the prior quarter. In addition, distributors are allowed to return unsold products if the Company terminates the relationship with the distributor. Distributors are granted price-adjustment credits for sales to their customers when the distributor’s standard cost (i.e., the Company’s sales price to the distributor) does not provide the distributor with an appropriate margin on its sales to its customers. As distributors negotiate selling prices with their customers, the final sales price agreed upon with the customer will be influenced by many factors, including the particular product being sold, the quantity ordered, the particular customer, the geographic location of the distributor and the competitive landscape. As a result, the distributor may request and receive a price-adjustment credit from the Company to allow the distributor to earn an appropriate margin on the transaction. Distributors are also granted price-adjustment credits in the event of a price decrease subsequent to the date the product was shipped and billed to the distributor. Generally, the Company will provide a credit equal to the difference between the price paid by the distributor (less any prior credits on such products) and the new price for the product multiplied by the quantity of the specific product in the distributor’s inventory at the time of the price decrease. Given the uncertainties associated with the levels of price-adjustment credits to be granted to distributors, the sales price to the distributor is not fixed or determinable until the distributor resells the products to their customers. Therefore, the Company defers revenue recognition from sales to distributors until the distributors have sold the products to their customers. Generally, title to the inventory transfers to the distributor at the time of shipment or delivery to the distributor, and payment from the distributor is due in accordance with the Company’s standard payment terms. These payment terms are not contingent upon the distributors’ sale of the products to their customers. Upon title transfer to distributors, inventory is reduced for the cost of goods shipped, the margin (sales less cost of sales) is recorded as “deferred income on shipments to distributors, net” and an account receivable is recorded. Shipping costs are charged to cost of sales as incurred. The deferred costs of sales to distributors have historically had very little risk of impairment due to the margins the Company earns on sales of its products and the relatively long life-cycle of the Company’s products. Product returns from distributors that are ultimately scrapped have historically been immaterial. In addition, price protection and price-adjustment credits granted to distributors historically have not exceeded the margins the Company earns on sales of its products. The Company continuously monitors the level and nature of product returns and is in frequent contact with the distributors to ensure reserves are established for all known material issues. As of October 29, 2016 and October 31, 2015 , the Company had gross deferred revenue of $432.3 million and $379.9 million , respectively, and gross deferred cost of sales of $80.8 million and $79.8 million , respectively. The Company generally offers a twelve -month warranty for its products. The Company’s warranty policy provides for replacement of defective products. Specific accruals are recorded for known product warranty issues. Product warranty expenses during fiscal 2016 , 2015 and 2014 were not material . |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Other comprehensive (loss) income includes certain transactions that have generally been reported in the consolidated statement of shareholders’ equity. The components of accumulated other comprehensive loss at October 29, 2016 and October 31, 2015 consisted of the following, net of tax: Foreign currency translation adjustment Unrealized holding gains on available for sale securities classified as short-term investments Unrealized holding (losses) on available for sale securities classified as short-term investments Unrealized holding Gains on Derivatives Pension Plans Total October 31, 2015 $ (18,057 ) $ 216 $ (544 ) $ (17,692 ) $ (14,774 ) $ (50,851 ) Other comprehensive income before reclassifications (4,831 ) 613 290 (5,532 ) (14,212 ) (23,672 ) Amounts reclassified out of other comprehensive income — — — 4,487 847 5,334 Tax effects (1,175 ) (29 ) (27 ) (147 ) (3,247 ) (4,625 ) Other comprehensive income (6,006 ) 584 263 (1,192 ) (16,612 ) (22,963 ) October 29, 2016 $ (24,063 ) $ 800 $ (281 ) $ (18,884 ) $ (31,386 ) $ (73,814 ) The amounts reclassified out of accumulated other comprehensive loss into the consolidated statement of income, with presentation location during each period were as follows: 2016 2015 Comprehensive Income Component Location Unrealized holding (losses) gains on derivatives Currency forwards $ 2,059 $ 9,235 Cost of sales 1,038 5,200 Research and development (579 ) 8,361 Selling, marketing, general and administrative — (1,466 ) (a) — (8,723 ) Other operating expense (b) Treasury rate lock (1,096 ) (1,096 ) Interest expense Swap rate lock 3,065 — Interest expense 4,487 11,511 Total before tax (1,050 ) (1,064 ) Tax $ 3,437 $ 10,447 Net of tax Amortization of pension components Transition obligation $ 17 $ 18 (c) Prior service credit and curtailment recognition — (229 ) (c) Actuarial losses and settlement recognition 830 7,378 (c) 847 7,167 Irish pension curtailment/settlement — 231,151 Other operating expense (c) 847 238,318 Total before tax (228 ) (28,875 ) Tax $ 619 $ 209,443 Net of tax Total amounts reclassified out of accumulated other comprehensive income, net of tax $ 4,056 $ 219,890 ______________ a) The gain related to a fixed asset purchase was reclassified out of accumulated other comprehensive income (loss) to fixed assets which will depreciate into earnings over its expected useful life. b) The gain on currency forwards related to the Irish pension plan settlement was reclassified out of accumulated other comprehensive income (loss) to other operating expense. See Note 13, Retirement Plans, of these Notes to Consolidated Financial Statements for further information . c) The amortization of pension components is included in the computation of net periodic pension cost. See Note 13, Retirement Plans, of these Notes to Consolidated Financial Statements for further information . |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred. Advertising expense was approximately $4.7 million in fiscal 2016 , $3.3 million in fiscal 2015 and $3.2 million in fiscal 2014 . |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted income tax rates and laws that are expected to be in effect when the temporary differences are expected to reverse. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. The calculation of the tax liabilities involves dealing with uncertainties in the application of complex tax regulations. If it is more likely than not that the tax position will not be sustained on audit, an uncertain tax position is reserved. The Company re-evaluates these uncertain tax positions on a quarterly basis. Prior to fiscal 2016, deferred tax assets and liabilities are separated into current and non-current amounts based on the classification of the related assets and liabilities for financial reporting purposes. |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock Basic earnings per share is computed based only on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential future issuances of common stock relating to stock option programs and other potentially dilutive securities using the treasury stock method. In calculating diluted earnings per share, the dilutive effect of stock options and restricted stock units is computed using the average market price for the respective period. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money and restricted stock units. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of in-the-money stock options. Potential shares related to certain of the Company’s outstanding stock options and restricted stock units were excluded because they were anti-dilutive. Those potential shares, determined based on the weighted average exercise prices during the respective years, related to the Company’s outstanding stock options could be dilutive in the future. |
Share-Based Compensation | Stock-Based Compensation Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards ultimately expected to vest, and is recognized as an expense on a straight-line basis over the vesting period, which is generally five years for stock options and three years for restricted stock units. In addition to restricted stock units with a service condition, the Company grants restricted stock units with both a market condition and a service condition (market-based restricted stock units). The number of shares of the Company's common stock to be issued upon vesting of market-based restricted stock units will range from 0% to 200% of the target amount, based on the comparison of the Company's total shareholder return (TSR) to the median TSR of a specified peer group over a three-year period. TSR is a measure of stock price appreciation plus any dividends paid during the performance period. Determining the amount of stock-based compensation to be recorded for stock options and market-based restricted stock units requires the Company to develop estimates used in calculating the grant-date fair value of awards. The Company uses the Black-Scholes valuation model to calculate the grant-date fair value of stock option awards and the Monte Carlo simulation model to calculate the grant-date fair value of market-based restricted stock units. The use of these valuation models requires the Company to make estimates and assumptions, such as expected volatility, expected term, risk-free interest rate, expected dividend yield and forfeiture rates. The grant-date fair value of restricted stock units with only a service condition represents the value of the Company's common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company's common stock prior to vesting. See Note 3, Stock-Based Compensation and Shareholders' Equity, of these Notes to Consolidated Financial Statements for additional information relating to stock-based compensation. |
New Accounting Pronouncements | New Accounting Pronouncements Standards Implemented Interest - Imputation of Interest In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (ASU 2015-15). ASU 2015-15 provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs associated with line-of-credit-arrangements. The Company elected to early adopt these updates as of January 30, 2016, and debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability. Debt issuance costs related to the Company's revolving credit facility continue to be presented as an asset and are being amortized ratably over the term of the revolving credit facility. The update was early adopted because management believes it provides a more meaningful presentation of its financial position. This change in accounting principle has been applied on a retrospective basis and the consolidated balance sheet as of October 31, 2015 has been adjusted to reflect the period specific effects of applying the new guidance. The retrospective application of this change in accounting principle on the consolidated balance sheet as of October 31, 2015 reclassified debt issuance costs of $3.4 million, which were previously presented as a long-term asset within other assets, as a reduction to the carrying value of the senior notes by the same amount. The adoption did not have an impact on the Company's condensed consolidated statement of operations in any period. Income Taxes In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred income taxes and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The guidance in ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company elected to early adopt this update as of January 30, 2016 on a prospective basis. The adoption of ASU 2015-17 resulted in a reclassification of the Company's current deferred tax asset to the non-current deferred income taxes in the Company's condensed consolidated balance sheet as of January 30, 2016. The adoption did not have an impact on the Company's condensed consolidated statement of operations in any period. No prior periods were retrospectively adjusted. Discontinued Operations In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08), which raises the threshold for disposals to qualify as discontinued operations. Under the new guidance, a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale, should be reported as discontinued operations. ASU 2014-08 also expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU 2014-08 was effective for the Company prospectively for fiscal years, and interim reporting periods within those fiscal years, beginning with the Company's first quarter of fiscal year 2016. As of October 29, 2016 , there have been no disposals or classifications as held for sale that would be subject to ASU 2014-08. Standards to be Implemented Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740). ASU 2016-16 will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. ASU-2016-16 is effective for the Company in the first quarter of the fiscal year ending November 2, 2019 (fiscal 2019). The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 provides guidance on several specific cash flow issues, including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. ASU-2016-15 is effective for the Company in the first quarter of fiscal 2019. The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its statement of cash flows. Equity Method Investments In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07). ASU 2016-07 eliminates the requirement that when an investment, initially accounted for under a method other than the equity method of accounting, subsequently qualifies for use of the equity method, an investor must retrospectively apply the equity method in prior periods in which it held the investment. This requires an investor to determine the fair value of the investee’s underlying assets and liabilities retrospectively at each investment date and revise all prior periods as if the equity method had always been applied. The new guidance requires the investor to apply the equity method prospectively from the date the investment qualifies for the equity method. The investor will add the carrying value of the existing investment to the cost of the additional investment to determine the initial cost basis of the equity method investment. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. ASU-2016-07 is effective for the Company in the first quarter of the fiscal year ending November 3, 2018 (fiscal 2018). The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. Derivatives and Hedging In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (ASU 2016-06). ASU 2016-06 clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under ASU 2016-06 is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. ASU 2016-06 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU 2016-06 is effective for the Company in the first quarter of the fiscal 2019. The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires a lessee to recognize most leases on the balance sheet but recognize expenses on the income statement in a manner similar to current practice. The update states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying assets for the lease term. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. ASU 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU 2016-02 is effective for the Company in the first quarter of the fiscal year ending October 31, 2020 (fiscal 2020). The Company is currently evaluating the adoption date and the impact adoption will have on its financial position and results of operations. Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. ASU 2016-13 is effective for the Company in the first quarter of fiscal 2020. The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 requires equity investments to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. ASU 2016-01 is effective in the first quarter of fiscal 2019. The Company is currently evaluating the adoption date and the impact adoption will have on its financial position and results of operations. Business combinations In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). The update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update also requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new standard is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. ASU 2015-16 is effective for the Company in the first quarter of fiscal 2017. The Company is currently evaluating the impact, if any, adoption will have on its financial position and results of operations. Inventory In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory (ASU 2015-11) , which simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (LIFO) and the retail inventory method. The guidance in ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. ASU 2015-11is effective for the Company in the first quarter of fiscal 2018. The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. Intangibles-Goodwill and other In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) - Customer's Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05), which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The guidance in ASU 2015-05 is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. ASU 2015-05 is effective for the Company in the first quarter of fiscal 2017. The Company is currently evaluating the impact, if any, adoption will have on its financial position and results of operations. Compensation - Retirement Benefits In April 2015, the FASB issued ASU 2015-04, Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets (ASU 2015-04) , which provides a practical expedient for entities with a fiscal year-end that does not coincide with a month-end, that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. Entities are required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations. ASU 2015-04 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early application is permitted. Amendments should be applied prospectively. ASU 2015-04 is effective for the Company in the first quarter of fiscal 2017. The Company does not expect the adoption to have a material impact on the Company’s financial condition or results of operations. Consolidation In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (ASU 2015-02). ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendments in this guidance using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. ASU 2015-02 is effective for the Company in the first quarter of fiscal 2017. The Company does not expect the adoption to have a material impact on the Company’s financial condition or results of operations. Presentation of Financial Statements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) (ASU 2014-15), which provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The update requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the update (1) provides a definition of the term "substantial doubt", (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. ASU 2014-15 is effective for the Company for its annual period ending October 28, 2017. The Company does not expect the adoption to have a material impact on the Company's consolidated financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ( ASU 2016-09). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those annual periods, beginning after December 15, 2016 and allows for prospective, retrospective or modified retrospective adoption, depending on the area covered in the update, with early adoption permitted. ASU 2016-09 is effective for the Company in the first quarter of fiscal 2018. The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. I n June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASU 2014-12) , which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 is effective for the Company in the first quarter of fiscal 2017. The Company does not expect the adoption to have a material impact on the Company's financial condition or results of operations. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments and updates to the new revenue standard, including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, which is the Company's first quarter of fiscal 2019. Early adoption is permitted for all entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. As described in Note 2n, Revenue Recognition , of these Notes to the Consolidated Financial Statements, the Company defers revenue and the related cost of sales on shipments to distributors until the distributors resell the products to their customers. Upon adoption of ASU 2014-09, the Company will no longer be permitted to defer revenue until sale by the distributor to the end customer, but rather, will be required to estimate the effects of returns and allowances provided to distributors and record revenue at the time of sale to the distributor. The Company is continuing to evaluate the future impact and method of adoption of ASU 2014-09 and related amendments on its consolidated financial statements and related disclosures. The Company is considering early adoption of the new standard using the modified retrospective method in fiscal 2018. The Company's ability to early adopt the standard is dependent on system readiness and the completion of analysis necessary to meet the requirements under ASU 2014-09. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Reclassified Unamortized Debt Issuance Costs Reported in Balance Sheet [Table Text Block] | October 31, 2015 as presented Reclassifications October 31, 2015 Other assets $ 43,962 $ (3,401 ) $ 40,561 Total other assets $ 2,338,520 $ (3,401 ) $ 2,335,119 Total assets $ 7,062,178 $ (3,401 ) $ 7,058,777 Current debt $ 374,839 $ (245 ) $ 374,594 Current liabilities $ 1,113,830 $ (245 ) $ 1,113,585 Long-term debt $ 498,497 $ (3,156 ) $ 495,341 Total non-current liabilities $ 875,389 $ (3,156 ) $ 872,233 Total liabilities and shareholders equity $ 7,062,178 $ (3,401 ) $ 7,058,777 |
OffsettingAssetsLiabilitiesTableTextBlockTableTextBlock [Table Text Block] | October 29, 2016 October 31, 2015 Gross amount of recognized liabilities $ (5,788 ) $ (3,896 ) Gross amounts of recognized assets offset in the consolidated balance sheet 557 813 Net liabilities presented in the consolidated balance sheet $ (5,231 ) $ (3,083 ) Interest Rate Exposure Management — The Company's current and future debt may be subject to interest rate risk. The Company utilizes interest rate derivatives to alter interest rate exposure in an attempt to reduce the effects of these changes. On October 28, 2014 , the Company entered into forward starting interest rate swap transactions to hedge its exposure to the variability in future cash flows due to changes in interest rates for the first $500 million of debt issuances that were expected to occur in the future. On December 1, 2015, these forward starting swaps were terminated resulting in a loss of $33.4 million . On December 14, 2015, the Company issued the 2025 Notes and 2045 Notes. The loss was recorded in OCI and will be reclassified out of OCI to interest expense on a straight line basis over the 10-year term of the 2025 Notes. The market risk associated with the Company’s derivative instruments results from currency exchange rate or interest rate movements that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. The counterparties to the agreements relating to the Company’s derivative instruments consist of a number of major international financial institutions with high credit ratings. Based on the credit ratings of the Company’s counterparties as of October 29, 2016 , nonperformance is not perceived to be a material risk. Furthermore, none of the Company’s derivatives are subject to collateral or other security arrangements and none contain provisions that are dependent on the Company’s credit ratings from any credit rating agency. While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of the Company’s exposure to credit risk. The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the obligations of the Company to the counterparties. As a result of the above considerations, the Company does not consider the risk of counterparty default to be significant. The Company records the fair value of its derivative financial instruments in its consolidated financial statements in other current assets, other assets or accrued liabilities, depending on their net position, regardless of the purpose or intent for holding the derivative contract. Changes in the fair value of the derivative financial instruments are either recognized periodically in earnings or in shareholders’ equity as a component of OCI. Changes in the fair value of cash flow hedges are recorded in OCI and reclassified into earnings when the underlying contract matures. Changes in the fair values of derivatives not qualifying for hedge accounting or the ineffective portion of designated hedges are reported in earnings as they occur. For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of accumulated other comprehensive income into the consolidated statement of income related to forward foreign currency exchange contracts, see Note 2o, Accumulated Other Comprehensive (Loss) Income of these Notes to Consolidated Financial Statements. |
Unrealized gains and losses on available-for-sale securities classified as short-term investments | unrealized gains and losses on available-for-sale securities classified as short-term investments at October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Unrealized gains on securities classified as short-term investments $ 846 $ 233 Unrealized losses on securities classified as short-term investments (294 ) (584 ) Net unrealized gain (loss) on securities classified as short-term investments $ 552 $ (351 ) |
Cash and cash equivalents and short term investments | The components of the Company’s cash and cash equivalents and short-term investments as of October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Cash and cash equivalents: Cash $ 67,877 $ 72,638 Available-for-sale 693,255 807,935 Held-to-maturity 160,000 3,780 Total cash and cash equivalents $ 921,132 $ 884,353 Short-term investments: Available-for-sale $ 3,110,011 $ 2,144,575 Held-to-maturity (less than one year to maturity) 24,650 — Total short-term investments $ 3,134,661 $ 2,144,575 |
Supplemental cash flow statement Information | 2016 2015 2014 Cash paid during the fiscal year for: Income taxes $ 77,918 $ 142,931 $ 73,067 Interest $ 41,701 $ 25,625 $ 27,931 |
Inventories | Inventories at October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Raw materials $ 20,263 $ 21,825 Work in process 232,196 261,520 Finished goods 124,096 128,969 Total inventories $ 376,555 $ 412,314 |
Useful lives of property, plant and equipment | Depreciation is based on the following ranges of estimated useful lives: Buildings Up to 25 years Machinery & equipment 3-8 years Office equipment 3-8 years |
Changes in goodwill | The following table presents the changes in goodwill during fiscal 2016 and fiscal 2015 : 2016 2015 Balance at beginning of year $ 1,636,526 $ 1,642,438 Acquisition of Hittite (Note 6) (1) — (1,105 ) Goodwill adjustment related to other acquisitions (2) 44,046 3,663 Foreign currency translation adjustment (1,456 ) (8,470 ) Balance at end of year $ 1,679,116 $ 1,636,526 |
Intangible assets consisted of the following: | As of October 29, 2016 and October 31, 2015 , the Company’s intangible assets consisted of the following: October 29, 2016 October 31, 2015 Gross Carrying Accumulated Gross Carrying Amount Accumulated Amortization Customer relationships $ 649,159 $ 158,979 $ 624,900 $ 88,913 Technology-based 22,231 8,911 15,100 4,834 Trade-name 600 60 — — Backlog 200 — — — IPR&D (1) 46,175 1,047 37,264 — Total (2) (3) $ 718,365 $ 168,997 $ 677,264 $ 93,747 |
Schedule of expected annual amortization expense | The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2017 $ 79,794 2018 $ 78,475 2019 $ 75,286 2020 $ 75,047 2021 $ 74,627 |
Fair value of hedging instruments | The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s consolidated balance sheets as of October 29, 2016 and October 31, 2015 were as follows: Fair Value At Balance Sheet Location October 29, 2016 October 31, 2015 Forward foreign currency exchange contracts Accrued liabilities $ 5,260 $ 3,091 |
Fair value of financial assets and liabilities | 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 October 29, 2016 and October 31, 2015 . 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 October 29, 2016 and October 31, 2015 , the Company held $252.5 million and $76.4 million , respectively, of cash and held-to-maturity investments that were excluded from the tables below. October 29, 2016 Fair Value measurement at Reporting Date using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets Cash equivalents: Available-for-sale: Institutional money market funds $ 277,595 $ — $ — $ 277,595 Corporate obligations (1) — 415,660 — 415,660 Short - term investments: Available-for-sale: Securities with one year or less to maturity: Corporate obligations (1) — 2,518,148 — 2,518,148 Floating rate notes, issued at par — 29,989 — 29,989 Floating rate notes (1) — 561,874 — 561,874 Other assets: Deferred compensation investments 26,916 — — 26,916 Total assets measured at fair value $ 304,511 $ 3,525,671 $ — $ 3,830,182 Liabilities Contingent consideration — — 7,555 7,555 Forward foreign currency exchange contracts (2) — 5,231 — 5,231 Total liabilities measured at fair value $ — $ 5,231 $ 7,555 $ 12,786 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2016 was $3.5 billion . (2) The Company has netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of these Notes to Consolidated Financial Statements for more information related to the Company's master netting arrangements. October 31, 2015 Fair Value measurement at Reporting Date using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets Cash equivalents: Available-for-sale: Institutional money market funds $ 198,853 $ — $ — $ 198,853 Corporate obligations (1) — 609,082 — 609,082 Short - term investments: Available-for-sale: Securities with one year or less to maturity: Corporate obligations (1) — 1,899,374 — 1,899,374 Floating rate notes, issued at par — 99,648 — 99,648 Floating rate notes (1) — 145,553 — 145,553 Other assets: Deferred compensation investments 24,124 — — 24,124 Total assets measured at fair value $ 222,977 $ 2,753,657 $ — $ 2,976,634 Liabilities Contingent consideration — — 2,843 2,843 Forward foreign currency exchange contracts (2) — 3,083 — 3,083 Interest rate swap agreements — 32,737 — 32,737 Total liabilities measured at fair value $ — $ 35,820 $ 2,843 $ 38,663 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 31, 2015 was $2.6 billion . (2) The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 2i, Derivative Instruments and Hedging Agreements , of these Notes to Consolidated Financial Statements for more information related to the Company's master netting arrangements. |
Schedule of fair value inputs | The fair value measurement of the contingent consideration encompasses the following significant unobservable inputs: Unobservable Inputs Range Potential contingent consideration payments $8,500 Discount rate 0% - 2% Timing of cash flows 1 to 3 years Probability of achievement 90% - 100% |
Change in the fair value of the contingent consideration | The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) from November 1, 2014 to October 29, 2016 : Contingent Consideration Balance as of November 1, 2014 $ 4,806 Payment made (1) (2,000 ) Fair value adjustment (2) (137 ) Effect of foreign currency 174 Balance as of October 31, 2015 $ 2,843 Contingent consideration liability recorded 7,500 Payment made (1) (1,489 ) Fair value adjustment (2) (888 ) Effect of foreign currency (411 ) Balance as of October 29, 2016 $ 7,555 (1) The payment is reflected in the statements of cash flows as cash used in financing activities related to the liability recognized at fair value as of the acquisition date and as cash provided by operating activities related to the fair value adjustments previously recognized in earnings. (2) Recorded in research and development expense in the consolidated statements of income. |
