Severance and Related Charges

9 Months Ended

Jul. 31, 2022

Restructuring and Related Activities [Abstract]

Fiscal 2021 Severance Plan

In the first quarter of fiscal 2021, Applied enacted a severance plan to realign its workforce. Under this plan, Applied implemented a one-time voluntary retirement program and other workforce reduction actions. The voluntary retirement program was available to certain U.S. employees who met minimum age and length of service requirements, as well as other business-specific criteria. The payments under this plan are paid at the time of termination and the related costs were not allocated to the segments. In addition, Applied implemented other workforce reduction actions globally across the Display and Adjacent Markets business. These costs were recorded under the Display and Adjacent Markets segment.

During the nine months ended July 31, 2022 and August 1, 2021, Applied recorded an adjustment of $4 million and recognized a total expense of $158 million of severance and related charges, respectively, in connection with the Fiscal 2021 Severance Plan.

Severance and related charges and adjustments by segment were as follows:


	Three Months Ended				Nine Months Ended
	July 31, 2022		August 1, 2021		July 31, 2022		August 1, 2021
	(In millions)
Display and Adjacent Markets	$	—	$	—	$	—	$	8
Corporate and Other	—		—		(4)		150
Total	$	—	$	—	$	(4)	$	158

Changes in severance and related charges reserves related to the Fiscal 2021 Severance Plan described above for the nine months ended July 31, 2022 were as follows:


	Severance and Related Charges Reserves

	(In millions)
Balance as of October 31, 2021	$	17
Adjustment to provision for severance	(4)
Consumption of reserves	(12)
Balance as of January 30, 2022	1

Consumption of reserves	—
Balance as of May 1, 2022	1

Consumption of reserves	—
Balance as of July 31, 2022	$	1