(Mark One) | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended August 31, 2010 | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware | 38-1886260 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of | Name of | |
Common Stock, $0.001 par value per share | New York Stock Exchange | |
Series A Preferred Stock Purchase Rights | New York Stock Exchange |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo |
• | business conditions and growth or declines in our customers’ industries, the electronic manufacturing services industry and the general economy; | ||
• | variability of our operating results; | ||
• | our dependence on a limited number of major customers; | ||
• | the potential consolidation of our customer base, and the potential movement by some of our customers of a portion of their manufacturing from us in order to more fully utilize their excess internal manufacturing capacity; | ||
• | availability of components; | ||
• | our dependence on certain industries; | ||
• | our production levels are subject to the variability of customer requirements, including seasonal influences on the demand for certain end products; | ||
• | our substantial international operations, and the resulting risks related to our operating internationally; | ||
• | our ability to successfully negotiate definitive agreements and consummate acquisitions, and to integrate operations following the consummation of acquisitions; | ||
• | our ability to take advantage of our past, current and possible future restructuring efforts to improve utilization and realize savings and whether any such activity will adversely affect our cost structure, our ability to service customers and our labor relations; | ||
• | our ability to maintain our engineering, technological and manufacturing process expertise; | ||
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other economic, business and competitive factors affecting our customers, our industry and our business generally; and | |||
• | other factors that we may not have currently identified or quantified. |
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Item 1. | Business |
• | integrated design and engineering; | ||
• | component selection, sourcing and procurement; | ||
• | automated assembly; | ||
• | design and implementation of product testing; | ||
• | parallel global production; | ||
• | enclosure services; | ||
• | systems assembly, direct order fulfillment and configure to order; and | ||
• | aftermarket services. |
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• | Reduced Product Cost.Manufacturing service providers are often able to manufacture products at a reduced total cost to companies. These cost advantages result from higher utilization of capacity because of diversified product demand and, typically, a higher sensitivity to elements of cost. | ||
• | Accelerated ProductTime-to-Market andTime-to-Volume.Manufacturing service providers are often able to deliver accelerated productionstart-ups and achieve high efficiencies in transferring new products into production. Providers are also able to more rapidly scale production for changing markets and to |
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position themselves in global locations that serve the leading world markets. With increasingly shorter product life cycles, these key services allow new products to be sold in the marketplace in an accelerated time frame. |
• | Access to Advanced Design and Manufacturing Technologies.Customers gain access to additional advanced technologies in manufacturing processes, as well as product and production design. Product and production design services may offer customers significant improvements in the performance, cost,time-to-market and manufacturability of their products. | ||
• | Improved Inventory Management and Purchasing Power.Manufacturing service providers are often able to more efficiently manage both procurement and inventory, and have demonstrated proficiency in purchasing components at improved pricing due to the scale of their operations and continuous interaction with the materials marketplace. | ||
• | Reduced Capital Investment in Manufacturing.Companies are increasingly seeking to lower their investment in inventory, facilities and equipment used in manufacturing in order to allocate capital to other activities such as sales and marketing and research and development (“R&D”). This shift in capital deployment has placed a greater emphasis on outsourcing to external manufacturing specialists. |
• | Establish and Maintain Long-Term Customer Relationships.Our core strategy is to establish and maintain long-term relationships with leading companies in expanding industries with size and growth characteristics that can benefit from highly automated, continuous flow manufacturing on a global scale. Over the past several years, we have made concentrated efforts to diversify our industry sectors and customer base. As a result of these efforts, we have experienced business growth from existing customers and from new customers. Additionally, our acquisitions have contributed to our business growth. We focus on maintaining long-term relationships with our customers and seek to expand these relationships to include additional product lines and services. In addition, we have a focused effort to identify and develop relationships with new customers who meet our profile. |
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• | Utilize Business Units.Each of our business units is dedicated to one customer and operates with a high level of autonomy, primarily utilizing dedicated production equipment, production workers, supervisors, buyers, planners, and engineers. We believe our customer centric business units promote increased responsiveness to our customers’ needs, particularly as a customer relationship grows to multiple production locations. |
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• | Expand Parallel Global Production.Our ability to produce the same product on a global scale is a significant requirement of our customers. We believe that parallel global production is a key strategy to reduce obsolescence risk and secure the lowest landed costs while simultaneously supplying products of equivalent or comparable quality throughout the world. Consistent with this strategy, we have established or acquired operations in Austria, Belgium, Brazil, China, England, | ||
• | Offer Systems Assembly, Direct-Order Fulfillment andConfigure-to-Order Services.Our systems assembly, direct-order fulfillment andconfigure-to-order services allow our customers to reduce product cost and risk of product obsolescence by reducing totalwork-in-process and finished goods inventory. These services are available at all of our manufacturing locations. | ||
• | Offer Design and Aftermarket Services.We offer a wide spectrum of value-add design services for products that we manufacture for our customers. We provide these services to enhance our relationships with current customers by allowing them the flexibility to utilize complementary design services to achieve |
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improvements in performance, cost,time-to-market and manufacturability, as well as to help develop relationships with new customers. We also offer aftermarket services from strategic hub locations. Our aftermarket service centers allow us to provide service to our customers’ products following completion of the traditional manufacturing and fulfillment process. |
• | Pursue Selective Acquisition Opportunities.While some of our customers have recently moved a portion of their manufacturing from us in order to more fully utilize their excess internal manufacturing capacity, we believe that the longer-term, stronger trend has been for companies to divest internal manufacturing operations to manufacturing providers such as Jabil. In many of these situations, companies enter into a customer relationship with the manufacturing provider that acquires the operations. More recently, our acquisition strategy has expanded beyond focusing on acquisition opportunities presented by companies divesting internal manufacturing operations, but also pursuing manufacturing, aftermarket servicesand/or design operations and other acquisition opportunities complementary to our services offerings. The primary goal of our acquisition strategy is to complement our geographic footprint and diversify our business into new industry sectors and with new customers, and to expand the scope of the services we can offer to our customers. As the scope of our acquisition opportunities expands, the risks associated with our acquisitions expand as well, both in terms of the amount of risk we face and the scope of such risks. See “Risk Factors — We have on occasion not achieved, and may not in the future achieve, expected profitability from our acquisitions.” |
• | Business Units.Each of our business units is dedicated to one customer and is empowered to formulate strategies tailored to individual customer needs. | ||
• | Business Unit Management.Our Business Unit Managers coordinate all financial, manufacturing and engineering commitments for each of our customers at a particular manufacturing facility. Our Business Unit Directors oversee local Business Unit Managers and coordinate worldwide financial, manufacturing and engineering commitments for each of our customers that have global production requirements. Jabil’s Business Unit Management has the authority (within high-level parameters set by executive management) to develop customer relationships, make design strategy decisions and production commitments, establish pricing, and implement production and electronic design changes. Business Unit Managers and Directors are also responsible for assisting customers with strategic planning for future products, including developing cost and technology goals. These Managers and Directors operate autonomously with responsibility for the development of customer relationships and direct profit and loss accountability for business unit performance. | ||
• | Automated Continuous Flow.We use a highly automated, continuous flow approach where different pieces of equipment are joined directly or by conveyor to create an in-line assembly process. This process is in contrast to a batch approach, where individual pieces of assembly equipment are operated as freestanding work-centers. The elimination of waiting time prior to sequential operations results in faster manufacturing, which improves production efficiencies and quality control, and reduces inventorywork-in-process. Continuous flow manufacturing provides cost reductions and quality improvement when applied to volume manufacturing. | ||
• | Computer Integration.We support all aspects of our manufacturing activities with advanced computerized control and monitoring systems. Component inspection and vendor quality are monitored electronically in real-time. Materials |
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planning, purchasing, stockroom and shop floor control systems are supported through a computerized Manufacturing Resource Planning system, providing customers with a continuous |
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ability to monitor material availability and trackwork-in-process on a real-time basis. Manufacturing processes are supported by a real-time, computerized statistical process control system, whereby customers can remotely access our computer systems to monitor real-time yields, inventory positions,work-in-process status and vendor quality data. See “Technology” and “Risk Factors |
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• | Supply Chain Management.We make available an electronic commerce system/electronic data interchange and web-based tools for our customers and suppliers to implement a variety of supply chain management programs. Most of our customers utilize these tools to share demand and product forecasts and deliver purchase orders. We use these tools with most of our suppliers forjust-in-time delivery, supplier-managed inventory and consigned supplier-managed inventory. |
• | Electronic Design.Our electronic design team provides electronic circuit design services, including application-specific integrated circuit design and firmware development. These services have been used to develop a variety of circuit designs for cellular telephone accessories, notebook and personal computers, servers, radio frequency products, video set-top boxes, optical communications products, personal digital assistants, communication broadband products and automotive and consumer appliance controls. | ||
• | Industrial Design Services.Our industrial design team assists in designing the “look and feel” of the plastic and metal enclosures that house printed circuit board assemblies (“PCBA”) and systems. | ||
• | Mechanical Design.Our mechanical engineering design team specializes in three-dimensional design and analysis of electronic and optical assemblies using state of the art modeling and analytical tools. The mechanical team has extended Jabil’s product offering capabilities to include all aspects of industrial design, advance mechanism development and tooling management. | ||
