Special Charges

3 Months Ended

Feb. 01, 2020

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 is a quarterly roll-forward from November 2, 2019 to February 1, 2020 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 November 2, 2019	$	50,401	$	940	$	4,583	$	58,895
First quarter fiscal 2020 special charges	1,982		—		—		9,154
Severance and other payments	(908)		(282)		(189)		(29,597)

Effect of foreign currency on accrual	(30)		—		—		(21)
Balance at February 1, 2020	$	51,445	$	658	$	4,394	$	38,431











Current - accrued liabilities	$	—	$	658	$	4,394	$	38,431
Other non-current liabilities	$	51,445	$	—	$	—	$	—

Repositioning Action

The Company recorded special charges of $97.2 million on a cumulative basis through February 1, 2020, 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 $83.0 million of the total charges was for severance and fringe benefit costs in accordance with either the Company's ongoing benefit plan or statutory requirements for 504 engineering and selling, marketing, general and administrative (SMG&A) employees. As of February 1, 2020, the Company still employed 109 of the 504 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 were recorded in fiscal 2019 and related to the write-off of acquired intellectual property due to the Company's decision to discontinue certain product development strategies.

Closure of Manufacturing FacilitiesThe Company recorded special charges of $54.0 million on a cumulative basis through February 1, 2020 as a result of its decision to consolidate certain wafer and test facility operations acquired as part of the acquisition of Linear Technology Corporation. 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 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.