What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-08-18 compared with 2021-05-19 · 71 added, 67 removed, 181 unchanged (43% of the section changed)

30 unchanged sentences

While we are confident that our strategy and long-term contingency planning have positioned us well to weather the current uncertainty, we cannot at this time fully quantify or forecast the impact of COVID-19 on our business.

The full extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations will depend on future developments, which are highly uncertain such as the continued duration and severity of the pandemic, the actions to contain the virus or treat its impact, or how quickly and to what extent normal economic and operating conditions can resume.

The full extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations will depend on future developments, which are highly uncertain such as the continued duration and severity of the pandemic, the spread of more contagious variants of the virus, the adoption rate of vaccines, the actions to contain the virus or treat its impact, or how quickly and to what extent normal economic and operating conditions can resume.

Proposed Acquisition of Maxim Integrated Products, Inc.

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Under the terms of the Merger Agreement, Maxim stockholders will receive, for each outstanding share of Maxim common stock, 0.630 of a share of our common stock at the closing.

The estimated merger consideration is approximately $25.0 billion based on the closing price of our common stock on May 14, 2021.

The estimated merger consideration is approximately $29.0 billion based on the closing price of our common stock on August 13, 2021.

The value of the merger consideration will fluctuate based upon changes in the price of our common stock and the number of shares of Maxim common stock, restricted stock awards and restricted stock unit awards outstanding on the closing date.

The transaction is subject to customary closing conditions, including receipt of certain remaining non-U.S.

regulatory approvals.

The transaction is subject to customary closing conditions, including receipt of regulatory approvals.

To date, required regulatory approvals have been obtained in all jurisdictions with the exception of China.

6 unchanged sentences

Three Months Ended

May 1, 2021 May 2, 2020 $ Change % Change

July 31, 2021 August 1, 2020 $ Change % Change

Revenue $ 1,758,853 $ 1,456,136 $ 302,717 21 %

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Diluted EPS $ 1.35 $ 0.97 $ 0.38 39 %

Six Months Ended

May 1, 2021 May 2, 2020 $ Change % Change

Nine Months Ended

July 31, 2021 August 1, 2020 $ Change % Change

Revenue $ 4,978,718 $ 4,076,761 $ 901,957 22 %

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When this occurs, we reclassify 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.

Such reclassifications

typically do not materially change the sizing of, or the underlying trends of results within, each end market.

Three Months Ended

May 1, 2021 May 2, 2020

July 31, 2021 August 1, 2020

Revenue* Y/Y% Revenue % of

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Total revenue $ 1,758,853 100 % 21 % $ 1,456,136 100 %

Six Months Ended

May 1, 2021 May 2, 2020

Nine Months Ended

July 31, 2021 August 1, 2020

Revenue* Y/Y% Revenue % of

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* The sum of the individual percentages may not equal the total due to rounding.

Revenue increased in the three- and six-month periods ended May 1, 2021, as compared to the same periods of the prior fiscal year, primarily as a result of higher broad-based demand for our products sold into the Industrial and Automotive end markets, and to a lesser extent, sold into the Consumer end market.

Revenue in the Communications end market was relatively flat in the three-month period ended May 1, 2021 and increased in the six-month period ended May 1, 2021 due to the timing of infrastructure deployment cycles and the ramp up of these cycles in certain regions.

Revenue increased in the three- and nine-month periods ended July 31, 2021, as compared to the same periods of the prior fiscal year, primarily as a result of higher broad-based demand for our products sold into the Industrial and Automotive end markets, and to a lesser extent, sold into the Consumer end market.

In addition, the increased revenue in the Automotive end market in both periods were impacted by an arrangement to license our intellectual property resulting in $24.1 million of revenue immediately recognized in the third quarter of fiscal 2021.

Revenue in the Communications end market decreased in the three- and nine-month periods ended July 31, 2021 due to the timing of infrastructure deployment cycles in certain regions.

Revenue by Sales Channel

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Three Months Ended

May 1, 2021 May 2, 2020

July 31, 2021 August 1, 2020

Revenue % of Revenue* Revenue % of Revenue*

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Total revenue $ 1,758,853 100 % $ 1,456,136 100 %

Six Months Ended

May 1, 2021 May 2, 2020

Nine Months Ended

July 31, 2021 August 1, 2020

Revenue % of Revenue* Revenue % of Revenue*

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The percentage of total revenue sold via each channel can fluctuate from time to time based on end customer demand.

In the three- and six-month periods ended May 1, 2021, higher demand within our Industrial end market resulted in increased revenue through our distributor channel.

