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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 30, 2022
    OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File No. 1-7819
Analog Devices, Inc.
(Exact name of registrant as specified in its charter) 
Massachusetts 04-2348234
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
One Analog Way,Wilmington,MA 01887
(Address of principal executive offices) (Zip Code)
(781) 935-5565
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock $0.16 2/3 par value per shareADINasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No  
As of July 30, 2022 there were 514,341,531 shares of common stock of the registrant, $0.16 2/3 par value per share, outstanding.




PART I - FINANCIAL INFORMATION
 
ITEM 1.Financial Statements


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share amounts)

 Three Months EndedNine Months Ended
 July 30, 2022July 31, 2021July 30, 2022July 31, 2021
Revenue$3,109,880 $1,758,853 $8,766,237 $4,978,718 
Cost of sales1,066,738 537,669 3,376,578 1,575,526 
Gross margin2,043,142 1,221,184 5,389,659 3,403,192 
Operating expenses:
Research and development431,829 306,617 1,279,510 897,005 
Selling, marketing, general and administrative326,942 206,076 929,615 597,963 
Amortization of intangibles252,864 107,783 759,707 323,217 
Special charges, net138,201 (8,938)244,603 (8,189)
Total operating expenses1,149,836 611,538 3,213,435 1,809,996 
Operating income:893,306 609,646 2,176,224 1,593,196 
Nonoperating expense (income):
Interest expense51,189 44,659 152,701 130,204 
Interest income(1,797)(300)(2,578)(799)
Other, net(4,023)(6,991)(24,636)(21,090)
Total nonoperating expense (income)45,369 37,368 125,487 108,315 
Income before income taxes847,937 572,278 2,050,737 1,484,881 
Provision for income taxes98,952 68,967 238,402 170,146 
Net income$748,985 $503,311 $1,812,335 $1,314,735 
Shares used to compute earnings per common share – basic517,011 368,476 521,557 368,834 
Shares used to compute earnings per common share – diluted520,550 371,849 525,652 372,457 
Basic earnings per common share$1.45 $1.37 $3.47 $3.56 
Diluted earnings per common share$1.44 $1.35 $3.45 $3.53 






See accompanying notes.
1




ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)
Three Months EndedNine Months Ended
July 30, 2022July 31, 2021July 30, 2022July 31, 2021
Net income$748,985 $503,311 $1,812,335 $1,314,735 
Foreign currency translation adjustments(9,028)(2,952)(31,500)5,073 
Change in fair value of derivative instruments designated as cash flow hedges (net of taxes of $854, $10,657, $1,103 and $6,452, respectively)
2,239 (40,040)(471)19,853 
Changes in pension plans, net actuarial loss and foreign currency translation adjustments (net of taxes of $88, $85, $275 and $257, respectively)
1,770 964 5,902 (408)
Other comprehensive (loss) income(5,019)(42,028)(26,069)24,518 
Comprehensive income$743,966 $461,283 $1,786,266 $1,339,253 



















See accompanying notes.


2


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)

July 30, 2022October 30, 2021
ASSETS  
Current Assets
Cash and cash equivalents$1,524,960 $1,977,964 
Accounts receivable1,742,646 1,459,056 
Inventories1,203,394 1,200,610 
Prepaid expenses and other current assets218,708 740,687 
Total current assets4,689,708 5,378,317 
Non-current Assets
Net property, plant and equipment2,180,048 1,979,051 
Goodwill26,920,335 26,918,470 
Intangible assets, net13,764,444 15,267,170 
Deferred tax assets2,297,122 2,267,269 
Other assets494,513 511,794 
Total non-current assets45,656,462 46,943,754 
TOTAL ASSETS$50,346,170 $52,322,071 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable$545,068 $443,434 
Income taxes payable445,726 332,685 
Debt, current 516,663 
Accrued liabilities1,450,407 1,477,530 
Total current liabilities2,441,201 2,770,312 
Non-current Liabilities
Long-term debt6,252,839 6,253,212 
Deferred income taxes3,764,370 3,938,830 
Income taxes payable712,982 811,337 
Other non-current liabilities536,187 555,838 
Total non-current liabilities11,266,378 11,559,217 
Shareholders’ Equity
Preferred stock, $1.00 par value, 471,934 shares authorized, none outstanding
  
