Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Oct. 28, 2017 | Apr. 30, 2017 | |
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. 28, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --10-28 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 21,972 | |
Entity Common Stock, Shares Outstanding | 368,635,788 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | ||
Revenue | ||||
Revenue | $ 5,107,503 | $ 3,421,409 | $ 3,435,092 | |
Costs and Expenses | ||||
Cost of sales | [1] | 2,045,907 | 1,194,236 | 1,175,830 |
Gross margin | 3,061,596 | 2,227,173 | 2,259,262 | |
Operating expenses: | ||||
Research and development | [1] | 968,602 | 653,816 | 637,459 |
Selling, marketing, general and administrative | [1] | 691,046 | 461,438 | 478,972 |
Amortization of intangibles | 297,351 | 70,123 | 88,318 | |
Special charges | 49,463 | 13,684 | 0 | |
Other operating expense | 0 | 0 | 223,672 | |
Total operating expenses | 2,006,462 | 1,199,061 | 1,428,421 | |
Operating income | 1,055,134 | 1,028,112 | 830,841 | |
Nonoperating (income) expenses: | ||||
Interest expense | 250,840 | 88,757 | 27,030 | |
Interest income | (30,333) | (21,221) | (8,625) | |
Other, net | 6,142 | 3,655 | 2,322 | |
Total nonoperating (income) expense | 226,649 | 71,191 | 20,727 | |
Earnings | ||||
Income before income taxes | 828,485 | 956,921 | 810,114 | |
Provision for income taxes | 101,226 | 95,257 | 113,236 | |
Net Income | $ 727,259 | $ 861,664 | $ 696,878 | |
Shares used to compute earnings per common share (in shares) | ||||
Shares used to compute earnings per share - Basic (in shares) | 346,371 | 308,736 | 312,660 | |
Shares used to compute earnings per share - Diluted (in shares) | 350,484 | 312,308 | 316,872 | |
Earnings per share - Basic (in dollars per share) | ||||
Basic earnings per common share (in dollars per share) | $ 2.09 | $ 2.79 | $ 2.23 | |
Earnings per share - Diluted (in dollars per share) | ||||
Diluted earnings per common share (in dollars per share) | 2.07 | 2.76 | 2.20 | |
Dividends declared and paid per share (in dollars per share) | $ 1.77 | $ 1.66 | $ 1.57 | |
Cost of sales [Member] | ||||
Includes stock-based compensation expense as follows: | ||||
Stock-based compensation expense | $ 12,569 | $ 7,808 | $ 8,983 | |
Research and development [Member] | ||||
Includes stock-based compensation expense as follows: | ||||
Stock-based compensation expense | 51,258 | 27,039 | 26,617 | |
Selling, marketing, general and administrative [Member] | ||||
Includes stock-based compensation expense as follows: | ||||
Stock-based compensation expense | $ 40,361 | $ 28,574 | $ 33,319 | |
[1] | Includes stock-based compensation expense as follows: |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 727,259 | $ 861,664 | $ 696,878 |
Foreign currency translation adjustment (net of taxes of $1,556 in 2017, $1,175 in 2016 and $1,479 in 2015) | 1,572 | (6,006) | (12,925) |
Change in unrecognized gains/losses on marketable securities: | |||
Change in fair value of available-for-sale securities (net of taxes of $35 in 2017, $56 in 2016 and $55 in 2015) | (517) | 847 | (540) |
Total change in unrealized gains/losses on marketable securities, net of tax | (517) | 847 | (540) |
Change in unrecognized gains/losses on derivative instruments designated as cash flow hedges: | |||
Changes in fair value of derivatives (net of taxes of $920 in 2017, $903 in 2016 and $10,889 in 2015) | 3,806 | (4,629) | (28,798) |
Adjustment for realized gain/loss reclassified into earnings (net of taxes of $1,326 in 2017, $1,050 in 2016 and $1,064 in 2015) | 4,199 | 3,437 | 10,447 |
Total change in derivative instruments designated as cash flow hedges, net of tax | 8,005 | (1,192) | (18,351) |
Changes in accumulated other comprehensive loss — pension plans: | |||
Change in transition asset (net of taxes of $0 in 2017, $3 in 2016 and $0 in 2015) | 14 | 17 | 19 |
Change in actuarial loss/gain (net of taxes of $355 in 2017, $3,297 in 2016 and $23,500 in 2015) | 3,513 | (16,730) | 153,953 |
Change in prior service cost/income (net of taxes of $61 in 2017, $47 in 2016 and $640 in 2015) | (132) | 101 | (4,481) |
Total change in accumulated other comprehensive (loss) income — pension plans, net of tax | 3,395 | (16,612) | 149,491 |
Other comprehensive income (loss) | 12,455 | (22,963) | 117,675 |
Comprehensive income | $ 739,714 | $ 838,701 | $ 814,553 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ 1,556 | $ 1,175 | $ 1,479 |
Tax effect on unrealized holding losses on available for sale securities classified as short-term investments | 35 | 56 | (55) |
Tax effect on changes in fair value of derivatives | 920 | 903 | 10,889 |
Tax effect on realized (gain) loss reclassification | 1,326 | 1,050 | 1,064 |
Tax effect on transition asset (obligation) | 0 | 3 | 0 |
Tax effect on net actuarial gain (loss) | (355) | (3,297) | 23,500 |
Tax effect on net prior service income | $ (61) | $ 47 | $ (640) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 | |
Current Assets | |||
Cash and cash equivalents | $ 1,047,838 | $ 921,132 | |
Short-term investments | 0 | 3,134,661 | |
Accounts receivable less allowances of $7,213 ($5,117 in 2016) | 688,953 | 477,609 | |
Inventories | [1] | 550,816 | 376,555 |
Prepaid income tax | 3,522 | 6,405 | |
Prepaid expenses and other current assets | 60,209 | 58,501 | |
Total current assets | 2,351,338 | 4,974,863 | |
Property, Plant and Equipment, at Cost | |||
Land and buildings | 794,456 | 564,329 | |
Machinery and equipment | 2,368,215 | 1,994,115 | |
Office equipment | 66,493 | 58,785 | |
Leasehold improvements | 75,263 | 59,649 | |
Property, plant and equipment, at cost | 3,304,427 | 2,676,878 | |
Less accumulated depreciation and amortization | 2,197,123 | 2,040,762 | |
Net property, plant and equipment | 1,107,304 | 636,116 | |
Other Assets | |||
Deferred compensation plan investments | 32,572 | 26,152 | |
Other investments | 24,838 | 21,937 | |
Goodwill | 12,217,455 | 1,679,116 | |
Intangible assets, net | 5,319,425 | 549,368 | |
Deferred tax assets | 32,322 | 36,005 | |
Other assets | 56,040 | 46,721 | |
Total other assets | 17,682,652 | 2,359,299 | |
Total assets | 21,141,294 | 7,970,278 | |
Current Liabilities | |||
Accounts payable | 236,629 | 171,439 | |
Deferred income on shipments to distributors, net | 473,972 | 351,538 | |
Income taxes payable | 86,905 | 4,100 | |
Debt, current | 300,000 | 0 | |
Accrued liabilities | 498,826 | 255,857 | |
Total current liabilities | 1,596,332 | 782,934 | |
Non-current Liabilities | |||
Long-term debt | 7,551,084 | 1,732,177 | |
Deferred income taxes | 1,674,683 | 109,931 | |
Deferred compensation plan liability | 32,572 | 26,152 | |
Other non-current liabilities | 125,083 | 153,466 | |
Total non-current liabilities | 9,383,422 | 2,021,726 | |
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, 368,635,788 shares outstanding (308,170,560 on October 29, 2016) | 61,441 | 51,363 | |
Capital in excess of par value | 5,250,519 | 402,270 | |
Retained earnings | 4,910,939 | 4,785,799 | |
Accumulated other comprehensive loss | (61,359) | (73,814) | |
Total shareholders’ equity | 10,161,540 | 5,165,618 | |
Liabilities and Shareholders' Equity | $ 21,141,294 | $ 7,970,278 | |
[1] | Includes $5,373 and $2,486 related to stock-based compensation at October 28, 2017 and October 29, 2016, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Current Assets | ||
Allowances of accounts receivable | $ 7,213 | $ 5,117 |
Amount related to stock-based compensation | $ 5,373 | $ 2,486 |
Shareholders’ Equity | ||
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 471,934 | 471,934 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.166 | $ 0.166 |
Common stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares outstanding (in shares) | 368,635,788 | 308,170,560 |
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 |
Beginning Balance (in shares) at Nov. 01, 2014 | 311,205 | ||||
Beginning Balance at Nov. 01, 2014 | $ 51,869 | $ 643,058 | $ 4,231,496 | $ (168,526) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 696,878 | ||||
Dividends declared and paid | (491,059) | ||||
Issuance of stock under stock plans and other (in shares) | 4,927 | ||||
Issuance of stock under stock plans and other | $ 822 | 121,809 | |||
Tax benefit — equity based awards | 26,971 | ||||
Stock-based compensation expense | 68,919 | ||||
Other comprehensive loss | 117,675 | ||||
Common stock repurchased (in shares) | (4,071) | ||||
Common stock repurchased | $ (680) | (226,273) | |||
Ending Balance (in shares) at Oct. 31, 2015 | 312,061 | ||||
Ending Balance at Oct. 31, 2015 | $ 52,011 | 634,484 | 4,437,315 | (50,851) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 861,664 | ||||
Dividends declared and paid | (513,180) | ||||
Issuance of stock under stock plans and other (in shares) | 2,721 | ||||
Issuance of stock under stock plans and other | $ 454 | 61,042 | |||
Tax benefit — equity based awards | 12,282 | ||||
Stock-based compensation expense | 63,421 | ||||
Other comprehensive loss | (22,963) | ||||
Common stock repurchased (in shares) | (6,611) | ||||
Common stock repurchased | $ (1,102) | (368,959) | |||
Ending Balance (in shares) at Oct. 29, 2016 | 308,171 | ||||
Ending Balance at Oct. 29, 2016 | $ 5,165,618 | $ 51,363 | 402,270 | 4,785,799 | (73,814) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 727,259 | ||||
Dividends declared and paid | (602,119) | ||||
Issuance of stock under stock plans and other (in shares) | 5,153 | ||||
Issuance of stock under stock plans and other | $ 859 | 132,439 | |||
Issuance of stock in connection with Acquisition (in shares) | 55,884 | ||||
Issuance of stock in connection with Acquisition | $ 9,314 | 4,584,341 | |||
Tax benefit — equity based awards | 40,189 | ||||
Stock-based compensation expense | 104,188 | ||||
Replacement share-based awards issued in connection with acquisition | 33,530 | ||||
Other comprehensive loss | 12,455 | ||||
Common stock repurchased (in shares) | (572) | ||||
Common stock repurchased | $ (95) | (46,438) | |||
Ending Balance (in shares) at Oct. 28, 2017 | 368,636 | ||||
Ending Balance at Oct. 28, 2017 | $ 10,161,540 | $ 61,441 | $ 5,250,519 | $ 4,910,939 | $ (61,359) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Cash flows from operating activities: | |||
Net Income | $ 727,259 | $ 861,664 | $ 696,878 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation | 194,666 | 134,540 | 130,147 |
Amortization of intangibles | 389,393 | 75,250 | 92,093 |
Cost of goods sold for inventory acquired | 358,718 | 0 | 0 |
Stock-based compensation expense | 104,188 | 63,421 | 68,919 |
Loss on extinguishment of debt | 0 | 3,290 | 0 |
Other non-cash activity | (10,865) | 24,570 | 6,974 |
Excess tax benefit — equity based awards | (41,773) | (10,453) | (25,045) |
Deferred income taxes | (825,869) | 8,124 | (52,214) |
Change in operating assets and liabilities: | |||
Accounts receivable | (65,669) | (9,392) | (71,198) |
Inventories | (47,354) | 38,221 | (35,557) |
Prepaid expenses and other current assets | (1,875) | (5,618) | 2,861 |
Deferred compensation plan investments | (7,358) | (2,399) | (2,643) |
Prepaid income tax | 2,679 | (4,315) | 4,546 |
Accounts payable, deferred income and accrued liabilities | 192,249 | 85,502 | 56,614 |
Deferred compensation plan liability | 7,358 | 2,399 | 2,643 |
Income taxes payable | 119,618 | 9,950 | 25,060 |
Other liabilities | 17,227 | 6,141 | 7,720 |
Total adjustments | 385,333 | 419,231 | 210,920 |
Net cash provided by operating activities | 1,112,592 | 1,280,895 | 907,798 |
Cash flows from investing: | |||
Purchases of short-term available-for-sale investments | (705,485) | (7,697,260) | (6,083,999) |
Maturities of short-term available-for-sale investments | 3,362,792 | 6,375,361 | 4,984,980 |
Sales of short-term available-for-sale investments | 577,187 | 332,716 | 1,251,194 |
Additions to property, plant and equipment, net | (204,098) | (127,397) | (153,960) |
Payments for acquisitions, net of cash acquired | (9,632,568) | (83,170) | (7,065) |
Change in other assets | (15,842) | (18,520) | (8,275) |
Net cash used for investing activities | (6,618,014) | (1,218,270) | (17,125) |
Cash flows from financing activities: | |||
Proceeds from debt | 11,156,164 | 1,235,331 | 0 |
Debt repayments | (5,050,000) | 0 | 0 |
Early termination of debt | 0 | (378,156) | 0 |
Proceeds from (payments of) derivative instruments | 3,904 | (33,430) | 0 |
Payments of deferred financing fees | (5,625) | (26,583) | 0 |
Dividend payments to shareholders | (602,119) | (513,180) | (491,059) |
Repurchase of common stock | (46,533) | (370,061) | (226,953) |
Proceeds from employee stock plans | 133,302 | 61,496 | 122,631 |
Contingent consideration payment | (1,764) | (1,409) | (1,767) |
Change in other financing activities | (524) | (7,378) | 500 |
Excess tax benefit — equity based awards | 41,773 | 10,453 | 25,045 |
Net cash provided by (used for) financing activities | 5,628,578 | (22,917) | (571,603) |
Effect of exchange rate changes on cash | 3,550 | (2,929) | (3,950) |
Net increase in cash and cash equivalents | 126,706 | 36,779 | 315,120 |
Cash and cash equivalents at beginning of year | 921,132 | 884,353 | 569,233 |
Cash and cash equivalents at end of year | $ 1,047,838 | $ 921,132 | $ 884,353 |
Description of Business
Description of Business | 12 Months Ended |
Oct. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Analog Devices, Inc. (Analog Devices or the Company) is a leading global high-performance analog technology company. The Company's products and technologies intelligently bridge the physical and digital domains through sensing, measuring, powering, connecting and interpreting. The Company designs, manufactures and markets 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 and 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. 28, 2017 | |
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 28, 2017 ( fiscal 2017 ). Such reclassified amounts are immaterial. 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 2017 , the fiscal year ended October 29, 2016 (fiscal 2016 ) and the fiscal year ended October 31, 2015 (fiscal 2015 ) were 52 -week periods. On March 10, 2017 (Acquisition Date), the Company completed the acquisition of Linear Technology Corporation (Linear), a designer, manufacturer and marketer of high performance analog integrated circuits. The total consideration paid to acquire Linear was approximately $15.8 billion , consisting of $11.1 billion in cash financed through existing cash on hand, net proceeds from bridge and term loan facilities and proceeds received from the issuance of senior unsecured notes, $4.6 billion from the issuance of the Company's common stock and $0.1 billion of consideration related to the replacement of outstanding equity awards held by Linear employees. The acquisition of Linear is referred to as the Acquisition. The consolidated financial statements included in this Annual Report on Form 10-K include the financial results of Linear prospectively from the Acquisition Date. See Note 6, Acquisitions , of these notes to Consolidated Financial Statements for further discussion related to the Acquisition. 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 government and 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 28, 2017 or October 29, 2016 . 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 28, 2017 and October 29, 2016 were as follows: 2017 2016 Unrealized gains on securities classified as short-term investments $ 2 $ 846 Unrealized losses on securities classified as short-term investments (2 ) (294 ) Net unrealized gain on securities classified as short-term investments $ — $ 552 As of October 28, 2017 , the Company held 18 investment securities, 8 of which were in an unrealized loss position with immaterial gross unrealized losses and an aggregate fair value of $143.9 million . 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 . 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 28, 2017 and October 29, 2016 . The components of the Company’s cash and cash equivalents and short-term investments as of October 28, 2017 and October 29, 2016 were as follows: 2017 2016 Cash and cash equivalents: Cash $ 226,160 $ 67,877 Available-for-sale 751,678 693,255 Held-to-maturity 70,000 160,000 Total cash and cash equivalents $ 1,047,838 $ 921,132 Short-term investments: Available-for-sale $ — $ 3,110,011 Held-to-maturity (less than one year to maturity) — 24,650 Total short-term investments $ — $ 3,134,661 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 2017 2016 2015 Cash paid during the fiscal year for: Income taxes $ 868,492 $ 77,918 $ 142,931 Interest $ 183,117 $ 41,701 $ 25,625 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 28, 2017 and October 29, 2016 were as follows: 2017 2016 Raw materials $ 35,436 $ 20,263 Work in process 376,476 232,196 Finished goods 138,904 124,096 Total inventories $ 550,816 $ 376,555 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 30 years Machinery & equipment 3-10 years Office equipment 3-10 years Depreciation expense for property, plant and equipment was $194.7 million , $134.5 million and $130.1 million in fiscal 2017 , 2016 and 2015 , 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. The Company has not recorded any material impairment charges related to our property, plant and equipment in fiscal 2017 , fiscal 2016 or fiscal 2015 . 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 which we have determined is consistent with our operating segments, 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 goodwill impairment test requires an entity to compare the fair value of a reporting unit with its carrying amount. 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 estimate their respective fair values. In order to assess the reasonableness of the calculated reporting unit fair values, the Company reconciles the aggregate estimated fair values of its reporting units determined 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, an impairment loss is recognized for the amount of the carrying value that exceeds the amount of the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. 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 November 3, 2018 (fiscal 2018 ) unless indicators arise that would require the Company to reevaluate at an earlier date. The following table presents the changes in goodwill during fiscal 2017 and fiscal 2016 : 2017 2016 Balance at beginning of year $ 1,679,116 $ 1,636,526 Acquisition of Linear (Note 6) 10,532,272 — Goodwill adjustment related to other acquisitions (1) 4,198 44,046 Foreign currency translation adjustment 1,869 (1,456 ) Balance at end of year $ 12,217,455 $ 1,679,116 (1) 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 estimated 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 estimated 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. In-process research and development (IPR&D) assets are considered indefinite-lived intangible assets until completion or abandonment of the associated research and development (R&D) efforts. Upon completion of the projects, the IPR&D assets are reclassified to technology-based intangible assets and amortized over their estimated useful lives. As of October 28, 2017 and October 29, 2016 , the Company’s intangible assets consisted of the following: October 28, 2017 October 29, 2016 Gross Carrying Accumulated Gross Carrying Amount Accumulated Amortization Customer relationships $ 4,683,461 $ 449,369 $ 649,159 $ 158,979 Technology-based 1,097,025 101,920 38,731 9,958 Trade-name 72,800 6,906 600 60 Backlog 200 200 200 — IPR&D 24,334 — 29,675 — Total (1) (2) $ 5,877,820 $ 558,395 $ 718,365 $ 168,997 ________ (1) Foreign intangible asset carrying amounts are affected by foreign currency translation. (2) Increases in intangible assets primarily relate to the Acquisition and other acquisitions. See Note 6, Acquisitions, of these Notes to Consolidated Financial Statements for further information. Intangible assets, along with the related accumulated amortization, are removed from the table above at the end of the fiscal year they become fully amortized. Amortization expense related to finite-lived intangible assets was $389.4 million , $75.3 million and $92.1 million in fiscal 2017 , 2016 and 2015 , respectively. The remaining amortization expense will be recognized over a weighted average life of approximately 5.1 years . The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2018 $ 565,885 2019 $ 562,696 2020 $ 562,457 2021 $ 562,037 2022 $ 559,107 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. The amounts recognized were not material in fiscal 2017 , 2016 or 2015 . 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 2017 , 2016 or 2015 . 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 British Pound, Philippine Peso and the Japanese Yen. 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 28, 2017 and October 29, 2016 was $194.3 million and $179.5 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 28, 2017 and October 29, 2016 were as follows: Fair Value At Balance Sheet Location October 28, 2017 October 29, 2016 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 257 $ — Forward foreign currency exchange contracts Accrued liabilities $ — $ 5,260 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 28, 2017 and October 29, 2016 , the total notional amount of these undesignated hedges was $100.4 million and $46.2 million , respectively. The fair value of these hedging instruments in the Company’s consolidated balance sheets was a liability of $1.8 million as of October 28, 2017 and was immaterial as of October 29, 2016 . The Company estimates that $0.5 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 28, 2017 and October 29, 2016 . 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 28, 2017 and October 29, 2016 , 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 the Company's consolidated balance sheet as of October 28, 2017 and October 29, 2016 : October 28, 2017 October 29, 2016 Gross amount of recognized liabilities $ (5,039 ) $ (5,788 ) Gross amounts of recognized assets offset in the consolidated balance sheet 3,512 557 Net liabilities presented in the consolidated balance sheet $ (1,527 ) $ (5,231 ) 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. 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 28, 2017 and 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 28, 2017 and October 29, 2016 . 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 28, 2017 and October 29, 2016 , the Company held $296.2 million and $252.5 million , respectively, of cash and held-to-maturity investments that were excluded from the tables below. October 28, 2017 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: Government and institutional money market funds $ 512,882 $ — $ — $ 512,882 Corporate obligations (1) — 238,796 — 238,796 Other assets: Deferred compensation investments 33,510 — — 33,510 Interest rate derivatives — 2,966 — 2,966 Total assets measured at fair value $ 546,392 $ 241,762 $ — $ 788,154 Liabilities Contingent consideration — — 7,891 7,891 Forward foreign currency exchange contracts (2) — 1,527 — 1,527 Total liabilities measured at fair value $ — $ 1,527 $ 7,891 $ 9,418 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 28, 2017 was $238.9 million . (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 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 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 derivatives — The fair value of interest rate derivatives are estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. 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 2 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 October 31, 2015 to October 28, 2017 : Contingent Consideration 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 Contingent consideration liability recorded 2,000 Payment made (1) (2,000 ) Fair value adjustment (2) 336 Balance as of October 28, 2017 $ 7,891 (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 The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis. The carrying amounts of the term loans approximate fair value. The term loans are classified as Level 2 measurements according t |
