Special Charges, Net

12 Months Ended

Oct. 28, 2023

Restructuring and Related Activities [Abstract]

Special Charges, NetThe 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 and other non-current liabilities on the Consolidated Balance Sheets. The activity is detailed below:


Accrued Special Charges	Closure of Manufacturing Facilities		Global Repositioning Actions		Q4 2023 Plan




























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	$	—
Employee severance and benefit costs	—		45,064		113,995

Severance and benefit payments	(2,629)		(60,153)		(3,549)


Balance at October 28, 2023	$	—	$	36,981	$	110,446
Accrued liabilities	$	—	$	13,845	$	110,446
Other non-current liabilities	$	—	$	23,136	$	—

Q4 2023 Plan

In the fourth quarter of fiscal 2023, the Company committed to a plan to reorganize its business (the Q4 2023 Plan). The Q4 2023 Plan, consisting of voluntary and involuntary reductions-in-force and other cost-savings initiatives, was commenced to adjust the Company’s cost structure and business activities to better align with weaker market demand and continued economic uncertainty in its end markets, as well as to make certain strategic shifts in its workforce necessary to achieve its long-term vision. The reductions-in-force, which are subject to the laws and regulations of the countries in which the actions are planned, are expected to impact positions in manufacturing, engineering and selling, marketing, general and administrative functions. The Company recorded net special charges of $114.0 million during the fourth quarter of fiscal 2023 related to the Q4 2023 Plan. In connection with the Q4 2023 Plan, the Company expects to incur special charges, net of between $120.0 million and $140.0 million, primarily related to reductions-in-force. The Company expects that the majority of the actions under the Q4 2023 Plan will be completed by the second quarter of fiscal 2024 ending May 4, 2024. The Company expects to settle these charges with cash on hand, together with existing and anticipated available short-term financing.

Global Repositioning Actions

The Company recorded net special charges of $532.7 million on a cumulative basis through October 28, 2023, 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 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.

Closure of Manufacturing FacilitiesThe Company recorded net special charges of $63.8 million on a cumulative basis through October 28, 2023 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear. The net special charges included cumulative gains of $18.0 million related to net proceeds received of approximately $67.5 million for the sale of its Hillview wafer fabrication facility and certain equipment located in Milpitas, California as well as the sale of its facility and certain equipment in Singapore.