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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 May 1, 2021
OR
☐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,MA 01887
(Address of principal executive offices) (Zip Code)
(781) 329-4700
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock $0.16 2/3 par value per shareADINasdaq 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 May 1, 2021 there were 368,826,918 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 EndedSix Months Ended
 May 1, 2021May 2, 2020May 1, 2021May 2, 2020
Revenue$1,661,407 $1,317,060 $3,219,865 $2,620,625 
Cost of sales524,770 470,386 1,037,857 925,809 
Gross margin1,136,637 846,674 2,182,008 1,694,816 
Operating expenses:
Research and development302,238 252,413 590,388 509,486 
Selling, marketing, general and administrative206,612 141,775 391,887 341,055 
Amortization of intangibles107,786 107,146 215,434 214,371 
Special charges311 1,320 749 12,456 
616,947 502,654 1,198,458 1,077,368 
Operating income:519,690 344,020 983,550 617,448 
Nonoperating expense (income):
Interest expense43,066 49,985 85,545 98,798 
Interest income(290)(1,334)(499)(3,274)
Other, net929 308 (14,099)646 
43,705 48,959 70,947 96,170 
Income before income taxes475,985 295,061 912,603 521,278 
Provision for income taxes53,080 27,365 101,179 49,708 
Net income$422,905 $267,696 $811,424 $471,570 
Shares used to compute earnings per common share – basic368,823 368,217 369,013 368,229 
Shares used to compute earnings per common share – diluted372,418 371,305 372,762 371,784 
Basic earnings per common share$1.15 $0.73 $2.20 $1.28 
Diluted earnings per common share$1.14 $0.72 $2.18 $1.27 

See accompanying notes.
1



ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

Three Months EndedSix Months Ended
May 1, 2021May 2, 2020May 1, 2021May 2, 2020
Net income$422,905 $267,696 $811,424 $471,570 
Foreign currency translation adjustments(254)(6,862)8,025 (7,060)
Change in fair value of derivative instruments designated as cash flow hedges (net of taxes of $10,448, $19,604, $17,109 and $25,066, respectively)
35,428 (69,386)59,893 (81,411)
Changes in pension plans, net actuarial loss and foreign currency translation adjustments (net of taxes of $86, $157, $172 and $317, respectively)
412 1,393 (1,372)1,647 
Other comprehensive income (loss)35,586 (74,855)66,546 (86,824)
Comprehensive income$458,491 $192,841 $877,970 $384,746 


See accompanying notes.


2

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)

May 1, 2021October 31, 2020
ASSETS  
Current Assets
Cash and cash equivalents$1,305,216 $1,055,860 
Accounts receivable814,135 737,536 
Inventories641,202 608,260 
Prepaid expenses and other current assets142,247 116,032 
Total current assets2,902,800 2,517,688 
Property, Plant and Equipment, at Cost
Land and buildings984,879 974,604 
Machinery and equipment2,779,023 2,667,846 
Office equipment89,381 85,291 
Leasehold improvements161,132 157,915 
 4,014,415 3,885,656 
Less accumulated depreciation and amortization2,853,829 2,765,095 
Net property, plant and equipment1,160,586 1,120,561 
Other Assets
Other investments94,033 86,729 
Goodwill12,282,465 12,278,425 
Intangible assets, net3,393,546 3,650,280 
Deferred tax assets1,448,018 1,503,064 
Other assets306,769 311,856 
Total other assets17,524,831 17,830,354 
 $21,588,217 $21,468,603 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable$279,222 $227,273 
Income taxes payable171,181 182,080 
Debt, current1,324,451 — 
Accrued liabilities1,001,975 955,633 
Total current liabilities2,776,829 1,364,986 
Non-current liabilities
Long-term debt3,823,595 5,145,102 
Deferred income taxes1,833,520 1,919,595 
Income taxes payable528,884 591,780 
Other non-current liabilities458,285 449,195 
Total non-current liabilities6,644,284 8,105,672 
Commitments and contingencies— — 
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, 368,826,918 shares outstanding (369,484,899 on October 31, 2020)
61,472 61,582 
Capital in excess of par value4,724,493 4,949,586 
Retained earnings7,564,054 7,236,238 
Accumulated other comprehensive loss(182,915)(249,461)
Total shareholders’ equity12,167,104 11,997,945 
 $21,588,217 $21,468,603 
See accompanying notes.
3

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)

