XML 37 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Special Charges, net
 12 Months Ended
Oct. 30, 2021
Restructuring and Related Activities [Abstract]  
Special Charges, net Special Charges, net
The Company monitors global macroeconomic conditions on an ongoing basis and continues to assess opportunities for improved operational effectiveness and efficiency, as well as a better alignment of expenses with revenues. As a result of these assessments, the Company has undertaken various actions resulting in special charges over the past several years.
The following table summarizes activity included in special charges, net in the Company's Consolidated Statements of Income:
Closure of Manufacturing FacilitiesRepositioning ActionOtherSpecial Charges, Net
Fiscal 2019
Employee severance and benefit costs$7,556 $71,397 $— $78,953 
Employee equity acceleration charge— 2,538 — 2,538 
Impairment charges— 14,168 — 14,168 
Total special charges, net$7,556 $88,103 $— $95,659 
Fiscal 2020
Employee severance and benefit costs$— $47,326 $— $47,326 
Employee equity acceleration charge— 2,093 — 2,093 
Facility closure costs2,918 — — 2,918 
Total special charges, net$2,918 $49,419 $— $52,337 
Fiscal 2021
Employee severance and benefit costs$200 $— $28,731 $28,931 
Employee equity acceleration charge— — 54,664 54,664 
Facility closure costs11,880 — — 11,880 
Fair value write-down of assets held for sale2,538 — — 2,538 
(Gain) on sale of facility(13,557)— — (13,557)
Total special charges, net$1,061 $— $83,395 $84,456 
Liabilities related to special charges, net are presented in Accrued Liabilities in the Consolidated Balance Sheets. The activity is detailed below:
Accrued Special ChargesClosure of Manufacturing FacilitiesRepositioning ActionOther
Balance at November 3, 2018$42,974 $— $— 
Employee severance and benefit costs7,556 71,397 — 
Severance and benefit payments— (12,487)— 
Effect of foreign currency on accrual(129)(15)— 
Balance at November 2, 2019$50,401 $58,895 $— 
Employee severance and benefit costs— 47,326 — 
Facility closure costs2,918 — — 
Severance and benefit payments(5,098)(85,301)— 
Facility closure cost payments(2,969)— 
Effect of foreign currency on accrual(76)(146)— 
Balance at October 31, 2020$45,176 $20,774 $— 
Employee severance and benefit costs200 — 28,731 
Facility closure costs11,880 — — 
Severance and benefit payments(19,602)(13,551)(15,053)
Facility closure cost payments(11,880)— — 
Effect of foreign currency on accrual— 164 — 
Balance at October 30, 2021$25,774 $7,387 $13,678 
Closure of Manufacturing Facilities
The Company recorded special charges of $55.9 million on a cumulative basis through October 30, 2021 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of 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 and one-time termination benefits for the impacted 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 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 ASC 360. See Note 2e, Property, Plant and Equipment for amounts reclassified.
During fiscal 2021, the Company completed the sale of its facility and certain equipment in Singapore, which 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 2022.
Repositioning Actions
The Company recorded special charges of $137.5 million on a cumulative basis through October 30, 2021 as a result of organizational initiatives to better align its global workforce with its long-term strategic plan. The special charges include severance and fringe benefit costs, in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations, and the write-off of acquired intellectual property due to the Company's decision to discontinue certain product development strategies.
Other
The other special charges of $83.4 million recognized during fiscal 2021 included severance and benefit costs as well as charges recorded from acceleration of equity awards in connection with the termination of a limited number of employees as part of the integration of the Acquisition.