Restructuring and Related Charges

9 Months Ended

May 31, 2016

Restructuring and Related Charges [Abstract]

13. Restructuring and Related Charges

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 $4.5 million and $8.3 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and nine months ended May 31, 2016, respectively, compared to $(0.8) million and $33.3 million during the three months and nine months ended May 31, 2015, 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 during the three months and nine months ended May 31, 2016 include cash costs of $4.2 million and $7.7 million related to employee severance and benefit costs, respectively, and $0.3 million and $0.6 million of other related costs, respectively. The restructuring and related charges during the three months and nine months ended May 31, 2015 include cash costs of $(1.9) million and $23.3 million related to employee severance and benefit costs, respectively, $0 and $2.8 million related to lease costs, respectively, and $0.4 million and $1.5 million of other related costs, respectively, as well as non-cash costs of $0.7 million and $5.7 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 over the course of the Company’s fiscal years 2013 through 2017 under the 2013 Restructuring Plan. Since the inception of the 2013 Restructuring Plan, a total of $158.9 million of restructuring and related costs have been recognized. Of the $158.9 million recognized to date, $121.0 million was allocated to the EMS segment, $29.0 million was allocated to the DMS segment and $8.9 million was not allocated to a segment. A majority of the total restructuring costs are 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 of approximately $157.4 million that have been or will be payable over the course of the Company’s fiscal years 2013 through 2017. The remaining $20.1 million of the restructuring and related costs expected to be recognized 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 three months and nine months ended May 31, 2016 and 2015 (in thousands):

2013 Restructuring Plan – Three Months Ended May 31, 2016

			Restructuring		Asset Write-off
	Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
	February 29, 2016		Charges		Non-Cash Activity		Payments		May 31, 2016
Employee severance and benefit costs	$	18,115	$	4,197	$	407	$	(3,234)	$	19,485
Lease costs		64		(43)		―		―		21
Other related costs		871		306		22		(310)		889
Total	$	19,050	$	4,460	$	429	$	(3,544)	$	20,395

2013 Restructuring Plan – Nine Months Ended May 31, 2016

			Restructuring		Asset Write-off
	Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
	August 31, 2015		Charges		Non-Cash Activity		Payments		May 31, 2016
Employee severance and benefit costs	$	30,047	$	7,743	$	(404)	$	(17,901)	$	19,485
Lease costs		64		(43)		―		―		21
Other related costs		846		649		―		(606)		889
Total	$	30,957	$	8,349	$	(404)	$	(18,507)	$	20,395


2013 Restructuring Plan – Three Months Ended May 31, 2015

			Restructuring		Asset Write-off
	Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
	February 28, 2015		Charges		Non-Cash Activity		Payments		May 31, 2015
Employee severance and benefit costs	$	36,156	$	(1,847)	$	(803)	$	(2,586)	$	30,920
Lease costs		2,403		―		―		(53)		2,350
Asset write-off costs		―		701		(701)		―		―
Other related costs		906		364		(30)		(480)		760
Total	$	39,465	$	(782)	$	(1,534)	$	(3,119)	$	34,030


2013 Restructuring Plan – Nine Months Ended May 31, 2015

			Restructuring		Asset Write-off
	Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
	August 31, 2014		Charges		Non-Cash Activity		Payments		May 31, 2015
Employee severance and benefit costs	$	45,246	$	23,355	$	(4,714)	$	(32,967)	$	30,920
Lease costs		18		2,777		(26)		(419)		2,350
Asset write-off costs		―		5,688		(5,688)		―		―
Other related costs		257		1,507		(93)		(911)		760
Total	$	45,521	$	33,327	$	(10,521)	$	(34,297)	$	34,030

The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and nine months ended May 31, 2016 and 2015 (in thousands):

2013 Restructuring Plan – Three Months Ended May 31, 2016

				Restructuring		Asset Write-off
		Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
		February 29, 2016		Charges		Non-Cash Activity		Payments		May 31, 2016
	EMS	$	17,115	$	4,460	$	429	$	(2,858)	$	19,146
	DMS		1,935		―		―		(686)		1,249
	Total	$	19,050	$	4,460	$	429	$	(3,544)	$	20,395

2013 Restructuring Plan – Nine Months Ended May 31, 2016

				Restructuring		Asset Write-off
		Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
		August 31, 2015		Charges		Non-Cash Activity		Payments		May 31, 2016
	EMS	$	28,834		7,454		(395)		(16,747)	$	19,146
	DMS		1,960		1,014		(9)		(1,716)		1,249
	Other		163		(119)		―		(44)		―
	Total	$	30,957	$	8,349	$	(404)	$	(18,507)	$	20,395


2013 Restructuring Plan – Three Months Ended May 31, 2015

				Restructuring		Asset Write-off
		Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
		February 28, 2015		Charges		Non-Cash Activity		Payments		May 31, 2015
	EMS	$	35,358	$	(1,107)	$	(1,534)	$	(1,897)	$	30,820
	DMS		3,701		―		―		(910)		2,791
	Other		406		325		―		(312)		419
	Total	$	39,465	$	(782)	$	(1,534)	$	(3,119)	$	34,030


2013 Restructuring Plan – Nine Months Ended May 31, 2015

				Restructuring		Asset Write-off
		Liability Balance at		Related		Charge and Other		Cash		Liability Balance at
		August 31, 2014		Charges		Non-Cash Activity		Payments		May 31, 2015
	EMS	$	35,504	$	30,743	$	(10,375)	$	(25,052)	$	30,820
	DMS		8,268		424		(146)		(5,755)		2,791
	Other		1,749		2,160		―		(3,490)		419
	Total	$	45,521	$	33,327	$	(10,521)	$	(34,297)	$	34,030