Three Months Ended May 1, 2021
Capital inAccumulated
Other
 Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, JANUARY 30, 2021
368,894 $61,484 $4,849,185 $7,395,578 $(218,501)
Net income422,905 
Dividends declared and paid - $0.69 per share
(254,429)
Issuance of stock under stock plans and other1,155 192 23,560 
Stock-based compensation expense40,358 
Other comprehensive income35,586 
Common stock repurchased(1,222)(204)(188,610)
BALANCE, MAY 1, 2021
368,827 $61,472 $4,724,493 $7,564,054 $(182,915)
Six Months Ended May 1, 2021
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 31, 2020
369,485 $61,582 $4,949,586 $7,236,238 $(249,461)
Net income811,424 
Dividends declared and paid - $1.31 per share
(483,608)
Issuance of stock under stock plans and other1,644 274 43,398 
Stock-based compensation expense76,996 
Other comprehensive income66,546 
Common stock repurchased(2,302)(384)(345,487)
BALANCE, MAY 1, 2021
368,827 $61,472 $4,724,493 $7,564,054 $(182,915)

See accompanying notes.

4

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)

Three Months Ended May 2, 2020
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, FEBRUARY 1, 2020368,220 $61,371 $4,923,947 $6,906,346 $(202,147)
Net income267,696 
Dividends declared and paid - $0.62 per share
(228,600)
Issuance of stock under stock plans and other1,347 224 14,560 
Stock-based compensation expense35,900 
Other comprehensive loss(74,855)
Common stock repurchased(1,142)(190)(113,394)
BALANCE, MAY 2, 2020
368,425 $61,405 $4,861,013 $6,945,442 $(277,002)
Six Months Ended May 2, 2020
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, NOVEMBER 2, 2019368,302 $61,385 $4,936,349 $6,899,253 $(187,799)
Effect of Accounting Standards Update 2018-022,379 (2,379)
Net income471,570 
Dividends declared and paid - $1.16 per share
(427,760)
Issuance of stock as charitable contribution336 56 39,944 
Issuance of stock under stock plans and other1,838 306 30,591 
Stock-based compensation expense73,401 
Other comprehensive loss(86,824)
Common stock repurchased(2,051)(342)(219,272)
BALANCE, MAY 2, 2020
368,425 $61,405 $4,861,013 $6,945,442 $(277,002)

See accompanying notes.
5


ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

  
Six Months Ended
 May 1, 2021May 2, 2020
Cash flows from operating activities:
Net income$811,424 $471,570 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation108,775 119,124 
Amortization of intangibles290,745 288,120 
Stock-based compensation expense76,996 73,401 
Deferred income taxes(48,292)(35,390)
Non-cash contribution to charitable foundation— 40,000 
Other non-cash activity(12,122)3,801 
Changes in operating assets and liabilities(63,223)(181,937)
Total adjustments352,879 307,119 
Net cash provided by operating activities1,164,303 778,689 
Cash flows from investing activities:
Proceeds from other investments18,566 — 
Additions to property, plant and equipment(126,558)(115,000)
Cash paid for asset acquisition(22,522)— 
Payments for acquisitions, net of cash acquired(2,428)— 
Changes in other assets(2,826)(1,284)
Net cash used for investing activities(135,768)(116,284)
Cash flows from financing activities:
Proceeds from debt— 395,646 
Proceeds from revolver— 350,000 
Payments on revolver— (350,000)
Debt repayments— (300,000)
Dividend payments to shareholders(483,608)(427,760)
Repurchase of common stock(345,871)(219,614)
Proceeds from employee stock plans43,672 30,897 
Changes in other financing activities2,399 (4,451)
Net cash used for financing activities(783,408)(525,282)
Effect of exchange rate changes on cash4,229 (508)
Net increase in cash and cash equivalents249,356 136,615 
Cash and cash equivalents at beginning of period1,055,860 648,322 
Cash and cash equivalents at end of period$1,305,216 $784,937 

See accompanying notes.
6

ANALOG DEVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED MAY 1, 2021 (UNAUDITED)
(all tabular amounts in thousands except per share amounts and percentages)

