SYNOPSYS INC - 10-Q filing on 2020-08-21

Liabilities and Restructuring Charges

9 Months Ended

Jul. 31, 2020

Liabilities and Restructuring Charges [Abstract]

In the second quarter of fiscal 2019, the Company initiated a restructuring plan 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 plan were $84 million and consisted primarily of severance, termination, and retirement benefits under the 2019 Voluntary Retirement Program (VRP).

During the three and nine months ended July 31, 2020, the Company adjusted restructuring charges by approximately $(2.0) million and incurred restructuring charges of $36.4 million, respectively, under the 2019 restructuring plan. These charges consisted primarily of severance, termination, and retirement benefits. During the three and nine months ended July 31, 2020, the Company made payments of $25.0 million and $55.7 million, respectively, related to the 2019 employee termination actions. As of July 31, 2020, $3.3 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 and nine months ended July 31, 2019, the Company incurred restructuring charges of approximately $19.3 million and $33.7 million, respectively, for involuntary employee termination actions and the VRP. These charges consisted primarily of severance, termination and retirement benefits. As of July 31, 2019, $20.8 million remained outstanding and was recorded in accounts payable and accrued liabilities as payroll and related benefits in the unaudited condensed consolidated balance sheets. 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
	July 31, 2020		October 31, 2019
	(in thousands)
Payroll and related benefits	$	417,403	$	417,157
Other accrued liabilities	95,377		69,487
Accounts payable	37,126		19,815
Total	$	549,906	$	506,459

Other long-term liabilities consist of:



	As of
	July 31, 2020		October 31, 2019
	(in thousands)
Deferred compensation liability	$	269,484	$	249,822
Other long-term liabilities	19,927		73,903
Total	$	289,411	$	323,725