3 unchanged sentences
In this regard, changes in interest rates affect the interest earned or paid on our marketable securities and debt, as well as the fair value of our investments and debt.
−Removed: Based on our floating rate debt outstanding as of October 28, 2023 and October 29, 2022, inclusive of our commercial paper notes and interest rate swap outstanding, as applicable, our annual interest expense would change by approximately $20.5 million and $5.0 million, respectively, for each 100 basis point increase in interest rates.
−Removed: Based on our cash and marketable securities outstanding as of October 28, 2023 and October 29, 2022, our annual interest income would change by approximately $9.6 million and $14.7 million, respectively, for each 100 basis point increase in interest rates.
+Added: Based on our floating rate debt outstanding as of November 2, 2024 and October 28, 2023, inclusive of our commercial paper notes and interest rate swap outstanding, as applicable, our annual interest expense would change by approximately $15.5 million and $20.5 million, respectively, for each 100 basis point increase in interest rates.
+Added: Based on our cash and marketable securities outstanding as of November 2, 2024 and October 28, 2023, our annual interest income would change by approximately $19.9 million and $9.6 million, respectively, for each 100 basis point increase in interest rates.
To provide a meaningful assessment of the interest rate risk associated with our investment portfolio, we performed a sensitivity analysis to determine the impact a change in interest rates would have on the value of our investment portfolio assuming an immediate 100 basis point parallel shift in the yield curve.
−Removed: Based on investment positions as of October 28, 2023 and October 29, 2022, a hypothetical 100 basis point increase in interest rates across all maturities would not materially impact the fair market value of the portfolio in either period.
+Added: Based on investment positions as of November 2, 2024 and October 28, 2023, a hypothetical 100 basis point increase in interest rates across all maturities would not materially impact the fair market value of the portfolio in either period.
If significant, such losses would only be realized if we sold the investments prior to maturity.
−Removed: As of October 28, 2023 we had $1.0 billion notional of fixed for floating interest rate swaps outstanding, with the swap payable having a fair value of $81.6 million.
+Added: As of November 2, 2024 we had $1.0 billion notional of fixed for floating interest rate swaps outstanding, with the swap payable having a fair value of $36.9 million.
A hypothetical 100 basis point increase in interest rates would increase the swap payable by approximately $54.0 million with a corresponding adjustment to the carrying value of the related debt.
−Removed: As of October 28, 2023, we had $6.5 billion in principal amount of senior unsecured notes outstanding, with a fair value of $5.3 billion.
+Added: As of November 2, 2024, we had $7.1 billion in principal amount of senior unsecured notes outstanding, with a fair value of $6.3 billion.
We also had $547.7 million of commercial paper notes outstanding.
2 unchanged sentences
Generally, the fair value of our notes will increase as interest rates fall and decrease as interest rates rise.
−Removed: The fair values of our notes as of October 28, 2023 and October 29, 2022, assuming a hypothetical 100 basis point increase in market interest rates, are as follows:
−Removed: October 28, 2023 October 29, 2022
+Added: The fair values of our notes as of November 2, 2024 and October 28, 2023, assuming a hypothetical 100 basis point increase in market interest rates, are as follows:
+Added: November 2, 2024 October 28, 2023
(thousands) Principal Amount Outstanding Fair Value Fair Value given an increase in interest rates of 100 basis points Principal Amount Outstanding Fair Value Fair Value given an increase in interest rates of 100 basis points
4 unchanged sentences
2026 Notes, due December 2026 900,000 882,795 865,439 900,000 851,023 826,888
−Removed: Maxim Notes, due June 2027
−Removed: — — — 59,788 54,771 52,534
2027 Notes, due June 2027 440,212 421,077 410,868 440,212 408,595 395,208
2 unchanged sentences
2032 Notes, due October 2032 300,000 287,172 268,903 300,000 269,828 251,153
+Added: 2034 Notes, due April 2034 550,000 553,375 514,043 — — —
2036 Notes, due December 2036 144,278 136,718 124,895 144,278 118,554 108,085
2 unchanged sentences
2051 Notes, due October 2051 1,000,000 655,668 560,843 1,000,000 590,666 507,297
+Added: 2054 Notes, due April 2054 550,000 541,912 470,255 — — —
Foreign Currency Exposure
3 unchanged sentences
Currently, our largest foreign currency exposure is the Euro, primarily because our European operations have the highest proportion of our local currency denominated expenses.
−Removed: Relative to the net unhedged foreign currency exposures existing at October 28, 2023 and October 29, 2022, an immediate 10% unfavorable movement in foreign currency exchange rates would result in approximately $66.5 million of losses and $69.5 million of losses, respectively, in changes in earnings or cash flows over the course of the year.
+Added: Relative to the net unhedged foreign currency exposures existing at November 2, 2024 and October 28, 2023, an immediate 10% unfavorable movement in foreign currency exchange rates would result in approximately $32.2 million of losses and $66.5 million of losses, respectively, in changes in earnings or cash flows over the course of the year.
The market risk associated with our derivative instruments results from currency exchange rates that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged.
The counterparties to the agreements relating to our foreign exchange instruments consist of a number of major international financial institutions with high credit ratings.
−Removed: Based on the credit ratings of our counterparties as of October 28, 2023, we do not believe that there is significant risk of nonperformance by them.
+Added: Based on the credit ratings of our counterparties as of November 2, 2024, we do not believe that there is significant risk of nonperformance by them.
While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of our exposure to credit risk.
1 unchanged sentence
The following table illustrates the effect that an immediate 10% unfavorable or favorable movement in foreign currency exchange rates, relative to the U.S.
−Removed: dollar, would have on the fair value of our forward exchange contracts as of October 28, 2023 and October 29, 2022:
−Removed: October 28, 2023 October 29, 2022
+Added: dollar, would have on the fair value of our forward exchange contracts as of November 2, 2024 and October 28, 2023:
+Added: November 2, 2024 October 28, 2023
Fair value of forward exchange contracts $ (8,961) $ (11,575)
8 unchanged sentences
We have audited the accompanying consolidated balance sheets of Analog Devices, Inc.
−Removed: (the Company) as of October 28, 2023 and October 29, 2022, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended October 28, 2023, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
−Removed: In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at October 28, 2023 and October 29, 2022, and the results of its operations and its cash flows for each of the three years in the period ended October 28, 2023, in conformity with U.S.
+Added: (the Company) as of November 2, 2024 and October 28, 2023, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended November 2, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).
+Added: In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 2, 2024 and October 28, 2023, and the results of its operations and its cash flows for each of the three years in the period ended November 2, 2024, in conformity with U.S.
generally accepted accounting principles.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 28, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated November 21, 2023 expressed an unqualified opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of November 2, 2024, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated November 26, 2024 expressed an unqualified opinion thereon.
Basis for Opinion
15 unchanged sentences
Description of the Matter As described in Note 2n to the consolidated financial statements, the Company’s sales contracts provide certain distributors with credits for price protection and rights of return, which results in variable consideration.
−Removed: During 2023, sales to distributors were $7.5 billion net of expected price protection credits and rights of return for which the liability balance as of October 28, 2023 was $525.4 million, of which the vast majority relates to the price protection credits.
+Added: During 2024, sales to distributors were $5.5 billion net of expected price protection credits and rights of return for which the liability balance as of November 2, 2024 was $508.7 million, of which the vast majority relates to the price protection credits.
Auditing the Company’s measurement for price protection credits under distributor contracts involved especially challenging judgment because the calculation involves subjective management assumptions about estimates of expected price protection credits.
12 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.