RESTRUCTURING CHARGES

Fiscal Year 2019

During fiscal year 2019, the Company took targeted actions to optimize its portfolio, most notably within CTG. The Company recognized restructuring charges of approximately $113.3 million during the fiscal year ended March 31, 2019, of which $73.2 million were non-cash charges primarily for asset impairments. A significant component of its charges were associated with the wind down of its NIKE operations in Mexico in the third quarter of fiscal year 2019 where it recognized charges of $66 million primarily for non-cash asset impairments.

In addition, the Company executed targeted head-count reductions at existing operating and design sites and corporate functions and exited certain immaterial businesses. Of these total restructuring charges, approximately $99.0 million was recognized as a component of cost of sales during the fiscal year ended March 31, 2019.

Restructuring charges are not included in segment income, as disclosed further in note 19.

Fiscal Year 2018

During fiscal year 2018, the Company initiated targeted restructuring activities focused on optimizing the Company's cost structure in lower growth areas and, more importantly, streamlining certain corporate and segment functions. Restructuring charges are recorded based upon employee termination dates, site closure and consolidation plans generally in conjunction with an overall corporate initiative to drive cost reduction and realign the Company's global footprint. The Company recognized approximately $78.6 million of cash charges predominantly related to employee severance costs and $12.1 million of non-cash charges for asset impairment and other exit charges under the above plan. Of these total charges, approximately $66.8 million was recognized in cost of sales. A majority of the fiscal year 2018 restructuring activities were completed as of March 31, 2018.

Fiscal Year 2017

During fiscal year 2017, the Company initiated a restructuring plan to accelerate its ability to support more Sketch-to-Scale^® efforts across the Company and reposition away from historical legacy programs and structures through rationalizing its current footprint at existing sites and at corporate SG&A functions. The Company recognized restructuring charges of approximately $49.4 million primarily for employee termination costs under the above plan. Of these total charges, approximately $38.8 million was recognized in cost of sales. All fiscal year 2017 restructuring activities were completed as of March 31, 2017.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of March 31, 2019 for charges incurred in fiscal years 2019, 2018 and 2017 and prior periods:



	Severance			Long-Lived Asset Impairment			Other Exit Costs			Total
	(In thousands)
Balance as of March 31, 2016	$	11,905		$	—		$	1,335		$	13,240
Provision for charges incurred in fiscal year 2017	42,253			—			7,142			49,395
Cash payments for charges incurred in fiscal year 2017	(25,894		)	—			—			(25,894		)
Cash payments for charges incurred in fiscal year 2016 and prior	(11,905		)	—			(1,335		)	(13,240		)
Balance as of March 31, 2017	16,359			—			7,142			23,501
Provision for charges incurred in fiscal year 2018	69,439			9,417			11,835			90,691
Cash payments for charges incurred in fiscal year 2017 and prior	(13,237		)	—			(3,671		)	(16,908		)
Cash payments for charges incurred in fiscal year 2018	(24,555		)	—			—			(24,555		)
Non-cash charges incurred in fiscal year 2018	—			(9,417		)	(1,968		)	(11,385		)
Balance as of March 31, 2018	48,006			—			13,338			61,344
Provision for charges incurred in fiscal year 2019	38,634			46,365			28,314			113,313
Cash payments for charges incurred in fiscal year 2018 and prior	(40,623		)	—			(4,293		)	(44,916		)
Cash payments for charges incurred in fiscal year 2019	(22,783		)	—			(1,330		)	(24,113		)
Non-cash charges incurred in fiscal year 2019	—			(46,365		)	(26,829		)	(73,194		)
Balance as of March 31, 2019	23,234			—			9,200			32,434
Less: Current portion (classified as other current liabilities)	23,234			—			9,200			32,434
Accrued restructuring costs, net of current portion (classified as other liabilities)	$	—		$	—		$	—		$	—