What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-21 compared with 2024-05-22 · 73 added, 57 removed, 409 unchanged (24% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended Six Months Ended

May 4, 2024 April 29, 2023 May 4, 2024 April 29, 2023

Three Months Ended Nine Months Ended

August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Revenue $ 2,312,209 $ 3,076,495 $ 6,983,952 $ 9,589,055

15 unchanged sentences

Income before income taxes 422,991 874,821 1,261,012 3,036,217

Provision for income taxes 22,361 110,267 73,052 222,266

Provision for (benefit from) income taxes 30,759 ( 2,198 ) 103,811 220,068

Net income $ 392,232 $ 877,019 $ 1,157,201 $ 2,816,149

7 unchanged sentences

(in thousands)

Three Months Ended Six Months Ended

May 4, 2024 April 29, 2023 May 4, 2024 April 29, 2023

Three Months Ended Nine Months Ended

August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Net income $ 392,232 $ 877,019 $ 1,157,201 $ 2,816,149

2 unchanged sentences

Changes in pension plans, net ( 141 ) 422 985 1,218

Other comprehensive income (loss) 4,084 ( 2,629 ) 11,101 25,789

Other comprehensive income 7,483 1,509 18,584 27,298

Comprehensive income $ 399,715 $ 878,528 $ 1,175,785 $ 2,843,447

3 unchanged sentences

(in thousands, except share and per share amounts)

May 4, 2024 October 28, 2023

August 3, 2024 October 28, 2023

Current Assets

40 unchanged sentences

(in thousands)

Three Months Ended May 4, 2024

Three Months Ended August 3, 2024

Capital in Accumulated

1 unchanged sentence

Shares Amount Par Value Earnings Loss

BALANCE, FEBRUARY 3, 2024

BALANCE, MAY 4, 2024

496,217 $ 82,704 $ 25,103,737 $ 10,239,549 $ ( 177,201 )

5 unchanged sentences

Common stock repurchased ( 551 ) ( 92 ) ( 117,888 )

BALANCE, MAY 4, 2024

BALANCE, AUGUST 3, 2024

496,493 $ 82,750 $ 25,101,781 $ 10,175,296 $ ( 169,718 )

Six Months Ended May 4, 2024

Nine Months Ended August 3, 2024

Capital in Accumulated

5 unchanged sentences

Dividends declared and paid - $ 2.70 per share

( 1,338,703 )

Issuance of stock under stock plans and other 2,989 498 115,857

2 unchanged sentences

Common stock repurchased ( 2,758 ) ( 460 ) ( 520,252 )

BALANCE, MAY 4, 2024

BALANCE, AUGUST 3, 2024

496,493 $ 82,750 $ 25,101,781 $ 10,175,296 $ ( 169,718 )

3 unchanged sentences

(in thousands)

Three Months Ended April 29, 2023

Three Months Ended July 29, 2023

Capital in Accumulated

1 unchanged sentence

Shares Amount Par Value Earnings Loss

BALANCE, JANUARY 28, 2023 505,852 $ 84,306 $ 27,319,566 $ 9,297,347 $ ( 169,734 )

BALANCE, APRIL 29, 2023 501,418 $ 83,571 $ 26,262,226 $ 9,839,790 $ ( 172,363 )

Net income 877,019

2 unchanged sentences

Stock-based compensation expense 82,970

Other comprehensive loss ( 2,629 )

Other comprehensive income 1,509

Common stock repurchased ( 3,687 ) ( 614 ) ( 685,896 )

BALANCE, APRIL 29, 2023

BALANCE, JULY 29, 2023

498,314 $ 83,054 $ 25,705,193 $ 10,286,353 $ ( 170,854 )

Six Months Ended April 29, 2023

Nine Months Ended July 29, 2023

Capital in Accumulated

4 unchanged sentences

Dividends declared and paid - $ 2.48 per share

( 1,251,121 )

Issuance of stock under stock plans and other 2,963 494 112,508

2 unchanged sentences

Common stock repurchased ( 13,945 ) ( 2,320 ) ( 2,491,698 )

BALANCE, APRIL 29, 2023

BALANCE, JULY 29, 2023

498,314 $ 83,054 $ 25,705,193 $ 10,286,353 $ ( 170,854 )

3 unchanged sentences

(in thousands)

Six Months Ended

May 4, 2024 April 29, 2023

Nine Months Ended

August 3, 2024 July 29, 2023

Cash flows from operating activities:

10 unchanged sentences

Cash flows from investing activities:

Purchases of short-term available-for-sale investments ( 424,117 ) —

Purchases of short-term investments ( 438,901 ) —

Additions to property, plant and equipment ( 565,053 ) ( 785,070 )

17 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED MAY 4, 2024 (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED AUGUST 3, 2024 (UNAUDITED)

(all tabular amounts in thousands except per share amounts and percentages)

5 unchanged sentences

The additional week in fiscal 2024 was included in the first quarter ended February 3, 2024.