Stock-Based Compensation and Sh
Stock-Based Compensation and Shareholders' Equity | 12 Months Ended |
Oct. 28, 2017 | |
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 or in annual installments of 20% on each of the first, second, third, fourth and fifth anniversaries of the date of grant. As of October 28, 2017 , a total of 14.7 million common shares were available for future grant under the 2006 Plan and 29.7 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. Linear Replacement Awards In connection with the Acquisition, the Company issued equity awards, consisting of restricted stock awards and restricted stock units (replacement awards), to certain Linear employees in replacement of Linear equity awards. The replacement awards consisted of restricted stock awards and restricted stock units for approximately 2.8 million shares of the Company's common stock with a weighted average grant date fair value of $82.20 . The terms and intrinsic value of these replacement awards are substantially the same as the converted Linear awards. The fair value of the replacement awards associated with services rendered through the Acquisition Date was recognized as a component of the total preliminary estimated acquisition consideration, and the remaining fair value of the replacement awards associated with post-Acquisition services will be 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 2017 , fiscal 2016 and fiscal 2015 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 a service condition and those with both a service and performance 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 in fiscal 2017, fiscal 2016 and fiscal 2015 is as follows: Stock Options 2017 2016 2015 Options granted (in thousands) 1,480 1,814 1,954 Weighted-average exercise price $82.99 $55.19 $57.20 Weighted-average grant-date fair value $17.12 $12.67 $10.38 Assumptions: Weighted-average expected volatility 26.4 % 34.0 % 25.9 % Weighted-average expected term (in years) 5.1 5.1 5.3 Weighted-average risk-free interest rate 2.1 % 1.4 % 1.6 % Weighted-average expected dividend yield 2.2 % 3.0 % 2.8 % 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 market 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 market 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 in fiscal 2017, fiscal 2016 and fiscal 2015 using the Monte Carlo simulation model is as follows: Market-based Restricted Stock Units 2017 2016 2015 Units granted (in thousands) 59 102 75 Grant-date fair value $94.25 $58.95 $55.67 Assumptions: Historical stock price volatility 26.0 % 25.1 % 20.0 % Risk-free interest rate 1.6 % 1.1 % 1.1 % Expected dividend yield 2.2 % 3.0 % 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. In connection with the Acquisition, the Company granted restricted stock awards to replace outstanding restricted stock awards of Linear employees. These restricted stock awards entitle recipients to voting and nonforfeitable dividend rights from the date of grant. 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 28, 2017 . 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 2017 , fiscal 2016 and fiscal 2015 , 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 28, 2017 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 29, 2016 11,704 $44.43 Options granted 1,480 $82.99 Options exercised (3,470 ) $38.60 Options forfeited (360 ) $55.56 Options expired (7 ) $34.09 Options outstanding at October 28, 2017 9,347 $52.27 6.2 $363,972 Options exercisable at October 28, 2017 4,907 $42.09 4.7 $240,991 Options vested or expected to vest at October 28, 2017 (1) 9,011 $51.69 6.2 $356,098 (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 2017 , fiscal 2016 and fiscal 2015 was $144.6 million , $46.6 million and $99.2 million , respectively, and the total amount of proceeds received by the Company from exercise of these options during fiscal 2017 , fiscal 2016 and fiscal 2015 was $133.3 million , $61.5 million and $122.6 million , respectively. A summary of the Company’s restricted stock unit award activity as of October 28, 2017 and changes during the fiscal year then ended is presented below: Restricted Stock Units/Awards Outstanding (in thousands) Weighted- Average Grant- Date Fair Value Per Share Restricted stock units/awards outstanding at October 29, 2016 2,690 $50.11 Units/Awards granted 4,809 $79.76 Restrictions lapsed (1,580 ) $60.02 Forfeited (239 ) $64.01 Restricted stock units/awards outstanding at October 28, 2017 5,680 $71.88 As of October 28, 2017 , there was $375.2 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 1.9 years. The total grant-date fair value of shares that vested during fiscal 2017 , fiscal 2016 and fiscal 2015 was approximately $114.8 million , $62.8 million and $65.6 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 28, 2017 , 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. In connection with the Acquisition, the Company temporarily suspended the common stock repurchase plan. 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/awards or the exercise of stock options. The withholding amount is based on the employee's 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. 28, 2017 | |
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 eight 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 proportionally 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. 2017 2016 2015 Revenue % of Revenue % of Revenue % of Industrial $ 2,361,549 46 % $ 1,497,070 44 % $ 1,495,887 44 % Automotive 782,961 15 % 541,774 16 % 526,493 15 % Consumer 1,047,606 21 % 687,697 20 % 727,585 21 % Communications 915,387 18 % 694,868 20 % 685,127 20 % Total Revenue $ 5,107,503 100 % $ 3,421,409 100 % $ 3,435,092 100 % Geographic Information Revenue by geographic region is based upon the primary end customer location for the Company's products. In fiscal 2017 , fiscal 2016 and fiscal 2015 , 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. 2017 2016 2015 Revenue United States $ 1,999,041 $ 1,299,629 $ 1,325,279 Rest of North and South America 103,077 95,957 97,189 Europe 1,211,435 924,849 939,230 Japan 506,114 291,649 319,569 China 842,532 575,690 511,365 Rest of Asia 445,304 233,635 242,460 Subtotal all foreign countries 3,108,462 2,121,780 2,109,813 Total revenue $ 5,107,503 $ 3,421,409 $ 3,435,092 Property, plant and equipment United States $ 504,968 $ 236,625 $ 253,417 Ireland 188,728 174,952 173,703 Philippines 228,629 194,587 195,662 Singapore 77,015 — — Malaysia 71,756 — — All other countries 36,208 29,952 21,328 Subtotal all foreign countries 602,336 399,491 390,693 Total property, plant and equipment $ 1,107,304 $ 636,116 $ 644,110 |
Special Charges
Special Charges | 12 Months Ended |
Oct. 28, 2017 | |
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 1, 2014 to October 28, 2017 of the employee separation and exit cost accruals established related to these actions. Statement of Income Reduction of Early Retirement Action Total Special Charges Workforce reductions 13,684 — 13,684 Total Fiscal 2016 Charges $ 13,684 $ — $ 13,684 Workforce reductions 8,126 41,337 49,463 Total Fiscal 2017 Charges $ 8,126 $ 41,337 $ 49,463 Accrued Restructuring Reduction of Operating Costs Action Early Retirement Action 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 $ — Fiscal 2017 special charges 8,126 41,337 Severance payments (15,764 ) (9,126 ) Effect of foreign currency on accrual 401 — Balance at October 28, 2017 $ 5,137 $ 32,211 Early Retirement Offer Action During fiscal 2017, the Company initiated an early retirement offer. This resulted in a special charge of approximately $ 41.3 million for severance, related benefits and other costs in accordance with this program for 225 manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees. As of October 28, 2017 , the Company still employed 26 of the 225 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 benefits. Reduction of Operating Costs Actions 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 28, 2017 , the Company still employed 23 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. During fiscal 2017, the Company recorded special charges of approximately $8.1 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 177 manufacturing, engineering and SMG&A employees. As of October 28, 2017 , the Company still employed 10 of the 177 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is terminated in order to receive the severance benefits. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 28, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Linear Technology Corporation On the Acquisition Date, the Company completed its acquisition of all of the voting interests of Linear, an independent manufacturer of high performance analog integrated circuits. Under the terms of the agreement pursuant to which the Company acquired Linear (Merger Agreement), Linear stockholders received, 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. The Company believes the combination creates the premier analog technology company with the industry’s most comprehensive suite of high-performance analog offerings. The results of operations of Linear from the Acquisition Date are included in the Company’s consolidated statements of income, consolidated balance sheet, consolidated statement of cash flows and shareholders’ equity for fiscal 2017. The amount of revenue attributable to Linear included in the Company's consolidated statements of income for fiscal 2017 was $913.2 million . The Acquisition Date fair value of the consideration transferred in the Acquisition consisted of the following: (in thousands) Cash consideration (a) $ 11,092,047 Issuance of common stock (b) 4,593,655 Fair value of replacement share-based and cash awards (c) 70,954 Total estimated purchase consideration $ 15,756,656 _______________ (a)The cash consideration was funded utilizing cash on hand, the net proceeds from bridge credit and term loan facilities and the proceeds received from the Company's issuance of the Notes (see Note 16, Debt , of these Notes to Consolidated Financial Statements). This reflects the cash portion of the purchase consideration paid to Linear stockholders of approximately $11.1 billion , as well as $16.3 million for the cash-settled portion of consideration paid to holders of restricted stock and restricted stock awards that automatically vested at the effective time of the Acquisition pursuant to pre-existing change-of-control agreements. (b) The fair value is based on the issuance of approximately 55.9 million shares of the Company's common stock with a per-share value of $82.20 (the closing price of the Company's common stock on The Nasdaq Global Select Market on the Acquisition Date). (c) In connection with the Acquisition, the Company issued equity and cash awards to certain Linear employees to replace Linear equity awards. This amount represents the portion of the fair value of the replacement equity and cash awards associated with services rendered though the Acquisition Date and have been included as a component of the total estimated purchase consideration. The preliminary fair values of assets acquired and liabilities assumed as of the Acquisition Date are set forth in the table below. The excess of the purchase consideration over the aggregate Acquisition Date value of identifiable net assets acquired was recorded as goodwill. None of the goodwill is expected to be deductible for tax purposes. These preliminary Acquisition Date values were generally determined through established and generally accepted valuation techniques and are subject to change during the measurement period as valuations are finalized. As a result, the Acquisition accounting is not complete and additional information that existed at the Acquisition Date may become known to the Company during the remainder of the measurement period. Subsequent to the initial acquisition accounting recognized during the second quarter of fiscal 2017, the Company recorded acquisition accounting adjustments of $52.1 million to goodwill comprised of $23.8 million to inventory, $0.7 million to fixed assets, $12.2 million to intangible assets, $0.3 million to accounts receivable, $2.8 million to assumed liabilities and $18.4 million to deferred tax liabilities. As of the filing date of this Annual Report on Form 10-K, the Company is still in the process of valuing Linear's assets, including inventory, fixed assets, intangible assets, and liabilities, including deferred revenue and related income tax accounting. (in thousands) Cash and cash equivalents $ 1,466,445 Marketable securities 100,246 Accounts receivable (a) 146,282 Inventories 461,698 Prepaid expenses and other assets 14,782 Property, plant and equipment 462,285 Intangible assets (Note 10) 5,152,600 Goodwill (Note 10) 10,532,272 Total assets $ 18,336,610 Assumed liabilities 188,454 Deferred tax liabilities 2,391,500 Total estimated purchase consideration $ 15,756,656 ____________ (a) The fair value of accounts receivable was $146.5 million , with the gross contractual amount being $148.2 million , of which the Company estimates that $1.7 million is uncollectible. The acquired intangible assets consisted of the following, which are being 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. Fair Value (in thousands) Weighted Average Useful Lives (in Years) Technology-based $ 1,046,100 8 Trade name 72,200 7 Customer relationships 4,034,300 12 Total amortizable intangible assets $ 5,152,600 11 The goodwill recognized is attributable to synergies which are expected to enhance and expand the Company’s overall product portfolio and opportunities in new and existing markets, future technologies that have yet to be determined and Linear'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 Acquisition. The Company recognized $69.5 million of transaction-related costs, including legal, accounting and other related fees that were expensed in fiscal 2017. These costs are included in the consolidated statements of income in operating expenses within SMG&A expenses. The Company may incur additional transaction-related costs within the next twelve months related to the Acquisition that will be expensed as incurred. The following unaudited pro forma consolidated financial information combines the unaudited results of the Company for the year ended October 28, 2017 and the unaudited results of Linear for the year ended October 28, 2017 and assumes that the Acquisition, which closed on March 10, 2017, was completed on November 1, 2015 (the first day of fiscal 2016). 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, compensation expense for ongoing share-based compensation arrangements replaced and interest expense for the debt incurred to fund the 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 Acquisition actually taken place on November 1, 2015. In addition, these results are not intended to be a projection of future results and do not reflect events that may occur after the Acquisition, including but not limited to revenue enhancements, cost savings or operating synergies that the combined Company may achieve as a result of the Acquisition. (thousands, except per share data) Pro Forma Twelve Months Ended October 28, 2017 October 29, 2016 Revenue $ 5,702,841 $ 4,842,658 Net income $ 1,039,522 $ 359,037 Basic net income per common share $ 2.82 $ 0.98 Diluted net income per common share $ 2.78 $ 0.97 Other Acquisitions The Company has not provided pro forma results of operations for any other acquisitions completed in fiscal 2017 , fiscal 2016 or fiscal 2015 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. 28, 2017 | |
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 28, 2017 and October 29, 2016 were as follows: 2017 2016 Money market funds $ 2,413 $ 3,129 Mutual funds 31,097 23,787 Total Deferred Compensation Plan investments $ 33,510 $ 26,916 The fair values of these investments are based on published market quotes on October 28, 2017 and October 29, 2016 , respectively. Adjustments to the fair value of, and income pertaining to, Deferred Compensation Plan investments are recorded in operating expenses within selling, marketing, general and administrative. Gross realized and unrealized gains and losses from trading securities were not material in fiscal 2017 , fiscal 2016 or fiscal 2015 . 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 were to become insolvent, the investments would be available to all unsecured general creditors. |
Other Investments
Other Investments | 12 Months Ended |
Oct. 28, 2017 | |
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 2017 and fiscal 2016, the Company recognized other-than-temporary impairments of $5.0 million and $6.0 million , respectively, recorded in the condensed consolidated statement of income in other, net, within non-operating (income) expense, related to cost method investments that the Company determined were 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 2017 , fiscal 2016 and fiscal 2015 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Oct. 28, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at October 28, 2017 and October 29, 2016 consisted of the following: 2017 2016 Accrued compensation and benefits $ 271,321 $ 112,003 Accrued interest (Note 16) 59,400 26,411 Special charges (Note 5) 37,348 12,374 Other 130,757 105,069 Total accrued liabilities $ 498,826 $ 255,857 |
Deferred Compensation Plan Liab
Deferred Compensation Plan Liability | 12 Months Ended |
Oct. 28, 2017 | |
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. 28, 2017 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases certain facilities, equipment and software under various operating leases that expire at various dates through 2057 . 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 $58.8 million in fiscal 2017 , $58.5 million in fiscal 2016 and $51.8 million in fiscal 2015 . The following is a schedule of future minimum rental payments required under long-term operating leases at October 28, 2017 : Operating Fiscal Years Leases 2018 $ 41,795 2019 23,663 2020 17,479 2021 13,048 2022 9,350 Later Years 37,578 Total $ 142,913 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 28, 2017 | |
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. 28, 2017 | |
Retirement Benefits [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. For former Linear employees, the Company contributes to a defined contribution plan for qualified U.S. employees as part of the Company’s semi-annual profit sharing payouts. The total expense related to the defined contribution plans for U.S. employees was $35.8 million in fiscal 2017 , $28.3 million in fiscal 2016 and $26.3 million in fiscal 2015 . 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, contribution and other retirement plans for certain non-U.S. employees, excluding settlement charges related to the Company's Irish defined benefit plan in fiscal 2015, was $33.0 million in fiscal 2017 , $26.9 million in fiscal 2016 and $33.3 million in fiscal 2015 . 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 Company has elected to measure defined benefit plan assets and obligations as of October 31, which is the month-end that is closest to its fiscal year-ends, which were October 28, 2017 for fiscal 2017 and October 29, 2016 for fiscal 2016. Components of Net Periodic Benefit Cost Net annual periodic pension cost of non-U.S. plans for fiscal 2017, fiscal 2016 and fiscal 2015 is presented in the following table: 2017 2016 2015 Service cost $ 6,688 $ 5,520 $ 15,675 Interest cost 3,581 3,675 11,636 Expected return on plan assets (4,086 ) (3,764 ) (13,509 ) Amortization of prior service cost 14 — (229 ) Amortization of transition obligation (9 ) 17 18 Recognized actuarial loss 1,865 679 7,257 Subtotal $ 8,053 $ 6,127 $ 20,848 Curtailment impact — — (4,463 ) Settlement impact — 151 226,810 Net periodic pension cost $ 8,053 $ 6,278 $ 243,195 Benefit Obligations and Plan Assets Obligation and asset data of the Company’s non-U.S. plans at October 28, 2017 and October 29, 2016 is presented in the following table: 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year $ 129,711 $ 106,533 Service cost 6,688 5,520 Interest cost 3,581 3,675 Plan amendments 176 (142 ) Settlement — (632 ) Actuarial loss (2,615 ) 30,223 Benefits paid (2,663 ) (1,701 ) Exchange rate adjustment 4,638 (13,765 ) Benefit obligation at end of year $ 139,516 $ 129,711 Change in Plan Assets Fair value of plan assets at beginning of year $ 69,823 $ 70,365 Actual return on plan assets 5,420 9,002 Employer contributions 4,995 4,880 Settlements — (632 ) Benefits paid (2,663 ) (1,701 ) Exchange rate adjustment 2,041 (12,091 ) Fair value of plan assets at end of year $ 79,616 $ 69,823 Reconciliation of Funded Status Funded status $ (59,900 ) $ (59,888 ) Amounts Recognized in the Balance Sheet Current liabilities (733 ) (606 ) Non-current liabilities (59,167 ) (59,282 ) Net amount recognized $ (59,900 ) $ (59,888 ) 2017 2016 Reconciliation of Amounts Recognized in the Statement of Financial Position Initial net obligation $ (10 ) $ (24 ) Prior service credit (45 ) 148 Net loss (35,779 ) (39,647 ) Accumulated other comprehensive loss (35,834 ) (39,523 ) Accumulated contributions less than net periodic benefit cost (24,066 ) (20,365 ) Net amount recognized $ (59,900 ) $ (59,888 ) Changes Recognized in Other Comprehensive Income Changes in plan assets and benefit obligations recognized in other comprehensive income Prior service cost $ 176 $ (142 ) Net loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost) $ (3,949 ) $ 24,985 Effect of exchange rates on amounts included in accumulated other comprehensive income (loss) 1,952 (4,137 ) Amounts recognized as a component of net periodic benefit cost Amortization, settlement or curtailment recognition of net transition obligation (14 ) (17 ) Amortization or curtailment recognition of prior service credit (cost) 9 — Amortization or settlement recognition of net loss (1,865 ) (830 ) Total recognized in other comprehensive loss $ (3,691 ) $ 19,859 Total recognized in net periodic cost and other comprehensive loss $ 4,362 $ 26,137 Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year Initial net obligation $ (10 ) $ (14 ) Prior service credit (2 ) 10 Net loss (1,582 ) (1,808 ) Total $ (1,594 ) $ (1,812 ) The accumulated benefit obligation for non-U.S. pension plans was $116.7 million and $106.4 million at October 28, 2017 and October 29, 2016 , 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 October 28, 2017 and October 29, 2016 is presented in the following table: 2017 2016 Plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 139,516 $ 129,711 Fair value of plan assets $ 79,616 $ 69,823 Plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation $ 109,261 $ 98,244 Accumulated benefit obligation $ 103,470 $ 93,164 Fair value of plan assets $ 53,747 $ 45,948 Assumptions The range of assumptions used for the non-U.S. defined benefit plans reflects the different economic environments within the various countries as well as the differences in the attributes of the participants. 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. Beginning October 29, 2016, the Company uses 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: 2017 2016 Discount rate 3.02 % 2.92 % Rate of increase in compensation levels 3.18 % 3.36 % Net annual periodic pension cost was determined using the following weighted average assumptions: 2017 2016 Discount rate 2.92 % 3.64 % Expected long-term return on plan assets 5.58 % 5.65 % Rate of increase in compensation levels 3.36 % 3.05 % 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 28, 2017 and October 29, 2016 using the same three-level hierarchy described in Note 2j, Fair Value, of these Notes to Consolidated Financial Statements: October 28, 2017 October 29, 2016 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) $ — $ 1,676 $ — $ 1,676 $ — $ 4,681 $ — $ 4,681 Equities(1) 4,701 32,520 69 37,290 — 30,510 74 30,584 Fixed income securities(2) — 39,442 — 39,442 — 33,573 — 33,573 Cash and cash equivalents 1,208 — — 1,208 985 — — 985 Total assets measured at fair value $ 5,909 $ 73,638 $ 69 $ 79,616 $ 985 $ 68,764 $ 74 $ 69,823 _______________________________________ (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 2017 and fiscal 2016 . Equities Balance as of October 31, 2015 $ 77 Exchange rate adjustment (3 ) Balance as of October 29, 2016 $ 74 Purchases, sales, and settlements, net (420 ) Realized and unrealized return on plan assets 420 Exchange rate adjustment (5 ) Balance as of October 28, 2017 $ 69 Estimated future cash flows Expected fiscal 2018 Company contributions and estimated future benefit payments are as follows: Expected Company Contributions 2018 $ 4,978 Expected Benefit Payments 2019 $ 1,958 2020 $ 2,111 2021 $ 2,079 2022 $ 2,280 2023 $ 2,936 2024 through 2027 $ 21,083 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 28, 2017 | |
