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Restructuring and Related Charges | 6 Months Ended
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Feb. 28, 2017
Restructuring and Related Charges [Abstract] |
Restructuring and Related Charges | 12. Restructuring and Related Charges a. 201 7 Restructuring Plan In conjunction with the restructuring plan that was approved by the Company’s Board of Directors on S eptember 15, 2016 (the “2017 Restructuring Plan”), the Company charged $43.4 million and $77.5 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and six months ended February 28, 2017, respectively. The 2017 Restructuring Plan is intended to better align the Company’s global capacity a nd administrative support infrastructure in order to further optimize organizational effectiveness. This action includes headcount reductions across the Company’s Selling, General and Administrative cost base and capacity realignment in higher cost locati ons. The restructuring and related charges during the three months and six months ended February 28, 2017 include cash costs of $8.1 million and $26.0 million related to employee severance and benefit costs, respectively, $1.1 million and $4.5 million related to lease costs, respectively, $0.1 million and $0.3 million of other related costs, respectively, as well as non-cash costs of $34.1 million and $46.7 million related to asset write-off costs, respectively. The Company currently expects to recognize approximately $195.0 million in pr e-tax restructuring and other related costs over the course of the Company’s fiscal years 2017 and 2018. The restructuring and related charges are expected to include $55.0 million to $75.0 million of employee severance and benefit costs; $110.0 million to $130.0 million of asset write-off costs; and $10.0 million of contract termination costs and other related costs. Since the inception of the 2017 Restructuring Plan, a total of $77.5 million of restructuring and related costs have been recognized. Of the $77.5 million recognized to date, $8.1 million was allocated to the EMS segment, $48.0 million was allocated to the DMS segment and $21.4 million was not allocated to a segment. The remaining $117.5 million of the restructuring and related costs expected t o be recognized reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain plants are still subject to the finalization of timetables for the transition of functions and consultation with the Company’s e mployees and their representatives. The tables below set forth the significant components and activity in the 2017 Restructuring Plan during the three months and six months ended February 28, 2017 (in thousands):
2017 Restructuring Plan – Three Months Ended February 28, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| November 30, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
Employee severance and benefit costs | $ | 9,894 |  | $ | 8,090 |  | $ | 15 |  | $ | (7,662) |  | $ | 10,337
Lease costs |  | 2,524 |  |  | 1,158 |  |  | ― |  |  | (110) |  |  | 3,572
Asset write-off costs |  | ― |  |  | 34,065 |  |  | (34,065) |  |  | ― |  |  | ―
Other related costs |  | 89 |  |  | 104 |  |  | ― |  |  | (143) |  |  | 50
Total | $ | 12,507 |  | $ | 43,417 |  | $ | (34,050) |  | $ | (7,915) |  | $ | 13,959
2017 Restructuring Plan – Six Months Ended February 28, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| August 31,2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
Employee severance and benefit costs | $ | ― |  | $ | 25,986 |  | $ | ― |  | $ | (15,649) |  | $ | 10,337
Lease costs |  | ― |  |  | 4,449 |  |  | ― |  |  | (877) |  |  | 3,572
Asset write-off costs |  | ― |  |  | 46,705 |  |  | (46,705) |  |  | ― |  |  | ―
Other related costs |  | ― |  |  | 339 |  |  | ― |  |  | (289) |  |  | 50
Total | $ | ― |  | $ | 77,479 |  | $ | (46,705) |  | $ | (16,815) |  | $ | 13,959
The tables below set forth the significant components and activity in the 201 7 Restructuring Plan by reportable segment during the three months and six months ended February 28, 2017 (in thousands):
