What changed in this filing

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Item 1A. Risk Factors

2022-08-17 compared with 2022-05-18 · 15 added, 13 removed, 368 unchanged (7% of the section changed)

46 unchanged sentences

We cannot at this time fully quantify or forecast the impact of the COVID-19 pandemic on our business.

The full extent of the impact of the pandemic on our business, financial condition and results of operations will depend on future developments, which are highly uncertain, including the continued duration and severity of the pandemic, the severity and containment of certain variants of the virus, the availability, administration rates and effectiveness of vaccines, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume.

Political and economic uncertainty as well as disruptions in global credit and financial markets could materially and adversely affect our business and results of operations.

Continuing political and global macroeconomic uncertainty, including related to the COVID-19 pandemic, trade and political disputes between the United States and China, China-Taiwan relations, the United Kingdom's withdrawal from the European Union, the ongoing conflict between Russia and Ukraine, tensions between Russia, the United States and European countries and uncertainty regarding the stability of global credit and financial markets may lead consumers and businesses to postpone or reduce spending, which may cause our customers to cancel, decrease or delay their existing and future orders for our products and make it difficult for us to accurately forecast and plan our future business activities.

Financial difficulties experienced by our customers could result in nonpayment or payment delays for previously purchased products, thereby increasing our credit risk exposure.

Continuing political and global macroeconomic uncertainty, including related to the COVID-19 pandemic, trade and political disputes between the United States and China, China-Taiwan relations, the United Kingdom's withdrawal from the European Union, the ongoing conflict between Russia and Ukraine, and uncertainty regarding the stability of global credit and financial markets due to adverse macroeconomic conditions such as rising inflation, increasing interest rates and slower economic growth or recession, may lead consumers and businesses to postpone or reduce spending, which may cause our customers to cancel, decrease or delay their existing and future orders for our products and make it difficult for us to accurately forecast and plan our future business activities.

Financial difficulties experienced by our customers could result in nonpayment

or payment delays for previously purchased products, thereby increasing our credit risk exposure.

Uncertainty regarding the macroeconomic conditions as well as the future stability of the global credit and financial markets could cause the value of the currency in the affected markets to deteriorate, thus reducing the purchasing power of those customers.

9 unchanged sentences

customs and export regulations, including the Export Administration Regulations and the International Traffic and Arms Regulations;

• currency conversion risks and exchange rate and interest rate fluctuations, including the potential impact of the transition from LIBOR;

• currency conversion risks and exchange rate and interest rate fluctuations, including the potential impact of the transition from LIBOR and the current increasing interest rate environment;

• trade policy, commercial, travel, export or taxation disputes or restrictions, import or export tariffs, changes to export classifications or other restrictions imposed by the U.S.

11 unchanged sentences

• changes to foreign taxes, tariffs and freight rates;

• fluctuations in raw material costs and energy costs;

• fluctuations in raw material costs and energy costs due to general market factors and conditions such as inflation and supply chain constraints;

• greater difficulty in accounts receivable collections and longer collection periods;

2 unchanged sentences

Many of these risks are present within our business operations in China.

For example, changes in U.S.-China relations, the political environment or international trade policies and relations could result in further revisions to laws or regulations or their interpretation and enforcement, increased taxation, trade sanctions, the imposition of import or export duties and tariffs, restrictions on imports or exports, currency revaluations, or retaliatory actions, which have had and may continue to have an adverse effect on our business plans and operating results.

adverse effect on our business plans and operating results.

In addition, expanded export restrictions may limit our ability to sell to certain Chinese companies and to third parties that do business with those companies.

16 unchanged sentences

• the extent of the impact and the duration of the COVID-19 pandemic;

• the effects of adverse economic conditions in the markets in which we sell our products, including inflationary pressures, which has or may result in increased interest rates, fuel prices, wages, and other costs;

• the effects of adverse economic conditions in the markets in which we sell our products, including inflationary pressures, which has resulted, and may continue to result, in increased interest rates, fuel prices, wages, and other costs;

• changes in customer demand or order patterns for our products and/or for end products that incorporate our products;

34 unchanged sentences

Our effective tax rate reflects the applicable tax rate in effect in the various tax jurisdictions around the world where our income is earned.

Our effective tax rate for the first three and six months of the fiscal year ending October 29, 2022 was below our U.S.

Our effective tax rate for the first three and nine months of the fiscal year ending October 29, 2022 was below our U.S.

federal statutory rate of 21%.

13 unchanged sentences

The ability to extend such tax holiday beyond its expiration date cannot be assured.

In addition, if we fail to meet certain conditions

of the tax holiday, we may lose the benefit of the tax holiday and/or be subject to additional taxes and/or penalties.

In addition, if we fail to meet certain conditions of the tax holiday, we may lose the benefit of the tax holiday and/or be subject to additional taxes and/or penalties.

Any significant increase in our future effective tax rate could adversely impact our net income during future periods.

2 unchanged sentences

We are also subject to laws and regulations in various jurisdictions that determine how much profit has been earned and when it is subject to taxation in that jurisdiction.

Changes in these laws and regulations, including those that align to or are associated with the Organization for Economic Cooperation and Development's Base Erosion and Profit Shifting (BEPS) Actions Plans, could impact the jurisdictions where we are deemed to earn income, which could in turn adversely affect our tax liability and results of operations.

Changes in these laws and regulations, including those that align to or are associated with the Organization for Economic Cooperation and Development's Base Erosion and Profit Shifting (BEPS)

Actions Plans, could impact the jurisdictions where we are deemed to earn income, which could in turn adversely affect our tax liability and results of operations.

Our customers typically do not make long-term product purchase commitments, and incorrect forecasts or reductions, cancellations or delays in orders for our products could adversely affect our operating results.

133 unchanged sentences

• negative media publicity targeting us or our suppliers, customers or competitors.

The stock market has historically experienced volatility, especially within the semiconductor industry, that often has been unrelated to the performance of particular companies.

The stock market has historically experienced volatility, especially within the semiconductor industry, that often has been unrelated to the performance of particular companies, such as the response to world-wide economic disruptions related to the ongoing COVID-19 pandemic and rising inflation and increasing interest rates.

These market fluctuations may cause our stock price to fall regardless of our operating results.

3 unchanged sentences

We have substantial existing indebtedness and the ability to incur significant additional indebtedness, which could limit our operations and our use of our cash flow and negatively impact our credit ratings.

As of April 30, 2022, we had approximately $6.3 billion in outstanding indebtedness.

As of July 30, 2022, we had approximately $6.3 billion in outstanding indebtedness.

In addition, we had $2.5 billion of availability under our $2.5 billion of unsecured revolving credit facility.

78 unchanged sentences

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 1A. Risk Factors