Special Charges, Net

12 Months Ended

Oct. 29, 2022

Restructuring and Related Activities [Abstract]

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.

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


Accrued Special Charges	Closure of Manufacturing Facilities		Global Repositioning Actions




























Balance at November 2, 2019	$	50,401	$	58,895
Employee severance and benefit costs	—		47,326
Facility closure costs	2,918		—
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 costs	200		28,731
Facility closure costs	11,880		—
Severance and benefit payments	(19,602)		(28,604)
Facility closure cost payments	(11,880)		—


Effect of foreign currency on accrual	—		164
Balance at October 30, 2021	$	25,774	$	21,065
Employee severance and benefit costs	75		149,853
Facility closure costs	12,076		—
Severance and benefit payments	(22,805)		(118,567)
Facility closure cost payments	(12,491)		—
Effect of foreign currency on accrual	—		(281)
Balance at October 29, 2022	$	2,629	$	52,070

Closure of Manufacturing Facilities

The Company recorded special charges of $63.8 million on a cumulative basis through October 29, 2022 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear.

During the third quarter of fiscal 2022, the Company completed the sale of its Hillview wafer fabrication facility and certain equipment located in Milpitas, California, which were previously classified as held for sale, for proceeds of approximately $31.8 million, which resulted in a gain of $4.4 million. 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.

Global Repositioning Actions

The Company recorded net special charges of $487.6 million on a cumulative basis through October 29, 2022, as part of the integration of the Acquisition and continued organizational initiatives to consolidate its global footprint related to certain manufacturing, engineering, sales, marketing and administrative offices and to better align its global workforce with the Company's 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.

In connection with the Company’s decision during the third quarter of fiscal 2022 to transition its engineering, sales, marketing and administrative activities from its leased property in Santa Clara, California to its owned property in San Jose, California, the Company entered into a sublease agreement for a portion of the leased property and intends to sublease the remainder of this property. As a result of the sublease transaction, the Company recorded an impairment charge of $91.9 million in net special charges which represented the excess carrying value of the associated asset group over its estimated fair value. The Company estimated fair value using cash flows from the estimated net sublease rental income discounted at a market rate. The Company allocated $60.6 million, $28.1 million and $3.2 million of the impairment charge to right of use assets, leasehold improvements and office equipment, respectively.

The Company also recorded special charges of $174.8 million in fiscal 2022 primarily consisting of $180.4 million of severance and benefit costs, as well as charges recorded from the acceleration of equity awards in connection with the termination of certain employees in manufacturing, engineering and selling, marketing, general and administrative roles at sites assumed related to the Acquisition and various locations throughout the world, partially offset by a gain of $8.3 million recognized upon the sale of a business.