Components of accumulated other comprehensive (loss) | The components of accumulated other comprehensive loss at October 29, 2016 and October 31, 2015 consisted of the following, net of tax: Foreign currency translation adjustment Unrealized holding gains on available for sale securities classified as short-term investments Unrealized holding (losses) on available for sale securities classified as short-term investments Unrealized holding Gains on Derivatives Pension Plans Total October 31, 2015 $ (18,057 ) $ 216 $ (544 ) $ (17,692 ) $ (14,774 ) $ (50,851 ) Other comprehensive income before reclassifications (4,831 ) 613 290 (5,532 ) (14,212 ) (23,672 ) Amounts reclassified out of other comprehensive income — — — 4,487 847 5,334 Tax effects (1,175 ) (29 ) (27 ) (147 ) (3,247 ) (4,625 ) Other comprehensive income (6,006 ) 584 263 (1,192 ) (16,612 ) (22,963 ) October 29, 2016 $ (24,063 ) $ 800 $ (281 ) $ (18,884 ) $ (31,386 ) $ (73,814 ) |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: 2016 2015 2014 Net Income $ 861,664 $ 696,878 $ 629,320 Basic shares: Weighted average shares outstanding 308,736 312,660 313,195 Earnings per share basic $ 2.79 $ 2.23 $ 2.01 Diluted shares: Weighted average shares outstanding 308,736 312,660 313,195 Assumed exercise of common stock equivalents 3,572 4,212 4,832 Weighted average common and common equivalent shares 312,308 316,872 318,027 Earnings per share diluted $ 2.76 $ 2.20 $ 1.98 Anti-dilutive shares related to: Outstanding stock options 3,077 2,089 2,911 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | 2016 2015 Comprehensive Income Component Location Unrealized holding (losses) gains on derivatives Currency forwards $ 2,059 $ 9,235 Cost of sales 1,038 5,200 Research and development (579 ) 8,361 Selling, marketing, general and administrative — (1,466 ) (a) — (8,723 ) Other operating expense (b) Treasury rate lock (1,096 ) (1,096 ) Interest expense Swap rate lock 3,065 — Interest expense 4,487 11,511 Total before tax (1,050 ) (1,064 ) Tax $ 3,437 $ 10,447 Net of tax Amortization of pension components Transition obligation $ 17 $ 18 (c) Prior service credit and curtailment recognition — (229 ) (c) Actuarial losses and settlement recognition 830 7,378 (c) 847 7,167 Irish pension curtailment/settlement — 231,151 Other operating expense (c) 847 238,318 Total before tax (228 ) (28,875 ) Tax $ 619 $ 209,443 Net of tax Total amounts reclassified out of accumulated other comprehensive income, net of tax $ 4,056 $ 219,890 |
Stock-Based Compensation and 30
Stock-Based Compensation and Shareholders' Equity (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Information pertaining to the Company's stock option awards and the related estimated weighted-average assumptions used to calculate the fair value of stock options granted | Information pertaining to the Company’s stock option awards and the related estimated weighted-average assumptions to calculate the fair value of stock options using the Black-Scholes valuation model granted is as follows: Stock Options 2016 2015 2014 Options granted (in thousands) 1,814 1,954 2,240 Weighted-average exercise price $55.19 $57.20 $51.52 Weighted-average grant-date fair value $12.67 $10.38 $8.74 Assumptions: Weighted-average expected volatility 34.0 % 25.9 % 24.9 % Weighted-average expected term (in years) 5.1 5.3 5.3 Weighted-average risk-free interest rate 1.4 % 1.6 % 1.7 % Weighted-average expected dividend yield 3.0 % 2.8 % 2.9 % The Company utilizes the Monte Carlo simulation valuation model to value market-based restricted stock units. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the performance conditions stipulated in the award grant and calculates the fair market value for the market-based restricted stock units granted. The Monte Carlo simulation model also uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions, including the possibility that the market condition may not be satisfied, and the resulting fair value of the award. Information pertaining to the Company's market-based restricted stock units and the related estimated assumptions used to calculate the fair value of market-based restricted stock units granted using the Monte Carlo simulation model is as follows: Market-based Restricted Stock Units 2016 2015 2014 Units granted (in thousands) 102 75 86 Grant-date fair value $58.95 $55.67 $50.79 Assumptions: Historical stock price volatility 25.1 % 20.0 % 23.2 % Risk-free interest rate 1.1 % 1.1 % 0.8 % Expected dividend yield 3.0 % 2.8 % 2.8 % |
Summary of the activity under the Company's stock option plans | A summary of the activity under the Company’s stock option plans as of October 29, 2016 and changes during the fiscal year then ended is presented below: Options Outstanding (in thousands) Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term in Years Aggregate Options outstanding at October 31, 2015 12,181 $41.60 Options granted 1,814 $55.19 Options exercised (1,790 ) $34.43 Options forfeited (482 ) $50.84 Options expired (19 ) $40.42 Options outstanding at October 29, 2016 11,704 $44.43 6.0 $223,611 Options exercisable at October 29, 2016 6,577 $37.90 4.5 $168,549 Options vested or expected to vest at October 29, 2016 (1) 11,321 $44.09 6.0 $220,085 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. |
Summary of the company's restricted stock unit award activity | A summary of the Company’s restricted stock unit award activity as of October 29, 2016 and changes during the fiscal year then ended is presented below: Restricted Stock Units Outstanding (in thousands) Weighted- Average Grant- Date Fair Value Per Share Restricted stock units outstanding at October 31, 2015 2,698 $47.59 Units granted 1,099 $51.59 Restrictions lapsed (905 ) $44.30 Forfeited (202 ) $50.34 Restricted stock units outstanding at October 29, 2016 2,690 $50.11 |
Industry, Segment And Geograp31
Industry, Segment And Geographic Information (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Segment Reporting [Abstract] | |
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 evolve and improve, 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. 2016 2015 2014 Revenue % of Revenue % of Revenue % of Industrial $ 1,502,019 44 % $ 1,494,898 44 % $ 1,344,906 47 % Automotive 540,940 16 % 525,893 15 % 525,123 18 % Consumer 688,289 20 % 729,860 21 % 327,434 11 % Communications 690,161 20 % 684,441 20 % 667,310 23 % Total Revenue $ 3,421,409 100 % $ 3,435,092 100 % $ 2,864,773 100 % ________________ * The sum of the individual percentages does not equal the total due to rounding. |
Revenue Trends and Property, Plant and Equipment by Geographic Region | Geographic Information Revenue by geographic region is based upon the primary location of the Company's customers' design activity for its products. In fiscal years 2016 , 2015 and 2014 , the predominant countries comprising “Rest of North and South America” are Canada and Mexico; the predominant countries comprising “Europe” are Germany, Sweden, France and the United Kingdom; and the predominant countries comprising “Rest of Asia” are South Korea and Taiwan. 2016 2015 2014 Revenue United States $ 1,299,629 $ 1,325,279 $ 821,554 Rest of North and South America 95,957 97,189 96,957 Europe 924,849 939,230 924,477 Japan 291,649 319,569 308,054 China 575,690 511,365 459,260 Rest of Asia 233,635 242,460 254,471 Subtotal all foreign countries 2,121,780 2,109,813 2,043,219 Total revenue $ 3,421,409 $ 3,435,092 $ 2,864,773 Property, plant and equipment United States $ 236,625 $ 253,417 $ 255,473 Ireland 174,952 173,703 167,359 Philippines 194,587 195,662 180,586 All other countries 29,952 21,328 19,004 Subtotal all foreign countries 399,491 390,693 366,949 Total property, plant and equipment $ 636,116 $ 644,110 $ 622,422 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Company's special charges, Income Statement | Statement of Income Reduction of Workforce reductions 37,873 Facility closure costs 459 Non-cash impairment charge 433 Change in estimate (1,443 ) Total Fiscal 2014 Charges $ 37,322 Workforce reductions 13,684 Total Fiscal 2016 Charges $ 13,684 |
Accrued restructuring | Accrued Restructuring Reduction of Operating Costs Action Balance at November 2, 2013 $ 19,955 Fiscal 2014 special charges 37,322 Severance payments (16,790 ) Effect of foreign currency on accrual 16 Balance at November 1, 2014 $ 40,503 Severance payments (33,220 ) Facility closure costs (459 ) Non-cash impairment charge (433 ) Effect of foreign currency on accrual (514 ) Balance at October 31, 2015 $ 5,877 Fiscal 2016 special charges 13,684 Severance payments (7,184 ) Effect of foreign currency on accrual (3 ) Balance at October 29, 2016 $ 12,374 |
Acquisitions ScheduleOfBusiness
Acquisitions ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Fair Value (in thousands) Weighted Average Useful Lives (in Years) Technology-based $ 15,100 4 Backlog 25,500 1 Customer relationships 624,900 9 Total amortizable intangible assets $ 665,500 9 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Cash and cash equivalents $ 480,742 Marketable securities 28,008 Accounts receivable (a) 36,991 Inventories 115,377 Prepaid expenses and other assets 24,088 Property, plant and equipment 50,726 Deferred tax assets 2,242 Intangible assets (Note 2f) 666,400 Goodwill (Note 2f) 1,355,972 Total assets $ 2,760,546 Assumed liabilities 52,876 Deferred tax liabilities 276,683 Total estimated purchase price $ 2,430,987 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (in thousands) Cash consideration $2,424,446 Fair value of replacement share-based awards 6,541 Total estimated purchase price $ 2,430,987 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (thousands, except per share data) 2014 Revenue $ 3,075,468 Net income $ 778,049 Basic net income per common share $ 2.48 Diluted net income per common share $ 2.44 |
Deferred Compensation Plan In34
Deferred Compensation Plan Investments (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Deferred Compensation Plan Investments [Abstract] | |
Components of investment | The components of the investments as of October 29, 2016 and October 31, 2015 were as follows: 2016 2015 Money market funds $ 3,129 $ 3,659 Mutual funds 23,787 20,465 Total Deferred Compensation Plan investments $ 26,916 $ 24,124 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at October 29, 2016 and October 31, 2015 consisted of the following: 2016 2015 Accrued compensation and benefits $ 112,003 $ 125,500 Interest rate swap (Note 2i) — 32,737 Accrued interest (Note 16) 26,411 6,069 Special charges (Note 5) 12,374 5,877 Other 105,069 79,412 Total accrued liabilities $ 255,857 $ 249,595 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Leases [Abstract] | |
Schedule of future minimum rental payments required under long-term operating leases | The following is a schedule of future minimum rental payments required under long-term operating leases at October 29, 2016 : Operating Fiscal Years Leases 2017 $ 34,328 2018 25,301 2019 8,130 2020 7,033 2021 4,439 Later Years 3,394 Total $ 82,625 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic pension cost of non-U.S. plans | Net annual periodic pension cost of non-U.S. plans is presented in the following table: 2016 2015 2014 Service cost $ 5,520 $ 15,675 $ 13,532 Interest cost 3,675 11,636 14,051 Expected return on plan assets (3,764 ) (13,509 ) (13,615 ) Amortization of prior service cost — (229 ) (240 ) Amortization of transition obligation 17 18 19 Recognized actuarial loss 679 7,257 4,544 Subtotal $ 6,127 $ 20,848 $ 18,291 Curtailment impact — (4,463 ) — Settlement impact 151 226,810 — Net periodic pension cost $ 6,278 $ 243,195 $ 18,291 |
Schedule of obligation and asset data of the Company's non-US plans | Obligation and asset data of the Company’s non-U.S. plans at each fiscal year end is presented in the following table: 2016 2015 Change in Benefit Obligation Benefit obligation at beginning of year $ 106,533 $ 455,205 Service cost 5,520 15,675 Interest cost 3,675 11,636 Participant contributions — 1,895 Plan amendments (142 ) — Curtailment — (20,586 ) Settlement (632 ) (412,136 ) Premiums paid — (332 ) Actuarial loss 30,223 114,767 Benefits paid (1,701 ) (4,449 ) Exchange rate adjustment (13,765 ) (55,142 ) Benefit obligation at end of year $ 129,711 $ 106,533 Change in Plan Assets Fair value of plan assets at beginning of year $ 70,365 $ 269,371 Actual return on plan assets 9,002 24,283 Employer contributions 4,880 228,582 Participant contributions — 1,895 Settlements (632 ) (412,136 ) Premiums paid — (332 ) Benefits paid (1,701 ) (4,449 ) Exchange rate adjustment (12,091 ) (36,849 ) Fair value of plan assets at end of year $ 69,823 $ 70,365 Reconciliation of Funded Status Funded status $ (59,888 ) $ (36,168 ) Amounts Recognized in the Balance Sheet Non-current assets $ — $ 3,246 Current liabilities (606 ) (595 ) Non-current liabilities (59,282 ) (38,819 ) Net amount recognized $ (59,888 ) $ (36,168 ) 2016 2015 Reconciliation of Amounts Recognized in the Statement of Financial Position Initial net obligation $ (24 ) $ (44 ) Prior service credit 148 — Net loss (39,647 ) (19,620 ) Accumulated other comprehensive loss (39,523 ) (19,664 ) Accumulated contributions (less than) in excess of net periodic benefit cost (20,365 ) (16,504 ) Net amount recognized $ (59,888 ) $ (36,168 ) Changes Recognized in Other Comprehensive Income Changes in plan assets and benefit obligations recognized in other comprehensive income Prior service cost $ (142 ) $ — Net loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost) $ 24,985 $ 83,610 Effect of exchange rates on amounts included in accumulated other comprehensive income (loss) (4,137 ) (26,366 ) Amounts recognized as a component of net periodic benefit cost Amortization, settlement or curtailment recognition of net transition obligation (17 ) (18 ) Amortization or curtailment recognition of prior service credit (cost) — 4,490 Amortization or settlement recognition of net loss (830 ) (234,067 ) Total recognized in other comprehensive loss $ 19,859 $ (172,351 ) Total recognized in net periodic cost and other comprehensive loss $ 26,137 $ 70,844 Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year Initial net obligation $ (14 ) $ (17 ) Prior service credit 10 — Net loss (1,808 ) (697 ) Total $ (1,812 ) $ (714 ) |
Schedule of accumulated and projected benefit obligation in excess of plan assets | Information relating to the Company’s non-U.S. plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets at each fiscal year end is presented in the following table: 2016 2015 Plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 129,711 $ 61,713 Fair value of plan assets $ 69,823 $ 22,300 Plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation $ 98,244 $ 36,986 Accumulated benefit obligation $ 93,164 $ 31,790 Fair value of plan assets $ 45,948 $ 487 |
Schedule of weighted average assumptions used | The range of assumptions used for the non-U.S. defined benefit plans reflects the different economic environments within the various countries. As of October 29, 2016, the Company changed the method utilized to estimate the service cost and interest cost components of net periodic benefit cost for certain of its defined benefit pension plans. Prior to October 29, 2016, the Company estimated the service cost and interest cost components of net periodic benefit costs using a single weighted average discount rate. As of October 29, 2016, the Company will use a spot rate approach to estimate the service and interest cost components of net periodic benefit cost for certain of its defined benefit pension plans as the Company believes this approach calculates a better estimate. The change did not, and is not expected to, materially affect the Company's Consolidated Statement of Income. The projected benefit obligation was determined using the following weighted-average assumptions: 2016 2015 Discount rate 2.92 % 3.64 % Rate of increase in compensation levels 3.36 % 3.05 % Net annual periodic pension cost was determined using the following weighted average assumptions: 2016 2015 Discount rate 3.64 % 2.95 % Expected long-term return on plan assets 5.65 % 5.80 % Rate of increase in compensation levels 3.05 % 2.77 % |