2017 Restructuring Plan – Three Months Ended February 28, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | November 30, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
| EMS | $ | 125 |  | $ | 2,536 |  | $ | (1,653) |  | $ | (537) |  | $ | 471
| DMS |  | 2,783 |  |  | 36,502 |  |  | (32,172) |  |  | (3,474) |  |  | 3,639
| Other |  | 9,599 |  |  | 4,379 |  |  | (225) |  |  | (3,904) |  |  | 9,849
| Total | $ | 12,507 |  | $ | 43,417 |  | $ | (34,050) |  | $ | (7,915) |  | $ | 13,959
2017 Restructuring Plan – Six Months Ended February 28, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | August 31, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
| EMS | $ | ― |  | $ | 8,057 |  | $ | (6,723) |  | $ | (863) |  | $ | 471
| DMS |  | ― |  |  | 48,006 |  |  | (39,749) |  |  | (4,618) |  |  | 3,639
| Other |  | ― |  |  | 21,416 |  |  | (233) |  |  | (11,334) |  |  | 9,849
| Total | $ | ― |  | $ | 77,479 |  | $ | (46,705) |  | $ | (16,815) |  | $ | 13,959
b. 2013 Restructuring Plan In conjunction with the restructuring plan that was approved by the Company’s Board of Directors in fiscal year 2013 (the “2013 Restructuring Plan”), the Company charged $1.5 million and $3.3 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and six months ended February 28, 2017, respectively, compared to $2.5 million and $3.9 million during the three months and six months ended February 29, 2016, respectively. The 2013 Restructuring Plan is intended to better align the Company’s manufacturing capacity in certain geographies and to reduce the Company’s worldwide workforce in order to reduce operating expenses. The restructuring and related charges during the three months and six months ended February 28, 2017 include cash costs of $1.0 million and $2.4 million related to employee severance and benefit costs, respectively, and $0.4 million and $0.8 million of other related costs, respectively, as well as non-cash costs of $0.1 million and $0.1 million related to asset write-off costs, respectively. The restructuring an d related charges during the three months and six months ended February 29, 2016 include cash costs of $2.5 million and $3.6 million related to employee severance and benefit costs, respectively, and $0.0 million and $0.3 million of other related costs, respectively. The Company currently expects to recognize approximately $179.0 million in pre-tax restructuring and other related costs over the course of the Company’s fiscal years 2013 through 2017 under the 2013 Restructuring Plan. Since the inception of the 2013 Restructuring Plan, a total of $165.2 million of restructuring and related costs have been recognized. Of the $165.2 million rec ognized to date, $127.4 million was allocated to the EMS segment, $28.9 million was allocated to the DMS segment and $8.9 million was not allocated to a segment. A majority of the total restructuring costs ar e related to employee severance and benefit arrangements. The charges related to the 2013 Restructuring Plan, excluding asset write-off costs, are currently expected to result in cash expenditures of approximately $157.4 million that have been or will be payable over the course of the Company’s fiscal years 2013 through 2017. The remaining $13.8 million of the restructuring and related costs expected to be recognized reflects the Company’s intention only and restructuring dec isions, and the timing of such decisions, at certain plants are still subject to the finalization of timetables for the transition of functions and consultation with the Company’s employees and their representatives. The tables below set forth the signifi cant components and activity in the 2013 Restructuring Plan during the three months and six months ended February 28, 2017 and February 29, 2016 (in thousands):
2013 Restructuring Plan – Three Months Ended February 28, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| November 30, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