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change % Change May 1, 2021 May 2, 2020 $ Change % Change

In the three- and nine-month periods ended July 31, 2021, higher demand within our Industrial end market resulted in increased revenue through our distributor channel.

In addition, an arrangement to license our intellectual property resulting in $24.1 million of revenue immediately recognized in the third quarter of fiscal 2021 contributed to an increase in the percent of total revenue from other channels.

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change % Change July 31, 2021 August 1, 2020 $ Change % Change

Gross margin $ 1,221,184 $ 972,578 $ 248,606 26 % 3,403,192 2,667,394 $ 735,798 28 %

Gross margin % 69.4 % 66.8 % 68.4% 65.4 %

Gross margin percentage increased by 410 and 310 basis points in the three- and six-month periods ended May 1, 2021, respectively, as compared to the same periods of the prior fiscal year, primarily as a result of higher utilization of our factories due to increased customer demand.

Gross margin percentage increased by 260 and 300 basis points in the three- and nine-month periods ended July 31, 2021, respectively, as compared to the same periods of the prior fiscal year, primarily as a result of higher utilization of our factories due to increased customer demand as well as from the arrangement to license our intellectual property noted above.

Research and Development (R&D)

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change % Change May 1, 2021 May 2, 2020 $ Change % Change

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change % Change July 31, 2021 August 1, 2020 $ Change % Change

R&D expenses $ 306,617 $ 260,794 $ 45,823 18 % $ 897,005 $ 770,280 $ 126,725 16 %

R&D expenses as a % of revenue 17 % 18 % 18 % 19 %

R&D expenses increased in the three- and six-month periods ended May 1, 2021, as compared to the same periods of the prior fiscal year, primarily as a result of higher R&D employee-related variable compensation expense and salary and benefit expenses.

In the six-month period ended May 1, 2021, those increases were partially offset by lower discretionary spending.

R&D expenses increased in the three- and nine-month periods ended July 31, 2021, as compared to the same periods of the prior fiscal year, primarily as a result of higher R&D employee-related variable compensation expense and salary and benefit expenses.

In the nine-month period ended July 31, 2021, those increases were partially offset by lower discretionary spending.

R&D expenses as a percentage of revenue will fluctuate from year-to-year depending on the amount of revenue and the success of new product development efforts, which we view as critical to our future growth.

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Selling, Marketing, General and Administrative (SMG&A)

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change % Change May 1, 2021 May 2, 2020 $ Change % Change

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change % Change July 31, 2021 August 1, 2020 $ Change % Change

SMG&A expenses $ 206,076 $ 153,753 $ 52,323 34 % $ 597,963 $ 494,808 $ 103,155 21 %

SMG&A expenses as a % of revenue 12 % 11 % 12 % 12 %

SMG&A expenses increased in the three-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, primarily as a result of higher variable compensation expense, $23.0 million in acquisition-related transaction costs in connection with the proposed acquisition of Maxim and higher salary and benefit expenses.

SMG&A expenses increased in the six-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, primarily as a result of higher variable compensation expense, $38.2 million in acquisition-related transaction costs in connection with the proposed acquisition of Maxim and higher salary and benefit expenses, partially offset by a $40.0 million charitable contribution to the Analog Devices Foundation made in the first quarter of fiscal 2020.

SMG&A expenses increased in the three-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, primarily as a result of higher variable compensation expense, salary and benefit expenses and acquisition-related transaction costs in connection with the proposed acquisition of Maxim.

SMG&A expenses increased in the nine-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, primarily as a result of higher acquisition-related transaction costs in connection with the proposed acquisition of Maxim, variable compensation expense and salary and benefit expenses, partially offset by a $40.0 million charitable contribution to the Analog Devices Foundation made in the first quarter of fiscal 2020.

Operating Income

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change % Change May 1, 2021 May 2, 2020 $ Change % Change

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change % Change July 31, 2021 August 1, 2020 $ Change % Change

Operating income $ 609,646 $ 419,124 $ 190,522 45 % $ 1,593,196 $ 1,036,572 $ 556,624 54 %

Operating income as a % of revenue 34.7 % 28.8 % 32.0 % 25.4 %

The year-over-year increase in operating income in the three-month period ended May 1, 2021 was primarily the result of an increase in revenue of $344.3 million, which drove an increase in gross margin of $290.0 million, partially offset by increases of $64.8 million in SMG&A expenses and $49.8 million in R&D expenses, as described above under the headings Revenue Trends by End Market, Gross Margin, Selling, Marketing, General and Administrative (SMG&A) and Research and Development (R&D).