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 for fiscal 2017, fiscal 2016 and fiscal 2015 is as follows: 2017 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Income tax provision reconciliation: Tax at statutory rate: $ 289,970 $ 334,922 $ 283,540 Net foreign income subject to lower tax rate (385,189 ) (264,157 ) (198,061 ) State income taxes, net of federal benefit (8,801 ) (10,821 ) (4,425 ) Valuation allowance (7,778 ) 13,658 4,875 Federal research and development tax credits (16,475 ) (16,237 ) (8,232 ) Change in uncertain tax positions (51,088 ) 4,797 2,449 Amortization of purchased intangibles 159,466 35,641 38,973 Acquisition and integration costs 109,040 — — Other, net 12,081 (2,546 ) (5,883 ) Total income tax provision $ 101,226 $ 95,257 $ 113,236 Included in income tax expense for fiscal 2017 is $98.2 million related to post acquisition integration and $10.8 million related to non-deductible acquisition costs. For financial reporting purposes, income before income taxes for fiscal 2017, fiscal 2016 and fiscal 2015 includes the following components: 2017 2016 2015 Pretax income: Domestic $ 109,565 $ 2,642 $ 110,710 Foreign 718,920 954,279 699,404 Income before income taxes $ 828,485 $ 956,921 $ 810,114 The components of the provision for income taxes for fiscal 2017, fiscal 2016 and fiscal 2015 are as follows: 2017 2016 2015 Current: Federal tax $ 857,664 $ 27,790 $ 65,942 State 7,335 1,409 695 Foreign 62,096 57,934 98,813 Total current $ 927,095 $ 87,133 $ 165,450 Deferred: Federal $ (795,478 ) $ 325 $ (27,933 ) State (24,285 ) 2,820 541 Foreign (6,106 ) 4,979 (24,822 ) Total deferred $ (825,869 ) $ 8,124 $ (52,214 ) The Company has a basis difference in its investment in foreign subsidiaries of $10.7 billion primarily as a result of unremitted earnings, the Acquisition and post-acquisition integration . The unremitted earnings as of October 28, 2017 was $ 6.3 billion . The Company intends for this basis difference to be permanently reinvested. Accordingly no U.S. income taxes have been provided. Determination of the amount of unrecognized deferred income tax liability related to the outside basis difference associated with the Acquisition is not practicable, due to the complexities associated with the manner in which the basis difference could reverse including through receipt of dividends, sale or various other events. The significant components of the Company’s deferred tax assets and liabilities for fiscal 2017 and fiscal 2016 are as follows: 2017 2016 Deferred tax assets: Inventory reserves $ 28,137 $ 22,527 Deferred income on shipments to distributors 62,923 49,455 Reserves for compensation and benefits 84,096 48,062 Tax credit carryovers 68,317 68,669 Stock-based compensation 99,815 56,345 Depreciation 2,659 3,078 Net operating losses 11,158 8,225 Acquisition-related costs 3,384 13,336 Other 34,737 39,256 Total gross deferred tax assets 395,226 308,953 Valuation allowance (53,787 ) (67,094 ) Total deferred tax assets 341,439 241,859 Deferred tax liabilities: Depreciation (64,868 ) (59,218 ) Undistributed earnings of foreign subsidiaries (64,067 ) (60,986 ) Acquisition-related intangibles (1,851,818 ) (193,059 ) Other (3,047 ) (2,522 ) Total gross deferred tax liabilities (1,983,800 ) (315,785 ) Net deferred tax liabilities $ (1,642,361 ) $ (73,926 ) The valuation allowances of $53.8 million and $67.1 million at October 28, 2017 and October 29, 2016 , respectively, are valuation allowances primarily for the Company’s state credit carryforwards. The reduction in the valuation allowance is primarily attributable to the Acquisition. 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 28, 2017 . The state credit carryover of $68.3 million will begin to expire in 2018. The net operating losses relate to the U.S and are not subject to a valuation allowance. These losses will begin to expire in 2025. 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 28, 2017 and October 29, 2016 , the Company had a net liability of $47.6 million and $75.6 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 28, 2017 and October 29, 2016 , the Company had a liability of approximately $10.8 million and $20.1 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 gross liability as of October 28, 2017 and October 29, 2016 of $49.6 million and $81.7 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 2017 , fiscal 2016 and fiscal 2015 include $(12.3) million , $4.0 million and $4.1 million , respectively, of interest and penalties related to these uncertain tax positions. Over the next fiscal year, the Company anticipates the liability may be reduced up to $22.6 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 2015 through fiscal 2017 : Unrealized Tax Benefits 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 Additions for tax positions related to current year 1,742 Additions for tax positions related to acquisition 12,332 Reductions for tax positions related to prior years (43,186 ) Reductions due to lapse of applicable statute of limitations (1,566 ) Balance, October 28, 2017 $ 37,857 The Company had filed a petition with the U.S. Tax Court for one open matter for fiscal years 2006 and 2007 that pertained 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 Company recorded a $36.5 million reserve for this potential liability in the fourth quarter of fiscal 2013. A favorable ruling was rendered by the U.S. Tax Court on November 22, 2016. On February 27, 2017, the U.S. Tax Court’s Decision Order was entered and the 90-day period for the Internal Revenue Service to file a Notice of Appeal lapsed on May 30, 2017 . As a result, on May 30, 2017 , the Company released the $50.5 million reserve, which was comprised of the $41.7 million in originally-recorded and subsequent accruals for this potential liability, plus $8.8 million of net interest. All of the Company's U.S. federal tax returns prior to fiscal 2014 are no longer subject to examination. All of the Company's Ireland tax returns prior to fiscal 2013 are no longer subject to examination. The tax returns for Linear Technology Pte. Ltd. (Singapore) prior to the fiscal year ended June 2012 are no longer subject to examination. The tax returns for Linear Semiconductor Sdn. Bhd. (Malaysia) prior to the fiscal year ended June 2011 are no longer subject to examination. The Company has a partial tax holiday in Singapore and Malaysia whereby the local statutory rate is significantly reduced, if certain conditions are met. The tax holiday for Singapore is effective through August 2019 and the tax holiday for Malaysia is effective through July 2025 . The impact of the Singapore and Malaysia tax holidays was to increase net income by approximately $27.4 million in fiscal year 2017. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Oct. 28, 2017 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility The Company has a senior unsecured revolving credit facility with certain institutional lenders (the Credit Agreement) that expires on July 10, 2020. The Credit Agreement provides that the Company may borrow up to $1.0 billion . To date, the Company has not borrowed under this revolving credit facility but 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 0 .50% or (iii) one month Eurodollar Rate plus 1% ). The Credit Agreement imposes 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 EBITDA (earnings before interest, taxes, depreciation, and amortization) of not greater than 5.0 to 1.0 . The debt covenant will be reduced over time to 3.0 to 1.0 starting in May 2018. As of October 28, 2017 , the Company was compliant with these covenants . |
Debt
Debt | 12 Months Ended |
Oct. 28, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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. 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 28, 2017 , 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 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 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 28, 2017 , 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 (the Merger Agreement). In connection with the Acquisition, the Company announced that it had obtained commitment financing in the form of a 364 -day senior unsecured bridge facility in an aggregate principal amount of up to $7.5 billion ( 364 -day Bridge Commitment) and a 90 -day senior unsecured bridge facility in an aggregate principal amount of up to $4.1 billion ( 90 -day Bridge Commitment). As discussed below, as a result of entering into the term loan facility and the issuance of $2.1 billion senior unsecured notes, the 364 -day Bridge Commitment was terminated and $13.7 million and $7.2 million of unamortized bridge fees relating to the 364 -day Bridge Commitment were accelerated and amortized into interest expense in fiscal 2016 and first quarter of fiscal 2017, respectively. Total fees incurred by the Company for the 364 -day Bridge Commitment were approximately $27.5 million . On the Acquisition Date, the Company entered into a 90 -day Bridge Credit Agreement (the Bridge Credit Agreement). The Bridge Credit Agreement provided for unsecured loans in an aggregate principal amount of up to $4.1 billion . In the third quarter of fiscal 2017, the Company repaid all of the $4.1 billion of outstanding loans under the Bridge Credit Agreement. Total fees incurred by the Company for the 90 -day Bridge Commitment and Bridge Credit Agreement were approximately $15.0 million . 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). The Term Loan Agreement replaced $5.0 billion of the 364 -Bridge Commitment. On the Acquisition Date, the Company borrowed under the Term Loan Agreement, consisting of a 3 -year unsecured term loan in the principal amount of $2.5 billion , due March 10, 2020 and a 5 -year unsecured term loan in the principal amount of $2.5 billion , due March 10, 2022. The 5 -year term loan requires repayment in quarterly installments on the last business day of each March, June, September and December with the first required payment due June 2017. Prepayments of principal on the term loans can be made at any time without penalty. In fiscal 2017, the Company repaid $400.0 million of principal on the 5 -year unsecured term loan, which satisfied the quarterly obligations due through September 2019. In addition, in fiscal 2017, the Company repaid $550.0 million of principal on the 3 -year unsecured term loan. The term loans bear interest at a rate per annum equal to the Eurodollar Rate plus a margin based on the Company’s debt ratings from time to time of between 0.75% and 1.63% in the case of the 3 -year term loan, and a margin of between 0.88% and 1.75% in the case of the 5 -year term loan. As a result of entering into the Term Loan Agreement and drawing on the available borrowings, the Company incurred fees of approximately $11.5 million . The Company recorded these costs as deferred financing costs and will amortize them on a straight-line basis through interest expense over the expected 3 - and 5 -year terms of the term loans. On November 10, 2017, the Company paid $300.0 million of principal on the 3 -year unsecured term loan using cash on hand as of October 28, 2017. This amount was not contractually due under the terms of the loan. As such this amount was classified as current in the Consolidated Balance Sheet as of October 28, 2017. On December 5, 2016 , the Company issued $400.0 million aggregate principal amount of 2.5% senior unsecured notes due December 5, 2021 (the 2021 Notes), $550.0 million aggregate principal amount of 3.125% senior unsecured notes due December 5, 2023 (the December 2023 Notes), $900.0 million aggregate principal amount of 3.5% senior unsecured notes due December 5, 2026 (the 2026 Notes) and $250.0 million aggregate principal amount of 4.5% senior unsecured notes due December 5, 2036 (the 2036 Notes, and together with the 2021 Notes, the December 2023 Notes and the 2026 Notes, the Notes) with semi-annual fixed interest payments due on June 5 and December 5 of each year, commencing June 5, 2017 . The net proceeds of the offering were $2.1 billion , after discount and issuance costs. Debt discount and issuance costs will be amortized through interest expense over the term of the Notes. The Notes were issued pursuant to an indenture, as supplemented by a supplemental indenture, and the indenture and supplemental indenture contain certain covenants, events of default and other customary provisions. As of October 28, 2017 , the Company was compliant with these covenants. The Notes rank without preference or priority among themselves and equally in right of payment with all other existing and future senior unsecured debt and senior in right of payment to all of the Company's future subordinated debt. The issuance of the Notes replaced the remaining $2.5 billion of the 364 -day Bridge Commitment. The Company’s debt consisted of the following as of October 28, 2017 and October 29, 2016 : October 28, 2017 October 29, 2016 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 3-Year term loan $ 1,650,000 $ 3,270 $ — $ — 5-Year term loan 2,100,000 4,727 — — 2021 Notes, due December 2021 400,000 3,756 — — 2023 Notes, due June 2023 500,000 3,434 500,000 4,047 2023 Notes, due December 2023 550,000 5,392 — — 2025 Notes, due December 2025 850,000 7,154 850,000 8,034 2026 Notes, due December 2026 900,000 11,655 — — 2036 Notes, due December 2036 250,000 3,983 — — 2045 Notes, due December 2045 400,000 5,545 400,000 5,742 Total Long-Term Debt $ 7,600,000 $ 48,916 $ 1,750,000 $ 17,823 3-Year term loan, current 300,000 — — — Total Current Debt $ 300,000 $ — $ — $ — Total Debt $ 7,900,000 $ 48,916 $ 1,750,000 $ 17,823 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 10, 2017 , the Company repaid $300.0 million of principal on its 3 -year unsecured term loan facility. This amount was not contractually due under the terms of the loan. As such this amount is classified as current in the Consolidated Balance Sheet as of October 28, 2017. On November 20, 2017 , the Board of Directors of the Company declared a cash dividend of $0.45 per outstanding share of common stock. The dividend will be paid on December 12, 2017 to all shareholders of record at the close of business on December 1, 2017 . |
Supplementary Financial Informa
Supplementary Financial Information (Unaudited) | 12 Months Ended |
Oct. 28, 2017 | |
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 2017 and fiscal 2016 include results of operations of Linear from March 10, 2017: 4Q17 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16 Revenue 1,541,170 1,433,902 1,147,982 984,449 1,003,623 869,591 778,766 769,429 Cost of sales 535,145 667,278 507,539 335,945 336,936 297,301 267,863 292,136 Gross margin 1,006,025 766,624 640,443 648,504 666,687 572,290 510,903 477,293 % of Revenue 65.3 % 53.5 % 55.8 % 65.9 % 66.4 % 65.8 % 65.6 % 62.0 % Research and development 273,746 275,670 235,232 183,954 172,926 163,227 160,235 157,428 Selling, marketing, general and administrative 185,721 183,980 190,686 130,659 118,881 122,909 112,186 107,462 Special charges — — — 49,463 — — 13,684 — Other operating expense — — — — — — — — Amortization of intangibles 98,348 112,153 68,690 18,160 17,899 17,447 17,419 17,358 Total operating expenses 557,815 571,803 494,608 382,236 309,706 303,583 303,524 282,248 Operating income 448,210 194,821 145,835 266,268 356,981 268,707 207,379 195,045 % of Revenue 29 % 14 % 13 % 27 % 36 % 31 % 27 % 25 % Nonoperating (income) expenses: Interest expense (a) 63,517 73,073 71,636 42,614 38,764 18,476 18,455 13,062 Interest income (2,388 ) (5,524 ) (12,421 ) (10,000 ) (7,114 ) (5,665 ) (5,243 ) (3,199 ) Other, net 5,417 474 (94 ) 345 1,897 (504 ) (743 ) 3,005 Total nonoperating (income) expense 66,546 68,023 59,121 32,959 33,547 12,307 12,469 12,868 Income before income taxes 381,664 126,798 86,714 233,309 323,434 256,400 194,910 182,177 % of Revenue 25 % 9 % 8 % 24 % 32 % 29 % 25 % 24 % Provision for income taxes (b) 34,014 57,882 (6,850 ) 16,180 27,277 25,970 24,337 17,673 Net income 347,650 68,916 93,564 217,129 296,157 230,430 170,573 164,504 % of Revenue 23 % 5 % 8 % 22 % 30 % 26 % 22 % 21 % Basic earnings per common share 0.94 0.18 0.27 0.70 0.96 0.75 0.55 0.53 Diluted earnings per common share 0.93 0.18 0.27 0.69 0.95 0.74 0.55 0.52 Shares used to compute earnings per share (in thousands): Basic 368,043 367,315 341,316 308,786 307,854 307,135 308,790 311,166 Diluted 372,053 371,159 345,654 313,076 311,633 310,558 312,250 314,793 Dividends declared per share 0.45 0.45 0.45 0.42 0.42 0.42 0.42 0.40 a) Interest expense in fiscal 2017 and the fourth quarter of fiscal 2016 includes interest and fees associated with financing commitments entered into in connection with the Acquisition. b) Provision for income taxes in the second quarter of fiscal 2017 included a tax benefit of $15.0 million for the release of a state tax credit valuation allowance as a result of the Acquisition. Provision for income taxes in the third quarter of fiscal 2017 included approximately $98.2 million of tax expense incurred during the quarter as part of the post-Acquisition integration, partially offset by a tax benefit of $50.5 million related to the reduction of reserves and related interest resulting from the U.S. Tax Court’s favorable ruling, as well as lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 28, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended October 28, 2017 , October 29, 2016 and October 31, 2015 (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 October 31, 2015 $ 2,919 $ 2,686 $ — $ 3,524 $ 2,081 Year ended October 29, 2016 $ 2,081 $ 3,936 $ — $ 900 $ 5,117 Year ended October 28, 2017 $ 5,117 $ 12,284 $ — $ 10,188 $ 7,213 Valuation Reserve for Deferred Tax Asset: 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 Year ended October 28, 2017 $ 67,094 $ (7,778 ) $ 5,529 $ 53,787 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 28, 2017 | |
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 28, 2017 ( fiscal 2017 ). Such reclassified amounts are immaterial. 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 2017 , the fiscal year ended October 29, 2016 (fiscal 2016 ) and the fiscal year ended October 31, 2015 (fiscal 2015 ) were 52 -week periods. On March 10, 2017 (Acquisition Date), the Company completed the acquisition of Linear Technology Corporation (Linear), a designer, manufacturer and marketer of high performance analog integrated circuits. The total consideration paid to acquire Linear was approximately $15.8 billion , consisting of $11.1 billion in cash financed through existing cash on hand, net proceeds from bridge and term loan facilities and proceeds received from the issuance of senior unsecured notes, $4.6 billion from the issuance of the Company's common stock and $0.1 billion of consideration related to the replacement of outstanding equity awards held by Linear employees. The acquisition of Linear is referred to as the Acquisition. The consolidated financial statements included in this Annual Report on Form 10-K include the financial results of Linear prospectively from the Acquisition Date. See Note 6, Acquisitions , of these notes to Consolidated Financial Statements for further discussion related to the Acquisition. |
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 government and 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 28, 2017 or October 29, 2016 . 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. |
Supplemental Cash Flow Statement Information | Supplemental Cash Flow Statement Information 2017 2016 2015 Cash paid during the fiscal year for: Income taxes $ 868,492 $ 77,918 $ 142,931 Interest $ 183,117 $ 41,701 $ 25,625 |
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 30 years Machinery & equipment 3-10 years Office equipment 3-10 years Depreciation expense for property, plant and equipment was $194.7 million , $134.5 million and $130.1 million in fiscal 2017 , 2016 and 2015 , 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. |
