Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 29, 2011

Summary of Significant Accounting Policies [Abstract]

Unrealized gains and losses on available-for-sale securities classified as short-term investments

Unrealized gains and losses on available-for-sale securities classified as short-term investments at October 29, 2011 and October 30, 2010 were as follows:

	2011			2010
Unrealized gains on securities classified as short-term investments	$	22		$	165
Unrealized losses on securities classified as short-term investments		(600	)		(217	)
Net unrealized losses on securities classified as short-term investments	$	(578	)	$	(52	)

Cash and cash equivalents and short term investments

The components of the Company’s cash and cash equivalents and short-term investments as of October 29, 2011 and October 30, 2010 were as follows:

	2011		2010
Cash and cash equivalents:
Cash	$	17,857	$	37,460
Available-for-sale		1,374,069		1,020,993
Held-to-maturity		13,174		11,547
Total cash and cash equivalents	$	1,405,100	$	1,070,000
Short-term investments:
Available-for-sale	$	2,186,782	$	1,587,768
Held-to-maturity (less than one year to maturity)		580		30,000
Total short-term investments	$	2,187,362	$	1,617,768

Supplemental cash flow statement Information

	2011		2010		2009
Cash paid during the fiscal year for:
Income taxes	$	223,716	$	137,149	$	60,609
Interest	$	16,492	$	9,199	$	2,502

Inventories

Inventories at October 29, 2011 and October 30, 2010 were as follows:

	2011		2010
Raw materials	$	28,085	$	22,008
Work in process		170,398		171,390
Finished goods		96,598		84,080
Total inventories	$	295,081	$	277,478

Useful lives of property, plant and equipment

Depreciation and amortization are based on the following useful lives:

Buildings & building equipment	Up to 25 years
Machinery & equipment	3-8 years
Office equipment	3-8 years

Changes in goodwill

The following table presents the changes in goodwill during fiscal 2011 and 2010:

	2011		2010
Balance at beginning of year	$	255,580	$	250,881
Acquisition of Lyric Semiconductor (Note 6)		18,865		—
Foreign currency translation adjustment		642		4,699
Balance at end of year	$	275,087	$	255,580

Intangible assets consisted of the following:

Intangible assets consisted of the following:

	October 29, 2011				October 30, 2010
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Technology-based	$	—	$	—	$	7,166	$	6,323
Customer relationships		—		—		2,858		2,358
In-process research and development		12,200		—		—		—
Total	$	12,200	$	—	$	10,024	$	8,681

Net gain or loss on the hedged item

The gain or loss on the hedged item (that is, the fixed-rate borrowings) attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps for fiscal year 2011 and fiscal year 2010 were as follows:

Statement of Income	October 29, 2011							October 30, 2010
Classification	Loss on Swaps			Gain on Note		Net Income Effect		Gain on Swaps		Loss on Note			Net Income Effect
Other income	$	(4,614	)	$	4,614	$	—	$	20,692	$	(20,692	)	$	—

Fair value of hedging instruments

The fair values of these hedging instruments in the Company’s consolidated balance sheets as of October 29, 2011 and October 30, 2010 were as follows:

		Fair Value at		Fair Value at
	Balance Sheet Location	October 29, 2011		October 30, 2010
Interest rate swap agreements	Other assets	$	22,187	$	26,801
Forward foreign currency exchange contracts	Prepaid expenses and other current assets	$	2,038	$	7,542

Effect of derivative instruments designated as cash flow hedges

The effects of derivative instruments designated as cash flow hedges on the consolidated statements of income for fiscal 2011 and fiscal 2010 were as follows:

	October 29, 2011			October 30, 2010
Gain (loss) recognized in OCI on derivative (net of tax of $539 in 2011 and $449 in 2010)	$	3,347		$	(1,339	)
(Gain) loss reclassified from OCI into income (net of tax of $1,171 in 2011 and $458 in 2010)	$	(7,793	)	$	1,863

Cash flow hedge reclassified into earnings

The amounts reclassified into earnings before tax are recognized in cost of sales and operating expenses for fiscal 2011 and fiscal 2010 were as follows:

	October 29, 2011			October 30, 2010
Cost of sales	$	(4,363	)	$	(112	)
Research and development	$	(2,264	)	$	1,259
Selling, marketing, general and administrative	$	(2,337	)	$	1,174

Summary of activity in accumulated other comprehensive (loss) income related to derivatives

The following table summarizes activity in accumulated other comprehensive (loss) income related to derivatives classified as cash flow hedges held by the Company during the period from November 1, 2009 through October 29, 2011:

	2011			2010
Balance at beginning of year	$	6,133		$	5,609
Changes in fair value of derivatives — gain (loss), net of tax		3,347			(1,339	)
(Gain) loss reclassified into earnings from other comprehensive income (loss), net of tax		(7,793	)		1,863
Balance at end of year	$	1,687		$	6,133

Fair value of financial assets and liabilities

The table below sets forth by level the Company’s financial assets and liabilities, excluding accrued interest components, that were accounted for at fair value on a recurring basis as of October 29, 2011 and October 30, 2010. The table excludes cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value.

									October 30, 2010
	October 29, 2011								Fair Value
	Fair Value measurement at								measurement at
	Reporting Date using:								Reporting Date using:
	Quoted								Quoted
	Prices in								Prices in
	Active								Active
	Markets		Significant		Significant				Markets		Significant
	for		Other		Other				for		Other
	Identical		Observable		Unobservable				Identical		Observable
	Assets		Inputs		Inputs				Assets		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		Total
Assets
Cash equivalents:
Available-for-sale:
Institutional money market funds	$	1,278,121	$	—	$	—	$	1,278,121	$	921,034	$	—	$	921,034
Corporate obligations(1)		—		95,948		—		95,948		—		99,959		99,959
Short — term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations(1)		—		2,169,078		—		2,169,078		—		1,520,220		1,520,220
Floating rate notes, issued at par		—		—		—		—		—		50,000		50,000
Floating rate notes(1)		—		17,704		—		17,704		—		—		—
Securities with greater than one year to maturity:
Floating rate notes(1)		—		—		—		—		—		17,548		17,548
Other assets:
Forward foreign currency exchange contracts(2)		—		2,472		—		2,472		—		7,256		7,256
Deferred compensation investments		26,410		—		—		26,410		8,690		—		8,690
Other investments		1,135		—		—		1,135		1,317		—		1,317
Interest rate swap agreements		—		22,187		—		22,187		—		26,801		26,801
Total assets measured at fair value	$	1,305,666	$	2,307,389	$	—	$	3,613,055	$	931,041	$	1,721,784	$	2,652,825
Liabilities
Long-term debt
$375 million aggregate principle 5.0% debt(3)	$	—	$	396,337	$	—		396,337	$	—	$	400,635	$	400,635
Contingent consideration		—		—		13,973		13,973		—		—		—
Total liabilities measured at fair value	$	—	$	396,337	$	13,973	$	410,310	$	—	$	400,635	$	400,635

(1) The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2011 and October 30, 2010 was $2,284.9 million and $1,639.1 million, respectively.

(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of October 29, 2011 and October 30, 2010, contracts in a liability position of $0.8 million in each year, were netted against contracts in an asset position in the consolidated balance sheets.
(3)	Equal to the accreted notional value of the debt plus the fair value of the interest rate component of the long-term debt. The fair value of the long-term debt as of October 29, 2011 and October 30, 2010 was $413.4 million and $416.3 million, respectively.

Change in the fair value of the contingent consideration

The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) for fiscal 2011:

	Contingent
	Consideration
Balance as of October 30, 2010	$	—
Contingent consideration liability recorded		13,790
Fair value adjustment		183
Balance as of October 29, 2011	$	13,973

Components of accumulated other comprehensive (loss)

The components of accumulated other comprehensive (loss) at October 29, 2011 and October 30, 2010 consisted of the following:

	2011			2010
Foreign currency translation	$	(2,038	)	$	(1,391	)
Unrealized gains on derivative instruments		1,687			6,133
Unrealized gains on available-for-sale securities		695			822
Unrealized losses on available-for-sale securities		(641	)		(191	)
Accumulated other comprehensive loss — pension plans:
Transition obligation		(117	)		(129	)
Net actuarial loss		(25,755	)		(38,839	)
Total accumulated other comprehensive loss	$	(26,169	)	$	(33,595	)

Computation of basic and diluted earnings per share

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

	2011		2010		2009
Income from continuing operations, net of tax	$	860,894	$	711,225	$	247,408
Total income from discontinued operations, net of tax		6,500		859		364
Net income	$	867,394	$	712,084	$	247,772
Basic shares:
Weighted average shares outstanding		299,417		297,387		291,385
Earnings per share-basic:
Income from continuing operations, net of tax	$	2.88	$	2.39	$	0.85
Total income from discontinued operations, net of tax		0.02		0.00		0.00
Net income	$	2.90	$	2.39	$	0.85
Diluted shares:
Weighted average shares outstanding		299,417		297,387		291,385
Assumed exercise of common stock equivalents		8,819		8,474		1,313
Weighted average common and common equivalent shares		308,236		305,861		292,698
Earnings per share-diluted:
Income from continuing operations, net of tax	$	2.79	$	2.33	$	0.85
Total income from discontinued operations, net of tax		0.02		0.00		0.00
Net income	$	2.81	$	2.33	$	0.85
Weighted average anti-dilutive shares related to:
Outstanding stock options		7,298		18,206		55,827

Income from discontinued operations, net of tax

The following amounts related to the CPU voltage regulation and PC thermal monitoring and baseband chipset businesses have been segregated from continuing operations and reported as discontinued operations. These amounts also include the revenue and costs of sales provided under a manufacturing supply agreement between the Company and a subsidiary of ON Semiconductor Corporation, which terminated during the first quarter of fiscal year 2009.

	2011		2010		2009
Total revenue	$	—	$	—	$	10,332
Cost of sales		—		—		10,847
Operating expenses		—		—		16
Gain on sale of discontinued operations		10,000		1,316		—
Income (loss) before income taxes		10,000		1,316		(531	)
Provision for (benefit from) income taxes		3,500		457		(895	)
Total income from discontinued operations, net of tax	$	6,500	$	859	$	364