The year-over-year increase in operating income in the six-month period ended May 1, 2021 was primarily the result of an increase in revenue of $599.2 million, which drove an increase in gross margin of $487.2 million, and a decrease in special charges of $11.7 million, partially offset by an $80.9 million increase in R&D expenses and a $50.8 million increase in SMG&A expenses, as described above under the headings Revenue Trends by End Market, Gross Margin, Research and Development (R&D) and Selling, Marketing, General and Administrative (SMG&A).

The year-over-year increase in operating income in the three-month period ended July 31, 2021 was primarily the result of an increase in revenue of $302.7 million, which contributed to an increase in gross margin of $248.6 million, and a decrease in special charges of $40.8 million, partially offset by increases of $52.3 million in SMG&A expenses and $45.8 million in R&D expenses, as described above under the headings Revenue Trends by End Market, Gross Margin, Selling, Marketing, General and Administrative (SMG&A) and Research and Development (R&D).

The year-over-year increase in operating income in the nine-month period ended July 31, 2021 was primarily the result of an increase in revenue of $902.0 million, which contributed to an increase in gross margin of $735.8 million, and a decrease in special charges of $52.5 million, partially offset by a $126.7 million increase in R&D expenses and a $103.2 million increase in SMG&A expenses, as described above under the headings Revenue Trends by End Market, Gross Margin, Research and Development (R&D) and Selling, Marketing, General and Administrative (SMG&A).

Nonoperating Expense (Income)

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change May 1, 2021 May 2, 2020 $ Change

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change July 31, 2021 August 1, 2020 $ Change

Total nonoperating expense (income) $ 37,368 $ 46,095 $ (8,727) $ 108,315 $ 142,265 $ (33,950)

The year-over-year decrease in nonoperating expense in the three-month period ended May 1, 2021 was primarily the result of a decrease in interest expense related to our debt obligations.

The year-over-year decrease in nonoperating expense in the six-month period ended May 1, 2021 was primarily the result of a $16.2 million gain recorded in other investments in the first quarter of fiscal 2021 and a decrease in interest expense related to our debt obligations.

The year-over-year decrease in nonoperating expense (income) in the three- and nine-month periods ended July 31, 2021 was primarily the result of gains recorded on other investments.

The nine-month period was also impacted by a decrease in interest expense related to our debt obligations.

Provision for Income Taxes

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change May 1, 2021 May 2, 2020 $ Change

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change July 31, 2021 August 1, 2020 $ Change

Provision for income taxes $ 68,967 $ 10,364 $ 58,603 $ 170,146 $ 60,072 $ 110,074

Effective income tax rate 12.1 % 2.8 % 11.5 % 6.7 %

The effective tax rates for the three- and six-month periods ended May 1, 2021 and May 2, 2020 were below the U.S.

The effective tax rates for the three- and nine-month periods ended July 31, 2021 and August 1, 2020 were below the U.S.

statutory tax rate of 21% due to lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income.

Our pretax income for the three- and six-month periods ended May 1, 2021 and May 2, 2020 was primarily generated in Ireland at a tax rate of 12.5%.

Our pretax income for the three- and nine-month periods ended July 31, 2021 and August 1, 2020 was primarily generated in Ireland at a tax rate of 12.5%.

The tax rates for the three- and nine-month periods ended August 1, 2020 were also impacted by discrete income tax benefits of $33.7 million recorded in the third quarter of fiscal 2020, comprised primarily of $25.9 million of income tax benefits resulting from the resolution of the Internal Revenue Service (IRS) audit of Linear’s pre-acquisition federal income tax returns for fiscal 2015 through fiscal 2017 and other income tax benefits recorded upon filing of our federal income tax return for fiscal 2019.

See Note 12, Income Taxes , in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion.

Three Months Ended Six Months Ended

May 1, 2021 May 2, 2020 $ Change % Change May 1, 2021 May 2, 2020 $ Change % Change

Three Months Ended Nine Months Ended

July 31, 2021 August 1, 2020 $ Change % Change July 31, 2021 August 1, 2020 $ Change % Change

Net Income $ 503,311 $ 362,665 $ 140,646 39 % $ 1,314,735 $ 834,235 $ 480,500 58 %

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Diluted EPS $ 1.35 $ 0.97 $ 3.53 $ 2.24

Net income increased in the three-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, as a result of a $175.7 million increase in operating income and a $5.3 million decrease in nonoperating expense, partially offset by a $25.7 million increase in provision for income taxes.

