Analog Devices (ADI) 10-Q 18 Aug 09 2009 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Thousands, except Share data	9 Months Ended Aug. 01, 2009	May. 03, 2008
Document and Company Information [Abstract]
Entity Registrant Name	Analog Devices, Inc.
Entity Central Index Key	0000006281
Document Type	10-Q
Document Period End Date	2009-08-01
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$6,911,000
Entity Common Stock, Shares Outstanding	291,549,108

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data	3 Months Ended Aug. 01, 2009		3 Months Ended Aug. 02, 2008		9 Months Ended Aug. 01, 2009		9 Months Ended Aug. 02, 2008
Revenue	$491,991		$658,986		$1,443,308		$1,922,235
Cost of sales	225,762	[1]	257,192	[1]	646,525	[1]	748,617	[1]
Gross margin	266,229		401,794		796,783		1,173,618
Operating expenses:
Research and development	107,578	[1]	135,837	[1]	336,854	[1]	400,029	[1]
Selling, marketing, general and administrative	79,706	[1]	104,767	[1]	249,828	[1]	309,301	[1]
Special charges	0		0		53,656		0
Total operating expenses	187,284		240,604		640,338		709,330
Operating income	78,945		161,190		156,445		464,288
Nonoperating (income) expense:
Interest expense	1,368		0		1,368		0
Interest income	(2,558)		(8,205)		(13,881)		(31,400)
Other, net	108		664		(1,260)		951
Total nonoperating (income) expense	(1,082)		(7,541)		(13,773)		(30,449)
Income from continuing operations before income taxes	80,027		168,731		170,218		494,737
Provision for income taxes	14,567		39,536		28,419		113,802
Income from continuing operations, net of tax	65,460		129,195		141,799		380,935
Discontinued operations, net of tax
Income from discontinued operations	0		5,611		364		10,693
Gain on sale of discontinued operations	0		3,802		0		250,785
Total income from discontinued operations, net of tax	0		9,413		364		261,478
Net income	65,460		138,608		142,163		642,413
Shares used to compute earnings per share - basic	291,387		290,376		291,267		293,302
Shares used to compute earnings per share - diluted	293,084		295,001		292,259		298,207
Basic earnings per share from continuing operations	0.22		0.44		0.49		1.3
Basic earnings per share	0.22		0.48		0.49		2.19
Diluted earnings per share from continuing operations	0.22		0.44		0.49		1.28
Diluted earnings per share	0.22		0.47		0.49		2.15
Dividends declared and paid per share	0.2		0.2		0.6		0.56
Includes stock-based compensation expense as follows:
Cost of sales	1,942		1,943		5,334		5,802
Research and development	5,508		6,178		16,880		17,810
Selling, marketing, general and administrative	$4,565		$5,452		$13,778		$15,580
[1]Includes stock-based compensation expense.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Thousands	Aug. 01, 2009		Nov. 01, 2008
Assets
Cash and cash equivalents	$632,715		$593,599
Short-term investments	1,091,729		716,087
Accounts receivable, net	244,025		315,290
Inventory:
Raw materials	14,251		15,350
Work in process	192,292		200,436
Finished goods	69,529		98,843
Total inventory	276,072	[1]	314,629	[1]
Deferred tax assets	76,683		102,676
Deferred compensation plan investments	1,282		942
Prepaid expenses and other current assets	37,127		40,460
Current assets of discontinued operations	0		5,894
Total current assets	2,359,633		2,089,577
Property, plant and equipment, at cost:
Land and buildings	394,200		378,187
Machinery and equipment	1,501,942		1,512,984
Office equipment	58,924		63,071
Leasehold improvements	66,452		65,247
Property, plant and equipment, gross	2,021,518		2,019,489
Less accumulated depreciation and amortization	1,529,954		1,452,050
Net property, plant and equipment	491,564		567,439
Deferred compensation plan investments	7,078		31,099
Other investments	1,677		955
Goodwill	247,347		235,175
Intangible assets, net	8,816		12,300
Deferred tax assets	71,249		65,949
Other assets	30,750		26,461
Non-current assets of discontinued operations	62,037		62,037
Total other assets	428,954		433,976
Total assets	3,280,151		3,090,992
Liabilities and Shareholders' Equity
Accounts payable	94,787		130,451
Deferred income on shipments to distributors, net	123,876		175,358
Income taxes payable	13,951		52,546
Deferred compensation plan liability	1,282		942
Accrued liabilities	118,830		191,307
Current liabilities of discontinued operations	1,200		18,454
Total current liabilities	353,926		569,058
Long-term debt	374,926		0
Deferred income taxes	20,827		14,310
Deferred compensation plan liability	7,076		31,800
Other non-current liabilities	65,031		55,561
Total non-current liabilities	467,860		101,671
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, 291,549,108 shares issued and outstanding (291,193,451 on November 1, 2008)	48,592		48,533
Capital in excess of par value	0		0
Retained earnings	2,426,580		2,419,908
Accumulated other comprehensive loss	(16,807)		(48,178)
Total shareholders' equity	2,458,365		2,420,263
Total liabilities and shareholders' equity	$3,280,151		$3,090,992
[1]Includes $2,503 and $2,632 related to stock-based compensation at August 1, 2009 and November 1, 2008, respectively.