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 which we have determined is consistent with our operating segments, 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 goodwill impairment test requires an entity to compare the fair value of a reporting unit with its carrying amount. 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 estimate their respective fair values. In order to assess the reasonableness of the calculated reporting unit fair values, the Company reconciles the aggregate estimated fair values of its reporting units determined 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, an impairment loss is recognized for the amount of the carrying value that exceeds the amount of the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Additionally, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. 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 November 3, 2018 (fiscal 2018 ) unless indicators arise that would require the Company to reevaluate at an earlier date. The following table presents the changes in goodwill during fiscal 2017 and fiscal 2016 : 2017 2016 Balance at beginning of year $ 1,679,116 $ 1,636,526 Acquisition of Linear (Note 6) 10,532,272 — Goodwill adjustment related to other acquisitions (1) 4,198 44,046 Foreign currency translation adjustment 1,869 (1,456 ) Balance at end of year $ 12,217,455 $ 1,679,116 (1) 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 estimated 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 estimated 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. In-process research and development (IPR&D) assets are considered indefinite-lived intangible assets until completion or abandonment of the associated research and development (R&D) efforts. Upon completion of the projects, the IPR&D assets are reclassified to technology-based intangible assets and amortized over their estimated useful lives. As of October 28, 2017 and October 29, 2016 , the Company’s intangible assets consisted of the following: October 28, 2017 October 29, 2016 Gross Carrying Accumulated Gross Carrying Amount Accumulated Amortization Customer relationships $ 4,683,461 $ 449,369 $ 649,159 $ 158,979 Technology-based 1,097,025 101,920 38,731 9,958 Trade-name 72,800 6,906 600 60 Backlog 200 200 200 — IPR&D 24,334 — 29,675 — Total (1) (2) $ 5,877,820 $ 558,395 $ 718,365 $ 168,997 ________ (1) Foreign intangible asset carrying amounts are affected by foreign currency translation. (2) Increases in intangible assets primarily relate to the Acquisition and other acquisitions. See Note 6, Acquisitions, of these Notes to Consolidated Financial Statements for further information. Intangible assets, along with the related accumulated amortization, are removed from the table above at the end of the fiscal year they become fully amortized. |
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. The amounts recognized were not material in fiscal 2017 , 2016 or 2015 . |
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 2017 , 2016 or 2015 . |
Derivative Instruments and Hedging Agreements | 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. 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 28, 2017 and 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. 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 British Pound, Philippine Peso and the Japanese Yen. 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 Measurement | 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 derivatives — The fair value of interest rate derivatives are estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. 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. 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. |
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, 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 fair value of acquired assets and liabilities, including inventory, property, plant and equipment and acquired intangibles, 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. |
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 countries. Revenue from product sales to customers in other foreign countries is recognized subsequent to product shipment. Title for 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, subcontractor 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. Product sales to certain international distributors are made under agreements that permit limited stock return privileges but not sales price rebates. Revenue on these sales is recognized upon shipment at which time title passes. The Company defers revenue and the related cost of sales on shipments to U.S. distributors and certain international 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 certain of these distributors are made under agreements that allow such 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, such distributors are allowed to return unsold products if the Company terminates the relationship with the distributor. Certain 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. Certain 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 certain 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 certain distributors until such 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 28, 2017 and October 29, 2016 , the Company had gross deferred revenue of $589.5 million and $432.3 million , respectively, and gross deferred cost of sales of $115.5 million and $80.8 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 2017 , fiscal 2016 and fiscal 2015 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 28, 2017 and October 29, 2016 consisted of the following, net of tax: Foreign currency translation adjustment Unrealized holding gains on available for sale securities Unrealized holding (losses) on available for sale securities Unrealized holding Gains on Derivatives Pension Plans Total October 29, 2016 $ (24,063 ) $ 800 $ (281 ) $ (18,884 ) $ (31,386 ) $ (73,814 ) Other comprehensive income before reclassifications 16 (844 ) 292 4,726 1,941 6,131 Amounts reclassified out of other comprehensive income — — — 5,525 1,870 7,395 Tax effects 1,556 47 (12 ) (2,246 ) (416 ) (1,071 ) Other comprehensive income 1,572 (797 ) 280 8,005 3,395 12,455 October 28, 2017 $ (22,491 ) $ 3 $ (1 ) $ (10,879 ) $ (27,991 ) $ (61,359 ) The amounts reclassified out of accumulated other comprehensive loss into the consolidated statement of income, with presentation location during each period were as follows: 2017 2016 Comprehensive Income Component Location Unrealized holding (losses) gains on derivatives Currency forwards $ 2,188 $ 2,059 Cost of sales 330 1,038 Research and development 927 (579 ) Selling, marketing, general and administrative Interest rate derivatives 2,080 1,969 Interest expense 5,525 4,487 Total before tax (1,326 ) (1,050 ) Tax $ 4,199 $ 3,437 Net of tax Amortization of pension components Transition obligation $ 14 $ 17 (a) Prior service credit and curtailment recognition (9 ) — (a) Actuarial losses and settlement recognition 1,865 830 (a) 1,870 847 Total before tax (400 ) (228 ) Tax $ 1,470 $ 619 Net of tax Total amounts reclassified out of accumulated other comprehensive income, net of tax $ 5,669 $ 4,056 ______________ a) 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 $12.6 million in fiscal 2017 , $6.1 million in fiscal 2016 and $4.7 million in fiscal 2015 . |
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 recorded. The Company re-evaluates these uncertain tax positions on a quarterly basis. See Note 14, Income Taxes , of these Notes to Consolidated Financial Statements for further information related to income taxes. |
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 periods, could be dilutive in the future. In connection with the Acquisition, the Company granted restricted stock awards to replace outstanding restricted stock awards of Linear employees. These restricted stock awards entitle recipients to voting and nonforfeitable dividend rights from the date of grant. These unvested stock-based compensation awards are considered participating securities and the two-class method is used for purposes of calculating earnings per share. Under the two-class method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of earnings per share allocated to common stock, as shown in the table below. The difference between the income allocated to participating securities under the basic and diluted two-class methods is not material. |
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, or in annual installments of 20% on each of the first, second, third, fourth and fifth anniversaries of the date of grant, and three years for restricted stock units/awards. In addition to restricted stock units with a service condition, the Company grants restricted stock units with market conditions, performance conditions and service conditions. For awards with both a market and service condition the number of shares of the Company's common stock to be issued upon vesting 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 restricted stock units with a market and service condition 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 restricted stock units with a market and service condition. 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 and those with both a service and performance 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 Business combinations In September 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The adoption of ASU 2015-16 in the first quarter of fiscal 2017 did not impact the Company's financial position or 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. The adoption of ASU 2015-05 did not impact the Company's financial position 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. The adoption of ASU 2015-02 did not impact the Company’s financial position or results of operations. Stock Compensation 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. The adoption of ASU 2014-12 did not impact the Company's financial position or results of operations. Intangibles - Goodwill and Other In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) (ASU 2017-04). ASU 2017-04 simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual, or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. A goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The amendment should be applied on a prospective basis. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted ASU 2014-12 in the fourth quarter of fiscal 2017. The adoption did not impact the Company's financial position 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. As of October 28, 2017, the Company has concluded that substantial doubt about our ability to continue as a going concern does not exist. Standards to be Implemented Business combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business (ASU 2017-01). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company will adopt ASU 2017-01 in the first quarter of the fiscal year ending November 2, 2019 (fiscal 2019). The impact of the adoption on the Company's financial position and results of operations will be dependent upon any future acquisitions or disposals. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) (ASU 2016-16) . 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 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). 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 but does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. 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 fiscal 2018. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. ASU 2017-12 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, if any, adoption will have on its financial position and results of operations. 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 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 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 for the Company in the first quarter of fiscal 2019. The Company is currently evaluating the impact 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 2015-11 is effective for the Company in the first quarter of fiscal 2018. The Company does not expect the adoption of ASU 2015-11 to have a material impact on its consolidated financial statements. Stock Compensation In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09) . The new guidance clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. ASU 2017-09 is effective for fiscal years, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. ASU 2017-09 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 financial position and results of operations. 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. Currently, excess tax benefits or deficiencies from the Company’s share-based payment awards are recorded in Capital in excess of par value (APIC) in its Consolidated Balance Sheets. Upon adoption, the Company will record any excess tax benefits or deficiencies from its share-based payments in its Consolidated Statements of Income in the reporting periods in which they occur. Currently excess tax benefits or deficiencies are classified within financing activities in the statement of cash flows. Upon adoption, the Company will classify any excess tax benefits or deficiencies as an operating activity in the Consolidated Statement of Cash Flows. As a result, subsequent to adoption, the Company’s income tax expense and associated effective tax rate will be impacted by fluctuations in stock price from grant date to vesting date and the exercises of awards by employees. The potential tax impacts remain unknown until the awards vest. 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. The Company has developed a project plan for the implementation of the guidance, including a review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. The Company has reviewed its revenue streams and is nearing completion in assessing all potential impacts of the standard, including any impacts from recently issued amendments, and retrospectively adjusting financial information for prior fiscal years. The Company has also made progress on its impact assessment of the recent acquisition of Linear. While the Company is still in the process of completing its evaluation of the standard, it currently believes the most significant impact will be related to the timing of recognition of sales to certain distributors. As described in Note 2n, Revenue Recognition , of these Notes to the Consolidated Financial Statements, the Company currently defers revenue and the related cost of sales on shipments to certain 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 will adopt ASU 2014-09, using the full retrospective method, upon its effective date for the Company which is the Company’s first quarter of fiscal 2019. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Accounting Policies [Abstract] | |
Unrealized gains and losses on available-for-sale securities classified as short-term investments | Gross unrealized gains and losses on available-for-sale securities classified as short-term investments at October 28, 2017 and October 29, 2016 were as follows: 2017 2016 Unrealized gains on securities classified as short-term investments $ 2 $ 846 Unrealized losses on securities classified as short-term investments (2 ) (294 ) Net unrealized gain on securities classified as short-term investments $ — $ 552 |
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 28, 2017 and October 29, 2016 were as follows: 2017 2016 Cash and cash equivalents: Cash $ 226,160 $ 67,877 Available-for-sale 751,678 693,255 Held-to-maturity 70,000 160,000 Total cash and cash equivalents $ 1,047,838 $ 921,132 Short-term investments: Available-for-sale $ — $ 3,110,011 Held-to-maturity (less than one year to maturity) — 24,650 Total short-term investments $ — $ 3,134,661 |
Supplemental cash flow statement Information | 2017 2016 2015 Cash paid during the fiscal year for: Income taxes $ 868,492 $ 77,918 $ 142,931 Interest $ 183,117 $ 41,701 $ 25,625 |
Inventories | Inventories at October 28, 2017 and October 29, 2016 were as follows: 2017 2016 Raw materials $ 35,436 $ 20,263 Work in process 376,476 232,196 Finished goods 138,904 124,096 Total inventories $ 550,816 $ 376,555 |
Useful lives of property, plant and equipment | Depreciation is based on the following ranges of estimated useful lives: Buildings Up to 30 years Machinery & equipment 3-10 years Office equipment 3-10 years |
Changes in goodwill | The following table presents the changes in goodwill during fiscal 2017 and fiscal 2016 : 2017 2016 Balance at beginning of year $ 1,679,116 $ 1,636,526 Acquisition of Linear (Note 6) 10,532,272 — Goodwill adjustment related to other acquisitions (1) 4,198 44,046 Foreign currency translation adjustment 1,869 (1,456 ) Balance at end of year $ 12,217,455 $ 1,679,116 (1) Represents goodwill related to other acquisitions that were not material to the Company on either an individual or aggregate basis. |
Intangible Assets | As of October 28, 2017 and October 29, 2016 , the Company’s intangible assets consisted of the following: October 28, 2017 October 29, 2016 Gross Carrying Accumulated Gross Carrying Amount Accumulated Amortization Customer relationships $ 4,683,461 $ 449,369 $ 649,159 $ 158,979 Technology-based 1,097,025 101,920 38,731 9,958 Trade-name 72,800 6,906 600 60 Backlog 200 200 200 — IPR&D 24,334 — 29,675 — Total (1) (2) $ 5,877,820 $ 558,395 $ 718,365 $ 168,997 ________ (1) Foreign intangible asset carrying amounts are affected by foreign currency translation. (2) Increases in intangible assets primarily relate to the Acquisition and other acquisitions. See Note 6, Acquisitions, of these Notes to Consolidated Financial Statements for further information. |
Schedule of expected annual amortization expense | The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2018 $ 565,885 2019 $ 562,696 2020 $ 562,457 2021 $ 562,037 2022 $ 559,107 |
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 28, 2017 and October 29, 2016 were as follows: Fair Value At Balance Sheet Location October 28, 2017 October 29, 2016 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 257 $ — Forward foreign currency exchange contracts Accrued liabilities $ — $ 5,260 |
Offsetting Assets Liabilities | The following table presents the gross amounts of the Company's derivative assets and liabilities and the net amounts recorded in the Company's consolidated balance sheet as of October 28, 2017 and October 29, 2016 : October 28, 2017 October 29, 2016 Gross amount of recognized liabilities $ (5,039 ) $ (5,788 ) Gross amounts of recognized assets offset in the consolidated balance sheet 3,512 557 Net liabilities presented in the consolidated balance sheet $ (1,527 ) $ (5,231 ) |
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 28, 2017 and October 29, 2016 . 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 28, 2017 and October 29, 2016 , the Company held $296.2 million and $252.5 million , respectively, of cash and held-to-maturity investments that were excluded from the tables below. October 28, 2017 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: Government and institutional money market funds $ 512,882 $ — $ — $ 512,882 Corporate obligations (1) — 238,796 — 238,796 Other assets: Deferred compensation investments 33,510 — — 33,510 Interest rate derivatives — 2,966 — 2,966 Total assets measured at fair value $ 546,392 $ 241,762 $ — $ 788,154 Liabilities Contingent consideration — — 7,891 7,891 Forward foreign currency exchange contracts (2) — 1,527 — 1,527 Total liabilities measured at fair value $ — $ 1,527 $ 7,891 $ 9,418 (1) The amortized cost of the Company’s investments classified as available-for-sale as of October 28, 2017 was $238.9 million . (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 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 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 2 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 October 31, 2015 to October 28, 2017 : Contingent Consideration 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 Contingent consideration liability recorded 2,000 Payment made (1) (2,000 ) Fair value adjustment (2) 336 Balance as of October 28, 2017 $ 7,891 (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 28, 2017 and October 29, 2016 consisted of the following, net of tax: Foreign currency translation adjustment Unrealized holding gains on available for sale securities Unrealized holding (losses) on available for sale securities Unrealized holding Gains on Derivatives Pension Plans Total October 29, 2016 $ (24,063 ) $ 800 $ (281 ) $ (18,884 ) $ (31,386 ) $ (73,814 ) Other comprehensive income before reclassifications 16 (844 ) 292 4,726 1,941 6,131 Amounts reclassified out of other comprehensive income — — — 5,525 1,870 7,395 Tax effects 1,556 47 (12 ) (2,246 ) (416 ) (1,071 ) Other comprehensive income 1,572 (797 ) 280 8,005 3,395 12,455 October 28, 2017 $ (22,491 ) $ 3 $ (1 ) $ (10,879 ) $ (27,991 ) $ (61,359 ) |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: 2017 2016 2015 Net Income $ 727,259 $ 861,664 $ 696,878 Less: income allocated to participating securities 2,243 — — Net income allocated to common shareholders 725,016 861,664 696,878 Basic shares: Weighted-average shares outstanding 346,371 308,736 312,660 Earnings per common share basic $ 2.09 $ 2.79 $ 2.23 Diluted shares: Weighted-average shares outstanding 346,371 308,736 312,660 Assumed exercise of common stock equivalents 4,113 3,572 4,212 Weighted-average common and common equivalent shares 350,484 312,308 316,872 Earnings per common share diluted $ 2.07 $ 2.76 $ 2.20 Anti-dilutive shares related to: Outstanding stock options 1,527 3,077 2,089 |
