13. 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 $89.5 million of restructuring and related charges to the Consolidated Statement of Operations during the fiscal year ended August 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. These restructuring activities are intended to address current market conditions and customer requirements. The restructuring and related charges for the fiscal year ended August 31, 2013 include $80.4 million related to employee severance and benefit costs, $8.3 million related to asset write off costs, $0.5 million related to lease costs and $0.3 million of other related costs.

These restructuring and related charges associated with the 2013 Restructuring Plan incurred during the fiscal year ended August 31, 2013 of $89.5 million are primarily cash costs totaling $81.2 million, of which $22.7 million was paid in fiscal year 2013. The cash costs consist of employee severance and benefit costs of $80.4 million, lease costs of $0.5 million and other related costs of $0.3 million. Non-cash costs of $8.3 million primarily represent asset write off costs 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 write off costs, are currently expected to result in cash expenditures in a range of $140.0 million to $160.0 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 fiscal year ended August 31, 2013 (in thousands):

2013 Restructuring Plan – Fiscal Year Ended August 31, 2013


	Liability Balance at September 1, 2012		Restructuring Related Charges		Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at August 31, 2013
Employee severance and benefit costs	$	—	$	80,331	$	(525	)	$	(22,183	)	$	57,623
Lease costs		—		506		—			(255	)		251
Asset write off costs		—		8,341		(8,341	)		—			—
Other related costs		—		275		—			(239	)		36

Total	$	—	$	89,453	$	(8,866	)	$	(22,677	)	$	57,910

The table below sets forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the fiscal year ended August 31, 2013 (in thousands):

2013 Restructuring Plan – Fiscal Year Ended August 31, 2013


	Liability Balance at September 1, 2012		Restructuring Related Charges		Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at August 31, 2013
DMS	$	—	$	21,502	$	(2,665	)	$	(6,548	)	$	12,289
E&I		—		54,255		(5,982	)	$	(7,670	)		40,603
HVS		—		10,647		(219	)		(5,443	)		4,985
Other		—		3,049		—			(3,016	)		33

Total	$	—	$	89,453	$	(8,866	)	$	(22,677	)	$	57,910