Liabilities and Restructuring Charges

3 Months Ended

Jan. 31, 2020

Liabilities and Restructuring Charges [Abstract]

In the second quarter of fiscal 2019, the Company initiated restructuring plans for involuntary and voluntary employee termination and facility closure actions as part of a business reorganization to better position the Company for future growth by reallocating resources to priority areas, and to a lesser extent, eliminating operational redundancy. The total charges under the 2019 restructuring plans are expected to be $56 million to $65 million and consist primarily of severance, termination, and retirement benefits under the 2019 Voluntary Retirement Program (VRP). The actual total charges depend, in part, on the number of eligible employees accepting offers of the VRP. The 2019 restructuring plans are anticipated to be completed by the second quarter of fiscal 2020.

During the three months ended January 31, 2020, the Company incurred restructuring charges of approximately $8.8 million for involuntary employee termination actions and the VRP. These charges consisted primarily of severance, termination, and retirement benefits. During the three months ended January 31, 2020, the Company made payments of $6.1 million related to the 2019 employee termination actions. As of January 31, 2020, $25.3 million remained outstanding and was recorded in accounts payable and accrued liabilities as payroll and related benefits in the unaudited condensed consolidated balance sheets. The remaining balance will be paid in fiscal 2020.

During the three months ended January 31, 2019, the Company did not incur any restructuring charges and made payments of $6.8 million related to the 2018 employee termination actions. As of January 31, 2019, $1.3 million remained outstanding and was recorded in accounts payable and accrued liabilities as payroll and related benefits in the unaudited condensed consolidated balance sheets. The majority of the remaining balance related to the 2018 employee termination actions was paid off in fiscal 2019. As of October 31, 2019, $22.6 million related to the 2019 employee termination actions remained outstanding and was recorded in accounts payable and accrued liabilities as payroll and related benefits in the consolidated balance sheets.

Accounts payable and accrued liabilities consist of:



	As of
	January 31, 2020		October 31, 2019
	(in thousands)
Payroll and related benefits	$	266,282	$	417,157
Other accrued liabilities	62,491		69,487
Accounts payable	26,579		19,815
Total	$	355,352	$	506,459

Other long-term liabilities consist of:



	As of
	January 31, 2020		October 31, 2019
	(in thousands)
Deferred compensation liability	$	265,653	$	249,822
Other long-term liabilities	18,558		73,903
Total	$	284,211	$	323,725