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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Massachusetts
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04-2348234
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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One Technology Way, Norwood, MA
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02062-9106
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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ITEM 1.
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Financial Statements
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ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(thousands, except per share amounts)
|
|||||||
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Three Months Ended
|
||||||
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January 28, 2017
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|
January 30, 2016
|
||||
Revenue
|
$
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984,449
|
|
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$
|
769,429
|
|
Cost of sales (1)
|
335,945
|
|
|
292,136
|
|
||
Gross margin
|
648,504
|
|
|
477,293
|
|
||
Operating expenses:
|
|
|
|
||||
Research and development (1)
|
183,954
|
|
|
157,428
|
|
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Selling, marketing, general and administrative (1)
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130,659
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107,462
|
|
||
Amortization of intangibles
|
18,160
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|
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17,358
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|
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Special charges
|
49,463
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|
|
—
|
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||
|
382,236
|
|
|
282,248
|
|
||
Operating income
|
266,268
|
|
|
195,045
|
|
||
Nonoperating expense (income):
|
|
|
|
||||
Interest expense
|
42,614
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|
|
13,062
|
|
||
Interest income
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(10,000
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)
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(3,199
|
)
|
||
Other, net
|
345
|
|
|
3,005
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||
|
32,959
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|
|
12,868
|
|
||
Income before income taxes
|
233,309
|
|
|
182,177
|
|
||
Provision for income taxes
|
16,180
|
|
|
17,673
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|
||
Net income
|
$
|
217,129
|
|
|
$
|
164,504
|
|
Shares used to compute earnings per share – basic
|
308,786
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|
|
311,166
|
|
||
Shares used to compute earnings per share – diluted
|
313,076
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|
|
314,793
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|
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Basic earnings per share
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$
|
0.70
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|
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$
|
0.53
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Diluted earnings per share
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$
|
0.69
|
|
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$
|
0.52
|
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Dividends declared and paid per share
|
$
|
0.42
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|
|
$
|
0.40
|
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(1) Includes stock-based compensation expense as follows:
|
|
|
|
||||
Cost of sales
|
$
|
1,944
|
|
|
$
|
2,092
|
|
Research and development
|
$
|
7,021
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|
|
$
|
6,704
|
|
Selling, marketing, general and administrative
|
$
|
7,564
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|
|
$
|
6,813
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ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(thousands)
|
|||||||
|
Three Months Ended
|
||||||
|
January 28, 2017
|
|
January 30, 2016
|
||||
Net income
|
$
|
217,129
|
|
|
$
|
164,504
|
|
Foreign currency translation adjustments
|
(4,962
|
)
|
|
(8,114
|
)
|
||
Change in fair value of available-for-sale securities classified as short-term investments (net of taxes of $4 and $0, respectively)
|
219
|
|
|
(75
|
)
|
||
Change in fair value of derivative instruments designated as cash flow hedges (net of taxes of $1,395 and $357, respectively)
|
2,085
|
|
|
(1,580
|
)
|
||
Changes in pension plans including prior service cost, transition obligation, net actuarial loss and foreign currency translation adjustments (net of taxes of $101 and $50 respectively)
|
179
|
|
|
813
|
|
||
Other comprehensive loss
|
(2,479
|
)
|
|
(8,956
|
)
|
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Comprehensive income
|
$
|
214,650
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|
|
$
|
155,548
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ANALOG DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(thousands, except share and per share amounts)
|
|||||||
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January 28, 2017
|
|
October 29, 2016
|
||||
ASSETS
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|
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|
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Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,987,263
|
|
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$
|
921,132
|
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Short-term investments
|
1,329,803
|
|
|
3,134,661
|
|
||
Accounts receivable
|
472,511
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|
|
477,609
|
|
||
Inventories (1)
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365,586
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|
|
376,555
|
|
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Prepaid income tax
|
20,244
|
|
|
6,405
|
|
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Prepaid expenses and other current assets
|
58,326
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|
|
58,501
|
|
||
Total current assets
|
7,233,733
|
|
|
4,974,863
|
|
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Property, Plant and Equipment, at Cost
|
|
|
|
||||
Land and buildings
|
565,306
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|
|
564,329
|
|
||
Machinery and equipment
|
2,017,102
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|
|
1,994,115
|
|
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Office equipment
|
58,934
|
|
|
58,785
|
|
||
Leasehold improvements
|
59,549
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|
|
59,649
|
|
||
|
2,700,891
|
|
|
2,676,878
|
|
||
Less accumulated depreciation and amortization
|
2,071,967
|
|
|
2,040,762
|
|
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Net property, plant and equipment
|
628,924
|
|
|
636,116
|
|
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Other Assets
|
|
|
|
||||
Deferred compensation plan investments
|
25,699
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|
|
26,152
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|
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Other investments
|
22,991
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|
21,937
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|
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Goodwill
|
1,677,399
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1,679,116
|
|
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Intangible assets, net
|
529,516
|
|
|
549,368
|
|
||
Deferred tax assets
|
34,166
|
|
|
36,005
|
|
||
Other assets
|
50,943
|
|
|
46,721
|
|
||
Total other assets
|
2,340,714
|
|
|
2,359,299
|
|
||
|
$
|
10,203,371
|
|
|
$
|
7,970,278
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
156,653
|
|
|
$
|
171,439
|
|
Deferred income on shipments to distributors, net
|
356,666
|
|
|
351,538
|
|
||
Income taxes payable
|
5,346
|
|
|
4,100
|
|
||
Accrued liabilities
|
292,961
|
|
|
255,857
|
|
||
Total current liabilities
|
811,626
|
|
|
782,934
|
|
||
Non-current liabilities
|
|
|
|
||||
Long-term debt
|
3,805,400
|
|
|
1,732,177
|
|
||
Deferred income taxes
|
103,244
|
|
|
109,931
|
|
||
Deferred compensation plan liability
|
25,699
|
|
|
26,152
|
|
||
Other non-current liabilities
|
150,971
|
|
|
153,466
|
|
||
Total non-current liabilities
|
4,085,314
|
|
|
2,021,726
|
|
||
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, 309,206,677 shares issued and outstanding (308,170,560 on October 29, 2016)
|
51,535
|
|
|
51,363
|
|
||
Capital in excess of par value
|
457,944
|
|
|
402,270
|
|
||
Retained earnings
|
4,873,245
|
|
|
4,785,799
|
|
||
Accumulated other comprehensive loss
|
(76,293
|
)
|
|
(73,814
|
)
|
||
Total shareholders’ equity
|
5,306,431
|
|
|
5,165,618
|
|
||
|
$
|
10,203,371
|
|
|
$
|
7,970,278
|
|
(1)
|
Includes
$2,553
and
$2,486
related to stock-based compensation at
January 28, 2017
and
October 29, 2016
, respectively.
|
|
Three Months Ended
|
||||||
|
January 28, 2017
|
|
January 30, 2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
217,129
|
|
|
$
|
164,504
|
|
Adjustments to reconcile net income to net cash provided by operations:
|
|
|
|
||||
Depreciation
|
34,379
|
|
|
33,209
|
|
||
Amortization of intangibles
|
19,947
|
|
|
18,347
|
|
||
Stock-based compensation expense
|
16,529
|
|
|
15,609
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
3,290
|
|
||
Excess tax benefit-stock options
|
(8,102
|
)
|
|
(986
|
)
|
||
Deferred income taxes
|
(7,055
|
)
|
|
(7,717
|
)
|
||
Other non-cash activity
|
13,071
|
|
|
744
|
|
||
Changes in operating assets and liabilities
|
28,594
|
|
|
(7,295
|
)
|
||
Total adjustments
|
97,363
|
|
|
55,201
|
|
||
Net cash provided by operating activities
|
314,492
|
|
|
219,705
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of short-term available-for-sale investments
|
(326,908
|
)
|
|
(1,632,014
|
)
|
||
Maturities of short-term available-for-sale investments
|
1,844,380
|
|
|
1,409,538
|
|
||
Sales of short-term available-for-sale investments
|
287,601
|
|
|
47,950
|
|
||
Additions to property, plant and equipment
|
(28,337
|
)
|
|
(23,128
|
)
|
||
Payments for acquisitions, net of cash acquired
|
(1,036
|
)
|
|
—
|
|
||
Changes in other assets
|
(5,946
|
)
|
|
(6,711
|
)
|
||
Net cash provided by (used for) investing activities
|
1,769,754
|
|
|
(204,365
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Early termination of debt
|
—
|
|
|
(378,156
|
)
|
||
Payments of derivative instruments
|
—
|
|
|
(33,430
|
)
|
||
Proceeds from debt
|
2,072,306
|
|
|
1,235,331
|
|
||
Payments of deferred financing fees
|
(5,625
|
)
|
|
—
|
|
||
Proceeds from derivative instruments
|
3,904
|
|
|
—
|
|
||
Dividend payments to shareholders
|
(129,683
|
)
|
|
(124,658
|
)
|
||
Repurchase of common stock
|
(3,106
|
)
|
|
(131,977
|
)
|
||
Proceeds from employee stock plans
|
34,432
|
|
|
6,229
|
|
||
Changes in other financing activities
|
2,221
|
|
|
(2,544
|
)
|
||
Excess tax benefit-stock options
|
8,102
|
|
|
986
|
|
||
Net cash provided by financing activities
|
1,982,551
|
|
|
571,781
|
|
||
Effect of exchange rate changes on cash
|
(666
|
)
|
|
(1,032
|
)
|
||
Net increase in cash and cash equivalents
|
4,066,131
|
|
|
586,089
|
|
||
Cash and cash equivalents at beginning of period
|
921,132
|
|
|
884,353
|
|
||
Cash and cash equivalents at end of period
|
$
|
4,987,263
|
|
|
$
|
1,470,442
|
|
|
Three Months Ended
|
||||||
Stock Options
|
January 28, 2017
|
|
January 30, 2016
|
||||
Options granted (in thousands)
|
15
|
|
|
36
|
|
||
Weighted-average exercise price
|
|
$68.48
|
|
|
|
$54.88
|
|
Weighted-average grant-date fair value
|
|
$12.38
|
|
|
|
$12.16
|
|
Assumptions:
|
|
|
|
||||
Weighted-average expected volatility
|
24.7%
|
|
|
31.3
|
%
|
||
Weighted-average expected term (in years)
|
5.1
|
|
|
5.3
|
|
||
Weighted-average risk-free interest rate
|
1.7
|
%
|
|
1.7
|
%
|
||
Weighted-average expected dividend yield
|
2.5
|
%
|
|
2.9
|
%
|
Activity during the Three Months Ended January 28, 2017
|
Options
Outstanding
(in thousands)
|
|
Weighted-
Average Exercise
Price Per Share
|
|
Weighted-
Average
Remaining
Contractual
Term in Years
|
|
Aggregate
Intrinsic Value |
|||||
Options outstanding at October 29, 2016
|
11,704
|
|
|
|
$44.43
|
|
|
|
|
|
||
Options granted
|
15
|
|
|
|
$68.48
|
|
|
|
|
|
||
Options exercised
|
(968
|
)
|
|
|
$35.72
|
|
|
|
|
|
||
Options forfeited
|
(41
|
)
|
|
|
$52.03
|
|
|
|
|
|
||
Options expired
|
(6
|
)
|
|
|
$33.19
|
|
|
|
|
|
||
Options outstanding at January 28, 2017
|
10,704
|
|
|
|
$45.22
|
|
|
6.0
|
|
|
$339,372
|
|
Options exercisable at January 28, 2017
|
5,661
|
|
|
|
$38.47
|
|
|
4.5
|
|
|
$217,735
|
|
Options vested or expected to vest at January 28, 2017 (1)
|
10,379
|
|
|
|
$44.93
|
|
|
6.0
|
|
|
$332,152
|
|
(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.