Note 1 – Basis of Presentation
In the opinion of management, the information furnished in the accompanying condensed consolidated financial statements reflects all normal recurring adjustments that are necessary to fairly state the results for these interim periods and should be read in conjunction with Analog Devices, Inc.’s (the Company) Annual Report on Form 10-K for the fiscal year ended October 31, 2020 (fiscal 2020) and related notes. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for the fiscal year ending October 30, 2021 (fiscal 2021) or any future period.
The Company has a 52-53 week fiscal year that ends on the Saturday closest to the last day in October. Certain amounts reported in previous periods have been reclassified to conform to the fiscal 2021 presentation.
Proposed acquisition of Maxim Integrated Products, Inc.
On July 12, 2020, the Company entered into a definitive agreement (the Merger Agreement) to acquire Maxim Integrated Products, Inc. (Maxim), an independent manufacturer of innovative analog and mixed-signal products and technologies. See Note 13, Acquisitions, for additional information.
Note 2 – Stock-Based Compensation and Shareholders' Equity
A summary of the Company’s stock option activity as of May 1, 2021 and changes during the six-month period then ended is presented below:
Options
Outstanding
(in thousands)
Weighted-
Average Exercise
Price Per Share
Weighted-
Average
Remaining
Contractual
Term in Years
Aggregate
Intrinsic
Value
Options outstanding at October 31, 20204,192 $70.73 
Options granted644 $145.04 
Options exercised(695)$62.80 
Options forfeited(30)$86.47 
Options expired(6)$40.70
Options outstanding at May 1, 20214,105 $83.66 5.9$285,319 
Options exercisable at May 1, 20212,673 $65.99 4.6$233,013 
Options vested or expected to vest at May 1, 2021 (1)3,985 $82.43 5.8$281,816 
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.
In the first quarter of fiscal 2021, the Company issued a special performance stock option award to the Company's chief executive officer. The performance stock option award is exercisable for up to 460,000 shares of the Company's common stock (the Target Number of Shares) at an exercise price per share of $144.06, which was the closing price of the Company's common stock on the date of grant, and vests subject to the satisfaction of certain target stock price thresholds during a five-year period, measured on the basis of the average of the closing prices of the Company's common stock over 70 consecutive trading days. The actual number of shares that will become exercisable will range from 0% to a maximum of 100% of the Target Number of Shares based on the attainment of such target stock price thresholds at any time during a five-year period from December 15, 2020 to December 15, 2025. The grant date fair value of the award was calculated using the Monte Carlo simulation model which utilizes multiple input variables that determine the probability of satisfying the performance conditions stipulated in the award to calculate the fair market value. The Monte Carlo simulation model also uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions, including the possibility that the market condition may not be satisfied, and the resulting fair value of the award.
7

During the six-month periods ended May 1, 2021 and May 2, 2020, the total intrinsic value of options exercised (i.e., the difference between the market price at exercise and the price paid by the employee to exercise the options) was $61.0 million and $35.3 million, respectively.
A summary of the Company’s restricted stock unit/award activity as of May 1, 2021 and changes during the six-month period then ended is presented below: 
Restricted
Stock Units/Awards
Outstanding
(in thousands)
Weighted-
Average Grant-
Date Fair Value
Per Share
Restricted stock units/awards outstanding at October 31, 20203,637 $91.54 
Units/Awards granted1,011 $143.71 
Restrictions lapsed(945)$90.21 
Forfeited(100)$99.51 
Restricted stock units/awards outstanding at May 1, 20213,603 $104.18 
In the first half of fiscal 2021, the Company issued approximately 121,000 performance-based restricted stock units (Maxim Integration PRSUs) related to the Company's planned acquisition of Maxim to a select group of employees. The number of Maxim Integration PRSUs that may be earned will range from 0% to a maximum of 200% of the issued amount of Maxim Integration PRSUs and will be determined according to the achievement of certain performance metrics. Any shares earned will vest on the 60th day following the two-year anniversary of the closing of the Maxim acquisition. If the Maxim acquisition does not close, the awards will be cancelled. The grant date fair value of these awards were calculated using the value of the Company's common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company's common stock prior to vesting. The grant-date fair value of these awards is also impacted by the number of units that are expected to vest during the performance period and is adjusted through the related stock-based compensation expense at each reporting period based on the probability of achievement of that performance condition.

As of May 1, 2021, there was $382.2 million of total unrecognized compensation cost related to unvested stock-based awards comprised of stock options and restricted stock units/awards. That cost is expected to be recognized over a weighted-average period of 1.5 years. The total grant-date fair values of awards that vested during the six-month periods ended May 1, 2021 and May 2, 2020 were approximately $94.2 million and $113.4 million, respectively.