Common stock, $0.16 2/3 par value, 1,200,000,000 shares authorized, 514,341,531 shares outstanding (525,330,672 on October 30, 2021)
85,725 87,554 
Capital in excess of par value28,590,056 30,574,237 
Retained earnings8,175,444 7,517,316 
Accumulated other comprehensive loss(212,634)(186,565)
Total shareholders’ equity36,638,591 37,992,542 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$50,346,170 $52,322,071 






See accompanying notes.
3


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)

Three Months Ended July 30, 2022
Capital inAccumulated
Other
 Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, APRIL 30, 2022
519,806 $86,636 $29,400,284 $7,820,477 $(207,615)
Net income748,985 
Dividends declared and paid - $0.76 per share
(394,018)
Issuance of stock under stock plans and other413 69 9,891 
Stock-based compensation expense84,874 
Other comprehensive loss(5,019)
Common stock repurchased(5,878)(980)(904,993)
BALANCE, JULY 30, 2022
514,341 $85,725 $28,590,056 $8,175,444 $(212,634)
Nine Months Ended July 30, 2022
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 30, 2021
525,331 $87,554 $30,574,237 $7,517,316 $(186,565)
Net income1,812,335 
Dividends declared and paid - $2.21 per share
(1,154,207)
Issuance of stock under stock plans and other2,396 400 29,613 
Stock-based compensation expense242,809 
Other comprehensive loss(26,069)
Common stock repurchased(13,386)(2,229)(2,256,603)
BALANCE, JULY 30, 2022
514,341 $85,725 $28,590,056 $8,175,444 $(212,634)















See accompanying notes.




4


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)
Three Months Ended July 31, 2021
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, MAY 1, 2021368,827 $61,472 $4,724,493 $7,564,054 $(182,915)
Net income503,311 
Dividends declared and paid - $0.69 per share
(254,506)
Issuance of stock under stock plans and other396 66 11,610 
Stock-based compensation expense41,687 
Other comprehensive loss(42,028)
Common stock repurchased(1,009)(168)(163,113)
BALANCE, JULY 31, 2021
368,214 $61,370 $4,614,677 $7,812,859 $(224,943)
Nine Months Ended July 31, 2021
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 31, 2020369,485 $61,582 $4,949,586 $7,236,238 $(249,461)
Net income1,314,735 
Dividends declared and paid - $2.00 per share
(738,114)
Issuance of stock under stock plans and other2,040 340 55,008 
Stock-based compensation expense118,683 
Other comprehensive income24,518 
Common stock repurchased(3,311)(552)(508,600)
BALANCE, JULY 31, 2021
368,214 $61,370 $4,614,677 $7,812,859 $(224,943)















See accompanying notes.
5



ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
  
Nine Months Ended
 July 30, 2022July 31, 2021
Cash flows from operating activities:
Net income$1,812,335 $1,314,735 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation212,635 158,937 
Amortization of intangibles1,512,250 436,734 
Stock-based compensation expense242,809 118,683 
Non-cash impairment charge91,953  
Gain on sale of property, plant, and equipment(4,352)(13,557)
Cost of goods sold for inventory acquired271,396  
Deferred income taxes(205,128)(72,578)
Non-cash operating lease costs(17,958)16,855 
Other(7,061)(14,965)
Changes in operating assets and liabilities(582,813)(150,499)
Total adjustments1,513,731 479,610 
Net cash provided by operating activities3,326,066 1,794,345 
Cash flows from investing activities:
Additions to property, plant and equipment(394,796)(212,899)
Other43,761 29,619 
Net cash used for investing activities(351,035)(183,280)
Cash flows from financing activities:
Proceeds from revolver400,000  
Payments on revolver(400,000) 
Early termination of debt(519,116) 
Dividend payments to shareholders(1,154,207)(738,114)
Repurchase of common stock(1,758,832)(509,152)
Proceeds from employee stock plans30,013 55,348 
Other(1,718)1,952 
Net cash used for financing activities(3,403,860)(1,189,966)
Effect of exchange rate changes on cash(24,175)3,742 
Net (decrease) increase in cash and cash equivalents(453,004)424,841 
Cash and cash equivalents at beginning of period1,977,964 1,055,860 
Cash and cash equivalents at end of period$1,524,960 $1,480,701 

See accompanying notes.
6


ANALOG DEVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED JULY 30, 2022 (UNAUDITED)
(all tabular amounts in thousands except per share amounts and percentages)