Therefore, the first six months of fiscal 2024 included an additional week of operations as compared to the first six months of fiscal 2023.

Therefore, the first nine months of fiscal 2024 included an additional week of operations as compared to the first nine months of fiscal 2023.

Note 2 – Shareholders' Equity

As of May 4, 2024, the Company had repurchased a total of approximately 207.0 million shares of its common stock for approximately $ 14.8 billion under the Company's share repurchase program.

As of May 4, 2024, an additional $ 1.8 billion remains available for repurchase of shares under the current authorized program.

As of August 3, 2024, the Company had repurchased a total of approximately 207.4 million shares of its common stock for approximately $ 14.9 billion under the Company's share repurchase program.

As of August 3, 2024, an additional $ 1.7 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 as well as for the Company's employee stock purchase plan.

1 unchanged sentence

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 six months of fiscal 2024.

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 2024.

Foreign currency translation adjustment Unrealized holding gains (losses) on derivatives Pension plans Total

4 unchanged sentences

Other comprehensive income 847 16,752 985 18,584

May 4, 2024 $ ( 71,895 ) $ ( 92,717 ) $ ( 12,589 ) $ ( 177,201 )

August 3, 2024 $ ( 71,697 ) $ ( 85,291 ) $ ( 12,730 ) $ ( 169,718 )

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:

Three Months Ended Six Months Ended

Comprehensive (Loss) Income Component May 4, 2024 April 29, 2023 May 4, 2024 April 29, 2023 Location

Three Months Ended Nine Months Ended

Comprehensive (Loss) Income Component August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Location

Unrealized holding (gains) losses on derivatives:

11 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended Six Months Ended

May 4, 2024 April 29, 2023 May 4, 2024 April 29, 2023

Three Months Ended Nine Months Ended

August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023

Net income $ 392,232 $ 877,019 $ 1,157,201 $ 2,816,149

22 unchanged sentences

Balance at May 4, 2024 $ 21,688 $ 18,023

Employee severance and benefit costs — 4,099

Severance and benefit payments ( 453 ) ( 14,592 )

Balance at August 3, 2024 $ 21,235 $ 7,530

Accrued liabilities $ 16,846 $ 7,530

20 unchanged sentences

Three Months Ended

May 4, 2024 April 29, 2023

August 3, 2024 July 29, 2023

Revenue % of Revenue* Y/Y% Revenue % of Revenue*

4 unchanged sentences

Total revenue $ 2,312,209 100 % ( 25 ) % $ 3,076,495 100 %

Six Months Ended

May 4, 2024 April 29, 2023

Nine Months Ended

August 3, 2024 July 29, 2023

Revenue % of Revenue* Y/Y% Revenue % of Revenue*

13 unchanged sentences

Three Months Ended

May 4, 2024 April 29, 2023

August 3, 2024 July 29, 2023

Channel Revenue % of Revenue* Revenue % of Revenue*

3 unchanged sentences

Total revenue $ 2,312,209 100 % $ 3,076,495 100 %

Six Months Ended

May 4, 2024 April 29, 2023

Nine Months Ended

August 3, 2024 July 29, 2023

Channel Revenue % of Revenue* Revenue % of Revenue*

6 unchanged sentences

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The tables below, set forth by level, present the Company’s financial assets and liabilities, excluding accrued interest components that were accounted for at fair value on a recurring basis as of May 4, 2024 and October 28, 2023.

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 May 4, 2024 and October 28, 2023, the Company held $ 877.4 million and $ 642.1 million, respectively, of cash that is excluded

from the tables below.

As of August 3, 2024 and October 28, 2023, the Company held $ 1,018.8 million and $ 642.1 million, respectively, of cash that is

excluded from the tables below.

August 3, 2024

Fair Value Measurement at

2 unchanged sentences

Significant Other Observable Inputs

Cash equivalents and short-term investments:

Cash equivalents:

Available-for-sale:

1 unchanged sentence

Corporate obligations (1) — 168,422 168,422

Bank obligations (1)

— 298,000 298,000

Short-term investments:

Available-for-sale:

Securities with one year or less to maturity:

Corporate obligations (1) — 139,614 139,614

Bank obligations (1) — 300,053 300,053

Other assets:

8 unchanged sentences

Total liabilities measured at fair value $ — $ 21,901 $ 21,901

(1) The amortized cost of the Company's investments classified as available-for-sale as of May 4, 2024 was $ 950.4 million.

(1) The amortized cost of the Company's investments classified as available-for-sale as of August 3, 2024 was $ 914.6 million.

(2) 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.

(3) The Company has master netting arrangements by counterparty with respect to derivative contracts.

25 unchanged sentences

The table below presents the estimated fair values of certain financial instruments not recorded at fair value on a recurring basis.

Given the short tenure of the Company's commercial paper notes, the carrying value of the outstanding commercial paper notes approximates the fair values, and therefore, are excluded from the table below ($ 548.2 million and $ 547.2 million as of May 4, 2024 and October 28, 2023, respectively).