• | Computer-Assisted Design.Our computer-assisted design (“CAD”) team provides PCBA design services using advanced CAD/computer-assisted engineering tools, PCBA design testing and verification services, and other consulting services, which include the generation of a bill of materials, approved vendor list and assembly equipment configuration for a particular PCBA design. We believe that our CAD services result in PCBA designs that are optimized for manufacturability and cost, and accelerate thetime-to-market andtime-to-volume production. | ||
• | Product Validation.Our product validation team provides complete product and process validation. This includes system test, product safety, regulatory compliance and reliability. | ||
• | Product Solutions.Our product solutions efforts are focused on providing system-based solutions to engineering problems and challenges on the design of new technologies and concepts in specific growth areas as a means of expanding our customer relationships. |
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Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Cisco Systems, Inc. | 13 | % | 16 | % | 15 | % | 15 | % | 13 | % | 16 | % | ||||||||||||
Research in Motion Limited | 12 | % | * | * | 15 | % | 12 | % | * | |||||||||||||||
Nokia Corporation | * | * | 13 | % | ||||||||||||||||||||
Hewlett-Packard Company | * | 11 | % | * | * | * | 11 | % |
* | less than 10% of net revenue |
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Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
EMS | ||||||||||||||||||||||||
Automotive | 3 | % | 4 | % | 5 | % | ||||||||||||||||||
Computing and storage | 11 | % | 13 | % | 11 | % | 10 | % | 11 | % | 13 | % | ||||||||||||
Instrumentation and medical | 19 | % | 18 | % | 19 | % | 23 | % | 19 | % | 18 | % | ||||||||||||
Networking | 17 | % | 21 | % | 20 | % | 17 | % | 17 | % | 21 | % | ||||||||||||
Telecommunications | 6 | % | 6 | % | 5 | % | 5 | % | 6 | % | 6 | % | ||||||||||||
Other | 2 | % | 2 | % | 2 | % | 4 | % | 5 | % | 6 | % | ||||||||||||
Total EMS | 58 | % | 64 | % | 62 | % | 59 | % | 58 | % | 64 | % | ||||||||||||
Consumer | ||||||||||||||||||||||||
Display | 4 | % | 7 | % | 8 | % | ||||||||||||||||||
Digital home office | 20 | % | 16 | % | 19 | % | ||||||||||||||||||
Mobility | 20 | % | 12 | % | 16 | % | 15 | % | 20 | % | 12 | % | ||||||||||||
Peripherals | 12 | % | 12 | % | 10 | % | ||||||||||||||||||
Total Consumer | 36 | % | 31 | % | 34 | % | 35 | % | 36 | % | 31 | % | ||||||||||||
Total AMS | 6 | % | 5 | % | 4 | % | 6 | % | 6 | % | 5 | % | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
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Item 1A. Risk Factors |
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• | adverse changes in current macro-economic conditions, both in the U.S. and internationally; | ||
• | the level and timing of customer orders; | ||
• | the level of capacity utilization of our manufacturing facilities and associated fixed costs; | ||
• | the composition of the costs of revenue between materials, labor and manufacturing overhead; | ||
• | price competition; | ||
• | changes in demand for our products or services; | ||
• | changes in demand in our customers’ end markets; | ||
• | our exposure to financially troubled customers; | ||
• | our level of experience in manufacturing a particular product; |
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• | the degree of automation used in our assembly process; | ||
• | the efficiencies achieved in managing inventories and fixed assets; | ||
• | fluctuations in materials costs and availability of materials; | ||
• | adverse changes in political conditions, both in the U.S. and internationally, including among other things, adverse changes in tax laws and rates (and the governments’ interpretations thereof), adverse changes in trade policies and adverse changes in fiscal and monetary policies; | ||
• | seasonality in customers’ product requirements; and | ||
• | the timing of expenditures in anticipation of increased sales, customer product delivery requirements and shortages of components or labor. |
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• | recessionary periods in our customers’ markets; | ||
• | the inability of our customers to adapt to rapidly changing technology and evolving industry standards, which | ||
• | the inability of our customers to develop and market their products, some of which are new and untested; | ||
• | the potential that our customers’ products | ||
• | the failure of our customers’ products to gain widespread commercial acceptance; | ||
• | increased competition among our customers and their respective competitors which may result in a loss of business, or a reduction in pricing power, for our customers; and | ||
• | new product offerings by our customers’ competitors may prove to be more successful than our customers’ product offerings. |
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• | variation in demand for our customers’ products; | ||
• | our customers’ attempts to manage their inventory; | ||
• | electronic design changes; | ||
• | changes in our customers’ manufacturing strategy; and | ||
• | acquisitions of or consolidations among customers. |
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• | respond more quickly to new or emerging technologies; | ||
• | have greater name recognition, critical mass and geographic market presence; | ||
• | be better able to take advantage of acquisition opportunities; | ||
• | adapt more quickly to changes in customer requirements; | ||
• | devote greater resources to the development, promotion and sale of their services; |
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• | be better positioned to compete on price for their services, as a result of any combination of lower labor costs, lower components costs, lower facilities costs or lower operating costs; and | ||
• | have excess capacity, and be better able to utilize such excess capacity which may reduce the cost of their product or service. |
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• | difficulties in staffing and managing foreign operations; | ||
• | less flexible employee relationships which can be difficult and expensive to terminate; | ||
• | labor | ||
• | political and economic instability (including acts of terrorism, widespread criminal activities and outbreaks of war); | ||
• | inadequate infrastructure for our operations (i.e. lack of adequate power, water, transportation and raw materials); | ||
• | health concerns | ||
• | coordinating our communications and logistics across geographic distances and multiple time zones; | ||
• | risk of governmental expropriation of our property; | ||
• | less favorable, or relatively undefined, intellectual property laws; | ||
• | unexpected changes in regulatory requirements and laws or government or judicial interpretations of such regulatory requirements and laws; | ||
• | longer customer payment cycles and difficulty collecting trade accounts receivable; | ||
• | domestic and foreign export control laws, including the International Traffic in Arms Regulations and the Export Administration Regulations (“EAR”), regulation by the United States Department of Commerce’s |
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Bureau of Industry and Security under the EAR, as well as additional export duties, import controls and trade barriers (including quotas); |
• | adverse trade policies, and adverse changes to any of the policies of either the U.S. or any of the foreign jurisdictions in which we operate; | ||
• | adverse changes in tax rates; | ||
• | adverse changes to the manner in which the U.S. taxesU.S.-based multinational | ||
• | legal or political constraints on our ability to maintain or increase prices; | ||
• | governmental restrictions on the transfer of funds to us from our operations outside the U.S.; | ||
• | burdens of complying with a wide variety of labor practices and foreign laws, including those relating to export and import duties, environmental policies and privacy issues; | ||
• | fluctuations in currency exchange rates, which could affect local payroll | ||
• | inability to utilize net operating losses incurred by our foreign operations against future income in the same jurisdiction; and | ||
• | economies that are emerging or developing , that may be subject to greater currency volatility, negative growth, high inflation, limited availability of foreign exchange and other risks. |
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• | Financial risks, such as (1) the payment of a purchase price that exceeds the future value that we may realize from the acquired operations and businesses; (2) an increase in our expenses and working capital requirements, which could reduce our return on invested capital; (3) potential known and unknown liabilities of the acquired businesses; (4) costs associated with integrating acquired operations and businesses; (5) the dilutive effect of the issuance of any additional equity | ||
• | Operating risks, such as (1) the diversion of management’s attention to the assimilation of the |
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• |
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• | hire, retain and expand our qualified engineering and technical personnel; | ||
• | maintain technological leadership; | ||
• | develop and market manufacturing services that meet changing customer needs; and | ||
• | successfully anticipate or respond to technological changes in manufacturing processes on a cost-effective and timely basis. |
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• | make it difficult for us to obtain any necessary financing in the future for other acquisitions, working capital, capital expenditures, debt service requirements or other purposes; | ||
• | limit our flexibility in planning for, or reacting to changes in, our business; |
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• | make us more vulnerable in the event of a downturn in our business; and | ||
• | impact certain financial covenants that we are subject to in connection with our debt and securitization programs, including, among others, the maximum ratio of debt to consolidated EBITDA (as defined in our debt agreements and securitization programs). |
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• | a “poison pill” shareholder rights plan; | ||
• | a | ||
• | a statutory restriction on business combinations with some types of interested shareholders. |
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Item 1B. | Unresolved Staff Comments |
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Item 2. | Properties |
Approximate | Type of Interest | |||||||||
Location | Square Footage | (Leased/Owned) | Description of Use | |||||||
Auburn Hills, Michigan | 207,000 | Owned | Manufacturing | |||||||
Auburn Hills, Michigan | 19,000 | Leased | Support | |||||||
Belo Horizonte, Brazil | 298,000 | Leased | Manufacturing | |||||||
Billerica, | 503,000 | Leased | ||||||||
Chihuahua, Mexico | 1,025,000 | Owned | Manufacturing, Aftermarket | |||||||
Chihuahua, Mexico | 168,000 | Leased | Manufacturing | |||||||
Colorado Springs, Colorado | Leased | Design | ||||||||
Guadalajara, Mexico | 363,000 | Owned | Manufacturing | |||||||
Guadalajara, Mexico | Leased | Manufacturing | ||||||||
Louisville, Kentucky | 140,000 | Leased | Aftermarket | |||||||
McAllen, Texas | 211,000 | Leased | Aftermarket | |||||||
Manaus, Brazil | Leased | Manufacturing | ||||||||
Memphis, Tennessee | Leased | Manufacturing, Aftermarket | ||||||||
Nogales, Mexico | 100,000 | Leased | Manufacturing, Aftermarket | |||||||
Poughkeepsie, New York | 40,000 | Leased | Manufacturing | |||||||
Reynosa, Mexico | Owned | Aftermarket | ||||||||
Reynosa, | Leased | Manufacturing, Aftermarket | ||||||||
Round Rock, Texas | Leased | Aftermarket | ||||||||
San Jose, | 181,000 | Leased | Prototype Manufacturing | |||||||
Sorocaba, Brazil | 60,000 | Leased | Manufacturing | |||||||
St. Petersburg, Florida | Leased | Manufacturing, | ||||||||
St. Petersburg, Florida | Owned | Manufacturing, Design, Aftermarket, Support | ||||||||
Tempe, Arizona | 191,000 | Owned | Manufacturing | |||||||
Tempe, Arizona | 4,000 | Leased | Training, Storage | |||||||
Total Americas | 6,448,000 | |||||||||
Alexandra, Singapore | 17,000 | Leased | Manufacturing | |||||||
Beijing, China | 9,000 | Leased | Design | |||||||
Chennai, | 284,000 | Owned | Manufacturing | |||||||
Gotemba, Japan | 138,000 | Leased | Manufacturing | |||||||
Hachiouji, Japan | 24,000 | Leased | Manufacturing |
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Approximate | Type of Interest | |||||||||
Location | Square Footage | (Leased/Owned) | Description of Use | |||||||
Ho Chi Minh City, Vietnam | 105,000 | Leased | Manufacturing | |||||||
Huangpu, China | 2,613,000 | Owned | Manufacturing | |||||||
Huangpu, China | Leased | Manufacturing | ||||||||
