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Restructuring, Severance and Related Charges | 6 Months Ended
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Feb. 29, 2024
Restructuring and Related Activities [Abstract] |
Restructuring, Severance and Related Charges | Restructuring, Severance and Related Charges Following is a summary of the Company’s restructuring, severance and related charges (in millions):
| Three months ended |  | Six months ended
| February 29, 2024(1) |  | February 28, 2023(2) |  | February 29, 2024(1) |  | February 28, 2023(2)
Employee severance and benefit costs | $ | 28 |  |  | $ | (4) |  |  | $ | 123 |  |  | $ | 36 |
Lease costs | 1 |  |  | — |  |  | 1 |  |  | — |
Asset write-off costs | 33 |  |  | 4 |  |  | 55 |  |  | 5 |
Other costs | 8 |  |  | — |  |  | 18 |  |  | 4 |
Total restructuring, severance and related charges(3) | $ | 70 |  |  | $ | — |  |  | $ | 197 |  |  | $ | 45 |
(1)Primarily relates to the 2024 Restructuring Plan. (2)Primarily relates to headcount reduction to further optimize the Company’s business activities. (3)Includes $11 million and $0 million recorded in the EMS segment, $35 million and $0 million recorded in the DMS segment and $24 million and $0 million of non-allocated charges for the three months ended February 29, 2024 and February 28, 2023, respectively. Includes $40 million and $4 million recorded in the EMS segment, $114 million and $33 million recorded in the DMS segment and $43 million and $8 million of non-allocated charges for the six months ended February 29, 2024 and February 28, 2023, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs. 2024 Restructuring Plan On September 26, 2023, the Company’s Board of Directors approved a restructuring plan to (i) realign the Company’s cost base for stranded costs associated with the Company’s sale and realignment of its mobility business and (ii) optimize the Company’s global footprint. This action includes headcount reductions across our Selling, General and Administrative (“SG&A”) cost base and capacity realignment (the “2024 Restructuring Plan”). The 2024 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 $300 million in pre-tax restructuring and other related costs over the course of the Company’s 2024 fiscal year. The restructuring and other related charges are expected to include $150 million to $180 million of employee severance and benefit costs; $80 million to $120 million of asset write-off costs; and $30 million to $40 million of contract termination costs and other related costs. The amount and timing of the actual charges may vary due to a variety of factors, including the finalization of timetables for the transition of functions, consultation with employees and their representatives, as well as the impact of jurisdictional statutory severance requirements. The Company’s estimates for the charges discussed above exclude any potential income tax effects. The table below summarizes the Company’s liability activity, primarily associated with the 2024 Restructuring Plan (in millions):
| Employee Severance and Benefit Costs |  | Lease Costs |  | Asset Write-off Costs |  | Other Related Costs |  | Total
Balance as of August 31, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Restructuring related charges | 123 |  |  | 1 |  |  | 55 |  |  | 18 |  |  | 197 |
Asset write-off charge and other non-cash activity | — |  |  | — |  |  | (55) |  |  | (5) |  |  | (60) |
Cash payments | (57) |  |  | (1) |  |  | — |  |  | (4) |  |  | (62) |
Balance as of February 29, 2024 | $ | 66 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |  |  | $ | 75 |

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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/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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