|
Activity during the Three Months Ended January 28, 2017
|
Restricted
Stock Units
Outstanding
(in thousands)
|
|
Weighted-
Average Grant-
Date Fair Value
Per Share
|
|||
Restricted stock units outstanding at October 29, 2016
|
2,690
|
|
|
|
$50.11
|
|
Units granted
|
5
|
|
|
|
$64.22
|
|
Restrictions lapsed
|
(108
|
)
|
|
|
$46.18
|
|
Forfeited
|
(17
|
)
|
|
|
$49.93
|
|
Restricted stock units outstanding at January 28, 2017
|
2,570
|
|
|
|
$50.31
|
|
|
Foreign currency translation adjustment
|
|
Unrealized holding gains on available for sale securities classified as short-term investments
|
|
Unrealized holding (losses) on available for sale securities classified as short-term investments
|
|
Unrealized holding gains (losses) on derivatives
|
|
Pension plans
|
|
Total
|
||||||||||||
October 29, 2016
|
$
|
(24,063
|
)
|
|
$
|
800
|
|
|
$
|
(281
|
)
|
|
$
|
(18,884
|
)
|
|
$
|
(31,386
|
)
|
|
$
|
(73,814
|
)
|
Other comprehensive income (loss) before reclassifications
|
(4,962
|
)
|
|
(4
|
)
|
|
219
|
|
|
(856
|
)
|
|
(176
|
)
|
|
(5,779
|
)
|
||||||
Amounts reclassified out of other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,336
|
|
|
456
|
|
|
4,792
|
|
||||||
Tax effects
|
—
|
|
|
11
|
|
|
(7
|
)
|
|
(1,395
|
)
|
|
(101
|
)
|
|
(1,492
|
)
|
||||||
Other comprehensive income (loss)
|
(4,962
|
)
|
|
7
|
|
|
212
|
|
|
2,085
|
|
|
179
|
|
|
(2,479
|
)
|
||||||
January 28, 2017
|
$
|
(29,025
|
)
|
|
$
|
807
|
|
|
$
|
(69
|
)
|
|
$
|
(16,799
|
)
|
|
$
|
(31,207
|
)
|
|
$
|
(76,293
|
)
|
|
|
Three Months Ended
|
|
|
||||||
Comprehensive Income Component
|
|
January 28, 2017
|
|
January 30, 2016
|
|
Location
|
||||
Unrealized holding losses (gains) on derivatives
|
|
|
|
|
|
|
||||
Currency forwards
|
|
$
|
1,700
|
|
|
$
|
1,479
|
|
|
Cost of sales
|
|
|
1,014
|
|
|
663
|
|
|
Research and development
|
||
|
|
1,093
|
|
|
794
|
|
|
Selling, marketing, general and administrative
|
||
Interest rate derivatives
|
|
529
|
|
|
283
|
|
|
Interest expense
|
||
|
|
4,336
|
|
|
3,219
|
|
|
Total before tax
|
||
|
|
(855
|
)
|
|
(510
|
)
|
|
Tax
|
||
|
|
$
|
3,481
|
|
|
$
|
2,709
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Amortization of pension components
|
|
|
|
|
|
|
||||
Transition obligation
|
|
$
|
3
|
|
|
$
|
4
|
|
|
(a)
|
Prior service credit
|
|
(2
|
)
|
|
—
|
|
|
(a)
|
||
Actuarial losses
|
|
455
|
|
|
167
|
|
|
(a)
|
||
|
|
456
|
|
|
171
|
|
|
Total before tax
|
||
|
|
(101
|
)
|
|
(50
|
)
|
|
Tax
|
||
|
|
$
|
355
|
|
|
$
|
121
|
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Total amounts reclassified out of accumulated other comprehensive income (loss), net of tax
|
|
$
|
3,836
|
|
|
$
|
2,830
|
|
|
|
|
January 28, 2017
|
|
October 29, 2016
|
||||
Unrealized gains on securities classified as short-term investments
|
$
|
842
|
|
|
$
|
846
|
|
Unrealized losses on securities classified as short-term investments
|
(75
|
)
|
|
(294
|
)
|
||
Net unrealized gains on securities classified as short-term investments
|
$
|
767
|
|
|
$
|
552
|
|
|
Three Months Ended
|
||||||
|
January 28, 2017
|
|
January 30, 2016
|
||||
Net Income
|
$
|
217,129
|
|
|
$
|
164,504
|
|
Basic shares:
|
|
|
|
||||
Weighted-average shares outstanding
|
308,786
|
|
|
311,166
|
|
||
Earnings per share basic:
|
$
|
0.70
|
|
|
$
|
0.53
|
|
Diluted shares:
|
|
|
|
||||
Weighted-average shares outstanding
|
308,786
|
|
|
311,166
|
|
||
Assumed exercise of common stock equivalents
|
4,290
|
|
|
3,627
|
|
||
Weighted-average common and common equivalent shares
|
313,076
|
|
|
314,793
|
|
||
Earnings per share diluted:
|
$
|
0.69
|
|
|
$
|
0.52
|
|
Anti-dilutive shares related to:
|
|
|
|
||||
Outstanding stock options
|
66
|
|
|
2,597
|
|
|
Reduction of Operating Costs Action
|
Early Retirement Action
|
Total Special Charges
|
||||||
Statements of Income
|
|
|
|
||||||
Fiscal 2016 - Workforce reductions
|
$
|
13,684
|
|
$
|
—
|
|
13,684
|
|
|
Fiscal 2017 - Workforce reductions
|
$
|
8,126
|
|
$
|
41,337
|
|
$
|
49,463
|
|
Accrued Restructuring
|
Reduction of Operating Costs Action
|
Early Retirement Action
|
||||
Balance at October 29, 2016
|
$
|
12,374
|
|
$
|
—
|
|
Fiscal 2017 special charge
|
8,126
|
|
41,337
|
|
||
Severance and other payments
|
(2,611
|
)
|
(199
|
)
|
||
Effect of foreign currency on accrual
|
(6
|
)
|
—
|
|
||
Balance at January 28, 2017
|
$
|
17,883
|
|
$
|
41,138
|
|
|
Three Months Ended
|
|||||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|||||||||||||
|
Revenue
|
|
% of
Revenue
|
|
Y/Y%
|
|
Revenue
|
|
% of
Revenue*
|
|||||||
Industrial
|
$
|
401,481
|
|
|
41
|
%
|
|
15
|
%
|
|
$
|
348,402
|
|
|
45
|
%
|
Automotive
|
138,585
|
|
|
14
|
%
|
|
10
|
%
|
|
126,355
|
|
|
16
|
%
|
||
Consumer
|
270,408
|
|
|
27
|
%
|
|
113
|
%
|
|
126,838
|
|
|
16
|
%
|
||
Communications
|
173,975
|
|
|
18
|
%
|
|
4
|
%
|
|
167,834
|
|
|
22
|
%
|
||
Total revenue
|
$
|
984,449
|
|
|
100
|
%
|
|
28
|
%
|
|
$
|
769,429
|
|
|
100
|
%
|
|
Three Months Ended
|
||||||
Region
|
January 28, 2017
|
|
January 30, 2016
|
||||
United States
|
$
|
430,998
|
|
|
$
|
266,669
|
|
Rest of North and South America
|
22,957
|
|
|
20,712
|
|
||
Europe
|
226,335
|
|
|
216,716
|
|
||
Japan
|
88,891
|
|
|
70,222
|
|
||
China
|
152,983
|
|
|
138,723
|
|
||
Rest of Asia
|
62,285
|
|
|
56,387
|
|
||
Total revenue
|
$
|
984,449
|
|
|
$
|
769,429
|
|
|
January 28, 2017
|
||||||||||||||
|
Fair Value measurement at
Reporting Date using:
|
|
|
||||||||||||
|
Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Institutional money market funds
|
$
|
2,282,633
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,282,633
|
|
Corporate obligations (1)
|
—
|
|
|
2,301,646
|
|
|
—
|
|
|
2,301,646
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Securities with one year or less to maturity:
|
|
|
|
|
|
|
|
||||||||
Corporate obligations (1)
|
—
|
|
|
1,132,109
|
|
|
—
|
|
|
1,132,109
|
|
||||
Floating rate notes (1)
|
—
|
|
|
113,044
|
|
|
—
|
|
|
113,044
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation investments
|
29,447
|
|
|
—
|
|
|
—
|
|
|
29,447
|
|
||||
Forward foreign currency exchange contracts (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
2,312,080
|
|
|
$
|
3,546,799
|
|
|
$
|
—
|
|
|
$
|
5,858,879
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
—
|
|
|
—
|
|
|
7,639
|
|
|
7,639
|
|
||||
Forward foreign currency exchange contracts (2)
|
—
|
|
|
6,062
|
|
|
—
|
|
|
6,062
|
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
6,062
|
|
|
$
|
7,639
|
|
|
$
|
13,701
|
|
(1)
|
The amortized cost of the Company’s investments classified as available-for-sale as of
January 28, 2017
was
$3.5 billion
.
|
(2)
|
The Company has a master netting arrangement by counterparty with respect to derivative contracts. See Note 9,
Derivatives,
for more information related to the Company's master netting arrangements.
|
|
October 29, 2016
|
||||||||||||||
|
Fair Value measurement at
Reporting Date using:
|
|
|
||||||||||||
|
Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Institutional money market funds
|
$
|
277,595
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
277,595
|
|
Corporate obligations (1)
|
—
|
|
|
415,660
|
|
|
—
|
|
|
415,660
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Securities with one year or less to maturity:
|
|
|
|
|
|
|
|
||||||||
Corporate obligations (1)
|
—
|
|
|
2,518,148
|
|
|
—
|
|
|
2,518,148
|
|
||||
Floating rate notes, issued at par
|
—
|
|
|
29,989
|
|
|
—
|
|
|
29,989
|
|
||||
Floating rate notes (1)
|
—
|
|
|
561,874
|
|
|
—
|
|
|
561,874
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation investments
|
26,916
|
|
|
—
|
|
|
—
|
|
|
26,916
|
|
||||
Total assets measured at fair value
|
$
|
304,511
|
|
|
$
|
3,525,671
|
|
|
$
|
—
|
|
|
$
|
3,830,182
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
—
|
|
|
—
|
|
|
7,555
|
|
|
7,555
|
|
||||
Forward foreign currency exchange contracts (2)
|
—
|
|
|
5,231
|
|
|
—
|
|
|
5,231
|
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
5,231
|
|
|
$
|
7,555
|
|
|
$
|
12,786
|
|
(1)
|
The amortized cost of the Company’s investments classified as available-for-sale as of
October 29, 2016
was
$3.5 billion
.
|
(2)
|
The Company has a master netting arrangement by counterparty with respect to derivative contracts. See Note 9,
Derivatives,
for more information related to the Company's master netting arrangements.
|
Unobservable Inputs
|
Range
|
Estimated contingent consideration payments
|
$8,500
|
Discount rate
|
0% - 2%
|
Timing of cash flows
|
1 - 3 years
|
Probability of achievement
|
90% - 100%
|
|
Contingent
Consideration
|
||
Balance as of October 29, 2016
|
$
|
7,555
|
|
Fair value adjustment (1)
|
84
|
|
|
Balance as of January 28, 2017
|
$
|
7,639
|
|
|
|
|
Fair Value At
|
||||||
|
Balance Sheet Location
|
|
January 28, 2017
|
|
October 29, 2016
|
||||
Forward foreign currency exchange contracts
|
Accrued liabilities
|
|
$
|
6,705
|
|
|
$
|
5,260
|
|
|
January 28, 2017
|
|
October 29, 2016
|
||||
Gross amount of recognized liabilities
|
$
|
(7,186
|
)
|
|
$
|
(5,788
|
)
|
Gross amounts of recognized assets offset in the condensed consolidated balance sheet
|
1,124
|
|
|
557
|
|
||
Net liabilities presented in the condensed consolidated balance sheet
|
$
|
(6,062
|
)
|
|
$
|
(5,231
|
)
|
|
Three Months Ended
|
||
|
January 28, 2017
|
||
Balance as of October 29, 2016
|
$
|
1,679,116
|
|
Goodwill adjustment related to acquisitions (1)
|
1,044
|
|
|
Foreign currency translation adjustment
|
(2,761
|
)
|
|
Balance as of January 28, 2017
|
$
|
1,677,399
|
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||
Customer relationships
|
$
|
649,153
|
|
|
$
|
177,015
|
|
|
$
|
649,159
|
|
|
$
|
158,979
|
|
Technology-based
|
38,726
|
|
|
11,744
|
|
|
38,731
|
|
|
9,958
|
|
||||
Trade-name
|
600
|
|
|
135
|
|
|
600
|
|
|
60
|
|
||||
Backlog
|
200
|
|
|
50
|
|
|
200
|
|
|
—
|
|
||||
IPR&D
|
29,781
|
|
|
—
|
|
|
29,675
|
|
|
—
|
|
||||
Total (1)(2)
|
$
|
718,460
|
|
|
$
|
188,944
|
|
|
$
|
718,365
|
|
|
$
|
168,997
|
|
Fiscal Year
|
Amortization Expense
|
||
Remainder of fiscal 2017
|
|
$59,846
|
|
2018
|
|
$78,475
|
|
2019
|
|
$75,286
|
|
2020
|
|
$75,047
|
|
2021
|
|
$74,627
|
|
|
Three Months Ended
|
||||||
|
January 28, 2017
|
|
January 30, 2016
|
||||
Service cost
|
$
|
1,648
|
|
|
$
|
1,379
|
|
Interest cost
|
884
|
|
|
938
|
|
||
Expected return on plan assets
|
(1,006
|
)
|
|
(981
|
)
|
||
Amortization of initial net obligation
|
3
|
|
|
4
|
|
||
Amortization of prior service cost
|
(2
|
)
|
|
—
|
|
||
Amortization of net loss
|
455
|
|
|
167
|
|
||
Net periodic pension cost
|
$
|
1,982
|
|
|
$
|
1,507
|
|
|
January 28, 2017
|
|
October 29, 2016
|
||||||||||||
|
Principal
|
|
Unamortized discount and debt issuance costs
|
|
Principal
|
|
Unamortized discount and debt issuance costs
|
||||||||
2021 Notes, due December 2021
|
400,000
|
|
|
4,432
|
|
|
—
|
|
|
—
|
|
||||
2023 Notes, due June 2023
|
500,000
|
|
|
3,895
|
|
|
500,000
|
|
|
4,047
|
|
||||
2023 Notes, due December 2023
|
550,000
|
|
|
6,042
|
|
|
—
|
|
|
—
|
|
||||
2025 Notes, due December 2025
|
850,000
|
|
|
7,816
|
|
|
850,000
|
|
|
8,034
|
|
||||
2026 Notes, due December 2026
|
900,000
|
|
|
12,594
|
|
|
—
|
|
|
—
|
|
||||
2036 Notes, due December 2036
|
250,000
|
|
|
4,129
|
|
|
—
|
|
|
—
|
|
||||
2045 Notes, due December 2045
|
400,000
|
|
|
5,692
|
|
|
400,000
|
|
|
5,742
|
|
||||
Total Long-Term Debt
|
$
|
3,850,000
|
|
|
$
|
44,600
|
|
|
$
|
1,750,000
|
|
|
$
|
17,823
|
|
|
January 28, 2017
|
|
October 29, 2016
|
||||
Raw materials
|
$
|
20,446
|
|
|
$
|
20,263
|
|
Work in process
|
228,516
|
|
|
232,196
|
|
||
Finished goods
|
116,624
|
|
|
124,096
|
|
||
Total inventories
|
$
|
365,586
|
|
|
$
|
376,555
|
|
ITEM 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Revenue
|
$
|
984,449
|
|
|
$
|
769,429
|
|
|
$
|
215,020
|
|
|
28
|
%
|
Gross margin %
|
65.9
|
%
|
|
62.0
|
%
|
|
|
|
|
|||||
Net income
|
$
|
217,129
|
|
|
$
|
164,504
|
|
|
$
|
52,625
|
|
|
32
|
%
|
Net income as a % of revenue
|
22.1
|
%
|
|
21.4
|
%
|
|
|
|
|
|||||
Diluted EPS
|
$
|
0.69
|
|
|
$
|
0.52
|
|
|
$
|
0.17
|
|
|
33
|
%
|
|
Three Months Ended
|
|||||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|||||||||||||
|
Revenue
|
|
% of
Revenue
|
|
Y/Y%
|
|
Revenue
|
|
% of
Revenue*
|
|||||||
Industrial
|
$
|
401,481
|
|
|
41
|
%
|
|
15
|
%
|
|
$
|
348,402
|
|
|
45
|
%
|
Automotive
|
138,585
|
|
|
14
|
%
|
|
10
|
%
|
|
126,355
|
|
|
16
|
%
|
||
Consumer
|
270,408
|
|
|
27
|
%
|
|
113
|
%
|
|
126,838
|
|
|
16
|
%
|
||
Communications
|
173,975
|
|
|
18
|
%
|
|
4
|
%
|
|
167,834
|
|
|
22
|
%
|
||
Total revenue
|
$
|
984,449
|
|
|
100
|
%
|
|
28
|
%
|
|
$
|
769,429
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||
* The sum of the individual percentages does not equal the total due to rounding.