Hsinchu, Taiwan | Leased | Design | ||||||||
Mumbai, India | Leased | Support | ||||||||
Nanjing, China | 135,000 | Leased | Manufacturing | |||||||
Penang, Malaysia | Owned | Manufacturing, Aftermarket | ||||||||
Penang, Malaysia | 219,000 | Leased | Manufacturing | |||||||
Pune, India | Leased | Manufacturing | ||||||||
Ranjangaon, India | Owned | Manufacturing | ||||||||
Shanghai, China | Owned | Manufacturing, Design, Aftermarket | ||||||||
Shenzhen, China |
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Leased | Manufacturing | |||||||||
Suzhou, China | Leased | Manufacturing, Aftermarket | ||||||||
Taichung, Taiwan | Owned | Manufacturing, Design | ||||||||
Taichung, Taiwan | Leased | Manufacturing, Design | ||||||||
Taipei, Taiwan | 9,000 | Leased | Design | |||||||
Manufacturing | ||||||||||
Tianjin, China | Leased | Manufacturing | ||||||||
Tianjin, China | 158,000 | Owned | Manufacturing | |||||||
Toa Payoh, Singapore | 87,000 | Leased | Manufacturing | |||||||
Tokyo, Japan | 4,000 | Leased | Design, Support | |||||||
Wuxi, China | Owned | Manufacturing | ||||||||
Wuxi, China | Leased | Manufacturing | ||||||||
Leased | Manufacturing | |||||||||
Total Asia | 12,333,000 | |||||||||
Amsterdam, The Netherlands | Leased | Aftermarket | ||||||||
Ankara, Turkey | 1,000 | Leased | Support | |||||||
Ayr, Scotland | 13,000 | Leased | Manufacturing | |||||||
Bydgoszcz, Poland | Leased | Aftermarket | ||||||||
Coventry, England | 46,000 | Leased | Aftermarket | |||||||
Dublin, Ireland | 4,000 | Leased | Support | |||||||
Eindhoven, The Netherlands | 3,000 | Leased | Support | |||||||
Hasselt, Belgium | Leased | Prototype Manufacturing, Design | ||||||||
Jena, Germany | Leased | Design | ||||||||
Kwidzyn, Poland | Owned | Manufacturing | ||||||||
Livingston, Scotland | 130,000 | Owned | Manufacturing, | |||||||
Szombathely, Hungary | 198,000 | Owned | Aftermarket | |||||||
Szombathely, Hungary | 58,000 | Leased | Aftermarket | |||||||
Tiszaujvaros, Hungary | 409,000 | Owned | Manufacturing | |||||||
Tiszaujvaros, Hungary | 113,000 | Leased | Manufacturing | |||||||
Tver, Russia | Leased | Manufacturing | ||||||||
Uzhgorod, Ukraine | Owned | Manufacturing | ||||||||
Vienna, Austria | Leased | Prototype Manufacturing, Design | ||||||||
Total Europe | 2,460,000 | |||||||||
Total Facilities at August 31, | 21,241,000 | |||||||||
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(1) | A portion of this facility is no longer used in our business operations. | |
(2) | This facility is no longer used in our business operations. | |
• | Aerospace Standard AS/EN 9100 |
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• | Automotive Standard TS16949 | ||
• | FDA Medical Certification | ||
• | Medical Standard ISO-13485 | ||
• | Occupational Health & Safety Management System Standard OHSAS 18001 | ||
• | Telecommunications Standard TL 9000 | ||
• | ESD/ANSI 20:20 Standard |
Item 3. | Legal Proceedings |
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Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
High | Low | |||||||
Fiscal Year Ended August 31, 2009 | ||||||||
First Quarter (September 1, 2008 – November 30, 2008) | $ | 17.33 | $ | 4.77 | ||||
Second Quarter (December 1, 2008 – February 28, 2009) | $ | 7.66 | $ | 4.14 | ||||
Third Quarter (March 1, 2009 – May 31, 2009) | $ | 9.14 | $ | 3.10 | ||||
Fourth Quarter (June 1, 2009 – August 31, 2009) | $ | 11.24 | $ | 6.59 | ||||
Fiscal Year Ended August 31, 2008 | ||||||||
First Quarter (September 1, 2007 – November 30, 2007) | $ | 25.80 | $ | 16.62 | ||||
Second Quarter (December 1, 2007 – February 29, 2008) | $ | 18.52 | $ | 12.50 | ||||
Third Quarter (March 1, 2008 – May 31, 2008) | $ | 13.35 | $ | 9.03 | ||||
Fourth Quarter (June 1, 2008 – August 31, 2008) | $ | 18.78 | $ | 13.01 |
High | Low | |||||||
Fiscal Year Ended August 31, 2010 | ||||||||
First Quarter (September 1, 2009 — November 30, 2009) | $ | 15.45 | $ | 10.41 | ||||
Second Quarter (December 1, 2009 — February 28, 2010) | $ | 17.91 | $ | 12.81 | ||||
Third Quarter (March 1, 2010 — May 31, 2010) | $ | 18.49 | $ | 12.24 | ||||
Fourth Quarter (June 1, 2010 — August 31, 2010) | $ | 15.90 | $ | 10.17 | ||||
Fiscal Year Ended August 31, 2009 | ||||||||
First Quarter (September 1, 2008 — November 30, 2008) | $ | 17.33 | $ | 4.77 | ||||
Second Quarter (December 1, 2008 — February 28, 2009) | $ | 7.66 | $ | 4.14 | ||||
Third Quarter (March 1, 2009 — May 31, 2009) | $ | 9.14 | $ | 3.10 | ||||
Fourth Quarter (June 1, 2009 — August 31, 2009) | $ | 11.24 | $ | 6.59 |
Total of cash | Total of Cash | |||||||||||||||||||||||||||
Dividend | Dividend | dividends | Date of record for | Dividend cash | Dividend | Dividend | Dividends | Date of Record for | Dividend Cash | |||||||||||||||||||
declaration date | per share | declared | dividend payment | payment date | Declaration Date | per Share | Declared | Dividend Payment | Payment Date | |||||||||||||||||||
(in thousands, except for per share data) | (In thousands, except for per share data) | |||||||||||||||||||||||||||
Fiscal year 2008: | November 1, 2007 | $ | 0.07 | $ | 14,667 | November 15, 2007 | December 3, 2007 | |||||||||||||||||||||
January 17, 2008 | $ | 0.07 | $ | 14,704 | February 15, 2008 | March 3, 2008 | ||||||||||||||||||||||
Fiscal year 2010: | October 22, 2009 | $ | 0.07 | $ | 15,186 | (1) | November 16, 2009 | December 1, 2009 | ||||||||||||||||||||
April 17, 2008 | $ | 0.07 | $ | 14,704 | May 15, 2008 | June 2, 2008 | January 22, 2010 | $ | 0.07 | $ | 15,238 | February 16, 2010 | March 1, 2010 | |||||||||||||||
July 16, 2008 | $ | 0.07 | $ | 14,739 | August 15, 2008 | September 2, 2008 | April 14, 2010 | $ | 0.07 | $ | 15,221 | May 17, 2010 | June 1, 2010 | |||||||||||||||
July 22, 2010 | $ | 0.07 | $ | 15,247 | August 16, 2010 | September 1, 2010 | ||||||||||||||||||||||
Fiscal year 2009: | October 24, 2008 | $ | 0.07 | $ | 14,916 | November 17, 2008 | December 1, 2008 | October 24, 2008 | $ | 0.07 | $ | 14,916 | November 17, 2008 | December 1, 2008 | ||||||||||||||
January 22, 2009 | $ | 0.07 | $ | 14,974 | February 17, 2009 | March 2, 2009 | January 22, 2009 | $ | 0.07 | $ | 14,974 | February 17, 2009 | March 2, 2009 | |||||||||||||||
April 23, 2009 | $ | 0.07 | $ | 14,954 | May 15, 2009 | June 1, 2009 | April 23, 2009 | $ | 0.07 | $ | 14,954 | May 15, 2009 | June 1, 2009 | |||||||||||||||
July 16, 2009 | $ | 0.07 | $ | 14,992 | August 17, 2009 | September 1, 2009 | July 16, 2009 | $ | 0.07 | $ | 14,992 | August 17, 2009 | September 1, 2009 |
(1) | Of the $15.2 million in total dividends declared during the first fiscal quarter of 2010, $14.4 million was paid out of additional paid-in capital (which represents the amount of dividends declared in excess of the Company’s retained earnings balance at the date that the dividends were declared). |
33
35
Approximate | ||||||||||||||||
Total Number of | Dollar Value of | |||||||||||||||
Total Number | Shares Purchased | Shares that May | ||||||||||||||
of Shares | Average Price | as Part of Publicly | Yet Be Purchased | |||||||||||||
Period | Purchased (1) | Paid per Share | Announced Program | Under the Program | ||||||||||||
June 1, 2009 – June 30, 2009 | — | $ | — | — | — | |||||||||||
July 1, 2009 – July 31, 2009 | 195 | $ | 7.77 | — | — | |||||||||||
August 1, 2009 – August 31, 2009 | — | $ | — | — | — | |||||||||||
Total | 195 | $ | 7.77 | — | — |
Approximate | ||||||||||||||||
Total Number of | Dollar Value of | |||||||||||||||
Total Number | Shares Purchased | Shares that May | ||||||||||||||
of Shares | Average Price | as Part of Publicly | Yet Be Purchased | |||||||||||||
Period | Purchased(1) | Paid per Share | Announced Program | Under the Program | ||||||||||||
June 1, 2010 — June 30, 2010 | — | $ | — | — | — | |||||||||||
July 1, 2010 — July 31, 2010 | 975 | $ | 15.19 | — | — | |||||||||||
August 1, 2010 — August 31, 2010 | 246 | $ | 14.67 | — | — | |||||||||||
Total | 1,221 | $ | 15.09 | — | — |
(1) | The number of shares reported above as purchased are attributable to shares surrendered to us by employees in payment of the exercise price related to Option exercises or minimum tax obligations related to vesting of restricted shares. |
36
Item 6. | Selected Financial Data |
Fiscal Year Ended August 31, | ||||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | (In thousands, except for per share data) | |||||||||||||||||||||||||||||||||||
(in thousands, except for per share data) | ||||||||||||||||||||||||||||||||||||||||
Consolidated Statement of Operations Data: | ||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 11,684,538 | $ | 12,779,703 | $ | 12,290,592 | $ | 10,265,447 | $ | 7,524,386 | $ | 13,409,411 | $ | 11,684,538 | $ | 12,779,703 | $ | 12,290,592 | $ | 10,265,447 | ||||||||||||||||||||
Cost of revenue | 10,965,723 | 11,911,902 | 11,478,562 | 9,500,547 | 6,895,880 | 12,405,267 | 10,965,723 | 11,911,902 | 11,478,562 | 9,500,547 | ||||||||||||||||||||||||||||||
Gross profit | 718,815 | 867,801 | 812,030 | 764,900 | 628,506 | 1,004,144 | 718,815 | 867,801 | 812,030 | 764,900 | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 495,941 | 491,324 | 491,967 | 382,210 | 314,270 | 589,738 | 495,941 | 491,324 | 491,967 | 382,210 | ||||||||||||||||||||||||||||||
Research and development | 27,321 | 32,984 | 36,381 | 34,975 | 22,507 | 28,085 | 27,321 | 32,984 | 36,381 | 34,975 | ||||||||||||||||||||||||||||||
Amortization of intangibles | 31,039 | 37,288 | 29,347 | 24,323 | 39,762 | 25,934 | 31,039 | 37,288 | 29,347 | 24,323 | ||||||||||||||||||||||||||||||
Restructuring and impairment charges | 51,894 | 54,808 | 72,396 | 81,585 | — | 8,217 | 51,894 | 54,808 | 72,396 | 81,585 | ||||||||||||||||||||||||||||||
Goodwill impairment charges | 1,022,821 | — | — | — | — | — | 1,022,821 | — | — | — | ||||||||||||||||||||||||||||||
Loss on disposal of subsidiaries | 24,604 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Operating (loss) income | (910,201 | ) | 251,397 | 181,939 | 241,807 | 251,967 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | 327,566 | (910,201 | ) | 251,397 | 181,939 | 241,807 | ||||||||||||||||||||||||||||||||||
Other expense | 20,111 | 11,902 | 15,888 | 11,918 | 4,106 | 4,087 | 20,111 | 11,902 | 15,888 | 11,918 | ||||||||||||||||||||||||||||||
Interest income | (7,426 | ) | (12,014 | ) | (14,531 | ) | (18,734 | ) | (13,774 | ) | (2,956 | ) | (7,426 | ) | (12,014 | ) | (14,531 | ) | (18,734 | ) | ||||||||||||||||||||
Interest expense | 82,247 | 94,316 | 86,069 | 23,507 | 20,667 | 79,168 | 82,247 | 94,316 | 86,069 | 23,507 | ||||||||||||||||||||||||||||||
(Loss) income before income taxes and minority interest | (1,005,133 | ) | 157,193 | 94,513 | 225,116 | 240,968 | ||||||||||||||||||||||||||||||||||
Income (loss) before income tax | 247,267 | (1,005,133 | ) | 157,193 | 94,513 | 225,116 | ||||||||||||||||||||||||||||||||||
Income tax expense | 160,898 | 25,119 | 21,401 | 60,598 | 37,093 | 76,501 | 160,898 | 25,119 | 21,401 | 60,598 | ||||||||||||||||||||||||||||||
Minority interest, net of tax | (819 | ) | (1,818 | ) | (124 | ) | — | — | ||||||||||||||||||||||||||||||||
Net (loss) income | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | $ | 164,518 | $ | 203,875 | |||||||||||||||||||||||||||||
Net income (loss) | 170,766 | (1,166,031 | ) | 132,074 | 73,112 | 164,518 | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of income tax expense | 1,926 | (819 | ) | (1,818 | ) | (124 | ) | — | ||||||||||||||||||||||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Jabil Circuit, Inc. | $ | 168,840 | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | $ | 164,518 | |||||||||||||||||||||||||||||
Earnings (Loss) Per Share: | ||||||||||||||||||||||||||||||||||||||||
Income (loss) attributable to the stockholders of Jabil Circuit, Inc.: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | (5.63 | ) | $ | 0.65 | $ | 0.36 | $ | 0.79 | $ | 1.01 | $ | 0.79 | $ | (5.63 | ) | $ | 0.64 | $ | 0.35 | $ | 0.79 | ||||||||||||||||||
Diluted | $ | (5.63 | ) | $ | 0.65 | $ | 0.35 | $ | 0.77 | $ | 0.98 | $ | 0.78 | $ | (5.63 | ) | $ | 0.64 | $ | 0.35 | $ | 0.77 | ||||||||||||||||||
Common shares used in the calculations of (loss) earnings per share: | ||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||||
Basic | 207,002 | 205,275 | 203,779 | 207,413 | 202,501 | 214,332 | 207,002 | 209,805 | 206,724 | 208,737 | ||||||||||||||||||||||||||||||
Diluted | 207,002 | 206,158 | 206,972 | 212,540 | 207,706 | 217,597 | 207,002 | 210,425 | 209,801 | 213,663 | ||||||||||||||||||||||||||||||
34
37
August 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Consolidated Balance Sheets Data: | ||||||||||||||||||||
Working capital | $ | 1,048,844 | $ | 990,900 | $ | 1,091,497 | $ | 675,446 | $ | 977,631 | ||||||||||
Total assets | $ | 6,367,747 | $ | 5,317,858 | $ | 7,032,137 | $ | 6,295,232 | $ | 5,411,730 | ||||||||||
Current installments of notes payable, long-term debt and long-term lease obligations | $ | 167,566 | $ | 197,575 | $ | 269,937 | $ | 501,716 | $ | 63,813 | ||||||||||
Notes payable, long-term debt and long — term lease obligations, less current installments | $ | 1,018,930 | $ | 1,036,873 | $ | 1,099,473 | $ | 760,477 | $ | 329,520 | ||||||||||