Employee severance and benefit costs | $ | 15,204 |  | $ | 1,007 |  | $ | (53) |  | $ | (4,402) |  | $ | 11,756
Lease costs |  | 21 |  |  | ― |  |  | ― |  |  | ― |  |  | 21
Asset write-off costs |  | ― |  |  | 70 |  |  | (70) |  |  | ― |  |  | ―
Other related costs |  | 720 |  |  | 433 |  |  | (3) |  |  | (321) |  |  | 829
Total | $ | 15,945 |  | $ | 1,510 |  | $ | (126) |  | $ | (4,723) |  | $ | 12,606
2013 Restructuring Plan – Six Months Ended February 28, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| August 31, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
Employee severance and benefit costs | $ | 17,266 |  | $ | 2,497 |  | $ | (722) |  | $ | (7,285) |  | $ | 11,756
Lease costs |  | 21 |  |  | ― |  |  | ― |  |  | ― |  |  | 21
Asset write-off costs |  | ― |  |  | 70 |  |  | (70) |  |  | ― |  |  | ―
Other related costs |  | 740 |  |  | 783 |  |  | (35) |  |  | (659) |  |  | 829
Total | $ | 18,027 |  | $ | 3,350 |  | $ | (827) |  | $ | (7,944) |  | $ | 12,606
2013 Restructuring Plan – Three Months Ended February 29, 2016
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| November 30, 2015 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 29, 2016
Employee severance and benefit costs | $ | 20,775 |  | $ | 2,467 |  | $ | 586 |  | $ | (5,713) |  | $ | 18,115
Lease costs |  | 64 |  |  | ― |  |  | ― |  |  | ― |  |  | 64
Other related costs |  | 856 |  |  | 68 |  |  | 27 |  |  | (80) |  |  | 871
Total | $ | 21,695 |  | $ | 2,535 |  | $ | 613 |  | $ | (5,793) |  | $ | 19,050
2013 Restructuring Plan – Six Months Ended February 29, 2016
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| August 31, 2015 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 29, 2016
Employee severance and benefit costs | $ | 30,047 |  | $ | 3,545 |  | $ | (810) |  | $ | (14,667) |  | $ | 18,115
Lease costs |  | 64 |  |  | ― |  |  | ― |  |  | ― |  |  | 64
Other related costs |  | 846 |  |  | 343 |  |  | (22) |  |  | (296) |  |  | 871
Total | $ | 30,957 |  | $ | 3,888 |  | $ | (832) |  | $ | (14,963) |  | $ | 19,050
The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and six months ended February 28, 2017 and February 29, 2016 (in thousands):
2013 Restructuring Plan – Three Months Ended February 28, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | November 30, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
| EMS | $ | 15,388 |  | $ | 1,440 |  | $ | (55) |  | $ | (4,604) |  | $ | 12,169
| DMS |  | 557 |  |  | 70 |  |  | (71) |  |  | (119) |  |  | 437
| Total | $ | 15,945 |  | $ | 1,510 |  | $ | (126) |  | $ | (4,723) |  | $ | 12,606
2013 Restructuring Plan – Six Months Ended February 28, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | August 31, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 28, 2017
| EMS | $ | 17,338 |  |  | 3,280 |  |  | (744) |  |  | (7,705) |  | $ | 12,169
| DMS |  | 689 |  |  | 70 |  |  | (83) |  |  | (239) |  |  | 437
| Total | $ | 18,027 |  | $ | 3,350 |  | $ | (827) |  | $ | (7,944) |  | $ | 12,606
2013 Restructuring Plan – Three Months Ended February 29, 2016
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | November 30, 2015 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 29, 2016
| EMS | $ | 20,079 |  | $ | 1,757 |  | $ | 603 |  | $ | (5,324) |  | $ | 17,115
| DMS |  | 1,616 |  |  | 778 |  |  | 10 |  |  | (469) |  |  | 1,935
| Total | $ | 21,695 |  | $ | 2,535 |  | $ | 613 |  | $ | (5,793) |  | $ | 19,050
2013 Restructuring Plan – Six Months Ended February 29, 2016
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | August 31, 2015 |  | Charges |  | Non-Cash Activity |  | Payments |  | February 29, 2016
| EMS | $ | 28,834 |  | $ | 2,993 |  | $ | (823) |  | $ | (13,889) |  | $ | 17,115
| DMS |  | 1,960 |  |  | 1,014 |  |  | (9) |  |  | (1,030) |  |  | 1,935
| Other |  | 163 |  |  | (119) |  |  | ― |  |  | (44) |  |  | ―
| Total | $ | 30,957 |  | $ | 3,888 |  | $ | (832) |  | $ | (14,963) |  | $ | 19,050

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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