Restructuring, Severance and Related Charges

3 Months Ended

Nov. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring, Severance and Related Charges

Following is a summary of the Company’s restructuring, severance and related charges (in millions):


	Three months ended
		November 30, 2022(1)		November 30, 2021
Employee severance and benefit costs		$	40	$	1
Lease costs		—		(1)
Asset write-off costs		1		—
Other costs		4		—
Total restructuring, severance and related charges(2)		$	45	$	—

(1)Primarily relates to headcount reduction to further optimize the Company’s business activities and includes $4 million recorded in the EMS segment, $33 million recorded in the DMS segment and $8 million of non-allocated charges for the three months ended November 30, 2022. Except for asset write-off costs, all restructuring, severance and related charges are cash costs.

(2)The restructuring liability is $54 million as of November 30, 2022, which primarily relates to employee severance and benefit costs incurred in fiscal year 2022 and the three months ended November 30, 2022. We expect the majority of the severance to be paid during fiscal year 2023.