Plan assets measured at fair value on a recurring basis by investment categories | The following table presents plan assets measured at fair value on a recurring basis by investment categories as of October 29, 2016 and October 31, 2015 using the same three-level hierarchy described in Note 2j, Fair Value, of these Notes to Consolidated Financial Statements: October 29, 2016 October 31, 2015 Fair Value Measurement at Reporting Date Using: Fair Value Measurement at Reporting Date Using: Quoted Significant Unobservable Total Quoted Significant Unobservable Total Unit trust funds(1) $ — $ 4,681 $ — $ 4,681 $ — $ 5,198 $ — $ 5,198 Equities(1) — 30,510 74 30,584 — 30,196 77 30,273 Fixed income securities(2) — 33,573 — 33,573 — 34,504 — 34,504 Cash and cash equivalents 985 — — 985 390 — — 390 Total assets measured at fair value $ 985 $ 68,764 $ 74 $ 69,823 $ 390 $ 69,898 $ 77 $ 70,365 _______________________________________ (1) The majority of the assets in these categories are invested in a mix of equities, including those from North America, Europe and Asia. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. Due to the nature of the underlying assets of these funds, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with governing documents. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded. Level 3 securities are valued at book value per share based upon the financial statements of the investment. (2) The majority of the assets in this category are invested in funds primarily concentrated in non-U.S. debt instruments. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. |
Reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The table below presents a reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for fiscal years 2016 and 2015 . Properties Equities Balance as of November 1, 2014 $ 3,029 $ 121 Purchases, sales, and settlements, net (2,907 ) (37 ) Realized and unrealized return on plan assets 152 — Exchange rate adjustment (274 ) (7 ) Balance as of October 31, 2015 $ — $ 77 Exchange rate adjustment — (3 ) Balance as of October 29, 2016 $ — $ 74 |
Schedule of expected company contributions and estimated future benefit payments | Expected fiscal 2017 Company contributions and estimated future benefit payments are as follows: Expected Company Contributions 2017 $ 5,187 Expected Benefit Payments 2017 $ 1,765 2018 $ 1,798 2019 $ 1,890 2020 $ 2,253 2021 $ 2,448 2022 through 2025 $ 19,074 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision reconciliation | The reconciliation of income tax computed at the U.S. federal statutory rates to income tax expense is as follows: 2016 2015 2014 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Income tax provision reconciliation: Tax at statutory rate: $ 334,922 $ 283,540 $ 255,271 Net foreign income subject to lower tax rate (264,157 ) (198,061 ) (179,329 ) State income taxes, net of federal benefit (10,821 ) (4,425 ) (6,361 ) Valuation allowance 13,658 4,875 2,846 Federal research and development tax credits (16,237 ) (8,232 ) (1,165 ) Change in uncertain tax positions 4,797 2,449 719 Amortization of purchased intangibles 35,641 38,973 8,126 Acquisitions — — 15,656 Other, net (2,546 ) (5,883 ) 4,262 Total income tax provision $ 95,257 $ 113,236 $ 100,025 |
Schedule of income before income tax domestic and foreign | For financial reporting purposes, income before income taxes includes the following components: 2016 2015 2014 Pretax income: Domestic $ 2,642 $ 110,710 $ 127,084 Foreign 954,279 699,404 602,261 Income before income taxes $ 956,921 $ 810,114 $ 729,345 |
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows: 2016 2015 2014 Current: Federal tax $ 27,790 $ 65,942 $ 128,591 State 1,409 695 316 Foreign 57,934 98,813 48,829 Total current $ 87,133 $ 165,450 $ 177,736 Deferred: Federal $ 325 $ (27,933 ) $ (74,263 ) State 2,820 541 (1,113 ) Foreign 4,979 (24,822 ) (2,335 ) Total deferred $ 8,124 $ (52,214 ) $ (77,711 ) |
Schedule of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities for the fiscal years ended October 29, 2016 and October 31, 2015 are as follows: 2016 2015 Deferred tax assets: Inventory reserves $ 22,527 $ 24,009 Deferred income on shipments to distributors 49,455 40,842 Reserves for compensation and benefits 48,062 45,515 Tax credit carryovers 68,669 64,838 Stock-based compensation 56,345 68,530 Depreciation 3,078 1,840 Acquisition-related costs 19,312 6,327 Other 47,482 36,711 Total gross deferred tax assets 314,930 288,612 Valuation allowance (67,094 ) (52,675 ) Total deferred tax assets 247,836 235,937 Deferred tax liabilities: Depreciation (59,218 ) (50,389 ) Undistributed earnings of foreign subsidiaries (60,986 ) (29,471 ) Acquisition-related intangibles (199,035 ) (217,961 ) Other (2,523 ) (2,971 ) Total gross deferred tax liabilities (321,762 ) (300,792 ) Net deferred tax liabilities $ (73,926 ) $ (64,855 ) |
Schedule of changes in unrealized tax benefits | The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2014 through fiscal 2016 : Unrealized Tax Benefits Balance, November 2, 2013 $ 68,139 Additions for tax positions related to current year 214 Reductions for tax positions related to prior years (1,321 ) Reductions due to lapse of applicable statute of limitations (1,568 ) Balance, November 1, 2014 $ 65,464 Additions for tax positions related to current year 524 Additions for tax positions related to prior years 9,799 Reductions for tax positions related to prior years (2,745 ) Reductions due to lapse of applicable statute of limitations (1,260 ) Balance, October 31, 2015 $ 71,782 Additions for tax positions related to current year 2,539 Reductions for tax positions related to prior years (4,475 ) Reductions due to lapse of applicable statute of limitations (1,311 ) Balance, October 29, 2016 $ 68,535 |
Debt Schedule of Long-term Debt
Debt Schedule of Long-term Debt Instruments (Tables) | 12 Months Ended |
Oct. 29, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | October 29, 2016 October 31, 2015 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 2016 Notes $ — $ — $ 375,000 $ 406 2023 Notes 500,000 4,047 500,000 4,659 2025 Notes 850,000 8,034 — — 2045 Notes 400,000 5,742 — — Total $ 1,750,000 $ 17,823 $ 875,000 $ 5,065 Debt, current $ — $ — $ 375,000 $ 406 Long-term debt $ 1,750,000 $ 17,823 $ 500,000 $ 4,659 The Company’s principal payments related to its debt obligations are as follows: $500.0 million in fiscal 2023, $850.0 million in fiscal 2025 and $400.0 million in fiscal 2045. |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | Nov. 02, 2013 |
Unrealized gains and losses on available-for-sale securities classified as short-term investments | ||||
Unrealized gains on securities classified as short-term investments | $ 846 | $ 233 | ||
Unrealized losses on securities classified as short-term investments | (294) | (584) | ||
Net unrealized losses on securities classified as short-term investments | 552 | (351) | ||
Cash and cash equivalents: | ||||
Cash | 67,877 | 72,638 | ||
Total cash and cash equivalents | 921,132 | 884,353 | $ 569,233 | $ 392,089 |
Short-term investments: | ||||
Available-for-sale | 3,110,011 | 2,144,575 | ||
Held-to-maturity Securities, Current | 24,650 | 0 | ||
Total short-term investments | 3,134,661 | 2,144,575 | ||
Available-for-sale [Member] | ||||
Cash and cash equivalents: | ||||
Cash Equivalents | 693,255 | 807,935 | ||
Held-to-maturity [Member] | ||||
Cash and cash equivalents: | ||||
Cash Equivalents | $ 160,000 | $ 3,780 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Supplemental Cash Flow Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Cash paid during the fiscal year for: | |||
Income taxes | $ 77,918 | $ 142,931 | $ 73,067 |
Interest | $ 41,701 | $ 25,625 | $ 27,931 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 | |
Inventories | |||
Raw materials | $ 20,263 | $ 21,825 | |
Work in process | 232,196 | 261,520 | |
Finished goods | 124,096 | 128,969 | |
Total inventories | [1] | $ 376,555 | $ 412,314 |
[1] | Includes $2,486 and $2,923 related to stock-based compensation at October 29, 2016 and October 31, 2015, respectively. |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Useful lives of property, plant and equipment | |||
Depreciation expense | $ 134,540 | $ 130,147 | $ 114,064 |
Buildings & building equipment [Member] | |||
Useful lives of property, plant and equipment | |||
Maximum | 25 years | ||
Minimum | 25 years | ||
Machinery & equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Usefull Life, Minimum | 3 years | ||
Useful lives of property, plant and equipment | |||
Property, Plant and Equipment, Usefull Life, Maximum | 8 years | ||
Office equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Usefull Life, Minimum | 3 years | ||
Useful lives of property, plant and equipment | |||
Property, Plant and Equipment, Usefull Life, Maximum | 8 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands | 12 Months Ended | |
Oct. 29, 2016USD ($)segment | Oct. 31, 2015USD ($) | |
Changes in goodwill | ||
Balance at beginning of year | $ 1,636,526 | $ 1,642,438 |
Foreign currency translation adjustment | (1,456) | (8,470) |
Balance at end of year | $ 1,679,116 | 1,636,526 |
Number of operating segments | segment | 7 | |
Number of reportable segments | segment | 1 | |
Hittite Microwave Corporation [Member] | ||
Changes in goodwill | ||
Acquisition | $ 0 | |
Goodwill, Purchase Accounting Adjustments | (1,105) | |
Other Acquisitions [Member] | ||
Changes in goodwill | ||
Acquisition | $ 44,046 | $ 3,663 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Completed IPR&D Projects | $ 16,500 | ||
Gross Carrying Amount | 718,365 | $ 677,264 | |
Accumulated Amortization | 168,997 | 93,747 | |
Amortization of intangibles | $ 75,250 | 92,093 | $ 27,906 |
Weighted Average Useful Lives (in Years) | 3 years 182 days | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2,015 | $ 79,794 | ||
2,016 | 78,475 | ||
2,017 | 75,286 | ||
2,018 | 75,047 | ||
2,019 | 74,627 | ||
IPR&D [Member] | |||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Indefinite-Lived Intangible Assets | 33,100 | ||
Customer Relationships [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 649,159 | 624,900 | |
Accumulated Amortization | 158,979 | 88,913 | |
Technology-based [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 22,231 | 15,100 | |
Accumulated Amortization | 8,911 | 4,834 | |
Trade Names [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 600 | 0 | |
Accumulated Amortization | 60 | 0 | |
Order or Production Backlog [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 200 | 0 | |
Accumulated Amortization | 0 | 0 | |
IPR&D [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 46,175 | 37,264 | |
Accumulated Amortization | $ 1,047 | $ 0 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Derivative Fair Value of Hedging Instruments (Details) - Forward foreign currency exchange contracts [Member] - Designated as Hedging Instrument [Member] - Accrued Liabilities [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Fair value of hedging instruments | ||
Balance sheet location, forward foreign currency exchange contracts | Accrued liabilities | |
Forward foreign currency exchange contracts | $ 5,260 | $ 3,091 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Derivative Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands, number in Millions | Jun. 03, 2013 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative effectiveness description | no material ineffectiveness | no material ineffectiveness | ||
Derivative, Notional Amount | $ 500,000 | |||
Gain on Termination of Rate Lock Agreement | $ 11,000 | |||
Effect of derivative instruments designated as cash flow hedges | ||||
(Gain) loss recognized in OCI on derivatives (net of taxes) | $ (4,629) | (28,798) | $ (9,350) | |
Loss (gain) reclassified from OCI into income (net of taxes) | 3,437 | 10,447 | 912 | |
Tax effect on changes in fair value of derivatives | 903 | 10,889 | 916 | |
Tax effect on realized (gain) loss reclassification | 1,050 | 1,064 | $ 148 | |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Effect of derivative instruments designated as cash flow hedges | ||||
Tax effect on changes in fair value of derivatives | ||||
Tax effect on realized (gain) loss reclassification | ||||
Fair Value, Measurements, Nonrecurring [Member] | 10 year US Treasury rate of 1.7845% [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Derivative Accumulated Gains or Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Accounting Policies [Abstract] | |||
Changes in fair value of derivatives - (loss) gain, net of tax | $ (4,629) | $ (28,798) | $ (9,350) |
Loss (gain) reclassified into earnings from other comprehensive income (loss), net of tax | $ 3,437 | $ 10,447 | $ 912 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Derivatives Textual (Details) - USD ($) $ in Thousands, number in Millions | 1 Months Ended | 12 Months Ended | ||||
Aug. 29, 2014 | Jun. 30, 2009 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | Jun. 03, 2013 | |
Derivative [Line Items] | ||||||
Derivative Liability | $ (5,231) | $ (3,083) | ||||
Derivative Asset | 557 | 813 | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 3,900 | |||||
Contracts period | one year or less | |||||
Derivative, Notional Amount | 500,000 | |||||
Derivative, Inception Date | Oct. 28, 2014 | |||||
Aggregate principal amount of debt | $ 1,750,000 | $ 875,000 | ||||
Maturity date of senior unsecured notes | Aug. 29, 2014 | |||||
Derivative effectiveness description | no material ineffectiveness | no material ineffectiveness | ||||
Derivative ineffectiveness recognized | $ 0 | $ 0 | ||||
Payments of Derivative Instruments | (33,430) | 0 | $ 0 | |||
Forward Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | 46,200 | 57,900 | ||||
Notional Amount of Cash Flow Hedges | 179,500 | 163,900 | ||||
Swap, Receivable [Member] | ||||||
Derivative [Line Items] | ||||||
Number of Installments | Two | |||||
Swap, Payable [Member] | ||||||
Derivative [Line Items] | ||||||
Number of Installments | Four | |||||
Fair Value, Measurements, Nonrecurring [Member] | 10 year US Treasury rate of 1.7845% [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate to be paid on long term notes | 0.00% | |||||
Fair Value, Measurements, Recurring [Member] | ||||||
Derivative [Line Items] | ||||||
Contracts in liability position | $ (5,788) | $ (3,896) |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Fair Value (Details) - Recurring [Member] - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 | ||
Other Assets | ||||
Deferred compensation investments | $ 26,916 | $ 24,124 | ||
Total assets measured at fair value | 3,830,182 | 2,976,634 | ||
Liabilities, Fair Value Disclosure, Recurring | 2,843 | |||
Long-term debt | ||||
Business Combination, Contingent Consideration, Liability | 3,083 | |||
Interest Rate Derivative Liabilities, at Fair Value | 32,737 | |||
Total liabilities measured at fair value | 38,663 | |||
Available-for-sale, amortized cost basis | 3,500,000 | 2,600,000 | ||
Contracts in liability position | (5,788) | (3,896) | ||
Institutional Money Market Funds [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 277,595 | 198,853 | ||
Corporate Obligations [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 415,660 | [1] | 609,082 | [2] |
Corporate Obligations [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 2,518,148 | [1] | 1,899,374 | [2] |
Floating rate notes, issued at par [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 29,989 | 99,648 | ||
Floating rate notes [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 561,874 | [1] | 145,553 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Other Assets | ||||
Deferred compensation investments | 26,916 | 24,124 | ||
