Special Charges

12 Months Ended

Nov. 02, 2019

Restructuring and Related Activities [Abstract]

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 table displays a roll-forward from October 29, 2016 to November 2, 2019 of the employee separation and exit cost accruals established related to these actions.


Accrued Restructuring	Closure of Manufacturing Facilities		Reduction of Operating Costs Action		Early Retirement Action		Repositioning Action
























Balance at October 29, 2016	$	—	$	12,374	$	—	$	—
Fiscal 2017 special charges	—		8,126		41,337		—
Severance payments	—		(15,764)		(9,126)		—
Effect of foreign currency on accrual	—		401		—		—
Balance at October 28, 2017	$	—	$	5,137	$	32,211	$	—
Fiscal 2018 special charges	44,452		16,866		—		—
Severance payments	—		(16,785)		(22,314)		—
Effect of foreign currency on accrual	(1,478)		37		—		—
Balance at November 3, 2018	$	42,974	$	5,255	$	9,897	$	—
Fiscal 2019 special charges	7,556		—		—		88,103
Severance payments	—		(4,320)		(5,314)		(12,487)
Non-cash impairment charge	—		—		—		(14,167)
Non-cash accelerated stock based compensation	—		—		—		(2,538)
Effect of foreign currency on accrual	(129)		5		—		(16)
Balance at November 2, 2019	$	50,401	$	940	$	4,583	$	58,895
Current - accrued liabilities	$	—	$	940	$	4,583	$	58,895
Other non-current liabilities	$	50,401	$	—	$	—	$	—

Closure of Manufacturing Facilities

The Company recorded special charges of $52.0 million on a cumulative basis through November 2, 2019 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation (Linear). Over the next one to three 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 charges include severance and fringe benefit costs, in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations and one-time termination benefits for approximately 1,100 manufacturing, engineering and SMG&A employees. 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 by the Company in order to receive the severance benefits.

Reduction of Operating Costs Actions

During fiscal 2018, the Company recorded special charges of approximately $16.9 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. During 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. The Company terminated the employment of all employees associated with this action.

Early Retirement Action

During fiscal 2017, the Company initiated an early retirement action. 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. The Company terminated the employment of all employees associated with this action.

Repositioning Action

During fiscal 2019, the Company recorded special charges of $88.1 million, as a result of organizational initiatives to reposition the Company's global workforce skill set to align with the Company's long-term strategic plan. Approximately $73.9 million of the total charges were for severance and fringe benefit costs in accordance with either the Company's ongoing benefit plan or statutory requirements for 464 manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees. As of November 2, 2019, the Company still employed 307 of the 464 employees included in this action. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefits. The remaining $14.2 million of the charges related to the write-off of acquired intellectual property due to the Company's decision to discontinue certain product development strategies.