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 Analog Devices, Inc.’s (the Company) Annual Report on Form 10-K for the fiscal year ended October 30, 2021 (fiscal 2021) and related notes. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending October 29, 2022 (fiscal 2022) or any future period.
The Company has a 52-53 week fiscal year that ends on the Saturday closest to the last day in October. Certain amounts reported in previous periods have been reclassified to conform to the fiscal 2022 presentation.
On August 26, 2021 (Acquisition Date), the Company completed the acquisition of Maxim Integrated Products, Inc. (Maxim), an independent manufacturer of innovative analog and mixed-signal products and technologies. The acquisition of Maxim is referred to as the Acquisition. The consolidated financial statements included in this Quarterly Report on Form 10-Q include the financial results of Maxim prospectively from the Acquisition Date. See Note 14, Acquisitions, in these Notes to Condensed Consolidated Financial Statements for additional information.
Note 2 – Shareholders' Equity
In fiscal 2021, the Company entered into accelerated share repurchase agreements (ASR) with third party financial institutions, paid $2.5 billion and received an initial delivery of 12.3 million shares of common stock, which represented approximately 80% of the notional amount of the ASR. As of October 30, 2021, the Company recorded the remaining 20%, or $500.0 million, within Prepaid expenses and other current assets on the Consolidated Balance Sheet, which was utilized during the first quarter of fiscal 2022. During the first quarter of fiscal 2022, the ASR was completed and an additional 2.1 million shares of common stock were received as final settlement of the ASR. In total, the Company repurchased 14.4 million shares under the ASR at an average price per share of $173.77.
As of July 30, 2022, the Company had repurchased a total of approximately 184.3 million shares of its common stock for approximately $10.9 billion under the Company's share repurchase program. As of July 30, 2022, an additional $5.7 billion remains available for repurchase of shares under the current authorized program. The Company also repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units/awards or the exercise of stock options. Future repurchases of common stock will be dependent upon the Company's financial position, results of operations, outlook, liquidity and other factors deemed relevant by the Company.
Note 3 – Accumulated Other Comprehensive (Loss) Income
The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first nine months of fiscal 2022.
Foreign currency translation adjustmentUnrealized holding gains (losses) on derivativesPension plansTotal
October 30, 2021$(25,795)$(123,754)$(37,016)$(186,565)
Other comprehensive (loss) income before reclassifications(31,500)(27,471)4,513 (54,458)
Amounts reclassified out of other comprehensive income 28,103 1,664 29,767 
Tax effects (1,103)(275)(1,378)
Other comprehensive (loss) income(31,500)(471)5,902 (26,069)
July 30, 2022$(57,295)$(124,225)$(31,114)$(212,634)
The amounts reclassified out of AOCI into the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Shareholders' Equity with presentation location during each period were as follows:
7


Three Months EndedNine Months Ended
Comprehensive (Loss) Income ComponentJuly 30, 2022July 31, 2021July 30, 2022July 31, 2021Location
Unrealized holding (gains) losses on derivatives
Currency forwards $2,520 $(351)$6,384 $(3,700)Cost of sales
1,320 (283)3,903 (2,138)Research and development
2,265 28 6,623 (1,796)Selling, marketing, general and administrative
Interest rate derivatives3,731 464 11,193 1,391 Interest expense
9,836 (142)28,103 (6,243)Total before tax
(423)(28)(3,209)505 Tax
$9,413 $(170)$24,894 $(5,738)Net of tax
Amortization of pension components included in the computation of net periodic pension cost
     Actuarial losses529 747 1,664 2,245 
(88)(85)(275)(257)Tax
$441 $662 $1,389 $1,988 Net of tax
Total amounts reclassified out of AOCI, net of tax$9,854 $492 $26,283 $(3,750)
Note 4 – Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
 Three Months EndedNine Months Ended
 July 30, 2022July 31, 2021July 30, 2022July 31, 2021
Net Income$748,985 $503,311 $1,812,335 $1,314,735 
Basic shares:
Weighted-average shares outstanding517,011 368,476 521,557 368,834 
Earnings per common share basic:$1.45 $1.37 $3.47 $3.56 
Diluted shares:
Weighted-average shares outstanding517,011 368,476 521,557 368,834 
Assumed exercise of common stock equivalents3,539 3,373 4,095 3,623 
Weighted-average common and common equivalent shares520,550 371,849 525,652 372,457 
Earnings per common share diluted:$1.44 $1.35 $3.45 $3.53 
Anti-dilutive shares related to:
Outstanding stock-based awards755 645 559 502 