Total assets measured at fair value | 304,511 | 222,977 | ||
Liabilities, Fair Value Disclosure, Recurring | 0 | |||
Long-term debt | ||||
Business Combination, Contingent Consideration, Liability | 0 | |||
Total liabilities measured at fair value | 0 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Institutional Money Market Funds [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 277,595 | 198,853 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Obligations [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 0 | [1] | 0 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Obligations [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 0 | [1] | 0 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Floating rate notes, issued at par [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 0 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Floating rate notes [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 0 | [1] | 0 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | ||||
Other Assets | ||||
Deferred compensation investments | 0 | 0 | ||
Total assets measured at fair value | 3,525,671 | 2,753,657 | ||
Liabilities, Fair Value Disclosure, Recurring | 0 | |||
Long-term debt | ||||
Business Combination, Contingent Consideration, Liability | 5,231 | 3,083 | ||
Interest Rate Derivative Liabilities, at Fair Value | 32,737 | |||
Total liabilities measured at fair value | 35,820 | |||
Significant Other Observable Inputs (Level 2) [Member] | Institutional Money Market Funds [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 415,660 | [1] | 609,082 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 2,518,148 | [1] | 1,899,374 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Floating rate notes, issued at par [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 29,989 | 99,648 | ||
Significant Other Observable Inputs (Level 2) [Member] | Floating rate notes [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 561,874 | [1] | 145,553 | [2] |
Unobservable Inputs (Level 3) [Member] | ||||
Other Assets | ||||
Deferred compensation investments | 0 | 0 | ||
Total assets measured at fair value | 0 | 0 | ||
Liabilities, Fair Value Disclosure, Recurring | 7,555 | 2,843 | ||
Long-term debt | ||||
Business Combination, Contingent Consideration, Liability | 0 | |||
Total liabilities measured at fair value | 2,843 | |||
Unobservable Inputs (Level 3) [Member] | Institutional Money Market Funds [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 0 | 0 | ||
Unobservable Inputs (Level 3) [Member] | Corporate Obligations [Member] | ||||
Available-for-sale: | ||||
Cash equivalents | 0 | [1] | 0 | [2] |
Unobservable Inputs (Level 3) [Member] | Corporate Obligations [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 0 | [1] | 0 | [2] |
Unobservable Inputs (Level 3) [Member] | Floating rate notes, issued at par [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | 0 | |||
Unobservable Inputs (Level 3) [Member] | Floating rate notes [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||||
Available-for-sale: | ||||
Short-term investments | $ 0 | [1] | $ 0 | [2] |
[1] | The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2016 was $3.5 billion. | |||
[2] | The amortized cost of the Company’s investments classified as available-for-sale as of October 31, 2015 was $2.6 billion. |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Fair Value Contingent Consideration Significant Unobservable Inputs (Details) $ in Thousands | 12 Months Ended |
Oct. 29, 2016USD ($) | |
Fair Value Measurement Of Contingent Consideration Encompasses Following Significant Unobservable Inputs Table [Abstract] | |
Estimated contingent consideration payments | $ 8,500 |
Minimum [Member] | |
Fair Value Measurement Of Contingent Consideration Encompasses Following Significant Unobservable Inputs Table [Abstract] | |
Discount rate | 0.00% |
Timing of cash flow | 1 year |
Maximum [Member] | |
Fair Value Measurement Of Contingent Consideration Encompasses Following Significant Unobservable Inputs Table [Abstract] | |
Discount rate | 10.00% |
Probability of achievement | 100.00% |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Fair Value Change in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | ||
Change in the fair value of the contingent consideration | |||
Contingent consideration, beginning balance | $ 2,843 | $ 4,806 | |
Contingent consideration liability recorded | (7,500) | ||
Payment made | [1] | (1,489) | (2,000) |
Fair value adjustment | [2] | (888) | (137) |
Contingent consideration, ending balance | 2,843 | ||
Fair Value, Measurements, Recurring [Member] | |||
Change in the fair value of the contingent consideration | |||
Liabilities, Fair Value Disclosure, Recurring | 2,843 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Change in the fair value of the contingent consideration | |||
Business Combination, Contingent Consideration, Effect on Foreign Currency | (411) | 174 | |
Liabilities, Fair Value Disclosure, Recurring | $ 7,555 | $ 2,843 | |
[1] | Recorded in research and development expense in the consolidated statements of income. | ||
[2] | The payment is reflected in the statements of cash flows as cash used in financing activities related to the liability recognized at fair value as of the acquisition date and as cash provided by operating activities related to the fair value adjustments previously recognized in earnings. |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Fair Value Textual (Details) - USD ($) $ in Thousands | Jun. 03, 2013 | Apr. 04, 2011 | Aug. 29, 2014 | Jun. 30, 2013 | Oct. 29, 2016 | Dec. 14, 2015 | Oct. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cash and held to maturity investments | $ 252,500 | $ 76,400 | |||||
Aggregate principal amount of debt | 1,750,000 | 875,000 | |||||
Maturity date of senior unsecured notes | Aug. 29, 2014 | ||||||
3.0% Senior unsecured notes due April 15, 2016 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Debt Instrument, Frequency of Periodic Payment | semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing | ||||||
3.0% Senior unsecured notes due April 15, 2016 [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term debt, fair value | 378,600 | ||||||
2.875% Senior unsecured notes due June 1, 2023 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Maturity date of senior unsecured notes | Jun. 1, 2023 | ||||||
Debt Instrument, Frequency of Periodic Payment | semi-annual fixed interest payments due on June 1 and December 1 of each year, commencing December 1, 2013 | ||||||
2.875% Senior unsecured notes due June 1, 2023 [Member] | Nonrecurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Aggregate principal amount of debt | $ 500,000 | ||||||
Interest rate to be paid on long term notes | 2.875% | ||||||
Long-term debt, fair value | $ 501,300 | $ 480,900 | |||||
3.9% Senior unsecured notes due December 15, 2025 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Maturity date of senior unsecured notes | Dec. 15, 2025 | ||||||
Debt Instrument, Frequency of Periodic Payment | semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing June 15, 2016 | ||||||
3.9% Senior unsecured notes due December 15, 2025 [Member] | Nonrecurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Aggregate principal amount of debt | $ 850,000 | ||||||
Interest rate to be paid on long term notes | 3.90% | ||||||
Long-term debt, fair value | $ 901,500 | ||||||
5.3% Senior unsecured notes due December 15, 2045 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Maturity date of senior unsecured notes | Dec. 15, 2045 | ||||||
Debt Instrument, Frequency of Periodic Payment | semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing June 15, 2016 | ||||||
5.3% Senior unsecured notes due December 15, 2045 [Member] | Nonrecurring [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Aggregate principal amount of debt | $ 400,000 | ||||||
Interest rate to be paid on long term notes | 5.30% | ||||||
Long-term debt, fair value | $ 425,100 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Accumulated Other Comprehensive (Loss) Income (Details) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016USD ($) | Oct. 31, 2015USD ($) | Nov. 01, 2014USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive loss | $ (73,814) | $ (50,851) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (23,672) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 5,334 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 847 | 7,167 | |
Other Comprehensive Income (Loss), Tax | (4,625) | ||
Other comprehensive (loss) income | (22,963) | 117,675 | $ (87,980) |
Total accumulated other comprehensive loss | (50,851) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,056 | $ 219,890 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 3,900 | ||
TotalNumberofInvestmentSecurites | 100 | 76 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 25 | 23 | |
Available-for-sale Securities, Gross Unrealized Loss | $ 294 | $ 584 | |
Accumulated other comprehensive loss - pension plans: | |||
Fair value of investments with unrealized losses | 729,600 | 823,400 | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive loss | (24,063) | (18,057) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (4,831) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | ||
Other Comprehensive Income (Loss), Tax | (1,175) | ||
Other comprehensive (loss) income | (6,006) | ||
Total accumulated other comprehensive loss | (18,057) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive loss | 800 | 216 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 613 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | ||
Other Comprehensive Income (Loss), Tax | (29) | ||
Other comprehensive (loss) income | 584 | ||
Total accumulated other comprehensive loss | 216 | ||
Accumulated Other-than-Temporary Impairment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive loss | (281) | (544) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 290 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | ||
Other Comprehensive Income (Loss), Tax | (27) | ||
Other comprehensive (loss) income | 263 | ||
Total accumulated other comprehensive loss | (544) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive loss | (18,884) | (17,692) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (5,532) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 4,487 | 11,511 | |
Other Comprehensive Income (Loss), Tax | (147) | ||
Other comprehensive (loss) income | (1,192) | ||
Total accumulated other comprehensive loss | (17,692) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | (1,050) | (1,064) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3,437 | 10,447 | |
Accumulated Defined Benefit Plans Adjustment, Net Transition Asset (Obligation) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 17 | 18 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (229) | |
Accumulated Defined Benefit Plans Adjustment, Actuarial Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 830 | 7,378 | |
Accumulated Defined Benefit Plans Adjustment, Irish Curtailment/Settlement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (231,151) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive loss | (31,386) | (14,774) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (14,212) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 847 | 238,318 | |
Other Comprehensive Income (Loss), Tax | (3,247) | ||
Other comprehensive (loss) income | (16,612) | ||
Total accumulated other comprehensive loss | (14,774) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax | (228) | (28,875) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 619 | 209,443 | |
Cost of Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2,059 | 9,235 | |
Research and Development Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,038 | 5,200 | |
Selling, Marketing, General and Administrative Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (579) | 8,361 | |
Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,096 | 1,096 | |
Amortization into interest expense from swap termination | 3,065 | 0 | |
Fixed asset reclassification [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | (1,466) | |
Other Operating Income (Expense) [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 0 | $ (8,723) |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Earnings per share | |||||||||||
Income from continuing operations, net of tax | $ 861,664 | $ 696,878 | $ 629,320 | ||||||||
Net income | $ 861,664 | $ 696,878 | $ 629,320 | ||||||||
Basic shares: | |||||||||||
Weighted average shares outstanding | 307,854 | 307,135 | 308,790 | 311,166 | 312,829 | 313,877 | 312,660 | 311,274 | 308,736 | 312,660 | 313,195 |
Earnings per share - Basic | |||||||||||
Income from continuing operations, net of tax | $ 2.79 | $ 2.23 | $ 2.01 | ||||||||
Net income | $ 0.96 | $ 0.75 | $ 0.55 | $ 0.53 | $ 0.31 | $ 0.69 | $ 0.66 | $ 0.57 | |||
Diluted shares: | |||||||||||
Weighted average shares outstanding | 307,854 | 307,135 | 308,790 | 311,166 | 312,829 | 313,877 | 312,660 | 311,274 | 308,736 | 312,660 | 313,195 |
Assumed exercise of common stock equivalents | 3,572 | 4,212 | 4,832 | ||||||||
Weighted average common and common equivalent shares | 311,633 | 310,558 | 312,250 | 314,793 | 316,571 | 318,187 | 317,047 | 315,684 | 312,308 | 316,872 | 318,027 |
Earnings per share - Diluted | |||||||||||
Income from continuing operations, net of tax | $ 2.76 | $ 2.20 | $ 1.98 | ||||||||
Net income | $ 0.95 | $ 0.74 | $ 0.55 | $ 0.52 | $ 0.30 | $ 0.68 | $ 0.65 | $ 0.57 | |||
Outstanding stock options | 3,077 | 2,089 | 2,911 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Other Textuals (Details) - USD ($) $ in Thousands | Jul. 22, 2014 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | Oct. 30, 2010 |
Accounting Policies [Line Items] | |||||
Other Assets, Noncurrent | $ 46,721 | $ 40,561 | |||
percentage of revenue to individual customer | 12.00% | 13.00% | 10.00% | ||
Total estimated purchase price | $ 2,400,000 | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||
Fiscal year term | P52W | P52W | P53W | ||
Deferred income on shipments to distributors, gross | $ 432,300 | $ 379,900 | |||
Deferred income on shipments to distributors, cost of sales | $ 80,800 | 79,800 | |||
Standard product warranty term | 12 months | ||||
Advertising expense | $ 4,700 | 3,300 | $ 3,200 | ||
Stock-based compensation awards vesting period (years) | 5 years | ||||
Restricted stock units compensation awards vesting period (years) | 3 years | ||||
Short-term Debt | $ 2,000,000 | ||||
MarketBasedRestrictedstockMinimumissueduponvesting | 0.00% | ||||
MarketBasedRestrictedStockMaximumissueduponVesting | 200.00% | ||||
Assets, Noncurrent | $ 2,359,299 | 2,335,119 | |||
Assets | 7,970,278 | 7,058,777 | |||
Debt, Current | 374,594 | ||||
Liabilities, Current | 782,934 | 1,113,585 | |||
Unsecured Long-term Debt, Noncurrent | 1,732,177 | 495,341 | |||
Liabilities, Noncurrent | 2,021,726 | 872,233 | |||
Liabilities and Equity | $ 7,970,278 | 7,058,777 | |||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||
Fiscal year term | P52W | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||
Fiscal year term | P53W | ||||
Restatement Adjustment [Member] | |||||
Accounting Policies [Line Items] | |||||
Other Assets, Noncurrent | (3,401) | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||
Assets, Noncurrent | (3,401) | ||||
Assets | (3,401) | ||||
Debt, Current | (245) | ||||
Liabilities, Current | (245) | ||||
Unsecured Long-term Debt, Noncurrent | (3,156) | ||||
Liabilities, Noncurrent | (3,156) | ||||
Liabilities and Equity | (3,401) | ||||
Scenario, Previously Reported [Member] | |||||
Accounting Policies [Line Items] | |||||
Other Assets, Noncurrent | 43,962 | ||||
Summary of Significant Accounting Policies (Textuals) [Abstract] | |||||
Assets, Noncurrent | 2,338,520 | ||||
Assets | 7,062,178 | ||||
Debt, Current | 374,839 | ||||
Liabilities, Current | 1,113,830 | ||||
Unsecured Long-term Debt, Noncurrent | 498,497 | ||||
Liabilities, Noncurrent | 875,389 | ||||
Liabilities and Equity | $ 7,062,178 |