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
	Aug. 01, 2009	Nov. 01, 2008
Preferred stock, par value	1	1
Preferred stock, shares authorized	471,934	471,934
Preferred stock, shares outstanding	0	0
Common stock, par value	0.166	0.166
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, shares issued	291,549,108	291,193,451
Common stock, shares outstanding	291,549,108	291,193,451

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands	9 Months Ended Aug. 01, 2009	9 Months Ended Aug. 02, 2008
Cash flows from operating activities:
Net income	$142,163	$642,413
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	102,495	108,061
Amortization of intangibles	5,227	7,476
Stock-based compensation expense	35,992	36,895
Gain on sale of business	0	(250,785)
Income tax payments related to gain on sale of businesses	(4,105)	(67,283)
Deferred income taxes	(221)	(7,660)
Excess tax benefit-stock options	(5)	(12,967)
Non-cash portion of special charge	13,768	0
Other non-cash activity	1,299	1,306
Changes in operating assets and liabilities	(27,143)	69,654
Total adjustments	127,307	(115,303)
Net cash provided by operating activities	269,470	527,110
Cash flows from investing activities:
Purchases of short-term available-for-sale investments	(1,914,428)	(1,551,019)
Maturities of short-term available-for-sale investments	1,535,941	1,348,947
Net (expenditures) proceeds from sales of businesses (see Note 15)	(1,340)	403,181
Additions to property, plant and equipment	(39,706)	(110,031)
Payments for acquisitions	(8,360)	(3,146)
(Increase) decrease in other assets	(5,750)	1,532
Net cash (used) provided by investing activities	(433,643)	89,464
Cash flows from financing activities:
Proceeds from issuance of long-term debt	370,350	0
Dividend payments to shareholders	(174,662)	(164,425)
Repurchase of common stock	(3,762)	(552,380)
Increase in liability from common stock repurchases	0	139
Net proceeds from employee stock plans	8,740	83,005
Excess tax benefit-stock options	5	12,967
Credit facility fees	0	(600)
Net cash provided (used) for financing activities	200,671	(621,294)
Effect of exchange rate changes on cash	2,618	(1,796)
Net increase (decrease) in cash and cash equivalents	39,116	(6,516)
Cash and cash equivalents at beginning of period	593,599	424,972
Cash and cash equivalents at end of period	$632,715	$418,456

Basis of Presentation

Basis of Presentation
	9 Months Ended Aug. 01, 2009 USD / shares
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 Basis of Presentation In the opinion of management, the information furnished in the accompanying condensed consolidated financial statements reflects all normal recurring adjustments that are necessary to fairly state the results for these interim periods and should be read in conjunction with the Companys Annual Report on Form 10-K for the fiscal year ended November1, 2008 and related notes. The results of operations for the interim period shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending October31, 2009 or any future period. The Company sold its baseband chipset business and related support operations (Baseband Chipset Business) to MediaTek Inc. and sold its CPU voltage regulation and PC thermal monitoring business to certain subsidiaries of ON Semiconductor Corporation during the first quarter of fiscal 2008. The Company has reflected the financial results of these businesses as discontinued operations in the consolidated statements of income for all periods presented. The assets and liabilities of these businesses are reflected as assets and liabilities of discontinued operations in the consolidated balance sheets as of August1, 2009 and November1, 2008. The Company has a 52-53week fiscal year that ends on the Saturday closest to the last day in October. Fiscal 2009 and fiscal 2008 are 52-week fiscal years. Certain amounts reported in previous years have been reclassified to conform to the fiscal 2009 presentation. Such reclassified amounts were immaterial.

Revenue Recognition

Revenue Recognition
	9 Months Ended Aug. 01, 2009 USD / shares
Revenue Recognition [Abstract]
Revenue Recognition	Note 2 Revenue Recognition Revenue from sales to customers is generally recognized when title passes, which for shipments to certain foreign countries is subsequent to product shipment. Title for these shipments ordinarily passes within a week of shipment. A reserve for sales returns and allowances for customers is recorded based on historical experience or specific identification of an event necessitating a reserve. In all regions of the world, the Company defers revenue and the related cost of sales on shipments to distributors until the distributors resell the products to their customers. Therefore, the Companys revenue fully reflects end customer purchases and is not impacted by distributor inventory levels. Sales to distributors are made under agreements that allow distributors to receive price adjustment credits, as discussed below, and to return qualifying products for credit, as determined by the Company, in order to reduce the amounts of slow-moving, discontinued or obsolete product from their inventory. These agreements limit such returns to a certain percentage of the value of the Companys shipments to that distributor during the prior quarter. In addition, distributors are allowed to return unsold products if the Company terminates the relationship with the distributor. Distributors are granted price adjustment credits related to many of their sales to their customers. Price adjustment credits are granted when the distributors standard cost (i.e., the Companys sales price to the distributor) does not provide the distributor with an appropriate margin on its sales to its customers. As distributors negotiate selling prices with their customers, the final sales price agreed to with the customer will be influenced by many factors, including the particular product being sold, the quantity ordered, the particular customer, the geographic location of the distributor, and the competitive landscape. As a result, the distributor may request and receive a price adjustment credit from the Company to allow the distributor to earn an appropriate margin on the transaction. Distributors are also granted price adjustment credits in the event of a price decrease subsequent to the date the product was shipped and billed to the distributor. Generally, the Company will provide a credit equal to the difference between the price paid by the distributor (less any prior credits on such products) and the new price for the product multiplied by the quantity of such product in the distributors inventory at the time of the price decrease. Given the uncertainties associated with the levels of price adjustment credits to be granted to distributors, the sales price to the distributor is not fixed or determinable until the distributor resells the products to their customers. Therefore, the Company defers revenue recognition from sales to distributors until the distributors have sold the products to their customers. Title to the inventory transfers to the distributor at the time of shipment or delivery to the distributor, and payment from the distributor is due in accordance with the Companys standard payment terms. These payment te