Schedule of debt | The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis. The carrying amounts of the term loans approximate fair value. The term loans are classified as Level 2 measurements according to the fair value hierarchy. The fair values of the senior unsecured notes debt are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy. See Note 16, Debt , of these Notes to Consolidated Financial Statements for further discussion related outstanding debt. October 28, 2017 October 29, 2016 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value 3-Year term loan $ 1,950,000 1,950,000 — — 5-Year term loan 2,100,000 2,100,000 — — 2021 Notes, due December 2021 400,000 399,530 — — 2023 Notes, due June 2023 500,000 498,582 500,000 501,307 2023 Notes, due December 2023 550,000 554,411 — — 2025 Notes, due December 2025 850,000 884,861 850,000 901,523 2026 Notes, due December 2026 900,000 902,769 — — 2036 Notes, due December 2036 250,000 259,442 — — 2045 Notes, due December 2045 400,000 460,588 400,000 425,109 The Company’s debt consisted of the following as of October 28, 2017 and October 29, 2016 : October 28, 2017 October 29, 2016 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 3-Year term loan $ 1,650,000 $ 3,270 $ — $ — 5-Year term loan 2,100,000 4,727 — — 2021 Notes, due December 2021 400,000 3,756 — — 2023 Notes, due June 2023 500,000 3,434 500,000 4,047 2023 Notes, due December 2023 550,000 5,392 — — 2025 Notes, due December 2025 850,000 7,154 850,000 8,034 2026 Notes, due December 2026 900,000 11,655 — — 2036 Notes, due December 2036 250,000 3,983 — — 2045 Notes, due December 2045 400,000 5,545 400,000 5,742 Total Long-Term Debt $ 7,600,000 $ 48,916 $ 1,750,000 $ 17,823 3-Year term loan, current 300,000 — — — Total Current Debt $ 300,000 $ — $ — $ — Total Debt $ 7,900,000 $ 48,916 $ 1,750,000 $ 17,823 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The amounts reclassified out of accumulated other comprehensive loss into the consolidated statement of income, with presentation location during each period were as follows: 2017 2016 Comprehensive Income Component Location Unrealized holding (losses) gains on derivatives Currency forwards $ 2,188 $ 2,059 Cost of sales 330 1,038 Research and development 927 (579 ) Selling, marketing, general and administrative Interest rate derivatives 2,080 1,969 Interest expense 5,525 4,487 Total before tax (1,326 ) (1,050 ) Tax $ 4,199 $ 3,437 Net of tax Amortization of pension components Transition obligation $ 14 $ 17 (a) Prior service credit and curtailment recognition (9 ) — (a) Actuarial losses and settlement recognition 1,865 830 (a) 1,870 847 Total before tax (400 ) (228 ) Tax $ 1,470 $ 619 Net of tax Total amounts reclassified out of accumulated other comprehensive income, net of tax $ 5,669 $ 4,056 ______________ a) 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 . |
Stock-Based Compensation and 30
Stock-Based Compensation and Shareholders' Equity (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
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 in fiscal 2017, fiscal 2016 and fiscal 2015 is as follows: Stock Options 2017 2016 2015 Options granted (in thousands) 1,480 1,814 1,954 Weighted-average exercise price $82.99 $55.19 $57.20 Weighted-average grant-date fair value $17.12 $12.67 $10.38 Assumptions: Weighted-average expected volatility 26.4 % 34.0 % 25.9 % Weighted-average expected term (in years) 5.1 5.1 5.3 Weighted-average risk-free interest rate 2.1 % 1.4 % 1.6 % Weighted-average expected dividend yield 2.2 % 3.0 % 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 28, 2017 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 29, 2016 11,704 $44.43 Options granted 1,480 $82.99 Options exercised (3,470 ) $38.60 Options forfeited (360 ) $55.56 Options expired (7 ) $34.09 Options outstanding at October 28, 2017 9,347 $52.27 6.2 $363,972 Options exercisable at October 28, 2017 4,907 $42.09 4.7 $240,991 Options vested or expected to vest at October 28, 2017 (1) 9,011 $51.69 6.2 $356,098 (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 28, 2017 and changes during the fiscal year then ended is presented below: Restricted Stock Units/Awards Outstanding (in thousands) Weighted- Average Grant- Date Fair Value Per Share Restricted stock units/awards outstanding at October 29, 2016 2,690 $50.11 Units/Awards granted 4,809 $79.76 Restrictions lapsed (1,580 ) $60.02 Forfeited (239 ) $64.01 Restricted stock units/awards outstanding at October 28, 2017 5,680 $71.88 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 in fiscal 2017, fiscal 2016 and fiscal 2015 using the Monte Carlo simulation model is as follows: Market-based Restricted Stock Units 2017 2016 2015 Units granted (in thousands) 59 102 75 Grant-date fair value $94.25 $58.95 $55.67 Assumptions: Historical stock price volatility 26.0 % 25.1 % 20.0 % Risk-free interest rate 1.6 % 1.1 % 1.1 % Expected dividend yield 2.2 % 3.0 % 2.8 % |
Industry, Segment And Geograp31
Industry, Segment And Geographic Information (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
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. 2017 2016 2015 Revenue % of Revenue % of Revenue % of Industrial $ 2,361,549 46 % $ 1,497,070 44 % $ 1,495,887 44 % Automotive 782,961 15 % 541,774 16 % 526,493 15 % Consumer 1,047,606 21 % 687,697 20 % 727,585 21 % Communications 915,387 18 % 694,868 20 % 685,127 20 % Total Revenue $ 5,107,503 100 % $ 3,421,409 100 % $ 3,435,092 100 % |
Revenue Trends and Property, Plant and Equipment by Geographic Region | Geographic Information Revenue by geographic region is based upon the primary end customer location for the Company's products. In fiscal 2017 , fiscal 2016 and fiscal 2015 , 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. 2017 2016 2015 Revenue United States $ 1,999,041 $ 1,299,629 $ 1,325,279 Rest of North and South America 103,077 95,957 97,189 Europe 1,211,435 924,849 939,230 Japan 506,114 291,649 319,569 China 842,532 575,690 511,365 Rest of Asia 445,304 233,635 242,460 Subtotal all foreign countries 3,108,462 2,121,780 2,109,813 Total revenue $ 5,107,503 $ 3,421,409 $ 3,435,092 Property, plant and equipment United States $ 504,968 $ 236,625 $ 253,417 Ireland 188,728 174,952 173,703 Philippines 228,629 194,587 195,662 Singapore 77,015 — — Malaysia 71,756 — — All other countries 36,208 29,952 21,328 Subtotal all foreign countries 602,336 399,491 390,693 Total property, plant and equipment $ 1,107,304 $ 636,116 $ 644,110 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Company's special charges, Income Statement | Statement of Income Reduction of Early Retirement Action Total Special Charges Workforce reductions 13,684 — 13,684 Total Fiscal 2016 Charges $ 13,684 $ — $ 13,684 Workforce reductions 8,126 41,337 49,463 Total Fiscal 2017 Charges $ 8,126 $ 41,337 $ 49,463 |
Accrued restructuring | Accrued Restructuring Reduction of Operating Costs Action Early Retirement Action 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 $ — Fiscal 2017 special charges 8,126 41,337 Severance payments (15,764 ) (9,126 ) Effect of foreign currency on accrual 401 — Balance at October 28, 2017 $ 5,137 $ 32,211 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The acquired intangible assets consisted of the following, which are being 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. Fair Value (in thousands) Weighted Average Useful Lives (in Years) Technology-based $ 1,046,100 8 Trade name 72,200 7 Customer relationships 4,034,300 12 Total amortizable intangible assets $ 5,152,600 11 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Cash and cash equivalents $ 1,466,445 Marketable securities 100,246 Accounts receivable (a) 146,282 Inventories 461,698 Prepaid expenses and other assets 14,782 Property, plant and equipment 462,285 Intangible assets (Note 10) 5,152,600 Goodwill (Note 10) 10,532,272 Total assets $ 18,336,610 Assumed liabilities 188,454 Deferred tax liabilities 2,391,500 Total estimated purchase consideration $ 15,756,656 ____________ (a) The fair value of accounts receivable was $146.5 million , with the gross contractual amount being $148.2 million , of which the Company estimates that $1.7 million is uncollectible. |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The Acquisition Date fair value of the consideration transferred in the Acquisition consisted of the following: (in thousands) Cash consideration (a) $ 11,092,047 Issuance of common stock (b) 4,593,655 Fair value of replacement share-based and cash awards (c) 70,954 Total estimated purchase consideration $ 15,756,656 _______________ (a)The cash consideration was funded utilizing cash on hand, the net proceeds from bridge credit and term loan facilities and the proceeds received from the Company's issuance of the Notes (see Note 16, Debt , of these Notes to Consolidated Financial Statements). This reflects the cash portion of the purchase consideration paid to Linear stockholders of approximately $11.1 billion , as well as $16.3 million for the cash-settled portion of consideration paid to holders of restricted stock and restricted stock awards that automatically vested at the effective time of the Acquisition pursuant to pre-existing change-of-control agreements. (b) The fair value is based on the issuance of approximately 55.9 million shares of the Company's common stock with a per-share value of $82.20 (the closing price of the Company's common stock on The Nasdaq Global Select Market on the Acquisition Date). (c) In connection with the Acquisition, the Company issued equity and cash awards to certain Linear employees to replace Linear equity awards. This amount represents the portion of the fair value of the replacement equity and cash awards associated with services rendered though the Acquisition Date and have been included as a component of the total estimated purchase consideration. |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (thousands, except per share data) Pro Forma Twelve Months Ended October 28, 2017 October 29, 2016 Revenue $ 5,702,841 $ 4,842,658 Net income $ 1,039,522 $ 359,037 Basic net income per common share $ 2.82 $ 0.98 Diluted net income per common share $ 2.78 $ 0.97 |
Deferred Compensation Plan In34
Deferred Compensation Plan Investments (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Deferred Compensation Plan Investments [Abstract] | |
Components of investment | The components of the investments as of October 28, 2017 and October 29, 2016 were as follows: 2017 2016 Money market funds $ 2,413 $ 3,129 Mutual funds 31,097 23,787 Total Deferred Compensation Plan investments $ 33,510 $ 26,916 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at October 28, 2017 and October 29, 2016 consisted of the following: 2017 2016 Accrued compensation and benefits $ 271,321 $ 112,003 Accrued interest (Note 16) 59,400 26,411 Special charges (Note 5) 37,348 12,374 Other 130,757 105,069 Total accrued liabilities $ 498,826 $ 255,857 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
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 28, 2017 : Operating Fiscal Years Leases 2018 $ 41,795 2019 23,663 2020 17,479 2021 13,048 2022 9,350 Later Years 37,578 Total $ 142,913 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension cost of non-U.S. plans | Net annual periodic pension cost of non-U.S. plans for fiscal 2017, fiscal 2016 and fiscal 2015 is presented in the following table: 2017 2016 2015 Service cost $ 6,688 $ 5,520 $ 15,675 Interest cost 3,581 3,675 11,636 Expected return on plan assets (4,086 ) (3,764 ) (13,509 ) Amortization of prior service cost 14 — (229 ) Amortization of transition obligation (9 ) 17 18 Recognized actuarial loss 1,865 679 7,257 Subtotal $ 8,053 $ 6,127 $ 20,848 Curtailment impact — — (4,463 ) Settlement impact — 151 226,810 Net periodic pension cost $ 8,053 $ 6,278 $ 243,195 |
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 October 28, 2017 and October 29, 2016 is presented in the following table: 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year $ 129,711 $ 106,533 Service cost 6,688 5,520 Interest cost 3,581 3,675 Plan amendments 176 (142 ) Settlement — (632 ) Actuarial loss (2,615 ) 30,223 Benefits paid (2,663 ) (1,701 ) Exchange rate adjustment 4,638 (13,765 ) Benefit obligation at end of year $ 139,516 $ 129,711 Change in Plan Assets Fair value of plan assets at beginning of year $ 69,823 $ 70,365 Actual return on plan assets 5,420 9,002 Employer contributions 4,995 4,880 Settlements — (632 ) Benefits paid (2,663 ) (1,701 ) Exchange rate adjustment 2,041 (12,091 ) Fair value of plan assets at end of year $ 79,616 $ 69,823 Reconciliation of Funded Status Funded status $ (59,900 ) $ (59,888 ) Amounts Recognized in the Balance Sheet Current liabilities (733 ) (606 ) Non-current liabilities (59,167 ) (59,282 ) Net amount recognized $ (59,900 ) $ (59,888 ) 2017 2016 Reconciliation of Amounts Recognized in the Statement of Financial Position Initial net obligation $ (10 ) $ (24 ) Prior service credit (45 ) 148 Net loss (35,779 ) (39,647 ) Accumulated other comprehensive loss (35,834 ) (39,523 ) Accumulated contributions less than net periodic benefit cost (24,066 ) (20,365 ) Net amount recognized $ (59,900 ) $ (59,888 ) Changes Recognized in Other Comprehensive Income Changes in plan assets and benefit obligations recognized in other comprehensive income Prior service cost $ 176 $ (142 ) Net loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost) $ (3,949 ) $ 24,985 Effect of exchange rates on amounts included in accumulated other comprehensive income (loss) 1,952 (4,137 ) Amounts recognized as a component of net periodic benefit cost Amortization, settlement or curtailment recognition of net transition obligation (14 ) (17 ) Amortization or curtailment recognition of prior service credit (cost) 9 — Amortization or settlement recognition of net loss (1,865 ) (830 ) Total recognized in other comprehensive loss $ (3,691 ) $ 19,859 Total recognized in net periodic cost and other comprehensive loss $ 4,362 $ 26,137 Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year Initial net obligation $ (10 ) $ (14 ) Prior service credit (2 ) 10 Net loss (1,582 ) (1,808 ) Total $ (1,594 ) $ (1,812 ) |
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 October 28, 2017 and October 29, 2016 is presented in the following table: 2017 2016 Plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 139,516 $ 129,711 Fair value of plan assets $ 79,616 $ 69,823 Plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation $ 109,261 $ 98,244 Accumulated benefit obligation $ 103,470 $ 93,164 Fair value of plan assets $ 53,747 $ 45,948 |
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 well as the differences in the attributes of the participants. 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. Beginning October 29, 2016, the Company uses 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: 2017 2016 Discount rate 3.02 % 2.92 % Rate of increase in compensation levels 3.18 % 3.36 % Net annual periodic pension cost was determined using the following weighted average assumptions: 2017 2016 Discount rate 2.92 % 3.64 % Expected long-term return on plan assets 5.58 % 5.65 % Rate of increase in compensation levels 3.36 % 3.05 % |
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 28, 2017 and October 29, 2016 using the same three-level hierarchy described in Note 2j, Fair Value, of these Notes to Consolidated Financial Statements: October 28, 2017 October 29, 2016 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) $ — $ 1,676 $ — $ 1,676 $ — $ 4,681 $ — $ 4,681 Equities(1) 4,701 32,520 69 37,290 — 30,510 74 30,584 Fixed income securities(2) — 39,442 — 39,442 — 33,573 — 33,573 Cash and cash equivalents 1,208 — — 1,208 985 — — 985 Total assets measured at fair value $ 5,909 $ 73,638 $ 69 $ 79,616 $ 985 $ 68,764 $ 74 $ 69,823 _______________________________________ (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 2017 and fiscal 2016 . Equities Balance as of October 31, 2015 $ 77 Exchange rate adjustment (3 ) Balance as of October 29, 2016 $ 74 Purchases, sales, and settlements, net (420 ) Realized and unrealized return on plan assets 420 Exchange rate adjustment (5 ) Balance as of October 28, 2017 $ 69 |
Schedule of expected company contributions and estimated future benefit payments | Expected fiscal 2018 Company contributions and estimated future benefit payments are as follows: Expected Company Contributions 2018 $ 4,978 Expected Benefit Payments 2019 $ 1,958 2020 $ 2,111 2021 $ 2,079 2022 $ 2,280 2023 $ 2,936 2024 through 2027 $ 21,083 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
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 for fiscal 2017, fiscal 2016 and fiscal 2015 is as follows: 2017 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Income tax provision reconciliation: Tax at statutory rate: $ 289,970 $ 334,922 $ 283,540 Net foreign income subject to lower tax rate (385,189 ) (264,157 ) (198,061 ) State income taxes, net of federal benefit (8,801 ) (10,821 ) (4,425 ) Valuation allowance (7,778 ) 13,658 4,875 Federal research and development tax credits (16,475 ) (16,237 ) (8,232 ) Change in uncertain tax positions (51,088 ) 4,797 2,449 Amortization of purchased intangibles 159,466 35,641 38,973 Acquisition and integration costs 109,040 — — Other, net 12,081 (2,546 ) (5,883 ) Total income tax provision $ 101,226 $ 95,257 $ 113,236 |
Schedule of income before income tax domestic and foreign | For financial reporting purposes, income before income taxes for fiscal 2017, fiscal 2016 and fiscal 2015 includes the following components: 2017 2016 2015 Pretax income: Domestic $ 109,565 $ 2,642 $ 110,710 Foreign 718,920 954,279 699,404 Income before income taxes $ 828,485 $ 956,921 $ 810,114 |
Schedule of components of the provision for income taxes | The components of the provision for income taxes for fiscal 2017, fiscal 2016 and fiscal 2015 are as follows: 2017 2016 2015 Current: Federal tax $ 857,664 $ 27,790 $ 65,942 State 7,335 1,409 695 Foreign 62,096 57,934 98,813 Total current $ 927,095 $ 87,133 $ 165,450 Deferred: Federal $ (795,478 ) $ 325 $ (27,933 ) State (24,285 ) 2,820 541 Foreign (6,106 ) 4,979 (24,822 ) Total deferred $ (825,869 ) $ 8,124 $ (52,214 ) |
Schedule of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities for fiscal 2017 and fiscal 2016 are as follows: 2017 2016 Deferred tax assets: Inventory reserves $ 28,137 $ 22,527 Deferred income on shipments to distributors 62,923 49,455 Reserves for compensation and benefits 84,096 48,062 Tax credit carryovers 68,317 68,669 Stock-based compensation 99,815 56,345 Depreciation 2,659 3,078 Net operating losses 11,158 8,225 Acquisition-related costs 3,384 13,336 Other 34,737 39,256 Total gross deferred tax assets 395,226 308,953 Valuation allowance (53,787 ) (67,094 ) Total deferred tax assets 341,439 241,859 Deferred tax liabilities: Depreciation (64,868 ) (59,218 ) Undistributed earnings of foreign subsidiaries (64,067 ) (60,986 ) Acquisition-related intangibles (1,851,818 ) (193,059 ) Other (3,047 ) (2,522 ) Total gross deferred tax liabilities (1,983,800 ) (315,785 ) Net deferred tax liabilities $ (1,642,361 ) $ (73,926 ) |
Schedule of changes in unrealized tax benefits | The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2015 through fiscal 2017 : Unrealized Tax Benefits 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 Additions for tax positions related to current year 1,742 Additions for tax positions related to acquisition 12,332 Reductions for tax positions related to prior years (43,186 ) Reductions due to lapse of applicable statute of limitations (1,566 ) Balance, October 28, 2017 $ 37,857 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis. The carrying amounts of the term loans approximate fair value. The term loans are classified as Level 2 measurements according to the fair value hierarchy. The fair values of the senior unsecured notes debt are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy. See Note 16, Debt , of these Notes to Consolidated Financial Statements for further discussion related outstanding debt. October 28, 2017 October 29, 2016 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value 3-Year term loan $ 1,950,000 1,950,000 — — 5-Year term loan 2,100,000 2,100,000 — — 2021 Notes, due December 2021 400,000 399,530 — — 2023 Notes, due June 2023 500,000 498,582 500,000 501,307 2023 Notes, due December 2023 550,000 554,411 — — 2025 Notes, due December 2025 850,000 884,861 850,000 901,523 2026 Notes, due December 2026 900,000 902,769 — — 2036 Notes, due December 2036 250,000 259,442 — — 2045 Notes, due December 2045 400,000 460,588 400,000 425,109 The Company’s debt consisted of the following as of October 28, 2017 and October 29, 2016 : October 28, 2017 October 29, 2016 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 3-Year term loan $ 1,650,000 $ 3,270 $ — $ — 5-Year term loan 2,100,000 4,727 — — 2021 Notes, due December 2021 400,000 3,756 — — 2023 Notes, due June 2023 500,000 3,434 500,000 4,047 2023 Notes, due December 2023 550,000 5,392 — — 2025 Notes, due December 2025 850,000 7,154 850,000 8,034 2026 Notes, due December 2026 900,000 11,655 — — 2036 Notes, due December 2036 250,000 3,983 — — 2045 Notes, due December 2045 400,000 5,545 400,000 5,742 Total Long-Term Debt $ 7,600,000 $ 48,916 $ 1,750,000 $ 17,823 3-Year term loan, current 300,000 — — — Total Current Debt $ 300,000 $ — $ — $ — Total Debt $ 7,900,000 $ 48,916 $ 1,750,000 $ 17,823 |
Supplementary Financial Infor40
Supplementary Financial Information (Tables) | 12 Months Ended |
Oct. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 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 2017 and fiscal 2016 include results of operations of Linear from March 10, 2017: 4Q17 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16 Revenue 1,541,170 1,433,902 1,147,982 984,449 1,003,623 869,591 778,766 769,429 Cost of sales 535,145 667,278 507,539 335,945 336,936 297,301 267,863 292,136 Gross margin 1,006,025 766,624 640,443 648,504 666,687 572,290 510,903 477,293 % of Revenue 65.3 % 53.5 % 55.8 % 65.9 % 66.4 % 65.8 % 65.6 % 62.0 % Research and development 273,746 275,670 235,232 183,954 172,926 163,227 160,235 157,428 Selling, marketing, general and administrative 185,721 183,980 190,686 130,659 118,881 122,909 112,186 107,462 Special charges — — — 49,463 — — 13,684 — Other operating expense — — — — — — — — Amortization of intangibles 98,348 112,153 68,690 18,160 17,899 17,447 17,419 17,358 Total operating expenses 557,815 571,803 494,608 382,236 309,706 303,583 303,524 282,248 Operating income 448,210 194,821 145,835 266,268 356,981 268,707 207,379 195,045 % of Revenue 29 % 14 % 13 % 27 % 36 % 31 % 27 % 25 % Nonoperating (income) expenses: Interest expense (a) 63,517 73,073 71,636 42,614 38,764 18,476 18,455 13,062 Interest income (2,388 ) (5,524 ) (12,421 ) (10,000 ) (7,114 ) (5,665 ) (5,243 ) (3,199 ) Other, net 5,417 474 (94 ) 345 1,897 (504 ) (743 ) 3,005 Total nonoperating (income) expense 66,546 68,023 59,121 32,959 33,547 12,307 12,469 12,868 Income before income taxes 381,664 126,798 86,714 233,309 323,434 256,400 194,910 182,177 % of Revenue 25 % 9 % 8 % 24 % 32 % 29 % 25 % 24 % Provision for income taxes (b) 34,014 57,882 (6,850 ) 16,180 27,277 25,970 24,337 17,673 Net income 347,650 68,916 93,564 217,129 296,157 230,430 170,573 164,504 % of Revenue 23 % 5 % 8 % 22 % 30 % 26 % 22 % 21 % Basic earnings per common share 0.94 0.18 0.27 0.70 0.96 0.75 0.55 0.53 Diluted earnings per common share 0.93 0.18 0.27 0.69 0.95 0.74 0.55 0.52 Shares used to compute earnings per share (in thousands): Basic 368,043 367,315 341,316 308,786 307,854 307,135 308,790 311,166 Diluted 372,053 371,159 345,654 313,076 311,633 310,558 312,250 314,793 Dividends declared per share 0.45 0.45 0.45 0.42 0.42 0.42 0.42 0.40 a) Interest expense in fiscal 2017 and the fourth quarter of fiscal 2016 includes interest and fees associated with financing commitments entered into in connection with the Acquisition. b) Provision for income taxes in the second quarter of fiscal 2017 included a tax benefit of $15.0 million for the release of a state tax credit valuation allowance as a result of the Acquisition. Provision for income taxes in the third quarter of fiscal 2017 included approximately $98.2 million of tax expense incurred during the quarter as part of the post-Acquisition integration, partially offset by a tax benefit of $50.5 million related to the reduction of reserves and related interest resulting from the U.S. Tax Court’s favorable ruling, as well as lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Principles of Consolidation (Details) $ in Thousands | Mar. 10, 2017USD ($) | Oct. 28, 2017weeks | Oct. 29, 2016weeks | Oct. 30, 2010weeks |
