NetApp Inc
For the period ended Oct 25, 2024. Filed Nov 25, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 25, 2024 · Filed Nov 25, 2024
NTAP$169.19-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-07-26; filed 2024-08-28.
0000950170-24-101408
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-10-25; filed 2024-11-25.
0000950170-24-130551
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 120 current paragraphs.
78 unchanged; 35 reworded; 7 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Unallocated cost of services revenues were relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.
Current report
The increases in sales and marketing expenses in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year were primarily due to an increase in sales commissions expenses.
Current report
The decrease in research and development expenses in the second quarter of fiscal 2025 compared to the corresponding period of the prior year was due to lower compensation costs driven by lower incentive compensation expense, partially offset by higher expenses in other components of compensation costs.
Current report
Research and development expenses remained relatively flat in the first six months of fiscal 2025 compared to the corresponding period of the prior year.
Current report
Inventory increased by $132 million, primarily due to higher raw materials purchases.
Current report
On September 30, 2024, upon maturity, we repaid our 3.30% Senior Notes due September 2024 for an aggregate amount of $407 million, comprised of the principal and unpaid interest.
Current report
We have and continue to enter into financing and leasing contracts through the ordinary course of business. These arrangements and related financing guarantees are described in Note 14 – Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1. There has been no material change in our financing guarantees as described in our 2024 Annual Report on Form 10-K.
Removed paragraphs (8)
Previous report
Unallocated cost of services revenues decreased in the first quarter of fiscal 2025 compared to the corresponding period of the prior year due to certain intangible assets becoming fully amortized during the first quarter of fiscal 2024.
Previous report
Sales and marketing expenses remained relatively flat in the first quarter of fiscal 2025 compared to the corresponding period of the prior year.
Previous report
The increase in Research and Development expenses consisted of the following (in percentage points of the total change):
Previous report
Accrued expenses decreased by $221 million, primarily due to employee compensation payouts related to fiscal year 2024 incentive compensation and commissions plans.
Previous report
While most of our arrangements for sales include short-term payment terms, from time to time we provide long-term financing to creditworthy customers. We have generally sold receivables financed through these arrangements on a non-recourse basis to third party financing institutions within 10 days of the contracts’ dates of execution, and we classify the proceeds from these sales as cash flows from operating activities in our condensed consolidated statements of cash flows. We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. We sold $19 million of receivables in each of the first three months of fiscal 2025 and fiscal 2024.
Previous report
In addition, we enter into arrangements with leasing companies for the sale of our hardware systems products. These leasing companies, in turn, lease our products to end-users. The leasing companies generally have no recourse to us in the event of default by the end-user.
Previous report
Some of the leasing arrangements described above have been financed on a recourse basis through third-party financing institutions. Under the terms of recourse leases, which are generally three years or less, we remain liable for the aggregate unpaid remaining lease payments to the third-party leasing companies in the event of end-user customer default. These arrangements are generally collateralized by a security interest in the underlying assets. As of July 26, 2024 and April 26, 2024, the aggregate amount by which such contingencies exceeded the associated liabilities was not significant. To date, we have not experienced significant losses under our lease financing programs or other financing arrangements.
Previous report
We have entered into service contracts with certain of our end-user customers that are supported by third-party financing arrangements. If a service contract is terminated as a result of our non-performance under the contract or our failure to comply with the terms of the financing arrangement, we could, under certain circumstances, be required to acquire certain assets related to the service contract or to pay the aggregate unpaid payments under such arrangements. As of July 26, 2024, we have not been required to make any payments under these arrangements, and we believe the likelihood of having to acquire a material amount of assets or make payments under these arrangements is remote. The portion of the financial arrangement that represents unearned services revenue is included in deferred revenue and financed unearned services revenue in our condensed consolidated balance sheets.
Reworded paragraphs (35)
Previous wording
During the first three months of fiscal 2025, we repurchased approximately 3 million shares of our common stock at an average price of $120.46 per share, for an aggregate purchase price of $400 million. We also declared aggregate cash dividends of $0.52 per share in that period, for which we paid $107 million.
Current wording
During the first six months of fiscal 2025, we repurchased approximately 5.8 million shares of our common stock at an average price of $121.58 per share, for an aggregate purchase price of $700 million. We also declared aggregate cash dividends of $1.04 per share in that period, for which we paid $213 million.
Previous wording
In the first quarter of fiscal 2025, management approved a restructuring plan to redirect resources to highest return activities and reduce costs. Aggregate charges recorded from the restructuring plan in the first three months of fiscal 2025 totaled $17 million.
