Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Nov. 02, 2019 | May 03, 2019 | |
Cover page. | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Nov. 2, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-7819 | |
Entity Registrant Name | Analog Devices, Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2348234 | |
Entity Address, Address Line One | One Technology Way, | |
Entity Address, City or Town | Norwood, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02062-9106 | |
City Area Code | 781 | |
Local Phone Number | 329-4700 | |
Title of 12(b) Security | Common Stock $0.16 2/3 par value per share | |
Trading Symbol | ADI | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 31,890,000,000 | |
Entity Common Stock, Shares Outstanding | 368,302,369 | |
Entity Central Index Key | 0000006281 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --11-02 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | [2] | Oct. 28, 2017 | [2] | |||||
Revenue | |||||||||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | $ 5,246,354 | ||||||||||
Costs and Expenses | |||||||||||||||||||||
Cost of sales | 501,028 | 482,332 | 492,510 | 501,445 | 490,585 | 497,557 | 491,038 | 495,113 | 1,977,315 | 1,974,293 | 2,078,113 | ||||||||||
Gross margin | 942,191 | 997,811 | 1,034,092 | 1,039,656 | 1,045,543 | 1,060,632 | 1,072,464 | 1,071,757 | 4,013,750 | 4,250,396 | 3,168,241 | ||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development | 277,018 | 280,102 | 285,846 | 287,382 | 295,609 | 291,551 | 289,381 | 288,506 | 1,130,348 | 1,165,047 | 968,133 | ||||||||||
Selling, marketing, general and administrative | 154,799 | 162,825 | 163,128 | 167,342 | 175,296 | 171,388 | 172,047 | 176,809 | 648,094 | 695,540 | 690,533 | ||||||||||
Amortization of intangibles | 107,225 | 107,231 | 107,261 | 107,324 | 107,345 | 107,409 | 107,129 | 107,019 | 429,041 | 428,902 | 297,351 | ||||||||||
Special charges | 64,788 | [3] | 927 | [3] | 8,162 | [3] | 21,782 | [3] | 1,842 | [3] | 1,069 | [3] | 1,089 | [3] | 57,318 | [3] | 95,659 | 61,318 | 49,463 | ||
Total operating expenses | 603,830 | 551,085 | 564,397 | 583,830 | 580,092 | 571,417 | 569,646 | 629,652 | 2,303,142 | 2,350,807 | 2,005,480 | ||||||||||
Operating income | 338,361 | 446,726 | 469,695 | 455,826 | 465,451 | 489,215 | 502,818 | 442,105 | 1,710,608 | 1,899,589 | 1,162,761 | ||||||||||
Nonoperating (income) expenses: | |||||||||||||||||||||
Interest expense | 50,775 | 59,871 | 59,701 | 58,728 | 59,102 | 61,665 | 64,792 | 68,030 | 229,075 | 253,589 | 250,840 | ||||||||||
Interest income | (1,988) | (2,625) | (2,928) | (2,688) | (2,791) | (2,588) | (1,912) | (2,092) | (10,229) | (9,383) | (30,333) | ||||||||||
Other, net | 1,747 | (78) | 4,525 | (160) | (196) | (368) | (187) | 820 | 6,034 | 69 | 7,507 | ||||||||||
Total nonoperating (income) expense | 50,534 | 57,168 | 61,298 | 55,880 | 56,115 | 58,709 | 62,693 | 66,758 | 224,880 | 244,275 | 228,014 | ||||||||||
Earnings | |||||||||||||||||||||
Income before income taxes | 287,827 | 389,558 | 408,397 | 399,946 | 409,336 | 430,506 | 440,125 | 375,347 | 1,485,728 | 1,655,314 | 934,747 | ||||||||||
Provision for income taxes | $ 10,133 | [4] | $ 27,184 | [4] | $ 40,460 | [4] | $ 44,940 | [4] | $ 4,481 | [4] | $ 21,949 | [4] | $ 39,797 | [4] | $ 82,107 | [4] | 122,717 | 148,334 | 129,368 | ||
Net income | $ 1,363,011 | $ 1,506,980 | $ 805,379 | ||||||||||||||||||
Shares used to compute earnings per common share (in shares) | |||||||||||||||||||||
Shares used to compute earnings per share - Basic (in shares) | 369,051 | 369,533 | 369,246 | 368,703 | 371,074 | 371,315 | 370,384 | 369,093 | 369,133 | 370,430 | 346,371 | ||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 372,584 | 373,077 | 373,342 | 372,506 | 375,116 | 375,815 | 374,778 | 374,189 | 372,871 | 374,938 | 350,484 | ||||||||||
Earnings per share - Basic (in dollars per share) | |||||||||||||||||||||
Basic earnings per common share (in dollars per share) | $ 3.68 | $ 4.05 | $ 2.32 | ||||||||||||||||||
Earnings per share - Diluted (in dollars per share) | |||||||||||||||||||||
Diluted earnings per common share (in dollars per share) | $ 3.65 | $ 4 | $ 2.29 | ||||||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. | ||||||||||||||||||||
[3] | Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||||||
[4] | See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 02, 2019 | Nov. 03, 2018 | [1] | Oct. 28, 2017 | [1] | |
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 1,363,011 | $ 1,506,980 | $ 805,379 | ||
Foreign currency translation adjustment (net of taxes of $0 in 2019, $0 in 2018 and $1,556 in 2017) | (1,365) | (6,222) | 1,572 | ||
Change in fair value of available-for-sale securities (net of taxes of $0 in 2019, $0 in 2018 and $35 in 2017) | 10 | (10) | (517) | ||
Change in unrecognized gains/losses on derivative instruments designated as cash flow hedges: | |||||
Changes in fair value of derivatives (net of taxes of $29,401 in 2019, $416 in 2018 and $920 in 2017) | (111,327) | (1,863) | 3,806 | ||
Adjustment for realized gain/loss reclassified into earnings (net of taxes of $1,518 in 2019, $94 in 2018 and $1,326 in 2017) | (7,667) | 1,613 | (4,199) | ||
Total change in derivative instruments designated as cash flow hedges, net of tax | (103,660) | (3,476) | 8,005 | ||
Changes in accumulated other comprehensive loss — pension plans: | |||||
Change in transition asset (net of taxes of $0 in 2019, $0 in 2018 and $1 in 2017) | 0 | 10 | 14 | ||
Change in actuarial loss/gain (net of taxes of $5,734 in 2019, $2,363 in 2018 and $355 in 2017) | (24,344) | 12,616 | 3,513 | ||
Change in prior service cost/income (net of taxes of $0 in 2019, $0 in 2018 and $61 in 2017) | 0 | 1 | (132) | ||
Total change in accumulated other comprehensive loss — pension plans, net of tax | (24,344) | 12,627 | 3,395 | ||
Other comprehensive (loss) income | (129,359) | 2,919 | 12,455 | ||
Comprehensive income | $ 1,233,652 | $ 1,509,899 | $ 817,834 | ||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 1,556 |
Tax effect on unrealized holding losses on available for sale securities classified as short-term investments | 0 | 0 | 35 |
Tax effect on changes in fair value of derivatives | (29,401) | 416 | 920 |
Tax effect on realized on reclassification | 1,518 | (94) | 1,326 |
Tax effect on transition asset (obligation) | 0 | 0 | 1 |
Tax effect on net actuarial gain (loss) | 5,734 | 2,363 | (355) |
Tax effect on net prior service income | $ 0 | $ 0 | $ (61) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 648,322 | $ 816,591 | |
Accounts receivable less allowances of $8,387 ($2,284 in 2018) | 635,136 | 639,717 | |
Inventories | 609,886 | 586,760 | |
Prepaid expenses and other current assets | 91,782 | 69,058 | |
Total current assets | 1,985,126 | 2,112,126 | |
Property, Plant and Equipment, at Cost | |||
Land and buildings | 956,099 | 873,186 | |
Machinery and equipment | 2,609,493 | 2,478,032 | |
Office equipment | 85,490 | 76,233 | |
Leasehold improvements | 160,175 | 100,374 | |
Property, plant and equipment, at cost | 3,811,257 | 3,527,825 | |
Less accumulated depreciation and amortization | 2,591,268 | 2,373,497 | |
Net property, plant and equipment | 1,219,989 | 1,154,328 | |
Other Assets | |||
Deferred compensation plan investments | 47,154 | 39,853 | |
Other investments | 30,170 | 28,730 | |
Goodwill | 12,256,880 | 12,252,604 | |
Intangible assets, net | 4,217,224 | 4,778,192 | |
Deferred tax assets | 1,582,382 | 9,665 | |
Other assets | 53,716 | 62,868 | |
Total other assets | 18,187,526 | 17,171,912 | |
Total assets | 21,392,641 | 20,438,366 | |
Current Liabilities | |||
Accounts payable | 225,270 | 260,919 | |
Income taxes payable | 187,879 | 93,722 | |
Debt, current | 299,667 | 67,000 | |
Accrued liabilities | 795,816 | 630,107 | |
Total current liabilities | 1,508,632 | 1,051,748 | |
Non-current Liabilities | |||
Long-term debt | 5,192,252 | 6,265,674 | |
Deferred income taxes | 2,088,212 | 990,409 | |
Deferred compensation plan liability | 47,154 | 39,846 | |
Income taxes payable | 654,420 | 710,179 | |
Other non-current liabilities | 192,783 | 112,337 | |
Total non-current liabilities | 8,174,821 | 8,118,445 | |
Commitments and contingencies (Note 10) | |||
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, 368,302,369 shares outstanding (370,159,553 on November 3, 2018) | 61,385 | 61,694 | |
Capital in excess of par value | 4,936,349 | 5,282,222 | |
Retained earnings | 6,899,253 | 5,982,697 | |
Accumulated other comprehensive loss | (187,799) | (58,440) | |
Total shareholders’ equity | 11,709,188 | 11,268,173 | |
Liabilities and Shareholders' Equity | $ 21,392,641 | $ 20,438,366 | |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 |
Current Assets | ||
Allowances of accounts receivable | $ 8,387 | $ 2,284 |
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) | $ 0.16 | $ 0.16 |
Common stock, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares outstanding (in shares) | 368,302,369 | 370,159,553 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | |
Beginning Balance (in shares) at Oct. 29, 2016 | [1] | 308,171 | ||||
Beginning Balance at Oct. 29, 2016 | [1] | $ 51,363 | $ 402,270 | $ 4,975,764 | $ (73,814) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | [1] | 805,379 | ||||
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 Income (loss) | 12,455 | |||||
Common stock repurchased (in shares) | (572) | |||||
Common stock repurchased | $ (95) | (46,438) | ||||
Ending Balance (in shares) at Oct. 28, 2017 | [1] | 368,636 | ||||
Ending Balance at Oct. 28, 2017 | [1] | $ 61,441 | 5,250,519 | 5,179,024 | (61,359) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | [1] | 1,506,980 | ||||
Dividends declared and paid | (703,307) | |||||
Issuance of stock under stock plans and other (in shares) | 4,012 | |||||
Issuance of stock under stock plans and other | $ 668 | 98,359 | ||||
Tax benefit — equity based awards | 7,741 | |||||
Stock-based compensation expense | 151,165 | |||||
Other comprehensive Income (loss) | 2,919 | |||||
Common stock repurchased (in shares) | (2,488) | |||||
Common stock repurchased | $ (415) | (225,562) | ||||
Ending Balance (in shares) at Nov. 03, 2018 | [1] | 370,160 | ||||
Ending Balance at Nov. 03, 2018 | [1] | $ 11,268,173 | $ 61,694 | 5,282,222 | 5,982,697 | (58,440) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 1,363,011 | |||||
Dividends declared and paid | (777,481) | |||||
Issuance of stock under stock plans and other (in shares) | 4,271 | |||||
Issuance of stock under stock plans and other | $ 712 | 115,811 | ||||
Stock-based compensation expense | 150,300 | |||||
Other comprehensive Income (loss) | (129,359) | |||||
Common stock repurchased (in shares) | (6,129) | |||||
Common stock repurchased | $ (1,021) | (611,984) | ||||
Ending Balance (in shares) at Nov. 02, 2019 | 368,302 | |||||
Ending Balance at Nov. 02, 2019 | $ 11,709,188 | $ 61,385 | $ 4,936,349 | $ 6,899,253 | $ (187,799) | |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | ||||
Cash flows from operating activities: | ||||||
Net income | $ 1,363,011 | $ 1,506,980 | [1] | $ 805,379 | [1] | |
Adjustments to reconcile net income to net cash provided by operations: | ||||||
Depreciation | 240,677 | 228,525 | [1] | 194,666 | [1] | |
Amortization of intangibles | 570,574 | 570,538 | [1] | 389,393 | [1] | |
Cost of goods sold for inventory acquired | 0 | 0 | [1] | 358,718 | [1] | |
Stock-based compensation expense | 150,300 | 151,165 | [1] | 104,188 | [1] | |
Non-cash portion of special charges | 14,167 | 0 | [1] | 0 | [1] | |
Other non-cash activity | 40,907 | 36,569 | [1] | (10,865) | [1] | |
Deferred income taxes | (91,253) | (730,376) | [1] | (810,398) | [1] | |
Change in operating assets and liabilities: | ||||||
Accounts receivable | 5,890 | 45,979 | [1] | (65,669) | [1] | |
Inventories | (42,771) | (34,636) | [1] | (47,354) | [1] | |
Prepaid expenses and other current assets | (9,475) | (1,721) | [1] | (1,875) | [1] | |
Deferred compensation plan investments | (7,301) | (7,484) | [1] | (7,358) | [1] | |
Prepaid income tax | (2,322) | 133 | [1] | 2,679 | [1] | |
Accounts payable and accrued liabilities | (6,371) | (18,397) | [1] | 85,987 | [1] | |
Deferred compensation plan liability | 7,308 | 7,484 | [1] | 7,358 | [1] | |
Income taxes payable, current | 74,993 | (8,506) | [1] | 132,289 | [1] | |
Other liabilities | (55,234) | 696,108 | [1] | 17,227 | [1] | |
Total adjustments | 890,089 | 935,381 | [1] | 348,986 | [1] | |
Net cash provided by operating activities | 2,253,100 | 2,442,361 | [1] | 1,154,365 | [1] | |
Cash flows from investing: | ||||||
Purchases of short-term available-for-sale investments | 0 | 0 | [1] | (705,485) | [1] | |
Maturities of short-term available-for-sale investments | 0 | 0 | [1] | 3,362,792 | [1] | |
Sales of short-term available-for-sale investments | 0 | 0 | [1] | 577,187 | [1] | |
Additions to property, plant and equipment, net | (275,372) | (254,876) | [1] | (204,098) | [1] | |
Payments for acquisitions, net of cash acquired | (11,170) | (52,839) | [1] | (9,632,568) | [1] | |
Change in other assets | (6,644) | (6,283) | [1] | (15,842) | [1] | |
Net cash used for investing activities | (293,186) | (313,998) | [1] | (6,618,014) | [1] | |
Cash flows from financing activities: | ||||||
Proceeds from debt | 1,250,000 | 743,778 | [1] | 11,156,164 | [1] | |
Early termination of debt | (1,250,000) | 0 | [1] | 0 | [1] | |
Debt repayments | (850,000) | (2,275,000) | [1] | (5,050,000) | [1] | |
Payments on revolver | (75,000) | 0 | [1] | 0 | [1] | |
Proceeds from revolver | 75,000 | 0 | [1] | 0 | [1] | |
Proceeds from derivative instruments | 0 | 0 | [1] | 3,904 | [1] | |
Payments of deferred financing fees | 0 | 0 | [1] | (5,625) | [1] | |
Dividend payments to shareholders | (777,481) | (703,307) | [1] | (602,119) | [1] | |
Repurchase of common stock | (613,005) | (225,977) | [1] | (46,533) | [1] | |
Proceeds from employee stock plans | 116,523 | 99,027 | [1] | 133,302 | [1] | |
Change in other financing activities | (2,831) | 3,437 | [1] | (2,288) | [1] | |
Net cash (used for) provided by financing activities | (2,126,794) | (2,358,042) | [1] | 5,586,805 | [1] | |
Effect of exchange rate changes on cash | (1,389) | (1,568) | [1] | 3,550 | [1] | |
Net (decrease) increase in cash and cash equivalents | (168,269) | (231,247) | [1] | 126,706 | [1] | |
Cash and cash equivalents at beginning of year | [1] | 816,591 | 1,047,838 | 921,132 | ||
Cash and cash equivalents at end of year | $ 648,322 | $ 816,591 | [1] | $ 1,047,838 | [1] | |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Description of Business
Description of Business | 12 Months Ended |
Nov. 02, 2019 | |
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. 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 efficiently 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 applications. The Company produces innovative products and technologies that accurately and securely sense, measure, connect, interpret and power, allowing its customers to intelligently bridge the physical and digital domains. The Company designs, manufactures, and markets a broad portfolio of solutions, including integrated circuits (ICs), algorithms, software, and subsystems, that leverage high-performance analog, mixed-signal, and digital signal processing technologies. The Company's fusion of cutting-edge sensors, data converters, amplifiers and linear products, radio frequency (RF) ICs, power management products, and other signal processing products with deep industry expertise allows it to create robust technology platforms that meet a broad spectrum of customer and market needs. As new generations of applications evolve - such as autonomous vehicles, 5G networks, intelligent factories, and smart healthcare devices - the demand for Analog Devices’ high-performance analog signal processing and digital signal processing (DSP) products and technologies is increasing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 02, 2019 | |
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 November 2, 2019 (fiscal 2019). 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 2019 and fiscal 2017 were 52-week fiscal periods, while fiscal 2018 was a 53-week period. The additional week in fiscal 2018 was included in the first quarter ended February 3, 2018. Therefore, fiscal 2018 included an additional week of operations as compared to fiscal 2019 and fiscal 2017. On March 10, 2017 (Acquisition Date), the Company completed the acquisition of all of the voting interests of Linear Technology Corporation (Linear), an independent manufacturer 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. As further discussed in Note 2n, Revenue Recognition, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09), in the first quarter of fiscal 2019. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period showing, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized as of the date of initial application. The Company adopted ASU 2014-09 using the full retrospective method and applied the practical expedient, in which the Company is not required to disclose the amount of consideration allocated to any remaining performance obligations or an explanation of when the Company expects to recognize that amount as revenue for all reporting periods presented before the date of the initial application. As a result of the adoption of ASU 2014-09, the Company changed its accounting policy for revenue recognition and recognizes revenue from product sales to its customers and distributors when title passes, which is generally upon shipment. Prior to the adoption of ASU 2014-09, revenue and the related cost of sales on shipments to certain distributors were deferred until the distributor resold the products to their end customers. See Note 2n, Revenue Recognition, in these Notes to Consolidated Financial Statements for the details of the Company’s revenue recognition policies. The adoption of ASU 2014-09 impacted the Company’s consolidated statements of income and consolidated balance sheets but did not impact its consolidated statements of cash flows, with the exceptions of net income and reclassifications within adjustments to reconcile net income to cash provided by operations, and did not impact the consolidated statement of shareholders' equity, with the exceptions of retained earnings and net income. As shown in the tables below, pursuant to the guidance in ASU 2014-09, the Company restated its historical financial results to be consistent with the standard. Accordingly, the amounts for fiscal 2019, fiscal 2018 and fiscal 2017 periods presented in this Form 10-K reflect the impact of ASU 2014-09. In addition, the Company adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost in the first quarter of fiscal 2019. Under this ASU, the service cost component of net periodic benefit cost is recorded in Cost of sales, Research and development, Selling, marketing, general and administrate expenses, while the remaining components are recorded to Other, net within the Company's consolidated statements of income. As such, the prior year amounts have been reclassified to provide comparable presentation in line with the guidance in ASU 2017-07 based on amounts previously disclosed for the various components of net periodic pension cost. See Note 11, Retirement Plans, in these Notes to Consolidated Financial Statements for more information on the adoption of ASU 2017-07. The tables below reconcile the impact of ASU 2014-09 and ASU 2017-07 on the consolidated statements of income: Year Ended November 3, 2018 Consolidated Statement of Income As Reported Impact of Adoption of ASU 2014-09 Impact of Adoption of ASU 2017-07 As Adjusted Revenue $ 6,200,942 $ 23,747 $ — $ 6,224,689 Cost of sales 1,967,640 6,950 (297) 1,974,293 Gross margin 4,233,302 16,797 297 4,250,396 Operating expenses: Research and development 1,165,410 — (363) 1,165,047 Selling, marketing, general and administrative 695,937 — (397) 695,540 Amortization of intangibles 428,902 — — 428,902 Special charges 61,318 — — 61,318 2,351,567 — (760) 2,350,807 Operating income 1,881,735 16,797 1,057 1,899,589 Nonoperating expense (income): Interest expense 253,589 — — 253,589 Interest income (9,383) — — (9,383) Other, net (988) — 1,057 69 243,218 — 1,057 244,275 Income before income taxes 1,638,517 16,797 — 1,655,314 Provision for income taxes 143,085 5,249 — 148,334 Net income $ 1,495,432 $ 11,548 $ — $ 1,506,980 Shares used to compute earnings per common share – basic 370,430 — — 370,430 Shares used to compute earnings per common share – diluted 374,938 — — 374,938 Basic earnings per common share $ 4.02 $ 0.03 $ — $ 4.05 Diluted earnings per common share $ 3.97 $ 0.03 $ — $ 4.00 Year Ended October 28, 2017 Consolidated Statement of Income As Reported Impact of Adoption of ASU 2014-09 Impact of Adoption of ASU 2017-07 As Adjusted Revenue $ 5,107,503 $ 138,851 $ — $ 5,246,354 Cost of sales 2,045,907 32,589 (383) 2,078,113 Gross margin 3,061,596 106,262 383 3,168,241 Operating expenses: Research and development 968,602 — (469) 968,133 Selling, marketing, general and administrative 691,046 — (513) 690,533 Amortization of intangibles 297,351 — — 297,351 Special charges 49,463 — — 49,463 2,006,462 — (982) 2,005,480 Operating income 1,055,134 106,262 1,365 1,162,761 Nonoperating expense (income): Interest expense 250,840 — — 250,840 Interest income (30,333) — — (30,333) Other, net 6,142 — 1,365 7,507 226,649 — 1,365 228,014 Income before income taxes 828,485 106,262 — 934,747 Provision for income taxes 101,226 28,142 — 129,368 Net income $ 727,259 $ 78,120 $ — $ 805,379 Shares used to compute earnings per common share – basic 346,371 — — 346,371 Shares used to compute earnings per common share – diluted 350,484 — — 350,484 Basic earnings per common share $ 2.09 $ 0.23 $ — $ 2.32 Diluted earnings per common share $ 2.07 $ 0.22 $ — $ 2.29 The impact on the Company's previously reported consolidated balance sheet line items is as follows: November 3, 2018 As Reported Impact of Adoption of ASU 2014-09 As Adjusted Deferred tax assets $ 21,078 $ (11,413) $ 9,665 Deferred income on shipments to distributors, net $ 487,417 $ (487,417) $ — Accrued liabilities $ 497,080 $ 133,027 $ 630,107 Deferred income taxes $ 927,065 $ 63,344 $ 990,409 Retained earnings $ 5,703,064 $ 279,633 $ 5,982,697 In addition, in the first quarter of fiscal 2019, the Company adopted ASU 2016-16, Income Taxes (Topic 740) (ASU 2016-16) using the modified retrospective method with a cumulative-effect adjustment directly to retained earnings. ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The adoption of ASU 2016-16 resulted in the following cumulative-effect increase in the Company's deferred tax assets, deferred tax liabilities and retained earnings as follows: November 4, 2018 Beginning Balance November 3, 2018 as Adjusted Impact of Adoption of ASU 2016-16 Balance November 4, 2018 Deferred tax assets $ 9,665 $ 1,655,129 $ 1,664,794 Deferred income taxes $ 990,409 $ 1,324,103 $ 2,314,512 Retained earnings $ 5,982,697 $ 331,026 $ 6,313,723 See Note 12, Income Taxes, in these Notes to Consolidated Financial Statements for more information on the adoption of ASU 2016-16. b. Cash and Cash Equivalents 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 and cash equivalents 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 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 (AOCI). Adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease in AOCI, unless the adjustment is considered an other-than-temporary impairment, in which case the adjustment is recorded as a charge in the consolidated statements of income. The Company’s deferred compensation plan investments are classified as trading. See Note 2j, Fair Value and Note 11, Retirement Plans, of these Notes to Consolidated Financial Statements for additional information on these investments. The Company periodically evaluates its investments for impairment. There were no other-than-temporary impairments of 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. The components of the Company’s cash and cash equivalents as of November 2, 2019 and November 3, 2018 were as follows: 2019 2018 Cash and cash equivalents: Cash $ 152,432 $ 147,629 Available-for-sale 416,890 598,962 Held-to-maturity 79,000 70,000 Total cash and cash equivalents $ 648,322 $ 816,591 See Note 2j, Fair Value, of these Notes to Consolidated Financial Statements for additional information on the Company’s cash equivalents. c. Supplemental Cash Flow Statement Information 2019 2018 2017 Cash paid during the fiscal year for: Income taxes $ 205,762 $ 211,473 $ 868,492 Interest $ 216,143 $ 233,436 $ 183,117 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 November 2, 2019 and November 3, 2018 were as follows: 2019 2018 Raw materials $ 35,447 $ 30,511 Work in process 400,409 375,908 Finished goods 174,030 180,341 Total inventories $ 609,886 $ 586,760 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 Leasehold improvements 7-20 years Depreciation expense for property, plant and equipment was $240.7 million, $228.5 million and $194.7 million in fiscal 2019, 2018 and 2017, 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 2019, fiscal 2018 or fiscal 2017. f. Goodwill and Intangible Assets Goodwill The Company evaluates goodwill for impairment annually, utilizing either the qualitative or quantitative method, 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 the Company has determined is consistent with our eight identified operating segments, on an annual basis on the first day of the fourth quarter (on or about August 4) or more frequently if indicators of impairment exist or the Company reorganizes its reporting units. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its net book value. If the Company elects not to use this option, or it determines that it is more likely than not that the fair value of a reporting unit is less than its net book value, then the Company performs the quantitative goodwill impairment test. In the Company's annual impairment evaluation that occurred for fiscal 2019, management used the qualitative method of assessing goodwill for seven of its eight reporting units and the quantitative method for one reporting unit. In fiscal 2018, the Company used the qualitative method for all eight of its identified reporting units. For each of the reporting units evaluated using the qualitative method in fiscal 2019 and fiscal 2018, the Company determined that it was not more likely than not that the fair values were less than their net book values. In making this determination, the Company considered several factors, including the following: – the amount by which the fair values of each reporting unit exceeded their carrying values as of the date of the most recent quantitative impairment analysis, which indicated there would need to be substantial negative developments in the markets in which these reporting units operate in order for there to be potential impairment; – the carrying values of these reporting units as of the first day of the fourth quarter compared to the previously calculated fair values as of the date of the most recent quantitative impairment analysis; – the Company's current forecasts as compared to the forecasts included in the most recent quantitative impairment analysis; – public information from competitors and other industry information to determine if there were any significant adverse trends in our competitors' businesses, such as significant declines in market capitalization or significant goodwill impairment charges that could be an indication that the goodwill of our reporting units was potentially impaired; – changes in the value of major U.S. stock indices that could suggest declines in overall market stability that could impact the valuation of our reporting units; – changes in our market capitalization and overall enterprise valuation to determine if there were any significant decreases that could be an indication that the valuation of our reporting units had significantly decreased; and – whether there had been any significant increases to the weighted-average cost of capital (WACC) rates for each reporting unit, which could materially lower our prior valuation conclusions under a discounted cash flow approach. As a result of the quantitative goodwill impairment analysis performed in fiscal 2019 for one of the Company's reporting units, the Company concluded the reporting unit’s fair value exceeded its carrying amount as of the assessment date and no risk of impairment existed. The first step of the goodwill impairment test requires an entity to compare the fair value of a reporting unit with its carrying amount. The Company determined the fair value of its reporting unit using a weighting of the income and market approaches. Under the income approach, the Company used a discounted cash flow methodology which required management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company used the guideline public company method. Under this method the Company utilized information from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit, to estimate valuation multiples that are applied to the operating performance of the reporting unit, in order to estimate its fair value. There was no impairment of goodwill in any of the fiscal years presented. The Company’s next annual impairment assessment will be performed as of the first day of the fourth quarter of the fiscal year ending October 31, 2020 (fiscal 2020) unless indicators arise that would require the Company to reevaluate at an earlier date. The following table presents the changes in goodwill during fiscal 2019 and fiscal 2018: 2019 2018 Balance at beginning of year $ 12,252,604 $ 12,217,455 Acquisition of Linear (Note 6) — 1,647 Goodwill adjustment related to other acquisitions (1) 6,702 36,558 Foreign currency translation adjustment (2,426) (3,056) Balance at end of year $ 12,256,880 $ 12,252,604 _______________________________________ (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. If required, 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. 