Restructuring and Related Charges

9 Months Ended

May 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring and Related Charges

11. Restructuring and Related Charges

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 $28.4 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and nine months ended May 31, 2013. 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 so as to address current market conditions and customer requirements. The restructuring and related charges for the three months and nine months ended May 31, 2013 include $22.7 million related to employee severance and benefit costs and $5.7 million related to other charges.

These restructuring and related charges associated with the 2013 Restructuring Plan incurred through May 31, 2013 of $28.4 million are primarily cash costs totaling $22.8 million, of which $12.2 million was paid in the third quarter of fiscal year 2013. The cash costs consist of employee severance and benefit costs of approximately $22.7 million and other related costs of approximately $0.1 million. Non-cash costs of approximately $5.6 million primarily represent asset write off charges related to the Company’s restructuring activities.

The Company currently expects to recognize approximately $188.0 million in pre-tax restructuring and other related costs over the course of the Company’s fiscal years 2013, 2014 and 2015 under the 2013 Restructuring Plan. A majority of the total restructuring costs are expected to be related to employee severance and benefit arrangements. The charges related to the 2013 Restructuring Plan, excluding asset charges, are currently expected to result in cash expenditures of approximately $140.0 million that will be payable over the course of the Company’s fiscal years 2013, 2014 and 2015. The exact amount and timing of these charges and cash outflows, as well as the estimated cost ranges by category type, have not been finalized. Much of the 2013 Restructuring Plan as discussed 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 employees and their representatives.

The table below sets forth the significant components and activity in the 2013 Restructuring Plan during the three months and nine months ended May 31, 2013 (in thousands):

2013 Restructuring Plan – Three Months and Nine Months Ended May 31, 2013

	Liability Balance at September 1, 2012 and February 28, 2013		Restructuring Related Charges		Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at May 31, 2013
Employee severance and benefit costs	$	—	$	22,719	$	(246	)	$	(12,143	)	$	10,330
Other related costs		—		5,673		(5,611	)		(18	)		44
Total	$	—	$	28,392	$	(5,857	)	$	(12,161	)	$	10,374

The table below sets forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and nine months ended May 31, 2013 (in thousands):

2013 Restructuring Plan – Three Months and Nine Months Ended May 31, 2013

	Liability Balance at September 1, 2012 and February 28, 2013		Restructuring Related Charges		Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at May 31, 2013
DMS	$	—	$	7,947	$	(166	)	$	(3,463	)	$	4,318
E&I	$	—		14,988		(5,605	)		(5,231	)		4,152
HVS	$	—		3,065		(86	)		(1,259	)		1,720
Other		—		2,392		—			(2,208	)		184
Total	$	—	$	28,392	$	(5,857	)	$	(12,161	)	$	10,374