Total Jabil Circuit, Inc. stockholders’ equity | $ | 1,578,046 | $ | 1,435,162 | $ | 2,715,725 | $ | 2,443,011 | $ | 2,294,481 | ||||||||||
Cash dividends declared, per share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.14 | ||||||||||
August 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidated Balance Sheets Data: | ||||||||||||||||||||
Working capital | $ | 990,900 | $ | 1,091,497 | $ | 675,446 | $ | 977,631 | $ | 1,117,806 | ||||||||||
Total assets | $ | 5,317,858 | $ | 7,032,137 | $ | 6,295,232 | $ | 5,411,730 | $ | 4,087,986 | ||||||||||
Current installments of notes payable, long-term debt and long-term lease obligations | $ | 197,575 | $ | 269,937 | $ | 501,716 | $ | 63,813 | $ | 674 | ||||||||||
Notes payable, long-term debt and long – term lease obligations, less current installments | $ | 1,036,873 | $ | 1,099,473 | $ | 760,477 | $ | 329,520 | $ | 326,580 | ||||||||||
Total stockholders’ equity | $ | 1,435,162 | $ | 2,715,725 | $ | 2,443,011 | $ | 2,294,481 | $ | 2,145,941 | ||||||||||
Cash dividends declared, per share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.14 | $ | — | ||||||||||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
38
35
39
36
Fiscal Year Ended August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Net revenue | $ | 11,684,538 | $ | 12,779,703 | $ | 12,290,592 | ||||||
Gross profit | $ | 718,815 | $ | 867,801 | $ | 812,030 | ||||||
Operating (loss) income | $ | (910,201 | ) | $ | 251,397 | $ | 181,939 | |||||
Net (loss) income | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | |||||
(Loss) earnings per share - basic | $ | (5.63 | ) | $ | 0.65 | $ | 0.36 | |||||
(Loss) earnings per share - diluted | $ | (5.63 | ) | $ | 0.65 | $ | 0.35 |
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net revenue | $ | 13,409,411 | $ | 11,684,538 | $ | 12,779,703 | ||||||
Gross profit | $ | 1,004,144 | $ | 718,815 | $ | 867,801 | ||||||
Operating income (loss) | $ | 327,566 | $ | (910,201 | ) | $ | 251,397 | |||||
Net income (loss) attributable to Jabil Circuit, Inc | $ | 168,840 | $ | (1,165,212 | ) | $ | 133,892 | |||||
Income (loss) per share — basic | $ | 0.79 | $ | (5.63 | ) | $ | 0.64 | |||||
Income (loss) per share — diluted | $ | 0.78 | $ | (5.63 | ) | $ | 0.64 |
40
Three Months Ended | ||||||||||||||||||||||||||||||||
Three Months Ended | August 31, | May 31, | February 28, | November 30, | ||||||||||||||||||||||||||||
August 31, | May 31, | February 28, | November 30, | 2010 | 2010 | 2010 | 2009 | |||||||||||||||||||||||||
2009 | 2009 | 2009 | 2008 | |||||||||||||||||||||||||||||
Sales cycle | 16 days | 22 days | 20 days | 24 days | 17 days | 16 days | 17 days | 16 days | ||||||||||||||||||||||||
Inventory turns | 9 turns | 8 turns | 8 turns | 8 turns | 7 turns | 7 turns | 7 turns | 8 turns | ||||||||||||||||||||||||
Days in accounts receivable | 41 days | 40 days | 36 days | 44 days | ||||||||||||||||||||||||||||
Days in trade accounts receivable | 33 days | 33 days | 35 days | 41 days | ||||||||||||||||||||||||||||
Days in inventory | 42 days | 46 days | 46 days | 46 days | 53 days | 50 days | 51 days | 45 days | ||||||||||||||||||||||||
Days in accounts payable | 67 days | 64 days | 62 days | 66 days | 69 days | 67 days | 69 days | 70 days |
Three Months Ended | ||||||||||||||||
August 31, | May 31, | February 29, | November 30, | |||||||||||||
2008 | 2008 | 2008 | 2007 | |||||||||||||
Sales cycle | 20 days | 21 days | 23 days | 22 days | ||||||||||||
Inventory turns | 8 turns | 8 turns | 8 turns | 8 turns | ||||||||||||
Days in accounts receivable | 40 days | 39 days | 39 days | 42 days | ||||||||||||
Days in inventory | 45 days | 47 days | 47 days | 42 days | ||||||||||||
Days in accounts payable | 65 days | 65 days | 63 days | 62 days |
Three Months Ended | ||||||||||||||||
August 31, | May 31, | February 28, | November 30, | |||||||||||||
2009 | 2009 | 2009 | 2008 | |||||||||||||
Sales cycle | 16 days | 22 days | 20 days | 24 days | ||||||||||||
Inventory turns | 9 turns | 8 turns | 8 turns | 8 turns | ||||||||||||
Days in trade accounts receivable | 41 days | 40 days | 36 days | 44 days | ||||||||||||
Days in inventory | 42 days | 46 days | 46 days | 46 days | ||||||||||||
Days in accounts payable | 67 days | 64 days | 62 days | 66 days |
41
37
42
38
39
43
44
40
Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Cost of revenue | 93.8 | 93.2 | 93.4 | 92.5 | 93.8 | 93.2 | ||||||||||||||||||
Gross profit | 6.2 | 6.8 | 6.6 | 7.5 | 6.2 | 6.8 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 4.3 | 3.8 | 4.0 | 4.4 | 4.3 | 3.8 | ||||||||||||||||||
Research and development | 0.2 | 0.3 | 0.3 | 0.2 | 0.2 | 0.3 | ||||||||||||||||||
Amortization of intangibles | 0.3 | 0.3 | 0.2 | 0.2 | 0.3 | 0.3 | ||||||||||||||||||
Restructuring and impairment charges | 0.4 | 0.4 | 0.6 | 0.1 | 0.4 | 0.4 | ||||||||||||||||||
Goodwill impairment charges | 8.8 | 0.0 | 0.0 | — | 8.8 | 0.0 | ||||||||||||||||||
Loss on disposal of subsidiaries | 0.2 | — | — | |||||||||||||||||||||
Operating (loss) income | (7.8 | ) | 2.0 | 1.5 | ||||||||||||||||||||
Operating income (loss) | 2.4 | (7.8 | ) | 2.0 | ||||||||||||||||||||
Other expense | 0.2 | 0.1 | 0.1 | 0.0 | 0.2 | 0.1 | ||||||||||||||||||
Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.0 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||
Interest expense | 0.7 | 0.8 | 0.7 | 0.6 | 0.7 | 0.8 | ||||||||||||||||||
(Loss) income before income taxes and minority interest | (8.6 | ) | 1.2 | 0.8 | ||||||||||||||||||||
Income (loss) before income tax | 1.8 | (8.6 | ) | 1.2 | ||||||||||||||||||||
Income tax expense | 1.4 | 0.2 | 0.2 | 0.5 | 1.4 | 0.2 | ||||||||||||||||||
Minority interest, net of tax | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||
Net (loss) income | (10.0 | %) | 1.0 | % | 0.6 | % | ||||||||||||||||||
Net income (loss) | 1.3 | (10.0 | ) | 1.0 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of income tax expense | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||
Net income (loss) attributable to Jabil Circuit, Inc | 1.3 | % | (10.0 | )% | 1.0 | % | ||||||||||||||||||
45
41
Fiscal Year Ended August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
EMS | ||||||||||||
Automotive | 3 | % | 4 | % | 5 | % | ||||||
Computing and storage | 11 | % | 13 | % | 11 | % | ||||||
Instrumentation and medical | 19 | % | 18 | % | 19 | % | ||||||
Networking | 17 | % | 21 | % | 20 | % | ||||||
Telecommunications | 6 | % | 6 | % | 5 | % | ||||||
Other | 2 | % | 2 | % | 2 | % | ||||||
Total EMS | 58 | % | 64 | % | 62 | % | ||||||
Consumer | ||||||||||||
Display | 4 | % | 7 | % | 8 | % | ||||||
Mobility | 20 | % | 12 | % | 16 | % | ||||||
Peripherals | 12 | % | 12 | % | 10 | % | ||||||
Total Consumer | 36 | % | 31 | % | 34 | % | ||||||
AMS | 6 | % | 5 | % | 4 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
EMS | ||||||||||||
Computing and storage | 10 | % | 11 | % | 13 | % | ||||||
Instrumentation and medical | 23 | % | 19 | % | 18 | % | ||||||
Networking | 17 | % | 17 | % | 21 | % | ||||||
Telecommunications | 5 | % | 6 | % | 6 | % | ||||||
Other | 4 | % | 5 | % | 6 | % | ||||||
Total EMS | 59 | % | 58 | % | 64 | % | ||||||
Consumer | ||||||||||||
Digital home office | 20 | % | 16 | % | 19 | % | ||||||
Mobility | 15 | % | 20 | % | 12 | % | ||||||
Total Consumer | 35 | % | 36 | % | 31 | % | ||||||
AMS | 6 | % | 6 | % | 5 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
46
a. | 2009 Restructuring Plan |
42
47
b. | 2006 Restructuring Plan |
43
48
49
a. | 2009 Restructuring Plan |
b. | 2006 Restructuring Plan |
50
44
51
2008 | 2007 | |||||||
EMS | ||||||||
Automotive | 4 | % | 5 | % | ||||
Computing and storage | 13 | % | 11 | % | ||||
Instrumentation and medical | 18 | % | 19 | % | ||||
Networking | 21 | % | 20 | % | ||||
Telecommunications | 6 | % | 5 | % | ||||
Other | 2 | % | 2 | % | ||||
Total EMS | 64 | % | 62 | % | ||||
Consumer | ||||||||
Display | 7 | % | 8 | % | ||||
Mobility | 12 | % | 16 | % | ||||
Peripherals | 12 | % | 10 | % | ||||
Total Consumer | 31 | % | 34 | % | ||||
AMS | 5 | % | 4 | % | ||||
Total | 100 | % | 100 | % | ||||
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Operating income (loss) (U.S. GAAP) | $ | 327,566 | $ | (910,201 | ) | $ | 251,397 | |||||
Amortization of intangibles | 25,934 | 31,039 | 37,288 | |||||||||
Stock-based compensation and related charges | 104,609 | 44,026 | 36,404 | |||||||||
Restructuring and impairment charges | 8,217 | 51,894 | 54,808 | |||||||||
Goodwill impairment charges | — | 1,022,821 | — | |||||||||
Loss on disposal of subsidiaries | 24,604 | — | — | |||||||||
Distressed customer charges | — | 7,256 | — | |||||||||
Core operating income(Non-U.S. GAAP) | $ | 490,930 | $ | 246,835 | $ | 379,897 | ||||||
Net income (loss) attributable to Jabil Circuit, Inc. (U.S. GAAP) | $ | 168,840 | $ | (1,165,212 | ) | $ | 133,892 | |||||
Amortization of intangibles, net of tax | 25,887 | 30,916 | 26,990 | |||||||||
Stock-based compensation and related charges, net of tax | 102,719 | 43,088 | 30,591 | |||||||||
Restructuring and impairment charges, net of tax | 8,314 | 63,490 | 39,573 | |||||||||
Goodwill impairment charges, net of tax | — | 1,018,157 | — | |||||||||
Loss on disposal of subsidiaries, net of tax | 24,604 | — | — | |||||||||
Distressed customer charges, net of tax | — | 6,329 | — | |||||||||
Deferred tax valuation allowance charges | — | 121,929 | — | |||||||||
Other expense, net of tax | — | 13,317 | — | |||||||||
Core earnings(Non-U.S. GAAP) | $ | 330,364 | $ | 132,014 | $ | 231,046 | ||||||
52
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Common shares used in the calculations of basic earnings (loss) per share: | ||||||||||||
Basic weighted average shares outstanding (U.S. GAAP)(1) | 214,332 | 207,002 | 209,805 | |||||||||
Adjustments: | ||||||||||||
Share-based payment awards classified as participating securities | — | 6,424 | — | |||||||||
Basic weighted average shares outstanding(Non-U.S. GAAP) | 214,332 | 213,426 | 209,805 | |||||||||
Common shares used in the calculations of diluted earnings (loss) per share: | ||||||||||||
Diluted weighted average shares outstanding (U.S. GAAP)(1) | 217,597 | 207,002 | 210,425 | |||||||||
Adjustments: | ||||||||||||
Share-based payment awards classified as participating securities | — | 6,424 | — | |||||||||
Dilutive common shares issuable under the ESPP and upon exercise of options and stock appreciation rights | — | 72 | — | |||||||||
Dilutive unvested non-participating restricted stock awards | — | — | — | |||||||||
Diluted weighted average shares outstanding(Non-U.S. GAAP) | $ | 217,597 | $ | 213,498 | $ | 210,425 | ||||||
Earnings (loss) per share: (U.S. GAAP) | ||||||||||||
Basic | $ | 0.79 | $ | (5.63 | ) | $ | 0.64 | |||||
Diluted | $ | 0.78 | $ | (5.63 | ) | $ | 0.64 | |||||
Core earnings per share:(Non-U.S. GAAP) | ||||||||||||
Basic | $ | 1.54 | $ | 0.62 | $ | 1.10 | ||||||
Diluted | $ | 1.52 | $ | 0.62 | $ | 1.10 |
(1) | For the 12 months ended August 31, 2009, no potential common shares relating to our equity awards were included in the U.S. GAAP computation of basic and diluted loss per share as their effect would have been anti-dilutive given the Company’s net loss for the period. |
4553
46
Fiscal Year 2009 | Fiscal Year 2008 | |||||||||||||||||||||||||||||||
Aug. 31, | May 31, | Feb. 28, | Nov. 30, | Aug. 31, | May 31, | Feb. 29, | Nov. 30, | |||||||||||||||||||||||||
2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | 2007 | |||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 2,799,528 | $ | 2,615,101 | $ | 2,887,400 | $ | 3,382,509 | $ | 3,264,874 | $ | 3,088,269 | $ | 3,058,613 | $ | 3,367,947 | ||||||||||||||||
Cost of revenue | 2,608,561 | 2,466,512 | 2,731,854 | 3,158,796 | 3,034,874 | 2,878,087 | 2,870,708 | 3,128,233 | ||||||||||||||||||||||||
Gross profit | 190,967 | 148,589 | 155,546 | 223,713 | 230,000 | 210,182 | 187,905 | 239,714 | ||||||||||||||||||||||||
Selling, general and administrative | 127,807 | 125,419 | 111,053 | 131,662 | 123,707 | 126,557 | 124,910 | 116,150 | ||||||||||||||||||||||||
Research and development | 8,714 | 7,198 | 5,754 | 5,655 | 8,603 | 8,006 | 9,863 | 6,512 | ||||||||||||||||||||||||
Amortization of intangibles | 7,719 | 7,612 | 7,673 | 8,035 | 9,653 | 9,058 | 9,722 | 8,855 | ||||||||||||||||||||||||
Restructuring and impairment charges | 3,582 | 16,167 | 31,524 | 621 | 262 | 3,470 | 41,789 | 9,287 | ||||||||||||||||||||||||
Goodwill impairment charges | – | – | 705,121 | 317,700 | – | – | – | – | ||||||||||||||||||||||||
Operating (loss) income | 43,145 | (7,807 | ) | (705,579 | ) | (239,960 | ) | 87,775 | 63,091 | 1,621 | 98,910 | |||||||||||||||||||||
Other expense | 15,942 | 948 | 857 | 2,364 | 2,087 | 2,010 | 3,320 | 4,485 | ||||||||||||||||||||||||
Interest income | (2,112 | ) | (1,087 | ) | (1,920 | ) | (2,307 | ) | (2,759 | ) | (3,051 | ) | (3,152 | ) | (3,052 | ) | ||||||||||||||||
Interest expense | 19,393 | 19,043 | 20,077 | 23,734 | 23,807 | 21,213 | 23,711 | 25,585 | ||||||||||||||||||||||||