Accounting Policies [Line Items] | ||||
Fiscal Year Term | weeks | 52 | 52 | 53 | |
Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Fiscal Year Term | weeks | 52 | |||
Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Fiscal Year Term | weeks | 53 | |||
Linear Technology Corporation [Member] | ||||
Accounting Policies [Line Items] | ||||
Consideration transferred | $ 15,756,656 | |||
Total estimated purchase consideration | 11,092,047 | |||
Equity interests issued and issuable | 4,593,655 | |||
Replacement of outstanding equity award | $ 70,954 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Short-Term Investments (Details) $ in Thousands | Oct. 28, 2017USD ($)Investment_Securities | Oct. 29, 2016USD ($)Investment_Securities | Oct. 31, 2015USD ($) | Nov. 01, 2014USD ($) |
Unrealized gains and losses on available-for-sale securities classified as short-term investments | ||||
Unrealized gains on securities classified as short-term investments | $ 2 | $ 846 | ||
Unrealized losses on securities classified as short-term investments | (2) | (294) | ||
Net unrealized gain on securities classified as short-term investments | $ 0 | $ 552 | ||
Total number of investment securities | Investment_Securities | 18 | 100 | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | Investment_Securities | 8 | 25 | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 143,900 | $ 729,600 | ||
Cash and cash equivalents: | ||||
Cash | 226,160 | 67,877 | ||
Total cash and cash equivalents | 1,047,838 | 921,132 | $ 884,353 | $ 569,233 |
Short-term investments: | ||||
Available-for-sale | 0 | 3,110,011 | ||
Held-to-maturity (less than one year to maturity) | 0 | 24,650 | ||
Total short-term investments | 0 | 3,134,661 | ||
Available-for-sale [Member] | ||||
Cash and cash equivalents: | ||||
Cash equivalents | 751,678 | 693,255 | ||
Held-to-maturity [Member] | ||||
Cash and cash equivalents: | ||||
Cash equivalents | $ 70,000 | $ 160,000 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Supplemental Cash Flow Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Cash paid during the fiscal year for: | |||
Income taxes | $ 868,492 | $ 77,918 | $ 142,931 |
Interest | $ 183,117 | $ 41,701 | $ 25,625 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 | |
Inventories | |||
Raw materials | $ 35,436 | $ 20,263 | |
Work in process | 376,476 | 232,196 | |
Finished goods | 138,904 | 124,096 | |
Total inventories | [1] | $ 550,816 | $ 376,555 |
[1] | Includes $5,373 and $2,486 related to stock-based compensation at October 28, 2017 and October 29, 2016, respectively. |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Useful lives of property, plant and equipment | |||
Depreciation expense | $ 194,666 | $ 134,540 | $ 130,147 |
Buildings & building equipment [Member] | |||
Useful lives of property, plant and equipment | |||
Maximum | 30 years | ||
Machinery & equipment [Member] | |||
Useful lives of property, plant and equipment | |||
Property, plant and equipment, useful life, minimum | 3 years | ||
Property, plant and equipment, useful life, maximum | 10 years | ||
Office equipment [Member] | |||
Useful lives of property, plant and equipment | |||
Property, plant and equipment, useful life, minimum | 3 years | ||
Property, plant and equipment, useful life, maximum | 10 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Changes in goodwill | ||
Balance at beginning of year | $ 1,679,116 | $ 1,636,526 |
Foreign currency translation adjustment | 1,869 | (1,456) |
Balance at end of year | 12,217,455 | 1,679,116 |
Linear Technology Corporation [Member] | ||
Changes in goodwill | ||
Acquisition | 10,532,272 | 0 |
Other Acquisitions [Member] | ||
Changes in goodwill | ||
Acquisition | $ 4,198 | $ 44,046 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 558,395 | $ 168,997 | |
Gross Carrying Amount | 5,877,820 | 718,365 | |
Amortization of intangibles | $ 389,393 | 75,250 | $ 92,093 |
Weighted average useful lives (in years) | 5 years 1 month | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2,018 | $ 565,885 | ||
2,019 | 562,696 | ||
2,020 | 562,457 | ||
2,021 | 562,037 | ||
2,022 | 559,107 | ||
IPR&D [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 24,334 | 29,675 | |
Customer Relationships [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,683,461 | 649,159 | |
Accumulated Amortization | 449,369 | 158,979 | |
Technology-based [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,097,025 | 38,731 | |
Accumulated Amortization | 101,920 | 9,958 | |
Trade Names [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 72,800 | 600 | |
Accumulated Amortization | 6,906 | 60 | |
Backlog [Member] | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 200 | 200 | |
Accumulated Amortization | $ 200 | $ 0 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Derivatives Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Derivative [Line Items] | ||
Contracts period | one year or less | |
Fair value hedge liabilities | $ 1,800 | |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 500 | |
Derivative effectiveness description | no material ineffectiveness | no material ineffectiveness |
Derivative ineffectiveness | $ 0 | $ 0 |
Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount of cash flow hedges | 194,300 | 179,500 |
Derivative, notional amount | $ 100,400 | $ 46,200 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Derivative Instruments Designated as Cash Flow Hedges (Details) - Forward foreign currency exchange contracts [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Effect of derivative instruments designated as cash flow hedges | ||
Balance sheet location, forward foreign currency exchange contracts | Prepaid expenses and other current assets | |
Forward foreign currency exchange contracts, asset | $ 257 | $ 0 |
Accrued Liabilities [Member] | ||
Effect of derivative instruments designated as cash flow hedges | ||
Balance sheet location, forward foreign currency exchange contracts | Accrued liabilities | |
Forward foreign currency exchange contracts, liability | $ 0 | $ 5,260 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Derivative Fair Value of Hedging Instruments (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Accounting Policies [Abstract] | ||
Gross amount of recognized liabilities | $ (5,039) | $ (5,788) |
Gross amounts of recognized assets offset in the consolidated balance sheet | 3,512 | 557 |
Net liabilities presented in the consolidated balance sheet | $ (1,527) | $ (5,231) |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Fair Value Textual (Details) - USD ($) $ in Millions | Oct. 28, 2017 | Oct. 29, 2016 |
Accounting Policies [Abstract] | ||
Cash and held to maturity investments | $ 296.2 | $ 252.5 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Fair Value Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Long-term debt | ||
Forward foreign currency exchange contracts | $ 0 | |
Recurring [Member] | ||
Other Assets | ||
Deferred compensation investments | $ 33,510 | 26,916 |
Interest rate derivative assets, at fair value | 2,966 | |
Total assets measured at fair value | 788,154 | 3,830,182 |
Long-term debt | ||
Contingent consideration | 7,891 | 7,555 |
Forward foreign currency exchange contracts | 1,527 | 5,231 |
Total liabilities measured at fair value | 9,418 | 12,786 |
Available-for-sale, amortized cost basis | 238,900 | 3,500,000 |
Recurring [Member] | Institutional Money Market Funds [Member] | ||
Available-for-sale: | ||
Cash equivalents | 512,882 | 277,595 |
Recurring [Member] | Corporate Obligations [Member] | ||
Available-for-sale: | ||
Cash equivalents | 238,796 | 415,660 |
Recurring [Member] | Corporate Obligations [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||
Available-for-sale: | ||
Short-term investments | 2,518,148 | |
Recurring [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 | |
Recurring [Member] | Floating rate notes [Member] | Short-term Investments [Member] | One year or less to maturity [Member] | ||
Available-for-sale: | ||
Short-term investments | 561,874 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Other Assets | ||
Deferred compensation investments | 33,510 | 26,916 |
Interest rate derivative assets, at fair value | 0 | |
Total assets measured at fair value | 546,392 | 304,511 |
Long-term debt | ||
Contingent consideration | 0 | 0 |
Forward foreign currency exchange contracts | 0 | |
Total liabilities measured at fair value | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Institutional Money Market Funds [Member] | ||
Available-for-sale: | ||
Cash equivalents | 512,882 | 277,595 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Obligations [Member] | ||
Available-for-sale: | ||
Cash equivalents | 0 | 0 |
Recurring [Member] | 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 | |
Recurring [Member] | 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 | |
Recurring [Member] | 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 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Other Assets | ||
Deferred compensation investments | 0 | 0 |
Interest rate derivative assets, at fair value | 2,966 | |
Total assets measured at fair value | 241,762 | 3,525,671 |
Long-term debt | ||
Contingent consideration | 0 | 0 |
Forward foreign currency exchange contracts | 1,527 | 5,231 |
Total liabilities measured at fair value | 1,527 | 5,231 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Institutional Money Market Funds [Member] | ||
Available-for-sale: | ||
Cash equivalents | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | ||
Available-for-sale: | ||
Cash equivalents | 238,796 | 415,660 |
Recurring [Member] | 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 | |
Recurring [Member] | 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 | |
Recurring [Member] | 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 | |
Recurring [Member] | Unobservable Inputs (Level 3) [Member] | ||
Other Assets | ||
Deferred compensation investments | 0 | 0 |
Interest rate derivative assets, at fair value | 0 | |
Total assets measured at fair value | 0 | 0 |
Long-term debt | ||
Contingent consideration | 7,891 | 7,555 |
Forward foreign currency exchange contracts | 0 | |
Total liabilities measured at fair value | 7,891 | 7,555 |
Recurring [Member] | Unobservable Inputs (Level 3) [Member] | Institutional Money Market Funds [Member] | ||
Available-for-sale: | ||
Cash equivalents | 0 | 0 |
Recurring [Member] | Unobservable Inputs (Level 3) [Member] | Corporate Obligations [Member] | ||
Available-for-sale: | ||
Cash equivalents | $ 0 | 0 |
Recurring [Member] | 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 | |
Recurring [Member] | 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 | |
Recurring [Member] | 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 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Fair Value Contingent Consideration Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Oct. 28, 2017USD ($) | |
Fair Value Measurement Of Contingent Consideration Encompasses Following Significant Unobservable Inputs Table [Abstract] | |
Potential 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 |
Probability of achievement | 90.00% |
Maximum [Member] | |
Fair Value Measurement Of Contingent Consideration Encompasses Following Significant Unobservable Inputs Table [Abstract] | |
Discount rate | 2.00% |
Timing of cash flow | 2 years |
Probability of achievement | 100.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Fair Value Change in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Accounting Policies [Abstract] | ||
Balance Beginning | $ 7,555 | $ 2,843 |
Contingent consideration liability recorded | 2,000 | 7,500 |
Payment made | (2,000) | (1,489) |
Fair value adjustment | 336 | (888) |
Effect of foreign currency | (411) | |
Balance End | $ 7,891 | $ 7,555 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Fair Value Outstanding Debt (Details) - USD ($) | Oct. 28, 2017 | Oct. 29, 2016 |
Debt Instrument [Line Items] | ||
Principal | $ 7,900,000,000 | $ 1,750,000,000 |
Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 1,950,000,000 | 0 |
Fair Value | 1,950,000,000 | 0 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 7,600,000,000 | 1,750,000,000 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 1,650,000,000 | 0 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 2,100,000,000 | 0 |
Fair Value | 2,100,000,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 2.500% Unsecured Notes Due December 5, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 0 |
Fair Value | 399,530,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | 2.875% Senior unsecured notes due June 1, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 500,000,000 | 500,000,000 |
Fair Value | 498,582,000 | 501,307,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.125% Unsecured Notes Due December 5, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 550,000,000 | 0 |
Fair Value | 554,411,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | 2025 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 850,000,000 | 850,000,000 |
Fair Value | 884,861,000 | 901,523,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.500% Unsecured Notes Due December 5, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 900,000,000 | 0 |
Fair Value | 902,769,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 4.500% Unsecured Notes Dues December 5, 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 250,000,000 | 0 |
Fair Value | 259,442,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | 2045 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 400,000,000 |
Fair Value | $ 460,588,000 | $ 425,109,000 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Concentrations of Risk and Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Accounting Policies [Abstract] | |||
Percentage of revenue to individual customer | 14.00% | 12.00% | 13.00% |
Deferred income on shipments to distributors, gross | $ 589.5 | $ 432.3 | |
Deferred income on shipments to distributors, cost of sales | $ 115.5 | $ 80.8 | |
Standard product warranty term | 12 months |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 5,165,618 | ||
Other comprehensive income before reclassifications | 6,131 | ||
Amounts reclassified out of other comprehensive income | 7,395 | ||
Tax effects | (1,071) | ||
Other comprehensive income (loss) | 12,455 | $ (22,963) | $ 117,675 |
Total accumulated other comprehensive loss, end | (61,359) | (73,814) | |
Ending Balance | 10,161,540 | 5,165,618 | |
Accumulated Translation Adjustment [Member] | |||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (24,063) | ||
Other comprehensive income before reclassifications | 16 | ||
Amounts reclassified out of other comprehensive income | 0 | ||
Tax effects | 1,556 | ||
Other comprehensive income (loss) | 1,572 | ||
Ending Balance | (22,491) | (24,063) | |
Accumulated Net Investment Gain Attributable to Parent [Member] | |||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 800 | ||
Other comprehensive income before reclassifications | (844) | ||
Amounts reclassified out of other comprehensive income | 0 | ||
Tax effects | 47 | ||
Other comprehensive income (loss) | (797) | ||
Ending Balance | 3 | 800 | |
Accumulated Net Investment Loss Attributable to Parent [Member] | |||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (281) | ||
Other comprehensive income before reclassifications | 292 | ||
Amounts reclassified out of other comprehensive income | 0 | ||
Tax effects | (12) | ||
Other comprehensive income (loss) | 280 | ||
Ending Balance | (1) | (281) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (18,884) | ||
Other comprehensive income before reclassifications | 4,726 | ||
Amounts reclassified out of other comprehensive income | 5,525 | ||
Tax effects | (2,246) | ||
Other comprehensive income (loss) | 8,005 | ||
Ending Balance | (10,879) | (18,884) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (31,386) | ||
Other comprehensive income before reclassifications | 1,941 | ||
Amounts reclassified out of other comprehensive income | 1,870 | 847 | |
Tax effects | (416) | ||
Other comprehensive income (loss) | 3,395 | ||
Ending Balance | (27,991) | (31,386) | |
AOCI Attributable to Parent [Member] | |||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (73,814) | (50,851) | (168,526) |
Ending Balance | $ (61,359) | $ (73,814) | $ (50,851) |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income - Reclassified Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Cost of sales | $ 535,145 | $ 667,278 | $ 507,539 | $ 335,945 | $ 336,936 | $ 297,301 | $ 267,863 | $ 292,136 | $ 2,045,907 | [1] | $ 1,194,236 | [1] | $ 1,175,830 | [1] | ||||||||
Research and development | 273,746 | 275,670 | 235,232 | 183,954 | 172,926 | 163,227 | 160,235 | 157,428 | 968,602 | [1] | 653,816 | [1] | 637,459 | [1] | ||||||||
Selling, marketing, general and administrative | 185,721 | 183,980 | 190,686 | 130,659 | 118,881 | 122,909 | 112,186 | 107,462 | 691,046 | [1] | 461,438 | [1] | 478,972 | [1] | ||||||||
Interest expense | 63,517 | [2] | 73,073 | [2] | 71,636 | [2] | 42,614 | [2] | 38,764 | [2] | 18,476 | [2] | 18,455 | [2] | 13,062 | [2] | 250,840 | 88,757 | 27,030 | |||
Total before tax | 381,664 | 126,798 | 86,714 | 233,309 | 323,434 | 256,400 | 194,910 | 182,177 | 828,485 | 956,921 | 810,114 | |||||||||||
Tax | $ (34,014) | [3] | $ (57,882) | [3] | $ 6,850 | [3] | $ (16,180) | [3] | $ (27,277) | [3] | $ (25,970) | [3] | $ (24,337) | [3] | $ (17,673) | [3] | (101,226) | (95,257) | (113,236) | |||
Net Income | 727,259 | 861,664 | $ 696,878 | |||||||||||||||||||
Total before tax | 7,395 | |||||||||||||||||||||
Net of tax | (5,669) | (4,056) | ||||||||||||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Total before tax | 5,525 | |||||||||||||||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Total before tax | 1,870 | 847 | ||||||||||||||||||||
Tax | (400) | (228) | ||||||||||||||||||||
Net of tax | (1,470) | (619) | ||||||||||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Transition Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Total before tax | 14 | 17 | ||||||||||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Total before tax | (9) | 0 | ||||||||||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Total before tax | 1,865 | 830 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Net Income | 4,199 | 3,437 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Exchange Contract [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Cost of sales | 2,188 | 2,059 | ||||||||||||||||||||
Research and development | 330 | 1,038 | ||||||||||||||||||||
Selling, marketing, general and administrative | 927 | (579) | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Contract [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||||||||
Interest expense | 2,080 | 1,969 | ||||||||||||||||||||
Total before tax | 5,525 | 4,487 | ||||||||||||||||||||
Tax | $ (1,326) | $ (1,050) | ||||||||||||||||||||
[1] | Includes stock-based compensation expense as follows: | |||||||||||||||||||||
[2] | a) Interest expense in fiscal 2017 and the fourth quarter of fiscal 2016 includes interest and fees associated with financing commitments entered into in connection with the Acquisition. | |||||||||||||||||||||
[3] | b) Provision for income taxes in the second quarter of fiscal 2017 included a tax benefit of $15.0 million for the release of a state tax credit valuation allowance as a result of the Acquisition. Provision for income taxes in the third quarter of fiscal 2017 included approximately $98.2 million of tax expense incurred during the quarter as part of the post-Acquisition integration, partially offset by a tax benefit of $50.5 million related to the reduction of reserves and related interest resulting from the U.S. Tax Court’s favorable ruling, as well as lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. |
Summary of Significant Accoun59
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 12.6 | $ 6.1 | $ 4.7 |
Summary of Significant Accoun60
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. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Earnings per share | |||||||||||
Net Income | $ 727,259 | $ 861,664 | $ 696,878 | ||||||||
Undistributed earnings (loss) allocated to participating securities, basic | 2,243 | 0 | 0 | ||||||||
Net income (loss) available to common stockholders, basic | $ 725,016 | $ 861,664 | $ 696,878 | ||||||||
Basic shares: | |||||||||||
Weighted average shares outstanding (in shares) | 368,043 | 367,315 | 341,316 | 308,786 | 307,854 | 307,135 | 308,790 | 311,166 | 346,371 | 308,736 | 312,660 |
Basic earnings per common share (in dollars per share) | $ 2.09 | $ 2.79 | $ 2.23 | ||||||||
Diluted shares: | |||||||||||
Weighted average shares outstanding (in shares) | 368,043 | 367,315 | 341,316 | 308,786 | 307,854 | 307,135 | 308,790 | 311,166 | 346,371 | 308,736 | 312,660 |
Assumed exercise of common stock equivalents (in shares) | 4,113 | 3,572 | 4,212 | ||||||||
Weighted average common and common equivalent shares | 372,053 | 371,159 | 345,654 | 313,076 | 311,633 | 310,558 | 312,250 | 314,793 | 350,484 | 312,308 | 316,872 |
Earnings per share - Diluted | |||||||||||
Income from continuing operations, net of tax (in dollars per share) | $ 2.07 | $ 2.76 | $ 2.20 | ||||||||
Outstanding stock options (in share) | 1,527 | 3,077 | 2,089 |
Summary of Significant Accoun61
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended |
Oct. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Market based restricted stock minimum issued upon vesting | 0.00% |
Market based restricted stock maximum issued upon vesting | 200.00% |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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% |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation awards vesting period (years) | 3 years |
Percentage of options exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 20.00% |
Stock-Based Compensation and 62
Stock-Based Compensation and Shareholders' Equity - Textual (Details) - USD ($) | 12 Months Ended | |||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | Oct. 28, 2006 | |
Stock-Based Compensation (Textuals) [Abstract] | ||||
Maximum contractual term of all option | 10 years | |||
Total number of common shares available for future grantUnits/Awards granted (in shares) | 14,700,000 | |||
Shares reserved for future issuance under 2006 plan | 29,700,000 | |||
Units/Awards granted (USD per share) | $ 79.76 | |||