Total stock-based compensation expense recognized was as follows:
Three Months EndedSix Months Ended
May 1, 2021May 2, 2020May 1, 2021May 2, 2020
Cost of sales$4,653 $4,356 $9,007 $8,920 
Research and development19,548 18,400 37,869 36,005 
Selling, marketing, general and administrative16,157 13,144 30,120 28,476 
Total stock-based compensation expense$40,358 $35,900 $76,996 $73,401 

As of May 1, 2021 and October 31, 2020, the Company capitalized $6.0 million and $5.8 million, respectively, of stock-based compensation in Inventories on the Condensed Consolidated Balance Sheets.
Common Stock Repurchases
As of May 1, 2021, the Company had repurchased a total of approximately 158.0 million shares of its common stock for approximately $6.6 billion under the Company's share repurchase program. As of May 1, 2021, an additional $1.6 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. Future repurchases of common stock will be dependent upon the Company's financial position, results of operations, outlook, liquidity, and other factors deemed relevant by the Company.
8

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 2021.
Foreign currency translation adjustmentUnrealized holding gains (losses) on derivativesPension plansTotal
October 31, 2020$(26,852)$(172,670)$(49,939)$(249,461)
Other comprehensive income (loss) before reclassifications8,025 83,103 (2,698)88,430 
Amounts reclassified out of other comprehensive income (loss)— (6,101)1,498 (4,603)
Tax effects— (17,109)(172)(17,281)
Other comprehensive income (loss) 8,025 59,893 (1,372)66,546 
May 1, 2021$(18,827)$(112,777)$(51,311)$(182,915)
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 EndedSix Months Ended
Comprehensive Income ComponentMay 1, 2021May 2, 2020May 1, 2021May 2, 2020Location
Unrealized holding losses (gains) on derivatives
Currency forwards $(1,363)$160 $(3,350)$80 Cost of sales
(791)488 (1,855)866 Research and development
(606)552 (1,824)1,084 Selling, marketing, general and administrative
Interest rate derivatives464 464 928 928 Interest expense
(2,296)1,664 (6,101)2,958 Total before tax
329 (197)533 (567)Tax
Effect of Accounting Standards Update 2018-02
— — — (2,379)Retained earnings
$(1,967)$1,467 $(5,568)$12 Net of tax
Amortization of pension components included in the computation of net periodic pension cost
     Actuarial losses750 634 1,498 1,282 
(86)(157)(172)(317)Tax
$664 $477 $1,326 $965 Net of tax
Total amounts reclassified out of AOCI, net of tax$(1,303)$1,944 $(4,242)$977 

Realized gains or losses on investments are determined based on the specific identification basis and are recognized in nonoperating expense (income). There were no material net realized gains or losses from the sales of available-for-sale investments during any of the fiscal periods presented.
9

Note 4 – Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
 Three Months EndedSix Months Ended
 May 1, 2021May 2, 2020May 1, 2021May 2, 2020
Net Income$422,905 $267,696 $811,424 $471,570 
Basic shares:
Weighted-average shares outstanding368,823 368,217 369,013 368,229 
Earnings per common share basic:$1.15 $0.73 $2.20 $1.28 
Diluted shares:
Weighted-average shares outstanding368,823 368,217 369,013 368,229 
Assumed exercise of common stock equivalents3,595 3,088 3,749 3,555 
Weighted-average common and common equivalent shares372,418 371,305 372,762 371,784 
Earnings per common share diluted:$1.14 $0.72 $2.18 $1.27 
Anti-dilutive shares related to:
Outstanding stock-based awards622 681 430 539 

Note 5 – Special Charges
The following table is a quarterly roll-forward from October 31, 2020 to May 1, 2021 of the employee separation and exit cost accruals established related to existing restructuring actions:
Accrued RestructuringClosure of Manufacturing Facilities Repositioning ActionOther Actions
Balance at October 31, 2020$45,176 $20,774 $3,489 
First quarter fiscal 2021 special charges438 — — 
Severance and other payments(1,950)(8,128)(333)
Effect of foreign currency on accrual— 248 — 
Balance at January 30, 2021$43,664 $12,894 $3,156 
Second quarter fiscal 2021 special charges311 — — 
Severance and other payments(5,769)(2,767)(270)
Effect of foreign currency on accrual— (44)— 
Balance at May 1, 2021$38,206 $10,083 $2,886 
Current - accrued liabilities$36,440 $10,083 $2,886 
Other non-current liabilities$1,766 $— $— 
Repositioning Action
The Company recorded special charges of $137.5 million on a cumulative basis through May 1, 2021, as a result of organizational initiatives to better align the global workforce with the Company's long-term strategic plan. Approximately $123.3 million of the total charges was for severance and fringe benefit costs in accordance with either the Company's ongoing benefit plan or statutory requirements for the impacted manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees. The remaining $14.2 million of the charges were recorded in the fiscal year ended November 2, 2019 (fiscal 2019) and related to the write-off of acquired intellectual property due to the Company's decision to discontinue certain product development strategies.
10