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. During fiscal 2019, the company recorded $14.2 million of special charges related to the write-off of acquired intellectual property, classified as IPR&D, due to the Company's decision to discontinue certain product development strategies. As of November 2, 2019 and November 3, 2018, the Company’s intangible assets consisted of the following: November 2, 2019 November 3, 2018 Gross Carrying Accumulated Gross Carrying Accumulated Customer relationships $ 4,696,562 $ 1,284,256 $ 4,697,716 $ 867,207 Technology-based 1,145,283 385,618 1,114,080 243,350 Trade-name 73,417 28,164 74,031 17,846 IPR&D — — 20,768 — Total (1) (2) $ 5,915,262 $ 1,698,038 $ 5,906,595 $ 1,128,403 _______________________________________ (1) Foreign intangible asset carrying amounts are affected by foreign currency translation. (2) Increases in intangible assets primarily relate to acquisitions that were not material to the Company on either an individual or aggregate basis. 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 $570.6 million, $570.5 million and $389.4 million in fiscal 2019, 2018 and 2017, respectively, and is recorded in Cost of sales and Amortization of intangibles on the consolidated statements of income. The remaining amortization expense will be recognized over a weighted average life of approximately 4.1 years. The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2020 $ 575,004 2021 $ 574,404 2022 $ 571,474 2023 $ 548,276 2024 $ 486,376 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 2019, fiscal 2018 or fiscal 2017. 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 AOCI. 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, net, were not material in fiscal 2019, 2018 or 2017. 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. Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified. 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 matched with the underlying exposures at inception and designated and documented as cash flow hedges. They are qualitatively evaluated for effectiveness on a quarterly basis. The gain or loss on the derivatives are reported as a component of AOCI in shareholders’ equity and reclassified into earnings in the same line item on the consolidated statements of income as the impact of the hedged transaction in the same period during which the hedged transaction affects earnings. 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 November 2, 2019 and November 3, 2018 was $191.1 million and $194.4 million, respectively. The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s consolidated balance sheets as of November 2, 2019 and November 3, 2018 were as follows: Fair Value At Balance Sheet Location November 2, 2019 November 3, 2018 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 65 $ — Forward foreign currency exchange contracts Accrued liabilities $ — $ 6,934 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 November 2, 2019 and November 3, 2018, the total notional amount of these undesignated hedges was $55.3 million and $40.6 million, respectively. The fair value of these hedging instruments in the Company’s consolidated balance sheets was immaterial as of November 2, 2019 and November 3, 2018. The Company estimates that settlements of forward foreign currency derivative instruments included in OCI that will be reclassified into earnings will be immaterial within the next 12 months. 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 sheets on a net basis. As of November 2, 2019 and November 3, 2018, 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 sheets as of November 2, 2019 and November 3, 2018: November 2, 2019 November 3, 2018 Gross amount of recognized liabilities $ (2,828) $ (8,054) Gross amounts of recognized assets offset in the consolidated balance sheets 2,828 904 Net liabilities presented in the consolidated balance sheets $ — $ (7,150) 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 the changes in interest rates. During fiscal 2019, the Company entered into an interest rate swap agreement which locked in the interest rate for up to $1 billion in future debt issuances. The interest rate swap was designated and qualified as a cash flow hedge. The fair value of this hedge was $138.8 million as of November 2, 2019 and is included within accrued liabilities in the Company's consolidated balance sheets. 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 November 2, 2019 and November 3, 2018, 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, accrued liabilities and other non-current 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 in the same line item on the consolidated statements of income as the impact of the hedged transaction when the underlying contract matures. Changes in the fair values of derivatives not qualifying for hedge accounting are reported in earnings as they occur. For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the consolidated statements 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 Le |
Stock-Based Compensation and Sh
Stock-Based Compensation and Shareholders' Equity | 12 Months Ended |
Nov. 02, 2019 | |
Share-based Payment Arrangement [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. In connection with the Acquisition, the Company assumed the Linear Technology Corporation Amended and Restated 2005 Equity Incentive Plan (the 2005 Plan) and the Linear Technology Corporation Amended and Restated 2010 Equity Incentive Plan (now referred to as the Analog Devices, Inc. Amended and Restated 2010 Equity Incentive Plan) (the 2010 Plan). The Company will not grant further equity awards under the 2005 Plan but may grant stock options and other stock and stock-based awards under the 2010 Plan. While the Company may grant options to employees that become exercisable at different times or within different periods, the Company generally grants to employees options that vest over four years and become exercisable in annual installments of 25% on each of the first, second, third and fourth anniversaries of the date of grant. For grants issued prior to fiscal 2018 the options granted to employees generally vested over five years and became 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 grants to employees restricted stock units that generally vest over four years in annual installments of 25% on each of the first, second, third and fourth anniversaries of the date of grant. For grants issued prior to fiscal 2018 restricted stock units generally vested in one installment on the third anniversary of the date of grant. As of November 2, 2019, a total of 10.2 million and 1.4 million common shares were available for future grant under the 2006 Plan and 2010 Plan, respectively, and 21.2 million common shares were reserved for issuance under the 2006 Plan, 2010 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. 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 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 2019, fiscal 2018 and fiscal 2017 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. The use of 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 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 2018, fiscal 2017 and fiscal 2016 is as follows: Stock Options 2019 2018 2017 Options granted (in thousands) 454 603 1,480 Weighted-average exercise price $107.11 $90.98 $82.99 Weighted-average grant-date fair value $23.29 $20.82 $17.12 Assumptions: Weighted-average expected volatility 26.4 % 27.7 % 26.4 % Weighted-average expected term (in years) 5.0 5.0 5.1 Weighted-average risk-free interest rate 2.4 % 2.6 % 2.1 % Weighted-average expected dividend yield 2.0 % 2.1 % 2.2 % 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. 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 5.0% to all unvested stock-based awards as of November 2, 2019. 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 awards that vest. Total stock-based compensation expense recognized is as follows: 2019 2018 2017 Cost of sales $ 20,628 $ 18,733 $ 12,569 Research and development 75,305 81,444 51,258 Selling, marketing, general and administrative 51,829 50,988 40,361 Special charges 2,538 — — Total stock-based compensation expense $ 150,300 $ 151,165 $ 104,188 As of November 2, 2019 and November 3, 2018, the Company capitalized $6.8 million and $7.1 million, respectively, of stock-based compensation in inventory. Additional paid-in-capital (APIC) Pool The Company adopted ASU 2016-09 during fiscal 2018. ASU 2016-09 eliminated the APIC pool and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled. As a result of this adoption the Company recorded total excess tax benefits of $28.7 million and $26.2 million in fiscal 2019 and fiscal 2018, respectively, from its stock-based compensation payments within income tax expense in its consolidated statements of income. For fiscal 2017, the APIC pool represented the excess tax benefits related to stock-based compensation that were available to absorb future tax deficiencies. If the amount of future tax deficiencies was greater than the available APIC pool, the Company recorded the excess as income tax expense in its consolidated statements of income. For fiscal 2017, 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 November 2, 2019 and changes during the fiscal year then ended is presented below: Options Weighted- Weighted- Aggregate Options outstanding at November 3, 2018 7,297 $58.42 Options granted 454 $107.11 Options exercised (2,364) $49.67 Options forfeited (198) $78.05 Options expired (6) $21.97 Options outstanding at November 2, 2019 5,183 $65.97 5.9 $224,945 Options exercisable at November 2, 2019 2,933 $55.23 4.7 $158,789 Options vested or expected to vest at November 2, 2019 (1) 5,046 $65.42 5.9 $221,766 _______________________________________ (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 2019, fiscal 2018 and fiscal 2017 was $132.3 million, $123.8 million and $144.6 million, respectively, and the total amount of proceeds received by the Company from exercise of these options during fiscal 2019, fiscal 2018 and fiscal 2017 was $116.5 million, $99.0 million and $133.3 million, respectively. A summary of the Company’s restricted stock unit award activity as of November 2, 2019 and changes during the fiscal year then ended is presented below: Restricted Weighted- Restricted stock units/awards outstanding at November 3, 2018 5,289 $77.54 Units/Awards granted 1,317 $98.82 Restrictions lapsed (1,896) $69.38 Forfeited (314) $80.44 Restricted stock units/awards outstanding at November 2, 2019 4,396 $87.18 As of November 2, 2019, there was $318.3 million of total unrecognized compensation cost related to unvested stock-based awards comprised of stock options and restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.4 years. The total grant-date fair value of shares that vested during fiscal 2019, fiscal 2018 and fiscal 2017 was approximately $150.6 million, $136.1 million and $114.8 million, respectively. Common Stock Repurchases The Company’s share repurchase program has been in place since August 2004. In the aggregate, the Board of Directors has authorized the Company to repurchase $8.2 billion of the Company’s common stock under the program, which includes the $2.0 billion authorization approved by the Board of Directors on August 21, 2018. 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. In connection with the Acquisition, the Company temporarily suspended the share repurchase program. On August 21, 2018, the Company reinstated the share repurchase program and, as of November 2, 2019, the Company had repurchased a total of approximately 154.4 million shares of its common stock for approximately $6.1 billion under this program. An additional $2.1 billion remains available for repurchase of shares under the current authorized program. The repurchased shares are held as authorized but unissued shares of common stock. The Company also, from time to time, repurchases shares in settlement of employee 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 |
Industry, Segment and Geographi
Industry, Segment and Geographic Information | 12 Months Ended |
Nov. 02, 2019 | |
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 ICs. • The ICs 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 ICs 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 and the Company's methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within each end market. 2019 2018 (1) 2017 (1) Revenue % of Revenue % of Revenue % of Industrial $ 3,003,927 50 % $ 3,129,569 50 % $ 2,324,686 44 % Communications 1,284,087 21 % 1,151,359 18 % 908,594 17 % Automotive 933,143 16 % 1,009,927 16 % 758,115 14 % Consumer 769,908 13 % 933,834 15 % 1,254,959 24 % Total Revenue $ 5,991,065 100 % $ 6,224,689 100 % $ 5,246,354 100 % _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. (2) The sum of the individual percentages may not equal the total due to rounding. Revenue by Sales Channel The following tables summarize revenue by channel. The Company sells its products globally through a direct sales force, third party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers (OEMs). Other customers include the U.S. government, government prime contractors and some commercial customers. 2019 2018 (1) 2017 (1) Revenue % of Revenue % of Revenue % of Distributors $ 3,409,161 57 % $ 3,424,145 55 % $ 2,749,335 52 % Direct customers 2,506,065 42 % 2,721,885 44 % 2,424,514 46 % Other 75,839 1 % 78,659 1 % 72,505 1 % Total Revenue $ 5,991,065 100 % $ 6,224,689 100 % $ 5,246,354 100 % _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. (2) The sum of the individual percentages may not equal the total due to rounding. Geographic Information Geographic revenue information for fiscal 2019, fiscal 2018 and fiscal 2017 reflects the geographic location of the distributors or OEMs who purchased the Company's products. This may differ from the geographic location of the end customers. In all periods presented, the predominant countries comprising “Rest of North and South America” are Canada and Mexico; the predominant countries comprising “Europe” are Germany, Sweden, and the Netherlands; and the predominant countries comprising “Rest of Asia” are Taiwan, Malaysia, South Korea and Singapore. 2019 2018 2017 Revenue (1) United States $ 2,020,886 $ 2,277,084 $ 2,110,545 Rest of North and South America 55,059 46,276 48,620 Europe 1,374,673 1,405,686 1,164,725 Japan 657,632 714,846 586,521 China 1,316,275 1,215,949 898,645 Rest of Asia 566,540 564,848 437,298 Subtotal all foreign countries 3,970,179 3,947,605 3,135,809 Total revenue $ 5,991,065 $ 6,224,689 $ 5,246,354 Property, plant and equipment United States $ 592,591 $ 505,646 $ 504,968 Ireland 184,791 202,611 188,728 Philippines 247,823 260,355 228,629 Singapore 88,385 80,383 77,015 Malaysia 56,292 57,514 71,756 All other countries 50,107 47,819 36,208 Subtotal all foreign countries 627,398 648,682 602,336 Total property, plant and equipment $ 1,219,989 $ 1,154,328 $ 1,107,304 _______________________________________ (1) Balances for fiscal 2018 and fiscal 2017 have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Special Charges
Special Charges | 12 Months Ended |
Nov. 02, 2019 | |
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 table displays a roll-forward from October 29, 2016 to November 2, 2019 of the employee separation and exit cost accruals established related to these actions. Accrued Restructuring Closure of Manufacturing Facilities Reduction of Early Retirement Action Repositioning Action 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 $ — Fiscal 2018 special charges 44,452 16,866 — — Severance payments — (16,785) (22,314) — Effect of foreign currency on accrual (1,478) 37 — — Balance at November 3, 2018 $ 42,974 $ 5,255 $ 9,897 $ — Fiscal 2019 special charges 7,556 — — 88,103 Severance payments — (4,320) (5,314) (12,487) Non-cash impairment charge — — — (14,167) Non-cash accelerated stock based compensation — — — (2,538) Effect of foreign currency on accrual (129) 5 — (16) Balance at November 2, 2019 $ 50,401 $ 940 $ 4,583 $ 58,895 Current - accrued liabilities $ — $ 940 $ 4,583 $ 58,895 Other non-current liabilities $ 50,401 $ — $ — $ — Closure of Manufacturing Facilities The Company recorded special charges of $52.0 million on a cumulative basis through November 2, 2019 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation (Linear). Over the next one Reduction of Operating Costs Actions During fiscal 2018, the Company recorded special charges of approximately $16.9 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 126 manufacturing, engineering and SMG&A employees. 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. The Company terminated the employment of all employees associated with this action. Early Retirement Action During fiscal 2017, the Company initiated an early retirement action. 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 SMG&A employees. The Company terminated the employment of all employees associated with this action. Repositioning Action |
Acquisitions
Acquisitions | 12 Months Ended |
Nov. 02, 2019 | |
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 sheets, consolidated statements 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: Cash consideration (1) $ 11,092,047 Issuance of common stock (2) 4,593,655 Fair value of replacement stock-based and cash awards (3) 70,954 Total estimated purchase consideration $ 15,756,656 _______________________________________ (1) 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 (as defined in Note 14, 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. (2) 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). (3) 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. During fiscal 2018, the Company completed the acquisition accounting for the Acquisition. The following is a summary of the amounts recognized in accounting for the Acquisition: Cash and cash equivalents $ 1,466,445 Marketable securities 100,246 Accounts receivable (1) 143,542 Inventories 461,695 Prepaid expenses and other assets 14,782 Property, plant and equipment 462,285 Intangible assets (Note 2f) 5,157,300 Goodwill (Note 2f) 10,533,919 Total assets 18,340,214 Assumed liabilities 190,925 Deferred tax liabilities 2,392,633 Total estimated purchase consideration $ 15,756,656 _______________________________________ (1) The fair value of accounts receivable was $143.5 million, with the gross contractual amount being $145.2 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 Weighted Average Useful Lives Technology-based $ 1,046,100 8 Trade name 72,200 7 Customer relationships 4,039,000 12 Total amortizable intangible assets $ 5,157,300 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 did 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 contingent obligations assumed as part of the Acquisition. The Company recognized $47.5 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 within SMG&A expenses. 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 stock-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. Pro Forma Twelve Months Ended October 28, 2017 (1) Revenue $ 5,832,412 Net income $ 1,133,097 Basic net income per common share $ 3.07 Diluted net income per common share $ 3.03 _______________________________________ (1) Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. Other Acquisitions The Company has not provided pro forma results of operations for any other acquisitions completed in fiscal 2019, fiscal 2018 or fiscal 2017 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 statements of income from the date of each acquisition. |
Other Investments
Other Investments | 12 Months Ended |
Nov. 02, 2019 | |
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 method of accounting or cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Realized gains and losses are reflected in nonoperating (income) expense based upon the Company's ownership share of the investee's financial results. The Company recognized other-than-temporary impairments of $6.6 million and $5.0 million in fiscal 2019 and fiscal 2017, respectively. These charges were recorded in the consolidated statements of income in other, net, within non-operating (income) expense. There were no other-than-temporary impairments recognized in fiscal 2018. There were no material net realized or unrealized gains or losses from other investments during fiscal 2019, fiscal 2018 and fiscal 2017. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Nov. 02, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at November 2, 2019 and November 3, 2018 consisted of the following: 2019 2018 (1) Distributor price adjustments and other revenue reserves $ 227,020 $ 144,887 Accrued compensation and benefits 168,471 254,932 Interest rate swap 138,798 — Accrued interest 61,255 64,974 Accrued restructuring 64,418 15,152 Other 135,854 150,162 Total accrued liabilities $ 795,816 $ 630,107 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Nov. 02, 2019 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases certain land, 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 $92.3 million in fiscal 2019, $84.9 million in fiscal 2018 and $58.8 million in fiscal 2017. The following is a schedule of future minimum rental payments required under long-term operating leases at November 2, 2019: Operating Fiscal Years Leases 2020 $ 79,789 2021 67,993 2022 40,338 2023 37,673 2024 32,757 Later Years 190,171 Total $ 448,721 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesFrom 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, among other things, contractual matters, patents, trademarks, personal injury, environmental matters, product liability, insurance coverage, employment or employment benefits. 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 |