Net income increased in the six-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, as a result of a $366.1 million increase in operating income and a $25.2 million decrease in nonoperating expense, partially offset by a $51.5 million increase in provision for income taxes.

Net income increased in the three-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, as a result of a $190.5 million increase in operating income and an $8.7 million decrease in nonoperating expense (income), partially offset by a $58.6 million increase in provision for income taxes.

Net income increased in the nine-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, as a result of a $556.6 million increase in operating income and a $34.0 million decrease in nonoperating expense (income), partially offset by a $110.1 million increase in provision for income taxes.

Liquidity and Capital Resources

At May 1, 2021, our principal source of liquidity was $1,305.2 million of cash and cash equivalents, of which approximately $498.4 million was held in the United States and the balance of our cash and cash equivalents was held outside the United States in various foreign subsidiaries.

At July 31, 2021, our principal source of liquidity was $1,480.7 million of cash and cash equivalents, of which approximately $701.4 million was held in the United States and the balance of our cash and cash equivalents was held outside the United States in various foreign subsidiaries.

We manage our worldwide cash requirements by, among other things, reviewing available funds held by our foreign subsidiaries and the cost effectiveness by which those funds can be accessed in the United States.

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We believe that our existing sources of liquidity and cash expected to be generated from future operations, together with existing and anticipated available long-term financing, will be sufficient to fund operations, capital expenditures, research and development efforts, transaction costs associated with our proposed merger with Maxim and dividend payments (if any) in the immediate future and for at least the next twelve months.

Six Months Ended

May 1, 2021 May 2, 2020

Nine Months Ended

July 31, 2021 August 1, 2020

Net cash provided by operating activities $ 1,794,345 $ 1,335,889

2 unchanged sentences

Net cash used for financing activities $ (1,189,966) $ (744,442)

The following changes contributed to the net change in cash and cash equivalents in the six-month period ended May 1, 2021 as compared to the same period in fiscal 2020.

The following changes contributed to the net change in cash and cash equivalents in the nine-month period ended July 31, 2021 as compared to the same period in fiscal 2020.

Operating Activities

Cash provided by operating activities is net income adjusted for certain non-cash items and changes in operating assets and liabilities.

The increase in cash provided by operating activities during the six-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, was primarily the result of higher net income adjusted for non-cash items and changes in working capital.

The increase in cash provided by operating activities during the nine-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, was primarily the result of higher net income adjusted for non-cash items and changes in working capital.

Investing Activities

Investing cash flows generally consist of capital expenditures and cash used for acquisitions.

The increase in cash used for investing activities during the six-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, was primarily the result of cash payments for an asset acquisition and an increase in cash used for capital expenditures, partially offset by proceeds from other investments.

The increase in cash used for investing activities during the nine-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, was primarily the result of an increase in cash used for capital expenditures and cash payments for acquisitions, partially offset by proceeds from the sale of our Singapore facility and other investments.

Financing Activities

Financing cash flows generally consist of payments of dividends to stockholders, repurchases of common stock, issuance and repayment of debt and proceeds from the sale of shares of common stock pursuant to employee equity incentive plans.

The increase in cash used for financing activities during the six-month period ended May 1, 2021, as compared to the same period of the prior fiscal year, was primarily the result of increases in common stock repurchases and dividend payments to shareholders.

The increase in cash used for financing activities during the nine-month period ended July 31, 2021, as compared to the same period of the prior fiscal year, was primarily the result of increases in common stock repurchases and dividend payments to shareholders.

The comparable period of fiscal 2020 also included proceeds from our bond issuance as well as debt repayments, which did not repeat in fiscal 2021.

Working Capital

May 1, 2021 October 31, 2020 $ Change % Change

July 31, 2021 October 31, 2020 $ Change % Change

Accounts receivable $ 823,163 $ 737,536 $ 85,627 12 %

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Our inventory levels are impacted by our need to support forecasted sales demand and variations between those forecasts and actual demand.

Current liabilities increased to approximately $2,776.8 million at May 1, 2021 from approximately $1,365.0 million at the end of fiscal 2020.

The increase was primarily due to increases in the current portion of our debt, accounts payable and accrued liabilities, partially offset by a decrease in income taxes payable.

As of May 1, 2021, our debt obligations consisted of the following:

Current liabilities increased to approximately $2,793.3 million at July 31, 2021 from approximately $1,365.0 million at the end of fiscal 2020.

The increase was primarily due to increases in the current portion of our debt of $1,324.7 million.

As of July 31, 2021, our debt obligations consisted of the following:

Principal Amount Outstanding

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and consolidate with or merge into, or transfer or lease all or substantially all of our assets to, any other party.

