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Restructuring and Related Charges
 12 Months Ended
Aug. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges
Restructuring and Related Charges
Following is a summary of the Company’s restructuring and related charges (in thousands):
 
 
Fiscal Year Ended August 31,
 
 
2019
 
2018
 
2017(2)
Employee severance and benefit costs
 
$
16,029

 
$
16,269

 
$
56,834

Lease costs
 
(41
)
 
1,596

 
3,966

Asset write-off costs
 
(3,566
)
 
16,264

 
94,346

Other costs
 
13,492

 
2,773

 
5,249

Total restructuring and related charges(1)
 
$
25,914

 
$
36,902

 
$
160,395

 
(1) 
Includes $21.5 million, $16.3 million and $51.3 million recorded in the EMS segment, $2.6 million, $16.6 million and $82.4 million recorded in the DMS segment and $1.8 million, $4.0 million and $26.7 million of non-allocated charges for the fiscal years ended August 31, 2019, 2018 and 2017, respectively. Except for asset write-off costs, all restructuring and related charges are cash settled.
(2) 
Fiscal year ended August 31, 2017, includes expenses related to the 2017 and 2013 Restructuring Plans.
2017 Restructuring Plan
On September 15, 2016, the Company’s Board of Directors formally approved a restructuring plan to better align the Company’s global capacity and administrative support infrastructure 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 locations (the “2017 Restructuring Plan”).
The 2017 Restructuring Plan, totaling $195.0 million in restructuring and other related costs, is complete as of August 31, 2019.
The table below sets forth the cumulative restructuring and related charges incurred through August 31, 2019 for the 2017 Restructuring Plan (in thousands):
 
 
2017
Restructuring Plan(1)
Employee severance and benefit costs
 
$
74,656

Lease costs
 
5,521

Asset write-off costs
 
106,974

Other related costs
 
7,395

Total restructuring and related charges
 
$
194,546

 
(1) 
Includes $62.3 million allocated to the EMS segment, $101.6 million allocated to the DMS segment and $30.7 million of unallocated costs.
The tables below summarize the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands):
 
 
Employee Severance
and Benefit Costs
 
Lease Costs
 
Asset Write-off
Costs
 
Other
Related Costs
 
Total
Balance as of August 31, 2017
 
$
33,580

 
$
1,665

 
$
—

 
$
3,143

 
$
38,388

Restructuring related charges
 
16,269

 
1,596

 
16,264

 
2,773

 
36,902

Asset write-off charge and other non-cash activity
 
(127
)
 
525

 
(16,264
)
 
25

 
(15,841
)
Cash payments
 
(31,591
)
 
(1,102
)
 
—

 
(5,419
)
 
(38,112
)
Balance as of August 31, 2018
 
18,131

 
2,684

 
—

 
522

 
21,337

Restructuring related charges
 
16,029

 
(41
)
 
(3,566
)
 
2,071

 
14,493

Asset write-off charge and other non-cash activity
 
(494
)
 
—

 
3,566

 
(18
)
 
3,054

Cash payments
 
(30,504
)
 
(663
)
 
—

 
(1,786
)
 
(32,953
)
Balance as of August 31, 2019
 
$
3,162

 
$
1,980

 
$
—

 
$
789

 
$
5,931


2020 Restructuring Plan
On September 20, 2019, the Company’s Board of Directors formally approved a restructuring plan to realign the Company’s global capacity support infrastructure, particularly in the Company’s mobility footprint in China, in order to optimize organizational effectiveness. This action includes headcount reductions and capacity realignment (the “2020 Restructuring Plan”). The 2020 Restructuring Plan reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain locations are still subject to consultation with the Company’s employees and their representatives.
The Company currently expects to recognize approximately $85.0 million in pre-tax restructuring and other related costs primarily over the course of the Company’s fiscal year 2020. This information will be subject to the finalization of timetables for the transition of functions, consultation with employees and their representatives as well as the statutory severance requirements of the particular jurisdictions impacted, and the amount and timing of the actual charges may vary due to a variety of factors. The Company’s estimates for the charges discussed above exclude any potential income tax effects.