|
|
Three Months Ended
|
|||||||||||||
Region
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
United States
|
$
|
430,998
|
|
|
$
|
266,669
|
|
|
$
|
164,329
|
|
|
62
|
%
|
Rest of North and South America
|
22,957
|
|
|
20,712
|
|
|
2,245
|
|
|
11
|
%
|
|||
Europe
|
226,335
|
|
|
216,716
|
|
|
9,619
|
|
|
4
|
%
|
|||
Japan
|
88,891
|
|
|
70,222
|
|
|
18,669
|
|
|
27
|
%
|
|||
China
|
152,983
|
|
|
138,723
|
|
|
14,260
|
|
|
10
|
%
|
|||
Rest of Asia
|
62,285
|
|
|
56,387
|
|
|
5,898
|
|
|
10
|
%
|
|||
Total revenue
|
$
|
984,449
|
|
|
$
|
769,429
|
|
|
$
|
215,020
|
|
|
28
|
%
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Gross margin
|
$
|
648,504
|
|
|
$
|
477,293
|
|
|
$
|
171,211
|
|
|
36
|
%
|
Gross margin %
|
65.9
|
%
|
|
62.0
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
R&D expenses
|
$
|
183,954
|
|
|
$
|
157,428
|
|
|
$
|
26,526
|
|
|
17
|
%
|
R&D expenses as a % of revenue
|
18.7
|
%
|
|
20.5
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
SMG&A expenses
|
$
|
130,659
|
|
|
$
|
107,462
|
|
|
$
|
23,197
|
|
|
22
|
%
|
SMG&A expenses as a % of revenue
|
13.3
|
%
|
|
14.0
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Amortization expenses
|
$
|
18,160
|
|
|
$
|
17,358
|
|
|
$
|
802
|
|
|
5
|
%
|
Amortization expenses as a % of revenue
|
1.8
|
%
|
|
2.3
|
%
|
|
|
|
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Operating income
|
$
|
266,268
|
|
|
$
|
195,045
|
|
|
$
|
71,223
|
|
|
37
|
%
|
Operating income as a % of revenue
|
27.0
|
%
|
|
25.3
|
%
|
|
|
|
|
|
Three Months Ended
|
||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
||||||
Interest expense
|
$
|
42,614
|
|
|
$
|
13,062
|
|
|
$
|
29,552
|
|
Interest income
|
(10,000
|
)
|
|
(3,199
|
)
|
|
(6,801
|
)
|
|||
Other, net
|
345
|
|
|
3,005
|
|
|
(2,660
|
)
|
|||
Total nonoperating expense
|
$
|
32,959
|
|
|
$
|
12,868
|
|
|
$
|
20,091
|
|
|
Three Months Ended
|
||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
||||||
Provision for income taxes
|
$
|
16,180
|
|
|
$
|
17,673
|
|
|
$
|
(1,493
|
)
|
Effective income tax rate
|
6.9
|
%
|
|
9.7
|
%
|
|
|
|
Three Months Ended
|
|||||||||||||
|
January 28, 2017
|
|
January 30, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Net Income
|
$
|
217,129
|
|
|
$
|
164,504
|
|
|
$
|
52,625
|
|
|
32
|
%
|
Net Income as a % of revenue
|
22.1
|
%
|
|
21.4
|
%
|
|
|
|
|
|||||
Diluted EPS
|
$
|
0.69
|
|
|
$
|
0.52
|
|
|
|
|
|
|
Three Months Ended
|
||||||
|
January 28, 2017
|
|
January 30, 2016
|
||||
Net cash provided by operating activities
|
$
|
314,492
|
|
|
$
|
219,705
|
|
Net cash provided by operations as a % of revenue
|
31.9
|
%
|
|
28.6
|
%
|
||
Net cash provided by (used for) investing activities
|
$
|
1,769,754
|
|
|
$
|
(204,365
|
)
|
Net cash provided by financing activities
|
$
|
1,982,551
|
|
|
$
|
571,781
|
|
|
January 28, 2017
|
|
October 29, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Accounts receivable, net
|
$
|
472,511
|
|
|
$
|
477,609
|
|
|
$
|
(5,098
|
)
|
|
(1
|
)%
|
Days sales outstanding*
|
44
|
|
|
42
|
|
|
|
|
|
|||||
Inventory
|
$
|
365,586
|
|
|
$
|
376,555
|
|
|
$
|
(10,969
|
)
|
|
(3
|
)%
|
Days cost of sales in inventory*
|
101
|
|
|
104
|
|
|
|
|
|
|
|
|
|
Payment due by period
|
||||||||||||||||
(thousands)
|
|
Total
|
|
Less than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than
5 Years
|
||||||||||
Contractual obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Debt obligations
|
|
2,100,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,100,000
|
|
|||||
Interest payments associated with debt obligations
|
|
710,313
|
|
|
69,938
|
|
|
139,875
|
|
|
139,875
|
|
|
360,625
|
|
|||||
Total
|
|
$
|
2,810,313
|
|
|
$
|
69,938
|
|
|
$
|
139,875
|
|
|
$
|
139,875
|
|
|
$
|
2,460,625
|
|
ITEM 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
ITEM 4.
|
Controls and Procedures
|
ITEM 1A.
|
Risk Factors
|
•
|
the inability to successfully integrate the respective businesses of the two companies in a manner that permits the combined company to achieve the cost savings and operating synergies anticipated to result from the acquisition, which could result in the anticipated benefits of the acquisition not being realized partly or wholly in the time frame currently anticipated or at all;
|
•
|
lost sales and customers as a result of certain customers of either or both of the two companies deciding not to do business with the combined company, or deciding to decrease their amount of business in order to reduce their reliance on a single company;
|
•
|
integrating personnel and IT systems from the two companies while maintaining focus on providing consistent, high quality products and services;
|
•
|
potential unknown liabilities and unforeseen increased expenses, delays or regulatory conditions associated with the acquisition; and
|
•
|
performance shortfalls at one or both of the two companies as a result of the diversion of management’s attention caused by completing the acquisition and integrating the companies’ operations.
|
•
|
the effects of adverse economic conditions in the markets in which we sell our products;
|
•
|
changes in customer demand for our products and/or for end products that incorporate our products;
|
•
|
the timing, delay, reduction or cancellation of significant customer orders and our ability to manage inventory;
|
•
|
fluctuations in customer order patterns and seasonality;
|
•
|
our ability to effectively manage our cost structure in both the short term and over a longer duration;
|
•
|
changes in geographic, product or customer mix;
|
•
|
changes in our effective tax rates in the United States, Ireland or worldwide;
|
•
|
the timing of new product announcements or introductions by us, our customers or our competitors and the market acceptance of such products;
|
•
|
competitive pricing pressures;
|
•
|
fluctuations in manufacturing yields, adequate availability of wafers and other raw materials, and manufacturing, assembly and test capacity;
|
•
|
the ability of our third-party suppliers, subcontractors and manufacturers to supply us with sufficient quantities of raw materials, products and/or components;
|
•
|
a decline in infrastructure spending by foreign governments, including China;
|
•
|
a decline in the U.S. Government defense budget, changes in spending or budgetary priorities, a prolonged U.S. Government shutdown or delays in contract awards;
|
•
|
any significant decline in our backlog;
|
•
|
our ability to recruit, hire, retain and motivate adequate numbers of engineers and other qualified employees to meet the demands of our customers;
|
•
|
our ability to generate new design opportunities and win competitive bid selection processes;
|
•
|
the increasing costs of providing employee benefits, including health insurance, retirement plan and pension plan contributions and retirement benefits;
|
•
|
our ability to utilize our manufacturing facilities at efficient levels;
|
•
|
potential significant litigation-related costs or product warranty and/or indemnity claims, including those not covered by our suppliers or insurers;
|
•
|
the difficulties inherent in forecasting future operating expense levels, including with respect to costs associated with labor, utilities, transportation and raw materials;
|
•
|
the costs related to compliance with increasing worldwide government, environmental and social responsibility regulations;
|
•
|
new accounting pronouncements or changes in existing accounting standards and practices; and
|
•
|
the effects of public health emergencies, natural disasters, widespread travel disruptions, security risks, terrorist activities, international conflicts, government sanctions, changes in law, including executive orders, and other events beyond our control.
|
•
|
seek additional financing in the debt or equity markets;
|
•
|
refinance or restructure all or a portion of our indebtedness;
|
•
|
borrow under our the Revolving Credit Facility;
|
•
|
divert funds that would otherwise be invested in our operations;
|
•
|
repatriate earnings at higher tax rates that are indefinitely reinvested in foreign locations;
|
•
|
sell selected assets; or
|
•
|
reduce or delay planned capital expenditures or operating expenditures.
|
•
|
difficulty or delay integrating acquired technologies, operations and personnel with our existing businesses;
|
•
|
diversion of management's attention in connection with both negotiating the transaction and integrating the assets;
|
•
|
strain on managerial and operational resources as management tries to oversee larger or more complex operations;
|
•
|
the future funding requirements for acquired companies, which may be significant;
|
•
|
potential loss of key employees;
|
•
|
exposure to unforeseen liabilities of acquired companies;
|
•
|
higher than expected or unexpected costs relating to or associated with an acquisition and integration of assets;
|
•
|
difficulty realizing synergies and growth prospects of an acquisition in a timely manner or at all; and
|
•
|
increased risk of costly and time-consuming litigation.
|
•
|
political, legal and economic changes or instability and civil unrest in foreign markets;
|
•
|
currency conversion risks and exchange rate and interest rate fluctuations;
|
•
|
limitations on the repatriation of earnings;
|
•
|
trade and travel restrictions or government sanctions, including import or export tariffs or restrictions imposed by the U.S. government on trading with parties in foreign countries;
|
•
|
complex, varying and changing government regulations and legal standards and requirements, particularly with respect to price protection, competition practices, export control regulations and restrictions, customs and tax requirements, immigration, anti-boycott regulations, data privacy, intellectual property, anti-corruption and environmental compliance, including U.S. customs and export regulations and restrictions, including International Traffic in Arms Regulations and the Foreign Corrupt Practices Act;
|
•
|
economic disruption from terrorism and threats of terrorism and the response to them by the U.S. and its allies;
|
•
|
increased managerial complexities, including different employment practices and labor issues;
|
•
|
greater difficulty enforcing intellectual property rights and weaker laws protecting such rights;
|
•
|
natural disasters or pandemics;
|
•
|
transportation disruptions and delays and increases in labor and transportation costs;
|
•
|
changes to foreign taxes, tariffs and freight rates;
|
•
|
fluctuations in raw material costs and energy costs;
|
•
|
greater difficulty in accounts receivable collections and longer collection periods; and
|
•
|
costs associated with our foreign defined benefit pension plans.
|
•
|
global economic conditions generally;
|
•
|
crises in global credit, debt and financial markets;
|
•
|
actual or anticipated fluctuations in our revenue and operating results;
|
•
|
changes in financial estimates or other statements made by securities analysts or others in analyst reports or other publications or our failure to perform in line with those estimates or statements or our published guidance;
|
•
|
financial results and prospects of our customers;
|
•
|
U.S. and foreign government actions;
|
•
|
changes in market valuations of other semiconductor companies;
|
•
|
rumors and speculation in the press, investment community or on social media about us, our customers or other companies in our industry;
|
•
|
announcements by us, our customers or our competitors of significant new products, technical innovations, material transactions, acquisitions or dispositions, litigation, capital commitments or revised earnings estimates;
|
•
|
departures of key personnel;
|
•
|
alleged noncompliance with laws, regulations or ethics standards by us or any of our employees, officers or directors; and
|
•
|
negative media publicity targeting us or our suppliers, customers or competitors.
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
Total Number of
Shares Purchased
(a)
|
|
Average Price
Paid Per Share (b)
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs (c)
|
|
Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under
the Plans or
Programs
|
||||||
October 30, 2016 through November 26, 2016
|
28,777
|
|
|
$
|
65.41
|
|
|
—
|
|
|
$
|
792,501,619
|
|
November 27, 2016 through December 24, 2016
|
1,132
|
|
|
$
|
73.62
|
|
|
—
|
|
|
$
|
792,501,619
|
|
December 25, 2016 through January 28, 2017
|
15,378
|
|
|
$
|
74.17
|
|
|
—
|
|
|
$
|
792,501,619
|
|
Total
|
45,287
|
|
|
$
|
68.59
|
|
|
—
|
|
|
$
|
792,501,619
|
|
(a)
|
Consists of 45,287 shares withheld by us from employees to satisfy minimum employee tax obligations upon vesting of restricted stock units granted to our employees under our equity compensation plans.
|
(b)
|
The average price paid for shares in connection with vesting of restricted stock units are averages of the closing stock price at the vesting date which is used to calculate the number of shares to be withheld.
|
(c)
|
Shares repurchased pursuant to the stock repurchase program publicly announced on August 12, 2004. On February 15, 2016, the Board of Directors of the Company approved an increase to the current authorization for the stock repurchase program by $600.0 million to $1.0 billion in the aggregate. In the aggregate, our Board of Directors has authorized us to repurchase $6.2 billion of our common stock under the program. Under the repurchase program, we may repurchase outstanding shares of our common stock from time to time in the open market and through privately negotiated transactions. Unless terminated earlier by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the repurchase program.
|
ITEM 6.
|
Exhibits
|
|
ANALOG DEVICES, INC.
|
||
|
|
|
|
Date: February 15, 2017
|
By:
|
|
/
S
/ V
INCENT
R
OCHE
|
|
|
|
Vincent Roche
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Date: February 15, 2017
|
By:
|
|
/
S
/ D
AVID
A. Z
INSNER
|
|
|
|
David A. Zinsner
|
|
|
|
Senior Vice President, Finance
|
|
|
|
and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
Exhibit Index
|
||
Exhibit No.
|
|
Description
|
4.1
|
|
Supplemental Indenture, dated December 5, 2016, between Analog Devices, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, filed as exhibit 4.2 to the Company's Current Report on Form 8-K (File No. 1-7819) as filed with the Commission on December 5, 2016 and incorporated herein by reference.
|
10.1†
|
|
Form of Global Non-Qualified Stock Option Agreement for Employees for usage under the Analog Devices, Inc. Amended and Restated 2006 Stock Incentive Plan.
|
10.2†
|
|
Form of Global Restricted Stock Unit Agreement for Employees for usage under the Analog Devices, Inc. Amended and Restated 2006 Stock Incentive Plan.
|
10.3†
|
|
Form of Performance Restricted Stock Unit Agreement for Employees for usage under the Analog Devices, Inc. Amended and Restated 2006 Stock Incentive Plan.
|
10.4†
|
|
Form of Global Non-Qualified Stock Option Agreement for Directors for usage under the Analog Devices, Inc. Amended and Restated 2006 Stock Incentive Plan.
|
10.5†
|
|
Form of Restricted Stock Unit Agreement for Directors for usage under the Analog Devices, Inc. Amended and Restated 2006 Stock Incentive Plan.
|
31.1†
|
|
Certification Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer).
|
31.2†
|
|
Certification Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer).
|
32.1†
|
|
Certification Pursuant to 18 U.S.C. Section 1350 (Chief Executive Officer).
|
32.2†
|
|
Certification Pursuant to 18 U.S.C. Section 1350 (Chief Financial Officer).
|
101.INS
|
|
XBRL Instance Document.**
|
101.SCH
|
|
XBRL Schema Document.**
|
101.CAL
|
|
XBRL Calculation Linkbase Document.**
|
101.LAB
|
|
XBRL Labels Linkbase Document.**
|
101.PRE
|
|
XBRL Presentation Linkbase Document.**
|
101.DEF
|
|
XBRL Definition Linkbase Document.**
|
†
|
|
Filed or furnished herewith.
|
**
|
|
Submitted electronically herewith.
|
1.
|
Grant of Option
. Subject to the terms and conditions of the Plan and this Agreement, the Company has granted to the Optionee an Option to purchase that number of shares of the Company’s Common Stock (the “Option Shares”) effective on the Date of Grant set forth below:
|
2.
|
Vesting and Exercise of Option
. Subject to the Optionee’s continued employment with the Company or the Employer (as defined in 3(h) below) and other limitations set forth in this Agreement and the Plan, the Option will vest as to a set number of shares on each of the vesting dates set out in the following schedule:
|
3.
|
Term of Option; Termination of Employment
.
|
(a)
|
The term of the Option is ten (10) years after the Date of Grant, subject, however, to the early termination provisions set forth herein.
|
(b)
|
Except as otherwise provided herein, the Option shall be exercisable by the Optionee (or his or her successor in interest) following the termination of the Optionee’s employment only to the extent that the Option was vested on or prior to the date of such termination.
|
(c)
|
The vesting of the Option shall terminate on the date the Optionee
voluntarily terminates
employment with the Company or the Employer (as defined in Section 3(h))(except by reason of retirement after attaining age 60 as provided below) or on the date his or her employment is terminated by the Company or the Employer without “Cause” (as defined in paragraph d), but any Option Shares that are vested on the date of such termination shall continue to be exercisable for a period of three (3) months following such termination date.
|
(d)
|
The Option shall terminate on the date the Optionee’s employment with the Company or the Employer is terminated by the Company or one of its subsidiaries
for “Cause
”, and all Option Shares that are then vested shall forthwith cease to be exercisable. “Cause” for this purpose means unsatisfactory job performance (as determined by the Company), willful misconduct, fraud, gross negligence, disobedience or dishonesty, or as otherwise determined under applicable law.
|
(e)
|
Upon the
death
of the Optionee while he or she is an employee of the Company or the Employer, the Option shall become immediately vested in full as to all shares on the date of death and shall continue to be exercisable (by the Optionee’s successor in interest) over the remaining term of the Option.
|
(f)
|
If the Optionee’s employment with the Company or the Employer terminates by reason of the retirement of the Optionee after attaining age 60, the vesting of the Option shall terminate on the date of such retirement, but any Option Shares that are vested on the date of such retirement shall continue to be exercisable over the remaining term of the Option; provided that all then-exercisable Option Shares held by such Optionee shall immediately cease to be exercisable in the event that such Optionee becomes an employee of any competitor of the Company or the Employer (as determined in the sole discretion of the Company).
|
(g)
|
If the Optionee becomes
Disabled
, regardless of whether Optionee terminates employment with the Company or the Employer, the Option shall vest and become exercisable in full on the date the Optionee is determined to be Disabled and shall continue to be exercisable until the date that is ten (10) years after the Date of Grant, at which time the Option shall terminate. “Disabled” with respect to the Optionee means, when and if, as a result of disease, injury or mental disorder, the Optionee is incapable of engaging in regular service or occupation with the Company or the Employer (as defined in paragraph h) which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined by the Company.
|
(h)
|
For purposes of this Agreement, employment shall include being an employee with the Company. Employment shall also include being an employee with any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such parent or subsidiary of the Company (the “Employer”). Should an Optionee transfer employment to become a director, consultant or advisor to the Company or the Employer following the Date of Grant, he or she will be considered employed for vesting purposes until he or she ceases to provide services to the Company or any direct or indirect parent or subsidiary of the company, or any successor to the Company or any such parent or subsidiary of the Company.
|
(i)
|
Notwithstanding the provisions in this Section 3,
if the Company or the Employer develops a good faith belief that any provision in this Section 3 may be found to be unlawful, discriminatory or against public policy in any relevant jurisdiction, then the Company in its sole discretion may choose not to apply such provision to this Option, nor any Option grant in the Optionee’s jurisdiction.
|
4.
|
Payment of Exercise Price
. The following payment methods may be used to purchase Option Shares:
|
(a)
|
A cashless exercise in a manner described in Section 5(f)(2) of the Plan.
|
(b)
|
Cash or check payable to the Company.
|
(c)
|
Delivery by the Optionee of shares of Common Stock of the Company (by actual delivery or attestation) in accordance with Section 5(f)(3) of the Plan.
|
(d)
|
Any combination of the above methods.
|
5.
|
Non-Transferability of Option
. Except in the event of death (whether by beneficiary designation or by will or the laws of descent and distribution) or as permitted by the Plan, this Option is personal and no rights granted hereunder shall be transferred, assigned, pledged, or hypothecated in any way (whether by operation of law or otherwise), nor shall any such rights be subject to execution, attachment or similar process.
|
6.
|
Adjustment
. This Option is subject to adjustment (including with respect to vesting of the Option Shares) upon certain changes in the Company’s Common Stock and certain other events, including a Change in Control Event or a Reorganization Event, as provided in Section 11 of the Plan.
|
7.
|
Withholding Taxes
. Regardless of any action the Company or the Employer, if different, takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax related items related to the Optionee’s participation in the Plan and legally applicable to the Optionee (“Tax-Related Items”), the Optionee acknowledges that the ultimate liability for all Tax-Related Items is and remains the Optionee’s responsibility and may exceed the amount actually withheld by the Company or the Employer. The Optionee further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant, vesting or exercise of the Option, the subsequent sale of Option Shares acquired pursuant to such exercise and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Optionee’s liability for Tax-Related Items
|
8.
|
Nature of Grant
. In accepting the Option, the Optionee acknowledges, understands and agrees that:
|
(a)
|
the Plan is established voluntarily by the Company, it is discretionary in nature, and may be amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
|
(b)
|
the grant of the Option is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted repeatedly in the past;
|
(c)
|
all decisions with respect to future option grants, if any, will be at the sole discretion of the Company;
|
(d)
|
the Optionee’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Employer to terminate the Optionee’s employment or service relationship (if any) at any time;
|
(e)
|
the Optionee is voluntarily participating in the Plan;
|
(f)
|
the Option and any Option Shares acquired under the Plan, and the income and value of same, are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or the Employer;
|
(g)
|
the Option grant and the Optionee’s participation in the Plan will not be interpreted to form or amend an employment or service contract or relationship with the Company or the Employer;
|
(h)
|
the future value of the Option Shares underlying the Option is unknown, indeterminable, and cannot be predicted with certainty;
|
(i)
|
if the underlying Option Shares do not increase in value, the Option will have no value;
|
(j)
|
if the Optionee exercises the Option and acquires Option Shares, the value of such Option Shares may increase or decrease in value, even below the Exercise Price;
|
(k)
|
for Optionees who reside outside the U.S. and/or the Company is not the Optionee's employer, the following additional provisions shall apply:
|
a.
|
the Option and any Option Shares acquired under the Plan, and the income and value of same, are not intended to replace any pension rights or compensation;
|
b.
|
the Option and any Option Shares acquired under the Plan are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and which is outside the scope of the Optionee’s employment or service contract, if any;
|
c.
|
the Optionee acknowledges and agrees that neither the Company nor the Employer shall be liable for any foreign exchange rate fluctuation between the Optionee’s local currency and the United States Dollar that may affect the value of the Option or of any amounts due to the Optionee pursuant to the exercise of the Option or the subsequent sale of any Option Shares acquired upon exercise; and
|
d.
|
no claim or entitlement to compensation or damages shall arise from forfeiture of the Option resulting from termination of the Optionee’s employment by the Company or the Employer (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Optionee is employed or the terms of Optionee’s employment agreement, if any) and in consideration of the grant of the Option to which the Optionee is otherwise not entitled, the Optionee irrevocably agrees never to institute any claim against the Company or the Employer and waives his or her ability, if any, to bring such a claim, and releases the Company and the Employer from any such claim; if notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Optionee shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claims.
|
9.
|
No Advice Regarding Grant
. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Optionee’s participation in the Plan, or the Optionee’s acquisition or sale of the underlying Option Shares. The Optionee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
|
10.
|
Data Privacy
. The Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data set forth in this Agreement and any other Option grant materials by and among, as applicable, the Employer, the Company and its subsidiaries for the exclusive purpose of implementing, administering and managing the Optionee’s participation in the Plan.
|
11.
|
Binding Effect
. This Agreement shall be binding upon and inure to the benefit of the Company and the Optionee and his or her
respective
heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 5 of this Agreement.
|
12.
|
Notice
. Each notice relating to this Award shall be in writing (which shall include electronic form) and delivered in person, electronically or by first class mail, postage prepaid, to the address as hereinafter provided. Each notice shall be deemed to have been given on the date it is received. Each notice to the Company shall be addressed to it at its offices at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062 U.S.A., Attention: Stock Plan Administrator, Treasury Department. Each notice to the Optionee shall be addressed to the Optionee at the Optionee’s last known mailing or email address, as applicable, on the records of the Company.
|
13.
|
Pronouns
. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.
|
14.
|
Entire Agreement
. This Agreement and the Plan constitute the entire understanding between the parties, and supersede all prior agreements and understandings, relating to the subject matter of these documents.
|
15.
|
Governing Law
. This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws.
|
16.
|
Compliance with Law
. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Option Shares, the Company shall not be required to deliver any shares issuable upon exercise of the Option prior to the completion of any registration or qualification of the Option Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Optionee understands that the Company is under no obligation to register or qualify the Option Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Option Shares. The Optionee also understands and agrees that the Awards granted under the Plan, including the Options and the underlying Option Shares, are subject to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and any SEC regulations, as now or hereafter in effect. Further, the Optionee agrees that the Company shall have unilateral authority to amend the Plan and this Agreement without the Optionee’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Option Shares.
|
17.
|
Interpretation
. The interpretation and construction of any terms or conditions of this Agreement or the Plan, or other matters related to the Plan, by the Compensation Committee of the Board of the Company shall be final and conclusive.
|
18.
|
Optionee’s Acceptance
. The Optionee is urged to read this Agreement carefully and to consult with his or her own legal counsel regarding the terms and consequences of this Agreement and the legal and binding effect of this Agreement. By virtue of his or her acceptance of this Option, the Optionee is deemed to have accepted and agreed to all of the terms and conditions of this Agreement and the provisions of the Plan.
|
19.