Current wording
In the first six months of fiscal 2025, we approved restructuring plans to redirect resources to highest return activities and reduce costs. Aggregate charges recorded from the restructuring plans during the second quarter and first six months of fiscal 2025 totaled $12 million and $29 million, respectively.
Previous wording
The increase in net revenues for the first quarter of fiscal 2025 compared to the corresponding period of fiscal 2024 was due to an increase in product revenues and, to a lesser extent, an increase in services revenues. Product revenues as a percentage of net revenues increased by two percentage points in the first quarter of fiscal 2025 compared to the corresponding period of fiscal 2024.
Current wording
The increase in net revenues for the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024 was due to an increase in product revenues and, to a lesser extent, an increase in services revenues. Product revenues as a percentage of net revenues increased by one percentage point and two percentage points, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024.
Previous wording
Total product revenues increased in the first quarter of fiscal 2025 compared to the corresponding period of the prior year due to higher sales of C-Series all-flash array systems.
Current wording
Total product revenues increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year due to higher sales of C-Series all-flash array systems.
Previous wording
Support revenues increased in the first quarter of fiscal 2025 compared to the corresponding period of the prior year as a result of a higher aggregate support contract value for our installed base.
Current wording
Support revenues increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year as a result of a higher aggregate support contract value for our installed base.
Previous wording
Professional and other services revenues increased by $5 million in the first quarter of fiscal 2025 compared to the corresponding period of the prior year.
Current wording
Professional and other services revenues increased by $8 million and $13 million in the second quarter and first six months of fiscal 2025, respectively, compared to the corresponding periods of the prior year.
Previous wording
Public Cloud revenues increased in the first quarter of fiscal 2025 compared to the corresponding period of the prior year, due to higher customer demand, driven by NetApp’s diversified cloud offerings and an overall growth in the cloud market.
Current wording
Public Cloud revenues increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year, due to higher customer demand, driven by NetApp’s diversified cloud offerings and an overall growth in the cloud market.
Previous wording
Cost of Hybrid Cloud product revenues represented approximately 40% of product revenues for the first quarter of fiscal 2025 compared to 45% for the corresponding period of fiscal 2024. Materials costs represented 88% of cost of Hybrid Cloud product revenues for both the first quarter of fiscal 2025 and for the corresponding period of fiscal 2024.
Current wording
Cost of Hybrid Cloud product revenues represented approximately 40% of product revenues for the second quarter and first six months of fiscal 2025 compared to 39% and 42%, respectively, for the corresponding periods of fiscal 2024. Materials costs represented 89% of cost of Hybrid Cloud product revenues for the second quarter and first six months of fiscal 2025, compared to 86% and 87%, respectively, for the corresponding periods of fiscal 2024.
Previous wording
Materials costs increased by $4 million in the first quarter of fiscal 2025 compared to the corresponding period of the prior year.
Current wording
Materials costs increased by $34 million and $38 million, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.
Previous wording
Hybrid Cloud product gross margins increased by approximately five percentage points in the first quarter of fiscal 2025 compared to the corresponding period of the prior year, due to lower component and freight costs.
Current wording
Hybrid Cloud product gross margins remained relatively flat in the second quarter of fiscal 2025 compared to the corresponding period of the prior year. Hybrid Cloud product gross margins increased by approximately two percentage points in the first six months of fiscal 2025 compared to the corresponding period of the prior year, primarily due to lower component and freight costs.
Previous wording
Unallocated cost of product revenues were relatively flat in the first quarter of fiscal 2025 compared to the corresponding period of the prior year.
Current wording
Unallocated cost of product revenues were relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.
Previous wording
Cost of Hybrid Cloud services revenues, which are composed of the costs of support and professional and other services, increased in the first quarter of fiscal 2025 compared to the corresponding period of fiscal 2024. Cost of Hybrid Cloud services revenues represented approximately 16% of Hybrid Cloud services revenues in the first quarter of fiscal 2025 compared to 15% for the corresponding period of fiscal 2024.
Current wording
Cost of Hybrid Cloud services revenues, which are composed of the costs of support and professional and other services, increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024. Cost of Hybrid Cloud services revenues represented approximately 16% of Hybrid Cloud services revenues for the second quarter and first six months of fiscal 2025 compared to 16% and 15%, respectively, for the corresponding periods of fiscal 2024.
Previous wording
Hybrid Cloud support gross margins were relatively flat in the first quarter of fiscal 2025 compared to the corresponding period of the prior year. Hybrid Cloud professional and other services gross margins decreased by approximately three percentage points in the first quarter of fiscal 2025 compared to the corresponding period of fiscal 2024 due to the mix of services provided.
