Special Charges, net

3 Months Ended

Jan. 29, 2022

Restructuring and Related Activities [Abstract]

Liabilities related to special charges, net are included in Accrued liabilities in the Condensed Consolidated Balance Sheets. The activity is detailed below:


Accrued Special Charges	Closure of Manufacturing Facilities		Global Repositioning Actions















































Balance at October 30, 2021	$	25,774	$	21,065
Employee severance and benefit costs	75		44,411
Facility closure costs	6,513		—
Severance and benefit payments	(4,016)		(25,776)
Facility closure cost payments	(6,513)		—
Effect of foreign currency on accrual	—		(54)
Balance at January 29, 2022	$	21,833	$	39,646

Closure of Manufacturing Facilities

The Company recorded net special charges of $62.6 million on a cumulative basis through January 29, 2022 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation.

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 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 in these Notes to Condensed Consolidated Financial Statements 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.

Global Repositioning Actions

The Company recorded net special charges of $274.1 million on a cumulative basis through January 29, 2022, as a result of organizational initiatives to better align its global workforce with the Company's long-term strategic plan. Special charges of $53.1 million recognized in the first quarter of fiscal 2022 primarily consisted of $61.4 million of severance and benefit costs as well as charges recorded from the acceleration of equity awards in connection with the termination of a limited number of employees as part of the integration of the Acquisition. These charges were partially offset by a gain of $8.3 million recognized upon the sale of a business.