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Optionee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
|
20.
|
Language
. If the Optionee has received this Agreement, or any other document related to the Option and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
|
21.
|
Severability
. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
22.
|
Appendix
. The Option shall be subject to any special provisions set forth in the Appendix for the Optionee’s country of residence, if any. If the Optionee relocates to one of the countries included in the Appendix during the life of the Option, the special provisions for such country shall apply to the Optionee, to the extent the Company determines that the application of such
|
23.
|
Additional Requirements
. The Company reserves the right to impose other requirements on the Option and the Option Shares purchased upon exercise of the Option, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Optionee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
|
24.
|
Private Placement
. The Company has submitted filings in the United States in connection with the stock incentive plan under which this Option was made. The Company has not submitted any registration statement, prospectus or other filings with other local securities authorities (unless otherwise required under such local law), and the grant of the Option is not intended to be a public offering of securities in any other jurisdiction or subject to the supervision of other local securities authorities.
|
25.
|
Insider Trading Restrictions/Market Abuse Laws
. The Optionee acknowledges that, depending on his or her country of residence, the Optionee may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect Optionee’s ability to, directly or indirectly, acquire, sell, or attempt to sell Option Shares or rights to Option Shares under the Plan during such times as Optionee is considered to have “inside information” regarding the Company (as defined by the laws in the applicable jurisdictions or the Optionee’s country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. The Optionee acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Optionee is advised to speak to his or her personal advisor on this matter.
|
26.
|
Foreign Asset/Account, Exchange Control, and Tax Reporting
. Depending on the Optionee’s country, the Optionee may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the exercise of the Option, the acquisition, holding, and/or transfer of Option Shares or cash resulting from participation in the Plan and/or the opening and maintenance of a brokerage or bank account in connection with the Plan. The Optionee may be required to report such assets, accounts, account balances and values and/or related transactions to the applicable authorities in his or her country. The Optionee acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements. The Optionee further understands that he or she should consult the Optionee’s personal legal advisor on these matters.
|
27.
|
Waiver
. The Optionee acknowledges that a waiver by the Company or breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Optionee or any other optionee.
|
s
|
V
|
1.
|
Grant of Restricted Stock Unit
.
|
2.
|
Vesting and Conversion
.
|
(a)
|
Subject to the terms of the Plan and this Agreement, the RSUs shall vest in accordance with the schedule set forth in Section 1. For purposes of this Agreement, RSUs that have not vested as of any particular time in accordance with this Section 2(a) are referred to as “Unvested RSUs.” The shares of Common Stock that are issuable upon the vesting and conversion of the RSUs are referred to in this Agreement as “Shares.” As soon as administratively practicable after the issuance of any Shares upon the vesting and conversion of RSUs, and subject to the terms and conditions set forth herein, the Company shall deliver or cause to be delivered evidence (which may include a book entry by the Company’s transfer agent) of the Shares so issued in the name of the Participant to the brokerage firm designated by the Company to maintain the brokerage account established for the Participant. Notwithstanding the foregoing, the Company shall not be obligated to issue Shares to or in the name of the Participant upon the vesting and conversion of any RSUs unless the issuance of such Shares shall comply with all relevant provisions of law and other legal requirements including, without limitation, any applicable securities laws and the requirements of any stock exchange upon which shares of Common Stock may then be listed.
|
(b)
|
In the event the Participant’s employment with the Company or the Employer (as defined in Section 2(e)) is terminated either by the Participant, the Company, or the Employer for any reason or no reason (other than due to death or disability or as otherwise provided in the Plan or below), then in each such case, all of the Unvested RSUs as of the date of termination shall terminate and be cancelled immediately and automatically and the Participant shall have no further rights with respect to such Unvested RSUs.
|
(c)
|
In the event the Participant’s employment with the Company or the Employer is terminated by reason of the Participant’s
death
, all Unvested RSUs shall vest in full as of the date of the Participant’s death.
|
(d)
|
In the event the Participant’s becomes
Disabled
, regardless of whether the Participant’s terminates employment with the Company or the Employer, all Unvested RSUs shall vest in full as of the date the Participant is determined to be Disabled. “Disabled” with respect to the Participant means, when and if, as a result of disease, injury or mental disorder, the Participant is incapable of engaging in regular service or occupation with the Company or the Employer (as defined in paragraph e) which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined by the Company.
|
(e)
|
For purposes of this Agreement, employment shall include being an employee with the Company. Employment shall also include being an employee with any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such
|
3.
|
Restrictions on Transfer
.
|
(a)
|
The Participant shall not sell, assign, transfer, pledge or otherwise encumber any RSUs, either voluntarily or by operation of law.
|
(b)
|
The Company shall not be required (i) to transfer on its books any of the RSUs which have been transferred in violation of any of the provisions set forth herein or (ii) to treat as the owner of such RSUs any transferee to whom such RSUs have been transferred in violation of any of the provisions contained herein.
|
4.
|
Not a Shareholder
. The RSUs represent an unfunded, unsecured promise by the Company to deliver Shares upon vesting and conversion of the RSUs, and until vesting of the RSUs and issuance of the Shares, the Participant shall not have any of the rights of a shareholder with respect to the Shares underlying the RSUs. For the avoidance of doubt, the Participant shall have no right to receive any dividends and shall have no voting rights with respect to the Shares underlying the RSUs for which the record date is on or before the date on which the Shares underlying the RSUs are issued to the Participant.
|
5.
|
Provisions of the Plan
. The RSUs and Shares, including the grant and issuance thereof, are subject to the provisions of the Plan. A copy of the Plan prospectus is available on the Company’s Intranet at http://signals.corpnt.analog.com/default.aspx. (From Signals home page, click Knowledge Centers, HR, Employee Stock Programs. The related documents can be found in the right-hand column). If the Participant is unable to access this information via the Intranet, the Company’s or the Participant’s regional stock plan administrator can provide the Participant with copies.
|
6.
|
Withholding Taxes
.
|
(a)
|
Regardless of any action the Company and/or the Employer, if different, takes with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally applicable to the Participant is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer. The Participant further acknowledges that the Company and the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including the grant of the RSUs, the vesting of the RSUs, the subsequent sale of any Shares acquired pursuant to the RSUs and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant becomes subject to Tax-Related Items in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, the Participant acknowledges that the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
|
(b)
|
Prior to any relevant taxable or tax withholding event, as applicable, the Participant will pay or make adequate arrangements satisfactory to the Company to satisfy all Tax-Related Items. In this regard, the Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the methods set forth below:
|
(i)
|
the Company may withhold a sufficient number of whole Shares otherwise issuable upon the vesting of the RSUs that have an aggregate Fair Market Value (as defined under the Plan) sufficient to pay the minimum Tax-Related Items required to be withheld with respect to the Shares. The cash equivalent of the Shares withheld will be used to settle the obligation to withhold the Tax-Related Items (determined by reference to the closing price of the Common Stock on the NASDAQ Global Select Market on the applicable vesting date); or
|
(ii)
|
the Company may, in its discretion, withhold any amount necessary to pay the Tax-Related Items from the Participant’s salary or other amounts payable to the Participant; or
|
(iii)
|
the Company may withhold from proceeds of the sale of Shares either through a voluntary sale or through a mandatory sale arranged by the Company
(on the Participant’s behalf pursuant to this authorization);
|
7.
|
Option of Company to Deliver Cash
. Notwithstanding any of the other provisions of this Agreement, and except as set forth in Appendix A, where share settlement is otherwise prohibited under local law or may present adverse tax consequences to the Participant, at the time the RSUs vest, the Company may elect, in the sole discretion of the Compensation Committee of the Board, to deliver by wire transfer to the Participant in lieu of Shares an equivalent amount of cash (determined by reference to the closing price of the Common Stock on the NASDAQ Global Select Market on the applicable vesting date). If the Company elects to deliver cash to the Participant, the Company is authorized to retain such amount as is sufficient in the opinion of the Company to satisfy the Tax-Related Items withholding obligations of the Company pursuant to Section 6 herein.
|
8.
|
Data Privacy
. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data set forth in this Agreement and any other RSU grant materials by and among, as applicable, the Employer, the Company and its subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.
|
9.
|
Repatriation and Other Legal Requirements
. The Participant agrees as a condition of the grant of the RSUs, as applicable, to repatriate all payments attributable to the Shares and/or cash acquired under the Plan (including, but not limited to, dividends and any proceeds derived from the sale of the Shares acquired pursuant to the RSUs) in accordance with all foreign exchange rules and regulations applicable to the Participant. In addition, the Participant also agrees to take any and all actions, and consent to any and all actions taken by the Company and its subsidiaries, as may be required to allow the Company and its subsidiaries to comply with all laws, rules and regulations
|
10.
|
Miscellaneous
.
|
(a)
|
No Rights to Employment
. The grant of the RSUs shall not confer upon the Participant any right to continue in the employ of the Company or the Employer, nor limit in any way the right of the Company or the Employer to terminate the Participant’s employment at any time. Except in the event of disability or a termination of employment due to death, the vesting of the RSUs pursuant to Section 2 hereof is earned only by satisfaction of the performance conditions, if any, and continuing service as an employee at the will of the Company or the Employer (not through the act of being hired or engaged or being granted the RSUs hereunder).
|
(b)
|
Discretionary Nature
. The Participant acknowledges and agrees that the Plan is discretionary in nature and may be amended, cancelled, or terminated by the Company at any time, to the extend permitted under the Plan. The Participant’s participation in the Plan is voluntary. The grant of the RSUs under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of RSUs or any other award under the Plan or other benefits in lieu thereof in the future. Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of any grant, the number of Shares subject to the grant, and the vesting provisions. Any amendment, modification or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant’s employment with the Company or the Employer. The RSUs and income from such RSUs shall not be included in any calculation of severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments. The grant of RSUs should in no event be considered as compensation for, or relating in any way to, past services for the Company or the Employer.
|
(c)
|
Exclusion from Termination Indemnities and Other Benefits
. This Section 10(c) applies if the Participant resides outside the U.S.: The value of the RSUs and any other awards granted under the Plan is an extraordinary item of compensation outside the scope of the Participant’s employment with the Company or the Employer (and the Participant’s employment contract, if any). Any grant under the Plan, including the grant of the RSUs and the income and value of same, is not part of normal or expected compensation or salary. Further, the RSUs and the Shares, and the income and value of same, are not intended to replace any pension rights or compensation.
|
(d)
|
No Entitlement
. This Section 10(d) applies if the Participant resides outside the U.S. and/or the Company is not the Participant's employer: In consideration of the grant of RSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from termination of the Participant’s employment with the Company or the Employer (regardless of the reason for such termination and whether or not later to be found invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment contract, if any) and the Participant irrevocably releases the Company from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, the Participant shall be deemed irrevocably to have waived the Participant’s entitlement to pursue such claim.
|
(e)
|
Exchange Rates
. This Section 10(e) applies if the Participant resides outside the U.S.: The Participant acknowledges and agrees that neither the Company nor the Employer shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Participant pursuant to the vesting and settlement of the RSUs or the subsequent sale of any Shares.
|
(f)
|
Future Value of Shares
. The future value of the underlying Shares is unknown, indeterminable, and cannot be predicted with certainty.
|
(g)
|
Severability
. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
|
(h)
|
Binding Effect
. This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and his or her respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this Agreement.
|
(i)
|
Notice
. Each notice relating to this Award shall be in writing (which shall include electronic form) and delivered in person, electronically or by first class mail, postage prepaid, to the address as hereinafter provided. Each notice shall be deemed to have been given on the date it is received. Each notice to the Company shall be addressed to it at its offices at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062 U.S.A., Attention: Stock Plan Administrator, Treasury Department. Each notice to the Participant shall be addressed to the Participant at the Participant’s last known mailing or email address, as applicable, on the records of the Company.
