Special Charges

6 Months Ended

May 02, 2020

Restructuring and Related Activities [Abstract]

The following table is a quarterly roll-forward from November 2, 2019 to May 2, 2020 of the employee separation and exit cost accruals established related to existing restructuring 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


Second quarter fiscal 2020 special charges	1,320		—		—		—
Severance and other payments	(2,564)		(148)		(179)		(15,025)

Effect of foreign currency on accrual	(17)		—		—		(127)
Balance at May 2, 2020	$	50,184	$	510	$	4,215	$	23,279




Current - accrued liabilities	$	27,633	$	510	$	4,215	$	23,279
Other non-current liabilities	$	22,551	$	—	$	—	$	—

Repositioning Action

The Company recorded special charges of $97.2 million on a cumulative basis through May 2, 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 the impacted engineering and selling, marketing, general and administrative (SMG&A) employees. 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 $55.3 million on a cumulative basis through May 2, 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 (Linear). The Company plans to close its Hillview wafer fabrication facility located in Milpitas, California and its Singapore test facility in the fiscal year ending October 30, 2021. 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, one-time termination benefits for the impacted manufacturing, engineering and SMG&A employees and other exit costs. These one-time termination benefits are being recognized over the future service period required for employees to earn these benefits.