Nov. 02, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The Company and its subsidiaries have various savings and retirement plans covering substantially all employees. Defined Contribution Plans The Company maintains a defined contribution plan for the benefit of its eligible U.S. employees. This plan provides for Company contributions of up to 5% of each participant’s total eligible compensation. In addition, the Company contributes an amount equal to each participant’s pre-tax contribution, if any, up to a maximum of 3% of each participant’s total eligible compensation. The total expense related to the defined contribution plans for U.S. employees was $47.7 million in fiscal 2019, $41.4 million in fiscal 2018 and $35.8 million in fiscal 2017. Non-Qualified Deferred Compensation Plan The Deferred Compensation Plan (DCP) 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 DCP was established to provide participants with the opportunity to defer receiving all or a portion of their compensation, which includes salary, bonus, commissions and director fees. Under the DCP, the Company provides all participants (other than non-employee directors) with Company contributions equal to 8% of eligible deferred contributions. The DCP is a non-qualified plan that is maintained in a rabbi trust. The fair value of the investments held in the rabbi trust are presented separately as deferred compensation plan investments, with the current portion of the investment included in prepaid expenses and other current assets in the consolidated balance sheets. See Note 2j, Fair Value, for further information on these investments. The deferred compensation obligation represents DCP participant accumulated deferrals and earnings thereon since the inception of the DCP net of withdrawals. The deferred compensation obligation is presented separately as deferred compensation plan liability, with the current portion of the obligation in accrued liabilities in the consolidated balance sheets. The Company’s liability under the DCP is an unsecured general obligation of the Company. Defined Benefit Pension Plans 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 was $35.8 million in fiscal 2019, $36.3 million in fiscal 2018 and $33.0 million in fiscal 2017. 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 November 2, 2019 for fiscal 2019 and November 3, 2018 for fiscal 2018. Components of Net Periodic Benefit Cost Net annual periodic pension cost of non-U.S. plans for fiscal 2019, fiscal 2018 and fiscal 2017 is presented in the following table: 2019 2018 2017 Service cost $ 5,578 $ 6,891 $ 6,688 Interest cost 4,079 3,984 3,581 Expected return on plan assets (5,279) (4,559) (4,086) Amortization of prior service cost 3 1 (9) Amortization of transition obligation — 10 14 Recognized actuarial loss 1,000 1,621 1,865 Net periodic pension cost $ 5,381 $ 7,948 $ 8,053 The Company adopted ASU 2017-07 the first quarter of fiscal 2019. The service cost component of net periodic benefit cost above is recorded in Cost of sales, Research and development, Selling, marketing, general and administrate expenses within the consolidated statements of income, while the remaining components are recorded to Other, net. The prior year amounts have been reclassified to provide comparable presentation in line with the guidance in ASU 2017-07 based on amounts previously disclosed for the various components of net periodic pension cost. Benefit Obligations and Plan Assets Obligation and asset data of the Company’s non-U.S. plans at November 2, 2019 and November 3, 2018 is presented in the following table: 2019 2018 Change in Benefit Obligation Benefit obligation at beginning of year $ 123,538 $ 139,516 Service cost 5,578 6,891 Interest cost 4,079 3,984 Actuarial loss (gain) 38,210 (20,406) Benefits paid (3,053) (4,301) Exchange rate adjustment 1,296 (2,146) Benefit obligation at end of year $ 169,648 $ 123,538 Change in Plan Assets Fair value of plan assets at beginning of year $ 84,655 $ 79,616 Actual return on plan assets 12,389 (2,626) Employer contributions 4,177 13,793 Benefits paid (3,053) (4,301) Exchange rate adjustment 1,771 (1,827) Fair value of plan assets at end of year $ 99,939 $ 84,655 Reconciliation of Funded Status Funded status $ (69,709) $ (38,883) Amounts Recognized in the Balance Sheet Non-current assets $ — $ 6,569 Current liabilities (846) (767) Non-current liabilities (68,863) (44,685) Net amount recognized $ (69,709) $ (38,883) 2019 2018 Reconciliation of Amounts Recognized in the Statement of Financial Position Prior service credit (44) (44) Net loss (50,878) (20,800) Accumulated other comprehensive loss (50,922) (20,844) Accumulated contributions less than net periodic benefit cost (18,787) (18,039) Net amount recognized $ (69,709) $ (38,883) Changes Recognized in Other Comprehensive Income (Loss) Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) Net loss (gain) arising during the year $ 31,100 $ (13,220) Effect of exchange rates on amounts included in AOCI (18) (138) Amounts recognized as a component of net periodic benefit cost Amortization, settlement or curtailment recognition of net transition obligation — (10) Amortization or curtailment recognition of prior service credit (cost) — (1) Amortization or settlement recognition of net loss (1,004) (1,621) Total recognized in other comprehensive loss $ 30,078 $ (14,990) Total recognized in net periodic cost and other comprehensive loss $ 35,459 $ (7,042) Estimated amounts that will be amortized from AOCI over the next fiscal year Prior service credit (2) (2) Net loss (2,581) (1,015) Total $ (2,583) $ (1,017) The accumulated benefit obligation for non-U.S. pension plans was $138.1 million and $105.8 million at November 2, 2019 and November 3, 2018, 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 November 2, 2019 and November 3, 2018 is presented in the following table: 2019 2018 Plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 169,648 $ 46,626 Fair value of plan assets $ 99,939 $ 1,174 Plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation $ 61,019 $ 46,626 Accumulated benefit obligation $ 54,318 $ 41,701 Fair value of plan assets $ 1,305 $ 1,174 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. The projected benefit obligation was determined using the following weighted-average assumptions: 2019 2018 Discount rate 2.45 % 3.53 % Rate of increase in compensation levels 3.38 % 3.26 % Net annual periodic pension cost was determined using the following weighted average assumptions: 2019 2018 Discount rate 3.53 % 3.02 % Expected long-term return on plan assets 6.16 % 5.54 % Rate of increase in compensation levels 3.26 % 3.18 % 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 November 2, 2019 and November 3, 2018 using the same three-level hierarchy described in Note 2j, Fair Value, of these Notes to Consolidated Financial Statements: November 2, 2019 November 3, 2018 Fair Value Measurement at Reporting Date Using: Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Total Unit trust funds(1) $ — $ 4,736 $ 4,736 $ — $ 2,549 $ 2,549 Equities(1) 6,114 39,189 45,303 3,437 35,221 38,658 Fixed income securities(2) — 48,274 48,274 — 42,312 42,312 Cash and cash equivalents 1,626 — 1,626 1,136 — 1,136 Total assets measured at fair value $ 7,740 $ 92,199 $ 99,939 $ 4,573 $ 80,082 $ 84,655 _______________________________________ (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. (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. Estimated future cash flows Expected fiscal 2020 Company contributions and estimated future benefit payments are as follows: Expected Company Contributions 2020 $ 7,565 Expected Benefit Payments 2021 $ 3,027 2022 $ 2,316 2023 $ 2,899 2024 $ 3,363 2024 $ 3,363 2025 through 2028 $ 25,159 |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act of 2017 (Tax Legislation), enacted on December 22, 2017, contains significant changes to U.S. tax law, including lowering the U.S. corporate income tax rate to 21.0%, implementing a territorial tax system, and imposing a one-time tax on deemed repatriated earnings of foreign subsidiaries. As a result, the Tax Legislation reduced the U.S. statutory tax rate from 35.0% to 21.0%, effective January 1, 2018, which results in a blended statutory income tax rate for the Company of 23.4% for fiscal 2018. The Company's effective tax rate reflects the applicable tax rate in effect in the various tax jurisdictions around the world where the Company's income is earned. The reconciliation of income tax computed at the U.S. federal statutory rates to income tax expense for fiscal 2019, fiscal 2018 and fiscal 2017 is as follows: 2019 2018 (1) 2017 (1) U.S. federal statutory tax rate 21.0 % 23.4 % 35.0 % Income tax provision reconciliation: Tax at statutory rate: 312,003 $ 387,343 $ 327,161 Net foreign income subject to lower tax rate (242,893) (420,756) (395,800) State income taxes, net of federal benefit (31,265) 4,428 (7,239) Valuation allowance 34,069 2,232 (7,778) Federal research and development tax credits (50,769) (33,602) (16,475) Change in uncertain tax positions 7,233 (32,945) (51,088) Amortization of purchased intangibles 111,547 213,198 159,466 Acquisition and integration costs — — 109,040 Taxes attributable to the Tax Cuts and Jobs Act of 2017 (7,500) 56,608 — U.S. effects of international operations 19,782 — — Windfalls (under ASU 2016-09) (28,677) (26,237) — Other, net (813) (1,935) 12,081 Total income tax provision $ 122,717 $ 148,334 $ 129,368 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. Income before income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 includes the following components: 2019 2018 (1) 2017 (1) Domestic $ 484,876 $ 615,238 $ 161,248 Foreign 1,000,852 1,040,076 773,499 Income before income taxes $ 1,485,728 $ 1,655,314 $ 934,747 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. The components of the provision for income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 are as follows: 2019 2018 (1) 2017 (1) Current: Federal tax $ 74,049 $ 824,848 $ 868,051 State 2 6,043 8,594 Foreign 139,919 47,819 63,121 Total current $ 213,970 $ 878,710 $ 939,766 Deferred: Federal $ (158,472) $ (738,163) $ (780,310) State (3,627) 1,092 (23,982) Foreign 70,846 6,695 (6,106) Total deferred $ (91,253) $ (730,376) $ (810,398) Provision for income tax $ 122,717 $ 148,334 $ 129,368 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. In fiscal 2018, the Company recorded a $637.0 million tax benefit for the re-measurement of deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21.0%. In addition, in fiscal 2018, the Company recorded a provisional tax expense amount for the one-time transition tax of $691.0 million, which is comprised of the $755.0 million transition tax liability less a deferred tax liability of $64.0 million that was recorded in prior years. In the first quarter of fiscal 2019, the Company completed its accounting for the income tax effects of the Tax Legislation, in accordance with the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 and adjusted its provisional net charge by recording an additional tax benefit of $7.5 million for a change to its estimate for the transition tax due to the finalization of the aggregate foreign cash positions. Additionally, the Tax Legislation subjects a U.S. shareholder to tax on global intangible low-taxed income (GILTI). Under U.S. GAAP, an accounting policy election can be made to either treat taxes due on the GILTI inclusion as a current period expense or to recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years. The Company elected the deferral method and recorded the corresponding GILTI deferred tax assets and liabilities on its consolidated balance sheets. The Company carries other outside basis differences in its subsidiaries, primarily arising from purchase accounting adjustments and undistributed earnings that are considered indefinitely reinvested. As of November 2, 2019, the Company has not recognized deferred income tax on $22.8 billion of outside basis differences because of its intent and ability to indefinitely reinvest these basis differences. These basis differences could be reversed through a sale of the subsidiaries or the receipt of dividends from the subsidiaries, as well as various other events, none of which are considered probable at this time. Determination of the amount of unrecognized deferred income tax liability related to these outside basis differences is not practicable. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019 using the modified retrospective method with a cumulative-effect adjustment directly to retained earnings. The adoption of ASU 2016-16 resulted in a net cumulative-effect adjustment that resulted in an increase in retained earnings of $331.0 million, by recording new deferred tax assets from intra-entity transfers involving assets other than inventory, partially offset by a U.S. deferred tax liability related to GILTI. Adoption of the standard resulted in an increase in long-term deferred tax assets of $1.7 billion and an increase in long-term deferred tax liabilities of $1.3 billion. The significant components of the Company’s deferred tax assets and liabilities for fiscal 2019 and fiscal 2018 are as follows: 2019 2018 (1) Deferred tax assets: Inventory reserves $ 21,081 $ 22,184 Reserves for compensation and benefits 53,090 39,185 Tax credit carryovers 133,485 112,851 Stock-based compensation 63,589 53,105 Net operating losses 5,299 5,997 Intra-entity transfer of intangible assets 1,567,536 — Other 70,974 36,898 Total gross deferred tax assets 1,915,054 270,220 Valuation allowance (116,349) (82,280) Total deferred tax assets 1,798,705 187,940 Deferred tax liabilities: Depreciation (38,464) (37,023) Deferred GILTI tax liabilities (1,254,029) — Acquisition-related intangible (1,012,042) (1,129,747) Other — (1,914) Total gross deferred tax liabilities (2,304,535) (1,168,684) Net deferred tax liabilities $ (505,830) $ (980,744) _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. The valuation allowances of $116.3 million and $82.3 million at November 2, 2019 and November 3, 2018, respectively, are valuation allowances primarily for the Company’s state credit carryforwards. 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 partial valuation allowance. The state credit carryover of $133.5 million will begin to expire in 2020. As of November 2, 2019 and November 3, 2018, the Company had gross unrealized tax benefits of $34.3 million and $13.3 million, respectively, which if settled in the Company's favor, would lower the Company's effective tax rate in the period recorded. Liabilities for uncertain tax benefits are classified as non-current because the Company believes that the ultimate payment or settlement of these liabilities may not occur within the next twelve months. As of November 2, 2019 and November 3, 2018, the Company had a liability of approximately $4.7 million and $3.5 million, respectively, for interest and penalties, which is included within the provision for taxes in the consolidated statements of income. The consolidated statements of income for fiscal year 2019, fiscal 2018 and fiscal 2017 include $1.5 million, $7.3 million and $12.3 million, respectively, of interest and penalties related to these uncertain tax positions. The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2017 through fiscal 2019: Unrealized Tax Benefits 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 Additions for tax positions related to current year 1,334 Reductions for tax positions related to prior years (295) Reductions due to lapse of applicable statute of limitations (25,640) Balance, November 3, 2018 $ 13,256 Additions for tax positions related to current year 3,398 Additions for tax positions related to prior years 18,613 Reductions due to lapse of applicable statute of limitations (924) Balance, November 2, 2019 $ 34,343 In fiscal 2017 the Company released a reserve of $50.5 million, which was comprised of the $41.7 million in accrued tax and $8.8 million of accrued net interest due to favorable settlement with the U.S. Tax Court. The settled issue 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. In fiscal 2018, the Company released reserves of $18.1 million relating to certain international transfer pricing matters, $4.2 million relating to worthless stock deductions and $3.3 million relating to other releases in fiscal year 2013 due to the lapse of the statute of limitations. With accrued interest of $9.9 million, the released reserves totaled $35.5 million. In fiscal 2019, the Company has reflected an unrealized tax benefit related to a refund claim of $11.4 million on a recently filed amended tax return that is currently being reviewed by the Joint Committee on Taxation. The Company has numerous audits ongoing at any time throughout the world including: an Internal Revenue Service income tax audit for Linear’s pre-acquisition fiscal years 2015, 2016, and 2017; various U.S. state and local tax audits; and international audits, including the transfer pricing audit in Ireland discussed below. Except for the Linear pre-acquisition audit years, the Company’s U.S. federal tax returns prior to fiscal year ended October 29, 2016 are no longer subject to examination. The Company’s Ireland tax returns prior to fiscal year ended November 2, 2013 are no longer subject to examination. During the fourth quarter of fiscal 2018, the Company’s Irish tax resident subsidiary received an assessment for fiscal 2013 of approximately €43.0 million, or $48.0 million (as of November 2, 2019), from the Irish Revenue Commissioners (Irish Revenue). This assessment excludes any penalties and interest. The assessment claims that the Company’s Irish entity failed to conform to 2010 OECD Transfer Pricing Guidelines. The Company strongly disagrees with the assessment and maintains that its transfer pricing is appropriate. Therefore, the Company has not recorded any additional tax liability related to fiscal 2013 or any other periods. The Company intends to vigorously defend its originally filed tax return position and is currently preparing for an appeal with the Irish Tax Appeals Commission, which is the normal process for the resolution of differences between Irish Revenue and taxpayers. If Irish Revenue were ultimately to prevail with respect to its assessment for fiscal 2013, such assessment and any potential impact related to years subsequent to 2013 could have a material unfavorable impact on the Company's income tax expense and net earnings in future periods. During the first quarter of fiscal 2019, Irish Revenue commenced transfer pricing audits of the fiscal years ended November 1, 2014; October 31, 2015; October 29, 2016; and October 28, 2017. During the fourth quarter of fiscal 2019, the Company received confirmation from Irish Revenue that the audit relating to the period ended November 1, 2014 was complete and that no further tax assessment arose in respect of that period. The audits related to fiscal 2015, fiscal 2016 and fiscal 2017 are on-going. The Company has a partial tax holiday in Malaysia whereby the local statutory rate is significantly reduced, if certain conditions are met. The tax holiday for Malaysia is effective through July 2025. A partial tax holiday in Singapore was terminated in September 2018 through negotiations with the Economic Development Board. The impact of the Singapore and |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Nov. 02, 2019 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Facility | Revolving Credit FacilityOn June 28, 2019, the Company entered into a second amended and restated revolving credit agreement with certain institutional lenders that expires on June 28, 2024. The agreement for such revolving credit facility (Revolving Credit Agreement), which further amended and restated our amended and restated revolving credit agreement dated as of September 23, 2016, provides for a five |
Debt
Debt | 12 Months Ended |
Nov. 02, 2019 | |
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 November 2, 2019, 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 November 2, 2019, 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 (2016 Term Loan Agreement). On the Acquisition Date, the Company borrowed under the 2016 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 required 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 could be made at any time without penalty. The term loans bore 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 2016 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 amortized them to expense pro-rata over the term of the instrument, accelerating proportionally with any prepayment. During fiscal 2017, fiscal 2018 and fiscal 2019, the Company made various payments on both the 3-year and 5- year term loans. During fiscal 2019, the Company repaid these 3-year and 5-year term loans in full. 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 November 2, 2019, 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. On March 12, 2018, in an underwritten public offering , the Company issued $300.0 million aggregate principal amount of 2.850% senior unsecured notes due March 12, 2020 (the 2020 Notes) and $450.0 million aggregate principal amount of 2.950% senior unsecured notes due January 12, 2021 (the January 2021 Notes and, together with the 2020 Notes, the 2018 Note Offerings). Interest on the 2020 Notes is payable on March 12 and September 12 of each year, beginning on September 12, 2018. Interest on the January 2021 Notes is payable on January 12 and July 12 of each year, beginning on July 12, 2018. The net proceeds of the offering were $743.8 million, after discount and issuance costs, which were used to repay a portion of the Company’s outstanding 5-year term loan. Debt discount and issuance costs will be amortized through interest expense over the term of the 2018 Note Offerings. At any time prior to the applicable maturity date of the 2018 Note Offerings, the Company may, at its option, redeem some or all of the applicable series of the 2018 Note Offerings by paying a make-whole premium, plus accrued and unpaid interest, if any, to the date of redemption. The 2018 Note Offerings are unsecured and rank equally in right of payment with all of the Company’s other unsecured senior indebtedness. The 2018 Note Offerings 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 November 2, 2019, the Company was in compliance with these covenants. On June 28, 2019, the Company entered into a term loan credit agreement (Term Loan Agreement) with the Company as the borrower and JPMorgan Chase Bank, N.A. as administrative agent and the other banks identified therein as lenders, under which the Company borrowed unsecured term loans in the aggregate principal amount of $1.25 billion, maturing on March 10, 2022. Loans under the term loan credit agreement bear interest, at the Company’s option, at either a rate equal to (a) the Adjusted LIBO Rate (as defined in the Term Loan Agreement) plus a margin based on the Company’s debt rating or (b) the Base Rate (defined as the highest of (i) the prime rate, (ii) the NYFRB Rate (as defined in the Term Loan Agreement) plus 0.50%, and (iii) one month Adjusted LIBO Rate plus 1.00%) plus a margin based on the Company’s debt rating. The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants and events of default applicable to the Company and its subsidiaries. The events of default include, among others, nonpayment of principal, interest, fees or other amounts, failure to perform certain covenants, cross-defaults to certain other indebtedness, insolvency or bankruptcy, customary ERISA defaults or the occurrence of a change of control. The negative covenants include limitations on liens, indebtedness of non-guarantor subsidiaries and mergers and other fundamental changes, among others. The Term Loan Agreement also requires the Company to maintain a consolidated leverage ratio of total consolidated funded debt to consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) for a trailing twelve-month period of not greater than 4.0 to 1.0. The covenant will be reduced to 3.5 to 1.0 beginning in fiscal year 2020, assuming the Company does not undertake any significant acquisitions, mergers, and other fundamental changes. Should such a change occur, the Company may be authorized to increase the covenant back to 4.0 to 1.0. As of November 2, 2019, the Company was compliant with these covenants. In fiscal 2019, the Company made principal payments on the term loans in the amount of $325.0 million. These amounts were not contractually due under the terms of the term loan credit agreement. The Company’s debt consisted of the following as of November 2, 2019 and November 3, 2018: November 2, 2019 November 3, 2018 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 3-Year term loan, due March 2022 $ 925,000 $ — $ — $ — 3-Year term loan, due March 2020 — — 358,000 318 5-Year term loan, due March 2022 — — 1,350,000 1,503 2020 Notes, due March 2020 — — 300,000 1,273 2021 Notes, due January 2021 450,000 1,819 450,000 3,344 2021 Notes, due December 2021 400,000 1,918 400,000 2,830 2023 Notes, due June 2023 500,000 2,200 500,000 2,813 2023 Notes, due December 2023 550,000 3,619 550,000 4,499 2025 Notes, due December 2025 850,000 5,382 850,000 6,262 2026 Notes, due December 2026 900,000 9,086 900,000 10,361 2036 Notes, due December 2036 250,000 3,576 250,000 3,778 2045 Notes, due December 2045 400,000 5,148 400,000 5,345 Total Long-Term Debt $ 5,225,000 $ 32,748 $ 6,308,000 $ 42,326 2020 Notes, due March 2020 300,000 333 — — 3-Year term loan, due March 2020, current — — 67,000 — Total Current Debt $ 300,000 $ 333 $ 67,000 $ — Total Debt $ 5,525,000 $ 33,081 $ 6,375,000 $ 42,326 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Nov. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn November 25, 2019, the Board of Directors of the Company declared a cash dividend of $0.54 per outstanding share of common stock. The dividend will be paid on December 17, 2019 to all shareholders of record at the close of business on December 6, 2019. |
Supplementary Financial Informa
Supplementary Financial Information (Unaudited) | 12 Months Ended |
Nov. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) | SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) (thousands, except per share amounts) 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 2019 is a 52-week fiscal year. Fiscal 2018 was a 53-week fiscal year. The Company's interim periods operate 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 additional week in fiscal 2018 was included in the first quarter ended February 3, 2018. Therefore, fiscal 2018 included an additional week of operations as compared to fiscal 2019. 4Q19 3Q19 2Q19 1Q19 4Q18 (1) 3Q18 (1) 2Q18 (1) 1Q18 (1) Revenue $ 1,443,219 $ 1,480,143 $ 1,526,602 $ 1,541,101 $ 1,536,128 $ 1,558,189 $ 1,563,502 $ 1,566,870 Cost of sales 501,028 482,332 492,510 501,445 490,585 497,557 491,038 495,113 Gross margin 942,191 997,811 1,034,092 1,039,656 1,045,543 1,060,632 1,072,464 1,071,757 % of Revenue 65.3 % 67.4 % 67.7 % 67.5 % 68.1 % 68.1 % 68.6 % 68.4 % Research and development 277,018 280,102 285,846 287,382 295,609 291,551 289,381 288,506 Selling, marketing, general and administrative 154,799 162,825 163,128 167,342 175,296 171,388 172,047 176,809 Special charges (2) 64,788 927 8,162 21,782 1,842 1,069 1,089 57,318 Amortization of intangibles 107,225 107,231 107,261 107,324 107,345 107,409 107,129 107,019 Total operating expenses 603,830 551,085 564,397 583,830 580,092 571,417 569,646 629,652 Operating income 338,361 446,726 469,695 455,826 465,451 489,215 502,818 442,105 % of Revenue 23 % 30 % 31 % 30 % 30 % 31 % 32 % 28 % Nonoperating (income) expenses: Interest expense 50,775 59,871 59,701 58,728 59,102 61,665 64,792 68,030 Interest income (1,988) (2,625) (2,928) (2,688) (2,791) (2,588) (1,912) (2,092) Other, net 1,747 (78) 4,525 (160) (196) (368) (187) 820 Total nonoperating (income) expense 50,534 57,168 61,298 55,880 56,115 58,709 62,693 66,758 Income before income taxes 287,827 389,558 408,397 399,946 409,336 430,506 440,125 375,347 % of Revenue 20 % 26 % 27 % 26 % 27 % 28 % 28 % 24 % Provision for income taxes (3) 10,133 27,184 40,460 44,940 4,481 21,949 39,797 82,107 Net income $ 277,694 $ 362,374 $ 367,937 $ 355,006 $ 404,855 $ 408,557 $ 400,328 $ 293,240 % of Revenue 19 % 24 % 24 % 23 % 26 % 26 % 26 % 19 % Net income allocable to common shares (4) $ 277,182 $ 361,562 $ 367,029 $ 353,969 $ 403,511 $ 407,031 $ 398,796 $ 291,997 Basic earnings per common share $ 0.75 $ 0.98 $ 0.99 $ 0.96 $ 1.09 $ 1.10 $ 1.08 $ 0.79 Diluted earnings per common share $ 0.74 $ 0.97 $ 0.98 $ 0.95 $ 1.08 $ 1.08 $ 1.06 $ 0.78 Shares used to compute earnings per share (in thousands): Basic 369,051 369,533 369,246 368,703 371,074 371,315 370,384 369,093 Diluted 372,584 373,077 373,342 372,506 375,116 375,815 374,778 374,189 Dividends declared per share $ 0.54 $ 0.54 $ 0.54 $ 0.48 $ 0.48 $ 0.48 $ 0.48 $ 0.45 _______________________________________ (1) Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. (2) Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. (3) See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Nov. 02, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Years ended November 2, 2019, November 3, 2018 and October 28, 2017 (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 28, 2017 $ 5,117 $ 12,284 $ — $ 10,188 $ 7,213 Year ended November 3, 2018 $ 7,213 $ 2,313 $ — $ 7,242 $ 2,284 Year ended November 2, 2019 $ 2,284 $ 13,979 $ — $ 7,876 $ 8,387 Valuation Reserve for Deferred Tax Asset: Year ended October 28, 2017 $ 67,094 $ (7,778) $ — $ 5,529 $ 53,787 Year ended November 3, 2018 $ 53,787 $ 30,254 $ (1,761) $ — $ 82,280 Year ended November 2, 2019 $ 82,280 $ 34,069 $ — $ — $ 116,349 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 02, 2019 | |