As of May 1, 2021, we were in compliance with these covenants.

As of July 31, 2021, we were in compliance with these covenants.

Revolving Credit Facility

Our Second Amended and Restated Revolving Credit Agreement, dated as of June 28, 2019, with Bank of America N.A.

as administrative agent and other banks identified therein as lenders (Revolving Credit Agreement) provides for a five-year unsecured revolving credit facility in an aggregate principal amount of up to $1.25 billion, expiring on June 28, 2024.

Our Third Amended and Restated Revolving Credit Agreement, dated as of June 23, 2021, with Bank of America N.A.

as administrative agent and the other banks identified therein as lenders (Revolving Credit Agreement) amends and restates our existing Second Amended and Restated Credit Agreement dated as of June 28, 2019 and provides for a five year unsecured revolving credit facility in an aggregate principal amount not to exceed (i) $1.25 billion or (ii) upon the completion of the acquisition by the Company of Maxim on or before January 12, 2022 (subject to certain terms and conditions), $2.5 billion.

We may borrow under this revolving credit facility in the future and use the proceeds for repayment of existing indebtedness, stock repurchases, acquisitions, capital expenditures, working capital and other lawful corporate purposes.

1 unchanged sentence

In addition, the Revolving Credit Agreement contains a consolidated leverage ratio covenant of total consolidated funded debt to consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of not greater than 3.5 to 1.0.

As of May 1, 2021, we were in compliance with these covenants.

As of July 31, 2021, we were in compliance with these covenants.

Stock Repurchase Program

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Unless terminated earlier by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized under the program.

As of May 1, 2021, an additional $1.6 billion remains available for repurchase under the current authorized program.

As of July 31, 2021, an additional $1.4 billion remains available for repurchase under the current authorized program.

The repurchased shares are held as authorized but unissued shares of common stock.

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Capital Expenditures

Net additions to property, plant and equipment were $126.6 million in the first six months of fiscal 2021 and were funded with a combination of cash on hand and cash generated from operations.

Net additions to property, plant and equipment were $212.9 million in the first nine months of fiscal 2021 and were funded with a combination of cash on hand and cash generated from operations.

We expect capital expenditures for fiscal 2021 to be between 4% and 5% of fiscal 2021 revenue.

We expect these capital expenditures will be funded with a combination of cash on hand and cash generated from operations.

On May 18, 2021, our Board of Directors declared a cash dividend of $0.69 per outstanding share of common stock.

The dividend will be paid on June 8, 2021 to all shareholders of record at the close of business on May 28, 2021 and is expected to total approximately $254.5 million.

On August 17, 2021, our Board of Directors declared a cash dividend of $0.69 per outstanding share of common stock.

The dividend will be paid on September 8, 2021 to all shareholders of record at the close of business on August 27, 2021 and is expected to total approximately $254.1 million.

We currently expect quarterly dividends to continue in future periods.

The payment of any future quarterly dividends, or a future increase in the quarterly dividend amount, will be at the discretion of the Board and will be dependent upon our financial position, results of operations, outlook, liquidity, and other factors deemed relevant by the Board.

The payment of any future quarterly dividends, or a future increase in the quarterly dividend amount, will be at the discretion of the

Board and will be dependent upon our financial position, results of operations, outlook, liquidity, and other factors deemed relevant by the Board.

Contractual Obligations

There have not been any material changes during the six-month period ended May 1, 2021 to the amounts presented in the table summarizing our contractual obligations included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

There have not been any material changes during the nine-month period ended July 31, 2021 to the amounts presented in the table summarizing our contractual obligations included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

New Accounting Pronouncements

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Critical Accounting Policies and Estimates

Except for the accounting policies for credit losses and income taxes that were updated as a result of adopting ASU 2016-13 and ASU 2019-12, respectively, there were no other changes in the six-month period ended May 1, 2021 to the information provided under the heading “Critical Accounting Policies and Estimates” in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

Except for the accounting policies for credit losses and income taxes that were updated as a result of adopting ASU 2016-13 and ASU 2019-12, respectively, there were no other changes in the nine-month period ended July 31, 2021 to the information provided under the heading “Critical Accounting Policies and Estimates” in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

Quantitative and Qualitative Disclosures About Market Risk

There were no material changes in the six-month period ended May 1, 2021 to the information provided under Item 7A.

There were no material changes in the nine-month period ended July 31, 2021 to the information provided under Item 7A.

“Quantitative and Qualitative Disclosures about Market Risk,” set forth in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis