Special Charges, net

9 Months Ended

Jul. 31, 2021

Restructuring and Related Activities [Abstract]

The following table is a quarterly roll-forward from October 31, 2020 to July 31, 2021 of the employee separation and exit cost accruals established related to existing restructuring actions:


Accrued Restructuring	Closure of Manufacturing Facilities		Repositioning Action		Other Actions















































Balance at October 31, 2020	$	45,176	$	20,774	$	3,489
First quarter fiscal 2021 special charges	438		—		—
Severance and other payments	(1,950)		(8,128)		(333)

Effect of foreign currency on accrual	—		248		—
Balance at January 30, 2021	$	43,664	$	12,894	$	3,156
Second quarter fiscal 2021 special charges	311		—		—
Severance and other payments	(5,769)		(2,767)		(270)
Effect of foreign currency on accrual	—		(44)		—
Balance at May 1, 2021	$	38,206	$	10,083	$	2,886
Third quarter fiscal 2021 special charges	4,618		—		—
Severance and other payments	(15,949)		(2,178)		(219)
Effect of foreign currency on accrual	—		(24)		—
Balance at July 31, 2021	$	26,875	$	7,881	$	2,667
Accrued liabilities	$	26,875	$	7,881	$	2,667

Special charges, net, for the quarter ended July 31, 2021 was a net gain of $8.9 million, which included charges of $4.6 million related to the closure of the Company’s manufacturing facilities reflected in the table above as well as a gain of $13.6 million related to the sale of the Company’s Singapore test facility described further below.

Repositioning Action

The Company recorded special charges of $137.5 million on a cumulative basis through July 31, 2021, as a result of organizational initiatives to better align the global workforce with the Company's long-term strategic plan. Approximately $123.3 million of the total charges was for severance and fringe benefit costs in accordance with either the Company's ongoing benefit plan or statutory requirements for the impacted manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees. The remaining $14.2 million of the charges were recorded in the fiscal year ended November 2, 2019 (fiscal 2019) and related to the write-off of acquired intellectual property due to the Company's decision to discontinue certain product development strategies.

Closure of Manufacturing Facilities

The Company recorded net special charges of $46.8 million on a cumulative basis through July 31, 2021 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation (Linear).

The special charges include severance and fringe benefit costs, in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations, one-time termination benefits for the impacted manufacturing, engineering and SMG&A employees and other exit costs. These one-time termination benefits are being recognized over the future service period required for employees to earn these benefits.

During the third quarter of fiscal 2021, the Company ceased production at its Hillview wafer fabrication facility located in Milpitas, California and determined that this facility met the held for sale criteria specified in Accounting Standards Codification (ASC ) 360. See Note 6 - Property, Plant and Equipment for amounts reclassified.

During the third quarter of fiscal 2021, the Company completed the sale of its facility and certain equipment in Singapore, that were previously classified as held for sale, for approximately $35.7 million, which resulted in a gain of $13.6 million. Concurrent with the sale, the Company entered into a short-term lease agreement to leaseback a portion of the facility while it completes its transition of related operations to its facilities in Penang, Malaysia and the Philippines, as well as to its outsourced assembly and test partners, which is expected to be competed in the fiscal year ending October 29, 2022 (fiscal 2022).