|
(j)
|
Pronouns
. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.
|
(k)
|
Entire Agreement
. This Agreement and the Plan constitute the entire understanding between the parties, and supersede all prior agreements and understandings, relating to the subject matter of these documents.
|
(l)
|
Governing Law
. This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws.
|
(m)
|
Compliance with Laws
. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. The Participant also understands and agrees that the Awards granted under the Plan, including the RSUs and the underlying Shares, are subject to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and any SEC regulations, as now or hereafter in effect. Further, the Participant agrees that the Company shall have unilateral authority to amend the Plan and the Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.
|
(n)
|
Interpretation
. The interpretation and construction of any terms or conditions of this Agreement or the Plan, or other matters related to the Plan, by the Compensation Committee of the Board of the Company shall be final and conclusive.
|
(o)
|
Participant’s Acceptance
. The Participant is urged to read this Agreement carefully and to consult with his or her own legal counsel regarding the terms and consequences of this Agreement and the legal and binding effect of this Agreement. By virtue of his or her acceptance of this Award, the Participant is deemed to have accepted and agreed to all of the terms and conditions of this Agreement and the provisions of the Plan.
|
(p)
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the RSUs or other awards granted to the Participant under the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
|
(q)
|
English Language
. The Participant acknowledges and agrees that it is the Participant’s express intent that this Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the RSUs, be drawn up in English. If the Participant has received this Agreement, the Plan or any other documents related to the RSUs translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.
|
(r)
|
Appendix A
. Notwithstanding any provisions herein to the contrary, if the Participant transfers the Participant’s residence and/or employment to a country other than the United States, the RSUs shall be subject to any special terms and conditions for such country as may be set forth in Appendix A to this Agreement. Moreover, if the Participant relocates to one of the countries included in Appendix A, the special terms and conditions for such country will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. Appendix A constitutes part of this Agreement.
|
(s)
|
Additional Requirements
. The Company reserves the right to impose other requirements on the RSUs, any Shares acquired pursuant to the RSUs, and the Participant’s participation in the Plan, to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable for legal or administrative reasons. Such requirements may include (but are not limited to) requiring the Participant to sign any agreements or undertakings that may be necessary to accomplish the foregoing.
|
(t)
|
Private Placement
. The Company has submitted filings in the United States in connection with the stock incentive plan under which this Award was made. The Company has not submitted any registration statement, prospectus or other filings with other local securities authorities (unless otherwise required under such local law), and the grant of the Award is not intended to be a public offering of securities in any other jurisdiction or subject to the supervision of other local securities authorities.
|
(u)
|
Changes in Capitalization
. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any non-cash distribution to holders of Common Stock, the number of RSUs, and Shares issuable upon vesting and conversion thereof, shall be appropriately adjusted in such manner as shall be determined by the Compensation Committee of the Board of the Company.
|
(v)
|
No Advice Regarding Grant
. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of Shares. The Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
|
(w)
|
Insider Trading Restrictions/Market Abuse Laws
. The Participant acknowledges that, depending on his or her country of residence, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect Participant’s ability to, directly or indirectly, acquire, sell, or attempt to sell Shares or rights to Shares under the Plan during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws in the applicable jurisdictions or the Participant’s country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. The Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Participant is advised to speak to his or her personal advisor on this matter.
|
(x)
|
Foreign Asset/Account, Exchange Control, and Tax Reporting
. Depending on the Participant’s country, the Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the vesting of the RSUs, the acquisition, holding, and/or transfer of Shares or cash resulting from participation in the Plan and/or the opening and maintenance of a brokerage or bank account in connection with the Plan. The Participant may be required to report such assets, accounts, account balances and values and/or related transactions to the applicable authorities in his or her country. The Participant acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements. The Participant further understands that he or she should consult the Participant’s personal legal advisor on these matters.
|
(y)
|
Waiver
. The Participant acknowledges that a waiver by the Company or breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant.
|
s
|
V
|
1.
|
Performance Restricted Stock Unit
.
|
2.
|
Vesting and Conversion
.
|
(a)
|
Subject to the terms of the Plan and this Agreement, the Performance RSUs shall vest in accordance with the vesting conditions set forth in Section 1 and the performance-based vesting conditions set forth in Appendix A. For purposes of this Agreement, Performance RSUs that have not vested as of the Vesting Date in accordance with this Section 2(a) and Appendix A are referred to as “Unvested Performance RSUs.” The shares of Common Stock that are issuable upon the vesting and conversion of the Performance RSUs are referred to in this Agreement as “Shares.” As soon as administratively practicable after the issuance of any Shares upon the vesting and conversion of Performance RSUs, and subject to the terms and conditions set forth in the Agreement, the Company shall deliver or cause to be delivered evidence (which may include a book entry by the Company’s transfer agent) of the Shares so issued in the name of the Participant to the brokerage firm designated by the Company to maintain the brokerage account established for the Participant or the Participant’s heirs, in the case of Section 2(c). Notwithstanding the foregoing, the Company shall not be obligated to issue Shares to or in the name of the Participant upon the vesting and conversion of any Performance RSUs unless the issuance of such Shares shall comply with all relevant provisions of law and other legal requirements including, without limitation, any applicable securities laws and the requirements of any stock exchange upon which shares of Common Stock may then be listed.
|
(b)
|
In the event the Participant’s employment with the Company or the Employer (as defined in Section 2(e)) is terminated either by the Participant, the Company, or the Employer for any reason or no reason (other than due to death or Disability), then in each such case, all of the Unvested Performance RSUs as of the date of termination shall terminate and be cancelled immediately and automatically and the Participant shall have no further rights with respect to such Unvested Performance RSUs.
|
(c)
|
As set forth in Appendix A, in the event of the Participant’s death prior to the end of the Performance Period, the Unvested Performance RSUs shall vest immediately upon death with respect to the Initial Grant Number of Shares underlying the Performance RSUs, notwithstanding that the Participant was not employed as of the Vesting Date. In the event of the Participant’s death after the end of the Performance Period, the Unvested Performance RSUs shall vest with respect to the number of Shares underlying the Performance RSUs that would have vested in accordance with Appendix A had the Participant continued employment through the Vesting Date had he or she not died.
|
(d)
|
As set forth in Appendix A, in the event the Participant becomes
Disabled
prior to the end of the Performance Period, the Unvested Performance RSUs shall vest immediately as of the date the Participant is determined to be Disabled with respect to the Initial Grant
|
(e)
|
For purposes of this Agreement, employment shall include being an employee with the Company. Employment shall also include being an employee with any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such parent or subsidiary of the Company (the “Employer”). Should a Participant transfer employment to become a director, consultant or advisor to the Company or the Employer following the Date of Grant, he or she will still be considered employed for vesting purposes until he or she ceases to provide services to the Company or any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such parent or subsidiary of the Company.
|
3.
|
Restrictions on Transfer
.
|
(a)
|
The Participant shall not sell, assign, transfer, pledge or otherwise encumber any Performance RSUs, either voluntarily or by operation of law.
|
(b)
|
The Company shall not be required (i) to transfer on its books any of the Performance RSUs which have been transferred in violation of any of the provisions set forth herein or (ii) to treat as the owner of such Performance RSUs any transferee to whom such Performance RSUs have been transferred in violation of any of the provisions contained herein.
|
4.
|
Not a Shareholder
. The Performance RSUs represent an unfunded, unsecured promise by the Company to deliver Shares upon vesting and conversion of the Performance RSUs, and until vesting of the Performance RSUs and issuance of the Shares, the Participant shall not have any of the rights of a shareholder with respect to the Shares underlying the Performance RSUs. For the avoidance of doubt, the Participant shall have no right to receive any dividends and shall have no voting rights with respect to the Shares underlying the Performance RSUs for which the record date is on or before the date on which the Shares underlying the Performance RSUs are issued to the Participant.
|
5.
|
Provisions of the Plan
. The Performance RSUs and Shares, including the grant and issuance thereof, are subject to the provisions of the Plan. A copy of the Plan prospectus is available on the Company’s Intranet at http://signals.corpnt.analog.com/default.aspx. (From Signals home page, click Knowledge Centers, HR, Employee Stock Programs. The related documents can be found in the right-hand column.) If the Participant is unable to access this information via the Intranet, the Company’s or the Participant’s regional stock plan administrator can provide the Participant with copies.
|
6.
|
Withholding Taxes
.
|
(a)
|
Regardless of any action the Company and/or the Employer, if different, takes with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally applicable to the Participant is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer. The Participant further acknowledges that the Company and the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance RSUs, including the grant of the Performance RSUs, the vesting of the Performance RSUs, the subsequent sale of any Shares acquired pursuant to the Performance RSUs and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the Performance RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant becomes subject to Tax-Related Items in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, the Participant acknowledges that the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
|
(b)
|
Prior to any relevant taxable or tax withholding event, as applicable, the Participant will pay or make adequate arrangements satisfactory to the Company to satisfy all Tax-Related Items. In this regard, the Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the methods set forth below:
|
(i)
|
the Company may withhold a sufficient number of whole Shares otherwise issuable upon the vesting of the Performance RSUs that have an aggregate Fair Market Value (as defined under the Plan) sufficient to pay the minimum Tax-Related Items required to be withheld with respect to the Shares. The cash equivalent of the Shares withheld will be used to settle the obligation to
|
(ii)
|
the Company may, in its discretion, withhold any amount necessary to pay the Tax-Related Items from the Participant’s salary or other amounts payable to the Participant; or
|
(iii)
|
the Company may withhold from proceeds of the sale of Shares either through a voluntary sale or through a mandatory sale arranged by the Company
(on the Participant’s behalf pursuant to this authorization).
|
7.
|
Option of Company to Deliver Cash
. Notwithstanding any of the other provisions of this Agreement, and except as set forth in Appendix B, where share settlement is otherwise prohibited under local law or may present adverse tax consequences to the Participant, at the time the Performance RSUs vest, the Company may elect, in the sole discretion of the Compensation Committee of the Board, to deliver by wire transfer to the Participant in lieu of Shares an equivalent amount of cash (determined by reference to the closing price of the Common Stock on the NASDAQ Global Select Market on the applicable vesting date). If the Company elects to deliver cash to the Participant, the Company is authorized to retain such amount as is sufficient in the opinion of the Company to satisfy the Tax-Related Items withholding obligations of the Company pursuant to Section 6 herein.
|
8.
|
Data Privacy
. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data set forth in this Agreement and any other RSU grant materials by and among, as applicable, the Employer, the Company and its subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.
|
9.
|
Repatriation and Other Legal Requirements
. The Participant agrees as a condition of the grant of the Performance RSUs, as applicable, to repatriate all payments attributable to the Shares and/or cash acquired under the Plan (including, but not limited to, dividends and any proceeds derived from the sale of the Shares acquired pursuant to the Performance RSUs) in accordance with all foreign exchange rules and regulations applicable to the Participant. In addition, the Participant also agrees to take any and all actions, and consent to any and all actions taken by the Company and its subsidiaries, as may be required to allow the Company and its subsidiaries to comply with all laws, rules and regulations applicable to the Participant. Finally, the Participant agrees to take any and all actions as may be required to comply with the Participant’s personal legal and tax obligations under all laws, rules and regulations applicable to the Participant.
|
10.
|
Miscellaneous
.
|
(a)
|
No Rights to Employment
. The grant of the Performance RSUs shall not confer upon the Participant any right to continue in the employ of the Company or the Employer, nor limit in any way the right of the Company or the Employer to terminate the Participant’s employment at any time. Except in the event of disability or termination of employment due to death, the vesting of the Performance RSUs pursuant to Section 2 and Appendix A, is earned only by satisfaction of the performance-based vesting conditions and continuing service as an employee at the will of the Company or the Employer through the Vesting Date (not through the act of being hired or engaged or being granted the Performance RSUs hereunder).
|
(b)
|
Discretionary Nature
. The Participant acknowledges and agrees that the Plan is discretionary in nature and may be amended, cancelled, or terminated by the Company at any time, to the extend permitted under the Plan. The Participant’s participation in the Plan is voluntary. The grant of the Performance RSUs under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of Performance RSUs or any other award under the Plan or other benefits in lieu thereof in the future. Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of any grant, the number of Shares subject to the grant, and the vesting provisions. Any amendment, modification or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant’s employment with the Company or the Employer. The Performance RSUs and income from such Performance RSUs shall not be included in any calculation of severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments. The Performance RSUs should in no event be considered as compensation for, or relating in any way to, past services for the Company or the Employer.
|
(c)
|
Exclusion from Termination Indemnities and Other Benefits
. This Section 10(c) applies if the Participant resides outside the U.S.: The value of the Performance RSUs and any other awards granted under the Plan is an extraordinary item of compensation outside the scope of the Participant’s employment with the Company or the Employer (and the Participant’s employment contract, if any). Any grant under the Plan, including the grant of the Performance RSUs and the income and value of same, is not part of normal or expected compensation or salary. Further, the Performance RSUs and the Shares, and the income and value of same, are not intended to replace any pension rights or compensation.
