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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 April 29, 2023
    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) 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 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 April 29, 2023 there were 501,418,304 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
 April 29, 2023April 30, 2022April 29, 2023April 30, 2022
Revenue$3,262,930 $2,972,064 $6,512,560 $5,656,357 
Cost of sales1,118,384 1,027,544 2,243,673 2,309,840 
Gross margin2,144,546 1,944,520 4,268,887 3,346,517 
Operating expenses:
Research and development415,754 420,901 829,849 847,681 
Selling, marketing, general and administrative324,251 305,308 650,535 602,673 
Amortization of intangibles253,021 253,476 506,163 506,843 
Special charges, net23,136 46,674 23,136 106,402 
Total operating expenses1,016,162 1,026,359 2,009,683 2,063,599 
Operating income:1,128,384 918,161 2,259,204 1,282,918 
Nonoperating expense (income):
Interest expense63,252 49,548 123,705 101,512 
Interest income(12,575)(563)(23,404)(781)
Other, net(10,216)(10,069)(2,493)(20,613)
Total nonoperating expense (income)40,461 38,916 97,808 80,118 
Income before income taxes1,087,923 879,245 2,161,396 1,202,800 
Provision for income taxes110,267 95,972 222,266 139,450 
Net income$977,656 $783,273 $1,939,130 $1,063,350 
Shares used to compute earnings per common share – basic504,715 522,370 505,918 523,831 
Shares used to compute earnings per common share – diluted508,725 526,264 509,955 528,203 
Basic earnings per common share$1.94 $1.50 $3.83 $2.03 
Diluted earnings per common share$1.92 $1.49 $3.80 $2.01 






See accompanying notes.
1



ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)
Three Months EndedSix Months Ended
April 29, 2023April 30, 2022April 29, 2023April 30, 2022
Net income$977,656 $783,273 $1,939,130 $1,063,350 
Foreign currency translation adjustments(864)(17,868)1,635 (22,472)
Change in fair value of derivative instruments designated as cash flow hedges, net(2,109)(3,757)23,358 (2,710)
Changes in pension plans, net actuarial gain/loss and foreign currency translation adjustments, net344 2,628 796 4,132 
Other comprehensive (loss) income(2,629)(18,997)25,789 (21,050)
Comprehensive income$975,027 $764,276 $1,964,919 $1,042,300 





















See accompanying notes.
2

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

April 29, 2023October 29, 2022
ASSETS  
Current Assets
Cash and cash equivalents$1,177,609 $1,470,572 
Accounts receivable1,616,256 1,800,462 
Inventories1,648,136 1,399,914 
Prepaid expenses and other current assets302,919 267,044 
Total current assets4,744,920 4,937,992 
Non-current Assets
Net property, plant and equipment2,742,016 2,401,304 
Goodwill26,913,134 26,913,134 
Intangible assets, net12,261,693 13,265,406 
Deferred tax assets2,248,858 2,264,888 
Other assets634,118 519,626 
Total non-current assets44,799,819 45,364,358 
TOTAL ASSETS$49,544,739 $50,302,350 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable$569,002 $582,160 
Income taxes payable308,968 265,845 
Commercial paper notes253,635 — 
Accrued liabilities1,514,805 1,594,650 
Total current liabilities2,646,410 2,442,655 
Non-current Liabilities
Long-term debt6,475,646 6,548,625 
Deferred income taxes3,325,350 3,622,538 
Income taxes payable523,653 707,846 
Other non-current liabilities560,456 515,363 
Total non-current liabilities10,885,105 11,394,372 
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, 501,418,304 shares outstanding (509,295,941 on October 29, 2022)
83,571 84,880 
Capital in excess of par value26,262,226 27,857,270 
Retained earnings9,839,790 8,721,325 
Accumulated other comprehensive loss(172,363)(198,152)
Total shareholders’ equity36,013,224 36,465,323 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$49,544,739 $50,302,350 







See accompanying notes.
3

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

Three Months Ended April 29, 2023
Capital inAccumulated
Other
 Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, JANUARY 28, 2023
505,852 $84,306 $27,319,566 $9,297,347 $(169,734)
Net income977,656 
Dividends declared and paid - $0.86 per share
(435,213)
Issuance of stock under stock plans and other1,764 294 25,480 
Stock-based compensation expense69,102 
Other comprehensive loss(2,629)
Common stock repurchased(6,198)(1,029)(1,151,922)
BALANCE, APRIL 29, 2023
501,418 $83,571 $26,262,226 $9,839,790 $(172,363)
Six Months Ended April 29, 2023
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 29, 2022
509,296 $84,880 $27,857,270 $8,721,325 $(198,152)
Net income1,939,130 
Dividends declared and paid - $1.62 per share
(820,665)
Issuance of stock under stock plans and other2,381 397 66,615 
Stock-based compensation expense144,143 
Other comprehensive income25,789 
Common stock repurchased(10,259)(1,706)(1,805,802)
BALANCE, APRIL 29, 2023
501,418 $83,571 $26,262,226 $9,839,790 $(172,363)












See accompanying notes.