8


Note 5 – Special Charges, Net
Liabilities related to special charges, net are included in Accrued liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below:
Accrued Special ChargesClosure of Manufacturing Facilities Global Repositioning Actions
Balance at October 30, 2021$25,774 $21,065 
Employee severance and benefit costs75 44,411 
Facility closure costs6,513  
Severance and benefit payments(4,016)(25,776)
Facility closure cost payments (6,513) 
Effect of foreign currency on accrual (54)
Balance at January 29, 2022$21,833 $39,646 
Employee severance and benefit costs 39,610 
Facility closure costs4,287  
Severance and benefit payments(14,026)(25,608)
Facility closure cost payments(4,287) 
Effect of foreign currency on accrual (156)
Balance at April 30, 2022$7,807 $53,492 
Employee severance and benefit costs 49,712 
Facility closure costs888  
Severance and benefit payments(4,663)(44,638)
Facility closure cost payments(1,303) 
Effect of foreign currency on accrual (35)
Balance at July 30, 2022$2,729 $58,531 
Closure of Manufacturing Facilities
The Company recorded net special charges of $63.4 million on a cumulative basis through July 30, 2022 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation.
During the third quarter of fiscal 2022, the Company completed the sale of its Hillview wafer fabrication facility and certain equipment located in Milpitas, California, which were previously classified as held for sale, for approximately $31.8 million, which resulted in a gain of $4.4 million. During fiscal 2021, the Company completed the sale of its facility and certain equipment in Singapore, which were previously classified as held for sale, for approximately $35.7 million, which resulted in a gain of $13.6 million.
Global Repositioning Actions
The Company recorded net special charges of $458.1 million on a cumulative basis through July 30, 2022, as part of the integration of the Acquisition and continued organizational initiatives to consolidate its footprint related to certain manufacturing, engineering, sales, marketing and administrative offices and to better align its global workforce with the Company's long-term strategic plan.
9


In connection with the Company’s decision during the third quarter of fiscal 2022 to transition its engineering, sales, marketing and administrative activities from its leased property in Santa Clara, California to its owned property in San Jose, California, the Company entered into a sublease agreement for a portion of the leased property and intends to sublease the remainder of this property. As a result of the sublease transaction, the Company recorded an impairment charge of $91.9 million in net special charges which represented the excess carrying value of the associated asset group over its estimated fair value. The Company estimated fair value using cash flows from the estimated net sublease rental income discounted at a market rate. The Company allocated $60.6 million, $28.1 million and $3.2 million of the impairment charge to right of use assets, leasehold improvements and office equipment, respectively.
Special charges also included $145.2 million in the first nine months of fiscal 2022 primarily consisting of $153.5 million of severance and benefit costs as well as charges recorded from the acceleration of equity awards in connection with the termination of certain employees in manufacturing, engineering and selling, marketing, general and administrative roles at sites assumed related to the Acquisition and various locations throughout the world. These charges were partially offset by a gain of $8.3 million recognized upon the sale of a business.
Note 6 - Commitments and Contingencies
On March 17, 2022, Walter E. Ryan and Ryan Asset Management, LLC, purported stockholders of Maxim, filed a putative class action in the Court of Chancery of the State of Delaware (C.A. No. 2022—0255) against the Company and the former directors of Maxim. The complaint alleges breach of fiduciary duties by the individual defendants in connection with Maxim’s agreement, as part of the merger negotiations with the Company, to suspend Maxim dividends for up to four quarters prior to the closing of the Acquisition. The complaint further alleges that the Company aided and abetted that alleged breach of fiduciary duties. The plaintiffs seek damages in an amount to be determined at trial, plaintiffs’ costs and disbursements, including reasonable attorneys’ and experts’ fees, costs and other expenses. The Company believes that it and the other defendants have meritorious defenses to these allegations; however, the Company is currently unable to determine the ultimate outcome of this matter or determine an estimate, or a range of estimates, of potential losses, if any.
Note 7 – Revenue
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 revenue within, each end market.
10


