Any of these risks, or any other risks related to international business operations, could materially adversely affect our business, financial condition and results of operations. Many of these risks are present within our business operations in China. For example, changes in U.S.-China relations, the political environment or international trade policies and relations could result in revisions to laws or regulations or their interpretation and enforcement, increased taxation, trade sanctions, the imposition of import or export duties and tariffs, restrictions on imports or exports, currency revaluations, or retaliatory actions, which has had and may continue to have an adverse effect on our business plans and operating results. In addition, our success in the Chinese markets may be adversely affected by China's continuously evolving policies, laws and regulations, including those relating to antitrust, cybersecurity and data protection, the environment, indigenous innovation and the promotion of a domestic semiconductor industry, and intellectual property rights and enforcement and protection of those rights. At November 2, 2019, our principal source of liquidity was $648.3 million of cash and cash equivalents, of which approximately $295.7 million was held in the United States and the remaining balance was held outside the United States. As we intend to reinvest substantially all of our foreign earnings indefinitely, certain cash held outside the United States may not be available for repatriation as dividends to the United States in the future. We require a substantial amount of cash in the United States for operating requirements, stock repurchases, cash dividends and acquisitions. If we are unable to address our U.S. cash requirements through operations, borrowings under our current revolving credit facility, future debt or equity offerings or other sources of cash obtained at an acceptable cost, it may be necessary for us to consider repatriation of earnings that are indefinitely reinvested, and we may be required to pay additional taxes under current tax laws, which could have a material adverse effect on our results of operations and financial condition. Our future revenue, gross margins, operating results, net income and earnings per share are difficult to predict and may materially fluctuate. Our future revenue, gross margins, operating results, net income and earnings per share are difficult to predict and may be materially affected by a number of factors, including: 11 • the increasing costs of providing employee benefits worldwide, including health insurance, retirement plan and pension plan contributions and retirement benefits; • our ability to generate new design opportunities and win competitive bid selection processes; • our ability to recruit, hire, retain and motivate adequate numbers of engineers and other qualified employees to meet the demands of our customers; • any significant decline in our backlog; • 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; • a decline in infrastructure spending by foreign governments, including China; • the ability of our third-party suppliers, subcontractors and manufacturers to supply us with sufficient quantities of raw materials, products and/or components; • fluctuations in manufacturing yields, adequate availability of wafers and other raw materials, and manufacturing, assembly and test capacity; • pricing decisions and competitive pricing pressures; • the timing of new product announcements or introductions by us, our customers or our competitors and the market acceptance of such products; • the effects of issued, threatened or retaliatory government sanctions, trade barriers or economic restrictions, changes in law, regulations or other restrictions, including executive orders, changes in import and export regulations, export classifications or changes in duties and tariffs, particularly with respect to China; • changes in our effective tax rates or new or revised tax legislation in the United States, Ireland or worldwide; • changes in geographic, product or customer mix; • our ability to effectively manage our cost structure in both the short term and over a longer duration; • our ability to accurately estimate future distributor pricing credits and/or stock rotation rights; • our ability to accurately forecast distributor demand for our products; • the timing, delay, reduction or cancellation of significant customer orders and our ability to manage inventory; • changes in customer demand or order patterns for our products and/or for end products that incorporate our products; • the effects of adverse economic conditions in the markets in which we sell our products;