Restructuring, Severance and Related Charges

12 Months Ended

Aug. 31, 2023

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):


	Fiscal Year Ended August 31,
	2023(1)		2022(1)		2021(2)
Employee severance and benefit costs	$	48	$	18	$	5
Lease costs	—		—		(1)
Asset write-off costs	5		—		5
Other costs	4		—		1
Total restructuring, severance and related charges(3)	$	57	$	18	$	10

(1)Primarily relates to headcount reduction to further optimize the Company’s business activities.

(2)The 2020 Restructuring Plan, totaling $86 million in restructuring and other related costs, was complete as of August 31, 2021.

(3)Includes $10 million, $1 million and $0 million recorded in the EMS segment, $35 million, $10 million and $9 million recorded in the DMS segment and $12 million, $7 million and $1 million of non-allocated charges for the fiscal years ended August 31, 2023, 2022 and 2021, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs.

2024 Restructuring Plan

On September 26, 2023, the Company’s Board of Directors approved a restructuring plan to (i) realign the Company’s cost base for stranded costs associated with the Company’s sale and realignment of its mobility business and (ii) optimize the Company’s

global footprint. This action includes headcount reductions across our Selling, General and Administrative (“SG&A”) cost base and capacity realignment (the “2024 Restructuring Plan”). The 2024 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 currently expects to recognize approximately $300 million in pre-tax restructuring and other related costs over the course of the Company’s 2024 fiscal year. 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 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.