Stock Based Compensation

Stock Based Compensation
	9 Months Ended Aug. 01, 2009 USD / shares
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 3 Stock-Based Compensation Grant-Date Fair Value The Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award. Information pertaining to the Companys stock option awards and the related estimated weighted-average assumptions to calculate the fair value of stock options granted during the three- and nine-month periods ended August1, 2009 and August2, 2008 are as follows: Three Months Ended Nine Months Ended Stock Options August 1, 2009 August 2, 2008 August 1, 2009 August 2, 2008 Options granted (in thousands) 35 67 5,650 5,733 Weighted-average exercise price per share $ 22.96 $ 31.96 $ 19.60 $ 29.89 Weighted-average grant-date fair value per share $ 6.26 $ 9.07 $ 7.42 $ 7.91 Assumptions: Weighted-average expected volatility 39.2 % 35.1 % 58.9 % 32.2 % Weighted-average expected term (in years) 5.3 5.1 5.3 5.1 Risk-free interest rate 2.4 % 3.3 % 1.7 % 3.3 % Expected dividend yield 3.5 % 2.5 % 4.1 % 2.4 % Expected volatility The Company is responsible for estimating volatility and has considered a number of factors, including third-party estimates, when estimating volatility. 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 markets current expectations of future volatility. In evaluating the appropriateness of exclusively relying on implied volatility, the Company concluded that: (1)options in the Companys 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 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 Companys 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 Companys Board of Directors declares a cash dividend for an amount that is different from the current qua

Comprehensive Income

Comprehensive Income
	9 Months Ended Aug. 01, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	Note 4 Comprehensive Income Components of comprehensive income include net income and certain transactions that have generally been reported in the consolidated statement of shareholders equity and consist of the following: Three Months Ended August 1, 2009 August 2, 2008 Income from continuing operations, net of tax $ 65,460 $ 129,195 Foreign currency translation adjustments 5,629 (2,796 ) Change in unrealized holding losses (net of taxes of $2 and $76, respectively) on securities classified as short-term investments (12 ) (337 ) Change in unrealized holding gains (losses) (net of taxes of $211 and $640, respectively) on securities classified as other investments 391 (1,189 ) Change in unrealized gains (losses) (net of taxes of $1,336 and $298, respectively) on derivative instruments designated as cash flow hedges 8,013 (1,960 ) Pension plans Transition (obligation)asset (19 ) 7 Net actuarial (loss)gain (643 ) 959 Other comprehensive income (loss) 13,359 (5,316 ) Comprehensive income from continuing operations 78,819 123,879 Income from discontinued operations, net of tax 9,413 Comprehensive income $ 78,819 $ 133,292 Nine Months Ended August 1, 2009 August 2, 2008 Income from continuing operations, net of tax $ 141,799 $ 380,935 Foreign currency translation adjustments 9,803 (9,971 ) Change in unrealized holding (losses)gains (net of taxes of $352 and $124, respectively) on securities classified as short-term investments (2,493 ) 757 Change in unrealized holding gains (net of taxes of $265 and $336, respectively) on securities classified as other investments 491 624 Change in unrealized gains (losses) (net of taxes of $3,837 and $695, respectively) on derivative instruments designated as cash flow hedges 25,140 (4,574 ) Pension plans Prior service cost 1 Transition (obligation)asset (27 ) 8 Net actuarial (loss)gain (1,544 ) 1,240 Other comprehensive income (loss) 31,371 (11,916 ) Comprehensive income from continuing operations 173,170 369,019 Income from discontinued operations, net of tax 364 261,478 Comprehensive income $ 173,534 $ 630,497 The components of accumulated other comprehensive income at August1, 2009 and November1, 2008 consisted of the following: August 1, 2009 November 1, 2008 Foreign currency translation adjustment $ (12,513 ) $ (22,316 ) Unrealized gains on available-for-sale securities 981 2,984 Unrealized losses on available-for-sale securities(1) (537 ) (538 ) Unrealized gains (losses)on derivative

