XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Restructuring and Related Charges | 9 Months Ended
--- | ---
May 31, 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 $31.4 million and $108.9 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and nine months ended May 31, 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 nine months ended May 31, 2017 include cash costs of $17.3 million and $43.3 million related to employee severance and benefit costs, respectively, $1.2 million and $5.6 million related to lease costs, respectively, $1.1 million and $1.4 million of other related costs, respectively, as well as non-cash costs related to asset write-off costs of $11.8 million and $58.6 million, 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 under the 2017 Restructuring Plan. The restructuring and related charges are expected to include $55.0 million to $75.0 million of employee severance an d 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 $108.9 million of restructuring and related costs have been recognized. Of the $108.9 million recognized to date, $19.1 million was allocated to the EMS segment, $65.9 million was allocated to the DMS segment and $23.9 million was not allocated to a segment. The remaining $86.1 million of the restru cturing and related costs expected to 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 a nd consultation with the Company’s employees and their representatives. The tables below set forth the significant components and activity in the 2017 Restructuring Plan during the three months and nine months ended May 31, 2017 (in thousands):
2017 Restructuring Plan – Three Months Ended May 31, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| February 28, 2017 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
Employee severance and benefit costs | $ | 10,337 |  | $ | 17,328 |  | $ | 20 |  | $ | (5,085) |  | $ | 22,600
Lease costs |  | 3,572 |  |  | 1,151 |  |  | 26 |  |  | (1,049) |  |  | 3,700
Asset write-off costs |  | ― |  |  | 11,838 |  |  | (11,838) |  |  | ― |  |  | ―
Other related costs |  | 50 |  |  | 1,082 |  |  | ― |  |  | (518) |  |  | 614
Total | $ | 13,959 |  | $ | 31,399 |  | $ | (11,792) |  | $ | (6,652) |  | $ | 26,914
2017 Restructuring Plan – Nine Months Ended May 31, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| August 31,2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
Employee severance and benefit costs | $ | ― |  | $ | 43,314 |  | $ | 20 |  | $ | (20,734) |  | $ | 22,600
Lease costs |  | ― |  |  | 5,600 |  |  | 26 |  |  | (1,926) |  |  | 3,700
Asset write-off costs |  | ― |  |  | 58,543 |  |  | (58,543) |  |  | ― |  |  | ―
Other related costs |  | ― |  |  | 1,421 |  |  | ― |  |  | (807) |  |  | 614
Total | $ | ― |  | $ | 108,878 |  | $ | (58,497) |  | $ | (23,467) |  | $ | 26,914
The tables below set forth the significant components and activity in the 201 7 Restructuring Plan by reportable segment during the three months and nine months ended May 31, 2017 (in thousands):
2017 Restructuring Plan – Three Months Ended May 31, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | February 28, 2017 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
| EMS | $ | 471 |  | $ | 11,061 |  | $ | (1,819) |  | $ | (1,624) |  | $ | 8,089
| DMS |  | 3,639 |  |  | 17,836 |  |  | (10,188) |  |  | (2,334) |  |  | 8,953
| Other |  | 9,849 |  |  | 2,502 |  |  | 215 |  |  | (2,694) |  |  | 9,872
| Total | $ | 13,959 |  | $ | 31,399 |  | $ | (11,792) |  | $ | (6,652) |  | $ | 26,914
2017 Restructuring Plan – Nine Months Ended May 31, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | August 31, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
| EMS | $ | ― |  | $ | 19,118 |  | $ | (8,542) |  | $ | (2,487) |  | $ | 8,089
| DMS |  | ― |  |  | 65,842 |  |  | (49,937) |  |  | (6,952) |  |  | 8,953
| Other |  | ― |  |  | 23,918 |  |  | (18) |  |  | (14,028) |  |  | 9,872
| Total | $ | ― |  | $ | 108,878 |  | $ | (58,497) |  | $ | (23,467) |  | $ | 26,914
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 $1.3 million and $4.7 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and nine months ended May 31, 2017, respectively, compared to $4.5 million and $8.3 million during the three months and nine months ended May 31, 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 or der to reduce operating expenses. The restructuring and related charges during the three months and nine months ended May 31, 2017 include cash costs of $0.8 million and $3.4 million related to employee severance and benefit costs, respectively, and $0.5 million and $1.2 million of other related costs, respectively, as well as non-cash costs related to asset write-off costs of $0.0 million and $0.1 million, respectively. The restructuring and related charges during the three months and nine months ended May 31, 2016 include cash costs of $4.2 million and $7.7 million related to employee severance and benefit costs, respectively, and $0.3 million and $0.6 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 