Analog Devices(US:ADI)2024-11-26 21:01Interest Rate Sensitivity - Annual interest expense would change by approximately $15.5 million and $20.5 million for each 100 basis point increase in interest rates as of November 2, 2024 and October 28, 2023, respectively[255] - Annual interest income would change by approximately $19.9 million and $9.6 million for each 100 basis point increase in interest rates as of November 2, 2024 and October 28, 2023, respectively[256] - 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[257] - The fair value of the 2024 Notes, due October 2024, would decrease to $495,058 from $499,473 with a hypothetical 100 basis point increase in interest rates[258] Foreign Currency Exchange Rate Sensitivity - 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 as of November 2, 2024 and October 28, 2023, respectively[260] - The fair value of forward exchange contracts as of November 2, 2024 would change to $31,564 after a 10% unfavorable movement in foreign currency exchange rates[262] - The fair value of forward exchange contracts as of November 2, 2024 would change to $(45,922) after a 10% favorable movement in foreign currency exchange rates[262] Debt and Derivatives - The company had $7.1 billion in principal amount of senior unsecured notes outstanding as of November 2, 2024, with a fair value of $6.3 billion[258] - The company had $1.0 billion notional of fixed for floating interest rate swaps outstanding as of November 2, 2024, with the swap payable having a fair value of $36.9 million[257] - The company had $547.7 million of commercial paper notes outstanding as of November 2, 2024, with a fair value of $547.7 million[258] Price Protection Credits and Rights of Return - Sales to distributors in 2024 were $5.5 billion, net of expected price protection credits and rights of return[270] - The liability balance for price protection credits and rights of return as of November 2, 2024, was $508.7 million, with the majority related to price protection credits[270] - The calculation of price protection credits involves subjective management assumptions about future economic conditions, which can materially affect the recognized amount[270] - The company's process for calculating price protection credits was evaluated, including testing controls over management's assumptions and data accuracy[272] - Audit procedures included inspecting distributor agreements, testing data completeness, and evaluating significant assumptions used in estimating price protection credits[273] - The company's retrospective review analysis of actual price protection credits claimed by distributors was inspected and tested[273] - Sensitivity analyses were performed to assess the impact of significant assumptions on price protection credits[273] - The company considered new information that could significantly change the estimated future price protection credits[273]