4

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

Three Months Ended April 30, 2022
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, JANUARY 29, 2022523,315 $87,221 $30,093,961 $7,434,748 $(188,618)
Net income783,273 
Dividends declared and paid - $0.76 per share
(397,544)
Issuance of stock under stock plans and other1,404 234 11,348 
Stock-based compensation expense70,996 
Other comprehensive loss(18,997)
Common stock repurchased(4,913)(819)(776,021)
BALANCE, APRIL 30, 2022
519,806 $86,636 $29,400,284 $7,820,477 $(207,615)
Six Months Ended April 30, 2022
Capital inAccumulated
Other
Common StockExcess ofRetainedComprehensive
SharesAmountPar ValueEarningsLoss
BALANCE, OCTOBER 30, 2021525,331 $87,554 $30,574,237 $7,517,316 $(186,565)
Net income1,063,350 
Dividends declared and paid - $1.45 per share
(760,189)
Issuance of stock under stock plans and other1,983 332 19,722 
Stock-based compensation expense157,935 
Other comprehensive loss(21,050)
Common stock repurchased(7,508)(1,250)(1,351,610)
BALANCE, APRIL 30, 2022
519,806 $86,636 $29,400,284 $7,820,477 $(207,615)













See accompanying notes.
5

ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
  
Six Months Ended
 April 29, 2023April 30, 2022
Cash flows from operating activities:
Net income$1,939,130 $1,063,350 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation165,581 137,016 
Amortization of intangibles1,003,713 1,008,900 
Cost of goods sold for inventory acquired— 271,396 
Stock-based compensation expense144,143 157,935 
Deferred income taxes(280,110)(122,992)
Non-cash operating lease costs(6,902)(27,697)
Other9,670 (10,225)
Changes in operating assets and liabilities(487,339)(399,463)
Total adjustments548,756 1,014,870 
Net cash provided by operating activities2,487,886 2,078,220 
Cash flows from investing activities:
Additions to property, plant and equipment(460,496)(229,912)
Other(81)13,010 
Net cash used for investing activities(460,577)(216,902)
Cash flows from financing activities:
Early termination of debt(65,688)(519,116)
Dividend payments to shareholders(820,665)(760,189)
Repurchase of common stock(1,807,508)(852,860)
Proceeds from employee stock plans67,012 20,054 
Proceeds from commercial paper notes253,635 — 
Other52,942 26,657 
Net cash used for financing activities(2,320,272)(2,085,454)
Effect of exchange rate changes on cash— (16,095)
Net decrease in cash and cash equivalents(292,963)(240,231)
Cash and cash equivalents at beginning of period1,470,572 1,977,964 
Cash and cash equivalents at end of period$1,177,609 $1,737,733 












See accompanying notes.
6

ANALOG DEVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED APRIL 29, 2023 (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 29, 2022 (fiscal 2022) 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 28, 2023 (fiscal 2023) 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 2023 presentation.
Note 2 – Shareholders' Equity
As of April 29, 2023, the Company had repurchased a total of approximately 199.3 million shares of its common stock for approximately $13.4 billion under the Company's share repurchase program. As of April 29, 2023, an additional $3.2 billion remains available for repurchase of shares under the current authorized program. The Company also repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units/awards or the exercise of stock options as well as for the Company's employee stock purchase plan. Future repurchases of common stock will be dependent upon the Company's financial position, results of operations, outlook, liquidity and other factors deemed relevant by the Company.
Note 3 – Accumulated Other Comprehensive (Loss) Income
The following table provides the changes in accumulated other comprehensive (loss) income (AOCI) by component and the related tax effects during the first six months of fiscal 2023.
Foreign currency translation adjustmentUnrealized holding gains (losses) on derivativesPension plansTotal
October 29, 2022$(72,136)$(119,613)$(6,403)$(198,152)
Other comprehensive income before reclassifications1,635 20,324 50 22,009 
Amounts reclassified out of other comprehensive income— 6,911 746 7,657 
Tax effects— (3,877)— (3,877)
Other comprehensive income1,635 23,358 796 25,789 
April 29, 2023$(70,501)$(96,255)$(5,607)$(172,363)
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:
7

Three Months EndedSix Months Ended
Comprehensive (Loss) Income ComponentApril 29, 2023April 30, 2022April 29, 2023April 30, 2022Location
Unrealized holding (gains) losses on derivatives:
Currency forwards $1,342 $2,113 $283 $3,864 Cost of sales
570 1,373 123 2,583 Research and development
344 2,485 (953)4,357 Selling, marketing, general and administrative
Interest rate derivatives3,731 3,731 7,458 7,462 Interest expense
5,987 9,702 6,911 18,266 Total before tax
(701)(1,485)(1,503)(2,786)Tax
$5,286 $8,217 $5,408 $15,480 Net of tax
Amortization of pension components included in the computation of net periodic pension cost:
Actuarial losses$376 $458 $746 $947 Net of tax
Total amounts reclassified out of AOCI, net of tax$5,662 $8,675 $6,154 $16,427 
Note 4 – Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
 Three Months EndedSix Months Ended
 April 29, 2023April 30, 2022April 29, 2023April 30, 2022
Net Income$977,656 $783,273 $1,939,130 $1,063,350 
Basic shares:
Weighted-average shares outstanding504,715 522,370 505,918 523,831 
Earnings per common share basic:$1.94 $1.50 $3.83 $2.03 
Diluted shares:
Weighted-average shares outstanding504,715 522,370 505,918 523,831 
Assumed exercise of common stock equivalents4,010 3,894 4,037 4,372 
Weighted-average common and common equivalent shares508,725 526,264 509,955 528,203 
Earnings per common share diluted:$1.92 $1.49 $3.80 $2.01 
Anti-dilutive shares related to:
Outstanding stock-based awards387 738 354 461 

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Note 5 – Special Charges, Net
Liabilities related to special charges, net are included in Accrued liabilities and Other non-current liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below:
Accrued Special ChargesGlobal Repositioning Actions
Balance at October 29, 2022$52,070 
Severance and benefit payments(16,298)
Balance at January 28, 2023$35,772 
Severance and benefit payments(22,820)
Employee severance and benefit costs23,136 
Balance at April 29, 2023$36,088 
Accrued liabilities$12,952 
Other non-current liabilities$23,136 
Note 6 – Commitments and Contingencies
On March 17, 2022, Walter E. Ryan and Ryan Asset Management, LLC, purported stockholders of Maxim Integrated Products, Inc. (Maxim), filed a putative class action in the Court of Chancery of the State of Delaware (C.A. No. 2022—0255) against the Company and the former directors of Maxim. The complaint alleges breach of fiduciary duties by the individual defendants in connection with Maxim’s agreement, as part of the merger negotiations with the Company, to suspend Maxim dividends for up to four quarters prior to the closing of the Company's acquisition of Maxim. The complaint further alleges that the Company aided and abetted that alleged breach of fiduciary duties. The plaintiffs seek damages in an amount to be determined at trial, plaintiffs’ costs and disbursements, including reasonable attorneys’ and experts’ fees, costs and other expenses. On May 2, 2023, the Court of Chancery entered an order dismissing the action in its entirety and with prejudice. On May 9, 2023, plaintiffs filed a Motion for Reargument. The Company believes that it and the other defendants have meritorious arguments in response to the motion and defenses to the underlying allegations; however, the Company is currently unable to determine the ultimate outcome of this matter or determine an estimate, or a range of estimates, of potential losses, if any.
Note 7 – Revenue
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 revenue within, each end market.
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Three Months Ended
 April 29, 2023April 30, 2022
 Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$1,744,567 53 %16 %$1,502,731 51 %
Automotive784,775 24 %24 %633,255 21 %
Communications453,530 14 %(4)%474,722 16 %
Consumer280,058 9 %(22)%361,356 12 %
Total revenue$3,262,930 100 %10 %$2,972,064 100 %
Six Months Ended
April 29, 2023April 30, 2022
Revenue% of Revenue*Y/Y%Revenue% of Revenue*
Industrial$3,438,006 53 %21 %$2,849,577 50 %
Automotive1,498,178 23 %27 %1,183,985 21 %
Communications941,735 14 %6 %887,663 16 %
Consumer634,641 10 %(14)%735,132 13 %
Total revenue$6,512,560 100 %15 %$5,656,357 100 %
* 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. Other customers include the U.S. government, government prime contractors and certain commercial customers for which revenue is recorded over time.
Three Months Ended
April 29, 2023April 30, 2022
ChannelRevenue% of Revenue*Revenue% of Revenue*
   Distributors$1,996,410 61 %$1,849,988 62 %
   Direct customers1,224,786 38 %1,091,710 37 %
   Other41,734 1 %30,366 1 %
Total revenue$3,262,930 100 %$2,972,064 100 %
Six Months Ended
April 29, 2023April 30, 2022
ChannelRevenue% of Revenue*Revenue% of Revenue*
    Distributors$4,007,733 62 %$3,503,042 62 %
    Direct customers2,420,320 37 %2,094,891 37 %
    Other84,507 1 %58,424 1 %
Total revenue$6,512,560 100 %$5,656,357 100 %
* The sum of the individual percentages may not equal the total due to rounding.
Note 8 – Fair Value
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 April 29, 2023 and October 29, 2022. 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 April 29, 2023 and October 29, 2022, the Company held $661.3 million and $1,016.0 million, respectively, of cash that was
10

excluded from the tables below.
 April 29, 2023
 
Fair Value measurement at
Reporting Date using:
 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds$516,265 $— $516,265 
Other assets:
Deferred compensation plan investments68,645 — 68,645 
Forward foreign currency exchange contracts— 8,541 8,541 
Total assets measured at fair value$584,910 $8,541 $593,451 
Liabilities
Interest rate derivatives (1)$— $1,866 $1,866 
Total liabilities measured at fair value$— $1,866 $1,866 
(1)The carrying value of the related debt was adjusted by an equal and offsetting amount. The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives. See Note 9, Derivatives, in these Notes to Condensed Consolidated Financial Statements.

 October 29, 2022
 
Fair Value measurement at
Reporting Date using:
 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Total
Assets
Cash equivalents:
Available-for-sale:
Government and institutional money market funds$454,545 $— $454,545 
Other assets:
Deferred compensation plan investments63,211 — 63,211 
Total assets measured at fair value$517,756 $— $517,756 
Liabilities
Forward foreign currency exchange contracts$— $16,984 $16,984 
Total liabilities measured at fair value$— $16,984 $16,984 
In addition to the methods and assumptions used by the Company in estimating its fair value disclosure for financial instruments disclosed in Note 2j, Summary of Significant Accounting Policies, in the Company's Annual Report on Form 10-K for fiscal 2022, which was filed with the Securities and Exchange Commission on November 22, 2022, the following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments:
Interest rate derivative — The fair value of interest rate derivatives is estimated using a discounted cash flow analysis based on the contractual terms of the derivatives.
Assets and Liabilities Not Recorded at Fair Value on a Recurring Basis
Commercial paper — The fair value of commercial paper is obtained from indicative market prices and are classified as Level 2 measurements according to the fair value hierarchy. As of April 29, 2023, the fair value of the commercial paper notes was $254.2 million.
Debt — The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a
11

recurring basis. 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.
April 29, 2023October 29, 2022
Principal Amount OutstandingFair Value Principal Amount Outstanding Fair Value
2024 Notes, due October 2024$500,000 $492,992 $500,000 $491,982 
2025 Notes, due April 2025400,000 389,004 400,000 383,378 
2026 Notes, due December 2026900,000 877,748 900,000 851,479 
Maxim 2027 Notes, due June 2027— — 59,788 54,771 
2027 Notes, due June 2027440,212 427,235 440,212 410,091 
2028 Notes, due October 2028750,000 661,084 750,000 621,093 
2031 Notes, due October 20311,000,000 848,781 1,000,000 786,772 
2032 Notes, due October 2032300,000 293,269 300,000 278,359 
2036 Notes, due December 2036144,278 136,193 144,278 126,274 
2041 Notes, due October 2041750,000 573,996 750,000 513,709 
2045 Notes, due December 2045332,587 345,948 332,587 313,931 
2051 Notes, due October 20511,000,000 723,063 1,000,000 640,766 
Total debt$6,517,077 $5,769,313 $6,576,865 $5,472,605 
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 April 29, 2023 and October 29, 2022 were $307.0 million and $307.1 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 April 29, 2023 and October 29, 2022 were as follows:
Fair Value At
Balance Sheet LocationApril 29, 2023October 29, 2022
Forward foreign currency exchange contractsPrepaid expenses and other current assets$6,022 $— 
Forward foreign currency exchange contractsAccrued liabilities$— $18,050 
As of April 29, 2023 and October 29, 2022, the total notional amounts of undesignated hedges related to forward foreign currency exchange contracts were $413.6 million and $246.4 million, respectively.
The following table presents the gross amounts of the Company's forward foreign currency exchange contract derivative assets and liabilities and the net amounts recorded in the Company's Condensed Consolidated Balance Sheets:
 April 29, 2023October 29, 2022
Gross amounts of recognized liabilities$(3,802)$(19,846)
Gross amount of recognized assets12,343 2,862 
Net assets (liabilities) presented in the Condensed Consolidated Balance Sheets$8,541 $(16,984)
Interest Rate Exposure Management — The Company's current and future debt may be subject to interest rate risk. The Company utilizes interest rate derivatives to alter interest rate exposure in an attempt to reduce the effects of changes in interest rates. During fiscal 2023, the Company entered into interest rate swap transactions related to its outstanding $1,000.0 million aggregate principal amount of 2.1% senior unsecured notes (the 2031 Notes) where the Company swapped the notional amount of its $1,000.0 million of fixed rate debt at 2.1% into floating interest rate debt through April 1, 2031. The fair value of the swaps at inception was zero and subsequent changes in the fair value of the interest rate swaps were reflected in the carrying value of the interest rate swaps on the balance sheet. The carrying value of the debt on the balance sheet was adjusted by an equal and offsetting amount. The interest rate swaps were designated and qualified as fair value hedges. The Company does not consider the risk of counterparty default to be significant. The gain or loss on the hedged item attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps were recorded as follows:

12

April 29, 2023
Balance Sheet locationLoss on SwapsGain on Note
Accrued liabilities$1,866 $— 
Long term debt$— $1,866 
For information on the unrealized holding gains (losses) on derivatives included in and reclassified out of AOCI into the Condensed Consolidated Statements of Income related to forward foreign currency exchange contracts, see Note 3, Accumulated Other Comprehensive (Loss) Income, in these Notes to Condensed Consolidated Financial Statements for further information.
Note 10 – Inventories
Inventories at April 29, 2023 and October 29, 2022 were as follows:
April 29, 2023October 29, 2022
Raw materials$122,518 $110,908 
Work in process1,084,541 904,648 
Finished goods441,077 384,358 
Total inventories$1,648,136 $1,399,914 
Note 11 – Debt
Revolving Credit Facility. On June 23, 2021, the Company entered into a Third Amended and Restated Credit Agreement (Revolving Credit Agreement) with Bank of America, N.A. as administrative agent and the other banks identified therein as lenders. The Revolving Credit Agreement provides for a five year unsecured revolving credit facility in an aggregate principal amount not to exceed $2.5 billion (subject to certain terms and conditions).
In the first quarter of fiscal 2023, the Company amended the Revolving Credit Agreement, replacing the LIBOR interest rate provisions with interest rate provisions based on a forward-looking term rate based on the secured overnight financing rate (SOFR) plus a 10 basis point credit spread adjustment. After the amendment, revolving loans under the Revolving Credit Agreement can be Term SOFR Loans or Base Rate Loans (each as defined in the Revolving Credit Agreement, as amended) at the Company's option. Each Term SOFR Loan will bear interest at a rate per annum equal to the applicable adjusted term SOFR plus a margin based on the Company's Debt Ratings (as defined in the Revolving Credit Agreement, as amended) from time to time of between 0.690% and 1.175%. As of April 29, 2023, the Company had no outstanding borrowings under this revolving credit facility but may borrow in the future and use the proceeds for repayment of existing indebtedness, stock repurchases, acquisitions, capital expenditures, working capital and other lawful corporate purposes.
Outstanding Debt. On April 26, 2023 (Redemption Date), the Company redeemed for cash $59.8 million representing all of the outstanding 3.450% senior notes due June 15, 2027 issued by Maxim (Maxim Notes) in accordance with the terms of the indenture governing the Maxim Notes. The Maxim Notes were redeemed for cash at a redemption price equal to $1,012.55 for each $1,000 principal of the Maxim Notes and included accrued interest.
Commercial Paper Program. On April 14, 2023, the Company established a commercial paper program under which the Company may issue short-term, unsecured commercial paper notes (CP Notes) in an amount up to a maximum aggregate face amount of $2.5 billion outstanding at any time, with maturities up to 397 days from the date of issuance. The CP Notes will be sold under customary market terms in the U.S. commercial paper market at a discount from par or at par and bear interest at rates determined at the time of issuance. The Company intends to use the net proceeds of the CP Notes for general corporate purposes, including without limitation, repayment of indebtedness, stock repurchases, acquisitions, capital expenditures and working capital. As of April 29, 2023, the Company had $253.6 million of outstanding borrowings under the commercial paper program recorded in the Condensed Consolidated Balance Sheet. The carrying value of the outstanding CP Notes approximated fair value at April 29, 2023.
13

Note 12 – Income Taxes
The Company’s effective tax rates for the three- and six-month periods ended April 29, 2023 and April 30, 2022 were below the U.S. statutory tax rate of