Restructuring, Impairment and Disposal Charges

Restructuring Charges

The following is a summary of significant restructuring expense recognized in continuing operations, primarily in operating expenses:


•	During fiscal year 2018, we initiated cost reduction activities associated with the Brocade Merger. As a result, we recognized $176 million of restructuring expense primarily related to employee termination costs. Approximately 1,200 employees were terminated from our workforce across all business and functional areas on a global basis as a result of the Brocade Merger during fiscal year 2018.

•

During fiscal year 2016, we initiated cost reduction activities associated with the acquisition of BRCM. As a result, we recognized $50 million, $124 million and $447 million of restructuring expense in fiscal years 2018, 2017, and 2016 respectively. These restructuring expenses primarily related to lease and other exit costs for fiscal year 2018 and employee termination costs for fiscal years 2017 and 2016.

As of November 4, 2018, we have substantially completed the restructuring activities related to the acquisition of BRCM.



	Employee Termination Costs			Lease and Other Exit Costs			Total

	(In millions)
Balance as of November 2, 2015	$	13		$	13		$	26
Liabilities assumed from BRCM	2			13			15
Restructuring charges	445			37			482
Utilization	(344		)	(28		)	(372		)
Balance as of October 30, 2016	116			35			151
Restructuring charges	86			43			129
Utilization	(174		)	(61		)	(235		)
Balance as of October 29, 2017	28			17			45
Restructuring charges ^(a)	153			75			228
Utilization	(165		)	(86		)	(251		)
Balance as of November 4, 2018 ^(b)	$	16		$	6		$	22

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(a)	Included $2 million, $5 million and $35 million of restructuring charges related to discontinued operations recognized during fiscal years 2018, 2017 and 2016, respectively, which was included in loss from discontinued operations in our consolidated statements of operations.


(b)	The majority of the employee termination costs balance is expected to be paid during the first quarter of fiscal year 2019. The leases and other exit costs balance is expected to be paid by the end of fiscal year 2019.

Impairment and Disposal Charges

During fiscal year 2018, impairment and disposal charges of $13 million primarily related to leasehold improvements.

During fiscal year 2017, impairment and disposal charges of $56 million related to property, plant and equipment and IPR&D projects acquired in the BRCM acquisition.

During fiscal year 2016, impairment and disposal charges of $417 million primarily related to IPR&D projects which were abandoned as a result of the BRCM acquisition. In addition, we recorded impairment charges of $173 million primarily for property, plant and equipment and a $16 million loss on disposal of these assets acquired in the BRCM acquisition.