(Loss) income before income taxes and minority interest | 9,922 | (26,711 | ) | (724,593 | ) | (263,751 | ) | 64,640 | 42,919 | (22,258 | ) | 71,892 | ||||||||||||||||||||
Income tax (benefit) expense | 3,989 | 2,528 | 142,018 | 12,363 | 7,729 | 4,657 | 3,102 | 9,631 | ||||||||||||||||||||||||
Minority interest, net of tax | 426 | (477 | ) | (511 | ) | (257 | ) | (580 | ) | (183 | ) | (1,315 | ) | 260 | ||||||||||||||||||
Net (loss) income | $ | 5,507 | $ | (28,762 | ) | $ | (866,100 | ) | $ | (275,857 | ) | $ | 57,491 | $ | 38,445 | $ | (24,045 | ) | $ | 62,001 | ||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.03 | $ | (0.14 | ) | $ | (4.19 | ) | $ | (1.34 | ) | $ | 0.28 | $ | 0.19 | $ | (0.12 | ) | $ | 0.30 | ||||||||||||
Diluted | $ | 0.03 | $ | (0.14 | )(1) | $ | (4.19 | )(1) | $ | (1.34 | )(1) | $ | 0.28 | $ | 0.19 | $ | (0.12 | )(1) | $ | 0.30 | ||||||||||||
Common shares used in the calculations of (loss)/earnings per share: | ||||||||||||||||||||||||||||||||
Basic | 207,696 | 207,190 | 206,711 | 206,411 | 205,889 | 205,463 | 205,082 | 204,649 | ||||||||||||||||||||||||
Diluted | 208,846 | 207,190 | 206,711 | 206,411 | 206,804 | 206,077 | 205,082 | 206,605 | ||||||||||||||||||||||||
Fiscal Year 2010 | Fiscal Year 2009 | |||||||||||||||||||||||||||||||
Aug. 31, | May 31, | Feb. 28, | Nov. 30, | Aug. 31, | May 31, | Feb. 28, | Nov. 30, | |||||||||||||||||||||||||
2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | |||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 3,860,933 | $ | 3,455,578 | $ | 3,004,644 | $ | 3,088,256 | $ | 2,799,528 | $ | 2,615,101 | $ | 2,887,400 | $ | 3,382,509 | ||||||||||||||||
Cost of revenue | 3,573,425 | 3,193,464 | 2,781,898 | 2,856,480 | 2,608,561 | 2,466,512 | 2,731,854 | 3,158,796 | ||||||||||||||||||||||||
Gross profit | 287,508 | 262,114 | 222,746 | 231,776 | 190,967 | 148,589 | 155,546 | 223,713 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 160,512 | 151,409 | 146,264 | 131,553 | 127,807 | 125,419 | 111,053 | 131,662 | ||||||||||||||||||||||||
Research and development | 6,632 | 6,331 | 7,425 | 7,697 | 8,714 | 7,198 | 5,754 | 5,655 | ||||||||||||||||||||||||
Amortization of intangibles | 5,980 | 6,206 | 6,643 | 7,105 | 7,719 | 7,612 | 7,673 | 8,035 | ||||||||||||||||||||||||
Restructuring and impairment charges | 2,512 | 1,635 | 635 | 3,435 | 3,582 | 16,167 | 31,524 | 621 | ||||||||||||||||||||||||
Goodwill impairment charges | — | — | — | — | — | — | 705,121 | 317,700 | ||||||||||||||||||||||||
Loss on disposal of subsidiaries | 8,882 | — | — | 15,722 | — | — | — | — | ||||||||||||||||||||||||
Operating income (loss) | 102,990 | 96,533 | 61,779 | 66,264 | 43,145 | (7,807 | ) | (705,579 | ) | (239,960 | ) | |||||||||||||||||||||
Other expense | 964 | 960 | 1,125 | 1,038 | 15,942 | 948 | 857 | 2,364 | ||||||||||||||||||||||||
Interest income | (779 | ) | (626 | ) | (644 | ) | (907 | ) | (2,112 | ) | (1,087 | ) | (1,920 | ) | (2,307 | ) | ||||||||||||||||
Interest expense | 19,519 | 19,503 | 20,030 | 20,116 | 19,393 | 19,043 | 20,077 | 23,734 | ||||||||||||||||||||||||
Income (loss) before income tax | 83,286 | 76,696 | 41,268 | 46,017 | 9,922 | (26,711 | ) | (724,593 | ) | (263,751 | ) | |||||||||||||||||||||
Income tax expense | 23,910 | 24,009 | 11,446 | 17,136 | 3,989 | 2,528 | 142,018 | 12,363 | ||||||||||||||||||||||||
Net income (loss) | 59,376 | 52,687 | 29,822 | 28,881 | 5,933 | (29,239 | ) | (866,611 | ) | (276,114 | ) | |||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of income tax expense | 685 | 656 | (8 | ) | 593 | 426 | (477 | ) | (511 | ) | (257 | ) | ||||||||||||||||||||
Net income (loss) attributable to Jabil Circuit, Inc | $ | 58,691 | $ | 52,031 | $ | 29,830 | $ | 28,288 | $ | 5,507 | $ | (28,762 | ) | $ | (866,100 | ) | $ | (275,857 | ) | |||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.27 | $ | 0.24 | $ | 0.14 | $ | 0.13 | $ | 0.03 | $ | (0.14 | ) | $ | (4.19 | ) | $ | (1.34 | ) | |||||||||||||
Diluted | $ | 0.27 | $ | 0.24 | $ | 0.14 | $ | 0.13 | $ | 0.03 | $ | (0.14 | )(1) | $ | (4.19 | )(1) | $ | (1.34 | )(1) | |||||||||||||
Common shares used in the calculations of earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | 214,011 | 213,881 | 213,625 | 213,665 | 207,696 | 207,190 | 206,711 | 206,411 | ||||||||||||||||||||||||
Diluted | 215,997 | 216,522 | 214,760 | 215,059 | 208,846 | 207,190 | 206,711 | 206,411 | ||||||||||||||||||||||||
(1) | For the three months ended May 31, 2009, February 28, 2009, and November 30, |
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Fiscal Year 2010 | Fiscal Year 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year 2009 | Fiscal Year 2008 | Aug. 31, | May 31, | Feb. 28, | Nov. 30, | Aug. 31, | May 31, | Feb. 28, | Nov. 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aug. 31, | May 31, | Feb. 28, | Nov. 30, | Aug. 31, | May 31, | Feb. 29, | Nov. 30, | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
Cost of revenue | 93.2 | 94.3 | 94.6 | 93.4 | 93.0 | 93.2 | 93.9 | 92.9 | 92.6 | 92.4 | 92.6 | 92.5 | 93.2 | 94.3 | 94.6 | 93.4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 6.8 | 5.7 | 5.4 | 6.6 | 7.0 | 6.8 | 6.1 | 7.1 | 7.4 | 7.6 | 7.4 | 7.5 | 6.8 | 5.7 | 5.4 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 4.6 | 4.8 | 3.8 | 3.9 | 3.8 | 4.1 | 4.0 | 3.4 | 4.1 | 4.4 | 4.9 | 4.3 | 4.6 | 4.8 | 3.8 | 3.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 0.3 | 0.3 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 0.3 | 0.3 | 0.3 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and impairment charges | 0.1 | 0.6 | 1.1 | 0.0 | 0.0 | 0.1 | 1.4 | 0.3 | 0.1 | — | — | 0.1 | 0.1 | 0.6 | 1.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charges | 0.0 | 0.0 | 24.4 | 9.4 | 0.0 | 0.0 | 0.0 | 0.0 | — | — | — | — | — | — | 24.4 | 9.4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on disposal of subsidiaries | 0.2 | — | — | 0.5 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 1.5 | (0.3 | ) | (24.4 | ) | (7.1 | ) | 2.6 | 2.0 | 0.1 | 2.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 2.6 | 2.8 | 2.1 | 2.2 | 1.5 | (0.3 | ) | (24.4 | ) | (7.1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense | 0.6 | 0.0 | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | — | — | — | — | 0.6 | — | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (0.1 | ) | 0.0 | (0.0 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | — | — | — | — | (0.1 | ) | — | — | (0.1 | ) | |||||||||||||||||||||||||||||||||||||||
Interest expense | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.8 | 0.8 | 0.5 | 0.6 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and minority interest | 0.3 | (1.0 | ) | (25.1 | ) | (7.8 | ) | 1.9 | 1.3 | (0.7 | ) | 2.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | 0.1 | 0.1 | 4.9 | 0.4 | 0.1 | 0.1 | 0.1 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minority interest, net of tax | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 2.1 | 2.2 | 1.4 | 1.5 | 0.3 | (1.0 | ) | (25.1 | ) | (7.8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 0.6 | 0.7 | 0.4 | 0.6 | 0.1 | 0.1 | 4.9 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 0.2 | % | (1.1 | )% | (30.0 | )% | (8.2 | )% | 1.8 | % | 1.2 | % | (0.8 | )% | 1.8 | % | 1.5 | 1.5 | 1.0 | 0.9 | 0.2 | (1.1 | ) | (30.0 | ) | (8.2 | ) | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of income tax expense | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Jabil Circuit, Inc | 1.5 | % | 1.5 | % | 1.0 | % | 0.9 | % | 0.2 | % | (1.1 | )% | (30.0 | )% | (8.2 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||
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Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 557,309 | $ | 420,002 | $ | 183,889 | $ | 427,410 | $ | 557,309 | $ | 420,002 | ||||||||||||
Net cash used in investing activities | (286,175 | ) | (384,720 | ) | (1,054,422 | ) | (440,257 | ) | (286,175 | ) | (384,720 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (195,913 | ) | 85,000 | 715,140 | (100,280 | ) | (195,913 | ) | 85,000 | |||||||||||||||
Effect of exchange rate changes on cash | 28,128 | (10,984 | ) | 45,455 | (18,816 | ) | 28,128 | (10,984 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 103,349 | $ | 109,298 | $ | (109,938 | ) | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (131,943 | ) | $ | 103,349 | $ | 109,298 | |||||||||||||||||
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56
49
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August 31, | August 31, | |||||||
2009 | 2008 | |||||||
5.875% Senior Notes due 2010 (a) | $ | 5,064 | $ | 298,198 | ||||
7.750% Senior Notes due 2016 (b) | 300,063 | — | ||||||
8.250% Senior Notes due 2018 (c) | 396,758 | 396,377 | ||||||
Short-term factoring debt (d) | 1,468 | 617 | ||||||
Borrowings under credit facilities (e) | 21,313 | 55,579 | ||||||
Borrowings under loans (f) | 384,485 | 447,647 | ||||||
Securitization program obligations (g) | 125,291 | 170,975 | ||||||
Miscellaneous borrowings | 6 | 17 | ||||||
Total notes payable, long-term debt and long-term lease obligations | $ | 1,234,448 | $ | 1,369,410 | ||||
Less current installments of notes payable, long-term debt and long-term lease obligations | 197,575 | 269,937 | ||||||
Notes payable, long-term debt and long-term lease obligations, less current installments | $ | 1,036,873 | $ | 1,099,473 | ||||
August 31, | August 31, | |||||||
2010 | 2009 | |||||||
5.875% Senior Notes due 2010(a) | $ | — | $ | 5,064 | ||||
7.750% Senior Notes due 2016(b) | 301,782 | 300,063 | ||||||
8.250% Senior Notes due 2018(c) | 397,140 | 396,758 | ||||||
Short-term factoring debt(d) | — | 1,468 | ||||||
Borrowings under credit facilities(e) | 73,750 | 21,313 | ||||||
Borrowings under loans(f) | 342,380 | 384,485 | ||||||
Securitization program obligations(g) | 71,436 | 125,291 | ||||||
Miscellaneous borrowings | 8 | 6 | ||||||
Total notes payable, long-term debt and long-term lease obligations | $ | 1,186,496 | $ | 1,234,448 | ||||
Less current installments of notes payable, long-term debt and long-term lease obligations | 167,566 | 197,575 | ||||||
Notes payable, long-term debt and long-term lease obligations, less current installments | $ | 1,018,930 | $ | 1,036,873 | ||||
(a) | During the fourth quarter of fiscal year 2003, we issued a total of $300.0 million, seven-year, publicly-registered 5.875% Senior Notes (the “5.875% Senior Notes”) at 99.803% of par, resulting in net proceeds of approximately $297.2 million. | ||
The 5.875% Senior Notes matured on July 15, 2010, and, at that time, the outstanding balance was fully paid. | |||
(b) | During the fourth quarter of fiscal year 2009, we | ||
(c) | During the second and third quarters of fiscal year 2008, we |
58
completed an exchange whereby all of the outstanding unregistered 8.250% Notes were exchanged for registered 8.250% Notes (collectively the “8.250% Senior Notes”) that are substantially identical to the unregistered notes except that the | |||
The 8.250% Senior Notes |
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We are subject to |
During the fourth quarter of fiscal year 2007, we entered into forward interest rate swap transactions to hedge the fixed interest rate payments for an anticipated debt issuance. The swaps were accounted for as a cash flow |
(d) | During the fourth quarter of fiscal year 2007 and the fourth quarter of fiscal year 2009, we entered into separate agreements with |
51
(e) | |||
(f) | During the third quarter of fiscal year 2005, we negotiated a five-year, 400.0 million Indian rupee construction loan for an Indian subsidiary with an Indian branch of a global bank. Under the terms of the loan, we pay interest on outstanding borrowings based on a fixed rate of 7.45%. The construction loan | ||
During the third quarter of fiscal year 2005, we negotiated a five-year, 25.0 million Euro construction loan for a Hungarian subsidiary with a Hungarian branch of a global bank. Under the terms of the loan facility, we pay interest on outstanding borrowings based on the Euro Interbank Offered Rate plus a spread of 0.925%. Quarterly principal repayments began in September 2006 to repay the amount of proceeds drawn under the construction loan. The construction loan |
59
During the second quarter of fiscal year 2007, we entered into a three-year loan agreement to borrow $20.3 million from a software vendor in connection with various software licenses that we purchased from them. The software licenses were capitalized and | |||
Through the acquisition of a Taiwanese subsidiary in fiscal year 2007, we assumed certain liabilities, including short and | |||
During the fourth quarter of fiscal year 2007, we entered into the five-year Credit Facility. This agreement provides for a revolving credit portion in the initial amount of $800.0 million, subject to potential increases up to $1.0 billion, and provides for a term portion in the amount of $400.0 million. Some or all of the lenders under the Credit Facility and their affiliates have various other relationships with us and our subsidiaries involving the provision of financial services, including cash management, loans, letter of credit and bank guarantee facilities, investment banking and trust services. We, along with some of our subsidiaries, have entered into foreign exchange contracts and other derivative arrangements with certain of the lenders and their affiliates. In addition, many, if not most, of the agents and lenders under the Credit Facility held positions as agent and/or lender under our old revolving credit facility and the | |||