|
(d)
|
No Entitlement
. This Section 10(d) applies if the Participant resides outside the U.S. and/or the Company is not the Participant's employer: In consideration of the grant of Performance RSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance RSUs resulting from termination of the Participant’s employment with the Company or the Employer (regardless of the reason for such termination and whether or not later to be found invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment contract, if any) and the Participant irrevocably releases the Company from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, the Participant shall be deemed irrevocably to have waived the Participant’s entitlement to pursue such claim.
|
(e)
|
Exchange Rates
. This Section 10(e) applies if the Participant resides outside the U.S.: The Participant acknowledges and agrees that neither the Company nor the Employer shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the Performance RSUs or of any amounts due to the Participant pursuant to the vesting and settlement of the Performance RSUs or the subsequent sale of any Shares.
|
(f)
|
Future Value of Shares
. The future value of the underlying Shares is unknown, indeterminable, and cannot be predicted with certainty.
|
(g)
|
Severability
. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
|
(h)
|
Binding Effect
. This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and his or her respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this Agreement.
|
(i)
|
Notice
. Each notice relating to this Award shall be in writing (which shall include electronic form) and delivered in person, electronically or by first class mail, postage prepaid, to the address as hereinafter provided. Each notice shall be deemed to have been given on the date it is received. Each notice to the Company shall be addressed to it at its offices at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062, Attention: Chief Financial Officer. Each notice to the Participant shall be addressed to the Participant at the Participant’s last known mailing or email address, as applicable, on the records of the Company.
|
(j)
|
Pronouns
. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.
|
(k)
|
Entire Agreement
. This Agreement and the Plan constitute the entire understanding between the parties, and supersede all prior agreements and understandings, relating to the subject matter of these documents.
|
(l)
|
Governing Law
. This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws.
|
(m)
|
Compliance with Laws
. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. The Participant also understands and agrees that the Awards granted under the Plan, including the Performance RSUs and the underlying Shares, are subject to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and any SEC regulations, as now or hereafter in effect. Further, the Participant agrees that the Company shall have unilateral authority to amend the Plan and the Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.
|
(n)
|
Interpretation
. The interpretation and construction of any terms or conditions of this Agreement or the Plan, or other matters related to the Plan, by the Compensation Committee of the Board shall be final and conclusive.
|
(o)
|
Participant’s Acceptance
. The Participant is urged to read this Agreement carefully and to consult with his or her own legal counsel regarding the terms and consequences of this Agreement and the legal and binding effect of this Agreement. By virtue of his or her acceptance of this Award, the Participant is deemed to have accepted and agreed to all of the terms and conditions of this Agreement and the provisions of the Plan.
|
(p)
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the Performance RSUs or other awards granted to the Participant under the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
|
(q)
|
English Language
. The Participant acknowledges and agrees that it is the Participant’s express intent that this Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Performance RSUs, be drawn up in English. If the Participant has received this Agreement, the Plan or any other documents related to the Performance RSUs translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.
|
(r)
|
Appendix B
. Notwithstanding any provisions herein to the contrary, if the Participant transfers the Participant’s residence and/or employment to a country other than the United States, the Performance RSUs shall be subject to any special terms and conditions for such country as may be set forth in Appendix B to this Agreement. Moreover, if the Participant relocates to one of the countries
|
(s)
|
Additional Requirements
. The Company reserves the right to impose other requirements on the Performance RSUs, any Shares acquired pursuant to the Performance RSUs, and the Participant’s participation in the Plan, to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable for legal or administrative reasons. Such requirements may include (but are not limited to) requiring the Participant to sign any agreements or undertakings that may be necessary to accomplish the foregoing.
|
(t)
|
Private Placement
. The Company has submitted filings in the United States in connection with the stock incentive plan under which this Award was made. The Company has not submitted any registration statement, prospectus or other filings with other local securities authorities (unless otherwise required under such local law), and the grant of the Award is not intended to be a public offering of securities in any other jurisdiction or subject to the supervision of other local securities authorities.
|
(u)
|
Changes in Capitalization
. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any non-cash distribution to holders of Common Stock, the number of Performance RSUs, and Shares issuable upon vesting and conversion thereof, shall be appropriately adjusted in such manner as shall be determined by the Compensation Committee of the Board.
|
(v)
|
No Advice Regarding Grant
. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of Shares. The Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
|
(w)
|
Insider Trading Restrictions/Market Abuse Laws
. The Participant acknowledges that, depending on his or her country of residence, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect Participant’s ability to, directly or indirectly, acquire, sell, or attempt to sell Shares or rights to Shares under the Plan during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws in the applicable jurisdictions or the Participant’s country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. The Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Participant is advised to speak to his or her personal advisor on this matter.
|
(x)
|
Foreign Asset/Account, Exchange Control, and Tax Reporting
. Depending on the Participant’s country, the Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the vesting of the Performance RSUs, the acquisition, holding, and/or transfer of Shares or cash resulting from participation in the Plan and/or the opening and maintenance of a brokerage or bank account in connection with the Plan. The Participant may be required to report such assets, accounts, account balances and values and/or related transactions to the applicable authorities in his or her country. The Participant acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements. The Participant further understands that he or she should consult the Participant’s personal legal advisor on these matters.
|
(y)
|
Waiver
. The Participant acknowledges that a waiver by the Company or breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant.
|
s
|
V
|
1.
|
Performance Period
. The three-year period beginning on {GRANTDATE} and ending on {GRANTDATE+3YRS} (the “Performance Period”).
|
2.
|
Vesting Date
. {PERFVESTDATE}.
|
3.
|
Certification Date
: The date the Compensation Committee of the Board certifies in writing, in accordance with the requirements of Section 162(m) of the Code,
the level of attainment of the Performance Parameters. The Certification Date shall be a date as soon as possible following the end of the Performance Period but prior to the Vesting Date.
|
4.
|
Performance-Based Vesting Terms
. Except as provided in the following sentence, the Participant shall vest on the Vesting Date in the number of Performance RSUs, if any, that the Compensation Committee of the Board shall determine to be vested based on the determination of the certified level of attainment of the Performance Parameters, provided the Participant continues to provide services to the Company or Employer or respective successor through the Vesting Date. In the event the Participant’s employment is terminated by reason of the Participant’s death or Disability prior to the end of the Performance Period, the Unvested Performance RSUs shall vest immediately upon termination with respect to the Initial Grant Number of Shares underlying the Performance RSUs, notwithstanding that the Participant’s employment is terminated prior to the Vesting Date. If the Participant’s employment is terminated by reason of the Participant’s death or Disability after the end of the Performance Period, the Unvested Performance RSUs shall vest in accordance with the first sentence of this Section 4 had the Participant continued employment through the Vesting Date.
|
5.
|
Performance Parameters
. The Performance Parameters are based on the comparison of the TSR (as defined below) of the Company relative to the median TSR of the Peer Group (as defined below) during the Performance Period and are equal to 100% plus or minus two times the difference between the Company’s TSR and the median Peer Group TSR. The number of Performance RSUs that shall vest shall be equal to a number of Performance RSUs that is between 0% and 200% of the Initial Grant Number, up to a maximum of 100% of the Initial Grant Number if the Company’s TSR is negative. Attainment among Performance Parameters is subject to interpolation on a linear basis.
|
Payout Percent
|
Number of Potential Shares Attained
|
Performance Parameters
|
0%
|
0
|
Company TSR minus Peer Group Median TSR is less than or equal to -50
|
100%
|
{PERFSHARESGRANTED}
|
Company TSR minus Peer Group Median TSR equals 0
|
200%
|
{MAXPOTENTIALSHARES}
|
Company TSR minus Peer Group Median TSR is greater than or equal to +50
|
1.
|
Grant of Option
: This Agreement confirms that, subject to the terms and conditions of the Plan, the Company has granted to the Optionee, effective on the Date of Grant set forth below, an option to purchase shares of the Company’s Common Stock (the “Option Shares”) as follows:
|
2.
|
Vesting and Exercise of Option
: The Option vests and becomes exercisable in full on the earlier of {GRANTDATE+1} or the date of the Company’s next annual meeting of shareholders, subject to your continued status as a member of the Board of Directors of the Company (a “Director”).
|
3.
|
Term of Option; Termination of Service
:
|
(a)
|
Except as otherwise provided below, (a) unless earlier exercised, the Option shall terminate on, and shall not be exercisable after three (3) months after the Optionee ceases to be a Director of the Company, and (b) the Option shall be exercisable by the Optionee (or his or her successor in interest) only to the extent that such Option was exercisable on or prior to the date of such termination.
|
(b)
|
If the Optionee
dies
while a Director of the Company, the Option shall become exercisable in full on the date of death and shall continue to be exercisable (by the Optionee’s successor in interest) until the date that is ten (10) years after the Date of Grant, at which time the Option shall terminate.
|
(c)
|
If the Optionee ceases to be a Director by reason of
retirement
as a Director, this Option shall cease vesting at the time the Optionee ceases to be a Director, and any Option Shares that are vested on the date of such retirement shall continue to be exercisable until the date that is ten (10) years after the Date of Grant. For purposes of this provision, “retirement” shall mean any mutually agreed departure from the Board after a Director has reached the age of 60.
|
(d)
|
If the Optionee ceases to be a Director by reason of the Director’s
removal under Section 2.7 of the Company’s Bylaws
, this Option shall, at the time the Optionee ceases to be a Director, terminate and all Option Shares that are then vested shall forthwith cease to be exercisable.
|
(e)
|
If the Optionee ceases to be a Director by reason of
Disability
, the Option shall vest and become exercisable in full at the time the Optionee ceases to be a Director and shall continue to be exercisable until the date that is ten (10) years after the Date of Grant, at which time the Option shall terminate. “Disability” with respect to the Optionee occurs, when and if, as a result of disease, injury or mental disorder, the Optionee is incapable of engaging in regular
|
(f)
|
If the Optionee becomes an
employee
of the Company and in connection with such employment ceases to serve as a Director, this Option shall continue to vest in accordance with the terms hereof until the date that the Optionee’s employment with the Company is terminated, and any Option Shares that are exercisable on the date of such termination shall continue to be exercisable for a period of three (3) months following such termination date, provided that in no event shall the Option be exercisable later than the date that is ten (10) years after the Date of Grant.
|
4.
|
Payment of Purchase Price
: The following payment methods may be used to purchase Option Shares in accordance with the terms of the Plan:
|
(a)
|
A cashless exercise in a manner described in Section 5(f)(2) of the Plan.
|
(b)
|
Cash or check payable to the Company.
|
(c)
|
Delivery by the Optionee of shares of Common Stock of the Company (by actual delivery or attestation) in accordance with Section 5(f)(3) of the Plan.
|
(d)
|
Any combination of the above methods.
|
5.
|
Non-Transferability of Option
: Except as provided by will or the laws of descent and distribution, or as permitted by the Plan, this Option is personal and no rights granted hereunder shall be transferred, assigned, pledged, or hypothecated in any way (whether by operation of law or otherwise), nor shall any such rights be subject to execution, attachment or similar process.
|
6.
|
Adjustment
: This Option is subject to adjustment (including with respect to vesting of the Option Shares) upon certain changes in the Company’s common stock and certain other events, including a Change in Control Event or a Reorganization Event, as provided in Section 11 of the Plan.
|
7.
|
Change in Control
: Upon the occurrence of a Change in Control Event (as defined in Section 11(b) of the Plan), this Option shall vest and be exercisable in full, whether or not then exercisable in accordance with its terms, and shall continue to be exercisable until the date that is ten (10) years after the Date of Grant.
|
8.
|
Withholding Taxes
: Regardless of any action the Company takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax related items related to the Optionee’s participation in the Plan and legally applicable to the Optionee (“Tax-Related Items”), the Optionee acknowledges that the ultimate liability for all Tax-Related Items is and remains the Optionee’s responsibility and may exceed the amount actually withheld by the Company. The Optionee further acknowledges that the Company (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant, vesting or exercise of the Option, the subsequent sale of Option Shares acquired pursuant to such exercise and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Optionee’s liability for Tax-Related Items or achieve any particular tax result.
|
9.
|
No Advice Regarding Grant
: The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Optionee’s participation in the Plan, or the Optionee’s acquisition or sale of the underlying Option Shares. The Optionee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
|
10.
|
Binding Effect
: This Agreement shall be binding upon and inure to the benefit of the Company and the Optionee and his or her respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 5 of this Agreement.
|
11.
|
Notice
: Each notice relating to this Award shall be in writing (which shall include electronic form) and delivered in person, electronically or by first class mail, postage prepaid, to the address as hereinafter provided. Each notice shall be deemed to have been given on the date it is received. Each notice to the Company shall be addressed to it at its offices at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062, Attention: Stock Plan Administrator, Treasury Department. Each notice to the Optionee shall be addressed to the Optionee at the Optionee’s last known mailing or email address, as applicable, on the records of the Company.
|
12.
|
Pronouns
: Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.
|
13.
|
Entire Agreement
: This Agreement and the Plan constitute the entire understanding between the parties, and supersede all prior agreements and understandings, relating to the subject matter of these documents.
|
14.
|
Governing Law
: This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws.
|
15.
|
Interpretation
: The interpretation and construction of any terms or conditions of this Agreement or the Plan, or other matters related to the Plan, by the Board of Directors of the Company shall be final and conclusive.
|
16.