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 November 2, 2019 (fiscal 2019). 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 2019 and fiscal 2017 were 52-week fiscal periods, while fiscal 2018 was a 53-week period. The additional week in fiscal 2018 was included in the first quarter ended February 3, 2018. Therefore, fiscal 2018 included an additional week of operations as compared to fiscal 2019 and fiscal 2017. On March 10, 2017 (Acquisition Date), the Company completed the acquisition of all of the voting interests of Linear Technology Corporation (Linear), an independent manufacturer 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. As further discussed in Note 2n, Revenue Recognition, the Company adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09), in the first quarter of fiscal 2019. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period showing, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized as of the date of initial application. The Company adopted ASU 2014-09 using the full retrospective method and applied the practical expedient, in which the Company is not required to disclose the amount of consideration allocated to any remaining performance obligations or an explanation of when the Company expects to recognize that amount as revenue for all reporting periods presented before the date of the initial application. As a result of the adoption of ASU 2014-09, the Company changed its accounting policy for revenue recognition and recognizes revenue from product sales to its customers and distributors when title passes, which is generally upon shipment. Prior to the adoption of ASU 2014-09, revenue and the related cost of sales on shipments to certain distributors were deferred until the distributor resold the products to their end customers. See Note 2n, Revenue Recognition, in these Notes to Consolidated Financial Statements for the details of the Company’s revenue recognition policies. The adoption of ASU 2014-09 impacted the Company’s consolidated statements of income and consolidated balance sheets but did not impact its consolidated statements of cash flows, with the exceptions of net income and reclassifications within adjustments to reconcile net income to cash provided by operations, and did not impact the consolidated statement of shareholders' equity, with the exceptions of retained earnings and net income. As shown in the tables below, pursuant to the guidance in ASU 2014-09, the Company restated its historical financial results to be consistent with the standard. Accordingly, the amounts for fiscal 2019, fiscal 2018 and fiscal 2017 periods presented in this Form 10-K reflect the impact of ASU 2014-09. In addition, the Company adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost in the first quarter of fiscal 2019. Under this ASU, the service cost component of net periodic benefit cost is recorded in Cost of sales, Research and development, Selling, marketing, general and administrate expenses, while the remaining components are recorded to Other, net within the Company's consolidated statements of income. As such, the prior year amounts have been reclassified to provide comparable presentation in line with the guidance in ASU 2017-07 based on amounts previously disclosed for the various components of net periodic pension cost. See Note 11, Retirement Plans, in these Notes to Consolidated Financial Statements for more information on the adoption of ASU 2017-07. The tables below reconcile the impact of ASU 2014-09 and ASU 2017-07 on the consolidated statements of income: Year Ended November 3, 2018 Consolidated Statement of Income As Reported Impact of Adoption of ASU 2014-09 Impact of Adoption of ASU 2017-07 As Adjusted Revenue $ 6,200,942 $ 23,747 $ — $ 6,224,689 Cost of sales 1,967,640 6,950 (297) 1,974,293 Gross margin 4,233,302 16,797 297 4,250,396 Operating expenses: Research and development 1,165,410 — (363) 1,165,047 Selling, marketing, general and administrative 695,937 — (397) 695,540 Amortization of intangibles 428,902 — — 428,902 Special charges 61,318 — — 61,318 2,351,567 — (760) 2,350,807 Operating income 1,881,735 16,797 1,057 1,899,589 Nonoperating expense (income): Interest expense 253,589 — — 253,589 Interest income (9,383) — — (9,383) Other, net (988) — 1,057 69 243,218 — 1,057 244,275 Income before income taxes 1,638,517 16,797 — 1,655,314 Provision for income taxes 143,085 5,249 — 148,334 Net income $ 1,495,432 $ 11,548 $ — $ 1,506,980 Shares used to compute earnings per common share – basic 370,430 — — 370,430 Shares used to compute earnings per common share – diluted 374,938 — — 374,938 Basic earnings per common share $ 4.02 $ 0.03 $ — $ 4.05 Diluted earnings per common share $ 3.97 $ 0.03 $ — $ 4.00 |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 and cash equivalents 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 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 (AOCI). Adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease in AOCI, unless the adjustment is considered an other-than-temporary impairment, in which case the adjustment is recorded as a charge in the consolidated statements of income. The Company’s deferred compensation plan investments are classified as trading. See Note 2j, Fair Value and Note 11, Retirement Plans, of these Notes to Consolidated Financial Statements for additional information on these investments. The Company periodically evaluates its investments for impairment. There were no other-than-temporary impairments of 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 2019 2018 2017 Cash paid during the fiscal year for: Income taxes $ 205,762 $ 211,473 $ 868,492 Interest $ 216,143 $ 233,436 $ 183,117 |
Inventories | InventoriesInventories 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 Leasehold improvements 7-20 years Depreciation expense for property, plant and equipment was $240.7 million, $228.5 million and $194.7 million in fiscal 2019, 2018 and 2017, respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company evaluates goodwill for impairment annually, utilizing either the qualitative or quantitative method, 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 the Company has determined is consistent with our eight identified operating segments, on an annual basis on the first day of the fourth quarter (on or about August 4) or more frequently if indicators of impairment exist or the Company reorganizes its reporting units. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its net book value. If the Company elects not to use this option, or it determines that it is more likely than not that the fair value of a reporting unit is less than its net book value, then the Company performs the quantitative goodwill impairment test. In the Company's annual impairment evaluation that occurred for fiscal 2019, management used the qualitative method of assessing goodwill for seven of its eight reporting units and the quantitative method for one reporting unit. In fiscal 2018, the Company used the qualitative method for all eight of its identified reporting units. For each of the reporting units evaluated using the qualitative method in fiscal 2019 and fiscal 2018, the Company determined that it was not more likely than not that the fair values were less than their net book values. In making this determination, the Company considered several factors, including the following: – the amount by which the fair values of each reporting unit exceeded their carrying values as of the date of the most recent quantitative impairment analysis, which indicated there would need to be substantial negative developments in the markets in which these reporting units operate in order for there to be potential impairment; – the carrying values of these reporting units as of the first day of the fourth quarter compared to the previously calculated fair values as of the date of the most recent quantitative impairment analysis; – the Company's current forecasts as compared to the forecasts included in the most recent quantitative impairment analysis; – public information from competitors and other industry information to determine if there were any significant adverse trends in our competitors' businesses, such as significant declines in market capitalization or significant goodwill impairment charges that could be an indication that the goodwill of our reporting units was potentially impaired; – changes in the value of major U.S. stock indices that could suggest declines in overall market stability that could impact the valuation of our reporting units; – changes in our market capitalization and overall enterprise valuation to determine if there were any significant decreases that could be an indication that the valuation of our reporting units had significantly decreased; and – whether there had been any significant increases to the weighted-average cost of capital (WACC) rates for each reporting unit, which could materially lower our prior valuation conclusions under a discounted cash flow approach. As a result of the quantitative goodwill impairment analysis performed in fiscal 2019 for one of the Company's reporting units, the Company concluded the reporting unit’s fair value exceeded its carrying amount as of the assessment date and no risk of impairment existed. The first step of the goodwill impairment test requires an entity to compare the fair value of a reporting unit with its carrying amount. The Company determined the fair value of its reporting unit using a weighting of the income and market approaches. Under the income approach, the Company used a discounted cash flow methodology which required management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company used the guideline public company method. Under this method the Company utilized information from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit, to estimate valuation multiples that are applied to the operating performance of the reporting unit, in order to estimate its fair value. There was no impairment of goodwill in any of the fiscal years presented. The Company’s next annual impairment assessment will be performed as of the first day of the fourth quarter of the fiscal year ending October 31, 2020 (fiscal 2020) unless indicators arise that would require the Company to reevaluate at an earlier date. The following table presents the changes in goodwill during fiscal 2019 and fiscal 2018: 2019 2018 Balance at beginning of year $ 12,252,604 $ 12,217,455 Acquisition of Linear (Note 6) — 1,647 Goodwill adjustment related to other acquisitions (1) 6,702 36,558 Foreign currency translation adjustment (2,426) (3,056) Balance at end of year $ 12,256,880 $ 12,252,604 _______________________________________ (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. If required, 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. 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. During fiscal 2019, the company recorded $14.2 million of special charges related to the write-off of acquired intellectual property, classified as IPR&D, due to the Company's decision to discontinue certain product development strategies. |
Grant Accounting | Grant AccountingCertain 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 2019, fiscal 2018 or fiscal 2017. |
Translation of Foreign Currencies | Translation of Foreign CurrenciesThe 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 AOCI. 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, net, were not material in fiscal 2019, 2018 or 2017. |
Derivatives, foreign exchange exposure management | 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. Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified. 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 matched with the underlying exposures at inception and designated and documented as cash flow hedges. They are qualitatively evaluated for effectiveness on a quarterly basis. The gain or loss on the derivatives are reported as a component of AOCI in shareholders’ equity and reclassified into earnings in the same line item on the consolidated statements of income as the impact of the hedged transaction in the same period during which the hedged transaction affects earnings. |
Derivatives, interest rate exposure management | 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 the changes in interest rates. During fiscal 2019, the Company entered into an interest rate swap agreement which locked in the interest rate for up to $1 billion in future debt issuances. The interest rate swap was designated and qualified as a cash flow hedge. The fair value of this hedge was $138.8 million as of November 2, 2019 and is included within accrued liabilities in the Company's consolidated balance sheets. 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 November 2, 2019 and November 3, 2018, 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, accrued liabilities and other non-current 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 in the same line item on the consolidated statements of income as the impact of the hedged transaction when the underlying contract matures. Changes in the fair values of derivatives not qualifying for hedge accounting are reported in earnings as they occur. For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the consolidated statements of income related to forward foreign currency exchange contracts, see Note 2o, Accumulated Other Comprehensive (Loss) Income of these Notes to Consolidated Financial Statements. |
Fair Value | Fair Value The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. |
Fair Value, Assumptions | The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash equivalents — These investments are adjusted to fair value based on quoted market prices or are determined using a yield curve model based on current market rates. Deferred compensation plan investments — The fair value of these mutual fund, money market fund and equity investments are based on quoted market prices. Interest rate derivatives — The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates relate to the useful lives of fixed assets and identified intangible assets; allowances for doubtful accounts and customer returns; the net realizable value of inventory; potential reserves relating to litigation matters; accrued liabilities, including estimates of variable consideration related to distributor sales; accrued taxes; uncertain tax positions; deferred tax valuation allowances; assumptions pertaining to stock-based compensation payments and defined benefit plans; and fair value of acquired assets and liabilities, including inventory, property, plant and equipment, goodwill, 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 and cash equivalents 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. |
Concentration of Other Risks | Concentration of Other RisksThe 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, such as Taiwan Semiconductor Manufacturing Company (TSMC) and others. If these suppliers 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 Recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the providing entity expects to be entitled in exchange for those goods or services. As a result of the adoption of new revenue accounting rules in the first quarter of fiscal 2019, the Company revised its revenue recognition policy. The Company now recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Under this rule, the Company recognizes revenue when all of the following criteria are met: (1) the Company has entered into a binding agreement, (2) the performance obligations have been identified, (3) the transaction price to the customer has been determined, (4) the transaction price has been allocated to the performance obligations in the contract, and (5) the performance obligations have been satisfied. The majority of the Company's shipping terms permit the Company to recognize revenue at point of shipment or delivery. Certain shipping terms require the goods to be through customs or be received by the customer before title passes. In those instances, the Company defers the revenue recognized until title has passed. Shipping costs are charged to selling, marketing, general and administrative expense as incurred. Sales taxes are excluded from revenue. Revenue from contracts with the United States government, government prime contractors and certain commercial customers is recorded over time using either units delivered or costs incurred as the measurement basis for progress toward completion. These measures are used to measure results directly and is generally the best measure of progress toward completion in circumstances in which a reliable measure of output can be established. Estimated revenue in excess of amounts billed is reported as unbilled receivables. Contract accounting requires judgment in estimating costs and assumptions related to technical issues and delivery schedule. Contract costs include material, subcontract costs, labor and an allocation of indirect costs. The estimation of costs at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Changes in contract performance, estimated gross margin, including the impact of final contract settlements, and estimated losses are recognized in the period in which the changes or losses are determined. Performance Obligations : Substantially all of the Company’s contracts with customers contain a single performance obligation, the sale of mixed-signal integrated circuit (IC) products. Such sales represent a single performance obligation because the sale is one type of good or includes multiple goods that are neither capable of being distinct nor separable from the other promises in the contract. This performance obligation is satisfied when control of the product is transferred to the customer, which occurs upon shipment or delivery. Unsatisfied performance obligations primarily represent contracts for products with future delivery dates and with an original expected duration of one year or less. As allowed under ASU 2014-09, the Company has opted to not disclose the amount of unsatisfied performance obligations as these contracts have original expected durations of less than one year. 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. Transaction Price : The transaction price reflects the Company’s expectations about the consideration it will be entitled to receive from the customer and may include fixed or variable amounts. Fixed consideration primarily includes sales to direct customers and sales to distributors in which both the sale to the distributor and the sale to the end customer occur within the same reporting period. Variable consideration includes sales in which the amount of consideration that the Company will receive is unknown as of the end of a reporting period. Such consideration primarily includes credits issued to the distributor due to price protection and sales made to distributors under agreements that allow certain rights of return, referred to as stock rotation. Price protection represents price discounts granted to certain distributors to allow the distributor to earn an appropriate margin on sales negotiated with certain customers and in the event of a price decrease subsequent to the date the product was shipped and billed to the distributor. Stock rotation allows distributors limited levels of returns in order to reduce the amounts of slow-moving, discontinued or obsolete product from their inventory. A liability for distributor credits covering variable consideration is made based on the Company's estimate of historical experience rates as well as considering economic conditions and contractual terms. To date, actual distributor claims activity has been materially consistent with the provisions the Company has made based on its historical estimates. For the years ended November 2, 2019 and November 3, 2018, sales to distributors were $3.4 billion in both periods, net of variable consideration for which the liability balances as of November 2, 2019 and November 3, 2018 were $227.0 million and $144.9 million, respectively. Contract Balances : Accounts receivable represents the Company’s unconditional right to receive consideration from its customers. Payments are typically due within 30 to 45 days of invoicing and do not include a significant financing component. To date, there have been no material impairment losses on accounts receivable. There were no material contract assets or contract liabilities recorded on the consolidated balance sheets in any of the periods presented. The Company generally warrants that products will meet their published specifications and that the Company will repair or replace defective products for twelve |
Income Taxes | Income TaxesDeferred 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 12, 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 CompensationStock-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 four years for stock options and restricted stock units, or in annual installments of 25% on each of the first, second, third and fourth anniversaries of the date of grant. For grants issued prior to fiscal 2018, the vesting period was 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 in one installment on the third anniversary of the date of grant for restricted stock units/awards. Determining the amount of stock-based compensation to be recorded for stock options 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. The use of valuation models requires the Company to make estimates and assumptions, such as expected volatility, expected term, risk-free interest rate, expected dividend yield and forfeiture rates. The grant-date fair value of restricted stock units with only a service condition represents the value of the Company's common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company's common stock prior to vesting. See Note 3, Stock-Based Compensation and Shareholders' Equity, of these Notes to Consolidated Financial Statements for additional information relating to stock-based compensation. |
New Accounting Pronouncements | New Accounting Pronouncements Standards Implemented Revenue Recognition In May 2014, the FASB issued 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 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. The Company adopted ASU 2014-09 in the first quarter of fiscal 2019 using the full retrospective method and restated prior periods. As a result of the adoption of ASU 2014-09 the Company changed its accounting policy for revenue recognition. See Note 2a, Principles of Consolidation, and Note 2n, Revenue Recognition, in these Notes to Consolidated Financial Statements for details of the impact of ASU 2014-09 on the Company's financial statements. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) (ASU 2016-16). ASU 2016-16 requires 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. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019 using the modified retrospective method with a cumulative-effect adjustment directly to retained earnings. The adoption of ASU 2016-16 resulted in a net cumulative-effect adjustment that resulted in an increase in retained earnings of $331.0 million, by recording new deferred tax assets from intra-entity transfers involving assets other than inventory, partially offset by a U.S. deferred tax liability related to GILTI. Adoption of the standard resulted in an increase in long-term deferred tax assets of $1.7 billion and an increase in long-term deferred tax liabilities of $1.3 billion. Other The following standards were adopted during the first quarter of fiscal 2019 and did not have a material impact on the Company's financial position and results of operations: • ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. • ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. • ASU 2017-07, Improving the Presentation of Net Period Pension Cost and Net Period Postretirement Benefit Cost. • ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. Standards to Be Implemented Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). ASU 2018-02 allows for reclassification of stranded tax effects resulting from the Tax Legislation from AOCI to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. ASU 2018-02 is effective for the Company in the first quarter of the fiscal year ending October 31, 2020 (fiscal 2020). The Company is currently evaluating the adoption date and the impact, 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. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 (ASU 2018-01). ASU 2018-01 permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements (Topic 842) (ASU 2018-11), which provides for an additional transition method that allows companies to apply the new lease standard at the adoption date, eliminating the requirement to apply the standard to the earliest period presented in the financial statements. ASU 2016-02, ASU 2018-01 and ASU 2018-11 are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU 2016-02 and ASU 2018-01 are effective for the Company in the first quarter of fiscal 2020. The Company is nearing completion in assessing all potential aspects of the standard on its Consolidated Financial Statements and related disclosures and expects that there will be an increase in assets and liabilities on the consolidated balance sheets at adoption due to the recognition of right-of-use assets and related lease liabilities, which the Company expects to be recorded using an incremental borrowing rate. The Company plans to adopt the standard using the transition method provided by ASC 2018-11, in which prior periods will not be adjusted, and also plans to apply the package of practical expedients permitted under the transition guidance to its lease portfolio. At November 2, 2019, the Company was contractually obligated to make future payments of approximately $0.4 billion under its operating lease obligations in existence as of that date, primarily related to long-term facility leases. The Company does not expect the adoption of ASU 2016-02, ASU 2018-01 and ASU 2018-11 to have a material impact on its results of operations. See Note 9, Lease Commitments, in these Notes to Consolidated Financial Statements for information regarding our leases under Accounting Standard Codification Topic 840, Leases. Retirement Benefits In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14), which modifies the disclosure requirements for defined benefit pension plans and other post-retirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. ASU 2018-14 is effective for the Company in the first quarter of the fiscal year ending October 30, 2021 (fiscal 2021). The Company is currently evaluating the adoption date. The adoption of ASU 2018-14 will modify the Company's disclosures for defined benefit plans and other post-retirement plans but is not expected to impact its financial position or 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. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief (ASU 2019-05). ASU 2019-05 allows an entity to irrevocably elect the fair value option for certain financial instruments. Once elected, an entity would recognize the difference between the carrying amount and the fair value of the financial instrument as part of the cumulative effect adjustments associated with the adoption of ASU 2016-13. ASU 2016-13 and ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. ASU 2016-13 and ASU 2019-05 are effective for the Company in the first quarter of fiscal 2021. The Company is currently evaluating the adoption date and the impact, if any, adoption will have on its financial position and results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | As a result of the adoption of ASU 2014-09, the Company changed its accounting policy for revenue recognition and recognizes revenue from product sales to its customers and distributors when title passes, which is generally upon shipment. Prior to the adoption of ASU 2014-09, revenue and the related cost of sales on shipments to certain distributors were deferred until the distributor resold the products to their end customers. See Note 2n, Revenue Recognition, in these Notes to Consolidated Financial Statements for the details of the Company’s revenue recognition policies. The adoption of ASU 2014-09 impacted the Company’s consolidated statements of income and consolidated balance sheets but did not impact its consolidated statements of cash flows, with the exceptions of net income and reclassifications within adjustments to reconcile net income to cash provided by operations, and did not impact the consolidated statement of shareholders' equity, with the exceptions of retained earnings and net income. As shown in the tables below, pursuant to the guidance in ASU 2014-09, the Company restated its historical financial results to be consistent with the standard. Accordingly, the amounts for fiscal 2019, fiscal 2018 and fiscal 2017 periods presented in this Form 10-K reflect the impact of ASU 2014-09. In addition, the Company adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost in the first quarter of fiscal 2019. Under this ASU, the service cost component of net periodic benefit cost is recorded in Cost of sales, Research and development, Selling, marketing, general and administrate expenses, while the remaining components are recorded to Other, net within the Company's consolidated statements of income. As such, the prior year amounts have been reclassified to provide comparable presentation in line with the guidance in ASU 2017-07 based on amounts previously disclosed for the various components of net periodic pension cost. See Note 11, Retirement Plans, in these Notes to Consolidated Financial Statements for more information on the adoption of ASU 2017-07. The tables below reconcile the impact of ASU 2014-09 and ASU 2017-07 on the consolidated statements of income: Year Ended November 3, 2018 Consolidated Statement of Income As Reported Impact of Adoption of ASU 2014-09 Impact of Adoption of ASU 2017-07 As Adjusted Revenue $ 6,200,942 $ 23,747 $ — $ 6,224,689 Cost of sales 1,967,640 6,950 (297) 1,974,293 Gross margin 4,233,302 16,797 297 4,250,396 Operating expenses: Research and development 1,165,410 — (363) 1,165,047 Selling, marketing, general and administrative 695,937 — (397) 695,540 Amortization of intangibles 428,902 — — 428,902 Special charges 61,318 — — 61,318 2,351,567 — (760) 2,350,807 Operating income 1,881,735 16,797 1,057 1,899,589 Nonoperating expense (income): Interest expense 253,589 — — 253,589 Interest income (9,383) — — (9,383) Other, net (988) — 1,057 69 243,218 — 1,057 244,275 Income before income taxes 1,638,517 16,797 — 1,655,314 Provision for income taxes 143,085 5,249 — 148,334 Net income $ 1,495,432 $ 11,548 $ — $ 1,506,980 Shares used to compute earnings per common share – basic 370,430 — — 370,430 Shares used to compute earnings per common share – diluted 374,938 — — 374,938 Basic earnings per common share $ 4.02 $ 0.03 $ — $ 4.05 Diluted earnings per common share $ 3.97 $ 0.03 $ — $ 4.00 Year Ended October 28, 2017 Consolidated Statement of Income As Reported Impact of Adoption of ASU 2014-09 Impact of Adoption of ASU 2017-07 As Adjusted Revenue $ 5,107,503 $ 138,851 $ — $ 5,246,354 Cost of sales 2,045,907 32,589 (383) 2,078,113 Gross margin 3,061,596 106,262 383 3,168,241 Operating expenses: Research and development 968,602 — (469) 968,133 Selling, marketing, general and administrative 691,046 — (513) 690,533 Amortization of intangibles 297,351 — — 297,351 Special charges 49,463 — — 49,463 2,006,462 — (982) 2,005,480 Operating income 1,055,134 106,262 1,365 1,162,761 Nonoperating expense (income): Interest expense 250,840 — — 250,840 Interest income (30,333) — — (30,333) Other, net 6,142 — 1,365 7,507 226,649 — 1,365 228,014 Income before income taxes 828,485 106,262 — 934,747 Provision for income taxes 101,226 28,142 — 129,368 Net income $ 727,259 $ 78,120 $ — $ 805,379 Shares used to compute earnings per common share – basic 346,371 — — 346,371 Shares used to compute earnings per common share – diluted 350,484 — — 350,484 Basic earnings per common share $ 2.09 $ 0.23 $ — $ 2.32 Diluted earnings per common share $ 2.07 $ 0.22 $ — $ 2.29 The impact on the Company's previously reported consolidated balance sheet line items is as follows: November 3, 2018 As Reported Impact of Adoption of ASU 2014-09 As Adjusted Deferred tax assets $ 21,078 $ (11,413) $ 9,665 Deferred income on shipments to distributors, net $ 487,417 $ (487,417) $ — Accrued liabilities $ 497,080 $ 133,027 $ 630,107 Deferred income taxes $ 927,065 $ 63,344 $ 990,409 Retained earnings $ 5,703,064 $ 279,633 $ 5,982,697 In addition, in the first quarter of fiscal 2019, the Company adopted ASU 2016-16, Income Taxes (Topic 740) (ASU 2016-16) using the modified retrospective method with a cumulative-effect adjustment directly to retained earnings. ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The adoption of ASU 2016-16 resulted in the following cumulative-effect increase in the Company's deferred tax assets, deferred tax liabilities and retained earnings as follows: November 4, 2018 Beginning Balance November 3, 2018 as Adjusted Impact of Adoption of ASU 2016-16 Balance November 4, 2018 Deferred tax assets $ 9,665 $ 1,655,129 $ 1,664,794 Deferred income taxes $ 990,409 $ 1,324,103 $ 2,314,512 Retained earnings $ 5,982,697 $ 331,026 $ 6,313,723 |