Current wording
Hybrid Cloud support gross margins were relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year. Hybrid Cloud professional and other services gross margins increased by approximately two percentage points in the second quarter of fiscal 2025 compared to the corresponding period of fiscal 2024 due to the mix of services provided. Hybrid Cloud professional and other services gross margins remained relatively flat in the first six months of fiscal 2025 compared to the corresponding period of fiscal 2024.
Previous wording
Cost of Public Cloud revenues decreased, and Public Cloud gross margins increased by four percentage points, in the first quarter of fiscal 2025 compared to the corresponding period of fiscal 2024, due to cost optimization that included a decrease in fixed assets depreciation.
Current wording
Cost of Public Cloud revenues decreased in each the second quarter and first six months of fiscal 2025. Public Cloud gross margins increased by eight percentage points and six percentage points, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024. The decrease in cost of Public Cloud revenues and improved gross margins was due to cost optimization that included a decrease in fixed assets depreciation, and the mix of offerings provided.
Previous wording
Sales and marketing, research and development, and general and administrative expenses for the first quarter of fiscal 2025 totaled $798 million, or 52% of net revenues, reflecting a decrease of three percentage points, compared to the corresponding period of fiscal 2024, due to the increase in net revenues.
Current wording
Sales and marketing, research and development, and general and administrative expenses for the second quarter and first six months of fiscal 2025 totaled $819 million, or 49% of net revenues, and $1,617 million, or 51% of net revenues, respectively, each reflecting a decrease of two percentage points compared to the corresponding periods of fiscal 2024, primarily due to the increase in net revenues.
Previous wording
Total compensation costs included in sales and marketing, research and development and general and administrative expenses, totaling $499 million in the first quarter of fiscal 2025, were relatively flat compared to the corresponding period of the prior year.
Current wording
Total compensation costs included in sales and marketing, research and development and general and administrative expenses in the second quarter and first six months of fiscal 2025, were relatively flat compared to the corresponding periods of the prior year.
Previous wording
General and administrative expenses remained relatively flat in the first quarter of fiscal 2025 compared to the corresponding period of the prior year.
Current wording
General and administrative expenses remained relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.
Previous wording
In the first quarter of fiscal 2025, management approved and initiated a restructuring plan to redirect resources to highest return activities and reduce costs, which included a reduction of our global workforce by approximately 2%. Charges related to the plan consisted primarily of employee severance-related costs. The activities under the plan are expected to be substantially complete by the second quarter of fiscal 2025.
Current wording
In the first six months of fiscal 2025, management approved restructuring plans to redirect resources to highest return activities and reduce costs, which included a reduction of our global workforce by approximately 2%. Charges related to the plans consisted primarily of employee severance-related costs. The activities under the plans are expected to be substantially complete by the end of fiscal 2025.
Previous wording
In the first quarter of fiscal 2024, management approved and initiated a restructuring plan to redirect resources to highest return activities, and to optimize our global office space for our hybrid work model. In connection with the plan, we reduced our global workforce by approximately 1% and terminated certain real estate leases in various countries, resulting in restructuring charges comprised primarily of employee severance-related expenses and lease termination charges. The workforce-related activities under the plan were substantially completed by the end of fiscal 2024.
Current wording
In the first six months of fiscal 2024, management executed a restructuring plan to redirect resources to highest return activities, and to optimize our global office space for our hybrid work model. In connection with the plan, we reduced our global workforce by approximately 1% and terminated certain real estate leases in various countries, resulting in restructuring charges comprised primarily of employee severance-related expenses and lease termination charges. The activities under the plan were substantially complete by the end of fiscal 2024.
Previous wording
Acquisition-related expenses decreased by $2 million in the first quarter of fiscal 2025 compared to the corresponding period of the prior year.
Current wording
Acquisition-related expenses decreased by $2 million and $4 million, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.
Previous wording
Interest income increased in the first quarter of fiscal 2025 compared to the corresponding periods of the prior year, primarily due to higher yields earned on our cash and investments. Interest expense was relatively flat in the first quarter of fiscal 2025 compared to the corresponding period of fiscal 2024.
Current wording
Interest income increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year, primarily due to higher yields earned on our cash and investments. Interest expense was relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024.
Previous wording
Our effective tax rate for the three months ended July 26, 2024 includes an increase in discrete tax benefits related to stock compensation compared to the corresponding period of the prior year. Our effective tax rate for the three months ended July 28, 2023 included a benefit for increased fiscal 2023 foreign tax credits resulting from new IRS guidance released during the first quarter of fiscal 2024, partially offset by an increase in stock compensation for which no tax benefit is recorded.