|
Optionee’s Acceptance
: The Optionee is urged to read this Agreement carefully and to consult with his or her own legal counsel regarding the terms and consequences of this Agreement and the legal and binding effect of this Agreement. By virtue of his or her acceptance of this Option, the Optionee is deemed to have accepted and agreed to all of the terms and conditions of this Agreement and the provisions of the Plan.
|
17.
|
Electronic Delivery
: The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Optionee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
|
18.
|
Severability
: The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
19.
|
Additional Requirements
: Subject to the terms of the Plan, the Company reserves the right to impose other requirements on the Option and the Option Shares purchased upon exercise of the Option, to the extent the Company determines it is
|
20.
|
Private Placement
: The Company has submitted filings in the United States in connection with the stock incentive plan under which this Option was made. The Company has not submitted any registration statement, prospectus or other filings with other local securities authorities (unless otherwise required under such local law), and the grant of the Option is not intended to be a public offering of securities in any other jurisdiction or subject to the supervision of other local securities authorities.
|
21.
|
Waiver
: The Optionee acknowledges that a waiver by the Company or breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Optionee or any other optionee.
|
s
|
V
|
1.
|
Restricted Stock Unit
.
|
Date of Grant:
|
{GRANTDATE}
|
Number of RSUs Granted:
|
{RSSHARESGRANTED}
|
Vesting Schedule:
|
The RSUs shall vest on the earlier of {GRANTDATE+1} or the date of the Company’s next annual meeting of shareholders, subject to the Participant’s continued service as a member of the Company’s Board of Directors (a “Director”).
|
2.
|
Vesting and Conversion
.
|
(a)
|
Subject to the terms of the Plan and this Award, the RSUs shall vest in accordance with the schedule set forth in Section 1. For purposes of this Award, RSUs that have not vested as of any particular time in accordance with this Section 2(a) are referred to as “Unvested RSUs.” The shares of Common Stock that are issuable upon the vesting and conversion of the RSUs are referred to in this Award as “Shares.” As soon as administratively practicable after the issuance of any Shares upon the vesting and conversion of RSUs, and subject to the terms and conditions set forth herein, the Company shall deliver or cause to be delivered evidence (which may include a book entry by the Company’s transfer agent) of the Shares so issued in the name of the Participant to the brokerage firm designated by the Company to maintain the brokerage account established for the Participant. Notwithstanding the foregoing, the Company shall not be obligated to issue Shares to or in the name of the Participant upon the vesting and conversion of any RSUs unless the issuance of such Shares shall comply with all relevant provisions of law and other legal requirements including, without limitation, any applicable securities laws and the requirements of any stock exchange upon which shares of Common Stock may then be listed.
|
(b)
|
In the event the Participant ceases to be a Director for any reason or no reason (other than due to death, Disability or otherwise as provided in the Plan or below), then in each such case, all of the Unvested RSUs as of the date of termination shall terminate and be cancelled immediately and automatically and the Participant shall have no further rights with respect to such Unvested RSUs.
|
(c)
|
In the event the Participant
dies
while a Director of the Company, all Unvested RSUs shall vest in full as of the date of the Participant’s death.
|
(d)
|
In the event the Participant ceases to be a Director by reason of a
Disability
, the Unvested RSUs as of the date of the Participant ceases to be a Director shall vest in full as of such date. “Disability” with respect to the Participant occurs, when and if, as a result of disease, injury or mental disorder, the Participant is incapable of engaging in regular service with the Company, which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined by the Company.
|
(e)
|
If the Participant becomes an
employee
of the Company and, in connection with such employment, ceases to serve as a Director of the Company, Unvested RSUs shall vest in accordance with the terms hereof until the date that the Participant’s employment with the Company is terminated.
|
(f)
|
Notwithstanding anything in the Plan or herein, all Unvested RSUs shall vest in full as of a Change in Control Event (as defined in the Plan).
|
(g)
|
For purposes of this Award, employment with the Company shall include being an employee, consultant or advisor with any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such parent or subsidiary of the Company.
|
3.
|
Restrictions on Transfer
.
|
(a)
|
The Participant shall not sell, assign, transfer, pledge or otherwise encumber any RSUs, either voluntarily or by operation of law.
|
(b)
|
The Company shall not be required (i) to transfer on its books any of the RSUs which have been transferred in violation of any of the provisions set forth herein or (ii) to treat as the owner of such RSUs any transferee to whom such RSUs have been transferred in violation of any of the provisions contained herein.
|
4.
|
Not a Shareholder
. The RSUs represent an unfunded, unsecured promise by the Company to deliver Shares upon vesting and conversion of the RSUs, and until vesting of the RSUs and issuance of the Shares, the Participant shall not have any of the rights of a shareholder with respect to the Shares underlying the RSUs. For the avoidance of doubt, the Participant shall have no right to receive any dividends and shall have no voting rights with respect to the Shares underlying the RSUs for which the record date is on or before the date on which the Shares underlying the RSUs are issued to the Participant.
|
5.
|
Provisions of the Plan
. The RSUs and Shares, including the grant and issuance thereof, are subject to the provisions of the Plan.
|
6.
|
Consideration
. Any Shares that are issued and any cash payment that is delivered, in either case upon settlement of the RSUs pursuant to this Award, will be in consideration of the Participant’s service as a member of the
|
7.
|
Withholding Taxes
.
|
(a)
|
Regardless of any action the Company takes with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the Participant is and remains the Participant’s responsibility, and that the Company (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including the grant of the RSUs, the vesting of the RSUs, the subsequent sale of any Shares acquired pursuant to the RSUs and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items.
|
(b)
|
Prior to the delivery of Shares upon the vesting of the RSUs, if any taxing jurisdiction requires withholding of Tax-Related Items, the Participant authorizes the Company to satisfy the obligations with regard to all Tax-Related Items by one or a combination of methods set forth below:
|
i.
|
the Company may withhold a sufficient number of whole Shares otherwise issuable upon the vesting of the RSUs that have an aggregate Fair Market Value (as defined under the Plan) sufficient to pay the minimum Tax-Related Items required to be withheld with respect to the Shares. The cash equivalent of the Shares withheld will be used to settle the obligation to withhold the Tax-Related Items (determined by reference to the closing price of the Common Stock on the NASDAQ Global Select Market on the applicable vesting date). No fractional Shares will be withheld or issued pursuant to the grant of the RSUs and the issuance of Shares hereunder.
|
ii.
|
the Company may, in its discretion, withhold any amount necessary to pay the Tax-Related Items from the Participant’s salary or other amounts payable to the Participant.
|
iii.
|
the Company may withhold from proceeds of the sale of Shares either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization).
|
8.
|
Option of Company to Deliver Cash
. Notwithstanding any of the other provisions of this Award, where share settlement is otherwise prohibited under local law or may present adverse tax consequences to the Participant, at the time the RSUs vest, the Company may elect, in the sole discretion of the Compensation Committee of the Board, to deliver by wire transfer to the Participant in lieu of Shares an equivalent amount of cash (determined by reference to the closing price of the Common Stock on the NASDAQ Global Select Market on the applicable vesting date). If the Company elects to deliver cash to the Participant, the Company is authorized to retain such amount as is sufficient in the opinion of the Company to satisfy the Tax Related Items withholding obligations of the Company pursuant to Section 7 herein.
|
9.
|
Data Privacy
. The Company hereby notifies the Participant of the following in relation to the Participant’s personal data and the collection, processing and transfer of such data in relation to the grant of the RSUs and the Participant’s participation in the Plan, pursuant to applicable personal data protection laws. The collection, processing and transfer of the Participant’s personal data is necessary for the Company’s administration of the Plan and the Participant’s participation in the Plan, and the Participant’s denial and/or objection to the collection, processing and transfer of personal data may affect the Participant’s ability to participate in the Plan. As such, the Participant voluntarily acknowledges, consents and agrees (where required under applicable law) to the collection, use, processing and transfer of personal data as described herein.
|
10.
|
Repatriation: Compliance with Laws
. The Participant agrees, as a condition of the grant of the RSUs, as applicable, to repatriate all payments attributable to the Shares and/or cash acquired under the Plan (including, but not limited to, dividends and any proceeds derived from the sale of the Shares acquired pursuant to the RSUs) in accordance with all foreign exchange rules and regulations applicable to the Participant. In addition, the Participant also agrees to take any and all actions, and consent to any and all actions taken by the Company and its subsidiaries, as may be required to allow the Company and its subsidiaries to comply with all laws, rules and regulations applicable to the Participant. Finally, the Participant agrees to take any and all actions as may be required to comply with the Participant’s personal legal and tax obligations under all laws, rules and regulations applicable to the Participant.
|
11.
|
Miscellaneous
.
|
(a)
|
No Rights to Board Service
. The grant of the RSUs shall not confer upon the Participant any right to continue to serve on the Board of Directors of the Company or, if applicable, as an employee of the Company or its subsidiaries, nor limit in any way the terms of the Participant’s service on the Board of Directors, including for removal therefrom. Except in the event of a termination of employment due to death or Disability, the vesting of the RSUs pursuant to Section 2 hereof is earned only by satisfaction of the performance conditions, if any, and continuing service on the Board of Directors or as otherwise set forth in Section 2 (not through the act of being elected, hired or engaged or being granted the RSUs hereunder).
|
(b)
|
Discretionary Nature
. The Participant acknowledges and agrees that the Plan is discretionary in nature and may be amended, cancelled, or terminated by the Company at any time, to the extent permitted under the Plan. The grant of the RSUs under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of RSUs or any other award under the Plan or other benefits in lieu thereof in the future. Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of any grant, the number of Shares subject to the grant, and the vesting provisions. Any amendment, modification or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant’s service with the Company.
|
(c)
|
Exclusion from Termination Indemnities and Other Benefits
. The Participant’s participation in the Plan is voluntary. The value of the RSUs and any other awards granted under the Plan is an extraordinary item of compensation outside the scope of the Participant’s service on the Board of Directors of the Company. Any grant under the Plan, including the grant of the RSUs and the income and value of same, is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments. The grant of RSUs should in no event be considered as compensation for, or in any way related to, past services for the Company.
|
(d)
|
Severability
. The invalidity or unenforceability of any provision of this Award shall not affect the validity or enforceability of any other provision of this Award, and each other provision of this Award shall be severable and enforceable to the extent permitted by law.
|
(e)
|
Binding Effect
. This Award shall be binding upon and inure to the benefit of the Company and the Participant and his or her respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this Award.
|
(f)
|
Notice
. Each notice relating to this Award shall be in writing (which shall include electronic form) and delivered in person, electronically or by first class mail, postage prepaid, to the address as hereinafter provided. Each notice shall be deemed to have been given on the date it is received. Each notice to the Company shall be addressed to it at its offices at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062 U.S.A., Attention: Stock Plan Administrator, Treasury Department. Each notice to the Participant shall be addressed to the Participant at the Participant’s last known mailing or email address, as applicable, on the records of the Company.
|
(g)
|
Pronouns
. Whenever the context may require, any pronouns used in this Award shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.
|
(h)
|
Entire Agreement
. This Award and the Plan constitute the entire understanding between the parties, and supersede all prior agreements and understandings, relating to the subject matter of these documents.
|
(i)
|
Governing Law
. This Award shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws.
|
(j)
|
Interpretation
. The interpretation and construction of any terms or conditions of this Award or the Plan, or other matters related to the Plan, by the Compensation Committee of the Board of the Company shall be final and conclusive.
|
(k)
|
Participant’s Acceptance
. The Participant is urged to read this Award carefully and to consult with his or her own legal counsel regarding the terms and consequences of this Award and the legal and binding effect of this Award. By virtue of his or her acceptance of this Award, the Participant is deemed to have accepted and agreed to all of the terms and conditions of this Award and the provisions of the Plan.
|
(l)
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the RSUs or other awards granted to the Participant under the Plan by electronic means. The Participant
|
(n)
|
Private Placement
. The Company has submitted regulatory filings in the United States in connection with the stock incentive plan under which this Award was made. The Company has not submitted any registration statement, prospectus or other filings with other local securities authorities (unless otherwise required under such local law), and the grant of the Award is not intended to be a public offering of securities in any other jurisdiction or subject to the supervision of other local securities authorities.
|
(o)
|
Changes in Capitalization
. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any non-cash distribution to holders of Common Stock, the number of RSUs, and Shares issuable upon vesting and conversion thereof, shall be appropriately adjusted in such manner as shall be determined by the Compensation Committee of the Board of the Company.
|
(p)
|
Amendment
. This Award may be amended or modified only by a written instrument executed by both the Company and the Participant.
|
(q)
|
Waiver
. The Participant acknowledges that a waiver by the Company or breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant.
|
s
|
V
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Analog Devices, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
|
|
Dated: February 15, 2017
|
|
/
S
/ V
INCENT
R
OCHE
|
|
|
Vincent Roche
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Analog Devices, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
|
|
Dated: February 15, 2017
|
|
/S/ DAVID A. ZINSNER
|
|
|
David A. Zinsner
|
|
|
Senior Vice President, Finance
|
|
|
and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: February 15, 2017
|
|
/S/ V
INCENT
R
OCHE
|
|
|
Vincent Roche
|
|
|
Chief Executive Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: February 15, 2017
|
|
/S/ D
AVID
A. Z
INSNER
|
|
|
David A. Zinsner
|
|
|
Chief Financial Officer
|