Cash and cash equivalents and short term investments | The components of the Company’s cash and cash equivalents as of November 2, 2019 and November 3, 2018 were as follows: 2019 2018 Cash and cash equivalents: Cash $ 152,432 $ 147,629 Available-for-sale 416,890 598,962 Held-to-maturity 79,000 70,000 Total cash and cash equivalents $ 648,322 $ 816,591 |
Supplemental cash flow statement Information | 2019 2018 2017 Cash paid during the fiscal year for: Income taxes $ 205,762 $ 211,473 $ 868,492 Interest $ 216,143 $ 233,436 $ 183,117 |
Inventories | Inventories at November 2, 2019 and November 3, 2018 were as follows: 2019 2018 Raw materials $ 35,447 $ 30,511 Work in process 400,409 375,908 Finished goods 174,030 180,341 Total inventories $ 609,886 $ 586,760 |
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 Leasehold improvements 7-20 years |
Changes in goodwill | The following table presents the changes in goodwill during fiscal 2019 and fiscal 2018: 2019 2018 Balance at beginning of year $ 12,252,604 $ 12,217,455 Acquisition of Linear (Note 6) — 1,647 Goodwill adjustment related to other acquisitions (1) 6,702 36,558 Foreign currency translation adjustment (2,426) (3,056) Balance at end of year $ 12,256,880 $ 12,252,604 _______________________________________ (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 November 2, 2019 and November 3, 2018, the Company’s intangible assets consisted of the following: November 2, 2019 November 3, 2018 Gross Carrying Accumulated Gross Carrying Accumulated Customer relationships $ 4,696,562 $ 1,284,256 $ 4,697,716 $ 867,207 Technology-based 1,145,283 385,618 1,114,080 243,350 Trade-name 73,417 28,164 74,031 17,846 IPR&D — — 20,768 — Total (1) (2) $ 5,915,262 $ 1,698,038 $ 5,906,595 $ 1,128,403 _______________________________________ (1) Foreign intangible asset carrying amounts are affected by foreign currency translation. (2) Increases in intangible assets primarily relate to acquisitions that were not material to the Company on either an individual or aggregate basis. 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. |
Schedule of expected annual amortization expense | The Company expects annual amortization expense for intangible assets as follows: Fiscal Year Amortization Expense 2020 $ 575,004 2021 $ 574,404 2022 $ 571,474 2023 $ 548,276 2024 $ 486,376 |
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 November 2, 2019 and November 3, 2018 were as follows: Fair Value At Balance Sheet Location November 2, 2019 November 3, 2018 Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 65 $ — Forward foreign currency exchange contracts Accrued liabilities $ — $ 6,934 |
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 sheets as of November 2, 2019 and November 3, 2018: November 2, 2019 November 3, 2018 Gross amount of recognized liabilities $ (2,828) $ (8,054) Gross amounts of recognized assets offset in the consolidated balance sheets 2,828 904 Net liabilities presented in the consolidated balance sheets $ — $ (7,150) |
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 November 2, 2019 and November 3, 2018. 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 November 2, 2019 and November 3, 2018, the Company held $231.4 million and $217.6 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below. November 2, 2019 Fair Value measurement at Quoted Significant Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 416,890 $ — $ 416,890 Other assets: Deferred compensation investments 48,302 — 48,302 Total assets measured at fair value $ 465,192 $ — $ 465,192 Liabilities Interest rate derivatives — 138,798 138,798 Total liabilities measured at fair value $ — $ 138,798 $ 138,798 November 3, 2018 Fair Value measurement at Quoted Significant Total Assets Cash equivalents: Available-for-sale: Government and institutional money market funds $ 394,076 $ — $ 394,076 Corporate obligations (1) — 204,886 204,886 Other assets: Deferred compensation investments 41,001 — 41,001 Interest rate derivatives — 1,436 1,436 Total assets measured at fair value $ 435,077 $ 206,322 $ 641,399 Liabilities Forward foreign currency exchange contracts (2) — 7,150 7,150 Total liabilities measured at fair value $ — $ 7,150 $ 7,150 _______________________________________ (1) The amortized cost of the Company’s investments classified as available-for-sale as of November 3, 2018 was $205.0 million. (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 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 loan approximates fair value. The term loan is 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 14, Debt, of these Notes to Consolidated Financial Statements for further discussion related to outstanding debt. November 2, 2019 November 3, 2018 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value 3-Year term loan, due March 2022 $ 925,000 $ 925,000 $ — $ — 3-Year term loan, due March 2020 — — 425,000 425,000 5-Year term loan, due March 2022 — — 1,350,000 1,350,000 2020 Notes, due March 2020 300,000 300,872 300,000 298,147 2021 Notes, due January 2021 450,000 454,634 450,000 444,568 2021 Notes, due December 2021 400,000 402,591 400,000 386,375 2023 Notes, due June 2023 500,000 511,190 500,000 479,189 2023 Notes, due December 2023 550,000 567,159 550,000 529,120 2025 Notes, due December 2025 850,000 914,567 850,000 829,611 2026 Notes, due December 2026 900,000 940,192 900,000 848,027 2036 Notes, due December 2036 250,000 270,891 250,000 232,627 2045 Notes, due December 2045 400,000 491,439 400,000 407,984 Total Debt $ 5,525,000 $ 5,778,535 $ 6,375,000 $ 6,230,648 |
Components of accumulated other comprehensive (loss) | The components of AOCI at November 2, 2019 and November 3, 2018 consisted of the following, net of tax: Foreign currency translation adjustment Unrealized holding gains (losses) on available for sale securities Unrealized holding gains (losses) on derivatives Pension plans Total November 3, 2018 $ (28,711) $ (10) $ (14,355) $ (15,364) $ (58,440) Other comprehensive (loss) income before reclassifications (1,365) 10 (140,728) (31,082) (173,165) Amounts reclassified out of other comprehensive loss — — 9,185 1,004 10,189 Tax effects — — 27,883 5,734 33,617 Other comprehensive (loss) income (1,365) 10 (103,660) (24,344) (129,359) November 2, 2019 $ (30,076) $ — $ (118,015) $ (39,708) $ (187,799) |
Reclassification out of accumulated other comprehensive income | The amounts reclassified out of AOCI into the consolidated statements of income, with presentation location during each period were as follows: Comprehensive Income Component 2019 2018 Location Unrealized holding gains (losses) on derivatives Currency forwards $ 1,736 $ 396 Cost of sales 2,956 (462) Research and development 3,056 (317) Selling, marketing, general and administrative Interest rate derivatives 1,437 (1,324) Interest expense 9,185 (1,707) Total before tax (1,518) 94 Tax $ 7,667 $ (1,613) Net of tax Amortization of pension components Transition obligation $ — $ 10 (1) Prior service credit and curtailment recognition — 1 (1) Actuarial losses and settlement recognition 1,004 1,621 (1) 1,004 1,632 Total before tax (248) (395) Tax $ 756 $ 1,237 Net of tax Total amounts reclassified out of AOCI, net of tax $ 8,423 $ (376) _______________________________________ (1) The amortization of pension components is included in the computation of net periodic pension cost. See Note 11, Retirement Plans, of these Notes to Consolidated Financial Statements for further information . |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: 2019 2018 (1) 2017 (1) Net income $ 1,363,011 $ 1,506,980 $ 805,379 Less: income allocated to participating securities 3,229 5,909 2,243 Net income allocated to common shareholders $ 1,359,782 $ 1,501,071 $ 803,136 Basic shares: Weighted-average shares outstanding 369,133 370,430 346,371 Earnings per common share basic $ 3.68 $ 4.05 $ 2.32 Diluted shares: Weighted-average shares outstanding 369,133 370,430 346,371 Assumed exercise of common stock equivalents 3,738 4,508 4,113 Weighted-average common and common equivalent shares 372,871 374,938 350,484 Earnings per common share diluted $ 3.65 $ 4.00 $ 2.29 Anti-dilutive shares related to: Outstanding stock options 826 1,649 1,527 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Stock-Based Compensation and _2
Stock-Based Compensation and Shareholders' Equity (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Share-based Payment Arrangement [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 2018, fiscal 2017 and fiscal 2016 is as follows: Stock Options 2019 2018 2017 Options granted (in thousands) 454 603 1,480 Weighted-average exercise price $107.11 $90.98 $82.99 Weighted-average grant-date fair value $23.29 $20.82 $17.12 Assumptions: Weighted-average expected volatility 26.4 % 27.7 % 26.4 % Weighted-average expected term (in years) 5.0 5.0 5.1 Weighted-average risk-free interest rate 2.4 % 2.6 % 2.1 % Weighted-average expected dividend yield 2.0 % 2.1 % 2.2 % |
Share-based payment arrangement, expensed amount | Total stock-based compensation expense recognized is as follows: 2019 2018 2017 Cost of sales $ 20,628 $ 18,733 $ 12,569 Research and development 75,305 81,444 51,258 Selling, marketing, general and administrative 51,829 50,988 40,361 Special charges 2,538 — — Total stock-based compensation expense $ 150,300 $ 151,165 $ 104,188 |
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 November 2, 2019 and changes during the fiscal year then ended is presented below: Options Weighted- Weighted- Aggregate Options outstanding at November 3, 2018 7,297 $58.42 Options granted 454 $107.11 Options exercised (2,364) $49.67 Options forfeited (198) $78.05 Options expired (6) $21.97 Options outstanding at November 2, 2019 5,183 $65.97 5.9 $224,945 Options exercisable at November 2, 2019 2,933 $55.23 4.7 $158,789 Options vested or expected to vest at November 2, 2019 (1) 5,046 $65.42 5.9 $221,766 _______________________________________ (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 November 2, 2019 and changes during the fiscal year then ended is presented below: Restricted Weighted- Restricted stock units/awards outstanding at November 3, 2018 5,289 $77.54 Units/Awards granted 1,317 $98.82 Restrictions lapsed (1,896) $69.38 Forfeited (314) $80.44 Restricted stock units/awards outstanding at November 2, 2019 4,396 $87.18 |
Industry, Segment And Geograp_2
Industry, Segment And Geographic Information (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
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 and the Company's methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within each end market. 2019 2018 (1) 2017 (1) Revenue % of Revenue % of Revenue % of Industrial $ 3,003,927 50 % $ 3,129,569 50 % $ 2,324,686 44 % Communications 1,284,087 21 % 1,151,359 18 % 908,594 17 % Automotive 933,143 16 % 1,009,927 16 % 758,115 14 % Consumer 769,908 13 % 933,834 15 % 1,254,959 24 % Total Revenue $ 5,991,065 100 % $ 6,224,689 100 % $ 5,246,354 100 % _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. (2) The sum of the individual percentages may not equal the total due to rounding. |
Revenue Trends by Sales Channel | The following tables summarize revenue by channel. The Company sells its products globally through a direct sales force, third party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers (OEMs). Other customers include the U.S. government, government prime contractors and some commercial customers. 2019 2018 (1) 2017 (1) Revenue % of Revenue % of Revenue % of Distributors $ 3,409,161 57 % $ 3,424,145 55 % $ 2,749,335 52 % Direct customers 2,506,065 42 % 2,721,885 44 % 2,424,514 46 % Other 75,839 1 % 78,659 1 % 72,505 1 % Total Revenue $ 5,991,065 100 % $ 6,224,689 100 % $ 5,246,354 100 % _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. (2) The sum of the individual percentages may not equal the total due to rounding. |
Revenue Trends and Property, Plant and Equipment by Geographic Region | Geographic revenue information for fiscal 2019, fiscal 2018 and fiscal 2017 reflects the geographic location of the distributors or OEMs who purchased the Company's products. This may differ from the geographic location of the end customers. In all periods presented, the predominant countries comprising “Rest of North and South America” are Canada and Mexico; the predominant countries comprising “Europe” are Germany, Sweden, and the Netherlands; and the predominant countries comprising “Rest of Asia” are Taiwan, Malaysia, South Korea and Singapore. 2019 2018 2017 Revenue (1) United States $ 2,020,886 $ 2,277,084 $ 2,110,545 Rest of North and South America 55,059 46,276 48,620 Europe 1,374,673 1,405,686 1,164,725 Japan 657,632 714,846 586,521 China 1,316,275 1,215,949 898,645 Rest of Asia 566,540 564,848 437,298 Subtotal all foreign countries 3,970,179 3,947,605 3,135,809 Total revenue $ 5,991,065 $ 6,224,689 $ 5,246,354 Property, plant and equipment United States $ 592,591 $ 505,646 $ 504,968 Ireland 184,791 202,611 188,728 Philippines 247,823 260,355 228,629 Singapore 88,385 80,383 77,015 Malaysia 56,292 57,514 71,756 All other countries 50,107 47,819 36,208 Subtotal all foreign countries 627,398 648,682 602,336 Total property, plant and equipment $ 1,219,989 $ 1,154,328 $ 1,107,304 _______________________________________ (1) Balances for fiscal 2018 and fiscal 2017 have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Company's accrued restructuring | The following table displays a roll-forward from October 29, 2016 to November 2, 2019 of the employee separation and exit cost accruals established related to these actions. Accrued Restructuring Closure of Manufacturing Facilities Reduction of Early Retirement Action Repositioning Action 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 $ — Fiscal 2018 special charges 44,452 16,866 — — Severance payments — (16,785) (22,314) — Effect of foreign currency on accrual (1,478) 37 — — Balance at November 3, 2018 $ 42,974 $ 5,255 $ 9,897 $ — Fiscal 2019 special charges 7,556 — — 88,103 Severance payments — (4,320) (5,314) (12,487) Non-cash impairment charge — — — (14,167) Non-cash accelerated stock based compensation — — — (2,538) Effect of foreign currency on accrual (129) 5 — (16) Balance at November 2, 2019 $ 50,401 $ 940 $ 4,583 $ 58,895 Current - accrued liabilities $ — $ 940 $ 4,583 $ 58,895 Other non-current liabilities $ 50,401 $ — $ — $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The Acquisition Date fair value of the consideration transferred in the Acquisition consisted of the following: Cash consideration (1) $ 11,092,047 Issuance of common stock (2) 4,593,655 Fair value of replacement stock-based and cash awards (3) 70,954 Total estimated purchase consideration $ 15,756,656 _______________________________________ (1) 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 (as defined in Note 14, 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. (2) 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). |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | During fiscal 2018, the Company completed the acquisition accounting for the Acquisition. The following is a summary of the amounts recognized in accounting for the Acquisition: Cash and cash equivalents $ 1,466,445 Marketable securities 100,246 Accounts receivable (1) 143,542 Inventories 461,695 Prepaid expenses and other assets 14,782 Property, plant and equipment 462,285 Intangible assets (Note 2f) 5,157,300 Goodwill (Note 2f) 10,533,919 Total assets 18,340,214 Assumed liabilities 190,925 Deferred tax liabilities 2,392,633 Total estimated purchase consideration $ 15,756,656 _______________________________________ (1) The fair value of accounts receivable was $143.5 million, with the gross contractual amount being $145.2 million, of which the Company estimates that $1.7 million is uncollectible. |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | 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 Weighted Average Useful Lives Technology-based $ 1,046,100 8 Trade name 72,200 7 Customer relationships 4,039,000 12 Total amortizable intangible assets $ 5,157,300 11 |
Schedule of Business Acquisitions, by Acquisition | Pro Forma Twelve Months Ended October 28, 2017 (1) Revenue $ 5,832,412 Net income $ 1,133,097 Basic net income per common share $ 3.07 Diluted net income per common share $ 3.03 _______________________________________ (1) Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at November 2, 2019 and November 3, 2018 consisted of the following: 2019 2018 (1) Distributor price adjustments and other revenue reserves $ 227,020 $ 144,887 Accrued compensation and benefits 168,471 254,932 Interest rate swap 138,798 — Accrued interest 61,255 64,974 Accrued restructuring 64,418 15,152 Other 135,854 150,162 Total accrued liabilities $ 795,816 $ 630,107 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
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 November 2, 2019: Operating Fiscal Years Leases 2020 $ 79,789 2021 67,993 2022 40,338 2023 37,673 2024 32,757 Later Years 190,171 Total $ 448,721 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
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 2019, fiscal 2018 and fiscal 2017 is presented in the following table: 2019 2018 2017 Service cost $ 5,578 $ 6,891 $ 6,688 Interest cost 4,079 3,984 3,581 Expected return on plan assets (5,279) (4,559) (4,086) Amortization of prior service cost 3 1 (9) Amortization of transition obligation — 10 14 Recognized actuarial loss 1,000 1,621 1,865 Net periodic pension cost $ 5,381 $ 7,948 $ 8,053 |
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 November 2, 2019 and November 3, 2018 is presented in the following table: 2019 2018 Change in Benefit Obligation Benefit obligation at beginning of year $ 123,538 $ 139,516 Service cost 5,578 6,891 Interest cost 4,079 3,984 Actuarial loss (gain) 38,210 (20,406) Benefits paid (3,053) (4,301) Exchange rate adjustment 1,296 (2,146) Benefit obligation at end of year $ 169,648 $ 123,538 Change in Plan Assets Fair value of plan assets at beginning of year $ 84,655 $ 79,616 Actual return on plan assets 12,389 (2,626) Employer contributions 4,177 13,793 Benefits paid (3,053) (4,301) Exchange rate adjustment 1,771 (1,827) Fair value of plan assets at end of year $ 99,939 $ 84,655 Reconciliation of Funded Status Funded status $ (69,709) $ (38,883) Amounts Recognized in the Balance Sheet Non-current assets $ — $ 6,569 Current liabilities (846) (767) Non-current liabilities (68,863) (44,685) Net amount recognized $ (69,709) $ (38,883) 2019 2018 Reconciliation of Amounts Recognized in the Statement of Financial Position Prior service credit (44) (44) Net loss (50,878) (20,800) Accumulated other comprehensive loss (50,922) (20,844) Accumulated contributions less than net periodic benefit cost (18,787) (18,039) Net amount recognized $ (69,709) $ (38,883) Changes Recognized in Other Comprehensive Income (Loss) Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) Net loss (gain) arising during the year $ 31,100 $ (13,220) Effect of exchange rates on amounts included in AOCI (18) (138) Amounts recognized as a component of net periodic benefit cost Amortization, settlement or curtailment recognition of net transition obligation — (10) Amortization or curtailment recognition of prior service credit (cost) — (1) Amortization or settlement recognition of net loss (1,004) (1,621) Total recognized in other comprehensive loss $ 30,078 $ (14,990) Total recognized in net periodic cost and other comprehensive loss $ 35,459 $ (7,042) Estimated amounts that will be amortized from AOCI over the next fiscal year Prior service credit (2) (2) Net loss (2,581) (1,015) Total $ (2,583) $ (1,017) |
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 November 2, 2019 and November 3, 2018 is presented in the following table: 2019 2018 Plans with projected benefit obligations in excess of plan assets: Projected benefit obligation $ 169,648 $ 46,626 Fair value of plan assets $ 99,939 $ 1,174 Plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation $ 61,019 $ 46,626 Accumulated benefit obligation $ 54,318 $ 41,701 Fair value of plan assets $ 1,305 $ 1,174 |
Schedule of weighted average assumptions used | The projected benefit obligation was determined using the following weighted-average assumptions: 2019 2018 Discount rate 2.45 % 3.53 % Rate of increase in compensation levels 3.38 % 3.26 % Net annual periodic pension cost was determined using the following weighted average assumptions: 2019 2018 Discount rate 3.53 % 3.02 % Expected long-term return on plan assets 6.16 % 5.54 % Rate of increase in compensation levels 3.26 % 3.18 % |
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 November 2, 2019 and November 3, 2018 using the same three-level hierarchy described in Note 2j, Fair Value, of these Notes to Consolidated Financial Statements: November 2, 2019 November 3, 2018 Fair Value Measurement at Reporting Date Using: Fair Value Measurement at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Total Unit trust funds(1) $ — $ 4,736 $ 4,736 $ — $ 2,549 $ 2,549 Equities(1) 6,114 39,189 45,303 3,437 35,221 38,658 Fixed income securities(2) — 48,274 48,274 — 42,312 42,312 Cash and cash equivalents 1,626 — 1,626 1,136 — 1,136 Total assets measured at fair value $ 7,740 $ 92,199 $ 99,939 $ 4,573 $ 80,082 $ 84,655 _______________________________________ (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. (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. |
Schedule of expected company contributions and estimated future benefit payments | Expected fiscal 2020 Company contributions and estimated future benefit payments are as follows: Expected Company Contributions 2020 $ 7,565 Expected Benefit Payments 2021 $ 3,027 2022 $ 2,316 2023 $ 2,899 2024 $ 3,363 2024 $ 3,363 2025 through 2028 $ 25,159 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
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 2019, fiscal 2018 and fiscal 2017 is as follows: 2019 2018 (1) 2017 (1) U.S. federal statutory tax rate 21.0 % 23.4 % 35.0 % Income tax provision reconciliation: Tax at statutory rate: 312,003 $ 387,343 $ 327,161 Net foreign income subject to lower tax rate (242,893) (420,756) (395,800) State income taxes, net of federal benefit (31,265) 4,428 (7,239) Valuation allowance 34,069 2,232 (7,778) Federal research and development tax credits (50,769) (33,602) (16,475) Change in uncertain tax positions 7,233 (32,945) (51,088) Amortization of purchased intangibles 111,547 213,198 159,466 Acquisition and integration costs — — 109,040 Taxes attributable to the Tax Cuts and Jobs Act of 2017 (7,500) 56,608 — U.S. effects of international operations 19,782 — — Windfalls (under ASU 2016-09) (28,677) (26,237) — Other, net (813) (1,935) 12,081 Total income tax provision $ 122,717 $ 148,334 $ 129,368 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Schedule of income before income tax domestic and foreign | Income before income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 includes the following components: 2019 2018 (1) 2017 (1) Domestic $ 484,876 $ 615,238 $ 161,248 Foreign 1,000,852 1,040,076 773,499 Income before income taxes $ 1,485,728 $ 1,655,314 $ 934,747 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Schedule of components of the provision for income taxes | The components of the provision for income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 are as follows: 2019 2018 (1) 2017 (1) Current: Federal tax $ 74,049 $ 824,848 $ 868,051 State 2 6,043 8,594 Foreign 139,919 47,819 63,121 Total current $ 213,970 $ 878,710 $ 939,766 Deferred: Federal $ (158,472) $ (738,163) $ (780,310) State (3,627) 1,092 (23,982) Foreign 70,846 6,695 (6,106) Total deferred $ (91,253) $ (730,376) $ (810,398) Provision for income tax $ 122,717 $ 148,334 $ 129,368 _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Schedule of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities for fiscal 2019 and fiscal 2018 are as follows: 2019 2018 (1) Deferred tax assets: Inventory reserves $ 21,081 $ 22,184 Reserves for compensation and benefits 53,090 39,185 Tax credit carryovers 133,485 112,851 Stock-based compensation 63,589 53,105 Net operating losses 5,299 5,997 Intra-entity transfer of intangible assets 1,567,536 — Other 70,974 36,898 Total gross deferred tax assets 1,915,054 270,220 Valuation allowance (116,349) (82,280) Total deferred tax assets 1,798,705 187,940 Deferred tax liabilities: Depreciation (38,464) (37,023) Deferred GILTI tax liabilities (1,254,029) — Acquisition-related intangible (1,012,042) (1,129,747) Other — (1,914) Total gross deferred tax liabilities (2,304,535) (1,168,684) Net deferred tax liabilities $ (505,830) $ (980,744) _______________________________________ (1) Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Schedule of changes in unrealized tax benefits | The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2017 through fiscal 2019: Unrealized Tax Benefits 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 Additions for tax positions related to current year 1,334 Reductions for tax positions related to prior years (295) Reductions due to lapse of applicable statute of limitations (25,640) Balance, November 3, 2018 $ 13,256 Additions for tax positions related to current year 3,398 Additions for tax positions related to prior years 18,613 Reductions due to lapse of applicable statute of limitations (924) Balance, November 2, 2019 $ 34,343 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company’s debt consisted of the following as of November 2, 2019 and November 3, 2018: November 2, 2019 November 3, 2018 Principal Unamortized discount and debt issuance costs Principal Unamortized discount and debt issuance costs 3-Year term loan, due March 2022 $ 925,000 $ — $ — $ — 3-Year term loan, due March 2020 — — 358,000 318 5-Year term loan, due March 2022 — — 1,350,000 1,503 2020 Notes, due March 2020 — — 300,000 1,273 2021 Notes, due January 2021 450,000 1,819 450,000 3,344 2021 Notes, due December 2021 400,000 1,918 400,000 2,830 2023 Notes, due June 2023 500,000 2,200 500,000 2,813 2023 Notes, due December 2023 550,000 3,619 550,000 4,499 2025 Notes, due December 2025 850,000 5,382 850,000 6,262 2026 Notes, due December 2026 900,000 9,086 900,000 10,361 2036 Notes, due December 2036 250,000 3,576 250,000 3,778 2045 Notes, due December 2045 400,000 5,148 400,000 5,345 Total Long-Term Debt $ 5,225,000 $ 32,748 $ 6,308,000 $ 42,326 2020 Notes, due March 2020 300,000 333 — — 3-Year term loan, due March 2020, current — — 67,000 — Total Current Debt $ 300,000 $ 333 $ 67,000 $ — Total Debt $ 5,525,000 $ 33,081 $ 6,375,000 $ 42,326 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 12 Months Ended |