Earnings Per Share

Earnings Per Share
	9 Months Ended Aug. 01, 2009 USD / shares
Earnings Per Share Disclosure [Abstract]
Earnings Per Share	Note 5 Earnings Per Share 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 is computed using the average market price for the respective period. In addition, under Statement of Financial Accounting Standards (SFAS)No.123 (revised 2004), Share-Based Payment (SFAS 123R), the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money. This results in the assumed buyback of additional shares, thereby reducing the dilutive impact of stock options. Potential future issuances of common stock related to certain of the Companys outstanding stock options were excluded because they were anti-dilutive. Those potential future issuances of common stock, determined based on the weighted-average exercise prices during the respective periods, could be dilutive in the future. Three Months Ended August 1, 2009 August 2, 2008 Income from continuing operations, net of tax $ 65,460 $ 129,195 Total income from discontinued operations, net of tax 9,413 Net income $ 65,460 $ 138,608 Basic shares: Weighted-average shares outstanding 291,387 290,376 Earnings per share-basic: Income from continuing operations, net of tax $ 0.22 $ 0.44 Total income from discontinued operations, net of tax 0.03 Net income (1) $ 0.22 $ 0.48 Diluted shares: Weighted-average shares outstanding 291,387 290,376 Assumed exercise of common stock equivalents 1,697 4,625 Weighted-average common and common equivalent shares 293,084 295,001 Earnings per share-diluted: Income from continuing operations, net of tax $ 0.22 $ 0.44 Total income from discontinued operations, net of tax 0.03 Net income (1) $ 0.22 $ 0.47 Anti-dilutive common stock equivalents related to outstanding stock options 60,279 51,271 (1) The sum of the individual per share amounts may not equal the total due to rounding. Nine Months Ended August 1, 2009 August 2, 2008 Income from continuing operations, net of tax $ 141,799 $ 380,935 Total income from discontinued operations, net of tax 364 261,478 Net income $ 142,163 $ 642,413 Basic shares: Weighted-average shares outstanding 291,267 293,302

Special Charges

Special Charges
	9 Months Ended Aug. 01, 2009 USD / shares
Special Charges [Abstract]
Special Charges	Note 6 Special Charges A summary of the Companys special charges is as follows: Reorganization Consolidation Closure of Closure of Wafer of Product of a Wafer Reduction of Reduction Wafer Fabrication Development Fabrication Overhead of Fabrication Facility and Facility in Infrastructure Operating Facility Total Special Income Statement in Sunnyvale Support Programs Limerick Costs Costs in Cambridge Charges Fiscal 2005 Charges: Workforce reductions $ 20,315 $ 11,165 $ $ $ $ $ 31,480 Total Fiscal 2005 Charges $ 20,315 $ 11,165 $ $ $ $ $ 31,480 Fiscal 2006 Charges: Facility closure costs 554 554 Abandonment of equipment 459 459 Other items 462 462 Change in estimate (2,029 ) (2,029 ) Workforce reductions 2,344 2,344 Total Fiscal 2006 Charges $ (2,029 ) $ 3,819 $ $ $ $ $ 1,790 Fiscal 2007 Charges: Facility closure costs 10,288 10,288 Workforce reductions 4,165 13,748 10,711 28,624 Other items 859 1,637 2,496 Change in estimate (913 ) (913 ) Total Fiscal 2007 Charges $ 10,288 $ 4,111 $ 13,748 $ 12,348 $ $ $ 40,495 Fiscal 2008 Charges: Workforce reductions 1,627 1,627 Change in estimate 1,461 1,461 Total Fiscal 2008 Charges $ $ $ 1,461 $ $ 1,627 $ $ 3,088 Fiscal 2009 Charges: Workforce reductions 26,583 9,203 35,786 Facility closure costs 1,191 2,411 3,602 Non-cash impairment charge 839 12,929 13,768 Other items 500 500 Total Fiscal 2009 Charges $ $ $ 1,191 $ $ 30,333 $ 22,132 $ 53,656 Closure of Reorganization Consolidation

Segment Information

Segment Information
	9 Months Ended Aug. 01, 2009 USD / shares
Segment Information [Abstract]
Segment Information	Note 7 Segment Information The Company operates and tracks its results in one reportable segment. The Company designs, develops, manufactures and markets a broad range of integrated circuits. The Chief Executive Officer has been identified as the Chief Operating Decision Maker as defined by SFAS 131, Disclosures about Segments of an Enterprise and Related Information. 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 Companys product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies revenue by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. Three Months Ended Three Months Ended August 1, 2009 August 2, 2008 % of % of Revenue Revenue Y/Y% Revenue Revenue Industrial $ 252,135 51 % (29 )% $ 356,280 54 % Communications 125,500 26 % (15 )% 147,894 22 % Consumer 102,323 21 % (21 )% 129,784 20 % Computer 12,033 2 % (52 )% 25,028 4 % Total revenue $ 491,991 100 % (25 )% $ 658,986 100 % Nine Months Ended Nine Months Ended August 1, 2009 August 2, 2008 % of % of Revenue Revenue Y/Y% Revenue Revenue Industrial $ 753,271 52 % (28 )% $ 1,043,899 54 % Communications 391,399 27 % (8 )% 427,143 22 % Consumer 258,350 18 % (32 )% 380,291 20 % Computer 40,288 3 % (43 )% 70,902 4 % Total revenue $ 1,443,308 100 % (25 )% $ 1,922,235 100 % Revenue Trends by Product Type The following table summarizes revenue by product categories. The categorization of the Companys products into broad categories is based on the characteristics of the individual products, the specification of the products and in some cases the specific uses that certain products have within applications. The categorization of products into categories is therefore subject to judgment in some cases and can vary over time. In instances where products move between product categories the Company reclassifies the amounts in the product categories for all prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each product category.