201 8 under the 2013 Restructuring Plan. Since the inception of the 2013 Restructuring Plan, a total of $166.5 million of restructuring and rela ted costs have been recognized. Of the $166.5 million recognized to date, $128.8 million was allocated to the EMS segment, $28.8 million was allocated to the DMS segment and $8.9 million was no t allocated to a segment. A majority of the total restructuring costs are 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 201 8. The remaining $12.5 million of the restructuring and related costs expected to b e 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 empl oyees and their representatives. The tables below set forth the significant components and activity in the 2013 Restructuring Plan during the three months and nine months ended May 31, 2017 and 2016 (in thousands):
2013 Restructuring Plan – Three Months Ended May 31, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| February 28, 2017 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
Employee severance and benefit costs | $ | 11,756 |  | $ | 843 |  | $ | 400 |  | $ | (6,875) |  | $ | 6,124
Lease costs |  | 21 |  |  | ― |  |  | ― |  |  | ― |  |  | 21
Other related costs |  | 829 |  |  | 458 |  |  | 51 |  |  | (449) |  |  | 889
Total | $ | 12,606 |  | $ | 1,301 |  | $ | 451 |  | $ | (7,324) |  | $ | 7,034
2013 Restructuring Plan – Nine Months Ended May 31, 2017
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| August 31, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
Employee severance and benefit costs | $ | 17,266 |  | $ | 3,340 |  | $ | (322) |  | $ | (14,160) |  | $ | 6,124
Lease costs |  | 21 |  |  | ― |  |  | ― |  |  | ― |  |  | 21
Asset write-off costs |  | ― |  |  | 70 |  |  | (70) |  |  | ― |  |  | ―
Other related costs |  | 740 |  |  | 1,241 |  |  | 16 |  |  | (1,108) |  |  | 889
Total | $ | 18,027 |  | $ | 4,651 |  | $ | (376) |  | $ | (15,268) |  | $ | 7,034
2013 Restructuring Plan – Three Months Ended May 31, 2016
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| February 29, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2016
Employee severance and benefit costs | $ | 18,115 |  | $ | 4,197 |  | $ | 407 |  | $ | (3,234) |  | $ | 19,485
Lease costs |  | 64 |  |  | (43) |  |  | ― |  |  | ― |  |  | 21
Other related costs |  | 871 |  |  | 306 |  |  | 22 |  |  | (310) |  |  | 889
Total | $ | 19,050 |  | $ | 4,460 |  | $ | 429 |  | $ | (3,544) |  | $ | 20,395
2013 Restructuring Plan – Nine Months Ended May 31, 2016
|  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
| Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
| August 31, 2015 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2016
Employee severance and benefit costs | $ | 30,047 |  | $ | 7,743 |  | $ | (404) |  | $ | (17,901) |  | $ | 19,485
Lease costs |  | 64 |  |  | (43) |  |  | ― |  |  | ― |  |  | 21
Other related costs |  | 846 |  |  | 649 |  |  | ― |  |  | (606) |  |  | 889
Total | $ | 30,957 |  | $ | 8,349 |  | $ | (404) |  | $ | (18,507) |  | $ | 20,395
The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and nine months ended May 31, 2017 and 2016 (in thousands):
2013 Restructuring Plan – Three Months Ended May 31, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | February 28, 2017 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
| EMS | $ | 12,169 |  | $ | 1,371 |  | $ | 438 |  | $ | (7,309) |  | $ | 6,669
| DMS |  | 437 |  |  | (70) |  |  | 13 |  |  | (15) |  |  | 365
| Total | $ | 12,606 |  | $ | 1,301 |  | $ | 451 |  | $ | (7,324) |  | $ | 7,034
2013 Restructuring Plan – Nine Months Ended May 31, 2017
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | August 31, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2017
| EMS | $ | 17,338 |  |  | 4,651 |  |  | (306) |  |  | (15,014) |  | $ | 6,669
| DMS |  | 689 |  |  | ― |  |  | (70) |  |  | (254) |  |  | 365
| Total | $ | 18,027 |  | $ | 4,651 |  | $ | (376) |  | $ | (15,268) |  | $ | 7,034
2013 Restructuring Plan – Three Months Ended May 31, 2016
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | February 29, 2016 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2016
| EMS | $ | 17,115 |  | $ | 4,460 |  | $ | 429 |  | $ | (2,858) |  | $ | 19,146
| DMS |  | 1,935 |  |  | ― |  |  | ― |  |  | (686) |  |  | 1,249
| Total | $ | 19,050 |  | $ | 4,460 |  | $ | 429 |  | $ | (3,544) |  | $ | 20,395
2013 Restructuring Plan – Nine Months Ended May 31, 2016
|  |  |  | Restructuring |  | Asset Write-off |  |  |  |  |  |
|  | Liability Balance at |  | Related |  | Charge and Other |  | Cash |  | Liability Balance at
|  | August 31, 2015 |  | Charges |  | Non-Cash Activity |  | Payments |  | May 31, 2016
| EMS | $ | 28,834 |  | $ | 7,454 |  | $ | (395) |  | $ | (16,747) |  | $ | 19,146
| DMS |  | 1,960 |  |  | 1,014 |  |  | (9) |  |  | (1,716) |  |  | 1,249
| Other |  | 163 |  |  | (119) |  |  | ― |  |  | (44) |  |  | ―
| Total | $ | 30,957 |  | $ | 8,349 |  | $ | (404) |  | $ | (18,507) |  | $ | 20,395

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration