RESTRUCTURING CHARGES

During the nine-month period ended December 31, 2018, the Company took focused actions to optimize its portfolio, most notably within CTG. The Company completed the wind down of its NIKE operations in Mexico in the third quarter of fiscal year 2019 and recognized charges of $36 million and $66 million for the three and nine-month periods ended December 31, 2018 primarily for non-cash asset impairments. The remaining carrying value of the assets impaired at December 31, 2018, was immaterial and was determined using Level 2 inputs in the fair value hierarchy, such as quoted prices from vendors for similar assets.

In total, the Company recognized restructuring charges of approximately $65.8 million and $100.4 million during the three and nine-month periods ended December 31, 2018, respectively. In addition to the charges related to its NIKE operations in Mexico, the Company executed targeted head-count reductions at existing operating and design sites and corporate functions and exited certain immaterial businesses. Of these total charges, approximately $60.4 million and $89.5 million was recognized as a component of cost of sales during the three and nine-month periods ended December 31, 2018, respectively. The Company continues to evaluate its existing footprint and cost structure and may determine that further reductions are required, and if executed, additional restructuring charges could have a material impact on the financial statements.

There were no material restructuring activities during the three and nine-month periods ended December 31, 2017.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of December 31, 2018 for charges incurred in the nine-month period ended December 31, 2018:



	Severance			Long-Lived Asset Impairment			Other Exit Costs			Total
	(In thousands)
Balance as of March 31, 2018	$	48,006		$	—		$	13,338		$	61,344
Provision for charges incurred during the nine-month period ended December 31, 2018	25,407			46,365			28,661			100,433
Cash payments for charges incurred in the fiscal year 2018 and prior	(37,930		)	—			(3,355		)	(41,285		)
Cash payments for charges incurred during the nine-month period ended December 31, 2018	(12,921		)	—			—			(12,921		)
Non-cash charges incurred during the nine-month period ended December 31, 2018	—			(46,365		)	(26,282		)	(72,647		)
Balance as of December 31, 2018	22,562			—			12,362			34,924
Less: Current portion (classified as other current liabilities)	22,562			—			12,362			34,924
Accrued restructuring costs, net of current portion (classified as other liabilities)	$	—		$	—		$	—		$	—