Fair Value

Fair Value
	9 Months Ended Aug. 01, 2009 USD / shares
Fair Value [Abstract]
Fair Value	Note 8 Fair Value The Company adopted Statement of Financial Accounting Standard No.157, Fair Value Measurements (SFAS 157), at the beginning of fiscal year 2009. SFAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 is effective for non-financial assets and liabilities in financial statements issued for fiscal years beginning after November15, 2008, which is the Companys fiscal year 2010. The adoption of SFAS 157 did not impact the Companys consolidated financial position or results of operations. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS 157 establishes a three level hierarchy to prioritize the inputs to valuation techniques used to measure fair value. 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). The three levels of the fair value hierarchy under SFAS 157 are described below: 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. As of August1, 2009, the Company held no Level 3 assets or liabilities. The table below sets forth by level the Companys financial assets and liabilities that were accounted for at fair value as of August1, 2009. The table does not include cash on hand and also does not include assets and liabilities that are measured at historical cost or any basis other than fair value. Fair Value measurement at Reporting Date using: Portion of Quoted Prices Carrying in Active Significant Value Markets for Other Measured at Identical Observable Fair Value Assets Inputs August 1, 2009 (Level 1) (Level 2) Assets Cash Equivalents: Institutional money market funds $ 593,878 $ 593,878 $ Euro time deposits 622 622 Short-term investments: Corporate obligations 1,091,729 1,091,729 Other Assets: Interest rate swap agreements 1,488 1,488 Deferred compensation investments 8,360 8,360 Other investments 1,677 1,677

Derivatives

Derivatives
	9 Months Ended Aug. 01, 2009 USD / shares
Derivatives [Abstract]
Derivatives	Note 9 Derivatives 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 Companys operations, assets and liabilities that are denominated in currencies other than the U.S. dollar, primarily the Euro; other exposures include the Philippine Peso and British Pounds Sterling. These foreign currency exchange contracts are entered into to support purchases and financing 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. In accordance with Statement of Financial Accounting Standards No.133 (SFAS 133), Accounting for Derivative Instruments and Hedging Activities, hedges related to anticipated transactions are designated and documented at the inception of the respective hedges as cash flow hedges and are evaluated for effectiveness monthly. Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified. As the terms of the contract and the underlying transaction are matched at inception, forward contract effectiveness is calculated by comparing the change in fair value of the contract to the change in the forward value of the anticipated transaction, with the effective portion of the gain or loss on the derivative instrument reported as a component of accumulated other comprehensive (loss)income (OCI)in shareholders equity and reclassified into earnings in the same period during which the hedged transaction affects earnings. Any residual change in fair value of the instruments, or ineffectiveness, is recognized immediately in other income/expense. Additionally, the Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the remeasurement 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 August1, 2009, the total notional amount of these undesignated hedges was $45.7million. The fair value of these hedging instruments in our condensed consolidated balance sheet as of August1, 2009 was immaterial. Interest Rate Exposure Management On June30, 2009, the Company entered into interest rate swap transactions related to its outstanding notes where the Company swapped the notional amount of its $375million of fixed rate debt at 5.0% into floating interest rate debt through July1, 2014. Under the terms of the swaps, the Company will (i)receive on the $375million notional amount a 5.0% annual interest payment that is paid in two installments on the 1st of every January and July, commencing January1, 2010 through and ending on the maturity date; and (ii)pay on the $375million notional amount an annual three-month LIBO