Nov. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 4Q19 3Q19 2Q19 1Q19 4Q18 (1) 3Q18 (1) 2Q18 (1) 1Q18 (1) Revenue $ 1,443,219 $ 1,480,143 $ 1,526,602 $ 1,541,101 $ 1,536,128 $ 1,558,189 $ 1,563,502 $ 1,566,870 Cost of sales 501,028 482,332 492,510 501,445 490,585 497,557 491,038 495,113 Gross margin 942,191 997,811 1,034,092 1,039,656 1,045,543 1,060,632 1,072,464 1,071,757 % of Revenue 65.3 % 67.4 % 67.7 % 67.5 % 68.1 % 68.1 % 68.6 % 68.4 % Research and development 277,018 280,102 285,846 287,382 295,609 291,551 289,381 288,506 Selling, marketing, general and administrative 154,799 162,825 163,128 167,342 175,296 171,388 172,047 176,809 Special charges (2) 64,788 927 8,162 21,782 1,842 1,069 1,089 57,318 Amortization of intangibles 107,225 107,231 107,261 107,324 107,345 107,409 107,129 107,019 Total operating expenses 603,830 551,085 564,397 583,830 580,092 571,417 569,646 629,652 Operating income 338,361 446,726 469,695 455,826 465,451 489,215 502,818 442,105 % of Revenue 23 % 30 % 31 % 30 % 30 % 31 % 32 % 28 % Nonoperating (income) expenses: Interest expense 50,775 59,871 59,701 58,728 59,102 61,665 64,792 68,030 Interest income (1,988) (2,625) (2,928) (2,688) (2,791) (2,588) (1,912) (2,092) Other, net 1,747 (78) 4,525 (160) (196) (368) (187) 820 Total nonoperating (income) expense 50,534 57,168 61,298 55,880 56,115 58,709 62,693 66,758 Income before income taxes 287,827 389,558 408,397 399,946 409,336 430,506 440,125 375,347 % of Revenue 20 % 26 % 27 % 26 % 27 % 28 % 28 % 24 % Provision for income taxes (3) 10,133 27,184 40,460 44,940 4,481 21,949 39,797 82,107 Net income $ 277,694 $ 362,374 $ 367,937 $ 355,006 $ 404,855 $ 408,557 $ 400,328 $ 293,240 % of Revenue 19 % 24 % 24 % 23 % 26 % 26 % 26 % 19 % Net income allocable to common shares (4) $ 277,182 $ 361,562 $ 367,029 $ 353,969 $ 403,511 $ 407,031 $ 398,796 $ 291,997 Basic earnings per common share $ 0.75 $ 0.98 $ 0.99 $ 0.96 $ 1.09 $ 1.10 $ 1.08 $ 0.79 Diluted earnings per common share $ 0.74 $ 0.97 $ 0.98 $ 0.95 $ 1.08 $ 1.08 $ 1.06 $ 0.78 Shares used to compute earnings per share (in thousands): Basic 369,051 369,533 369,246 368,703 371,074 371,315 370,384 369,093 Diluted 372,584 373,077 373,342 372,506 375,116 375,815 374,778 374,189 Dividends declared per share $ 0.54 $ 0.54 $ 0.54 $ 0.48 $ 0.48 $ 0.48 $ 0.48 $ 0.45 _______________________________________ (1) Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. (2) Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. (3) See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Principles of Consolidation (Details) $ in Thousands | Mar. 10, 2017USD ($) | Nov. 02, 2019week | Nov. 03, 2018week | Oct. 28, 2017week |
Accounting Policies [Line Items] | ||||
Fiscal year term | week | 52 | 53 | 52 | |
Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Fiscal year term | week | 52 | |||
Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Fiscal year term | week | 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 Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition Income Statement (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | [2] | $ 5,246,354 | [2] | ||||||||
Cost of sales | 501,028 | 482,332 | 492,510 | 501,445 | 490,585 | 497,557 | 491,038 | 495,113 | 1,977,315 | 1,974,293 | [2] | 2,078,113 | [2] | ||||||||
Gross margin | 942,191 | 997,811 | 1,034,092 | 1,039,656 | 1,045,543 | 1,060,632 | 1,072,464 | 1,071,757 | 4,013,750 | 4,250,396 | [2] | 3,168,241 | [2] | ||||||||
Operating expenses: | |||||||||||||||||||||
Research and Development Expense | 277,018 | 280,102 | 285,846 | 287,382 | 295,609 | 291,551 | 289,381 | 288,506 | 1,130,348 | 1,165,047 | [2] | 968,133 | [2] | ||||||||
Selling, marketing, general and administrative | 154,799 | 162,825 | 163,128 | 167,342 | 175,296 | 171,388 | 172,047 | 176,809 | 648,094 | 695,540 | [2] | 690,533 | [2] | ||||||||
Amortization of intangibles | 107,225 | 107,231 | 107,261 | 107,324 | 107,345 | 107,409 | 107,129 | 107,019 | 429,041 | 428,902 | [2] | 297,351 | [2] | ||||||||
Special charges | 64,788 | [3] | 927 | [3] | 8,162 | [3] | 21,782 | [3] | 1,842 | [3] | 1,069 | [3] | 1,089 | [3] | 57,318 | [3] | 95,659 | 61,318 | [2] | 49,463 | [2] |
Total operating expenses | 603,830 | 551,085 | 564,397 | 583,830 | 580,092 | 571,417 | 569,646 | 629,652 | 2,303,142 | 2,350,807 | [2] | 2,005,480 | [2] | ||||||||
Operating income | 338,361 | 446,726 | 469,695 | 455,826 | 465,451 | 489,215 | 502,818 | 442,105 | 1,710,608 | 1,899,589 | [2] | 1,162,761 | [2] | ||||||||
Nonoperating (income) expenses: | |||||||||||||||||||||
Interest expense | 50,775 | 59,871 | 59,701 | 58,728 | 59,102 | 61,665 | 64,792 | 68,030 | 229,075 | 253,589 | [2] | 250,840 | [2] | ||||||||
Interest income | (1,988) | (2,625) | (2,928) | (2,688) | (2,791) | (2,588) | (1,912) | (2,092) | (10,229) | (9,383) | [2] | (30,333) | [2] | ||||||||
Other, net | 1,747 | (78) | 4,525 | (160) | (196) | (368) | (187) | 820 | 6,034 | 69 | [2] | 7,507 | [2] | ||||||||
Total nonoperating (income) expense | 50,534 | 57,168 | 61,298 | 55,880 | 56,115 | 58,709 | 62,693 | 66,758 | 224,880 | 244,275 | [2] | 228,014 | [2] | ||||||||
Income before income taxes | 287,827 | 389,558 | 408,397 | 399,946 | 409,336 | 430,506 | 440,125 | 375,347 | 1,485,728 | 1,655,314 | [2] | 934,747 | [2] | ||||||||
Provision for income taxes | $ 10,133 | [4] | $ 27,184 | [4] | $ 40,460 | [4] | $ 44,940 | [4] | $ 4,481 | [4] | $ 21,949 | [4] | $ 39,797 | [4] | $ 82,107 | [4] | 122,717 | 148,334 | [2] | 129,368 | [2] |
Net income | $ 1,363,011 | $ 1,506,980 | [2] | $ 805,379 | [2] | ||||||||||||||||
Weighted average shares outstanding (in shares) | 369,051 | 369,533 | 369,246 | 368,703 | 371,074 | 371,315 | 370,384 | 369,093 | 369,133 | 370,430 | [2] | 346,371 | [2] | ||||||||
Shares used to compute earnings per share - Diluted (in shares) | 372,584 | 373,077 | 373,342 | 372,506 | 375,116 | 375,815 | 374,778 | 374,189 | 372,871 | 374,938 | [2] | 350,484 | [2] | ||||||||
Basic earnings per common share (in dollars per share) | $ 3.68 | $ 4.05 | [2] | $ 2.32 | [2] | ||||||||||||||||
Income from continuing operations, net of tax (in dollars per share) | $ 3.65 | $ 4 | [2] | $ 2.29 | [2] | ||||||||||||||||
Previously Reported [Member] | |||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Revenue | $ 6,200,942 | $ 5,107,503 | |||||||||||||||||||
Cost of sales | 1,967,640 | 2,045,907 | |||||||||||||||||||
Gross margin | 4,233,302 | 3,061,596 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and Development Expense | 1,165,410 | 968,602 | |||||||||||||||||||
Selling, marketing, general and administrative | 695,937 | 691,046 | |||||||||||||||||||
Amortization of intangibles | 428,902 | 297,351 | |||||||||||||||||||
Special charges | 61,318 | 49,463 | |||||||||||||||||||
Total operating expenses | 2,351,567 | 2,006,462 | |||||||||||||||||||
Operating income | 1,881,735 | 1,055,134 | |||||||||||||||||||
Nonoperating (income) expenses: | |||||||||||||||||||||
Interest expense | 253,589 | 250,840 | |||||||||||||||||||
Interest income | (9,383) | (30,333) | |||||||||||||||||||
Other, net | (988) | 6,142 | |||||||||||||||||||
Total nonoperating (income) expense | 243,218 | 226,649 | |||||||||||||||||||
Income before income taxes | 1,638,517 | 828,485 | |||||||||||||||||||
Provision for income taxes | 143,085 | 101,226 | |||||||||||||||||||
Net income | $ 1,495,432 | $ 727,259 | |||||||||||||||||||
Weighted average shares outstanding (in shares) | 370,430 | 346,371 | |||||||||||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 374,938 | 350,484 | |||||||||||||||||||
Basic earnings per common share (in dollars per share) | $ 4.02 | $ 2.09 | |||||||||||||||||||
Income from continuing operations, net of tax (in dollars per share) | $ 3.97 | $ 2.07 | |||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Revenue | $ 23,747 | $ 138,851 | |||||||||||||||||||
Cost of sales | 6,950 | 32,589 | |||||||||||||||||||
Gross margin | 16,797 | 106,262 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and Development Expense | 0 | 0 | |||||||||||||||||||
Selling, marketing, general and administrative | 0 | 0 | |||||||||||||||||||
Amortization of intangibles | 0 | 0 | |||||||||||||||||||
Special charges | 0 | 0 | |||||||||||||||||||
Total operating expenses | 0 | 0 | |||||||||||||||||||
Operating income | 16,797 | 106,262 | |||||||||||||||||||
Nonoperating (income) expenses: | |||||||||||||||||||||
Interest expense | 0 | 0 | |||||||||||||||||||
Interest income | 0 | 0 | |||||||||||||||||||
Other, net | 0 | 0 | |||||||||||||||||||
Total nonoperating (income) expense | 0 | 0 | |||||||||||||||||||
Income before income taxes | 16,797 | 106,262 | |||||||||||||||||||
Provision for income taxes | 5,249 | 28,142 | |||||||||||||||||||
Net income | $ 11,548 | $ 78,120 | |||||||||||||||||||
Weighted average shares outstanding (in shares) | 0 | 0 | |||||||||||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 0 | 0 | |||||||||||||||||||
Basic earnings per common share (in dollars per share) | $ 0.03 | $ 0.23 | |||||||||||||||||||
Income from continuing operations, net of tax (in dollars per share) | $ 0.03 | $ 0.22 | |||||||||||||||||||
Accounting Standards Update 2017-17 [Member] | Restatement Adjustment [Member] | |||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||
Revenue | $ 0 | $ 0 | |||||||||||||||||||
Cost of sales | (297) | (383) | |||||||||||||||||||
Gross margin | 297 | 383 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and Development Expense | (363) | (469) | |||||||||||||||||||
Selling, marketing, general and administrative | (397) | (513) | |||||||||||||||||||
Amortization of intangibles | 0 | 0 | |||||||||||||||||||
Special charges | 0 | 0 | |||||||||||||||||||
Total operating expenses | (760) | (982) | |||||||||||||||||||
Operating income | 1,057 | 1,365 | |||||||||||||||||||
Nonoperating (income) expenses: | |||||||||||||||||||||
Interest expense | 0 | 0 | |||||||||||||||||||
Interest income | 0 | 0 | |||||||||||||||||||
Other, net | 1,057 | 1,365 | |||||||||||||||||||
Total nonoperating (income) expense | 1,057 | 1,365 | |||||||||||||||||||
Income before income taxes | 0 | 0 | |||||||||||||||||||
Provision for income taxes | 0 | 0 | |||||||||||||||||||
Net income | $ 0 | $ 0 | |||||||||||||||||||
Weighted average shares outstanding (in shares) | 0 | 0 | |||||||||||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 0 | 0 | |||||||||||||||||||
Basic earnings per common share (in dollars per share) | $ 0 | $ 0 | |||||||||||||||||||
Income from continuing operations, net of tax (in dollars per share) | $ 0 | $ 0 | |||||||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. | ||||||||||||||||||||
[3] | Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||||||
[4] | See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition Balance Sheet (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 04, 2018 | Nov. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | $ 1,582,382 | $ 1,664,794 | $ 9,665 | [1] |
Deferred income on shipments to distributors, net | 0 | |||
Accrued liabilities | 795,816 | 630,107 | [1] | |
Deferred income tax | 2,088,212 | 2,314,512 | 990,409 | [1] |
Retained earnings | $ 6,899,253 | $ 6,313,723 | 5,982,697 | [1] |
Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | 21,078 | |||
Deferred income on shipments to distributors, net | 487,417 | |||
Accrued liabilities | 497,080 | |||
Deferred income tax | 927,065 | |||
Retained earnings | 5,703,064 | |||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | (11,413) | |||
Deferred income on shipments to distributors, net | (487,417) | |||
Accrued liabilities | 133,027 | |||
Deferred income tax | 63,344 | |||
Retained earnings | $ 279,633 | |||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition Cumulative Effect Adjustments (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 04, 2018 | Nov. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | $ 1,582,382 | $ 1,664,794 | $ 9,665 | [1] |
Deferred income tax | 2,088,212 | 2,314,512 | 990,409 | [1] |
Retained earnings | $ 6,899,253 | 6,313,723 | 5,982,697 | [1] |
Accounting Standards Update 2016-16 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | 1,655,129 | 1,700,000 | ||
Deferred income tax | 1,324,103 | $ 1,300,000 | ||
Retained earnings | $ 331,026 | |||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 | |
Cash and cash equivalents: | |||
Cash | $ 152,432 | $ 147,629 | |
Total cash and cash equivalents | 648,322 | 816,591 | [1] |
Available-for-sale [Member] | |||
Cash and cash equivalents: | |||
Cash equivalents | 416,890 | 598,962 | |
Held-to-maturity [Member] | |||
Cash and cash equivalents: | |||
Cash equivalents | $ 79,000 | $ 70,000 | |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Supplemental Cash Flow Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Cash paid during the fiscal year for: | |||
Income taxes | $ 205,762 | $ 211,473 | $ 868,492 |
Interest | $ 216,143 | $ 233,436 | $ 183,117 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 | |
Inventories | |||
Raw materials | $ 35,447 | $ 30,511 | |
Work in process | 400,409 | 375,908 | |
Finished goods | 174,030 | 180,341 | |
Total inventories | $ 609,886 | $ 586,760 | [1] |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 02, 2019 | Nov. 03, 2018 | [1] | Oct. 28, 2017 | [1] | |
Useful lives of property, plant and equipment | |||||
Depreciation expense | $ 240,677 | $ 228,525 | $ 194,666 | ||
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 | ||||
Leasehold improvements [Member] | |||||
Useful lives of property, plant and equipment | |||||
Property, plant and equipment, useful life, minimum | 7 years | ||||
Property, plant and equipment, useful life, maximum | 20 years | ||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Nov. 02, 2019USD ($)numberOfReportingUnit | Nov. 03, 2018USD ($) | |||
Business Acquisition [Line Items] | ||||
Number of reporting units | numberOfReportingUnit | 8 | |||
Number of reporting units used for assessing goodwill impairment | numberOfReportingUnit | 7 | |||
Number of reporting units used for assessing goodwill impairment, fair value exceeded carrying amount | numberOfReportingUnit | 1 | |||
Changes in goodwill | ||||
Balance at beginning of year | $ 12,252,604 | [1] | $ 12,217,455 | |
Foreign currency translation adjustment | (2,426) | (3,056) | ||
Balance at end of year | 12,256,880 | 12,252,604 | [1] | |
Linear Technology Corporation [Member] | ||||
Changes in goodwill | ||||
Acquisition | 0 | 1,647 | ||
Other Acquisitions [Member] | ||||
Changes in goodwill | ||||
Acquisition | $ 6,702 | $ 36,558 | ||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | [1] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Impairment charges | $ 14,167 | $ 0 | [1] | $ 0 | |
Accumulated Amortization | 1,698,038 | 1,128,403 | |||
Gross Carrying Amount | 5,915,262 | 5,906,595 | |||
Amortization of intangibles | $ 570,574 | 570,538 | [1] | $ 389,393 | |
Weighted average useful lives (in years) | 4 years 1 month 6 days | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||||
2020 | $ 575,004 | ||||
2021 | 574,404 | ||||
2022 | 571,474 | ||||
2023 | 548,276 | ||||
2024 | 486,376 | ||||
IPR&D [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Impairment charges | 14,200 | ||||
Gross Carrying Amount | 0 | 20,768 | |||
Customer Relationships [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 4,696,562 | 4,697,716 | |||
Accumulated Amortization | 1,284,256 | 867,207 | |||
Technology-based [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1,145,283 | 1,114,080 | |||
Accumulated Amortization | 385,618 | 243,350 | |||
Trade Names [Member] | |||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 73,417 | 74,031 | |||
Accumulated Amortization | $ 28,164 | $ 17,846 | |||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Derivatives Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | |
Derivative [Line Items] | ||
Contracts period (or less) | 1 year | |
Interest rate swap agreements | $ 138,798 | $ 0 |
Fair Value, Recurring [Member] | ||
Derivative [Line Items] | ||
Interest rate swap agreements | 138,798 | |
Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional amount of cash flow hedges | 191,100 | 194,400 |
Derivative, notional amount | 55,300 | $ 40,600 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,000,000 |
Summary of Significant Accou_15
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 | Nov. 02, 2019 | Nov. 03, 2018 |
Prepaid Expenses and Other Current Assets [Member] | ||
Effect of derivative instruments designated as cash flow hedges | ||
Forward foreign currency exchange contracts, asset | $ 65 | $ 0 |
Accrued Liabilities [Member] | ||
Effect of derivative instruments designated as cash flow hedges | ||
Forward foreign currency exchange contracts, liability | $ 0 | $ 6,934 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Derivative Fair Value of Hedging Instruments (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 |
Accounting Policies [Abstract] | ||
Gross amount of recognized liabilities | $ (2,828) | $ (8,054) |
Gross amounts of recognized assets offset in the consolidated balance sheets | 2,828 | 904 |
Net liabilities presented in the consolidated balance sheets | $ 0 | $ (7,150) |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Fair Value Textual (Details) - USD ($) $ in Millions | Nov. 02, 2019 | Nov. 03, 2018 |
Accounting Policies [Abstract] | ||
Cash and Held to Maturity Investments | $ 231.4 | $ 217.6 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Fair Value Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 |
Long-term debt | ||
Forward foreign currency exchange contracts | $ 0 | |
Interest rate swap agreements | $ 138,798 | 0 |
Recurring [Member] | ||
Other Assets | ||
Deferred compensation investments | 48,302 | 41,001 |
Interest rate derivative assets, at fair value | 1,436 | |
Total assets measured at fair value | 465,192 | 641,399 |
Long-term debt | ||
Forward foreign currency exchange contracts | 7,150 | |
Interest rate swap agreements | 138,798 | |
Total liabilities measured at fair value | 138,798 | 7,150 |
Available-for-sale, amortized cost basis | 205,000 | |
Recurring [Member] | Institutional Money Market Funds [Member] | ||
Available-for-sale: | ||
Cash equivalents | 416,890 | 394,076 |
Recurring [Member] | Corporate Obligations [Member] | ||
Available-for-sale: | ||
Cash equivalents | 204,886 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Other Assets | ||
Deferred compensation investments | 48,302 | 41,001 |
Interest rate derivative assets, at fair value | 0 | |
Total assets measured at fair value | 465,192 | 435,077 |
Long-term debt | ||
Interest rate swap agreements | 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 | 416,890 | 394,076 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Obligations [Member] | ||
Available-for-sale: | ||
Cash equivalents | 0 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Other Assets | ||
Deferred compensation investments | 0 | 0 |
Interest rate derivative assets, at fair value | 1,436 | |
Total assets measured at fair value | 0 | 206,322 |
Long-term debt | ||
Forward foreign currency exchange contracts | 7,150 | |
Interest rate swap agreements | 138,798 | |
Total liabilities measured at fair value | 138,798 | 7,150 |
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 | $ 204,886 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Fair Value Outstanding Debt (Details) - USD ($) | Nov. 02, 2019 | Nov. 03, 2018 |
Debt Instrument [Line Items] | ||
Principal | $ 5,525,000,000 | $ 6,375,000,000 |
Fair Value | 5,778,535,000 | 6,230,648,000 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 5,225,000,000 | 6,308,000,000 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year, Due March 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 925,000,000 | 0 |
Fair Value | 925,000,000 | 0 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year, Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 425,000,000 |
Fair Value | 0 | 425,000,000 |
Long-term Debt [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year, Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 1,350,000,000 |
Fair Value | 0 | 1,350,000,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 2.85% Unsecured Notes Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000,000 | 300,000,000 |
Fair Value | 300,872,000 | 298,147,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 2.90% Unsecured Notes Due January 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 450,000,000 | 450,000,000 |
Fair Value | 454,634,000 | 444,568,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 2.50% Unsecured Notes Due December 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 400,000,000 |
Fair Value | 402,591,000 | 386,375,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 2.875% Unsecured Notes Due June 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 500,000,000 | 500,000,000 |
Fair Value | 511,190,000 | 479,189,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.125% Unsecured Notes Due December 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 550,000,000 | 550,000,000 |
Fair Value | 567,159,000 | 529,120,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.90% Unsecured Note Due December 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 850,000,000 | 850,000,000 |
Fair Value | 914,567,000 | 829,611,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 3.50% Unsecured Notes Due December 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 900,000,000 | 900,000,000 |
Fair Value | 940,192,000 | 848,027,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 4.50% Unsecured Notes Dues December 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 250,000,000 | 250,000,000 |
Fair Value | 270,891,000 | 232,627,000 |
Long-term Debt [Member] | Senior Notes [Member] | Senior 5.30% Unsecured Notes Dues December 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 400,000,000 |
Fair Value | $ 491,439,000 | $ 407,984,000 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Concentrations of Risk and Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | ||||
Product Information [Line Items] | |||||||||||||||||
Percentage of revenue to individual customer | 10.00% | 10.00% | 12.00% | ||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | [1] | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | [2] | $ 5,246,354 | [2] | |||
Standard product warranty term | 12 months | ||||||||||||||||
Sales Channel, Through Intermediary | |||||||||||||||||
Product Information [Line Items] | |||||||||||||||||
Percentage of revenue to individual customer | 30.00% | 28.00% | 14.00% | ||||||||||||||
Revenue | $ 3,409,161 | $ 3,424,145 | $ 2,749,335 | ||||||||||||||
Liability | $ 227,000 | $ 144,900 | $ 227,000 | $ 144,900 | |||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accou_21
Summary of Significant Accounting Policies - Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | ||||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | [1] | $ 11,268,173 | ||||
Other comprehensive (loss) income before reclassifications | (173,165) | |||||
Amounts reclassified out of other comprehensive loss | 10,189 | |||||
Tax effects | 33,617 | |||||
Other comprehensive income (loss) | (129,359) | $ 2,919 | [1] | $ 12,455 | [1] | |
Ending Balance | 11,709,188 | 11,268,173 | [1] | |||
Foreign Current Translation Adjustment [Member] | ||||||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (28,711) | |||||
Other comprehensive (loss) income before reclassifications | (1,365) | |||||
Amounts reclassified out of other comprehensive loss | 0 | |||||
Tax effects | 0 | |||||
Other comprehensive income (loss) | (1,365) | |||||
Ending Balance | (30,076) | (28,711) | ||||
Unrealized Holding Gains (Losses) On Available For Sale Securities [Member] | ||||||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (10) | |||||
Other comprehensive (loss) income before reclassifications | 10 | |||||
Amounts reclassified out of other comprehensive loss | 0 | |||||
Tax effects | 0 | |||||
Other comprehensive income (loss) | 10 | |||||
Ending Balance | 0 | (10) | ||||
Unrealized Holding Gains (Losses) on Derivatives [Member] | ||||||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (14,355) | |||||
Other comprehensive (loss) income before reclassifications | (140,728) | |||||
Amounts reclassified out of other comprehensive loss | 9,185 | |||||
Tax effects | 27,883 | |||||
Other comprehensive income (loss) | (103,660) | |||||
Ending Balance | (118,015) | (14,355) | ||||
Pension Plans [Member] | ||||||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (15,364) | |||||
Other comprehensive (loss) income before reclassifications | (31,082) | |||||
Amounts reclassified out of other comprehensive loss | 1,004 | 1,632 | ||||
Tax effects | 5,734 | |||||
Other comprehensive income (loss) | (24,344) | |||||
Ending Balance | (39,708) | (15,364) | ||||
AOCI Attributable to Parent [Member] | ||||||
AOCI Attribute to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | [1] | (58,440) | (61,359) | (73,814) | ||
Ending Balance | $ (187,799) | $ (58,440) | [1] | $ (61,359) | [1] | |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Summary of Significant Accou_22
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income - Reclassified Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | [2] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Cost of sales | $ 501,028 | $ 482,332 | $ 492,510 | $ 501,445 | $ 490,585 | $ 497,557 | $ 491,038 | $ 495,113 | $ 1,977,315 | $ 1,974,293 | [2] | $ 2,078,113 | |||||||||
Research and development | 277,018 | 280,102 | 285,846 | 287,382 | 295,609 | 291,551 | 289,381 | 288,506 | 1,130,348 | 1,165,047 | [2] | 968,133 | |||||||||
Selling, marketing, general and administrative | 154,799 | 162,825 | 163,128 | 167,342 | 175,296 | 171,388 | 172,047 | 176,809 | 648,094 | 695,540 | [2] | 690,533 | |||||||||
Interest expense | 50,775 | 59,871 | 59,701 | 58,728 | 59,102 | 61,665 | 64,792 | 68,030 | 229,075 | 253,589 | [2] | 250,840 | |||||||||