Current wording
Our effective tax rate for the three and six months ended October 25, 2024 includes an increase in discrete tax benefits related to stock compensation compared to the corresponding periods of the prior year. Our effective tax rate for the three and six months ended October 27, 2023 included a benefit for increased fiscal 2023 foreign tax credits resulting from legislative guidance for those periods partially offset by an increase in stock compensation for which no tax benefit is recorded.
Previous wording
As of July 26, 2024, we had $221 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $158 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $157 million have been recorded in other long-term liabilities.
Current wording
As of October 25, 2024, we had $223 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $162 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $161 million have been recorded in other long-term liabilities.
Previous wording
As of July 26, 2024, our cash, cash equivalents and short-term investments were $3.0 billion, which represents a decrease of $235 million during the first three months of fiscal 2025. The decrease was primarily due to $400 million used for the repurchase of our common stock, $107 million used for the payment of dividends and $41 million used for purchases of property and equipment, partially offset by $341 million provided by operating activities. Our net working capital deficit was $191 million as of July 26, 2024, a reduction of $982 million when compared to April 26, 2024, primarily due to the decrease in cash, cash equivalents and short-term investments discussed above and the reclassification of $750 million principal amount of our senior notes from long-term to current liabilities.
Current wording
As of October 25, 2024, our cash, cash equivalents and short-term investments were $2.2 billion, which represents a decrease of $1.0 billion during the first six months of fiscal 2025. The decrease was primarily due to $700 million used for the repurchase of our common stock, a $400 million principal repayment of our 3.30% Senior Notes due September 2024, $213 million used for the payment of dividends, $132 million used for payment of taxes related to net share settlement of stock awards and $86 million used for purchases of property and equipment, partially offset by $446 million provided by operating activities. Our net working capital deficit was $378 million as of October 25, 2024, a reduction of $1.2 billion when compared to April 26, 2024, primarily due to the decrease in cash, cash equivalents and short-term investments discussed above and the reclassification of $750 million principal amount of our Senior Notes from long-term to current liabilities.
Previous wording
During the first three months of fiscal 2025, we generated cash from operating activities of $341 million, reflecting net income of $248 million which was increased by non-cash depreciation and amortization expense of $63 million and non-cash stock-based compensation expense of $85 million, compared to $453 million of cash generated from operating activities during the first three months of fiscal 2024.
Current wording
During the first six months of fiscal 2025, we generated cash from operating activities of $446 million, reflecting net income of $547 million which was adjusted for non-cash depreciation and amortization expense of $126 million and non-cash stock-based compensation expense of $188 million, compared to $588 million of cash generated from operating activities during the first six months of fiscal 2024.
Previous wording
Significant changes in assets and liabilities in the first three months of fiscal 2025 included the following:
Current wording
Significant changes in assets and liabilities in the first six months of fiscal 2025 included the following:
Previous wording
Accounts receivable decreased $335 million, reflecting lower billings and more favorable invoicing linearity in the first three months of fiscal 2025 compared to the last three months of fiscal 2024.
Current wording
Accounts receivable decreased $138 million, reflecting lower billings in the first six months of fiscal 2025 compared to the last six months of fiscal 2024.
Previous wording
Deferred revenue and financed unearned services revenue decreased by $92 million, due to a decrease in deferred revenue for software and hardware support contracts.
Current wording
Deferred revenue and financed unearned services revenue decreased by $164 million, due to a decrease in deferred revenue for software and hardware support contracts.
Previous wording
During the first three months of fiscal 2025, we used $10 million for the purchases of investments, net of maturities and sales, and paid $41 million for capital expenditures, as compared to the same period of fiscal 2024, in which we used $192 million for the purchases of investments, net of maturities and sales, and paid $35 million for capital expenditures.
Current wording
During the first six months of fiscal 2025, we generated $597 million from maturities and sales of investments, net of purchases and paid $86 million for capital expenditures, as compared to the same period of fiscal 2024, in which we generated $72 million from maturities and sales of investments, net of purchases, and paid $73 million for capital expenditures.
Previous wording
During the first three months of fiscal 2025, cash flows used in financing activities totaled $548 million and included $400 million for the repurchase of approximately 3 million shares of common stock and $107 million for the payment of dividends. During the first three months of fiscal 2024, cash flows used in financing activities totaled $521 million and included $400 million for the repurchase of approximately 5 million shares of common stock and $106 million for the payment of dividends.
