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Employee-Separation Programs
12 Months Ended
Nov. 01, 2020
Employee-Separation Programs  
Employee-Separation Programs

Note 22. Employee-Separation Programs

During 2020, the Company implemented employee-separation programs for the Company’s salaried workforce in several geographic areas, including the United States, Europe, and Latin America. The programs’ main purpose was to improve efficiency through a leaner, more flexible organization. The programs were largely voluntary in nature with the expense recorded primarily in the period in which the employees irrevocably accepted a separation offer. For the limited involuntary employee-separation programs, the expense was recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. The programs provided for cash payments based on years of service, and in some countries subsidized healthcare for a limited period and outplacement services. The programs’ total pretax expense in 2020 was $19.7 million, which was recorded in administrative and operating expenses. The total pretax expense included non-cash charges of $5.5 million resulting from curtailments in certain OPEB plans (See Note 13). Program payments of $5.7 million were made in 2020, with $8.5 million to be disbursed over two years.

During 2019, the Company incurred voluntary employee-separation program expenses of $8.4 million as part of its effort to reduce operating costs. The programs provided cash payments based on years of service. The expenses were recognized in the periods the employees irrevocably accepted the separation offer and were recorded in administrative and operating expenses. The Company did not offer similar programs in 2018.