Given the short tenure of the Company's commercial paper notes, the carrying value of the outstanding commercial paper notes approximates the fair values, and therefore, are excluded from the table below ($ 547.4 million and $ 547.2 million as of August 3, 2024 and October 28, 2023, respectively).

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.

May 4, 2024 October 28, 2023

August 3, 2024 October 28, 2023

Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value

15 unchanged sentences

Note 9 – Derivatives

Foreign Exchange Exposure Management — The total notional amounts of forward foreign currency derivative instruments designated as hedging instruments of cash flow hedges denominated in Euros, British Pounds, Philippine Pesos, Thai Baht, South Korean Won and Japanese Yen as of May 4, 2024 and October 28, 2023 were $ 249.0 million and $ 322.6 million, respectively.

The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s Condensed Consolidated Balance Sheets as of May 4, 2024 and October 28, 2023 were as follows:

Foreign Exchange Exposure Management — The total notional amounts of forward foreign currency derivative instruments designated as hedging instruments of cash flow hedges denominated in Euros, British Pounds, Philippine Pesos, Thai Baht, South Korean Won and Japanese Yen as of August 3, 2024 and October 28, 2023 were $ 262.6 million and $ 322.6 million, respectively.

The fair values of forward foreign currency derivative instruments designated as hedging instruments in the Company’s Condensed Consolidated Balance Sheets as of August 3, 2024 and October 28, 2023 were as follows:

Fair Value At

Balance Sheet Location May 4, 2024 October 28, 2023

Balance Sheet Location August 3, 2024 October 28, 2023

Forward foreign currency exchange contracts Prepaid expenses and other current assets $ 2,488 $ 471

Forward foreign currency exchange contracts Accrued liabilities $ 2,667 $ 9,897

As of May 4, 2024 and October 28, 2023, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $ 242.2 million and $ 334.7 million, respectively.

The fair values of undesignated hedges in the Company’s Condensed Consolidated Balance Sheets as of May 4, 2024 and October 28, 2023 were as follows:

As of August 3, 2024 and October 28, 2023, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $ 167.1 million and $ 334.7 million, respectively.

The fair values of undesignated hedges in the Company’s Condensed Consolidated Balance Sheets as of August 3, 2024 and October 28, 2023 were as follows:

Fair Value At

Balance Sheet Location May 4, 2024 October 28, 2023

Balance Sheet Location August 3, 2024 October 28, 2023

Undesignated hedges related to forward foreign currency exchange contracts

4 unchanged sentences

The gain or loss on the Company's interest rate swap transactions attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows:

August 3, 2024

Balance Sheet Location Loss on Swaps Gain on Note

3 unchanged sentences

Note 10 – Inventories

Inventories at May 4, 2024 and October 28, 2023 were as follows:

May 4, 2024 October 28, 2023

Inventories at August 3, 2024 and October 28, 2023 were as follows:

August 3, 2024 October 28, 2023

Raw materials $ 109,307 $ 128,142

8 unchanged sentences

(1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2034 Notes matured on January 1, 2034) on a semi-annual basis at the applicable treasury rate plus 15 basis points less (b) interest accrued to the date of redemption, and (2) 100 % of the principal amount of the 2034 Notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to the redemption date.

On or after January 1, 2034, the Company may, at its option, redeem the 2034 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100 % of the principal amount of the 2034 Notes being redeemed plus accrued and unpaid interest thereon to the redemption date.

On or after January 1, 2034, the Company may, at its option, redeem the 2034 Notes, in whole or in part, at any time and

from time to time, at a redemption price equal to 100 % of the principal amount of the 2034 Notes being redeemed plus accrued and unpaid interest thereon to the redemption date.

The 2034 Notes are unsecured and rank equally in right of payment with all of the Company’s other existing and future unsecured senior indebtedness.

9 unchanged sentences

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

As of May 4, 2024, the Company was in compliance with these covenants.

As of August 3, 2024, the Company was in compliance with these covenants.

Note 12 – Income Taxes

The Company’s effective tax rates for the three- and six-month periods ended May 4, 2024 and April 29, 2023 were below the U.S.

The Company’s effective tax rates for the three- and nine-month periods ended August 3, 2024 and July 29, 2023 were below the U.S.

statutory tax rate of 21.0 %, due to lower statutory tax rates applicable to the Company's operations in the foreign jurisdictions in which it earns income.

33 unchanged sentences

Note 14 – Subsequent Events

On May 21, 2024, the Board of Directors of the Company declared a cash dividend of $ 0.92 per outstanding share of common stock.

The dividend will be paid on June 17, 2024 to all shareholders of record at the close of business on June 4, 2024 and is expected to total approximately $ 456.5 million.

On August 20, 2024, the Board of Directors of the Company declared a cash dividend of $ 0.92 per outstanding share of common stock.

The dividend will be paid on September 17, 2024 to all shareholders of record at the close of business on September 3, 2024 and is expected to total approximately $ 456.8 million.

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 1. Financial Statements