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Restructuring, Severance and Related Charges
 9 Months Ended
May 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring, Severance and Related Charges Restructuring, Severance and Related Charges
Following is a summary of the Company’s restructuring, severance and related charges (in thousands):
 
Three months ended
 
Nine months ended
 
May 31, 2020(2)
 
May 31, 2019(3)
 
May 31, 2020(2)
 
May 31, 2019(3)
Employee severance and benefit costs
$
56,891

 
$
6,513

 
$
83,684

 
$
15,460

Lease costs
402

 
(50
)
 
6,870

 
(41
)
Asset write-off costs
6,253

 
(343
)
 
31,678

 
(3,555
)
Other costs
5,604

 
3,220

 
21,773

 
4,318

Total restructuring, severance and related charges(1)
$
69,150

 
$
9,340

 
$
144,005

 
$
16,182

 
(1) 
Includes $23.7 million and $7.6 million recorded in the EMS segment, $29.3 million and $0.0 million recorded in the DMS segment and $16.2 million and $1.7 million of non-allocated charges for the three months ended May 31, 2020 and 2019, respectively. Includes $55.8 million and $12.3 million recorded in the EMS segment, $69.0 million and $2.1 million recorded in the DMS segment and $19.2 million and $1.8 million of non-allocated charges for the nine months
ended May 31, 2020 and 2019, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs.
(2) 
As the Company continues to optimize its cost structure and improve operational efficiencies, $52.3 million of employee severance and benefit costs was incurred in connection with a reduction in the worldwide workforce during the three and nine months ended May 31, 2020. The Company’s liability associated with the worldwide workforce reduction is $50.9 million as of May 31, 2020. The remaining amount primarily relates to the 2020 Restructuring Plan.
(3) 
Primarily relates to the 2017 Restructuring Plan.
2020 Restructuring Plan
On September 20, 2019, the Company’s Board of Directors formally approved a restructuring plan to realign the Company’s global capacity support infrastructure, particularly in the Company’s mobility footprint in China, in order to optimize organizational effectiveness. This action includes headcount reductions and capacity realignment (the “2020 Restructuring Plan”). The 2020 Restructuring Plan reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain locations are still subject to consultation with the Company’s employees and their representatives.
The Company expects to recognize approximately $85.0 million in pre-tax restructuring and other related costs over the course of the Company’s fiscal year 2020. This information will be subject to the finalization of timetables for the transition of functions, consultation with employees and their representatives as well as the statutory severance requirements of the particular jurisdictions impacted, and the amount and timing of the actual charges may vary due to a variety of factors. The Company’s estimates for the charges discussed above exclude any potential income tax effects.
The table below summarizes the Company’s liability activity, primarily associated with the 2020 Restructuring Plan
(in thousands):
 
Employee Severance
and Benefit Costs
 
Lease Costs
 
Asset Write-off Costs
 
Other Related Costs
 
Total
Balance as of August 31, 2019(1)
$
3,162

 
$
1,980

 
$
—

 
$
789

 
$
5,931

Restructuring related charges
31,421

 
6,870

 
31,678

 
312

 
70,281

Asset write-off charge and other non-cash activity
(140
)
 
(5,639
)
 
(31,678
)
 
5

 
(37,452
)
Cash payments
(24,086
)
 
(739
)
 
—

 
(650
)
 
(25,475
)
Balance as of May 31, 2020
$
10,357

 
$
2,472

 
$
—

 
$
456

 
$
13,285


 
(1) 
Balance as of August 31, 2019 primarily relates to the 2017 Restructuring Plan.