Minimum maturity of traded options used to estimate volatility | 1 year | |||
Annual forfeiture rate | 4.70% | |||
Total intrinsic value of options exercised | $ 144,600,000 | $ 46,600,000 | $ 99,200,000 | |
Proceeds (cash) received from exercise of options | 133,300,000 | 61,500,000 | 122,600,000 | |
Total unrecognized compensation cost related to unvested share-based awards, before tax consideration | $ 375,200,000 | |||
Weighted-average period for recognition of compensation cost in years | 1 year 11 months | |||
Total grant-date fair value of vested stock options | $ 114,800,000 | $ 62,800,000 | $ 65,600,000 | |
Preferred stock, shares authorized (in shares) | 471,934 | 471,934 | ||
Preferred stock, par value (USD per share) | $ 1 | $ 1 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Preferred stock, shares issued (in share) | 0 | |||
Employee Stock Option [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Percentage of awards exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 20.00% | |||
Stock-based compensation awards vesting period (years) | 5 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Percentage of awards exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 20.00% | |||
Stock-based compensation awards vesting period (years) | 3 years | |||
2006 Stock Incentive Plan [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Maximum common stock granted (in shares) | 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 | $ 6,200,000,000 | |||
Repurchased common stock, shares (in shares) | 147,000,000 | |||
Repurchased common stock, value | $ 5,400,000,000 | |||
Repurchase of common stock | $ 792,500,000 | |||
Linear Technology Corporation [Member] | ||||
Stock-Based Compensation (Textuals) [Abstract] | ||||
Number of share issued (shares) | 2,800,000 | |||
Units/Awards granted (USD per share) | $ 82.20 |
Stock-Based Compensation and 63
Stock-Based Compensation and Shareholders' Equity - Stock Option Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Stock Options | |||
Options granted (in thousands) | 1,480 | 1,814 | 1,954 |
Weighted-average exercise price | $ 82.99 | $ 55.19 | $ 57.20 |
Weighted-average grant-date fair value | $ 17.12 | $ 12.67 | $ 10.38 |
Assumptions: | |||
Weighted-average expected volatility | 26.40% | 34.00% | 25.90% |
Weighted-average expected term (in years) | 5 years 37 days | 5 years 37 days | 5 years 110 days |
Weighted-average risk-free interest rate | 2.10% | 1.40% | 1.60% |
Weighted-average expected dividend yield | 2.20% | 3.00% | 2.80% |
Market-based Restricted Stock Units | |||
Units granted (in thousands) | $ 59 | $ 102 | $ 75 |
Grant-date fair value | $ 94.25 | $ 58.95 | $ 55.67 |
Historical stock price volatility | 26.00% | 25.10% | 20.00% |
Risk-free interest rate | 1.60% | 1.10% | 1.10% |
Expected dividend yield | 2.20% | 3.00% | 2.80% |
Stock-Based Compensation and 64
Stock-Based Compensation and Shareholders' Equity - Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Options Outstanding (in shares) | |||
Options outstanding at October 29, 2016 (in shares) | 11,704 | ||
Options granted (in shares) | 1,480 | 1,814 | 1,954 |
Options exercised (in shares) | (3,470) | ||
Options forfeited (in shares) | (360) | ||
Options expired (in shares) | (7) | ||
Options outstanding at October 28, 2017 (in shares) | 9,347 | 11,704 | |
Options exercisable at October 28, 2017 (in shares) | 4,907 | ||
Options vested or expected to vest at October 28, 2017 (in shares) | 9,011 | ||
Weighted-Average Exercise Price Per Share (USD per share) | |||
Options outstanding at October 29, 2016 (USD per share) | $ 44.43 | ||
Options granted (USD per share) | 82.99 | ||
Options exercised (USD per share) | 38.60 | ||
Options forfeited (USD per share) | 55.56 | ||
Options expired (USD per share) | 34.09 | ||
Options outstanding at October 28, 2017 (USD per share) | 52.27 | $ 44.43 | |
Options exercisable at October 28, 2017 (USD per share) | 42.09 | ||
Options vested or expected to vest at October 28, 2017 (USD per share) | $ 51.69 | ||
Options outstanding, weighted-average remaining contractual term in years | 6 years 73 days | ||
Options exercisable, weighted-average remaining contractual term in years | 4 years 255 days | ||
Options vested or expected to vest, weighted-average remaining contractual term in years | 6 years 73 days | ||
Options outstanding, aggregate intrinsic value | $ 363,972 | ||
Options exercisable, aggregate intrinsic value | 240,991 | ||
Options vested or expected to vest, aggregate intrinsic value | $ 356,098 |
Stock-Based Compensation and 65
Stock-Based Compensation and Shareholders' Equity - Restricted Stock Unit Award Activity (Details) shares in Thousands | 12 Months Ended |
Oct. 28, 2017$ / sharesshares | |
Restricted Stock Units Outstanding (in shares) | |
Restricted stock units/awards outstanding at October 29, 2016 (in shares) | shares | 2,690 |
Units/Awards granted (in shares) | shares | 4,809 |
Restrictions lapsed (in shares) | shares | (1,580) |
Forfeited (in shares) | shares | (239) |
Restricted stock units/awards outstanding at October 28, 2017 (in shares) | shares | 5,680 |
Weighted Average Grant-Date Fair Value Per Share (USD per share) | |
Restricted stock units/awards outstanding at October 29, 2016 (USD per share) | $ / shares | $ 50.11 |
Units/Awards granted (USD per share) | $ / shares | 79.76 |
Restrictions lapsed (USD per share) | $ / shares | 60.02 |
Forfeited (USD per share) | $ / shares | 64.01 |
Restricted stock units/awards outstanding at October 28, 2017 (USD per share) | $ / shares | $ 71.88 |
Industry, Segment and Geograp66
Industry, Segment and Geographic Information - Textual (Details) | 12 Months Ended |
Oct. 28, 2017segment | |
Industry, Segment and Geographic Information (Textuals) [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 8 |
Industry, Segment and Geograp67
Industry, Segment and Geographic Information - Revenue Trends by End Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Revenue Trends | |||||||||||
Revenue | $ 1,541,170 | $ 1,433,902 | $ 1,147,982 | $ 984,449 | $ 1,003,623 | $ 869,591 | $ 778,766 | $ 769,429 | $ 5,107,503 | $ 3,421,409 | $ 3,435,092 |
% of Total Product Revenue | 100.00% | 100.00% | 100.00% | ||||||||
Industrial [Member] | |||||||||||
Revenue Trends | |||||||||||
Revenue | $ 2,361,549 | $ 1,497,070 | $ 1,495,887 | ||||||||
% of Total Product Revenue | 46.00% | 44.00% | 44.00% | ||||||||
Automotive [Member] | |||||||||||
Revenue Trends | |||||||||||
Revenue | $ 782,961 | $ 541,774 | $ 526,493 | ||||||||
% of Total Product Revenue | 15.00% | 16.00% | 15.00% | ||||||||
Consumer [Member] | |||||||||||
Revenue Trends | |||||||||||
Revenue | $ 1,047,606 | $ 687,697 | $ 727,585 | ||||||||
% of Total Product Revenue | 21.00% | 20.00% | 21.00% | ||||||||
Communications [Member] | |||||||||||
Revenue Trends | |||||||||||
Revenue | $ 915,387 | $ 694,868 | $ 685,127 | ||||||||
% of Total Product Revenue | 18.00% | 20.00% | 20.00% |
Industry, Segment and Geograp68
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. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 1,541,170 | $ 1,433,902 | $ 1,147,982 | $ 984,449 | $ 1,003,623 | $ 869,591 | $ 778,766 | $ 769,429 | $ 5,107,503 | $ 3,421,409 | $ 3,435,092 |
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 1,107,304 | 636,116 | 1,107,304 | 636,116 | 644,110 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,999,041 | 1,299,629 | 1,325,279 | ||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 504,968 | 236,625 | 504,968 | 236,625 | 253,417 | ||||||
Rest of North and South America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 103,077 | 95,957 | 97,189 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,211,435 | 924,849 | 939,230 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 506,114 | 291,649 | 319,569 | ||||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 842,532 | 575,690 | 511,365 | ||||||||
Rest of Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 445,304 | 233,635 | 242,460 | ||||||||
Non-US [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 3,108,462 | 2,121,780 | 2,109,813 | ||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 602,336 | 399,491 | 602,336 | 399,491 | 390,693 | ||||||
Irish [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 188,728 | 174,952 | 188,728 | 174,952 | 173,703 | ||||||
Philippines [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 228,629 | 194,587 | 228,629 | 194,587 | 195,662 | ||||||
SINGAPORE | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 77,015 | 0 | 77,015 | 0 | 0 | ||||||
MALAYSIA | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | 71,756 | 0 | 71,756 | 0 | 0 | ||||||
All Other Countries [Member] | |||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||
Total property, plant and equipment | $ 36,208 | $ 29,952 | $ 36,208 | $ 29,952 | $ 21,328 |
Special Charges - Summary of Co
Special Charges - Summary of Company's Special Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Summary of the Company's special charges, Income Statement | |||||||||||
Special charges | $ 0 | $ 0 | $ 0 | $ 49,463 | $ 0 | $ 0 | $ 13,684 | $ 0 | $ 49,463 | $ 13,684 | $ 0 |
Reduction of Operating Costs [Member] | |||||||||||
Summary of the Company's special charges, Income Statement | |||||||||||
Special charges | 8,126 | 13,684 | |||||||||
Early Retirement [Member] | |||||||||||
Summary of the Company's special charges, Income Statement | |||||||||||
Special charges | $ 41,337 | $ 0 |
Special Charges - Restructuring
Special Charges - Restructuring Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance | $ 12,374 | $ 12,374 | |||||||||
Special charges | $ 0 | $ 0 | $ 0 | 49,463 | $ 0 | $ 0 | $ 13,684 | $ 0 | 49,463 | $ 13,684 | $ 0 |
Ending balance | 37,348 | 12,374 | 37,348 | 12,374 | |||||||
Reduction of Operating Costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance | 12,374 | 5,877 | 12,374 | 5,877 | 40,503 | ||||||
Special charges | 8,126 | 13,684 | |||||||||
Severance payments | (15,764) | (7,184) | (33,220) | ||||||||
Facility closure costs | (459) | ||||||||||
Non-cash impairment charge | (433) | ||||||||||
Effect of foreign currency on accrual | 401 | (3) | (514) | ||||||||
Ending balance | 5,137 | 12,374 | 5,137 | 12,374 | 5,877 | ||||||
Early Retirement [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Special charges | 41,337 | 0 | |||||||||
Severance payments | (9,126) | 0 | 0 | ||||||||
Facility closure costs | 0 | ||||||||||
Non-cash impairment charge | 0 | ||||||||||
Effect of foreign currency on accrual | 0 | 0 | 0 | ||||||||
Ending balance | $ 32,211 | $ 0 | $ 32,211 | $ 0 | $ 0 |
Special Charges - Textual (Deta
Special Charges - Textual (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 28, 2017USD ($) | Jul. 29, 2017USD ($) | Apr. 29, 2017USD ($) | Jan. 28, 2017USD ($) | Oct. 29, 2016USD ($) | Jul. 30, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 30, 2016USD ($) | Oct. 28, 2017USD ($)employee | Oct. 29, 2016USD ($)employee | Oct. 31, 2015USD ($) | |
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ | $ 0 | $ 0 | $ 0 | $ 49,463 | $ 0 | $ 0 | $ 13,684 | $ 0 | $ 49,463 | $ 13,684 | $ 0 |
Number of employees still employed who are planned to be separated | employee | 23 | ||||||||||
Reduction of Operating Costs [Member] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ | $ 8,126 | 13,684 | |||||||||
Early Retirement [Member] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ | 41,337 | 0 | |||||||||
Reduction of Operating Costs 2016 [Domain] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ | $ 13,700 | ||||||||||
Number of manufacturing engineering and selling marketing general and adminstrative employees related to action | employee | 123 | ||||||||||
Workforce Reductions Plan 2017 [Member] | Reduction of Operating Costs [Member] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ | $ 8,100 | ||||||||||
Number of manufacturing engineering and selling marketing general and adminstrative employees related to action | employee | 177 | ||||||||||
Number of employees still employed who are planned to be separated | employee | 10 | ||||||||||
Workforce Reductions Plan 2017 [Member] | Early Retirement [Member] | |||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||
Special charges | $ | $ 41,300 | ||||||||||
Number of manufacturing engineering and selling marketing general and adminstrative employees related to action | employee | 225 | ||||||||||
Number of employees still employed who are planned to be separated | employee | 26 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 10, 2017$ / shares | Apr. 29, 2017USD ($) | Jul. 29, 2017USD ($) | Oct. 28, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Acquisition related costs | $ 69.5 | |||
Linear Technology Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue of acquiree since acquisition date | $ 913.2 | |||
Goodwill, purchase accounting adjustments, increase (decrease) | $ (52.1) | |||
Inventory adjustment, increase (decrease) | 23.8 | |||
Property, plant, and equipment, adjustment, increase (decrease) | 0.7 | |||
Intangibles, adjustment, increase (decrease) | 12.2 | |||
Accounts receivable, adjustment, increase (decrease) | (0.3) | |||
Liabilities, adjustment, increase (decrease) | 2.8 | |||
Deferred tax liabilities, adjustment, increase (decrease) | $ 18.4 | |||
Common Stock [Member] | Linear Technology Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, share price | $ / shares | $ 46 | |||
Interests issued conversion ratio per share | 0.2321 |
Acquisitions - Purchase Price C
Acquisitions - Purchase Price Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Mar. 10, 2017 | Oct. 28, 2017 |
Business Acquisition [Line Items] | ||
Share Price | $ 82.20 | |
Linear Technology Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 11,092,047 | |
Equity interests issued and issuable | 4,593,655 | |
Fair value of replacement share-based awards | 70,954 | |
Consideration transferred | 15,756,656 | |
Number of shares issued | 2.8 | |
Linear Technology Corporation [Member] | Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 11,100,000 | |
Number of shares issued | 55.9 | |
Linear Technology Corporation [Member] | Restricted Stock [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 16,300 |
Acquisitions - Allocation of As
Acquisitions - Allocation of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Mar. 10, 2017 | Oct. 29, 2016 | Oct. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 12,217,455 | $ 1,679,116 | $ 1,636,526 | |
Linear Technology Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,466,445 | |||
Marketable securities | 100,246 | |||
Accounts receivable | 146,282 | |||
Inventories | 461,698 | |||
Prepaid expenses and other assets | 14,782 | |||
Property, plant and equipment | 462,285 | |||
Intangible assets | 5,152,600 | |||
Goodwill | 10,532,272 | |||
Total assets | 18,336,610 | |||
Assumed liabilities | 188,454 | |||
Deferred tax liabilities | 2,391,500 | |||
Total estimated purchase consideration | 15,756,656 | |||
Acquired receivable | 146,500 | |||
Gross contractual amount | 148,200 | |||
Estimated uncollectible | $ 1,700 |
Acquisitions Intangible Assets
Acquisitions Intangible Assets Acquired (Details) - Linear Technology Corporation [Member] $ in Thousands | Mar. 10, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 5,152,600 |
Weighted Average Useful Lives (in Years) | 11 years |
Technology-Based Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 1,046,100 |
Weighted Average Useful Lives (in Years) | 8 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 72,200 |
Weighted Average Useful Lives (in Years) | 7 years |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 4,034,300 |
Weighted Average Useful Lives (in Years) | 12 years |
Acquisitions Pro Forma Financia
Acquisitions Pro Forma Financial Information (Details) - Linear Technology Corporation [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 5,702,841 | $ 4,842,658 |
Net income | $ 1,039,522 | $ 359,037 |
Basic net income per common share | $ 2.82 | $ 0.98 |
Diluted net income per common share | $ 2.78 | $ 0.97 |
Deferred Compensation Plan In77
Deferred Compensation Plan Investments (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Components of Investments under Deferred Compensation Plan | ||
Deferred compensation plan investments | $ 33,510 | $ 26,916 |
Money market funds [Member] | ||
Components of Investments under Deferred Compensation Plan | ||
Deferred compensation plan investments | 2,413 | 3,129 |
Mutual funds [Member] | ||
Components of Investments under Deferred Compensation Plan | ||
Deferred compensation plan investments | $ 31,097 | $ 23,787 |
Other Investments (Details)
Other Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other than temporary impairment | $ 5 | $ 6 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Accrued Liabilities | ||
Accrued compensation and benefits | $ 271,321 | $ 112,003 |
Accrued interest (Note 16) | 59,400 | 26,411 |
Special charges (Note 5) | 37,348 | 12,374 |
Other | 130,757 | 105,069 |
Total accrued liabilities | $ 498,826 | $ 255,857 |
Lease Commitments - Textuals (D
Lease Commitments - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
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 2057 | ||
Total rental expense | $ 58.8 | $ 58.5 | $ 51.8 |
Lease Commitments (Details)
Lease Commitments (Details) $ in Thousands | Oct. 28, 2017USD ($) |
Schedule of future minimum rental payments required under long-term operating leases | |
2,018 | $ 41,795 |
2,019 | 23,663 |
2,020 | 17,479 |
2,021 | 13,048 |
2,022 | 9,350 |
Later Years | 37,578 |
Total | $ 142,913 |
Retirement Plans - Textuals (De
Retirement Plans - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
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 | $ 35,800 | $ 28,300 | $ 26,300 | ||||||||
Total expense related to the defined benefit pension and other retirement plans for certain non-U.S. employees | 33,000 | 26,900 | 33,300 | ||||||||
Other selling, general and administrative expense | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | $ 223,672 |
Accumulated benefit obligation for non-U.S. pension plans | $ 116,700 | $ 106,400 | $ 116,700 | $ 106,400 |
Retirement Plans - Net Annual P
Retirement Plans - Net Annual Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Net periodic pension cost | |||
Service cost | $ 6,688 | $ 5,520 | $ 15,675 |
Interest cost | 3,581 | 3,675 | 11,636 |
Expected return on plan assets | (4,086) | (3,764) | (13,509) |
Amortization of prior service cost | 14 | 0 | (229) |
Amortization of transition obligation | (9) | 17 | 18 |
Recognized actuarial loss | 1,865 | 679 | 7,257 |
Curtailment impact | 0 | 0 | (4,463) |
Settlement impact | 0 | 151 | 226,810 |
Net periodic pension cost | $ 8,053 | $ 6,278 | $ 243,195 |
Retirement Plans - Obligation a
Retirement Plans - Obligation and Asset Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | $ 129,711 | $ 106,533 | |
Service cost | 6,688 | 5,520 | $ 15,675 |
Interest cost | 3,581 | 3,675 | 11,636 |
Plan amendments | 176 | (142) | |
Settlement | 0 | (632) | |
Actuarial loss | (2,615) | 30,223 | |
Benefits paid | (2,663) | (1,701) | |
Exchange rate adjustment | 4,638 | (13,765) | |
Benefit obligation at end of year | 139,516 | 129,711 | 106,533 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 69,823 | 70,365 | |
Actual return on plan assets | 5,420 | 9,002 | |
Employer contributions | 4,995 | 4,880 | |
Settlements | 0 | (632) | |
Benefits paid | (2,663) | (1,701) | |
Exchange rate adjustment | 2,041 | (12,091) | |
Fair value of plan assets at end of year | 79,616 | 69,823 | $ 70,365 |
Reconciliation of Funded Status | |||
Funded status | (59,900) | (59,888) | |
Amounts Recognized in the Balance Sheet | |||
Current liabilities | (733) | (606) | |
Non-current liabilities | (59,167) | (59,282) | |
Net amount recognized | (59,900) | (59,888) | |
Reconciliation of Amounts Recognized in the Statement of Financial Position | |||
Initial net obligation | (10) | (24) | |
Prior service credit | (45) | 148 | |
Net loss | (35,779) | (39,647) | |
Accumulated other comprehensive loss | (35,834) | (39,523) | |
Accumulated contributions less than net periodic benefit cost | (24,066) | (20,365) | |
Net amount recognized | (59,900) | (59,888) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Prior service cost | 176 | (142) | |
Net loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost) | (3,949) | 24,985 | |
Effect of exchange rates on amounts included in accumulated other comprehensive income (loss) | 1,952 | (4,137) | |
Amounts recognized as a component of net periodic benefit cost | |||
Amortization, settlement or curtailment recognition of net transition obligation | (14) | (17) | |
Amortization or curtailment recognition of prior service credit (cost) | 9 | 0 | |
Amortization or settlement recognition of net loss | (1,865) | (830) | |
Total recognized in other comprehensive loss | (3,691) | 19,859 | |
Total recognized in net periodic cost and other comprehensive loss | 4,362 | 26,137 | |
Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year | |||
Initial net obligation | (10) | (14) | |
Prior service credit | (2) | 10 | |
Net loss | (1,582) | (1,808) | |
Total | $ (1,594) | $ (1,812) |
Retirement Plans - Accumulated
Retirement Plans - Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | $ 139,516 | $ 129,711 |
Fair value of plan assets | 79,616 | 69,823 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 109,261 | 98,244 |
Accumulated benefit obligation | 103,470 | 93,164 |
Fair value of plan assets | $ 53,747 | $ 45,948 |
Retirement Plans - Weighted Ave
Retirement Plans - Weighted Average Assumptions (Details) | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Projected benefit obligation | ||
Discount rate | 3.02% | 2.92% |
Rate of increase in compensation levels | 3.18% | 3.36% |
Net annual periodic pension cost was determined using the following weighted average assumptions | ||
Discount rate | 2.92% | 3.64% |
Expected long-term return on plan assets | 5.58% | 5.65% |
Rate of increase in compensation levels | 3.36% | 3.05% |
Retirement Plans - Plan Assets
Retirement Plans - Plan Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | $ 79,616 | $ 69,823 | $ 70,365 |
Unit trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 1,676 | 4,681 | |
Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 37,290 | 30,584 | |
Fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 39,442 | 33,573 | |
Cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 1,208 | 985 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 5,909 | 985 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Unit trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 4,701 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 1,208 | 985 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 73,638 | 68,764 | |
Significant Other Observable Inputs (Level 2) [Member] | Unit trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 1,676 | 4,681 | |