Current wording
During the first six months of fiscal 2025, cash flows used in financing activities totaled $1.4 billion and included $700 million for the repurchase of approximately 6 million shares of common stock, $400 million principal repayment upon maturity of our 3.30% Senior Notes due in September 2024 and $213 million for the payment of dividends. During the first six months of fiscal 2024, cash flows used in financing activities totaled $942 million and included $700 million for the repurchase of approximately 9 million shares of common stock and $209 million for the payment of dividends.
Previous wording
As of July 26, 2024 and April 26, 2024, $2.3 billion and $2.1 billion, respectively, of cash, cash equivalents and short-term investments were held by various foreign subsidiaries and were generally based in U.S. dollar-denominated holdings, while $0.7 billion and $1.2 billion, respectively, were available in the U.S.
Current wording
As of October 25, 2024 and April 26, 2024, $1.9 billion and $2.1 billion, respectively, of cash, cash equivalents and short-term investments were held by various foreign subsidiaries and were generally based in U.S. dollar-denominated holdings, while $0.3 billion and $1.2 billion, respectively, were available in the U.S.
Previous wording
We expect to fund our capital expenditures, including our commitments related to facilities, equipment, operating leases and internal-use software development projects over the next few years through existing cash, cash equivalents, investments and cash generated from operations. The timing and amount of our capital requirements cannot be precisely determined and will depend on a number of factors, including future demand for products, changes in the network storage industry, hiring plans and our decisions related to the financing of our facilities and equipment requirements. We anticipate capital expenditures for the remainder of fiscal 2025 to be between $100 million and $150 million.
Current wording
We expect to fund our capital expenditures, including our commitments related to facilities, equipment, operating leases and internal-use software development projects over the next few years through existing cash, cash equivalents, investments and cash generated from operations. The timing and amount of our capital requirements cannot be precisely determined and will depend on a number of factors, including future demand for products, changes in the network storage industry, hiring plans and our decisions related to the financing of our facilities and equipment requirements. We anticipate capital expenditures for the remainder of fiscal 2025 to be between $50 million and $100 million.
Previous wording
The Tax Cuts and Jobs Act of 2017 imposed a mandatory, one-time transition tax on accumulated foreign earnings and profits that had not previously been subject to U.S. income tax. As of July 26, 2024, outstanding payments related to the transition tax are estimated to be approximately $215 million of which $115 million and $100 million are expected to be paid during fiscal 2025 and fiscal 2026, respectively. Our estimates for future transition tax payments, however, could change with further guidance or review from U.S. federal and state tax authorities or other regulatory bodies.
Current wording
The Tax Cuts and Jobs Act of 2017 imposed a mandatory, one-time transition tax on accumulated foreign earnings and profits that had not previously been subject to U.S. income tax. As of October 25, 2024, the outstanding payment related to the transition tax is estimated to be approximately $100 million which is expected to be paid during fiscal 2026. Our estimates for future transition tax payments, however, could change with further guidance or review from U.S. federal and state tax authorities or other regulatory bodies.
Previous wording
As of July 26, 2024, our Board of Directors had authorized the repurchase of up to $17.1 billion of our common stock under our stock repurchase program. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time. Since the May 13, 2003 inception of this program through July 26, 2024, we repurchased a total of 375 million shares of our common stock at an average price of $42.73 per share, for an aggregate purchase price of $16 billion. As of July 26, 2024, the remaining authorized amount for stock repurchases under this program was $1.1 billion.
Current wording
In the first quarter of fiscal 2025, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock. As of October 25, 2024, our Board of Directors had authorized cumulative repurchases of up to $17.1 billion of our common stock under our stock repurchase program. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time. Since the May 13, 2003 inception of this program through October 25, 2024, we repurchased a total of 377 million shares of our common stock at an average price of $43.25 per share, for an aggregate purchase price of $16.3 billion. As of October 25, 2024, the remaining authorized amount for stock repurchases under this program was $0.8 billion.
Previous wording
In the ordinary course of business, we make commitments to third-party contract manufacturers and component suppliers to manage manufacturer lead times and meet product forecasts, and to other parties, to purchase various key components used in the manufacture of our products. In addition, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. These off-balance sheet purchase commitments totaled approximately $1.1 billion at July 26, 2024.
Current wording
In the ordinary course of business, we make commitments to third-party contract manufacturers and component suppliers to manage manufacturer lead times and meet product forecasts, and to other parties, to purchase various key components used in the manufacture of our products. In addition, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. These off-balance sheet purchase commitments totaled approximately $0.9 billion at October 25, 2024.