Total before tax | 287,827 | 389,558 | 408,397 | 399,946 | 409,336 | 430,506 | 440,125 | 375,347 | 1,485,728 | 1,655,314 | [2] | 934,747 | |||||||||
Tax | $ (10,133) | [3] | $ (27,184) | [3] | $ (40,460) | [3] | $ (44,940) | [3] | $ (4,481) | [3] | $ (21,949) | [3] | $ (39,797) | [3] | $ (82,107) | [3] | (122,717) | (148,334) | [2] | (129,368) | |
Net income | 1,363,011 | 1,506,980 | [2] | $ 805,379 | |||||||||||||||||
Total before tax | 10,189 | ||||||||||||||||||||
Net of tax | 8,423 | (376) | |||||||||||||||||||
Unrealized Holding Gains (Losses) on Derivatives [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Total before tax | 9,185 | ||||||||||||||||||||
Pension Plans [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Total before tax | 1,004 | 1,632 | |||||||||||||||||||
Tax | (248) | (395) | |||||||||||||||||||
Net of tax | 756 | 1,237 | |||||||||||||||||||
Transition Obligation [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Total before tax | 0 | 10 | |||||||||||||||||||
Prior Service Credit And Curtailment Recognition [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Total before tax | 0 | 1 | |||||||||||||||||||
Actuarial Losses And Settlement Recognition [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Total before tax | 1,004 | 1,621 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains (Losses) on Derivatives [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Net income | 7,667 | (1,613) | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Exchange Contract [Member] | Unrealized Holding Gains (Losses) on Derivatives [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Cost of sales | 1,736 | 396 | |||||||||||||||||||
Research and development | 2,956 | (462) | |||||||||||||||||||
Selling, marketing, general and administrative | 3,056 | (317) | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Contract [Member] | Unrealized Holding Gains (Losses) on Derivatives [Member] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||
Interest expense | 1,437 | (1,324) | |||||||||||||||||||
Total before tax | 9,185 | (1,707) | |||||||||||||||||||
Tax | $ (1,518) | $ 94 | |||||||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. | ||||||||||||||||||||
[3] | See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. |
Summary of Significant Accou_23
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 | |||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [2] | Aug. 04, 2018 | [2] | May 05, 2018 | [2] | Feb. 03, 2018 | [2] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||
Earnings per share | |||||||||||||||||
Net income | $ 1,363,011 | $ 1,506,980 | [1] | $ 805,379 | [1] | ||||||||||||
Undistributed earnings (loss) allocated to participating securities, basic | 3,229 | 5,909 | 2,243 | ||||||||||||||
Net income (loss) available to common stockholders, basic | $ 1,359,782 | $ 1,501,071 | $ 803,136 | ||||||||||||||
Basic shares: | |||||||||||||||||
Weighted average shares outstanding (in shares) | 369,051 | 369,533 | 369,246 | 368,703 | 371,074 | 371,315 | 370,384 | 369,093 | 369,133 | 370,430 | [1] | 346,371 | [1] | ||||
Basic earnings per common share (in dollars per share) | $ 3.68 | $ 4.05 | [1] | $ 2.32 | [1] | ||||||||||||
Diluted shares: | |||||||||||||||||
Weighted average shares outstanding (in shares) | 369,051 | 369,533 | 369,246 | 368,703 | 371,074 | 371,315 | 370,384 | 369,093 | 369,133 | 370,430 | [1] | 346,371 | [1] | ||||
Assumed exercise of common stock equivalents (in shares) | 3,738 | 4,508 | 4,113 | ||||||||||||||
Weighted average common and common equivalent shares (in shares) | 372,584 | 373,077 | 373,342 | 372,506 | 375,116 | 375,815 | 374,778 | 374,189 | 372,871 | 374,938 | [1] | 350,484 | [1] | ||||
Earnings per share - Diluted | |||||||||||||||||
Income from continuing operations, net of tax (in dollars per share) | $ 3.65 | $ 4 | [1] | $ 2.29 | [1] | ||||||||||||
Outstanding stock options (in share) | 826 | 1,649 | 1,527 | ||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. | ||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). |
Summary of Significant Accou_24
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - Share-based Payment Arrangement, Option [Member] | 12 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation awards vesting period (years) | 4 years | 5 years |
Percentage of options exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 25.00% | 20.00% |
Summary of Significant Accou_25
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 04, 2018 | Nov. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | $ 1,582,382 | $ 1,664,794 | $ 9,665 | [1] |
Deferred income tax | 2,088,212 | $ 2,314,512 | 990,409 | [1] |
Accounting Standards Update 2016-06 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Effect of accounting standards | 331,000 | |||
Deferred tax assets | 1,700,000 | |||
Deferred income tax | $ 1,300,000 | |||
Accounting Standards Update 2018-11 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liability | $ 400,000 | |||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Stock-Based Compensation and _3
Stock-Based Compensation and Shareholders' Equity - Textual (Details) - USD ($) | Aug. 21, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | Oct. 28, 2006 | Aug. 31, 2004 |
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Shares reserved for future issuance | 21,200,000 | |||||
Units/Awards granted (USD per share) | $ 98.82 | |||||
Minimum maturity of traded options used to estimate volatility | 1 year | |||||
Annual forfeiture rate | 5.00% | |||||
Amount related to stock based compensation | $ 6,800,000 | $ 7,100,000 | ||||
Total intrinsic value of options exercised | 132,300,000 | 123,800,000 | $ 144,600,000 | |||
Proceeds (cash) received from exercise of options | 116,500,000 | 99,000,000 | 133,300,000 | |||
Total unrecognized compensation cost related to unvested share-based awards, before tax consideration | $ 318,300,000 | |||||
Weighted-average period for recognition of compensation cost in years | 1 year 4 months 24 days | |||||
Total grant-date fair value of vested stock options | $ 150,600,000 | $ 136,100,000 | $ 114,800,000 | |||
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 | |||||
Share-based Payment Arrangement, Option [Member] | ||||||
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Vesting period (years) | 4 years | 5 years | ||||
Percentage of awards exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 25.00% | 20.00% | ||||
Maximum contractual term of all option | ten years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Vesting period (years) | 4 years | |||||
Percentage of awards exercisable in annual installments on each of the first, second, third, fourth and fifth anniversaries | 25.00% | |||||
2006 Stock Incentive Plan [Member] | ||||||
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Maximum common stock granted (in shares) | 34,000,000 | |||||
Total number of common shares available for future grant Units/Awards granted (in shares) | 10,200,000 | |||||
2010 Stock Plan Incentive [Member] | ||||||
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Total number of common shares available for future grant Units/Awards granted (in shares) | 1,400,000 | |||||
Common Stock Repurchase Program [Member] | ||||||
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Amount authorized to repurchase company common stock | $ 8,200,000,000 | |||||
Number of additional shares authorized, value | 2,000,000,000 | |||||
Repurchased common stock, shares (in shares) | 154,400,000 | |||||
Repurchased common stock, value | $ 6,100,000,000 | |||||
Repurchase of common stock | $ 2,100,000,000 | |||||
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 | |||||
Accounting Standards Update 2016-09 [Member] | ||||||
Stock-Based Compensation (Textuals) [Abstract] | ||||||
Adjustments to additional paid in capital, income tax benefit from share-based compensation | $ 28,700,000 | $ 26,200,000 |
Stock-Based Compensation and _4
Stock-Based Compensation and Shareholders' Equity - Stock Option Awards (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Stock Options | |||
Options granted (in thousands) | 454 | 603 | 1,480 |
Weighted-average exercise price | $ 107.11 | $ 90.98 | $ 82.99 |
Weighted-average grant-date fair value | $ 23.29 | $ 20.82 | $ 17.12 |
Assumptions: | |||
Weighted-average expected volatility | 26.40% | 27.70% | 26.40% |
Weighted-average expected term (in years) | 5 years | 5 years | 5 years 1 month 6 days |
Weighted-average risk-free interest rate | 2.40% | 2.60% | 2.10% |
Weighted-average expected dividend yield | 2.00% | 2.10% | 2.20% |
Stock-Based Compensation and _5
Stock-Based Compensation and Shareholders' Equity - Share-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 150,300 | $ 151,165 | $ 104,188 |
Cost of sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 20,628 | 18,733 | 12,569 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 75,305 | 81,444 | 51,258 |
Selling, marketing, general and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 51,829 | 50,988 | 40,361 |
Special charges [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,538 | $ 0 | $ 0 |
Stock-Based Compensation and _6
Stock-Based Compensation and Shareholders' Equity - Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Options Outstanding (in shares) | |||
Options outstanding at November 3, 2018 (in shares) | 7,297 | ||
Options granted (in shares) | 454 | 603 | 1,480 |
Options exercised (in shares) | (2,364) | ||
Options forfeited (in shares) | (198) | ||
Options expired (in shares) | (6) | ||
Options outstanding at November 2, 2019 (in shares) | 5,183 | 7,297 | |
Options exercisable at November 2, 2019 (in shares) | 2,933 | ||
Options vested or expected to vest at November 2, 2019 (in shares) | 5,046 | ||
Weighted-Average Exercise Price Per Share (USD per share) | |||
Options outstanding at November 3, 2018 (USD per share) | $ 58.42 | ||
Options granted (USD per share) | 107.11 | ||
Options exercised (USD per share) | 49.67 | ||
Options forfeited (USD per share) | 78.05 | ||
Options expired (USD per share) | 21.97 | ||
Options outstanding at November 2, 2019 (USD per share) | 65.97 | $ 58.42 | |
Options exercisable at November 2, 2019 (USD per share) | 55.23 | ||
Options vested or expected to vest at November 2, 2019 (USD per share) | $ 65.42 | ||
Options outstanding, weighted-average remaining contractual term in years | 5 years 10 months 24 days | ||
Options exercisable, weighted-average remaining contractual term in years | 4 years 8 months 12 days | ||
Options vested or expected to vest, weighted-average remaining contractual term in years | 5 years 10 months 24 days | ||
Options outstanding, aggregate intrinsic value | $ 224,945 | ||
Options exercisable, aggregate intrinsic value | 158,789 | ||
Options vested or expected to vest, aggregate intrinsic value | $ 221,766 |
Stock-Based Compensation and _7
Stock-Based Compensation and Shareholders' Equity - Restricted Stock Unit Award Activity (Details) shares in Thousands | 12 Months Ended |
Nov. 02, 2019$ / sharesshares | |
Restricted Stock Units Outstanding (in shares) | |
Restricted stock units/awards outstanding at November 3, 2018 (in shares) | shares | 5,289 |
Units/Awards granted (in shares) | shares | 1,317 |
Restrictions lapsed (in shares) | shares | (1,896) |
Forfeited (in shares) | shares | (314) |
Restricted stock units/awards outstanding at November 2, 2019 (in shares) | shares | 4,396 |
Weighted Average Grant-Date Fair Value Per Share (USD per share) | |
Restricted stock units/awards outstanding at November 3, 2018 (USD per share) | $ / shares | $ 77.54 |
Units/Awards granted (USD per share) | $ / shares | 98.82 |
Restrictions lapsed (USD per share) | $ / shares | 69.38 |
Forfeited (USD per share) | $ / shares | 80.44 |
Restricted stock units/awards outstanding at November 2, 2019 (USD per share) | $ / shares | $ 87.18 |
Industry, Segment and Geograp_3
Industry, Segment and Geographic Information - Textual (Details) | 12 Months Ended |
Nov. 02, 2019segment | |
Industry, Segment and Geographic Information (Textuals) [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 8 |
Industry, Segment and Geograp_4
Industry, Segment and Geographic Information - Revenue Trends by End Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||
Revenue Trends | |||||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | [2] | $ 5,246,354 | [2] | ||||
% of Total Product Revenue | 100.00% | 100.00% | 100.00% | ||||||||||||||
Industrial [Member] | |||||||||||||||||
Revenue Trends | |||||||||||||||||
Revenue | $ 3,003,927 | $ 3,129,569 | $ 2,324,686 | ||||||||||||||
% of Total Product Revenue | 50.00% | 50.00% | 44.00% | ||||||||||||||
Communications [Member] | |||||||||||||||||
Revenue Trends | |||||||||||||||||
Revenue | $ 1,284,087 | $ 1,151,359 | $ 908,594 | ||||||||||||||
% of Total Product Revenue | 21.00% | 18.00% | 17.00% | ||||||||||||||
Automotive [Member] | |||||||||||||||||
Revenue Trends | |||||||||||||||||
Revenue | $ 933,143 | $ 1,009,927 | $ 758,115 | ||||||||||||||
% of Total Product Revenue | 16.00% | 16.00% | 14.00% | ||||||||||||||
Consumer [Member] | |||||||||||||||||
Revenue Trends | |||||||||||||||||
Revenue | $ 769,908 | $ 933,834 | $ 1,254,959 | ||||||||||||||
% of Total Product Revenue | 13.00% | 15.00% | 24.00% | ||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Industry, Segment and Geograp_5
Industry, Segment and Geographic Information - Revenue by Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||
Revenue Trends [Abstract] | |||||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | [2] | $ 5,246,354 | [2] | ||||
% of Total Product Revenue | 100.00% | 100.00% | 100.00% | ||||||||||||||
Sales Channel, Directly to Consumer | |||||||||||||||||
Revenue Trends [Abstract] | |||||||||||||||||
Revenue | $ 2,506,065 | $ 2,721,885 | $ 2,424,514 | ||||||||||||||
% of Total Product Revenue | 42.00% | 44.00% | 46.00% | ||||||||||||||
Sales Channel, Other | |||||||||||||||||
Revenue Trends [Abstract] | |||||||||||||||||
Revenue | $ 75,839 | $ 78,659 | $ 72,505 | ||||||||||||||
% of Total Product Revenue | 1.00% | 1.00% | 1.00% | ||||||||||||||
Sales Channel, Through Intermediary | |||||||||||||||||
Revenue Trends [Abstract] | |||||||||||||||||
Revenue | $ 3,409,161 | $ 3,424,145 | $ 2,749,335 | ||||||||||||||
% of Total Product Revenue | 57.00% | 55.00% | 52.00% | ||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Industry, Segment and Geograp_6
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 | |||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | [1] | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | [2] | $ 5,246,354 | [2] | |||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 1,219,989 | 1,154,328 | [2] | 1,219,989 | 1,154,328 | [2] | 1,107,304 | ||||||||||
United States [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 2,020,886 | 2,277,084 | 2,110,545 | ||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 592,591 | 505,646 | 592,591 | 505,646 | 504,968 | ||||||||||||
Rest of North and South America [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 55,059 | 46,276 | 48,620 | ||||||||||||||
Europe [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 1,374,673 | 1,405,686 | 1,164,725 | ||||||||||||||
Japan [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 657,632 | 714,846 | 586,521 | ||||||||||||||
China [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 1,316,275 | 1,215,949 | 898,645 | ||||||||||||||
Rest of Asia [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 566,540 | 564,848 | 437,298 | ||||||||||||||
Non-US [Member] | |||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||
Revenue | 3,970,179 | 3,947,605 | 3,135,809 | ||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 627,398 | 648,682 | 627,398 | 648,682 | 602,336 | ||||||||||||
Irish [Member] | |||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 184,791 | 202,611 | 184,791 | 202,611 | 188,728 | ||||||||||||
Philippines [Member] | |||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 247,823 | 260,355 | 247,823 | 260,355 | 228,629 | ||||||||||||
Singapore [Member] | |||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 88,385 | 80,383 | 88,385 | 80,383 | 77,015 | ||||||||||||
Malaysia [Member] | |||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | 56,292 | 57,514 | 56,292 | 57,514 | 71,756 | ||||||||||||
All Other Countries [Member] | |||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||
Total property, plant and equipment | $ 50,107 | $ 47,819 | $ 50,107 | $ 47,819 | $ 36,208 | ||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Special Charges - Restructuring
Special Charges - Restructuring Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | [1],[2] | May 05, 2018 | [1],[2] | Feb. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||||||||
Beginning balance | $ 15,152 | $ 15,152 | |||||||||||||||||||
Special charges | $ 64,788 | [1] | $ 927 | $ 8,162 | 21,782 | [1] | $ 1,842 | [1],[2] | $ 1,069 | $ 1,089 | $ 57,318 | [1],[2] | 95,659 | $ 61,318 | [3] | $ 49,463 | [3] | ||||
Non-cash impairment charge | (14,167) | 0 | [3] | 0 | [3] | ||||||||||||||||
Ending balance | 64,418 | 15,152 | 64,418 | 15,152 | |||||||||||||||||
Facility Closing [Member] | |||||||||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||||||||
Beginning balance | 42,974 | 0 | 42,974 | 0 | 0 | ||||||||||||||||
Special charges | 7,556 | 44,452 | 0 | ||||||||||||||||||
Severance payments | 0 | 0 | 0 | ||||||||||||||||||
Non-cash impairment charge | 0 | ||||||||||||||||||||
Non-cash accelerated stock based compensation | 0 | ||||||||||||||||||||
Effect of foreign currency on accrual | (129) | (1,478) | 0 | ||||||||||||||||||
Ending balance | 50,401 | 42,974 | 50,401 | 42,974 | 0 | ||||||||||||||||
Current - accrued liabilities | 0 | 0 | |||||||||||||||||||
Other non-current liabilities | 50,401 | 50,401 | |||||||||||||||||||
Reduction of Operating Costs [Member] | |||||||||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||||||||
Beginning balance | 5,255 | 5,137 | 5,255 | 5,137 | 12,374 | ||||||||||||||||
Special charges | 0 | 16,866 | 8,126 | ||||||||||||||||||
Severance payments | (4,320) | (16,785) | (15,764) | ||||||||||||||||||
Non-cash impairment charge | 0 | ||||||||||||||||||||
Non-cash accelerated stock based compensation | 0 | ||||||||||||||||||||
Effect of foreign currency on accrual | 5 | 37 | 401 | ||||||||||||||||||
Ending balance | 940 | 5,255 | 940 | 5,255 | 5,137 | ||||||||||||||||
Current - accrued liabilities | 940 | 940 | |||||||||||||||||||
Other non-current liabilities | 0 | 0 | |||||||||||||||||||
Early Retirement Action [Member] | |||||||||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||||||||
Beginning balance | 9,897 | 32,211 | 9,897 | 32,211 | 0 | ||||||||||||||||
Special charges | 0 | 0 | 41,337 | ||||||||||||||||||
Severance payments | (5,314) | (22,314) | (9,126) | ||||||||||||||||||
Non-cash impairment charge | 0 | ||||||||||||||||||||
Non-cash accelerated stock based compensation | 0 | ||||||||||||||||||||
Effect of foreign currency on accrual | 0 | 0 | 0 | ||||||||||||||||||
Ending balance | 4,583 | 9,897 | 4,583 | 9,897 | 32,211 | ||||||||||||||||
Current - accrued liabilities | 4,583 | 4,583 | |||||||||||||||||||
Other non-current liabilities | 0 | 0 | |||||||||||||||||||
Repositioning Action [Member] | |||||||||||||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||||||||||||
Beginning balance | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||||||||
Special charges | 88,103 | 0 | 0 | ||||||||||||||||||
Severance payments | (12,487) | 0 | 0 | ||||||||||||||||||
Non-cash impairment charge | (14,167) | ||||||||||||||||||||
Non-cash accelerated stock based compensation | (2,538) | ||||||||||||||||||||
Effect of foreign currency on accrual | (16) | 0 | 0 | ||||||||||||||||||
Ending balance | 58,895 | $ 0 | 58,895 | $ 0 | $ 0 | ||||||||||||||||
Current - accrued liabilities | 58,895 | 58,895 | |||||||||||||||||||
Other non-current liabilities | $ 0 | $ 0 | |||||||||||||||||||
[1] | Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[3] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Special Charges - Textual (Deta
Special Charges - Textual (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019USD ($) | [1] | Aug. 03, 2019USD ($) | [1] | May 04, 2019USD ($) | [1] | Feb. 02, 2019USD ($) | [1] | Nov. 03, 2018USD ($) | [1],[2] | Aug. 04, 2018USD ($) | [1],[2] | May 05, 2018USD ($) | [1],[2] | Feb. 03, 2018USD ($) | [1],[2] | Nov. 02, 2019USD ($)employee | Nov. 03, 2018USD ($)employee | Oct. 28, 2017USD ($)employee | |||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | $ 64,788 | $ 927 | $ 8,162 | $ 21,782 | $ 1,842 | $ 1,069 | $ 1,089 | $ 57,318 | $ 95,659 | $ 61,318 | [3] | $ 49,463 | [3] | ||||||||
Impairment charges | 14,167 | 0 | [3] | 0 | [3] | ||||||||||||||||
Facility Closing [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | 7,556 | 44,452 | 0 | ||||||||||||||||||
Severance and fringe benefit costs | 0 | 0 | 0 | ||||||||||||||||||
Impairment charges | 0 | ||||||||||||||||||||
Reduction of Operating Costs [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | 0 | 16,866 | 8,126 | ||||||||||||||||||
Severance and fringe benefit costs | 4,320 | 16,785 | 15,764 | ||||||||||||||||||
Impairment charges | 0 | ||||||||||||||||||||
Early Retirement Action [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | 0 | 0 | 41,337 | ||||||||||||||||||
Severance and fringe benefit costs | 5,314 | 22,314 | 9,126 | ||||||||||||||||||
Impairment charges | 0 | ||||||||||||||||||||
Repositioning Action [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | 88,103 | 0 | 0 | ||||||||||||||||||
Severance and fringe benefit costs | 12,487 | 0 | 0 | ||||||||||||||||||
Impairment charges | 14,167 | ||||||||||||||||||||
Workforce Reduction Plan 2019 [Member] | Facility Closing [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | $ 52,000 | ||||||||||||||||||||
Number of manufacturing engineering and selling marketing general and administrative employees related to action | employee | 1,100 | ||||||||||||||||||||
Workforce Reduction Plan 2019 [Member] | Repositioning Action [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | $ 88,100 | ||||||||||||||||||||
Number of manufacturing engineering and selling marketing general and administrative employees related to action | employee | 464 | ||||||||||||||||||||
Number of manufacturing engineering and selling marketing general and administrative employees who are planned to be separated related to action | employee | 307 | ||||||||||||||||||||
Severance and fringe benefit costs | $ 73,900 | ||||||||||||||||||||
Impairment charges | $ 14,200 | ||||||||||||||||||||
Workforce Reduction Plan 2018 [Member] | Reduction of Operating Costs [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | $ 16,900 | $ 8,100 | |||||||||||||||||||
Number of manufacturing engineering and selling marketing general and administrative employees related to action | employee | 126 | 177 | |||||||||||||||||||
Workforce Reduction Plan 2017 [Member] | Early Retirement Action [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Special charges | $ 41,300 | ||||||||||||||||||||
Number of manufacturing engineering and selling marketing general and administrative employees related to action | employee | 225 | ||||||||||||||||||||
Minimum [Member] | Workforce Reduction Plan 2019 [Member] | Facility Closing [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Restructuring, term | 1 year | ||||||||||||||||||||
Maximum [Member] | Workforce Reduction Plan 2019 [Member] | Facility Closing [Member] | |||||||||||||||||||||
Special Charges (Textuals) [Abstract] | |||||||||||||||||||||
Restructuring, term | 3 years | ||||||||||||||||||||
[1] | Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[3] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 10, 2017$ / shares | Oct. 28, 2017USD ($) |
Business Acquisition [Line Items] | ||
Acquisition related costs | $ 47.5 | |
Linear Technology Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Revenue of acquiree since acquisition date | $ 913.2 | |
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) - Linear Technology Corporation [Member] - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Mar. 10, 2017 | Nov. 02, 2019 |
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 | |
Common Stock [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 11,100,000 | |
Number of shares issued | 55.9 | |
Share Price | $ 82.20 | |
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 | Nov. 02, 2019 | Nov. 03, 2018 | [1] | Oct. 28, 2017 | Mar. 10, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 12,256,880 | $ 12,252,604 | $ 12,217,455 | ||
Linear Technology Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 1,466,445 | ||||
Marketable securities | 100,246 | ||||
Accounts receivable | 143,542 | ||||
Inventories | 461,695 | ||||
Prepaid expenses and other assets | 14,782 | ||||
Property, plant and equipment | 462,285 | ||||
Intangible assets | 5,157,300 | ||||
Goodwill | 10,533,919 | ||||
Total assets | 18,340,214 | ||||
Assumed liabilities | 190,925 | ||||
Deferred tax liabilities | 2,392,633 | ||||
Total estimated purchase consideration | 15,756,656 | ||||
Acquired receivable | 143,500 | ||||
Gross contractual amount | 145,200 | ||||
Estimated uncollectible | $ 1,700 | ||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Acquisitions - Intangible Asset
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 | $ 5,157,300 |
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 | $ 4,039,000 |
Weighted Average Useful Lives (in Years) | 12 years |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - Linear Technology Corporation [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Oct. 28, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ | $ 5,832,412 |
Net income | $ | $ 1,133,097 |
Basic net income per common share | $ / shares | $ 3.07 |
Diluted net income per common share | $ / shares | $ 3.03 |
Other Investments (Details)
Other Investments (Details) - USD ($) | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Other than temporary impairment | $ 6,600,000 | $ 0 | $ 5,000,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 | |
Payables and Accruals [Abstract] | |||
Distributor price adjustments and other revenue reserves | $ 227,020 | $ 144,887 | |
Accrued compensation and benefits | 168,471 | 254,932 | |
Interest rate swap | 138,798 | 0 | |
Accrued interest | 61,255 | 64,974 | |
Accrued restructuring | 64,418 | 15,152 | |
Other | 135,854 | 150,162 | |
Total accrued liabilities | $ 795,816 | $ 630,107 | [1] |
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Lease Commitments - Textual (De
Lease Commitments - Textual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Lease Commitments (Textuals) [Abstract] | |||
Expiration date of operating leases related to facilities, equipment and software | The Company leases certain land, facilities, equipment and software under various operating leases that expire at various dates through 2057 | ||
Total rental expense | $ 92.3 | $ 84.9 | $ 58.8 |
Lease Commitments (Details)
Lease Commitments (Details) $ in Thousands | Nov. 02, 2019USD ($) |
Schedule of future minimum rental payments required under long-term operating leases | |
2020 | $ 79,789 |
2021 | 67,993 |
2022 | 40,338 |
2023 | 37,673 |
2024 | 32,757 |
Later Years | 190,171 |
Total | $ 448,721 |
Retirement Plans - Textual (Det
Retirement Plans - Textual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
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 | $ 47.7 | $ 41.4 | $ 35.8 |
Maximum of each participants eligible deferred contributions | 8.00% | ||
Total expense related to the defined benefit pension and other retirement plans for certain non-U.S. employees | $ 35.8 | 36.3 | $ 33 |
Accumulated benefit obligation for non-U.S. pension plans | $ 138.1 | $ 105.8 |
Retirement Plans - Net Annual P
Retirement Plans - Net Annual Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Net periodic pension cost | |||