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	9 Months Ended Aug. 01, 2009 USD / shares
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	Note 10 Goodwill and Intangible Assets Goodwill The Company annually evaluates goodwill for impairment as well as whenever events or changes in circumstances suggest that the carrying value of goodwill may not be recoverable. Because the Company has one reporting segment under Statement of Financial Accounting Standards No.142, Goodwill and Other Intangible Assets, the Company utilizes the entity-wide approach for assessing goodwill for impairment and compares its market value to its net book value to determine if an impairment exists. No impairment of goodwill resulted from the Companys most recent evaluation of goodwill for impairment, which occurred in the fourth quarter of fiscal 2008. No impairment of goodwill resulted in any of the fiscal years presented. The Companys next scheduled annual impairment assessment will be made in the fourth quarter of fiscal 2009. The following table presents the changes in goodwill during the first nine months of fiscal 2009: Nine Months Ended August 1, 2009 Balance at beginning of period $ 235,175 Acquisition of AudioAsics (1) 3,071 Acquisition of Integrant Technologies (2) 2,098 Foreign currency translation adjustment 7,003 Balance at end of period $ 247,347 (1) The final milestone related to this 2006 acquisition was achieved in the second quarter of fiscal 2009. (2) The company purchased the remaining outstanding minority shares related to this 2006 acquisition during the third quarter of fiscal 2009. Intangible Assets The Company reviews identified intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of assets may not be recoverable. Recoverability of these assets is measured by comparison of their carrying value to 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. Intangible assets, which will continue to be amortized, consisted of the following: August 1, 2009 November 1, 2008 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Technology-based $ 39,099 $ 31,520 $ 36,516 $ 25,731 Tradename 1,465 1,465 1,438 1,430 Customer Relationships 4,968 3,731 4,529 3,022 Other 6,565 6,565 6,534 6,534 Total $ 52,097 $ 43,281 $ 49,017 $ 36,717 Intangible assets are amortized on a straight-line basis over their estimated useful lives or on an accelerated method of amortization that is expected to reflect the estimated pattern of economic use. The remaining amortization expense will be recognized over a

Pension Plans

Pension Plans
	9 Months Ended Aug. 01, 2009 USD / shares
Pension Plans [Abstract]
Pension Plans	Note 11 Pension Plans The Company 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 Companys 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. In the first quarter of fiscal 2009, the Company adopted the measurement date provision of SFAS 158, Employers Accounting for Defined Benefit Pension and other Postretirement Plans an amendment of FASB Statement No.87, 88, 106 and 132(R) (SFAS 158). This provision requires the measurement date of the plans funded status to be the same as the Companys fiscal year end. In accordance with the adoption provisions of SFAS 158, the Company changed its measurement date from September30, 2008 to November1, 2008, the Companys fiscal year-end, and recorded a $0.2million adjustment to retained earnings in the first quarter of fiscal 2009. Net periodic pension cost of non-U.S. plans is presented in the following table: Three Months Ended August 1, 2009 August 2, 2008 Service cost $ 1,617 $ 2,467 Interest cost 2,430 2,649 Expected return on plan assets (2,731 ) (3,187 ) Amortization of prior service cost 1 2 Amortization of initial net asset (10 ) (11 ) Amortization of net (gain)loss (132 ) 48 Net periodic pension cost $ 1,175 $ 1,968 Nine Months Ended August 1, 2009 August 2, 2008 Service cost $ 4,699 $ 7,325 Interest cost 7,008 7,828 Expected return on plan assets (7,870 ) (9,416 ) Amortization of prior service cost 3 6 Amortization of initial net asset (29 ) (33 ) Amortization of net (gain)loss (381 ) 147 Net periodic pension cost $ 3,430 $ 5,857 Pension contributions of $1.9million and $5.7million were made by the Company during the three and nine months ended August1, 2009. The Company presently anticipates contributing an additional $1.6million to fund its defined benefit pension plans in fiscal year 2009 for a total of $7.3 million.

Revolving Credit Facility

Revolving Credit Facility
	9 Months Ended Aug. 01, 2009 USD / shares
Revolving Credit Facility [Abstract]
Revolving Credit Facility	Note 12 Revolving Credit Facility As of August1, 2009, the Company had $1,724.4million of cash and cash equivalents and short term investments, of which $426.0million was held in the United States. The balance of the Companys cash and cash equivalents and short term investments was held outside the United States in various foreign subsidiaries. As the Company intends to reinvest certain of its foreign earnings indefinitely, this cash is not available to meet certain of the Companys cash requirements in the United States, including for cash dividends and common stock repurchases. The Company entered into a five-year, $165million unsecured revolving credit facility with certain institutional lenders in May2008. To date, the Company has not borrowed under this credit facility but the Company may borrow in the future and use the proceeds for support of commercial paper issuance, stock repurchases, dividend payments, acquisitions, capital expenditures, working capital and other lawful corporate purposes. Any advances under this credit agreement will accrue interest at rates that are equal to LIBOR plus a margin that is based on the Companys leverage ratio. The terms of this facility also include financial covenants that require the Company to maintain a minimum interest coverage ratio and not exceed a maximum leverage ratio. The Company is currently compliant with these covenants. The terms of the facility also impose restrictions on the Companys ability to undertake certain transactions, to create certain liens on assets and to incur certain subsidiary indebtedness.

