ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ANALOG DEVICES, INC. CONSOLIDATED STATEMENTS OF INCOME Years ended November 2, 2019, November 3, 2018 and October 28, 2017 See accompanying Notes. (1) Balances have been restated to reflect the adoption of Accounting Standards Update (ASU) 2014-09,  Revenue from Contracts with Customers  (ASU 2014- 09). See Note 2a, Principles of Consolidation, in the Notes to Consolidated Financial Statements. (thousands, except per share amounts) 2019 2018 (1) 2017 (1) Revenue Revenue $ 5,991,065  $ 6,224,689  $ 5,246,354  Costs and Expenses Cost of sales 1,977,315  1,974,293  2,078,113  Gross margin 4,013,750  4,250,396  3,168,241  Operating expenses: Research and development 1,130,348  1,165,047  968,133  Selling, marketing, general and administrative 648,094  695,540  690,533  Amortization of intangibles 429,041  428,902  297,351  Special charges 95,659  61,318  49,463  2,303,142  2,350,807  2,005,480  Operating income 1,710,608  1,899,589  1,162,761  Nonoperating (income) expenses: Interest expense 229,075  253,589  250,840  Interest income (10,229) (9,383) (30,333) Other, net 6,034  69  7,507  224,880  244,275  228,014  Earnings Income before income taxes 1,485,728  1,655,314  934,747  Provision for income taxes 122,717  148,334  129,368  Net income $ 1,363,011  $ 1,506,980  $ 805,379  Shares used to compute earnings per common share — Basic 369,133  370,430  346,371  Shares used to compute earnings per common share — Diluted 372,871  374,938  350,484  Basic earnings per common share $ 3.68  $ 4.05  $ 2.32  Diluted earnings per common share $ 3.65  $ 4.00  $ 2.29  48