Special Charges

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 restructuring actions over the past several years. These actions are described below.

The following tables display the special charges taken for ongoing actions and a roll-forward from October 28, 2017 to August 4, 2018 of the employee separation and exit cost accruals established related to these actions.



	Closure of Manufacturing Facilities		Reduction of Operating Costs Action		Early Retirement Action		Total Special Charges
Statements of Income
Fiscal 2016 - Workforce reductions	$	—	$	13,684	$	—	13,684
Fiscal 2017 - Workforce reductions	$	—	$	8,126	$	41,337	$	49,463
Fiscal 2018 - Workforce reductions	$	43,359	$	16,117	$	—	$	59,476



Accrued Restructuring	Closure of Manufacturing Facilities		Reduction of Operating Costs Action			Early Retirement Action
Balance at October 28, 2017	$	—	$	5,137		$	32,211
Fiscal 2018 special charges	41,201		16,117			—
Severance and other payments	—		(2,798		)	(6,461		)
Effect of foreign currency on accrual	—		66			—
Balance at February 3, 2018	$	41,201	$	18,522		$	25,750
Fiscal 2018 special charges	1,089		—			—
Severance and other payments	—		(8,316		)	(6,234		)
Effect of foreign currency on accrual	—		(21		)	—
Balance at May 5, 2018	$	42,290	$	10,185		$	19,516
Fiscal 2018 special charges	1,069		—			—
Severance and other payments	—		(3,399		)	(5,499		)
Effect of foreign currency on accrual	—		(6		)	—
Balance at August 4, 2018	$	43,359	$	6,780		$	14,017

Closure of Manufacturing Facilities

During the first quarter of fiscal 2018, the Company recorded a special charge of $41.2 million as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the Acquisition. Over the next three to five years, the Company plans to close its Hillview wafer fabrication facility located in Milpitas, California and its Singapore test facility. The Company intends to transfer Hillview wafer fabrication production to its other internal facilities and to external foundries. In addition, the Company is planning to transition testing operations currently handled in its Singapore facility to its facilities in Penang, Malaysia and the Philippines, in addition to its outsourced assembly and test partners. The special charge was for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 1,249 manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees.

During the second and third quarters of fiscal 2018, the Company recorded special charges totaling $2.2 million in the aggregate related to one-time termination benefits for employees included in this action. These one-time termination benefits are being recognized over the future service period required for employees to earn these benefits. Employees included in this action must continue to be employed by the Company until their employment is terminated in order to receive the severance benefits. The accrual related to this action is included in other non-current liabilities in the condensed consolidated balance sheet as of August 4, 2018.

Reduction of Operating Costs Action

During the second quarter of the fiscal year ended October 29, 2016 (fiscal 2016), the Company recorded special charges of approximately $13.7 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan for 123 manufacturing, engineering and SMG&A employees. As of August 4, 2018, the Company still employed 5 of the 123 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefits.

During the first quarter of fiscal 2017, the Company recorded special charges of approximately $8.1 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 177 manufacturing, engineering and SMG&A employees. As of August 4, 2018, the Company still employed 2 of the 177 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is terminated in order to receive the severance benefits.

During the first quarter of fiscal 2018, the Company recorded special charges of approximately $16.1 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 126 manufacturing, engineering and SMG&A employees. As of August 4, 2018, the Company still employed 7 of the 126 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is terminated in order to receive the severance benefits.

The accrual related to these actions is included in accrued liabilities in the condensed consolidated balance sheet as of August 4, 2018.

Early Retirement Offer Action

During the first quarter of fiscal 2017, the Company initiated an early retirement offer. This resulted in a special charge of approximately $41.3 million for severance, related benefits and other costs in accordance with this program for 225 manufacturing, engineering and SMG&A employees. As of August 4, 2018, the Company still employed 2 of the 225 employees included in these cost reduction actions. These employees must continue to be employed by the Company until their employment is terminated in order to receive the severance benefits. The accrual related to this action is included in accrued liabilities in the condensed consolidated balance sheet as of August 4, 2018.