In addition to the loans described above, at August 31, |
52
(g) | During the third quarter of fiscal year 2008, we entered into a foreign asset-backed securitization program with a bank |
60
Subsequent to fiscal year 2008, certain amendments adjusted the net borrowings available at any one time under the securitization program to $100.0 million. In connection with the foreign securitization program certain of our foreign subsidiaries sell, on an ongoing basis, an undivided interest in designated pools of trade accounts receivable to a special purpose entity, which in turn borrows up to |
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Payments Due by Period | ||||||||||||||||||||||||||||||||||||||||
Less than 1 | After | |||||||||||||||||||||||||||||||||||||||
Payments due by period (in thousands) | Total | Year | 1-3 Years | 4-5 Years | 5 Years | |||||||||||||||||||||||||||||||||||
Less than 1 | After 5 | (In thousands) | ||||||||||||||||||||||||||||||||||||||
Total | year | 1-3 years | 4-5 years | years | ||||||||||||||||||||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||||||||||||||||||||||
Notes payable, long-term debt and long-term lease obligations | $ | 1,234,448 | $ | 197,575 | $ | 340,051 | $ | — | $ | 696,822 | $ | 1,186,496 | $ | 167,566 | $ | 320,008 | $ | — | $ | 698,922 | ||||||||||||||||||||
Future interest on notes payable and long-term debt | 465,675 | 61,946 | 123,881 | 115,631 | 164,217 | |||||||||||||||||||||||||||||||||||
Future interest on notes payable and long-term debt(a) | 403,893 | 62,102 | 119,918 | 115,631 | 106,242 | |||||||||||||||||||||||||||||||||||
Operating lease obligations | 187,343 | 51,466 | 65,972 | 43,846 | 26,059 | 153,787 | 51,653 | 62,769 | 28,742 | 10,623 | ||||||||||||||||||||||||||||||
Estimated future benefit payments to plan | 57,066 | 4,679 | 9,556 | 10,197 | 32,634 | 52,313 | 4,253 | 9,515 | 9,141 | 29,404 | ||||||||||||||||||||||||||||||
Capital commitments(b) | ||||||||||||||||||||||||||||||||||||||||
Total contractual cash obligations | $ | 1,944,532 | $ | 315,666 | $ | 539,460 | $ | 169,674 | $ | 919,732 | ||||||||||||||||||||||||||||||
Total contractual cash obligations(c) | $ | 1,796,489 | $ | 285,574 | $ | 512,210 | $ | 153,514 | $ | 845,191 | ||||||||||||||||||||||||||||||
(a) | Certain of our notes payable and long-term debt pay interest at variable rates. In the contractual obligations table above, we have elected to apply interest rates applicable to the current fiscal quarter to determine the value of these future interest payments. | |
(b) | During the first fiscal quarter of 2009, |
53
At August 31, |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
62
54
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
(a) | Evaluation of Disclosure Controls and Procedures |
(b) | Management’s Report on Internal Control over Financial Reporting |
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(c) | Changes in Internal Control over Financial Reporting |
(d) | Limitations on the Effectiveness of Controls and other matters |
(e) | CEO and CFO Certifications |
55
Item 10. | Directors, Executive Officers and Corporate Governance |
65
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
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Number of securities | Number of Securities | |||||||||||||||||||||||
Number of securities to | Weighted-average | remaining available | Number of Securities to | Weighted-Average | Remaining Available | |||||||||||||||||||
be issued upon exercise | exercise price of | for future issuance | be Issued Upon Exercise | Exercise Price of | for Future Issuance | |||||||||||||||||||
of outstanding options, | outstanding options, | under equity | of Outstanding Options, | Outstanding Options, | Under Equity | |||||||||||||||||||
Equity compensation plans approved by security holders: | warrants and rights | warrants and rights | compensation plans | |||||||||||||||||||||
Equity Compensation Plans Approved by Security Holders: | Warrants and Rights | Warrants and Rights | Compensation Plans | |||||||||||||||||||||
1992 Stock Option Plan | 2,934,886 | $ | 22.46 | NA | 1,946,992 | $ | 22.21 | NA | ||||||||||||||||
2002 Stock Option Plan | 11,877,592 | $ | 22.47 | 4,476,315 | 11,062,747 | $ | 24.47 | 9,771,549 | ||||||||||||||||
2002 CSOP Plan | 86,426 | $ | 17.98 | 398,691 | 78,905 | $ | 17.99 | 400,222 | ||||||||||||||||
2002 FSOP Plan | 122,770 | $ | 23.88 | 253,090 | 65,630 | $ | 23.26 | 308,230 | ||||||||||||||||
2002 Employee Stock Purchase Plan | NA | NA | 2,335,298 | NA | NA | 1,208,281 | ||||||||||||||||||
Restricted Stock Awards | 10,201,552 | NA | NA | 12,189,271 | NA | NA | ||||||||||||||||||
Total | 25,223,226 | 7,463,394 | 25,343,545 | 11,688,282 | ||||||||||||||||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accounting Fees and Services |
58
66
Item 15. | Exhibits, Financial Statement Schedules |
Schedules not listed in the Index to Consolidated Financial Statements and Schedule have been omitted because they are not applicable, not required, or the information required to be set forth therein is included in the consolidated financial statements or notes thereto. | |||
3. Exhibits. See Item 15(b) below. (b) Exhibits. The exhibits listed on the Exhibits Index are filed as part of, or incorporated by reference into, this Report. (c) Financial Statement Schedules.See Item 15(a) above. |
59
67
71 | ||||
Consolidated Financial Statements: | ||||
77 | ||||
Financial Statement Schedule: | ||||
60
68
61
69
62
70
63
71
August 31, | ||||||||||||||||
August 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 876,272 | $ | 772,923 | $ | 744,329 | $ | 876,272 | ||||||||
Trade accounts receivable, net of allowance for doubtful accounts of $15,510 in 2009 and $10,116 in 2008 (note 2) | 1,260,962 | 1,475,530 | ||||||||||||||
Trade accounts receivable, net of allowance for doubtful accounts of $13,939 in 2010 and $15,510 in 2009 (note 2) | 1,408,319 | 1,260,962 | ||||||||||||||
Inventories (note 3) | 1,226,656 | 1,528,862 | 2,094,135 | 1,226,656 | ||||||||||||
Prepaid expenses and other current assets (note 14) | 247,795 | 293,070 | ||||||||||||||
Prepaid expenses and other current assets (note 13) | 349,165 | 247,795 | ||||||||||||||
Income taxes receivable | 37,448 | 24,535 | 35,560 | 37,448 | ||||||||||||
Deferred income taxes (note 4) | 27,693 | 44,217 | 22,510 | 27,693 | ||||||||||||
Total current assets | 3,676,826 | 4,139,137 | 4,654,018 | 3,676,826 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $1,131,765 at August 31, 2009 and $1,079,719 at August 31, 2008 (note 5) | 1,377,729 | 1,392,479 | ||||||||||||||
Goodwill (notes 6 and 7) | 25,120 | 1,119,110 | ||||||||||||||
Intangible assets, net of accumulated amortization of $98,772 at August 31, 2009 and $87,242 at August 31, 2008 (notes 6 and 7) | 131,168 | 172,835 | ||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $1,166,807 at August 31, 2010 and $1,131,765 at August 31, 2009 (note 5) | 1,451,392 | 1,377,729 | ||||||||||||||
Goodwill (note 6) | 28,455 | 25,120 | ||||||||||||||
Intangible assets, net of accumulated amortization of $112,687 at August 31, 2010 and $98,772 at August 31, 2009 (note 6) | 104,113 | 131,168 | ||||||||||||||
Deferred income taxes (note 4) | 49,673 | 155,508 | 55,101 | 49,673 | ||||||||||||
Other assets | 57,342 | 53,068 | 74,668 | 57,342 | ||||||||||||
Total assets | $ | 5,317,858 | $ | 7,032,137 | $ | 6,367,747 | $ | 5,317,858 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | ||||||||||||||||
Current installments of notes payable, long-term debt and long-term lease obligations (note 8) | $ | 197,575 | $ | 269,937 | $ | 167,566 | $ | 197,575 | ||||||||
Accounts payable | 1,938,009 | 2,218,969 | 2,741,719 | 1,938,009 | ||||||||||||
Accrued compensation and employee benefits | 208,562 | 230,608 | 196,865 | 208,562 | ||||||||||||
Other accrued expenses (notes 9, 10, 11 and 14) | 329,289 | 299,231 | ||||||||||||||
Other accrued expenses (notes 8, 9, 10 and 13) | 475,387 | 329,289 | ||||||||||||||
Income taxes payable | 11,831 | 25,897 | 19,236 | 11,831 | ||||||||||||
Deferred income taxes (note 4) | 660 | 2,998 | 4,401 | 660 | ||||||||||||
Total current liabilities | 2,685,926 | 3,047,640 | 3,605,174 | 2,685,926 | ||||||||||||
Notes payable, long-term debt and long-term lease obligations less current installments (note 8) | 1,036,873 | 1,099,473 | ||||||||||||||
Other liabilities (notes 9 and 10) | 70,124 | 71,442 | ||||||||||||||
Notes payable, long-term debt and long-term lease obligations less current installments (note 7) | 1,018,930 | 1,036,873 | ||||||||||||||
Other liabilities (notes 8 and 9) | 63,058 | 70,124 | ||||||||||||||
Income tax liability (note 4) | 78,348 | 81,044 | 86,351 | 78,348 | ||||||||||||
Deferred income taxes (note 4) | 4,178 | 9,409 | 1,462 | 4,178 | ||||||||||||
Total liabilities | 3,875,449 | 4,309,008 | 4,774,975 | 3,875,449 | ||||||||||||
Minority interest | 7,247 | 7,404 | ||||||||||||||
Commitments and contingencies (note 10) | ||||||||||||||||
Equity (note 11): | ||||||||||||||||
Jabil Circuit, Inc. stockholders’ equity: | ||||||||||||||||
Common stock, $.001 par value, authorized 500,000,000 shares; issued and outstanding 210,496,989 shares in 2010, and 208,022,841 shares in 2009 | 220 | 217 | ||||||||||||||
Additional paid-in capital | 1,541,507 | 1,455,214 | ||||||||||||||
Retained earnings (Accumulated deficit) | 123,303 | (13,700 | ) | |||||||||||||
Accumulated other comprehensive income | 122,062 | 196,972 | ||||||||||||||
Treasury stock at cost, 9,035,919 shares in 2010 and 8,683,917 shares in 2009 | (209,046 | ) | (203,541 | ) | ||||||||||||
Commitments and contingencies (note 11) | ||||||||||||||||
Stockholders’ equity (note 12): | ||||||||||||||||
Preferred stock, $.001 par value, authorized 10,000,000 shares; no shares issued and outstanding | — | — | ||||||||||||||
Common stock, $.001 par value, authorized 500,000,000 shares; issued and outstanding 208,022,841 shares in 2009, and 206,380,171 shares in 2008 | 217 | 215 | ||||||||||||||
Additional paid-in capital | 1,455,214 | 1,406,378 | ||||||||||||||
(Accumulated deficit) Retained earnings | (13,700 | ) | 1,210,417 | |||||||||||||
Accumulated other comprehensive income | 196,972 | 301,401 | ||||||||||||||
Treasury stock at cost, 8,683,917 in 2009 and 8,574,737 shares in 2008 | (203,541 | ) | (202,686 | ) | ||||||||||||
Total Jabil Circuit, Inc. stockholders’ equity | 1,578,046 | 1,435,162 | ||||||||||||||
Noncontrolling interests | 14,726 | 7,247 | ||||||||||||||
Total stockholders’ equity | 1,435,162 | 2,715,725 | ||||||||||||||
Total equity | 1,592,772 | 1,442,409 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,317,858 | $ | 7,032,137 | ||||||||||||
Total liabilities and equity | $ | 6,367,747 | $ | 5,317,858 | ||||||||||||
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Fiscal Year Ended August 31, | Fiscal Year Ended August 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net revenue (note 13) | $ | 11,684,538 | $ | 12,779,703 | $ | 12,290,592 | ||||||||||||||||||
Net revenue (note 12) | $ | 13,409,411 | $ | 11,684,538 | $ | 12,779,703 | ||||||||||||||||||
Cost of revenue | 10,965,723 | 11,911,902 | 11,478,562 | 12,405,267 | 10,965,723 | 11,911,902 | ||||||||||||||||||
Gross profit | 718,815 | 867,801 | 812,030 | 1,004,144 | 718,815 | 867,801 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 495,941 | 491,324 | 491,967 | 589,738 | 495,941 | 491,324 | ||||||||||||||||||
Research and development | 27,321 | 32,984 | 36,381 | 28,085 | 27,321 | 32,984 | ||||||||||||||||||
Amortization of intangibles (note 6) | 31,039 | 37,288 | 29,347 | 25,934 | 31,039 | 37,288 | ||||||||||||||||||
Restructuring and impairment charges (note 10) | 51,894 | 54,808 | 72,396 | |||||||||||||||||||||
Restructuring and impairment charges (note 9) | 8,217 | 51,894 | 54,808 | |||||||||||||||||||||
Goodwill impairment charges (note 6) | 1,022,821 | — | — | — | 1,022,821 | — | ||||||||||||||||||
Loss on disposal of subsidiaries (note 14) | 24,604 | — | — | |||||||||||||||||||||
Operating (loss) income | (910,201 | ) | 251,397 | 181,939 | ||||||||||||||||||||
Operating income (loss) | 327,566 | (910,201 | ) | 251,397 | ||||||||||||||||||||
Other expense | 20,111 | 11,902 | 15,888 | 4,087 | 20,111 | 11,902 | ||||||||||||||||||
Interest income | (7,426 | ) | (12,014 | ) | (14,531 | ) | (2,956 | ) | (7,426 | ) | (12,014 | ) | ||||||||||||
Interest expense | 82,247 | 94,316 | 86,069 | 79,168 | 82,247 | 94,316 | ||||||||||||||||||
(Loss) income before income taxes and minority interest | (1,005,133 | ) | 157,193 | 94,513 | ||||||||||||||||||||
Income (loss) before income tax | 247,267 | (1,005,133 | ) | 157,193 | ||||||||||||||||||||
Income tax expense (note 4) | 160,898 | 25,119 | 21,401 | 76,501 | 160,898 | 25,119 | ||||||||||||||||||
Minority interest, net of income tax benefit of $(5), $(95) and $0, respectively | (819 | ) | (1,818 | ) | (124 | ) | ||||||||||||||||||
Net (loss) income | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | |||||||||||||||||
Net income (loss) | 170,766 | (1,166,031 | ) | 132,074 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of income tax expense | 1,926 | (819 | ) | (1,818 | ) | |||||||||||||||||||
(Loss) earnings per share (note 1): | ||||||||||||||||||||||||
Net income (loss) attributable to Jabil Circuit, Inc. | $ | 168,840 | $ | (1,165,212 | ) | $ | 133,892 | |||||||||||||||||
Earnings (Loss) Per Share (note 1): | ||||||||||||||||||||||||
Income (loss) attributable to the stockholders of Jabil Circuit, Inc.: | ||||||||||||||||||||||||
Basic | $ | (5.63 | ) | $ | 0.65 | $ | 0.36 | $ | 0.79 | $ | (5.63 | ) | $ | 0.64 | ||||||||||
Diluted | $ | (5.63 | ) | $ | 0.65 | $ | 0.35 | $ | 0.78 | $ | (5.63 | ) | $ | 0.64 | ||||||||||
Common shares used in the calculations of (loss) earnings per share: | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||
Basic | 207,002 | 205,275 | 203,779 | 214,332 | 207,002 | 209,805 | ||||||||||||||||||
Diluted | 207,002 | 206,158 | 206,972 | 217,597 | 207,002 | 210,425 | ||||||||||||||||||
Cash dividends declared per common share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | ||||||||||||
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Fiscal Year Ended August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Net (loss) income | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | |||||
Other comprehensive (loss) income: | ||||||||||||
Foreign currency translation adjustment | (104,771 | ) | 140,986 | 70,350 | ||||||||
Change in fair market value of derivative instruments, net of tax | 143 | (17,017 | ) | (7,190 | ) | |||||||
Change in minimum pension liability, net of tax | — | — | (2,098 | ) | ||||||||
Net actuarial (loss) gains, net of tax | (3,738 | ) | 5,275 | — | ||||||||
Net prior service cost, net of tax | (13 | ) | (39 | ) | — | |||||||
Amortization of loss on hedge arrangements, net of tax | 3,950 | 1,236 | — | |||||||||
Comprehensive (loss) income | $ | (1,269,641 | ) | $ | 264,333 | $ | 134,298 | |||||
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net income (loss) | $ | 170,766 | $ | (1,166,031 | ) | $ | 132,074 | |||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustment | (70,293 | ) | (104,771 | ) | 140,986 | |||||||
Change in fair market value of derivative instruments, net of tax | (1,742 | ) | 143 | (17,017 | ) | |||||||
Actuarial gains (loss), net of tax | (7,751 | ) | (3,738 | ) | 5,275 | |||||||
Prior service cost, net of tax | 342 | (13 | ) | (39 | ) | |||||||
Amortization of loss on hedge arrangements, net of tax | 4,534 | 3,950 | 1,236 | |||||||||
Comprehensive income (loss) | $ | 95,856 | $ | (1,270,460 | ) | $ | 262,515 | |||||
Comprehensive income (loss) attributable to noncontrolling interests | 1,926 | (819 | ) | (1,818 | ) | |||||||
Comprehensive income (loss) attributable to Jabil Circuit, Inc | $ | 93,930 | $ | (1,269,641 | ) | $ | 264,333 | |||||
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Common Stock | Accumulated | Jabil Circuit, Inc. Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | (Accumulated | Other | Total | Retained | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Paid-in | Deficit)/Retained | Comprehensive | Treasury | Stockholders’ | Common Stock | Additional | Earnings/ | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | Value | Capital | Earnings | Income | Stock | Equity | Shares | Par | Paid-in | (Accumulated | Comprehensive | Treasury | Noncontrolling | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2006 | 202,931,356 | $ | 211 | $ | 1,265,382 | $ | 1,116,035 | $ | 113,104 | $ | (200,251 | ) | $ | 2,294,481 | ||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | Value | Capital | Deficit) | Income | Stock | Interests | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2007 | 204,574,679 | $ | 212 | $ | 1,340,687 | $ | 1,131,403 | $ | 170,960 | $ | (200,251 | ) | $ | 8,682 | $ | 2,451,693 | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of stock options | 860,328 | 1 | 12,751 | — | — | — | 12,752 | 652,300 | 2 | 5,928 | — | — | — | — | 5,930 | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan (note 12) | 623,770 | — | 12,360 | — | — | — | 12,360 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of share-based compensation awards in connection with business combination | — | — | 182 | — | — | — | 182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan | 824,498 | 1 | 10,546 | — | — | — | — | 10,547 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of share-based compensation awards in connection with business combination. | — | — | (140 | ) | — | — | — | — | (140 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and vesting of restricted stock awards | 159,225 | — | — | — | — | — | — | 484,731 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation (note 12) | — | — | 43,287 | — | — | — | 43,287 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock under employee stock plans | (156,037 | ) | — | — | — | — | (2,435 | ) | — | (2,435 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation (note 11) | — | — | 36,833 | — | — | — | — | 36,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit of options exercised | — | — | 6,725 | — | — | — | 6,725 | — | — | 12,524 | — | — | — | — | 12,524 | |||||||||||||||||||||||||||||||||||||||||||||
Declared dividends | — | — | — | (57,868 | ) | — | — | (57,868 | ) | — | — | — | (58,813 | ) | — | — | — | (58,813 | ) | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 73,236 | 61,062 | — | 134,298 | — | — | — | 133,892 | 130,441 | — | — | 264,333 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustment to initially adopt SFAS 158, net of tax | — | — | — | — | (3,206 | ) | — | (3,206 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2007 | 204,574,679 | $ | 212 | $ | 1,340,687 | $ | 1,131,403 | $ | 170,960 | $ | (200,251 | ) | $ | 2,443,011 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of stock options | 652,300 | 2 | 5,928 | — | — | — | 5,930 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan (note 12) | 824,498 | 1 | 10,546 | — | — | — | 10,547 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of share-based compensation awards in connection with business combination | — | — | (140 | ) | — | — | — | (140 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and vesting of restricted stock awards | 484,731 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock under employee stock plans | (156,037 | ) | — | — | — | — | (2,435 | ) | (2,435 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation (note 12) | — | — | 36,833 | — | — | — | 36,833 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit of options exercised | — | — | 12,524 | — | — | — | 12,524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Declared dividends (note 12) | — | — | — | (58,813 | ) | — | — | (58,813 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 133,892 | 130,441 | — | 264,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to initially adopt FIN 48 | — | — | — | 3,935 | — | — | 3,935 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of new income tax guidance | — | — | — | 3,935 | — | — | — | 3,935 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | (1,818 | ) | (1,818 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency adjustments attributable to noncontrolling interests | — | — | — | — | — | — | 540 | 540 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2008 | 206,380,171 | $ | 215 | $ | 1,406,378 | $ | 1,210,417 | $ | 301,401 | $ | (202,686 | ) | $ | 2,715,725 | 206,380,171 | $ | 215 | $ | 1,406,378 | $ | 1,210,417 | $ | 301,401 | $ | (202,686 | ) | $ | 7,404 | $ | 2,723,129 | ||||||||||||||||||||||||||||||
Shares issued upon exercise of stock options (note 12) | 1,160 | — | 66 | — | — | — | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan (note 12) | 1,248,314 | 1 | 7,353 | — | — | — | 7,354 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of share-based compensation awards in connection with business combination | — | — | 28 | — | — | — | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and vesting of restricted stock awards (note 12) | 502,376 | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of stock options | 1,160 | — | 66 | — | — | — | — | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan (note 11) | 1,248,314 | 1 | 7,353 | — | — | — | — | 7,354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of share-based compensation awards in connection with business combination. | — | — | 28 | — | — | — | — | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and vesting of restricted stock awards | 502,376 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock under employee stock plans | (109,180 | ) | — | — | — | — | (855 | ) | (855 | ) | (109,180 | ) | — | — | — | — | (855 | ) | — | (855 | ) | |||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation (note 12) | — | — | 42,249 | — | — | — | 42,249 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation (note 11) | — | — | 42,249 | — | — | — | — | 42,249 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit of options exercised | — | — | (860 | ) | — | — | — | (860 | ) | — | — | (860 | ) | — | — | — | — | (860 | ) | |||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle (note 9) | — | — | — | (836 | ) | — | (836 | ) | — | — | — | (836 | ) | — | — | (836 | ) | |||||||||||||||||||||||||||||||||||||||||||
Declared dividends (note 12) | — | — | — | (58,069 | ) | — | — | (58,069 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Declared dividends (note 11) | — | — | — | (58,069 | ) | — | — | — | (58,069 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) | — | — | — | (1,165,212 | ) | (104,429 | ) | — | (1,269,641 | ) | — | — | — | (1,165,212 | ) | (104,429 | ) | — | — | (1,269,641 | ) | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | — | (819 | ) | (819 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency adjustments attributable to noncontrolling interests | — | — | — | — | — | — | 662 | 662 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2009 | 208,022,841 | $ | 217 | $ | 1,455,214 | $ | (13,700 | ) | $ | 196,972 | $ | (203,541 | ) | $ | 1,435,162 | 208,022,841 | $ | 217 | $ | 1,455,214 | $ | (13,700 | ) | $ | 196,972 | $ | (203,541 | ) | $ | 7,247 | $ | 1,442,409 | ||||||||||||||||||||||||||||
Shares issued upon exercise of stock options (note 11) | 114,135 | 1 | 1,545 | — | — | — | — | 1,546 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under employee stock purchase plan (note 11) | 1,127,017 | 1 | 9,197 | — | — | — | — | 9,198 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance and vesting of restricted stock awards (note 11) | 1,584,964 | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock under employee stock plans | (351,968 | ) | — | — | — | — | (5,505 | ) | — | (5,505 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of stock-based compensation (note 11) | — | — | 104,783 | — | — | — | — | 104,783 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit of options exercised | — | — | 28 | — | — | — | — | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Declared dividends (note 11) | — | — | (29,260 | ) | (31,837 | ) | — | — | — | (61,097 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 168,840 | (74,910 | ) | — | — | 93,930 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution from noncontrolling interests | — | — | — | — | — | — | 5,386 | 5,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain attributable to noncontrolling interests | — | — | — | — | — | — | 1,926 | 1,926 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency adjustments attributable to noncontrolling interests | — | — | — | — | — | — | 167 | 167 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at August 31, 2010 | 210,496,989 | $ | 220 | $ | 1,541,507 | $ | 123,303 | $ | 122,062 | $ | (209,046 | ) | $ | 14,726 | $ | 1,592,772 | ||||||||||||||||||||||||||||||||||||||||||||
67
75
Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net (loss) income | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | |||||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||||||||||
Net income (loss) | $ | 170,766 | $ | (1,166,031 | ) | $ | 132,074 | |||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 291,997 | 276,311 | 239,702 | 283,284 | 291,997 | 276,311 | ||||||||||||||||||
Recognition of deferred grant proceeds | (82 | ) | (13 | ) | (13 | ) | (1,955 | ) | (82 | ) | (13 | ) | ||||||||||||
Amortization on loss of hedge arrangement | 3,950 | 2,034 | — | 3,950 | 3,950 | 2,034 | ||||||||||||||||||
Amortization of bond issuance costs and discount | 1,473 | 894 | 460 | 3,696 | 1,473 | 894 | ||||||||||||||||||
Loss on early extinguishment of debt | 10,522 | — | — | — | 10,522 | — | ||||||||||||||||||
Minority interest, net of tax | (819 | ) | (1,818 | ) | 43 | |||||||||||||||||||
Recognition of stock-based compensation | 44,026 | 36,404 | 43,287 | 104,609 | 44,026 | 36,404 | ||||||||||||||||||
