Restructuring and Related Charges

12 Months Ended

Aug. 31, 2016

Restructuring and Related Charges [Abstract]

15. 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 $11.4 million and $34.6 million of restructuring and related charges to the Consolidated Statement of Operations during the fiscal years ended August 31, 2016 and 2015, respectively. The 2013 Restructuring Plan is intended to better align our manufacturing capacity in certain geographies and to reduce our worldwide workforce in order to reduce operating expenses. The restructuring and related charges for the fiscal years ended August 31, 2016 and 2015 include cash costs of $8.8 million and $24.3 million related to employee severance and benefit costs, respectively, $0.0 million and $2.8 million related to lease costs, respectively, and $1.4 million and $1.9 million of other related costs, respectively, as well as non-cash costs of $1.2 million and $5.6 million related to asset write-off costs, respectively.

As of August 31, 2016, a total of $161.9 million of the $179.0 million of restructuring and related costs in the 2013 Restructuring Plan have been recognized. Of the $161.9 million recognized to date, $124.2 million was allocated to the EMS segment, $28.8 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 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 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 $17.1 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 fiscal years ended August 31, 2016 and 2015 (in thousands):

2013 Restructuring Plan – Fiscal Year Ended August 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		August 31, 2016
Employee severance and benefit costs	$	30,047	$	8,845	$	(454)	$	(21,172)	$	17,266
Lease costs		64		(43)		―		―		21
Asset write-off costs		―		1,170		(1,170)		―		―
Other related costs		846		1,397		―		(1,503)		740
Total	$	30,957	$	11,369	$	(1,624)	$	(22,675)	$	18,027


2013 Restructuring Plan – Fiscal Year Ended August 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		August 31, 2015
Employee severance and benefit costs	$	45,246	$	24,327	$	(4,122)	$	(35,404)	$	30,047
Lease costs		18		2,777		(12)		(2,719)		64
Asset write-off costs		―		5,565		(5,565)		―		―
Other related costs		257		1,890		(76)		(1,225)		846
Total	$	45,521	$	34,559	$	(9,775)	$	(39,348)	$	30,957

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, 2016 and 2015 (in thousands):

2013 Restructuring Plan – Fiscal Year Ended August 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		August 31, 2016
	EMS	$	28,834		10,693		(1,615)		(20,574)	$	17,338
	DMS		1,960		795		(9)		(2,057)		689
	Other		163		(119)		―		(44)		―
	Total	$	30,957	$	11,369	$	(1,624)	$	(22,675)	$	18,027


2013 Restructuring Plan – Fiscal Year Ended August 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		August 31, 2015
	EMS	$	35,504	$	32,007	$	(9,700)	$	(28,977)	$	28,834
	DMS		8,268		351		(153)		(6,506)		1,960
	Other		1,749		2,201		78		(3,865)		163
	Total	$	45,521	$	34,559	$	(9,775)	$	(39,348)	$	30,957