Three Months Ended
 July 30, 2022July 31, 2021
 Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$1,555,070 50 %55 %$1,006,383 57 %
Automotive659,090 21 %127 %290,182 16 %
Communications490,732 16 %69 %290,391 17 %
Consumer404,988 13 %136 %171,897 10 %
Total revenue$3,109,880 100 %77 %$1,758,853 100 %
Nine Months Ended
July 30, 2022July 31, 2021
Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$4,402,912 50 %55 %$2,841,665 57 %
Automotive1,844,017 21 %132 %794,739 16 %
Communications1,376,182 16 %62 %850,153 17 %
Consumer1,143,126 13 %132 %492,161 10 %
Total revenue$8,766,237 100 %76 %$4,978,718 100 %
* The sum of the individual percentages may not equal the total due to rounding.
Revenue by Sales Channel
The following table summarizes 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 certain commercial customers for which revenue is recorded over time.
Three Months Ended
July 30, 2022July 31, 2021
ChannelRevenue% of Revenue*Revenue% of Revenue*
   Distributors$1,922,982 62 %$1,123,301 64 %
   Direct customers1,146,538 37 %588,001 33 %
   Other40,360 1 %47,551 3 %
Total revenue$3,109,880 100 %$1,758,853 100 %
Nine Months Ended
July 30, 2022July 31, 2021
ChannelRevenue% of Revenue*Revenue% of Revenue*
Distributors$5,426,024 62 %$3,162,615 64 %
Direct customers3,241,429 37 %1,724,012 35 %
Other98,784 1 %92,091 2 %
Total revenue$8,766,237 100 %$4,978,718 100 %
* The sum of the individual percentages may not equal the total due to rounding.
Note 8 – 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).
11


Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.
The tables below, set forth by level, presents the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of July 30, 2022 and October 30, 2021. 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 July 30, 2022 and October 30, 2021, the Company held $951.9 million and $1,315.0 million, respectively, of cash that was excluded from the tables below.
 July 30, 2022
 
Fair Value measurement at
Reporting Date using:
 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds$573,019 $ $573,019 
Other assets:
Deferred compensation plan investments68,128  68,128 
Total assets measured at fair value$641,147 $ $641,147 
Liabilities
Forward foreign currency exchange contracts (1)$ $23,677 $23,677 
Total liabilities measured at fair value$ $23,677 $23,677 
(1)The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company's master netting arrangements.
 October 30, 2021
 
Fair Value measurement at
Reporting Date using:
 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds$662,997 $ $662,997 
Other assets:
Deferred compensation plan investments71,301  71,301 
Total assets measured at fair value$734,298 $ $734,298 
Liabilities
Forward foreign currency exchange contracts (1)$ $8,085 $8,085 
Total liabilities measured at fair value$ $8,085 $8,085 
12


(1)The Company has master netting arrangements by counterparty with respect to derivative contracts. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements for more information related to the Company's master netting arrangements.

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
Cash equivalents — These investments are adjusted to fair value based on quoted market prices or are determined using a yield curve model based on current market rates.
Deferred compensation plan investments — The fair value of these mutual fund, money market fund and equity investments are based on quoted market prices.
Forward foreign currency exchange contracts — The estimated fair value of forward foreign currency exchange contracts, which includes derivatives that are accounted for as cash flow hedges and those that are not designated as cash flow hedges, is based on the estimated amount the Company would receive if it sold these agreements at the reporting date taking into consideration current interest rates as well as the creditworthiness of the counterparty for assets and the Company’s creditworthiness for liabilities. The fair value of these instruments is based upon valuation models using current market information such as strike price, spot rate, maturity date and volatility.
Assets amd Liabilities Not Recorded at Fair Value on a Recurring Basis
Santa Clara, California leased property asset group — As a result of a sublease transaction involving a leased property in Santa Clara, California during the third quarter of 2022, the Company estimated the fair value of the sublease assets using discounted cash flows from the estimated net sublease rental income discounted at a market rate and recorded an impairment charge which represented the excess carrying value of the asset group associated with the Santa Clara, California leased property over its estimated fair value. These assets are considered a Level 2 fair value measurement. See Note 5, Special Charges, Net, in these Notes to Condensed Consolidated Financial Statements for additional information.
Debt — The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis. The fair values of the senior unsecured notes are obtained from broker prices and are classified as Level 1 measurements according to the fair value hierarchy.
July 30, 2022October 30, 2021
Principal Amount OutstandingFair Value Principal Amount Outstanding Fair Value
Maxim 2023 Notes, due March 2023$ $ $500,000 $520,236 
2024 Notes, due October 2024500,000 489,243 500,000 500,482 
2025 Notes, due April 2025400,000 395,881 400,000 423,265 
2026 Notes, due December 2026900,000 907,976 900,000 986,243 
Maxim 2027 Notes, due June 2027500,000 488,514 500,000 542,942 
2028 Notes, due October 2028750,000 678,323 750,000 743,109 
2031 Notes, due October 20311,000,000 891,385 1,000,000 996,702 
2036 Notes, due December 2036144,278 150,517 144,278 176,960