Restructuring, Severance and Related Charges

9 Months Ended

May 31, 2021

Restructuring and Related Activities [Abstract]

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, 2021		May 31, 2020		May 31, 2021		May 31, 2020
Employee severance and benefit costs	$	483	$	56,891	$	3,191	$	83,684
Lease costs	—		402		(2,873)		6,870
Asset write-off costs	8		6,253		4,598		31,678
Other costs	253		5,604		739		21,773
Total restructuring, severance and related charges(1)	$	744	$	69,150	$	5,655	$	144,005

(1)Primarily relates to the 2020 Restructuring Plan, and includes $0.0 million and $23.7 million recorded in the EMS segment, $0.6 million and $29.3 million recorded in the DMS segment and $0.1 million and $16.2 million of non-allocated charges for the three months ended May 31, 2021 and 2020, respectively. Includes $(0.4) million and $55.8 million recorded in the EMS segment, $5.5 million and $69.0 million recorded in the DMS segment and $0.6 million and $19.2 million of non-allocated charges for the nine months ended May 31, 2021 and 2020, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs.

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, totaling $85.0 million in restructuring and other related costs, is substantially complete as of May 31, 2021.

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, 2020	$	8,143	$	2,316	$	—	$	426	$	10,885
Restructuring related charges	2,722		(2,873)		4,352		733		4,934
Asset write-off charge and other non-cash activity	12		1,554		(4,352)		(142)		(2,928)
Cash payments	(7,102)		(170)		—		(763)		(8,035)
Balance as of May 31, 2021	$	3,775	$	827	$	—	$	254	$	4,856

The Company’s liability associated with the worldwide workforce reduction initiated in the third quarter of fiscal year 2020 is $14.0 million as of May 31, 2021.