Stock-Based Compensation and 57
Stock-Based Compensation and Shareholders' Equity - Stock Option Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Market Based Restricted Stock Units Granted | $ 102 | $ 75 | $ 86 |
MarketBasedRestrictedStockUnitsGrantDateFairValue | $ 58.95 | $ 55.67 | $ 50.79 |
Stock Options | |||
Options granted (in thousands) | 1,814 | 1,954 | 2,240 |
Weighted-average exercise price-stock options | $ 55.19 | $ 57.20 | $ 51.52 |
Weighted-average grant-date fair value | $ 12.67 | $ 10.38 | $ 8.74 |
Assumptions: | |||
Weighted-average expected volatility | 34.00% | 25.90% | 24.90% |
Weighted-average expected term (in years) | 5 years 37 days | 5 years 110 days | 5 years 110 days |
Weighted-average risk-free interest rate | 1.40% | 1.60% | 1.70% |
Weighted-average expected dividend yield | 3.00% | 2.80% | 2.90% |
MarketBasedRestrictedStockUnitsVolatilityAssumption | 25.10% | 20.00% | 23.20% |
MarketBasedRestrictedStockUnitRiskFreeInterestRateAssumption | 1.10% | 1.10% | 0.80% |
MarketBasedRestrictedStockUnitDividendYieldAssumption | 3.00% | 2.80% | 2.80% |
Stock-Based Compensation and 58
Stock-Based Compensation and Shareholders' Equity - Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | ||
Options Outstanding (in shares): | ||||
Options outstanding November 3, 2012 | 12,181 | |||
Options granted | 1,814 | 1,954 | 2,240 | |
Options exercised | (1,790) | |||
Options forfeited | (482) | |||
Options expired | (19) | |||
Options outstanding at November 2, 2013 | 11,704 | 12,181 | ||
Options exercisable at November 2, 2013 | 6,577 | |||
Options vested or expected to vest at November 2, 2013 | [1] | 11,321 | ||
Weighted-Average Exercise Price Per Share: | ||||
Options outstanding November 3, 2012 | $ 41.60 | |||
Options granted | 55.19 | |||
Options exercised | 34.43 | |||
Options forfeited | 50.84 | |||
Options expired | 40.42 | |||
Options outstanding at November 2, 2013 | 44.43 | $ 41.60 | ||
Options exercisable at November 2, 2013 | 37.90 | |||
Options vested or expected to vest at November 2, 2013 | [1] | $ 44.09 | ||
Options outstanding, Weighted-Average Remaining Contractual Term in Years | 6 years | |||
Options exercisable, Weighted-Average Remaining Contractual Term in Years | 4 years 182 days | |||
Options vested or expected to vest, Weighted-Average Remaining Contractual Term in Years | [1] | 6 years | ||
Options outstanding, Aggregate Intrinsic Value | $ 223,611 | |||
Options exercisable, Aggregate Intrinsic Value | 168,549 | |||
Options vested or expected to vest, Aggregate Intrinsic Value | [1] | $ 220,085 | ||
[1] | In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options. |
Stock-Based Compensation and 59
Stock-Based Compensation and Shareholders' Equity - Restricted Stock Unit Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Market Based Restricted Stock Units Granted | $ 102 | $ 75 | $ 86 |
Restricted Stock Units Outstanding (in shares): | |||
Restricted stock units outstanding at November 3, 2012 | 2,698 | ||
Units granted | 1,099 | ||
Restrictions lapsed | (905) | ||
Forfeited | (202) | ||
Restricted stock units outstanding at November 2, 2013 | 2,690 | 2,698 | |
Weighted Average Grant-Date Fair Value Per Share: | |||
Restricted stock units outstanding at November 3, 2012 | $ 47.59 | ||
Units granted | 51.59 | ||
Restrictions lapsed | 44.30 | ||
Forfeited | 50.34 | ||
Restricted stock units outstanding at November 2, 2013 | $ 50.11 | $ 47.59 |
Stock-Based Compensation and 60
Stock-Based Compensation and Shareholders' Equity - Textual (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Oct. 29, 2016USD ($)installment$ / sharesshares | Oct. 31, 2015USD ($)$ / sharesshares | Nov. 01, 2014USD ($)shares | Oct. 28, 2006shares | |
Stock-Based Compensation (Textuals) [Abstract] | ||||
Stock-based compensation awards vesting period (years) | 5 years | |||
Percentage of options exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 20.00% | |||
Maximum contractual term of all option | 10 years | |||
Total number of common shares available for future grant | 14,800,000 | |||
Shares reserved for future issuance under 2006 plan | 29,200,000 | |||
Minimum maturity of traded options used to estimate volatility | 1 year | |||
Annual forfeiture rate | 4.70% | |||
Restricted stock units installment | installment | 1 | |||
Restricted stock installment period | 3 years | |||
Total intrinsic value of options exercised | $ | $ 46.6 | $ 99.2 | $ 130.6 | |
Proceeds (cash) received from exercise of options | $ | 61.5 | 122.6 | 200.1 | |
Total unrecognized compensation cost related to unvested share-based awards, before tax consideration | $ | $ 112.3 | |||
Weighted-average period for recognition of compensation cost in years | 1 year 146 days | |||
Total grant-date fair value of vested stock options | $ | $ 62.8 | $ 65.6 | $ 57.4 | |
Preferred stock, shares authorized | 471,934 | 471,934 | ||
Preferred stock, par value | $ / shares | $ 1 | $ 1 | ||
Preferred stock, shares outstanding | 0 | |||
Preferred stock, shares issued | 0 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 700,000 | 700,000 | ||
GrandDateFairValueofRestrictedStockUnitsissuedinconnectionwithAcquisition | $ / shares | $ 48.20 | |||
Stock Options [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Stock-based compensation awards vesting period (years) | 5 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Stock-based compensation awards vesting period (years) | 3 years | |||
2006 Stock Incentive Plan [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Maximum common stock granted | 34,000,000 | |||
Share-based compensation arrangement by share-based payment award, terms of award | While the Company may grant to employees options that become exercisable at different times or within different periods, the Company has generally granted to employees options that vest over five years and become exercisable in annual installments of 20% on each of the first, second, third, fourth and fifth anniversaries of the date of grant. | |||
Common Stock Repurchase Program [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Amount authorized to repurchase company common stock | $ | $ 6,200 | |||
Repurchased common stock, shares | 147,000,000 | |||
Repurchased common stock, value | $ | $ 5,400 | |||
Repurchase of common stock, shares | $ | $ 792.5 |
Industry, Segment and Geograp61
Industry, Segment and Geographic Information - Revenue Trends by End Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | ||
Revenue Trends | ||||||||||||
Revenue | $ 1,003,623 | $ 869,591 | $ 778,766 | $ 769,429 | $ 978,722 | $ 863,365 | $ 821,019 | $ 771,986 | $ 3,421,409 | $ 3,435,092 | $ 2,864,773 | |
% of Total Product Revenue | 100.00% | [1] | 100.00% | 100.00% | ||||||||
Industrial [Member] | ||||||||||||
Revenue Trends | ||||||||||||
Revenue | $ 1,502,019 | $ 1,494,898 | $ 1,344,906 | |||||||||
% of Total Product Revenue | 44.00% | [1] | 44.00% | 47.00% | ||||||||
Automotive [Member] | ||||||||||||
Revenue Trends | ||||||||||||
Revenue | $ 540,940 | $ 525,893 | $ 525,123 | |||||||||
% of Total Product Revenue | 16.00% | [1] | 15.00% | 18.00% | ||||||||
Consumer [Member] | ||||||||||||
Revenue Trends | ||||||||||||
Revenue | $ 688,289 | $ 729,860 | $ 327,434 | |||||||||
% of Total Product Revenue | 20.00% | [1] | 21.00% | 11.00% | ||||||||
Communications [Member] | ||||||||||||
Revenue Trends | ||||||||||||
Revenue | $ 690,161 | $ 684,441 | $ 667,310 | |||||||||
% of Total Product Revenue | 20.00% | [1] | 20.00% | 23.00% | ||||||||
[1] | The sum of the individual percentages does not equal the total due to rounding |
Industry, Segment and Geograp62
Industry, Segment and Geographic Information - Revenue Trends and Property, Plant and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 1,003,623 | $ 869,591 | $ 778,766 | $ 769,429 | $ 978,722 | $ 863,365 | $ 821,019 | $ 771,986 | $ 3,421,409 | $ 3,435,092 | $ 2,864,773 |
Property, Plant and Equipment, Net [Abstract] | |||||||||||
United States, property, plant and equipment | 236,625 | 253,417 | 236,625 | 253,417 | 255,473 | ||||||
Total property, plant and equipment | 636,116 | 644,110 | 636,116 | 644,110 | 622,422 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,299,629 | 1,325,279 | 821,554 | ||||||||
Rest of North and South America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 95,957 | 97,189 | 96,957 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 924,849 | 939,230 | 924,477 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 291,649 | 319,569 | 308,054 | ||||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 575,690 | 511,365 | 459,260 | ||||||||
Rest of Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 233,635 | 242,460 | 254,471 | ||||||||
Subtotal all foreign countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 2,121,780 | 2,109,813 | 2,043,219 | ||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
United States, property, plant and equipment | 399,491 | 390,693 | 399,491 | 390,693 | 366,949 | ||||||
Irish [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
United States, property, plant and equipment | 174,952 | 173,703 | 174,952 | 173,703 | 167,359 | ||||||
Philippines [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
United States, property, plant and equipment | 194,587 | 195,662 | 194,587 | 195,662 | 180,586 | ||||||
All Other Countries [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
United States, property, plant and equipment | $ 29,952 | $ 21,328 | $ 29,952 | $ 21,328 | $ 19,004 |
Industry, Segment and Geograp63
Industry, Segment and Geographic Information - Textual (Details) | 12 Months Ended |
Oct. 29, 2016segment | |
Industry, Segment and Geographic Information (Textuals) [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 7 |
Special Charges - Summary of Co
Special Charges - Summary of Company's Special Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Summary of the Company's special charges, Income Statement | |||||||||||
Total Fiscal Charges | $ 0 | $ 0 | $ 13,684 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 13,684 | $ 0 | $ 37,322 |
Reduction of Operating Costs [Member] | |||||||||||
Summary of the Company's special charges, Income Statement | |||||||||||
Severance Costs | 37,873 | ||||||||||
Facility closure costs | 459 | ||||||||||
Non-cash impairment charge | 433 | ||||||||||
Restructuring Reserve, Translation and Other Adjustment | (1,443) | ||||||||||
Total Fiscal Charges | $ 13,684 | $ 37,322 |
Special Charges - Restructuring
Special Charges - Restructuring Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance | $ 5,877 | $ 5,877 | |||||||||
Special charges | $ 0 | $ 0 | $ 13,684 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | 13,684 | $ 0 | $ 37,322 |
Ending balance | 12,374 | 5,877 | 12,374 | 5,877 | |||||||
Reduction of Operating Costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance | $ 5,877 | $ 40,503 | 5,877 | 40,503 | 19,955 | ||||||
Special charges | 13,684 | 37,322 | |||||||||
Severance payments | (7,184) | (33,220) | (16,790) | ||||||||
Facility closure costs | (459) | ||||||||||
Non-cash portion of special charge | (433) | ||||||||||
Non-cash impairment charge | (433) | ||||||||||
Effect of foreign currency on accrual | (3) | (514) | 16 | ||||||||
Ending balance | $ 12,374 | $ 5,877 | $ 12,374 | $ 5,877 | $ 40,503 |
Special Charges - Textual (Deta
Special Charges - Textual (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 29, 2016USD ($) | Jul. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May 02, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 29, 2016USD ($)employee | Oct. 31, 2015USD ($) | Nov. 01, 2014USD ($)Person | |
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ 0 | $ 0 | $ 13,684 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 13,684 | $ 0 | $ 37,322 |
Number Of Employees Still Employed Who Are Planned To Be Separated | employee | 44 | ||||||||||
Reduction of Operating Costs [Member] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ 13,684 | 37,322 | |||||||||
Severance Costs | 37,873 | ||||||||||
Facility closure costs | 459 | ||||||||||
Non-cash impairment charge | 433 | ||||||||||
Restructuring Reserve, Translation and Other Adjustment | $ 1,443 | ||||||||||
Reduction of Operating Costs 2013 [Member] [Domain] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Number of manufacturing engineering and selling marketing general and adminstrative employees related to action | Person | 341 | ||||||||||
Reduction of Operating Costs 2016 [Domain] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Number of manufacturing engineering and selling marketing general and adminstrative employees related to action | employee | 123 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, shares in Millions | Jul. 22, 2014USD ($)$ / shares | Oct. 29, 2016USD ($)segment$ / sharesshares | Oct. 31, 2015USD ($)$ / shares | Nov. 01, 2014USD ($)shares | Oct. 31, 2015USD ($)$ / shares | Jul. 26, 2016USD ($)$ / shares | |
Business Acquisition [Line Items] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 0.7 | 0.7 | |||||
Grant date fair value of restricted stock units issued in connection with Acquisition | $ / shares | $ 48.20 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 37,300,000 | ||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 300,000 | ||||||
Number of reportable segments | segment | 1 | ||||||
Number of operating segments | segment | 7 | ||||||
Short-term Debt | $ 2,000,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.166 | $ 0.166 | $ 0.166 | |||
Business Acquisition, Share Price | $ / shares | $ 78 | ||||||
Initial cash payments | $ 2,400,000,000 | ||||||
Business Acquisition Contingent Consideration Cash Payment | [1] | $ 1,489,000 | $ 2,000,000 | ||||
BusinessAcquisitionPurchasePriceAllocationIntangibleAssetsNotAmortizable1 | 900,000 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | 83,170,000 | 7,065,000 | $ 1,945,887,000 | ||||
Developed technology | $ 718,365,000 | 677,264,000 | $ 677,264,000 | ||||
Acquisition related costs | 9,700,000 | $ 41,200,000 | $ 50,900,000 | ||||
Linear Technology Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 58 | ||||||
Fair value of the consideration transferred totaled | $ 14,800,000,000 | ||||||
Business Acquisition, Share Price | $ / shares | $ 46 | ||||||
BusinessCombinationEquityInterestsIssuedandIssuableConversionRatioperShare | 0.2321 | ||||||
Acquisition related costs | 12,200,000 | ||||||
Expected Long Term Financing related to acquisition | $ 11,600,000,000 | ||||||
Business Combination Termination Rights Fee If Closing Conditions Are Not Satisfied | 700,000,000 | ||||||
Hittite Microwave Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Jul. 22, 2014 | ||||||
Fair value of replacement share-based awards | 6,541,000 | ||||||
Accounts receivable | 36,991,000 | ||||||
Intangible assets | 666,400,000 | ||||||
Fair value of the consideration transferred totaled | 2,424,446,000 | $ 2,400,000,000 | |||||
Short-term Debt | 2,000,000,000 | ||||||
Initial cash payments | 2,430,987,000 | ||||||
Goodwill acquired | $ 0 | ||||||
Deferred tax assets | 2,242,000 | ||||||
Deferred tax liabilities | $ 276,683,000 | ||||||
Selling, Marketing, General and Administrative Expense [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 9,700,000 | 33,300,000 | |||||
Nonoperating Income (Expense) [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 7,900,000 | ||||||
[1] | Recorded in research and development expense in the consolidated statements of income. |
Acquisitions Purchase Price Con
Acquisitions Purchase Price Consideration (Details) - USD ($) $ in Thousands | Jul. 22, 2014 | Nov. 01, 2014 |
Business Acquisition [Line Items] | ||
Total estimated purchase price | $ 2,400,000 | |
Hittite Microwave Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | 2,424,446 | $ 2,400,000 |
Fair value of replacement share-based awards | 6,541 | |
Total estimated purchase price | $ 2,430,987 |
Acquisitions Allocation of Asse
Acquisitions Allocation of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | Jul. 22, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,679,116 | $ 1,636,526 | $ 1,642,438 | |