Significant Other Observable Inputs (Level 2) [Member] | Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 32,520 | 30,510 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 39,442 | 33,573 | |
Significant Other Observable Inputs (Level 2) [Member] | Cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 0 | 0 | |
Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 69 | 74 | |
Unobservable Inputs (Level 3) [Member] | Unit trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 0 | 0 | |
Unobservable Inputs (Level 3) [Member] | Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 69 | 74 | |
Unobservable Inputs (Level 3) [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 0 | 0 | |
Unobservable Inputs (Level 3) [Member] | Cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | $ 0 | $ 0 |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Plan Assets Measured Using Significant Unobservable Inputs (Details) - Equities [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2017 | Oct. 29, 2016 | |
Reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||
Plan assets, Beginning Balance | $ 74 | $ 77 |
Exchange rate adjustment | (5) | (3) |
Purchases, sales, and settlements, net | (420) | |
Realized and unrealized return on plan assets | 420 | |
Plan assets, Ending Balance | $ 69 | $ 74 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Oct. 28, 2017USD ($) |
Expected Company Contributions | |
2,018 | $ 4,978 |
Expected Benefit Payments | |
2,019 | 1,958 |
2,020 | 2,111 |
2,021 | 2,079 |
2,022 | 2,280 |
2,023 | 2,936 |
2024 through 2027 | $ 21,083 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Jan. 28, 2017 | [1] | Oct. 29, 2016 | [1] | Jul. 30, 2016 | [1] | Apr. 30, 2016 | [1] | Jan. 30, 2016 | [1] | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||||||||||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||||||
Income tax provision reconciliation: | |||||||||||||||||||
Tax at statutory rate: | $ 289,970 | $ 334,922 | $ 283,540 | ||||||||||||||||
Net foreign income subject to lower tax rate | (385,189) | (264,157) | (198,061) | ||||||||||||||||
State income taxes, net of federal benefit | (8,801) | (10,821) | (4,425) | ||||||||||||||||
Valuation allowance | (7,778) | 13,658 | 4,875 | ||||||||||||||||
Federal research and development tax credits | (16,475) | (16,237) | (8,232) | ||||||||||||||||
Change in uncertain tax positions | (51,088) | 4,797 | 2,449 | ||||||||||||||||
Amortization of purchased intangibles | 159,466 | 35,641 | 38,973 | ||||||||||||||||
Acquisitions | 109,040 | 0 | 0 | ||||||||||||||||
Other, net | 12,081 | (2,546) | (5,883) | ||||||||||||||||
Provision for income taxes | $ 34,014 | $ 57,882 | $ (6,850) | $ 16,180 | $ 27,277 | $ 25,970 | $ 24,337 | $ 17,673 | $ 101,226 | $ 95,257 | $ 113,236 | ||||||||
[1] | b) Provision for income taxes in the second quarter of fiscal 2017 included a tax benefit of $15.0 million for the release of a state tax credit valuation allowance as a result of the Acquisition. Provision for income taxes in the third quarter of fiscal 2017 included approximately $98.2 million of tax expense incurred during the quarter as part of the post-Acquisition integration, partially offset by a tax benefit of $50.5 million related to the reduction of reserves and related interest resulting from the U.S. Tax Court’s favorable ruling, as well as lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Pretax income: | |||||||||||
Domestic | $ 109,565 | $ 2,642 | $ 110,710 | ||||||||
Foreign | 718,920 | 954,279 | 699,404 | ||||||||
Income before income taxes | $ 381,664 | $ 126,798 | $ 86,714 | $ 233,309 | $ 323,434 | $ 256,400 | $ 194,910 | $ 182,177 | $ 828,485 | $ 956,921 | $ 810,114 |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Current: | |||
Federal tax | $ 857,664 | $ 27,790 | $ 65,942 |
State | 7,335 | 1,409 | 695 |
Foreign | 62,096 | 57,934 | 98,813 |
Total current | 927,095 | 87,133 | 165,450 |
Deferred: | |||
Federal | (795,478) | 325 | (27,933) |
State | (24,285) | 2,820 | 541 |
Foreign | (6,106) | 4,979 | (24,822) |
Total deferred | $ 825,869 | $ (8,124) | $ 52,214 |
Income Taxes - Textuals (Detail
Income Taxes - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jul. 29, 2017 | Nov. 02, 2013 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | May 30, 2017 | Nov. 01, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||||
Tax expense related to post-acquisition integration | $ 98,200 | $ 98,200 | |||||
Tax expense related to post-acquisition integration, nondeductible | 10,800 | ||||||
Tax basis of subsidiary, basis difference | 10,700,000 | ||||||
Unremitted earnings of international subsidiaries for which no provision has been provided | 6,300,000 | ||||||
Valuation allowance | (53,787) | $ (67,094) | |||||
State credit carryover | 68,300 | ||||||
Liability for unrealized tax benefits | 47,600 | 75,600 | |||||
Liability for interest and penalties | 10,800 | 20,100 | |||||
Total liabilities for uncertain tax positions | 49,600 | 81,700 | |||||
Interest and penalties related to uncertain tax positions | (12,300) | 4,000 | $ 4,100 | ||||
Change in Unrecognized Tax Benefit | 22,600 | ||||||
Potential liability related to IRS adjustment | $ 36,500 | ||||||
Unrecognized tax benefits | 37,857 | $ 68,535 | $ 71,782 | $ 65,464 | |||
Income tax holiday, amount | $ 27,400 | ||||||
Internal Revenue Service (IRS) [Member] | Tax Years 2006 and 2007 [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Reserve release | $ 50,500 | ||||||
Unrecognized tax benefits | 41,700 | ||||||
Unrecognized tax benefits with interest | $ 8,800 | ||||||
SINGAPORE | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income tax holiday, termination date | August 2,019 | ||||||
MALAYSIA | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income tax holiday, termination date | July 2,025 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2017 | Oct. 29, 2016 |
Deferred tax assets: | ||
Inventory reserves | $ 28,137 | $ 22,527 |
Deferred income on shipments to distributors | 62,923 | 49,455 |
Reserves for compensation and benefits | 84,096 | 48,062 |
Tax credit carryovers | 68,317 | 68,669 |
Stock-based compensation | 99,815 | 56,345 |
Depreciation | 2,659 | 3,078 |
Net operating losses | 11,158 | 8,225 |
Acquisition-related costs | 3,384 | 13,336 |
Other | 34,737 | 39,256 |
Total gross deferred tax assets | 395,226 | 308,953 |
Valuation allowance | (53,787) | (67,094) |
Total deferred tax assets | 341,439 | 241,859 |
Deferred tax liabilities: | ||
Depreciation | (64,868) | (59,218) |
Undistributed earnings of foreign subsidiaries | (64,067) | (60,986) |
Acquisition-related intangibles | (1,851,818) | (193,059) |
Other | (3,047) | (2,522) |
Total gross deferred tax liabilities | (1,983,800) | (315,785) |
Net deferred tax liabilities | $ (1,642,361) | $ (73,926) |
Income Taxes - Changes in Unrea
Income Taxes - Changes in Unrealized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Changes in the total amounts of unrealized tax benefits | |||
Unrealized tax benefits (beginning) | $ 68,535 | $ 71,782 | $ 65,464 |
Additions for tax positions related to current year | 1,742 | 2,539 | 524 |
Additions for tax positions related to acquisition | 12,332 | ||
Additions for tax positions related to prior years | 9,799 | ||
Reductions for tax positions related to prior years | (43,186) | (4,475) | (2,745) |
Reductions due to lapse of applicable statute of limitations | (1,566) | (1,311) | (1,260) |
Unrealized tax benefits (end) | $ 37,857 | $ 68,535 | $ 71,782 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) | Sep. 23, 2016 | Oct. 28, 2017 | May 31, 2018 | Mar. 10, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, covenant terms | consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of not greater than 5.0 to 1.0 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit borrowing capacity after acquisition | $ 1,000,000,000 | |||
Debt instrument, covenant, leverage ratio | 5 | |||
Unsecured revolving credit facility, covenant compliance | compliant with these covenants | |||
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Eurodollar [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Scenario, Forecast [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, leverage ratio | 3 |
Debt (Details)
Debt (Details) - USD ($) | Nov. 10, 2017 | Mar. 10, 2017 | Dec. 05, 2016 | Sep. 23, 2016 | Jul. 26, 2016 | Dec. 14, 2015 | Jun. 03, 2013 | Jan. 28, 2017 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | Aug. 04, 2012 |
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 7,900,000,000 | $ 1,750,000,000 | ||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on June 5 and December 5 of each year, commencing June 5, 2017 | |||||||||||
Proceeds from debt | $ 1,200,000,000 | 11,156,164,000 | 1,235,331,000 | $ 0 | ||||||||
Repayments of debt | 5,050,000,000 | 0 | $ 0 | |||||||||
364-day senior unsecured bridge facility maximum aggregate principal amount | $ 7,500,000,000 | |||||||||||
90-day senior unsecured bridge facility maximum aggregate principal amount | $ 4,100,000,000 | |||||||||||
3-year unsecured term loan facility principal amount | $ 2,500,000,000 | |||||||||||
5-year unsecured term loan facility principal amount | 2,500,000,000 | |||||||||||
Debt issuance costs, net | $ 11,500,000 | |||||||||||
Senior 4.500% Unsecured Notes Dues December 5, 2036 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 250,000,000 | |||||||||||
Interest rate to be paid on long term notes | 4.50% | |||||||||||
Senior 3.500% Unsecured Notes Due December 5, 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 900,000,000 | |||||||||||
Interest rate to be paid on long term notes | 3.50% | |||||||||||
Senior 2.5% Unsecured Notes Due December 5,2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 400,000,000 | |||||||||||
Interest rate to be paid on long term notes | 2.50% | |||||||||||
Senior 3.125% Unsecured Notes Due December 5, 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 550,000,000 | |||||||||||
Interest rate to be paid on long term notes | 3.125% | |||||||||||
Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 1,950,000,000 | 0 | ||||||||||
Debt instrument, term | 3 years | 3 years | 3 years | |||||||||
Repayments of unsecured debt | $ 550,000,000 | |||||||||||
Unsecured Debt [Member] | Unsecured Term Loan, Five Year [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, term | 5 years | 5 years | 5 years | |||||||||
Repayments of unsecured debt | $ 400,000,000 | |||||||||||
Unsecured Debt [Member] | Unsecured Term Loan, Three Year Current [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, term | 3 years | |||||||||||
Senior Notes [Member] | 3.0% Senior unsecured notes due April 15, 2016 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
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 | |||||||||||
Senior Notes [Member] | Senior unsecured notes due December 5, 2021, December 5, 2023, December 5, 2026 and December 5, 2036 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Net proceeds of notes offering | $ 2,100,000,000 | |||||||||||
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 | $ 493,900,000 | |||||||||||
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 | |||||||||||
Bridge Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unamortized bridge fees | $ 7,200,000 | $ 13,700,000 | ||||||||||
Bridge Loan [Member] | Senior Unsecured Bridge Facility, Three Hundred Sixty Four Days [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, term | 364 days | |||||||||||
Debt related commitment fees and debt issuance costs | 27,500,000 | |||||||||||
Bridge financing commitments | $ 2,500,000,000 | $ 5,000,000,000 | ||||||||||
Bridge Loan [Member] | Senior Unsecured Bridge Facility, Ninety Days [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, term | 90 days | 90 days | ||||||||||
Bridge Loan [Member] | Unsecured Bridge Facility, Ninety Days, Agreement Due June 2017 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt related commitment fees and debt issuance costs | $ 15,000,000 | |||||||||||
Repayments of unsecured debt | $ 4,100,000,000 | |||||||||||
Fair Value, Measurements, Nonrecurring [Member] | 2.875% Senior unsecured notes due June 1, 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 500,000,000 | |||||||||||
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 | 1.7845% | |||||||||||
Fair Value, Measurements, Nonrecurring [Member] | 3.9% Senior unsecured notes due December 15, 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of debt | $ 850,000,000 | |||||||||||
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 | $ 400,000,000 | |||||||||||
Interest rate to be paid on long term notes | 5.30% | |||||||||||
Eurodollar [Member] | Minimum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan facility, interest rate over LIBOR rate | 0.75% | |||||||||||
Eurodollar [Member] | Minimum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan facility, interest rate over LIBOR rate | 0.875% | |||||||||||
Eurodollar [Member] | Maximum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan facility, interest rate over LIBOR rate | 1.625% | |||||||||||
Eurodollar [Member] | Maximum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan facility, interest rate over LIBOR rate | 1.75% | |||||||||||
Subsequent Event [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year Current [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 300,000,000 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) | Oct. 28, 2017 | Oct. 29, 2016 |
Debt Instrument [Line Items] | ||
Principal | $ 7,900,000,000 | $ 1,750,000,000 |
Unamortized discount and debt issuance costs | 48,916,000 | 17,823,000 |
Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 1,950,000,000 | 0 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 7,600,000,000 | 1,750,000,000 |
Unamortized discount and debt issuance costs | 48,916,000 | 17,823,000 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 1,650,000,000 | 0 |
Unamortized discount and debt issuance costs | 3,270,000 | 0 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 2,100,000,000 | 0 |
Unamortized discount and debt issuance costs | 4,727,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 2.500% Unsecured Notes Due December 5, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 0 |
Unamortized discount and debt issuance costs | 3,756,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | 2.875% Senior unsecured notes due June 1, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 500,000,000 | 500,000,000 |
Unamortized discount and debt issuance costs | 3,434,000 | 4,047,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.125% Unsecured Notes Due December 5, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 550,000,000 | 0 |
Unamortized discount and debt issuance costs | 5,392,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | Note 2025, December 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 850,000,000 | 850,000,000 |
Unamortized discount and debt issuance costs | 7,154,000 | 8,034,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.500% Unsecured Notes Due December 5, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 900,000,000 | 0 |
Unamortized discount and debt issuance costs | 11,655,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 4.500% Unsecured Notes Dues December 5, 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 250,000,000 | 0 |
Unamortized discount and debt issuance costs | 3,983,000 | 0 |
Long-term Debt [Member] | Senior Notes [Member] | Note 2045, December 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 400,000,000 |
Unamortized discount and debt issuance costs | 5,545,000 | 5,742,000 |
Debt, Current [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000,000 | 0 |
Unamortized discount and debt issuance costs | 0 | 0 |
Debt, Current [Member] | Unsecured Term Loan, Three Year Current [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000,000 | 0 |
Unamortized discount and debt issuance costs | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 20, 2017 | Nov. 10, 2017 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 |
Subsequent Event [Line Items] | |||||
Repayments of debt | $ 5,050,000 | $ 0 | $ 0 | ||
Subsequent Event [Member] | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Common stock cash dividends per share, date declared | Nov. 20, 2017 | ||||
Common stock cash dividends per share, declared | $ 0.45 | ||||
Common stock cash dividends per share, paid date | Dec. 12, 2017 | ||||
Common stock cash dividends per share, date of record | Dec. 1, 2017 | ||||
Unsecured Debt [Member] | Unsecured Term Loan, Three Year Current [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, term | 3 years | ||||
Unsecured Debt [Member] | Unsecured Term Loan, Three Year Current [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayments of debt | $ 300,000 |
Supplementary Financial Info100
Supplementary Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | ||||||||||||
Supplementary Financial Information | ||||||||||||||||||||||
Revenue | $ 1,541,170 | $ 1,433,902 | $ 1,147,982 | $ 984,449 | $ 1,003,623 | $ 869,591 | $ 778,766 | $ 769,429 | $ 5,107,503 | $ 3,421,409 | $ 3,435,092 | |||||||||||
Cost of sales | 535,145 | 667,278 | 507,539 | 335,945 | 336,936 | 297,301 | 267,863 | 292,136 | 2,045,907 | [1] | 1,194,236 | [1] | 1,175,830 | [1] | ||||||||
Gross margin | $ 1,006,025 | $ 766,624 | $ 640,443 | $ 648,504 | $ 666,687 | $ 572,290 | $ 510,903 | $ 477,293 | 3,061,596 | 2,227,173 | 2,259,262 | |||||||||||
% of Revenue | 65.30% | 53.50% | 55.80% | 65.90% | 66.40% | 65.80% | 65.60% | 62.00% | ||||||||||||||
Research and development | $ 273,746 | $ 275,670 | $ 235,232 | $ 183,954 | $ 172,926 | $ 163,227 | $ 160,235 | $ 157,428 | 968,602 | [1] | 653,816 | [1] | 637,459 | [1] | ||||||||
Selling, marketing, general and administrative | 185,721 | 183,980 | 190,686 | 130,659 | 118,881 | 122,909 | 112,186 | 107,462 | 691,046 | [1] | 461,438 | [1] | 478,972 | [1] | ||||||||
Special charges | 0 | 0 | 0 | 49,463 | 0 | 0 | 13,684 | 0 | 49,463 | 13,684 | 0 | |||||||||||
Other operating expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 223,672 | |||||||||||
Amortization of intangibles | 98,348 | 112,153 | 68,690 | 18,160 | 17,899 | 17,447 | 17,419 | 17,358 | 297,351 | 70,123 | 88,318 | |||||||||||
Total operating expenses | 557,815 | 571,803 | 494,608 | 382,236 | 309,706 | 303,583 | 303,524 | 282,248 | 2,006,462 | 1,199,061 | 1,428,421 | |||||||||||
Operating income | $ 448,210 | $ 194,821 | $ 145,835 | $ 266,268 | $ 356,981 | $ 268,707 | $ 207,379 | $ 195,045 | 1,055,134 | 1,028,112 | 830,841 | |||||||||||
% of Revenue | 29.00% | 14.00% | 13.00% | 27.00% | 36.00% | 31.00% | 27.00% | 25.00% | ||||||||||||||
Nonoperating (income) expenses: | ||||||||||||||||||||||
Interest expense | $ 63,517 | [2] | $ 73,073 | [2] | $ 71,636 | [2] | $ 42,614 | [2] | $ 38,764 | [2] | $ 18,476 | [2] | $ 18,455 | [2] | $ 13,062 | [2] | 250,840 | 88,757 | 27,030 | |||
Interest income | (2,388) | (5,524) | (12,421) | (10,000) | (7,114) | (5,665) | (5,243) | (3,199) | (30,333) | (21,221) | (8,625) | |||||||||||
Other, net | 5,417 | 474 | (94) | 345 | 1,897 | (504) | (743) | 3,005 | 6,142 | 3,655 | 2,322 | |||||||||||
Total nonoperating (income) expense | 66,546 | 68,023 | 59,121 | 32,959 | 33,547 | 12,307 | 12,469 | 12,868 | 226,649 | 71,191 | 20,727 | |||||||||||
Income before income taxes | $ 381,664 | $ 126,798 | $ 86,714 | $ 233,309 | $ 323,434 | $ 256,400 | $ 194,910 | $ 182,177 | 828,485 | 956,921 | 810,114 | |||||||||||
% of Revenue | 25.00% | 9.00% | 8.00% | 24.00% | 32.00% | 29.00% | 25.00% | 24.00% | ||||||||||||||
Provision for income taxes (b) | $ 34,014 | [3] | $ 57,882 | [3] | $ (6,850) | [3] | $ 16,180 | [3] | $ 27,277 | [3] | $ 25,970 | [3] | $ 24,337 | [3] | $ 17,673 | [3] | $ 101,226 | $ 95,257 | $ 113,236 | |||
Net income | $ 347,650 | $ 68,916 | $ 93,564 | $ 217,129 | $ 296,157 | $ 230,430 | $ 170,573 | $ 164,504 | ||||||||||||||
% of Revenue | 23.00% | 5.00% | 8.00% | 22.00% | 30.00% | 26.00% | 22.00% | 21.00% | ||||||||||||||
Earnings per share - Basic (in dollars per share) | ||||||||||||||||||||||
Basic earnings per common share (USD per share) | $ 0.94 | $ 0.18 | $ 0.27 | $ 0.70 | $ 0.96 | $ 0.75 | $ 0.55 | $ 0.53 | ||||||||||||||
Earnings per share - Diluted (in dollars per share) | ||||||||||||||||||||||
Diluted earnings per common share (USD per share) | $ 0.93 | $ 0.18 | $ 0.27 | $ 0.69 | $ 0.95 | $ 0.74 | $ 0.55 | $ 0.52 | ||||||||||||||
Shares used to compute earnings per share (in thousands): | ||||||||||||||||||||||
Shares used to compute earnings per share - Basic (in shares) | 368,043 | 367,315 | 341,316 | 308,786 | 307,854 | 307,135 | 308,790 | 311,166 | 346,371 | 308,736 | 312,660 | |||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 372,053 | 371,159 | 345,654 | 313,076 | 311,633 | 310,558 | 312,250 | 314,793 | 350,484 | 312,308 | 316,872 | |||||||||||
Dividends declared per share (USD per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.40 | $ 1.77 | $ 1.66 | $ 1.57 | |||||||||||
Tax benefit from release of state tax credit valuation allowance | $ 15,000 | |||||||||||||||||||||
Tax expense related to post-acquisition integration | $ 98,200 | $ 98,200 | ||||||||||||||||||||
Tax benefit related to reduction of reserves and interest | $ 50,500 | |||||||||||||||||||||
[1] | Includes stock-based compensation expense as follows: | |||||||||||||||||||||
[2] | a) Interest expense in fiscal 2017 and the fourth quarter of fiscal 2016 includes interest and fees associated with financing commitments entered into in connection with the Acquisition. | |||||||||||||||||||||
[3] | b) Provision for income taxes in the second quarter of fiscal 2017 included a tax benefit of $15.0 million for the release of a state tax credit valuation allowance as a result of the Acquisition. Provision for income taxes in the third quarter of fiscal 2017 included approximately $98.2 million of tax expense incurred during the quarter as part of the post-Acquisition integration, partially offset by a tax benefit of $50.5 million related to the reduction of reserves and related interest resulting from the U.S. Tax Court’s favorable ruling, as well as lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income. |
Valuation and Qualifying Acc101
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Oct. 31, 2015 | |
Accounts Receivable Reserves and Allowances [Member] | |||
Accounts Receivable Reserves and Allowances: | |||
Balance at Beginning of Period | $ 5,117 | $ 2,081 | $ 2,919 |
Additions (Reductions) Charged to Income Statement | 12,284 | 3,936 | 2,686 |
Other | 0 | 0 | 0 |
Deductions | 10,188 | 900 | 3,524 |
Balance at End of Period | 7,213 | 5,117 | 2,081 |
Valuation Reserve for Deferred Tax Asset [Member] | |||
Accounts Receivable Reserves and Allowances: | |||
Balance at Beginning of Period | 67,094 | 52,675 | 52,064 |
Additions (Reductions) Charged to Income Statement | (7,778) | 13,658 | 4,876 |
Other | 761 | 0 | |
Deductions | 5,529 | 0 | 4,265 |
Balance at End of Period | $ 53,787 | $ 67,094 | $ 52,675 |