Closure of Manufacturing Facilities
The Company recorded special charges of $55.7 million on a cumulative basis through May 1, 2021 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation (Linear). The Company plans to close its Hillview wafer fabrication facility located in Milpitas, California in fiscal 2021 and complete the transition from its Singapore test facility in the fiscal year ending October 29, 2022. The Company intends to transfer Hillview wafer fabrication production to its other internal facilities and to external foundries. In addition, the Company is planning to transition testing operations currently handled in its Singapore facility to its facilities in Penang, Malaysia and the Philippines, and also to its outsourced assembly and test partners. The special charges include severance and fringe benefit costs, in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations, one-time termination benefits for the impacted manufacturing, engineering and SMG&A employees and other exit costs. These one-time termination benefits are being recognized over the future service period required for employees to earn these benefits. 
Note 6 – Property, Plant and Equipment
As discussed in Note 5, Special Charges, the Company is planning to transition testing operations currently handled in its Singapore facility to its facilities in Penang, Malaysia and the Philippines, in addition to its outsourced assembly and test partners. Accordingly, management has entered into an agreement to sell the facility in Singapore at the end of May 2021 and has determined that this facility and certain equipment therein have met the held for sale criteria as specified in ASC 360. No write-down to fair value was required upon this designation during fiscal 2020, as the fair value of the asset group, less costs to sell, was greater than its carrying value. As shown below, this carrying value was reclassified from various line items within Property, plant and equipment to Prepaid expenses and other current assets upon designation and remains in Prepaid expenses and other current assets as of May 1, 2021.
Land and buildings$36,451 
Machinery and equipment1,468 
Office equipment197 
Leasehold improvements5,744 
43,860 
Less accumulated depreciation and amortization(21,706)
Net property, plant and equipment reclassified to Prepaid expenses and other current assets$22,154 

Note 7 – Segment Information
The Company designs, develops, manufactures and markets a broad range of integrated circuits. The Company operates and tracks its results in one reportable segment based on the aggregation of eight operating segments.
Revenue Trends by End Market
The following table summarizes revenue by end market. The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which the Company’s product will be incorporated. As data systems for capturing and tracking this data and the Company's methodology evolves and improves, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies 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.
Three Months Ended
 May 1, 2021May 2, 2020
 Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$972,177 59 %36 %$716,364 54 %
Communications276,960 17 %— %276,575 21 %
Automotive257,586 16 %42 %181,211 14 %
Consumer154,684 9 %8 %142,910 11 %
Total revenue$1,661,407 100 %26 %$1,317,060 100 %

11

Six Months Ended
 May 1, 2021May 2, 2020
 Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$1,828,140 57 %30 %$1,405,224 54 %
Communications557,786 17 %8 %517,872 20 %
Automotive503,501 16 %30 %386,618 15 %
Consumer330,438 10 %6 %310,911 12 %
Total revenue$3,219,865 100 %23 %$2,620,625 100 %
* The sum of the individual percentages may not equal the total due to rounding.
Revenue by Sales Channel
The following table summarizes revenue by channel. The Company sells its products globally through a direct sales force, third party distributors, independent sales representatives and via its website. Distributors are customers that buy products with the intention of reselling them. Direct customers are non-distributor customers and consist primarily of original equipment manufacturers (OEMs). Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time.
Three Months Ended
May 1, 2021May 2, 2020
ChannelRevenue% of Revenue*Revenue% of Revenue*
   Distributors$1,092,928 66 %$750,388 57 %
   Direct customers546,555 33 %546,051 41 %
   Other21,924 1 %20,621 2 %
Total revenue$1,661,407 100 %$1,317,060 100 %
Six Months Ended
May 1, 2021May 2, 2020
ChannelRevenue% of Revenue*Revenue% of Revenue*
Distributors$2,039,314 63 %$1,497,949 57 %
Direct customers1,136,011 35 %1,077,382 41 %
Other44,540 1 %45,294 2 %
Total revenue$3,219,865 100 %$2,620,625 100 %
* The sum of the individual percentages may not equal the total due to rounding.

Note 8 – Fair Value
The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.
12

The tables below, set forth by level, presents 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 1, 2021 and October 31, 2020. 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 1, 2021 and October 31, 2020, the Company held $