Service cost | $ 5,578 | $ 6,891 | $ 6,688 |
Interest cost | 4,079 | 3,984 | 3,581 |
Expected return on plan assets | (5,279) | (4,559) | (4,086) |
Amortization of prior service cost | 3 | 1 | (9) |
Amortization of transition obligation | 0 | 10 | 14 |
Recognized actuarial loss | 1,000 | 1,621 | 1,865 |
Net periodic pension cost | $ 5,381 | $ 7,948 | $ 8,053 |
Retirement Plans - Obligation a
Retirement Plans - Obligation and Asset Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | $ 123,538 | $ 139,516 | |
Service cost | 5,578 | 6,891 | $ 6,688 |
Interest cost | 4,079 | 3,984 | 3,581 |
Actuarial loss (gain) | 38,210 | (20,406) | |
Benefits paid | (3,053) | (4,301) | |
Exchange rate adjustment | 1,296 | (2,146) | |
Benefit obligation at end of year | 169,648 | 123,538 | 139,516 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 84,655 | 79,616 | |
Actual return on plan assets | 12,389 | (2,626) | |
Employer contributions | 4,177 | 13,793 | |
Benefits paid | (3,053) | (4,301) | |
Exchange rate adjustment | 1,771 | (1,827) | |
Fair value of plan assets at end of year | 99,939 | 84,655 | $ 79,616 |
Reconciliation of Funded Status | |||
Funded status | (69,709) | (38,883) | |
Amounts Recognized in the Balance Sheet | |||
Non-current assets | 0 | 6,569 | |
Current liabilities | (846) | (767) | |
Non-current liabilities | (68,863) | (44,685) | |
Net amount recognized | (69,709) | (38,883) | |
Reconciliation of Amounts Recognized in the Statement of Financial Position | |||
Prior service credit | (44) | (44) | |
Net loss | (50,878) | (20,800) | |
Accumulated other comprehensive loss | (50,922) | (20,844) | |
Accumulated contributions less than net periodic benefit cost | (18,787) | (18,039) | |
Net amount recognized | (69,709) | (38,883) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Net loss (gain) arising during the year | 31,100 | (13,220) | |
Effect of exchange rates on amounts included in AOCI | (18) | (138) | |
Amounts recognized as a component of net periodic benefit cost | |||
Amortization, settlement or curtailment recognition of net transition obligation | 0 | (10) | |
Amortization or curtailment recognition of prior service credit (cost) | 0 | (1) | |
Amortization or settlement recognition of net loss | (1,004) | (1,621) | |
Total recognized in other comprehensive loss | 30,078 | (14,990) | |
Total recognized in net periodic cost and other comprehensive loss | 35,459 | (7,042) | |
Estimated amounts that will be amortized from AOCI over the next fiscal year | |||
Prior service credit | (2) | (2) | |
Net loss | (2,581) | (1,015) | |
Total | $ (2,583) | $ (1,017) |
Retirement Plans - Accumulated
Retirement Plans - Accumulated and Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 |
Plans with projected benefit obligations in excess of plan assets: | ||
Projected benefit obligation | $ 169,648 | $ 46,626 |
Fair value of plan assets | 99,939 | 1,174 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Projected benefit obligation | 61,019 | 46,626 |
Accumulated benefit obligation | 54,318 | 41,701 |
Fair value of plan assets | $ 1,305 | $ 1,174 |
Retirement Plans - Weighted Ave
Retirement Plans - Weighted Average Assumptions (Details) | 12 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | |
Projected benefit obligation | ||
Discount rate | 2.45% | 3.53% |
Rate of increase in compensation levels | 3.38% | 3.26% |
Net annual periodic pension cost was determined using the following weighted average assumptions | ||
Discount rate | 3.53% | 3.02% |
Expected long-term return on plan assets | 6.16% | 5.54% |
Rate of increase in compensation levels | 3.26% | 3.18% |
Retirement Plans - Plan Assets
Retirement Plans - Plan Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | $ 99,939 | $ 84,655 | $ 79,616 |
Unit trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 4,736 | 2,549 | |
Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 45,303 | 38,658 | |
Fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 48,274 | 42,312 | |
Cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 1,626 | 1,136 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 7,740 | 4,573 | |
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 | 6,114 | 3,437 | |
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 | 1,626 | 1,136 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 92,199 | 80,082 | |
Significant Other Observable Inputs (Level 2) [Member] | Unit trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 4,736 | 2,549 | |
Significant Other Observable Inputs (Level 2) [Member] | Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 39,189 | 35,221 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets measured at fair value | 48,274 | 42,312 | |
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 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Nov. 02, 2019USD ($) |
Expected Company Contributions | |
2020 | $ 7,565 |
Expected Benefit Payments | |
2021 | 3,027 |
2022 | 2,316 |
2023 | 2,899 |
2024 | 3,363 |
2024 | 3,363 |
2025 through 2028 | $ 25,159 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) $ / shares in Units, $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||||
Feb. 02, 2019USD ($) | Nov. 02, 2019USD ($)$ / shares | Nov. 03, 2018USD ($)$ / shares | Oct. 28, 2017USD ($)$ / shares | Oct. 31, 2020USD ($) | Nov. 02, 2019EUR (€) | Nov. 04, 2018USD ($) | Oct. 29, 2016USD ($) | ||
Operating Loss Carryforwards [Line Items] | |||||||||
Blended statutory income tax rate | 23.40% | ||||||||
Change in tax rate, income tax expense (benefit) | $ 7,500 | $ 637,000 | |||||||
U.S. federal statutory tax rate | 21.00% | 23.40% | 35.00% | ||||||
Transition tax for accumulated foreign earnings, provisional income tax expense | $ 691,000 | ||||||||
Transition tax for accumulated foreign earnings, income tax expense | 755,000 | ||||||||
Transition tax for accumulated foreign earnings related to recorded amounts in prior years, provisional income tax expense (benefit) | 64,000 | ||||||||
Unrecognized income tax, other outside basis differences | $ 22,800,000 | ||||||||
Deferred tax assets | 1,582,382 | 9,665 | [1] | $ 1,664,794 | |||||
Deferred income tax | 2,088,212 | 990,409 | [1] | 2,314,512 | |||||
Valuation allowance | (116,349) | (82,280) | |||||||
Liability for unrealized tax benefits | 34,300 | 13,300 | |||||||
Liability for interest and penalties | 4,700 | 3,500 | |||||||
Interest and penalties related to uncertain tax positions | 1,500 | (7,300) | $ (12,300) | ||||||
Unrecognized tax benefits | 34,343 | 13,256 | 37,857 | $ 68,535 | |||||
Worthless stock deduction | 4,200 | ||||||||
Unrecognized tax benefits reserve, increase resulting from prior period tax positions | 11,400 | ||||||||
Income tax holiday, amount | $ 14,900 | $ 27,700 | $ 27,400 | ||||||
Impact of income tax holiday, basic and diluted (per share) | $ / shares | $ 0.04 | $ 0.07 | $ 0.08 | ||||||
Internal Revenue Service (IRS) [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Reserve release | $ 35,500 | $ 50,500 | |||||||
Unrecognized tax benefits | 41,700 | ||||||||
Unrecognized tax benefits with interest | 9,900 | $ 8,800 | |||||||
Reserve release, transfer pricing | 18,100 | ||||||||
Internal Revenue Service (IRS) [Member] | Tax Year 2013 [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Reserve release | 3,300 | ||||||||
Revenue Commissioners, Ireland [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income tax examination, excluding penalties and interest expense | $ 48,000 | € 43 | |||||||
Forecast [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
State credit carryover | $ 133,500 | ||||||||
Accounting Standards Update 2016-16 [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Deferred tax assets | 1,700,000 | 1,655,129 | |||||||
Deferred income tax | $ 1,300,000 | 1,324,103 | |||||||
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Effect of accounting standards | $ 331,026 | ||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1],[2] | Aug. 04, 2018 | [1],[2] | May 05, 2018 | [1],[2] | Feb. 03, 2018 | [1],[2] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
U.S. federal statutory tax rate | 21.00% | 23.40% | 35.00% | ||||||||||||||||||
Income tax provision reconciliation: | |||||||||||||||||||||
Tax at statutory rate: | $ 312,003 | $ 387,343 | $ 327,161 | ||||||||||||||||||
Net foreign income subject to lower tax rate | (242,893) | (420,756) | (395,800) | ||||||||||||||||||
State income taxes, net of federal benefit | (31,265) | 4,428 | (7,239) | ||||||||||||||||||
Valuation allowance | 34,069 | 2,232 | (7,778) | ||||||||||||||||||
Federal research and development tax credits | (50,769) | (33,602) | (16,475) | ||||||||||||||||||
Change in uncertain tax positions | 7,233 | (32,945) | (51,088) | ||||||||||||||||||
Amortization of purchased intangibles | 111,547 | 213,198 | 159,466 | ||||||||||||||||||
Acquisition and integration costs | 0 | 0 | 109,040 | ||||||||||||||||||
Taxes attributable to the Tax Cuts and Jobs Act of 2017 | (7,500) | 56,608 | 0 | ||||||||||||||||||
U.S. effects of international operations | 19,782 | 0 | 0 | ||||||||||||||||||
Windfalls (under ASU 2016-09) | (28,677) | (26,237) | 0 | ||||||||||||||||||
Other, net | (813) | (1,935) | 12,081 | ||||||||||||||||||
Provision for income taxes | $ 10,133 | $ 27,184 | $ 40,460 | $ 44,940 | $ 4,481 | $ 21,949 | $ 39,797 | $ 82,107 | $ 122,717 | $ 148,334 | [3] | $ 129,368 | [3] | ||||||||
[1] | See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[3] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||
Pretax income: | |||||||||||||||||
Domestic | $ 484,876 | $ 615,238 | $ 161,248 | ||||||||||||||
Foreign | 1,000,852 | 1,040,076 | 773,499 | ||||||||||||||
Income before income taxes | $ 287,827 | $ 389,558 | $ 408,397 | $ 399,946 | $ 409,336 | $ 430,506 | $ 440,125 | $ 375,347 | $ 1,485,728 | $ 1,655,314 | [2] | $ 934,747 | [2] | ||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 02, 2019 | [1] | Aug. 03, 2019 | [1] | May 04, 2019 | [1] | Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1],[2] | Aug. 04, 2018 | [1],[2] | May 05, 2018 | [1],[2] | Feb. 03, 2018 | [1],[2] | Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |||
Current: | |||||||||||||||||||||
Federal tax | $ 74,049 | $ 824,848 | $ 868,051 | ||||||||||||||||||
State | 2 | 6,043 | 8,594 | ||||||||||||||||||
Foreign | 139,919 | 47,819 | 63,121 | ||||||||||||||||||
Total current | 213,970 | 878,710 | 939,766 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | (158,472) | (738,163) | (780,310) | ||||||||||||||||||
State | (3,627) | 1,092 | (23,982) | ||||||||||||||||||
Foreign | 70,846 | 6,695 | (6,106) | ||||||||||||||||||
Total deferred | 91,253 | 730,376 | 810,398 | ||||||||||||||||||
Provision for income taxes | $ 10,133 | $ 27,184 | $ 40,460 | $ 44,940 | $ 4,481 | $ 21,949 | $ 39,797 | $ 82,107 | $ 122,717 | $ 148,334 | [3] | $ 129,368 | [3] | ||||||||
[1] | See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | ||||||||||||||||||||
[3] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Nov. 03, 2018 |
Deferred tax assets: | ||
Inventory reserves | $ 21,081 | $ 22,184 |
Reserves for compensation and benefits | 53,090 | 39,185 |
Tax credit carryovers | 133,485 | 112,851 |
Stock-based compensation | 63,589 | 53,105 |
Net operating losses | 5,299 | 5,997 |
Intra-entity transfer of intangible assets | 1,567,536 | 0 |
Other | 70,974 | 36,898 |
Total gross deferred tax assets | 1,915,054 | 270,220 |
Valuation allowance | (116,349) | (82,280) |
Total deferred tax assets | 1,798,705 | 187,940 |
Deferred tax liabilities: | ||
Depreciation | (38,464) | (37,023) |
Deferred GILTI tax liabilities | (1,254,029) | 0 |
Acquisition-related intangible | (1,012,042) | (1,129,747) |
Other | 0 | (1,914) |
Total gross deferred tax liabilities | (2,304,535) | (1,168,684) |
Net deferred tax liabilities | $ (505,830) | $ (980,744) |
Income Taxes - Changes in Unrea
Income Taxes - Changes in Unrealized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Changes in the total amounts of unrealized tax benefits | |||
Unrealized tax benefits (beginning) | $ 13,256 | $ 37,857 | $ 68,535 |
Additions for tax positions related to current year | 3,398 | 1,334 | 1,742 |
Additions for tax positions related to acquisition | 12,332 | ||
Reductions for tax positions related to prior years | (18,613) | (295) | (43,186) |
Reductions due to lapse of applicable statute of limitations | (924) | (25,640) | (1,566) |
Unrealized tax benefits (end) | $ 34,343 | $ 13,256 | $ 37,857 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) | Sep. 26, 2016 | Nov. 02, 2019USD ($) | Nov. 02, 2019USD ($) | Sep. 23, 2016USD ($) |
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term | 5 years | |||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||
Long-term debt | $ 0 | $ 0 | ||
Debt instrument, covenant, leverage ratio | 4 | 3.5 | ||
Unsecured revolving credit facility, covenant compliance | compliant with these covenants | |||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.00% | |||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.375% | |||
Eurodollar [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.69% | |||
Eurodollar [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.375% |
Debt (Details)
Debt (Details) | Jun. 28, 2019USD ($) | Mar. 12, 2018USD ($) | Nov. 10, 2017 | Mar. 10, 2017USD ($) | Dec. 05, 2016USD ($) | Sep. 23, 2016USD ($) | Jul. 26, 2016USD ($) | Dec. 14, 2015USD ($) | Jun. 03, 2013USD ($) | Feb. 02, 2019USD ($) | Oct. 31, 2020 | Nov. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Oct. 28, 2017USD ($) | [1] | |
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of debt | $ 5,525,000,000 | $ 6,375,000,000 | ||||||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on June 5 and December 5 of each year, commencing June 5, 2017 | |||||||||||||||
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 | |||||||||||||||
Proceeds from debt | 1,250,000,000 | 743,778,000 | [1] | $ 11,156,164,000 | ||||||||||||
Repayments of debt | $ 850,000,000 | 2,275,000,000 | [1] | $ 5,050,000,000 | ||||||||||||
Unsecured Term Loan, Due March 2020 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | |||||||||||||||
Debt instrument, covenant, leverage ratio | 4 | |||||||||||||||
Repayments of debt | $ 325,000,000 | |||||||||||||||
Unsecured Term Loan, Due March 2020 [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||||||||
Unsecured Term Loan, Due March 2020 [Member] | Company Debt Rating [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||||||||||||
Unsecured Term Loan, Due March 2020 [Member] | Forecast [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, covenant, leverage ratio | 3.5 | |||||||||||||||
Senior 2.875% Unsecured Notes Due June 2023 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
3.9% Senior unsecured notes due December 15, 2025 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Semi-annual fixed interest payments | semi-annual fixed interest payments due on June 15 and December 15 of each year, commencing June 15, 2016 | |||||||||||||||
Net proceeds of notes offering | $ 1,200,000,000 | |||||||||||||||
Bridge Loan [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Unamortized bridge fees | $ 7,200,000 | $ 13,700,000 | ||||||||||||||
Bridge Loan [Member] | Senior Unsecured Bridge Facility, Ninety Days [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, term | 90 days | 90 days | ||||||||||||||
Bridge Loan [Member] | 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 | |||||||||||||||
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 | |||||||||||||||
Unsecured Debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from debt, net of issuance costs | $ 743,800,000 | |||||||||||||||
Unsecured Debt [Member] | Unsecured Term Loan, Three Year, Due March 2020 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, term | 3 years | 3 years | 3 years | |||||||||||||
Unsecured Debt [Member] | Unsecured Term Loan, Five Year, Due March 2020 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, term | 5 years | 5 years | 5 years | 5 years | ||||||||||||
Unsecured Debt [Member] | Senior 2.85% Unsecured Notes Due March 2020 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate to be paid on long term notes | 2.85% | |||||||||||||||
Proceeds from debt | $ 300,000,000 | |||||||||||||||
Unsecured Debt [Member] | Senior 2.90% Unsecured Notes Due January 2021 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate to be paid on long term notes | 2.95% | |||||||||||||||
Debt instrument, covenant compliance | compliance with these covenants | |||||||||||||||
Proceeds from debt | $ 450,000,000 | |||||||||||||||
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 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% | |||||||||||||||
Senior 3.50% Unsecured Notes Due December 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 4.50% Unsecured Notes Dues December 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% | |||||||||||||||
Fair Value, Nonrecurring [Member] | Senior 2.875% Unsecured Notes Due June 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, 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, 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, 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% | |||||||||||||||
Minimum [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.69% | |||||||||||||||
Minimum [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | |||||||||||||||
Minimum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year, Due March 2020 [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||||||||
Minimum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year, Due March 2020 [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.88% | |||||||||||||||
Maximum [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 1.375% | |||||||||||||||
Maximum [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 0.375% | |||||||||||||||
Maximum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Three Year, Due March 2020 [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 1.63% | |||||||||||||||
Maximum [Member] | Unsecured Debt [Member] | Unsecured Term Loan, Five Year, Due March 2020 [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) | Nov. 02, 2019 | Nov. 03, 2018 |
Debt Instrument [Line Items] | ||
Principal | $ 5,525,000,000 | $ 6,375,000,000 |
Unamortized discount and debt issuance costs | 33,081,000 | 42,326,000 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 5,225,000,000 | 6,308,000,000 |
Unamortized discount and debt issuance costs | 32,748,000 | 42,326,000 |
Debt, Current [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000,000 | 67,000,000 |
Unamortized discount and debt issuance costs | 333,000 | 0 |
Debt, Current [Member] | Unsecured Term Loan, Three Year, Due March 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 67,000,000 |
Unamortized discount and debt issuance costs | 0 | 0 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 2.85% Unsecured Notes Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 300,000,000 |
Unamortized discount and debt issuance costs | 0 | 1,273,000 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 2.90% Unsecured Notes Due January 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 450,000,000 | 450,000,000 |
Unamortized discount and debt issuance costs | 1,819,000 | 3,344,000 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 2.50% Unsecured Notes Due December 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 400,000,000 |
Unamortized discount and debt issuance costs | 1,918,000 | 2,830,000 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 2.875% Unsecured Notes Due June 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 500,000,000 | 500,000,000 |
Unamortized discount and debt issuance costs | 2,200,000 | 2,813,000 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 3.125% Unsecured Notes Due December 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 550,000,000 | 550,000,000 |
Unamortized discount and debt issuance costs | 3,619,000 | 4,499,000 |
Senior Notes [Member] | Long-term Debt [Member] | Note 2025, December 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 850,000,000 | 850,000,000 |
Unamortized discount and debt issuance costs | 5,382,000 | 6,262,000 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 3.50% Unsecured Notes Due December 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 900,000,000 | 900,000,000 |
Unamortized discount and debt issuance costs | 9,086,000 | 10,361,000 |
Senior Notes [Member] | Long-term Debt [Member] | Senior 4.50% Unsecured Notes Dues December 2036 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 250,000,000 | 250,000,000 |
Unamortized discount and debt issuance costs | 3,576,000 | 3,778,000 |
Senior Notes [Member] | Long-term Debt [Member] | Note 2045, December 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000,000 | 400,000,000 |
Unamortized discount and debt issuance costs | 5,148,000 | 5,345,000 |
Senior Notes [Member] | Debt, Current [Member] | Senior 2.85% Unsecured Notes Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 300,000,000 | 0 |
Unamortized discount and debt issuance costs | 333,000 | 0 |
Unsecured Debt [Member] | Long-term Debt [Member] | Unsecured Term Loan, Three Year, Due March 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 925,000,000 | 0 |
Unamortized discount and debt issuance costs | 0 | 0 |
Unsecured Debt [Member] | Long-term Debt [Member] | Unsecured Term Loan, Three Year, Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 358,000,000 |
Unamortized discount and debt issuance costs | 0 | 318,000 |
Unsecured Debt [Member] | Long-term Debt [Member] | Unsecured Term Loan, Five Year, Due March 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 1,350,000,000 |
Unamortized discount and debt issuance costs | $ 0 | $ 1,503,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Common Stock [Member] | Nov. 25, 2019$ / shares |
Subsequent Event [Line Items] | |
Common stock cash dividends per share, date declared | Nov. 25, 2019 |
Common stock cash dividends per share, declared | $ 0.54 |
Common stock cash dividends per share, paid date | Dec. 17, 2019 |
Common stock cash dividends per share, date of record | Dec. 6, 2019 |
Supplementary Financial Infor_3
Supplementary Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Nov. 02, 2019 | Nov. 03, 2018 | [2] | Oct. 28, 2017 | [2] | ||||||
Supplementary Financial Information | ||||||||||||||||||||||
Revenue | $ 1,443,219 | $ 1,480,143 | $ 1,526,602 | $ 1,541,101 | $ 1,536,128 | $ 1,558,189 | $ 1,563,502 | $ 1,566,870 | $ 5,991,065 | $ 6,224,689 | $ 5,246,354 | |||||||||||
Cost of sales | 501,028 | 482,332 | 492,510 | 501,445 | 490,585 | 497,557 | 491,038 | 495,113 | 1,977,315 | 1,974,293 | 2,078,113 | |||||||||||
Gross margin | $ 942,191 | $ 997,811 | $ 1,034,092 | $ 1,039,656 | $ 1,045,543 | $ 1,060,632 | $ 1,072,464 | $ 1,071,757 | 4,013,750 | 4,250,396 | 3,168,241 | |||||||||||
% of Revenue | 65.30% | 67.40% | 67.70% | 67.50% | 68.10% | 68.10% | 68.60% | 68.40% | ||||||||||||||
Research and development | $ 277,018 | $ 280,102 | $ 285,846 | $ 287,382 | $ 295,609 | $ 291,551 | $ 289,381 | $ 288,506 | 1,130,348 | 1,165,047 | 968,133 | |||||||||||
Selling, marketing, general and administrative | 154,799 | 162,825 | 163,128 | 167,342 | 175,296 | 171,388 | 172,047 | 176,809 | 648,094 | 695,540 | 690,533 | |||||||||||
Special charges | 64,788 | [3] | 927 | [3] | 8,162 | [3] | 21,782 | [3] | 1,842 | [3] | 1,069 | [3] | 1,089 | [3] | 57,318 | [3] | 95,659 | 61,318 | 49,463 | |||
Amortization of intangibles | 107,225 | 107,231 | 107,261 | 107,324 | 107,345 | 107,409 | 107,129 | 107,019 | 429,041 | 428,902 | 297,351 | |||||||||||
Total operating expenses | 603,830 | 551,085 | 564,397 | 583,830 | 580,092 | 571,417 | 569,646 | 629,652 | 2,303,142 | 2,350,807 | 2,005,480 | |||||||||||
Operating income | $ 338,361 | $ 446,726 | $ 469,695 | $ 455,826 | $ 465,451 | $ 489,215 | $ 502,818 | $ 442,105 | 1,710,608 | 1,899,589 | 1,162,761 | |||||||||||
% of Revenue | 23.00% | 30.00% | 31.00% | 30.00% | 30.00% | 31.00% | 32.00% | 28.00% | ||||||||||||||
Nonoperating (income) expenses: | ||||||||||||||||||||||
Interest expense | $ 50,775 | $ 59,871 | $ 59,701 | $ 58,728 | $ 59,102 | $ 61,665 | $ 64,792 | $ 68,030 | 229,075 | 253,589 | 250,840 | |||||||||||
Interest income | (1,988) | (2,625) | (2,928) | (2,688) | (2,791) | (2,588) | (1,912) | (2,092) | (10,229) | (9,383) | (30,333) | |||||||||||
Other, net | 1,747 | (78) | 4,525 | (160) | (196) | (368) | (187) | 820 | 6,034 | 69 | 7,507 | |||||||||||
Total nonoperating (income) expense | 50,534 | 57,168 | 61,298 | 55,880 | 56,115 | 58,709 | 62,693 | 66,758 | 224,880 | 244,275 | 228,014 | |||||||||||
Income before income taxes | $ 287,827 | $ 389,558 | $ 408,397 | $ 399,946 | $ 409,336 | $ 430,506 | $ 440,125 | $ 375,347 | 1,485,728 | 1,655,314 | 934,747 | |||||||||||
% of Revenue | 20.00% | 26.00% | 27.00% | 26.00% | 27.00% | 28.00% | 28.00% | 24.00% | ||||||||||||||
Provision for income taxes | $ 10,133 | [4] | $ 27,184 | [4] | $ 40,460 | [4] | $ 44,940 | [4] | $ 4,481 | [4] | $ 21,949 | [4] | $ 39,797 | [4] | $ 82,107 | [4] | $ 122,717 | $ 148,334 | $ 129,368 | |||
Net income | $ 277,694 | $ 362,374 | $ 367,937 | $ 355,006 | $ 404,855 | $ 408,557 | $ 400,328 | $ 293,240 | ||||||||||||||
% of Revenue | 19.00% | 24.00% | 24.00% | 23.00% | 26.00% | 26.00% | 26.00% | 19.00% | ||||||||||||||
Net income allocable to common shares (in shares) | [5] | 277,182 | 361,562 | 367,029 | 353,969 | [1] | 403,511 | 407,031 | 398,796 | 291,997 | ||||||||||||
Earnings per share - Basic (in dollars per share) | ||||||||||||||||||||||
Basic earnings per common share (USD per share) | $ 0.75 | $ 0.98 | $ 0.99 | $ 0.96 | $ 1.09 | $ 1.10 | $ 1.08 | $ 0.79 | ||||||||||||||
Earnings per share - Diluted (in dollars per share) | ||||||||||||||||||||||
Diluted earnings per common share (USD per share) | $ 0.74 | $ 0.97 | $ 0.98 | $ 0.95 | $ 1.08 | $ 1.08 | $ 1.06 | $ 0.78 | ||||||||||||||
Shares used to compute earnings per share (in thousands): | ||||||||||||||||||||||
Shares used to compute earnings per share - Basic (in shares) | 369,051 | 369,533 | 369,246 | 368,703 | 371,074 | 371,315 | 370,384 | 369,093 | 369,133 | 370,430 | 346,371 | |||||||||||
Shares used to compute earnings per share - Diluted (in shares) | 372,584 | 373,077 | 373,342 | 372,506 | 375,116 | 375,815 | 374,778 | 374,189 | 372,871 | 374,938 | 350,484 | |||||||||||
Dividends declared per share (USD per share) | $ 0.54 | $ 0.54 | $ 0.54 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.45 | ||||||||||||||
[1] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). | |||||||||||||||||||||
[2] | Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASU 2014-09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. | |||||||||||||||||||||
[3] | Represents charges recorded for various restructuring actions. See Note 5, Special Charges, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | |||||||||||||||||||||
[4] | See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | |||||||||||||||||||||
[5] | Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net income by the income allocable to participating securities. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | |
Accounts Receivable Reserves and Allowances [Member] | |||
Accounts Receivable Reserves and Allowances: | |||
Balance at Beginning of Period | $ 2,284 | $ 7,213 | $ 5,117 |
Additions (Reductions) Charged to Income Statement | 13,979 | 2,313 | 12,284 |
Other | 0 | 0 | 0 |
Deductions | 7,876 | 7,242 | 10,188 |
Balance at End of Period | 8,387 | 2,284 | 7,213 |
Valuation Reserve for Deferred Tax Asset [Member] | |||
Accounts Receivable Reserves and Allowances: | |||
Balance at Beginning of Period | 82,280 | 53,787 | 67,094 |
Additions (Reductions) Charged to Income Statement | 34,069 | 30,254 | (7,778) |
Other | 0 | (1,761) | 0 |
Deductions | 0 | 0 | 5,529 |
Balance at End of Period | $ 116,349 | $ 82,280 | $ 53,787 |