14. Restructuring and Related Charges

a. 2014 Restructuring Plan

In conjunction with the restructuring plan that was approved by the Company’s Board of Directors during the first quarter of fiscal year 2014 (the “2014 Restructuring Plan”), the Company charged $49.9 million of restructuring and related charges to the Consolidated Statement of Operations during the fiscal year ended August 31, 2014. The 2014 Restructuring Plan was intended to address the termination of the Company’s business relationship with BlackBerry Limited. The restructuring and related charges during the fiscal year ended August 31, 2014 include cash costs of $16.2 million related to employee severance and benefit costs, $1.7 million related to lease costs and $1.7 million of other related costs, as well as non-cash costs of $30.3 million related to asset write off costs. These restructuring and related charges associated with the 2014 Restructuring Plan were assigned fully to the HVS reportable segment. The Company has substantially completed the restructuring activities under this plan and does not expect to incur any additional costs under the 2014 Restructuring Plan.

The table below sets forth the significant components and activity in the 2014 Restructuring Plan during the fiscal year ended August 31, 2014 (in thousands):

2014 Restructuring Plan – Fiscal Year Ended August 31, 2014


	Liability Balance at August 31, 2013		Restructuring Related Charges		Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at August 31, 2014
Employee severance and benefit costs	$	—	$	16,213	$	13		$	(15,765	)	$	461
Lease costs		—		1,738		(116	)		(1,622	)		—
Asset write off costs		—		30,314		(30,314	)		—			—
Other related costs		—		1,680		—			(1,674	)		6

Total	$	—	$	49,945	$	(30,417	)	$	(19,061	)	$	467

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 $35.4 million and $80.5 million of restructuring and related charges to the Consolidated Statement of Operations during the fiscal years ended August 31, 2014 and 2013, 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 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 years ended August 31, 2014 and 2013 include cash costs of $25.0 million and $74.3 million related to employee severance and benefit costs, respectively, $0.5 million and $0.2 million related to lease costs, respectively, and $1.3 million and $0.0 million of other related costs, respectively, as well as non-cash costs of $8.6 million and $6.0 million related to asset write off costs, respectively.

The Company currently expects to recognize approximately $179.0 million, excluding the restructuring and related charges previously incurred for the AMS discontinued operations, in pre-tax restructuring and other related costs primarily over the course of the Company’s fiscal years 2013, 2014 and 2015 under the 2013 Restructuring Plan. Since the inception of the 2013 Restructuring Plan, a total of $115.9 million of restructuring and related costs have been recognized. Of the $115.9 million recognized to date, $42.9 million was allocated to the DMS segment, $54.0 million was allocated to the E&I segment, $12.2 million was allocated to the HVS segment and $6.8 million was not allocated to a segment. 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 $131.0 million to $151.0 million that are 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 tables below set forth the significant components and activity in the 2013 Restructuring Plan during the fiscal years ended August 31, 2014 and 2013 (in thousands):

2013 Restructuring Plan – Fiscal Year Ended August 31, 2014


	Liability Balance at August 31, 2013		Restructuring Related Charges		Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at August 31, 2014
Employee severance and benefit costs	$	55,188	$	25,026	$	283		$	(35,251	)	$	45,246
Lease costs		251		499		(110	)		(622	)		18
Asset write off costs		—		8,622		(8,622	)		—			—
Other related costs		—		1,277		21			(1,041	)		257

Total	$	55,439	$	35,424	$	(8,428	)	$	(36,914	)	$	45,521

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	$	—	$	74,304	$	(297	)	$	(18,819	)	$	55,188
Lease costs		—		251		—			—			251
Asset write off costs		—		5,958		(5,958	)		—			—

Total	$	—	$	80,513	$	(6,255	)	$	(18,819	)	$	55,439

The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the fiscal years ended August 31, 2014 and 2013 (in thousands):

2013 Restructuring Plan – Fiscal Year Ended August 31, 2014


	Liability Balance at August 31, 2013		Restructuring Related Charges			Asset Write off Charge and Other Non- Cash Activity			Cash Payments			Liability Balance at August 31, 2014
DMS	$	9,818	$	29,839		$	(10,920	)	$	(19,204	)	$	9,533
E&I		40,603		(188	)		2,345			(10,624	)		32,136
HVS		4,985		1,543			147			(4,572	)		2,103
Other		33		4,230			—			(2,514	)		1,749

Total	$	55,439	$	35,424		$	(8,428	)	$	(36,914	)	$	45,521

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	$	—	$	13,053	$	(54	)	$	(3,181	)	$	9,818
E&I		—		54,255		(5,982	)		(7,670	)		40,603
HVS		—		10,647		(219	)		(5,443	)		4,985
Other		—		2,558		—			(2,525	)		33

Total	$	—	$	80,513	$	(6,255	)	$	(18,819	)	$	55,439