Long Term Debt

Long Term Debt
	9 Months Ended Aug. 01, 2009 USD / shares
Long-Term Debt [Abstract]
Long-Term Debt	Note 13 Long-Term Debt On June30, 2009, the Company issued $375million aggregate principal amount of 5.0% notes due July1, 2014 (the Notes) with semi-annual fixed interest payments on January 1 and July 1 of each year, commencing January1, 2010. The sale of the Notes was made pursuant to the terms of an underwriting agreement dated June25, 2009 between the Company and Credit Suisse Securities (USA) LLC, as representative of the several underwriters named therein. The net proceeds of the offering were $370.4million, after issuing at a discount and deducting expenses, underwriting discounts and commissions, which will be amortized over the term of the Notes. The indenture governing the Notes contains covenants that may limit the Companys ability to: incur, create, assume or guarantee any debt for borrowed money secured by a lien upon its principal property; enter into sale and lease-back transactions; and consolidate with or merge into, or transfer or lease all or substantially all of its assets to, any other party. On June30, 2009, the Company entered into interest rate swap transactions where the Company swapped the notional amount of its $375million of fixed rate debt at 5.0% into floating interest rate debt through July1, 2014. Under the terms of the swaps, the Company will (i)receive on the $375million notional amount a 5.0% annual interest payment that is paid in two installments on the 1st of every January and July, commencing January1, 2010 through and ending on the maturity date; and (ii)pay on the $375million notional amount an annual three-month LIBOR plus 2.05% (2.64% as of August1, 2009) interest payment, payable in four installments on the 1st of every January, April, July and October, commencing on October1, 2009 and ending on the maturity date. The LIBOR based rate is set quarterly three months prior to the date of the interest payment. The Company designated these swaps as fair value hedges and is accounting for them in accordance with SFAS 133. The changes in the fair value of the interest rate swaps were reflected in the carrying value of the interest rate swaps in other assets on the balance sheet. The carrying value of the debt on the balance sheet was adjusted by an equal and offsetting amount.

Common Stock Repurchase

Common Stock Repurchase
	9 Months Ended Aug. 01, 2009 USD / shares
Common Stock Repurchase [Abstract]
Common Stock Repurchase	Note 14 Common Stock Repurchase The Companys common stock repurchase program has been in place since August2004. In the aggregate, the Board of Directors has authorized the Company to repurchase $4billion of the Companys common stock under the program. Under the program, the Company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of the Companys Board of Directors, the repurchase program will expire when the Company has repurchased all shares authorized under the program. As of August1, 2009, the Company had repurchased a total of approximately 114.7million shares of its common stock for approximately $3,908.4million under this program. An additional $91.6million of shares remains available for repurchase 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 or restricted stock units, or the exercise of stock options. Any future common stock repurchases will be dependent upon several factors including the amount of cash available to the Company in the United States, our financial performance, outlook and liquidity.

Discontinued Operations

Discontinued Operations
	9 Months Ended Aug. 01, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations	Note 15 Discontinued Operations In November2007, the Company entered into a purchase and sale agreement with certain subsidiaries of ON Semiconductor Corporation to sell the Companys CPU voltage regulation and PC thermal monitoring business which consists of core voltage regulator products for the central processing unit in computing and gaming applications and temperature sensors and fan-speed controllers for managing the temperature of the central processing unit. During the first quarter of fiscal 2008, the Company completed the sale of this business for net cash proceeds of $138million, which was net of other cash payments of approximately $1.4million. The Company made final additional cash payments of approximately $2.2million in the second quarter of fiscal 2008. In connection with the purchase and sale agreement, $7.5million was placed into escrow and was excluded from the gain calculations. The Company recorded a pre-tax gain in the first quarter of fiscal 2008 of $78 million, or $43million net of tax, which was recorded as a gain on sale of discontinued operations. During the third quarter of fiscal 2008, additional proceeds were released from escrow and an additional pre-tax gain of $6.6million, or $3.8million net of tax, was recorded as a gain on sale of discontinued operations. Additionally, at the time of the sale, the Company entered into a one-year manufacturing supply agreement with a subsidiary of ON Semiconductor Corporation for an additional $37million. The Company has allocated the proceeds from this arrangement based on the fair value of the two elements of this transaction: 1) the sale of a business and 2) the obligation to manufacture product for a one-year period. As a result, $85million was recorded as a liability related to the manufacturing supply agreement, all of which has been utilized. The liability was included in current liabilities of discontinued operations on the Companys consolidated balance sheet. The Company recorded the revenue associated with this manufacturing supply agreement in discontinued operations. As a result, the Company classified inventory for this arrangement as a current asset of discontinued operations. The Company may receive additional proceeds of up to $1 million, currently held in escrow, upon the resolution of certain contingent items, which would be recorded as additional gain from the sale of discontinued operations. In September2007, the Company entered into a definitive agreement to sell its Baseband Chipset Business to MediaTek Inc. The decision to sell the Baseband Chipset Business was due to the Companys decision to focus its resources in areas where its signal processing expertise can provide unique capabilities and earn superior returns. On January11, 2008, the Company completed the sale of its Baseband Chipset Business for net cash proceeds of $269million. The cash proceeds received were net of a refundable withholding tax of $62million and other cash payments of approximately $9million. The Company made additional cash payments of $7.8million during fiscal 2008, primarily related to transaction fees and retention payments to employees that transferred to Med

Income Taxes

Income Taxes
	9 Months Ended Aug. 01, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	Note 16 Income Taxes The Company has provided for potential liabilities due in the various jurisdictions in which the Company operates. Judgment is required in determining the worldwide income tax expense provision. In the ordinary course of global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of cost reimbursement arrangements among related entities. Although the Company believes its estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in the historical income tax provisions and accruals. Such differences could have a material impact on the Companys income tax provision and operating results in the period in which such determination is made. Fiscal Year 2004 and 2005 IRS Examination During the fourth quarter of fiscal 2007, the IRS completed its field examination of the Companys fiscal years 2004 and 2005. On January2, 2008, the IRS issued its report for fiscal 2004 and 2005, which included proposed adjustments related to these two fiscal years. The Company has recorded taxes and penalties related to certain of these proposed adjustments. There are four items with an additional potential total tax liability of $46million. The Company has concluded, based on discussions with its tax advisors, that these four items are not likely to result in any additional tax liability. Therefore, the Company has not recorded any additional tax liability for these items and is appealing these proposed adjustments through the normal processes for the resolution of differences between the IRS and taxpayers. The Companys initial meeting with the appellate division of the IRS was held in May2009. Two of the unresolved matters are one-time issues and pertain to Section965 of the Internal Revenue Code related to the beneficial tax treatment of dividends from foreign owned companies under The American Jobs Creation Act. The other matters pertain to the computation of research and development (RD) tax credits and the profits earned from manufacturing activities carried on outside the United States. These latter two matters could impact taxes payable for fiscal 2004 and 2005 as well as for subsequent years. Fiscal Year 2006 and 2007 IRS Examination During the third quarter of fiscal 2009, the IRS completed its field examination of the Companys fiscal years 2006 and 2007. The IRS and the Company have agreed on the treatment of a number of issues that have been included in an Issue Resolutions Agreement related to the 2006 and 2007 tax returns. However, no agreement was reached on the tax treatment of a number of issues, including the same RD credit and foreign manufacturing issues mentioned above related to fiscal 2004 and 2005, the pricing of intercompany sales (transfer pricing), and the deductibility of certain stock option compensation expenses. During the third quarter of fiscal 2009, the IRS issued its report for fiscal 2006 and fiscal 2007, which included proposed adjustments related to these two fiscal years. The Company has recorded taxes a

New Accounting Standards

New Accounting Standards
	9 Months Ended Aug. 01, 2009 USD / shares
New Accounting Standards [Abstract]
New Accounting Standards	Note 17 New Accounting Standards Accounting Standards Codification In June2009, the FASB issued SFAS No.168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (a replacement of FASB Statement No.162) (SFAS 168). SFAS 168 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles in the United States. SFAS 168 establishes the FASB Accounting Standards Codification (Codification) as the source of authoritative accounting principles recognized by the FASB. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September15, 2009, which is the Companys fourth fiscal quarter of 2009. Upon adoption the Codification will be used to identify authoritative accounting standards. Variable Interest Entities In June2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R) (SFAS 167). SFAS 167 requires an enterprise to perform an analysis to determine whether the enterprises variable interest or interests give it a controlling financial interest in a variable interest entity. Additionally, an enterprise is required to assess whether it has an implicit financial responsibility to ensure that a variable interest entity operates as designed when determining whether it has the power to direct the activities of the variable interest entity that most significantly impact the entitys economic performance. SFAS 167 is effective for fiscal years that begin after November15, 2009, which is the Companys fiscal year 2011. The Company is currently evaluating the impact, if any, that SFAS 167 may have on its financial condition and results of operations. Transfers of Financial Assets In June2009, the FASB issued SFAS No.166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No.140 (SFAS 166). SFAS 166 changes the way entities account for securitizations and other transfers of financial instruments. SFAS 166 is effective for fiscal years that begin after November15, 2009, which is the Companys fiscal year 2011. The Company is currently evaluating the impact, if any, that SFAS 166 may have on its financial condition and results of operations. Business Combinations In December2007, the FASB issued SFAS No.141 (revised 2007), Business Combinations (SFAS 141R). SFAS 141R requires an acquiring entity in a business combination to recognize the assets acquired, liabilities assumed and any noncontrolling interest in the acquiree at their fair value on the acquisition date. It further requires that acquisition-related costs and restructuring costs be recognized separately from the acquisition. SFAS 141R is effective for fiscal years beginning after December15, 2008, which is the Companys fiscal year 2010. The Company is currently evaluating the impact, if any, that SFAS 141R may have on its financial condition and results of operations. The adoption of SFAS 141R will change the Companys accounting treatment for bu

Subsequent Event

Subsequent Event
	9 Months Ended Aug. 01, 2009 USD / shares
Subsequent Event [Abstract]
Subsequent Event	Note 18 Subsequent Event In accordance with SFAS 165, we have evaluated subsequent events through the issuance of these financial statements which occurred on August18, 2009. On August17, 2009, the Companys Board of Directors declared a cash dividend of $0.20 per outstanding share of common stock. The dividend will be paid on September16, 2009 to all shareholders of record at the close of business on August 27, 2009.