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RESTRUCTURING AND OTHER RELATED COSTS | 9 Months Ended
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Jul. 31, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure | RESTRUCTURING AND OTHER RELATED COSTS Summary of Restructuring Plans. In fiscal year 2024 and 2023, we announced restructuring plans that were both designed to reduce costs and expenses in response to recent macroeconomic conditions. These actions impact all three of our business segments. The costs associated with these restructuring plans were not allocated to our business segments' results; however, each business segment will benefit from the future cost savings from these actions. When completed, the restructuring programs are expected to result in the reduction in annual cost of sales and operating expenses over the three business segments. A summary of our aggregate liability relating to both restructuring plans and the total restructuring expense since inception of those plans are shown in the table below:
| Workforce Reduction |  | Consolidation of Excess Facilities |  |  |  | Total
| (in millions)
Balance at October 31, 2023 | $ | 31 |  |  | $ | 5 |  |  |  |  | $ | 36 |
Income statement expense | 2 |  |  | 1 |  |  |  |  | 3 |
Non-cash settlement | — |  |  | (1) |  |  |  |  | (1) |
Cash payments | (25) |  |  | (2) |  |  |  |  | (27) |
Balance at January 31, 2024 | $ | 8 |  |  | $ | 3 |  |  |  |  | $ | 11 |
Income statement expense | 1 |  |  | — |  |  |  |  | 1 |
Cash payments | (5) |  |  | (1) |  |  |  |  | (6) |
Balance at April 30, 2024 | $ | 4 |  |  | $ | 2 |  |  |  |  | $ | 6 |
Income statement expense | 67 |  |  | — |  |  |  |  | 67 |
Non-cash settlement | (6) |  |  | — |  |  |  |  | (6) |
Cash payments | (20) |  |  | (1) |  |  |  |  | (21) |
Balance at July 31, 2024 | $ | 45 |  |  | $ | 1 |  |  |  |  | $ | 46 |
Total restructuring expense since inception of all plans |  |  |  |  |  |  | $ | 117 |
The aggregate restructuring liability of $46 million at July 31, 2024, is recorded in other accrued liabilities on the condensed consolidated balance sheet and reflects estimated future cash outlays. A summary of the charges in the condensed consolidated statement of operations resulting from both restructuring plans is shown below:
|  | Three Months Ended |  | Nine Months Ended
|  | July 31, |  | July 31,
|  | 2024 |  | 2024
|  | (in millions)
Cost of products and services |  | $ | 12 |  |  | $ | 12 |
Research and Development |  | 18 |  |  | 20 |
Selling, general and administrative |  | 37 |  |  | 39 |
Total restructuring costs |  | $ | 67 |  |  | $ | 71 |
Fiscal Year 2024 Plan ("FY24 Plan"). In the third quarter of fiscal year 2024, we announced a new restructuring plan designed to further reduce costs and expenses in response to current macroeconomic conditions. The plan includes a reduction of our total headcount by approximately 500 regular employees, representing approximately 3 percent of our global workforce. The timing and scope of the workforce reductions will vary based on local legal requirements. The costs associated with this workforce reduction include severance and other personnel-related costs. While the majority of the workforce reduction will be completed by the end of fiscal year 2024, we expect to substantially complete the remaining restructuring activities by the second quarter of fiscal year 2025. In connection with the FY24 Plan, we have recorded approximately $67 million in restructuring and other related costs in both the three and nine months ended July 31, 2024. A summary of the FY24 Plan activity is shown in the table below:
| Workforce Reduction
| (in millions)
Balance at April 30, 2024 | $ | — |
Income statement expense | 67 |
Non-cash settlement (accelerated share-based compensation expense) | (6) |
Cash payments | (19) |
Balance at July 31, 2024 | $ | 42 |
Total restructuring expense since inception of FY 24 Plan | $ | 67 |
Fiscal Year 2023 Plan ("FY23 Plan"). In the fourth quarter of fiscal year 2023, we initiated the restructuring plan designed to reduce costs and expenses in response to the macroeconomic conditions. The plan included a reduction of our total headcount by approximately 400 regular employees, representing approximately 2 percent of our global workforce, and the consolidation of our excess facilities, including some site closures. In connection with this plan, we have recorded approximately zero and $4 million in restructuring and other related costs in the three and nine months ended July 31, 2024, respectively. The restructuring plan costs include severance and other personnel costs associated with the workforce reduction. The consolidation of excess facilities includes accelerated depreciation expenses of right-of-use ("ROU") and machinery and equipment assets, and other facilities-related costs. The timing and scope of the workforce reductions will vary based on local legal requirements. While the majority of the workforce reduction was completed in the first quarter of 2024, we expect to substantially complete the remaining restructuring activities by the end of fiscal year 2024. A summary of the FY23 Plan activity is shown in the table below:
| Workforce Reduction |  | Consolidation of Excess Facilities |  |  |  | Total
| (in millions)
Balance at October 31, 2023 | $ | 31 |  |  | $ | 5 |  |  |  |  | $ | 36 |
Income statement expense | 2 |  |  | 1 |  |  |  |  | 3 |
Non-cash settlement (accelerated depreciation expense of right-of-use assets) | — |  |  | (1) |  |  |  |  | (1) |
Cash payments | (25) |  |  | (2) |  |  |  |  | (27) |
Balance at January 31, 2024 | $ | 8 |  |  | $ | 3 |  |  |  |  | $ | 11 |
Income statement expense | 1 |  |  | — |  |  |  |  | 1 |
Cash payments | (5) |  |  | (1) |  |  |  |  | (6) |
Balance at April 30, 2024 | $ | 4 |  |  | $ | 2 |  |  |  |  | $ | 6 |
Cash payments | (1) |  |  | (1) |  |  |  |  | (2) |
Balance at July 31, 2024 | $ | 3 |  |  | $ | 1 |  |  |  |  | $ | 4 |
Total restructuring expense since inception of FY23 Plan |  |  |  |  |  |  | $ | 50 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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