Hittite Microwave Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 480,742 | |||
Marketable securities | 28,008 | |||
Accounts receivable | 36,991 | |||
Inventories | 115,377 | |||
Prepaid expenses and other assets | 24,088 | |||
Property, plant and equipment | 50,726 | |||
Deferred tax assets | 2,242 | |||
Intangible assets | 666,400 | |||
Goodwill | 1,355,972 | |||
Total assets | 2,760,546 | |||
Assumed liabilities | 52,876 | |||
Deferred tax liabilities | 276,683 | |||
Total estimated purchase price | $ 2,430,987 |
Acquisitions Intangible Assets
Acquisitions Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Nov. 01, 2014 | Jul. 22, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Lives (in Years) | 3 years 182 days | ||
Hittite Microwave Corporation [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 666,400 | ||
Weighted Average Useful Lives (in Years) | 9 years | ||
BusinessCombinationsAmortizableIntangibleAssets | 665,500 | ||
Hittite Microwave Corporation [Member] | Technology-Based Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 15,100 | ||
Weighted Average Useful Lives (in Years) | 4 years | ||
Hittite Microwave Corporation [Member] | Order or Production Backlog [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | 25,500 | ||
Weighted Average Useful Lives (in Years) | 1 year | ||
Hittite Microwave Corporation [Member] | Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 624,900 | ||
Weighted Average Useful Lives (in Years) | 9 years |
Acquisitions Pro Forma Financia
Acquisitions Pro Forma Financial Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Nov. 01, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ | $ 3,075,468 |
Net income | $ | $ 778,049 |
Basic net income per common share | $ / shares | $ 2.48 |
Diluted net income per common share | $ / shares | $ 2.44 |
Deferred Compensation Plan In72
Deferred Compensation Plan Investments (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 |
Components of Investments under Deferred Compensation Plan | ||
Deferred compensation plan investments | $ 26,916 | $ 24,124 |
Money market funds [Member] | ||
Components of Investments under Deferred Compensation Plan | ||
Deferred compensation plan investments | 3,129 | 3,659 |
Mutual funds [Member] | ||
Components of Investments under Deferred Compensation Plan | ||
Deferred compensation plan investments | $ 23,787 | $ 20,465 |
Other Investments (Details)
Other Investments (Details) $ in Millions | 12 Months Ended |
Oct. 29, 2016USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Cost-method Investments, Other than Temporary Impairment | $ 6 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 |
Accrued Liabilities | ||
Accrued compensation and benefits | $ 112,003 | $ 125,500 |
Interest Rate Derivatives, at Fair Value, Net | 0 | 32,737 |
accrued interest on debt | 26,411 | 6,069 |
Special charges | 12,374 | 5,877 |
Other | 105,069 | 79,412 |
Total accrued liabilities | $ 255,857 | $ 249,595 |
Lease Commitments (Details)
Lease Commitments (Details) $ in Thousands | Oct. 29, 2016USD ($) |
Schedule of future minimum rental payments required under long-term operating leases | |
2,014 | $ 34,328 |
2,015 | 25,301 |
2,016 | 8,130 |
2,017 | 7,033 |
2,018 | 4,439 |
Later Years | 3,394 |
Total | $ 82,625 |
Lease Commitments - Textuals (D
Lease Commitments - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Lease Commitments (Textuals) [Abstract] | |||
Expiration date of operating leases related to facilities, equipment and software | The Company leases certain facilities, equipment and software under various operating leases that expire at various dates through 2022 | ||
Total rental expense | $ 58.5 | $ 51.8 | $ 51 |
Retirement Plans - Net Annual P
Retirement Plans - Net Annual Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Net periodic pension cost | |||
Service cost | $ 5,520 | $ 15,675 | $ 13,532 |
Interest cost | 3,675 | 11,636 | 14,051 |
Expected return on plan assets | (3,764) | (13,509) | (13,615) |
Amortization of prior service cost | 0 | (229) | (240) |
Amortization of transitional obligation (asset) | 17 | 18 | 19 |
Recognized actuarial loss (gain) | 679 | 7,257 | 4,544 |
Defined Benefit Plan, Curtailments | 0 | (4,463) | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 151 | 226,810 | 0 |
Net periodic pension cost | $ 6,278 | $ 243,195 | $ 18,291 |
Retirement Plans - Obligation a
Retirement Plans - Obligation and Asset Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Benefit Plan, Settlements, Plan Assets | $ (632) | $ (412,136) | |
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 106,533 | 455,205 | |
Service cost | 5,520 | 15,675 | $ 13,532 |
Interest cost | 3,675 | 11,636 | 14,051 |
Participant contributions | 0 | 1,895 | |
Plan Amendments | (142) | 0 | |
Premiums paid | 0 | (332) | |
Actuarial loss (gain) | 30,223 | 114,767 | |
Benefits paid | (1,701) | (4,449) | |
Exchange rate adjustment | (13,765) | (55,142) | |
Benefit obligation at end of year | 129,711 | 106,533 | 455,205 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 70,365 | 269,371 | |
Actual return on plan assets | 9,002 | 24,283 | |
Employer contributions | 4,880 | 228,582 | |
Participant contributions | 0 | 1,895 | |
Premiums paid | 0 | (332) | |
Benefits paid | (1,701) | (4,449) | |
Exchange rate adjustment | (12,091) | (36,849) | |
Fair value of plan assets at end of year | 69,823 | 70,365 | $ 269,371 |
Reconciliation of Funded Status | |||
Funded status | (59,888) | (36,168) | |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 0 | 3,246 | |
Amounts Recognized in the Balance Sheet | |||
Current liabilities | (606) | (595) | |
Non-current liabilities | (59,282) | (38,819) | |
Net amount recognized | (59,888) | (36,168) | |
Reconciliation of Amounts Recognized in the Statement of Financial Position | |||
Initial net obligation | (24) | (44) | |
Prior Service credit | 148 | 0 | |
Net loss | (39,647) | (19,620) | |
Accumulated other comprehensive loss | (39,523) | (19,664) | |
Accumulated contributions in excess of net periodic benefit cost | (20,365) | (16,504) | |
Net amount recognized | (59,888) | (36,168) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Prior Service cost | (142) | 0 | |
Net loss (gain) arising during the year (includes curtailment gains not recognized as a component of net periodic cost) | 24,985 | 83,610 | |
Effect of exchange rates on amounts included in accumulated other comprehensive (loss) income | (4,137) | (26,366) | |
Amounts recognized as a component of net periodic benefit cost | |||
Amortization, settlement or curtailment recognition of net transition obligation | (17) | (18) | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 4,490 | |
Amortization or settlement recognition of net loss | (830) | (234,067) | |
Total recognized in other comprehensive loss (income) | 19,859 | (172,351) | |
Total recognized in net periodic cost and other comprehensive loss (income) | 26,137 | 70,844 | |
Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year | |||
Initial net obligation | (14) | (17) | |
Prior Service credit | 10 | 0 | |
Net loss | (1,808) | (697) | |
Total | (1,812) | $ (714) | |
Defined Benefit Plan, Curtailments | 0 | ||
Defined Benefit Plan, Settlements, Benefit Obligation | $ (632) |
Retirement Plans - Accumulated
Retirement Plans - Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 |
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | $ 129,711 | $ 61,713 |
Fair value of plan assets | 69,823 | 22,300 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 98,244 | 36,986 |
Accumulated benefit obligation | 93,164 | 31,790 |
Fair value of plan assets | $ 45,948 | $ 487 |
Retirement Plans - Weighted Ave
Retirement Plans - Weighted Average Assumptions (Details) | 12 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Projected benefit obligation | ||
Discount rate | 2.92% | 3.64% |
Rate of increase in compensation levels | 3.36% | 3.05% |
Net annual periodic pension cost was determined using the following weighted average assumptions | ||
Discount rate | 3.64% | 2.95% |
Expected long-term return on plan assets | 5.65% | 5.80% |
Rate of increase in compensation levels | 3.05% | 2.77% |
Retirement Plans - Plan Assets
Retirement Plans - Plan Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | ||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | $ 69,823 | $ 70,365 | $ 269,371 | |
Unit trust funds [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 4,681 | 5,198 | |
Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Purchases, Sales, and Settlements | (37) | |||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 30,584 | 30,273 | |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss | 0 | |||
Effect of conversion to reporting currency | (3) | (7) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 74 | 77 | 121 | |
Fixed income securities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [2] | 33,573 | 34,504 | |
Property [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Purchases, Sales, and Settlements | (2,907) | |||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss | 152 | |||
Effect of conversion to reporting currency | 0 | (274) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | $ 3,029 | |
Cash and cash equivalents [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | 985 | 390 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | 985 | 390 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Unit trust funds [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed income securities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [2] | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and cash equivalents [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | 985 | 390 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | 68,764 | 69,898 | ||
Significant Other Observable Inputs (Level 2) [Member] | Unit trust funds [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 4,681 | 5,198 | |
Significant Other Observable Inputs (Level 2) [Member] | Equities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 30,510 | 30,196 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed income securities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [2] | 33,573 | 34,504 | |
Significant Other Observable Inputs (Level 2) [Member] | Cash and cash equivalents [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | 0 | 0 | ||
Unobservable Inputs (Level 3) [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | 74 | 77 | ||
Unobservable Inputs (Level 3) [Member] | Unit trust funds [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 0 | 0 | |
Unobservable Inputs (Level 3) [Member] | Equities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [1] | 74 | 77 | |
Unobservable Inputs (Level 3) [Member] | Fixed income securities [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | [2] | 0 | 0 | |
Unobservable Inputs (Level 3) [Member] | Cash and cash equivalents [Member] | ||||
Plan assets measured at fair value on a recurring basis by investment categories | ||||
Total assets measured at fair value | $ 0 | $ 0 | ||
[1] | The majority of the assets in these categories are invested in a mix of equities, including those from North America, Europe and Asia. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. Due to the nature of the underlying assets of these funds, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with governing documents. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded. Level 3 securities are valued at book value per share based upon the financial statements of the investment. | |||
[2] | The majority of the assets in this category are invested in funds primarily concentrated in non-U.S. debt instruments. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Plan Assets Measured Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Equities [Member] | ||
Reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Plan assets, Beginning Balance | $ 77 | $ 121 |
Purchases, sales, and settlements, net | (37) | |
Realized and unrealized return on plan assets | 0 | |
Exchange rate adjustment | (3) | (7) |
Plan assets, Ending Balance | 74 | 77 |
Properties [Member] | ||
Reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Plan assets, Beginning Balance | 0 | 3,029 |
Purchases, sales, and settlements, net | (2,907) | |
Realized and unrealized return on plan assets | 152 | |
Exchange rate adjustment | 0 | (274) |
Plan assets, Ending Balance | $ 0 | $ 0 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | 12 Months Ended |
Oct. 29, 2016USD ($) | |
Expected Company Contributions | |
2,014 | $ 5,187 |
Expected Benefit Payments | |
2,014 | 1,765 |
2,015 | 1,798 |
2,016 | 1,890 |
2,017 | 2,253 |
2,018 | 2,448 |
2019 through 2023 | $ 19,074 |
Retirement Plans - Textuals (De
Retirement Plans - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Retirement Plans (Textuals) [Abstract] | ||||
Defined contribution plan company contributions to each participants total eligible compensation | 5.00% | |||
Maximum of each participants total eligible contributions | 3.00% | |||
Total expense related to the defined contribution plan for U.S. employees | $ 28,300 | $ 26,300 | $ 24,100 | |
Total expense related to the defined benefit pension and other retirement plans for certain non-U.S. employees | 26,900 | 33,300 | 29,800 | |
Accumulated benefit obligation for non-U.S. pension plans | $ 106,400 | 106,400 | 88,500 | |
Other Selling, General and Administrative Expense | $ 0 | $ 0 | $ 223,672 | $ 0 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 29, 2016 | [1] | Jul. 30, 2016 | [1] | Apr. 30, 2016 | [1] | Jan. 30, 2016 | [1] | Oct. 31, 2015 | [1] | Aug. 01, 2015 | [1] | May 02, 2015 | [1] | Jan. 31, 2015 | [1] | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Income Tax Expense Benefit [Line Items] | |||||||||||||||||||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||||||
Income tax provision reconciliation: | |||||||||||||||||||
Tax at statutory rate: | $ 334,922 | $ 283,540 | $ 255,271 | ||||||||||||||||
State income taxes, net of federal benefit | (10,821) | (4,425) | (6,361) | ||||||||||||||||
Valuation allowance | (13,658) | (4,875) | (2,846) | ||||||||||||||||
Research and development tax credits | (16,237) | (8,232) | (1,165) | ||||||||||||||||
Change in uncertain tax positions | 4,797 | 2,449 | 719 | ||||||||||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amortization, Amount | 35,641 | 38,973 | 8,126 | ||||||||||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0 | 0 | 15,656 | ||||||||||||||||
Other, net | (2,546) | (5,883) | 4,262 | ||||||||||||||||
Income Tax Expense (Benefit) | $ 27,277 | $ 25,970 | $ 24,337 | $ 17,673 | $ 8,372 | $ 43,000 | $ 39,851 | $ 22,013 | 95,257 | 113,236 | 100,025 | ||||||||
Irish [Member] | |||||||||||||||||||
Income tax provision reconciliation: | |||||||||||||||||||
Net foreign tax in excess of U.S. federal statutory tax rate | $ 264,157 | $ 198,061 | $ 179,329 | ||||||||||||||||
[1] | ) Interest expense in the fourth quarter of fiscal 2016 includes $13.7 million related to accelerated amortization of fees associated with the bridge financing commitments related to the proposed Linear acquisition. c) Provision for income taxes in the fourth quarter of fiscal 2015 includes a benefit of $13.0 million for the reversal of certain prior period tax liabilities and in the first quarter of fiscal 2015 includes a tax benefit of $7.0 million from the reinstatement of the U.S. federal research and development tax credit in December 2014 retroactive to January 1, 2014 and a tax benefit of $3.8 million as a result of an acquisition accounting adjustment. |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Pretax income: | |||||||||||
Domestic | $ 2,642 | $ 110,710 | $ 127,084 | ||||||||
Foreign | 954,279 | 699,404 | 602,261 | ||||||||
Income from continuing operations before income taxes | $ 323,434 | $ 256,400 | $ 194,910 | $ 182,177 | $ 104,677 | $ 259,478 | $ 245,189 | $ 200,770 | $ 956,921 | $ 810,114 | $ 729,345 |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Current: | |||
Federal tax (benefit) | $ 27,790 | $ 65,942 | $ 128,591 |
