adi-20220129

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 January 29, 2022


☐			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,

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 class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.16 2/3 par value per share	ADI	Nasdaq 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 January 29, 2022 there were 523,315,130 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 Ended
	January 29, 2022		January 30, 2021
Revenue	$	2,684,293	$	1,558,458
Cost of sales	1,282,296		513,087
Gross margin	1,401,997		1,045,371
Operating expenses:
Research and development	426,780		288,150
Selling, marketing, general and administrative	297,365		185,275
Amortization of intangibles	253,367		107,648
Special charges, net	59,728		438
Total operating expenses	1,037,240		581,511
Operating income:	364,757		463,860
Nonoperating expense (income):
Interest expense	51,964		42,479
Interest income	(218)		(209)
Other, net	(10,544)		(15,028)
Total nonoperating expense (income)	41,202		27,242
Income before income taxes	323,555		436,618
Provision for income taxes	43,478		48,099
Net income	$	280,077	$	388,519

Shares used to compute earnings per common share – basic	525,291		369,203
Shares used to compute earnings per common share – diluted	530,142		373,106

Basic earnings per common share	$	0.53	$	1.05
Diluted earnings per common share	$	0.53	$	1.04

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)


	Three Months Ended
	January 29, 2022		January 30, 2021
Net income	$	280,077	$	388,519
Foreign currency translation adjustments	(4,603)		8,279

Change in fair value of derivative instruments designated as cash flow hedges (net of taxes of $506 and $6,661, respectively)	1,046		24,465
Changes in pension plans, net actuarial loss and foreign currency translation adjustments (net of taxes of $96 and $86, respectively)	1,504		(1,784)
Other comprehensive (loss) income	(2,053)		30,960
Comprehensive income	$	278,024	$	419,479

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)


	January 29, 2022		October 30, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	1,790,399	$	1,977,964

Accounts receivable	1,636,928		1,459,056
Inventories	972,571		1,200,610



Prepaid expenses and other current assets	236,797		740,687
Total current assets	4,636,695		5,378,317
Non-current Assets

Net property, plant and equipment	2,037,290		1,979,051
Goodwill	26,940,594		26,918,470
Intangible assets, net	14,762,722		15,267,170
Deferred tax assets	2,317,301		2,267,269

Other assets	521,012		511,794
Total non-current assets	46,578,919		46,943,754
TOTAL ASSETS	$	51,215,614	$	52,322,071
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	436,227	$	443,434


Income taxes payable	400,420		332,685
Debt, current	—		516,663

Accrued liabilities	1,385,259		1,477,530
Total current liabilities	2,221,906		2,770,312
Non-current Liabilities
Long-term debt	6,253,575		6,253,212
Deferred income taxes	3,952,185		3,938,830

Income taxes payable	832,204		811,337

Other non-current liabilities	528,432		555,838
Total non-current liabilities	11,566,396		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, 523,315,130 shares outstanding (525,330,672 on October 30, 2021)	87,221		87,554
Capital in excess of par value	30,093,961		30,574,237
Retained earnings	7,434,748		7,517,316
Accumulated other comprehensive loss	(188,618)		(186,565)
Total shareholders’ equity	37,427,312		37,992,542
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	51,215,614	$	52,322,071

See accompanying notes.

ANALOG DEVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands)


	Three Months Ended January 29, 2022
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss








BALANCE, OCTOBER 30, 2021	525,331	$	87,554	$	30,574,237	$	7,517,316	$	(186,565)

Net income						280,077
Dividends declared and paid - $0.69 per share						(362,645)

Issuance of stock under stock plans and other	579	100		8,371
Stock-based compensation expense				86,939
Other comprehensive loss								(2,053)
Common stock repurchased	(2,595)	(433)		(575,586)
BALANCE, JANUARY 29, 2022	523,315	$	87,221	$	30,093,961	$	7,434,748	$	(188,618)


	Three Months Ended January 30, 2021
				Capital in				Accumulated Other
	Common Stock			Excess of		Retained		Comprehensive
	Shares	Amount		Par Value		Earnings		Loss







BALANCE, OCTOBER 31, 2020	369,485	$	61,582	$	4,949,586	$	7,236,238	$	(249,461)

Net income						388,519
Dividends declared and paid - $0.62 per share						(229,179)

SEC Form 10-Q filed by Analog Devices Inc.