Foreign | 57,934 | 98,813 | 48,829 |
State | 1,409 | 695 | 316 |
Total current | 87,133 | 165,450 | 177,736 |
Deferred (prepaid): | |||
Federal | 325 | (27,933) | (74,263) |
State | 2,820 | 541 | (1,113) |
Foreign | 4,979 | (24,822) | (2,335) |
Total (prepaid) deferred | $ 8,124 | $ (52,214) | $ (77,711) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Oct. 31, 2015 |
Deferred tax assets: | ||
Inventory reserves | $ 22,527 | $ 24,009 |
Deferred income on shipments to distributors | 49,455 | 40,842 |
Reserves for compensation and benefits | 48,062 | 45,515 |
Tax credit carryovers | 68,669 | 64,838 |
Stock-based compensation | 56,345 | 68,530 |
Depreciation | 3,078 | 1,840 |
Deferred Tax Assets, Acquisitions | 19,312 | 6,327 |
Other | 47,482 | 36,711 |
Total gross deferred tax assets | 314,930 | 288,612 |
Valuation allowance | (67,094) | (52,675) |
Total deferred tax assets | 247,836 | 235,937 |
Deferred tax liabilities: | ||
Depreciation | (59,218) | (50,389) |
Undistributed earnings of foreign subsidiaries | (60,986) | (29,471) |
Deferred Tax Liabilities, Acquisitions | (199,035) | (217,961) |
Other | (2,523) | (2,971) |
Deferred Tax Liabilities, Gross | (321,762) | (300,792) |
Total gross deferred tax liabilities | $ (73,926) | $ (64,855) |
Income Taxes - Changes in Unrea
Income Taxes - Changes in Unrealized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Changes in the total amounts of unrealized tax benefits | |||
Unrealized tax benefits | $ 71,782 | $ 65,464 | $ 68,139 |
Additions for tax positions related to prior year | 9,799 | ||
Additions for tax positions | 2,539 | 524 | 214 |
Reductions for tax positions related to prior years | (4,475) | (2,745) | (1,321) |
Unrealized tax benefits | 68,535 | 71,782 | 65,464 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ (1,311) | $ (1,260) | $ (1,568) |
Income Taxes - Textuals (Detail
Income Taxes - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Income Taxes (Textuals) [Abstract] | |||
Unremitted earnings of international subsidiaries for which no provision has been provided | $ 5,100,000 | ||
Unrecognized deferred tax liability | 1,400,000 | ||
Valuation allowance | (67,094) | $ (52,675) | |
Liability for unrealized tax benefits | 75,600 | 75,300 | |
Liability for interest and penalties | 20,100 | 16,100 | |
Total liabilities for uncertain tax positions | 81,700 | 81,000 | |
Interest and penalties related to uncertain tax positions | 4,000 | $ 4,100 | $ 1,900 |
Change in Unrecognized Tax Benefit | 1,600 | ||
Potential liability related to IRS adjustment | 36,500 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 67,900 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 700 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) $ in Thousands | 12 Months Ended |
Oct. 29, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility, maximum borrowing capacity | $ 750,000 |
LineofCreditBorrowingCapacityafterAcquisition | $ 1,000,000 |
Line of Credit Facility, Covenant Terms | consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of not greater than 3.0 to 1.0 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility, amount outstanding | $ 0 |
Unsecured revolving credit facility, covenant compliance | compliant with these covenants |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 14, 2015 | Jun. 03, 2013 | Apr. 04, 2011 | Aug. 29, 2014 | Jun. 30, 2013 | Jun. 30, 2009 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | Sep. 23, 2016 | Jul. 26, 2016 | Aug. 04, 2012 |
Debt Instrument [Line Items] | ||||||||||||
Unamortized Bridge Fees | $ 13,700 | |||||||||||
Aggregate principal amount of debt | 1,750,000 | $ 875,000 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | $ 17,823 | 5,065 | ||||||||||
Gain on Termination of Rate Lock Agreement | $ 11,000 | |||||||||||
Maturity date of senior unsecured notes | Aug. 29, 2014 | |||||||||||
Proceeds from Issuance of Debt | $ 1,200,000 | |||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.79% | |||||||||||
debt extinguishment make whole premium | $ 3,000 | |||||||||||
Write Off of Remaining Debt Issuance and Discount Costs | 300 | |||||||||||
364-day senior unsecured bridge facility maximum aggregate principal amount | $ 7,500,000 | |||||||||||
90-day senior unsecured bridge facility maximum aggregate principal amount | 4,100,000 | |||||||||||
3-year unsecured term loan facility principal amount | $ 2,500,000 | |||||||||||
5-year unsecured term loan facility principal amount | $ 2,500,000 | |||||||||||
Bridge Financing Commitments | $ 5,000,000 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Gains (Losses) on Extinguishment of Debt | (3,290) | 0 | $ 0 | |||||||||
Swap, Receivable [Member] | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Number of Installments | Two | |||||||||||
Swap, Payable [Member] | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Number of Installments | Four | |||||||||||
2025 Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | 850,000 | 0 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | 8,034 | 0 | ||||||||||
2016 Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | 0 | 375,000 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | 0 | 406 | ||||||||||
Bridge Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 28,700 | |||||||||||
Other Commitment | 37,800 | |||||||||||
3.0% Senior unsecured notes due April 15, 2016 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing | |||||||||||
Loans [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 700 | |||||||||||
Other Commitment | 4,000 | |||||||||||
2.875% Senior unsecured notes due June 1, 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | 500,000 | 500,000 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | 4,047 | 4,659 | ||||||||||
2045 Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | 400,000 | 0 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | 5,742 | 0 | ||||||||||
Short-term Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | 0 | 375,000 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | 0 | 406 | ||||||||||
Long-term Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | 1,750,000 | 500,000 | ||||||||||
Debt Instrument Unamortized Discount And DebtI ssuance Costs | $ 17,823 | $ 4,659 | ||||||||||
Senior Notes [Member] | 3.0% Senior unsecured notes due April 15, 2016 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 375,000 | |||||||||||
Interest rate to be paid on long term notes | 3.00% | |||||||||||
Maturity date of senior unsecured notes | Apr. 15, 2016 | |||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing October 15, 2011 | |||||||||||
Net proceeds of notes offering | $ 370,500 | |||||||||||
Debt instrument, covenant compliance | compliant with these covenants | |||||||||||
Senior Notes [Member] | 3.9% Senior unsecured notes due December 15, 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, covenant compliance | compliant with these covenants | |||||||||||
Term Loan Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan facility, description of variable rate basis | LIBOR | |||||||||||
Term loan facility, interest rate over LIBOR rate | 1.25% | |||||||||||
Term loan facility, rate over LIBOR rate current rate | 1.72% | |||||||||||
2.875% Senior unsecured notes due June 1, 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of senior unsecured notes | Jun. 1, 2023 | |||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on June 1 and December 1 of each year, commencing December 1, 2013 | |||||||||||
Net proceeds of notes offering | $ 493,900 | |||||||||||
3.9% Senior unsecured notes due December 15, 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of senior unsecured notes | Dec. 15, 2025 | |||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing June 15, 2016 | |||||||||||
5.3% Senior unsecured notes due December 15, 2045 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of senior unsecured notes | Dec. 15, 2045 | |||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing June 15, 2016 | |||||||||||
Fair Value, Measurements, Nonrecurring [Member] | 2.875% Senior unsecured notes due June 1, 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 500,000 | |||||||||||
Interest rate to be paid on long term notes | 2.875% | |||||||||||
Fair Value, Measurements, Nonrecurring [Member] | 10 year US Treasury rate of 1.7845% [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate to be paid on long term notes | 0.00% | |||||||||||
Fair Value, Measurements, Nonrecurring [Member] | 3.9% Senior unsecured notes due December 15, 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 850,000 | |||||||||||
Interest rate to be paid on long term notes | 3.90% | |||||||||||
Fair Value, Measurements, Nonrecurring [Member] | 5.3% Senior unsecured notes due December 15, 2045 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 400,000 | |||||||||||
Interest rate to be paid on long term notes | 5.30% |
Subsequent Events (Details)
Subsequent Events (Details) - Dividend Declared [Member] - Common Stock - $ / shares | 1 Months Ended | |
Dec. 13, 2016 | Nov. 21, 2016 | |
Subsequent Event [Line Items] | ||
Common stock cash dividends per share, date declared | Nov. 21, 2016 | |
Common stock cash dividends per share, declared | $ 0.42 | |
Common stock cash dividends per share, paid date | Dec. 13, 2016 | |
Common stock cash dividends per share, date of record | Dec. 2, 2016 |
Supplementary Financial Infor94
Supplementary Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May 02, 2015 | Jan. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | ||||||||||||
Supplementary Financial Information | ||||||||||||||||||||||
Revenue | $ 1,003,623 | $ 869,591 | $ 778,766 | $ 769,429 | $ 978,722 | $ 863,365 | $ 821,019 | $ 771,986 | $ 3,421,409 | $ 3,435,092 | $ 2,864,773 | |||||||||||
Cost of sales | 336,936 | 297,301 | 267,863 | 292,136 | 336,926 | 294,328 | 276,197 | 268,379 | 1,194,236 | [1] | 1,175,830 | [1] | 1,034,585 | [1] | ||||||||
Gross margin | $ 666,687 | $ 572,290 | $ 510,903 | $ 477,293 | $ 641,796 | $ 569,037 | $ 544,822 | $ 503,607 | 2,227,173 | 2,259,262 | 1,830,188 | |||||||||||
% of Revenue | 66.40% | 65.80% | 65.60% | 62.00% | 65.60% | 65.90% | 66.40% | 65.20% | ||||||||||||||
Research and development | $ 172,926 | $ 163,227 | $ 160,235 | $ 157,428 | $ 170,736 | $ 160,784 | $ 154,233 | $ 151,706 | 653,816 | [1] | 637,459 | [1] | 559,686 | [1] | ||||||||
Selling, marketing, general and administrative | 118,881 | 122,909 | 112,186 | 107,462 | 121,400 | 120,030 | 117,371 | 120,171 | 461,438 | [1] | 478,972 | [1] | 454,676 | [1] | ||||||||
Special charges | 0 | 0 | 13,684 | 0 | 0 | 0 | 0 | 0 | 13,684 | 0 | 37,322 | |||||||||||
Other Selling, General and Administrative Expense | 0 | 0 | 223,672 | 0 | ||||||||||||||||||
Amortization of intangible Assets Operating Expenses | 17,899 | 17,447 | 17,419 | 17,358 | 17,358 | 22,954 | 24,210 | 23,796 | 70,123 | 88,318 | 26,020 | |||||||||||
Total operating expenses | 309,706 | 303,583 | 303,524 | 282,248 | 533,166 | 303,768 | 295,814 | 295,673 | 1,199,061 | 1,428,421 | 1,077,704 | |||||||||||
Operating income from continuing operations | $ 356,981 | $ 268,707 | $ 207,379 | $ 195,045 | $ 108,630 | $ 265,269 | $ 249,008 | $ 207,934 | 1,028,112 | 830,841 | 752,484 | |||||||||||
% of Revenue | 36.00% | 31.00% | 27.00% | 25.00% | 11.00% | 31.00% | 30.00% | 27.00% | ||||||||||||||
Nonoperating (income) expenses: | ||||||||||||||||||||||
Interest expense | $ 38,764 | $ 18,476 | $ 18,455 | $ 13,062 | $ 6,739 | $ 6,755 | $ 6,880 | $ 6,656 | 88,757 | 27,030 | 34,784 | |||||||||||
Interest income | (7,114) | (5,665) | (5,243) | (3,199) | (2,343) | (2,229) | (2,009) | (2,044) | (21,221) | (8,625) | (12,173) | |||||||||||
Other, net | 1,897 | [2] | (504) | [2] | (743) | [2] | 3,005 | [2] | (443) | [2] | 1,265 | [2] | (1,052) | [2] | 2,552 | [2] | 3,655 | 2,322 | 528 | |||
Total nonoperating (income) expense | 33,547 | 12,307 | 12,469 | 12,868 | 3,953 | 5,791 | 3,819 | 7,164 | 71,191 | 20,727 | 23,139 | |||||||||||
Income from continuing operations before income taxes | $ 323,434 | $ 256,400 | $ 194,910 | $ 182,177 | $ 104,677 | $ 259,478 | $ 245,189 | $ 200,770 | 956,921 | 810,114 | 729,345 | |||||||||||
% of Revenue | 32.00% | 29.00% | 25.00% | 24.00% | 11.00% | 30.00% | 30.00% | 26.00% | ||||||||||||||
Provision for income taxes | $ 27,277 | [3] | $ 25,970 | [3] | $ 24,337 | [3] | $ 17,673 | [3] | $ 8,372 | [3] | $ 43,000 | [3] | $ 39,851 | [3] | $ 22,013 | [3] | 95,257 | 113,236 | 100,025 | |||
Income from continuing operations, net of tax | $ 861,664 | $ 696,878 | $ 629,320 | |||||||||||||||||||
Net income | $ 296,157 | $ 230,430 | $ 170,573 | $ 164,504 | $ 96,305 | $ 216,478 | $ 205,338 | $ 178,757 | ||||||||||||||
% of Revenue | 30.00% | 26.00% | 22.00% | 21.00% | 10.00% | 25.00% | 25.00% | 23.00% | ||||||||||||||
Earnings per share - Basic (in dollars per share) | ||||||||||||||||||||||
Income from continuing operations | $ 2.79 | $ 2.23 | $ 2.01 | |||||||||||||||||||
Net income | $ 0.96 | $ 0.75 | $ 0.55 | $ 0.53 | $ 0.31 | $ 0.69 | $ 0.66 | $ 0.57 | ||||||||||||||
Earnings per share - Diluted (in dollars per share) | ||||||||||||||||||||||
Net income | $ 0.95 | $ 0.74 | $ 0.55 | $ 0.52 | $ 0.30 | $ 0.68 | $ 0.65 | $ 0.57 | ||||||||||||||
Shares used to compute earnings per share (in thousands): | ||||||||||||||||||||||
Shares used to compute earnings per share - Basic (in shares) | 307,854 | 307,135 | 308,790 | 311,166 | 312,829 | 313,877 | 312,660 | 311,274 | 308,736 | 312,660 | 313,195 | |||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 311,633 | 310,558 | 312,250 | 314,793 | 316,571 | 318,187 | 317,047 | 315,684 | 312,308 | 316,872 | 318,027 | |||||||||||
Dividends declared per share | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.37 | $ 1.66 | $ 1.57 | $ 1.45 | |||||||||||
Unrecorded Potential Tax Liability Related To IRS Examination Open Tax Matter | $ 36,500 | |||||||||||||||||||||
Tax Benefit from Reversal of Certain Prior Period Tax Liabilities | $ 13,000 | |||||||||||||||||||||
Tax Benefit from Reinstatement of the U.S. Federal R&D Tax Credit | $ 7,000 | |||||||||||||||||||||
Tax Benefit Resulting from Purchase Accounting Adjustment | $ 3,800 | |||||||||||||||||||||
[1] | Includes stock-based compensation expense as follows: | |||||||||||||||||||||
[2] | The Company converted the benefits provided to participants in the Company’s Irish defined benefits pension plan to benefits provided under the Company’s Irish defined contribution plan. As a result, the Company recorded expenses of $223.7 million, including settlement charges, legal, accounting and other professional fees to settle the pension obligation. | |||||||||||||||||||||
[3] | ) Interest expense in the fourth quarter of fiscal 2016 includes $13.7 million related to accelerated amortization of fees associated with the bridge financing commitments related to the proposed Linear acquisition. c) Provision for income taxes in the fourth quarter of fiscal 2015 includes a benefit of $13.0 million for the reversal of certain prior period tax liabilities and in the first quarter of fiscal 2015 includes a tax benefit of $7.0 million from the reinstatement of the U.S. federal research and development tax credit in December 2014 retroactive to January 1, 2014 and a tax benefit of $3.8 million as a result of an acquisition accounting adjustment. |
Valuation and Qualifying Acco95
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Accounts Receivable Reserves and Allowances [Member] | ||||
Accounts Receivable Reserves and Allowances: | ||||
Balance at Beginning of Period | $ 2,081 | $ 2,919 | $ 2,593 | |
Additions Charged to Income Statement | 3,936 | 2,686 | 4,563 | |
Other | $ 0 | 0 | 0 | |
Deductions | 900 | 3,524 | 4,237 | |
Balance at End of Period | 2,081 | 5,117 | 2,081 | 2,919 |
Valuation Allowance, Operating Loss Carryforwards [Member] | ||||
Accounts Receivable Reserves and Allowances: | ||||
Balance at Beginning of Period | 52,675 | 52,064 | 43,502 | |
Additions Charged to Income Statement | 13,658 | 4,876 | 4,297 | |
Other | 0 | 761 | 4,265 | |
Deductions | 0 | 4,265 | 0 | |
Balance at End of Period | $ 52,675 | $ 67,094 | $ 52,675 | $ 52,064 |