Deferred income taxes | 102,375 | (68,245 | ) | (32,146 | ) | 2,331 | 102,375 | (68,245 | ) | |||||||||||||||
Non-cash restructuring charges | 51,894 | 54,810 | 72,396 | |||||||||||||||||||||
Non-cash goodwill impairment charges | 1,022,821 | — | — | |||||||||||||||||||||
Restructuring and impairment charges | 8,217 | 51,894 | 54,810 | |||||||||||||||||||||
Goodwill impairment charges | — | 1,022,821 | — | |||||||||||||||||||||
Provision (recovery) of allowance for doubtful accounts and notes receivables | 12,685 | (443 | ) | 7,956 | (880 | ) | 12,685 | (443 | ) | |||||||||||||||
Excess tax benefit (shortage) from options exercised | 921 | (12,524 | ) | (6,725 | ) | |||||||||||||||||||
(Gain)/loss on sale of property | (45 | ) | 1,883 | 1,461 | ||||||||||||||||||||
Excess tax (benefit) shortage from options exercised | (132 | ) | 921 | (12,524 | ) | |||||||||||||||||||
Loss (gain) on sale of property | 4,809 | (45 | ) | 1,883 | ||||||||||||||||||||
Loss on disposal of subsidiaries | 18,671 | — | — | |||||||||||||||||||||
Change in operating assets and liabilities, exclusive of net assets acquired: | ||||||||||||||||||||||||
Trade accounts receivable | 169,741 | (60,788 | ) | 126,017 | (247,133 | ) | 169,741 | (60,788 | ) | |||||||||||||||
Inventories | 283,816 | (27,602 | ) | 201,546 | (969,348 | ) | 283,816 | (27,602 | ) | |||||||||||||||
Prepaid expenses and other current assets | 40,950 | (45,541 | ) | (82,793 | ) | (143,639 | ) | 40,950 | (45,541 | ) | ||||||||||||||
Other assets | (7,604 | ) | (42,185 | ) | 7,486 | 448 | (7,604 | ) | (42,185 | ) | ||||||||||||||
Accounts payable and accrued expenses | (292,671 | ) | 120,891 | (482,909 | ) | 1,172,770 | (292,671 | ) | 120,891 | |||||||||||||||
Income taxes payable | (13,429 | ) | 52,042 | 14,885 | 16,946 | (13,429 | ) | 52,042 | ||||||||||||||||
Net cash provided by operating activities | 557,309 | 420,002 | 183,889 | 427,410 | 557,309 | 420,002 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Notes receivable from sale | (24,972 | ) | — | — | ||||||||||||||||||||
Proceeds from disposal of subsidiaries, net of cash | (27,140 | ) | — | — | ||||||||||||||||||||
Cash paid for business and intangible asset acquisitions, net of cash acquired | (4,176 | ) | (58,243 | ) | (771,898 | ) | — | (4,176 | ) | (58,243 | ) | |||||||||||||
Acquisition of property, plant and equipment | (292,238 | ) | (337,502 | ) | (302,190 | ) | (398,425 | ) | (292,238 | ) | (337,502 | ) | ||||||||||||
Proceeds from sale of property, plant and equipment | 10,239 | 11,025 | 19,666 | 10,280 | 10,239 | 11,025 | ||||||||||||||||||
Net cash used in investing activities | (286,175 | ) | (384,720 | ) | (1,054,422 | ) | (440,257 | ) | (286,175 | ) | (384,720 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings under debt agreements | 4,301,474 | 4,550,460 | 4,448,585 | 4,391,479 | 4,301,474 | 4,550,460 | ||||||||||||||||||
Payments toward debt agreements and capital lease obligations | (4,427,081 | ) | (4,427,688 | ) | (3,707,678 | ) | (4,440,914 | ) | (4,427,081 | ) | (4,427,688 | ) | ||||||||||||
Dividends paid to stockholders | (59,583 | ) | (58,634 | ) | (57,604 | ) | (59,869 | ) | (59,583 | ) | (58,634 | ) | ||||||||||||
Financing related costs | (9,300 | ) | — | — | — | (9,300 | ) | — | ||||||||||||||||
Bond issuance costs | (7,067 | ) | (5,702 | ) | — | — | (7,067 | ) | (5,702 | ) | ||||||||||||||
Net proceeds from issuance of common stock under option and employee purchase plans | 7,420 | 16,475 | 25,112 | |||||||||||||||||||||
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 10,744 | 7,420 | 16,475 | |||||||||||||||||||||
Treasury stock minimum tax withholding | (855 | ) | (2,435 | ) | — | (5,505 | ) | (855 | ) | (2,435 | ) | |||||||||||||
Net proceeds from issuance of ordinary shares of certain subsidiaries | 586 | — | — | |||||||||||||||||||||
Bank overdraft of subsidiary | 3,067 | — | — | |||||||||||||||||||||
Excess tax benefit (shortage) of options exercised | (921 | ) | 12,524 | 6,725 | 132 | (921 | ) | 12,524 | ||||||||||||||||
Net cash (used in) provided by financing activities | (195,913 | ) | 85,000 | 715,140 | (100,280 | ) | (195,913 | ) | 85,000 | |||||||||||||||
Effect of exchange rate changes on cash | 28,128 | (10,984 | ) | 45,455 | (18,816 | ) | 28,128 | (10,984 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 103,349 | 109,298 | (109,938 | ) | ||||||||||||||||||||
Cash and cash equivalents at beginning of period | 772,923 | 663,625 | 773,563 | |||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (131,943 | ) | 103,349 | 109,298 | ||||||||||||||||||||
Cash and cash equivalents at beginning of fiscal year | 876,272 | 772,923 | 663,625 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 876,272 | $ | 772,923 | $ | 663,625 | ||||||||||||||||||
Cash and cash equivalents at end of fiscal year | $ | 744,329 | $ | 876,272 | $ | 772,923 | ||||||||||||||||||
Supplemental disclosure information: | ||||||||||||||||||||||||
Interest paid, net of capitalized interest | $ | 81,641 | $ | 84,687 | $ | 96,892 | $ | 73,423 | $ | 81,641 | $ | 84,687 | ||||||||||||
Income taxes paid, net of refunds received | $ | 73,302 | $ | 42,801 | $ | 31,458 | $ | 57,656 | $ | 73,302 | $ | 42,801 | ||||||||||||
68
76
1. | Description of Business and Summary of Significant Accounting Policies |
a. | Principles of Consolidation and Basis of Presentation |
b. | Use of Accounting Estimates |
c. | Cash and Cash Equivalents |
d. | Inventories |
77
e. | Property, Plant and Equipment, net |
Asset Class | Estimated Useful Life | |
Buildings | 35 years | |
Leasehold improvements | Shorter of lease term or useful life of the improvement | |
Machinery and equipment | 5 to 10 years | |
Furniture, fixtures and office equipment | 5 years | |
Computer hardware and software | 3 to 7 years | |
Transportation equipment | 3 years |
69
f. | Goodwill and Other Intangible Assets |
g. | Impairment of Long-lived Assets |
h. | Revenue Recognition |
78
i. | Accounts Receivable |
j. | Income Taxes |
70
k. | Earnings (Loss) Per Share |
Fiscal Year Ended August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Numerator: | ||||||||||||
Net (loss) income | $ | (1,165,212 | ) | $ | 133,892 | $ | 73,236 | |||||
Denominator: | ||||||||||||
Weighted-average common shares outstanding – basic | 207,002 | 205,275 | 203,779 | |||||||||
Dilutive common shares issuable upon exercise of stock options, exercise of stock appreciation rights and employee stock plan purchases | — | 619 | 2,170 | |||||||||
Dilutive unvested common shares associated with restricted stock awards | — | 264 | 1,023 | |||||||||
Weighted-average shares outstanding – diluted | 207,002 | 206,158 | 206,972 | |||||||||
(Loss) earnings per common share: | ||||||||||||
Basic | $ | (5.63 | ) | $ | 0.65 | $ | 0.36 | |||||
Diluted | $ | (5.63 | ) | $ | 0.65 | $ | 0.35 | |||||
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) attributable to Jabil Circuit, Inc | $ | 168,840 | $ | (1,165,212 | ) | $ | 133,892 | |||||
Denominator for basic and diluted earnings (loss) per share: | ||||||||||||
Weighted-average common shares outstanding | 209,418 | 207,002 | 205,275 | |||||||||
Share-based payment awards classified as participating securities | 4,914 | — | 4,530 | |||||||||
Denominator for basic earnings (loss) per share | 214,332 | 207,002 | 209,805 | |||||||||
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights | 215 | — | 620 | |||||||||
Dilutive unvested non-participating restricted stock awards | 3,050 | — | — | |||||||||
Denominator for diluted earnings (loss) per share | 217,597 | 207,002 | 210,425 | |||||||||
Earnings (loss) per common share: | ||||||||||||
Basic | $ | 0.79 | $ | (5.63 | ) | $ | 0.64 | |||||
Diluted | $ | 0.78 | $ | (5.63 | ) | $ | 0.64 | |||||
79
l. | Foreign Currency Transactions |
m. | Fair Value of Financial Instruments |
71
n. | Stock-Based Compensation |
80
o. | Comprehensive Income (Loss) |
August 31, | ||||||||
2009 | 2008 | |||||||
Foreign currency translation adjustment | $ | 238,706 | $ | 343,477 | ||||
Actuarial loss, net of tax | (22,647 | ) | (18,909 | ) | ||||
Prior service cost, net of tax | (209 | ) | (196 | ) | ||||
Cash flow hedge mark to market adjustment, net of tax | (24,064 | ) | (24,207 | ) | ||||
Amortization of loss on hedge arrangements, net of tax | 5,186 | 1,236 | ||||||
$ | 196,972 | $ | 301,401 | |||||
72
August 31, | ||||||||
2010 | 2009 | |||||||
Foreign currency translation adjustment | $ | 168,413 | $ | 238,706 | ||||
Fair market value of derivative instruments, net of tax | (25,806 | ) | (24,064 | ) | ||||
Amortization of loss on hedge arrangements, net of tax | 9,720 | 5,186 | ||||||
Actuarial loss, net of tax | (30,398 | ) | (22,647 | ) | ||||
Prior service cost, net of tax | 133 | (209 | ) | |||||
$ | 122,062 | $ | 196,972 | |||||
p. | Derivative Instruments |
2. | Trade Accounts Receivable Securitization and Sale Programs |
a. | Asset-Backed Securitization Program |
81
73
b. | Foreign Asset-Backed Securitization Program |
82
c. | Trade Accounts Receivable Factoring Agreements |
d. | Trade Accounts Receivable Sale Programs |
83
3. | Inventories |
August 31, | ||||||||
2009 | 2008 | |||||||
Raw materials | $ | 878,739 | $ | 1,070,163 | ||||
Work in process | 208,266 | 277,699 | ||||||
Finished goods | 139,651 | 181,000 | ||||||
$ | 1,226,656 | $ | 1,528,862 | |||||
74
August 31, 2010 2009 Raw materials $ 1,509,886 $ 878,739 Work in process 390,069 208,266 Finished goods 194,180 139,651 $ 2,094,135 $ 1,226,656
4. | Income Taxes |
Fiscal Year Ended August 31, | Fiscal Year Ended August 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Computed “expected” tax (benefit) expense | $ | (351,797 | ) | $ | 55,018 | $ | 33,080 | |||||||||||||||||
Computed “expected” tax expense (benefit) | $ | 86,543 | $ | (351,797 | ) | $ | 55,018 | |||||||||||||||||
State taxes, net of federal benefit | (7,134 | ) | 863 | (101 | ) | (1,557 | ) | (7,134 | ) | 863 | ||||||||||||||
Federal effect of state net operating losses and tax credits | 454 | 88 | (219 | ) | 215 | 454 | 88 | |||||||||||||||||
Impact of foreign tax rates | 71,856 | (58,756 | ) | (40,869 | ) | (63,450 | ) | 64,637 | (58,756 | ) | ||||||||||||||
Permanent impact of non-deductible cost | 12,214 | 18,205 | 10,482 | 9,116 | 12,214 | 18,205 | ||||||||||||||||||
Income tax credits | 202 | (6,466 | ) | (4,980 | ) | (7,863 | ) | 39 | (6,466 | ) | ||||||||||||||
Changes in tax rates on deferred tax assets and liabilities | 24,123 | 1,521 | (1,286 | ) | 5,020 | 24,123 | 1,521 | |||||||||||||||||
Valuation allowance | 307,938 | 3,673 | 1,144 | 19,474 | 307,938 | 3,673 | ||||||||||||||||||
Equity compensation | 7,501 | 6,168 | 5,786 | 9,317 | 7,501 | 6,168 | ||||||||||||||||||
Impact of intercompany charges | 11,706 | 8,281 | 16,986 | 25,748 | 19,271 | 9,290 | ||||||||||||||||||
Non-taxable income | (800 | ) | (7,797 | ) | (277 | ) | (179 | ) | (800 | ) | (7,797 | ) | ||||||||||||
Permanent impact of non-deductible goodwill | 94,562 | — | — | — | 94,562 | — | ||||||||||||||||||
Other, net | (9,927 | ) | 4,321 | 1,655 | (5,883 | ) | (10,110 | ) | 3,312 | |||||||||||||||
Provision for income taxes | $ | 160,898 | $ | 25,119 | $ | 21,401 | $ | 76,501 | $ | 160,898 | $ | 25,119 | ||||||||||||
Effective tax rate | (16.0 | )% | 16.0 | % | 22.6 | % | 30.9 | % | (16.0 | )% | 16.0 | % | ||||||||||||
Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
U.S. | $ | (330,043 | ) | $ | (14,322 | ) | $ | (41,929 | ) | $ | (115,657 | ) | $ | (330,043 | ) | $ | (14,322 | ) | ||||||
Foreign | (675,090 | ) | 171,515 | 136,442 | 362,924 | (675,090 | ) | 171,515 | ||||||||||||||||
$ | (1,005,133 | ) | $ | 157,193 | $ | 94,513 | $ | 247,267 | $ | (1,005,133 | ) | $ | 157,193 | |||||||||||
84
Fiscal Year Ended August 31, | Current | Deferred | Total | |||||||||
2009: U.S. – Federal | $ | (1,439 | ) | $ | 71,438 | $ | 69,999 | |||||
U.S. – State | 453 | 14,310 | 14,763 | |||||||||
Foreign | 59,509 | 16,627 | 76,136 | |||||||||
$ | 58,523 | $ | 102,375 | $ | 160,898 | |||||||
2008: U.S. – Federal | $ | 23,029 | $ | (12,747 | ) | $ | 10,282 | |||||
U.S. – State | 2,537 | (917 | ) | 1,620 | ||||||||
Foreign | 66,625 | (53,408 | ) | 13,217 | ||||||||
$ | 92,191 | $ | (67,072 | ) | $ | 25,119 | ||||||
2007: U.S. – Federal | $ | 10,552 | $ | (9,980 | ) | $ | 572 | |||||
U.S. – State | 2,988 | (1,781 | ) | 1,207 | ||||||||
Foreign | 38,948 | (19,326 | ) | 19,622 | ||||||||
$ | 52,488 | $ | (31,087 | ) | $ | 21,401 | ||||||
Fiscal Year Ended August 31, | Current | Deferred | Total | |||||||||
2010: U.S. — Federal | $ | 5,845 | $ | (2,273 | ) | $ | 3,572 | |||||
U.S. — State | 2,040 | 97 | 2,137 | |||||||||
Foreign | 66,285 | 4,507 | 70,792 | |||||||||
$ | 74,170 | $ | 2,331 | $ | 76,501 | |||||||
2009: U.S. — Federal | $ | (1,439 | ) | $ | 71,438 | $ | 69,999 | |||||
U.S. — State | 453 | 14,310 | 14,763 | |||||||||
Foreign | 59,509 | 16,627 | 76,136 | |||||||||
$ | 58,523 | $ | 102,375 | $ | 160,898 | |||||||
2008: U.S. — Federal | $ | 23,029 | $ | (12,747 | ) | $ | 10,282 | |||||
U.S. — State | 2,537 | (917 | ) | 1,620 | ||||||||
Foreign | 66,625 | (53,408 | ) | 13,217 | ||||||||
$ | 92,191 | $ | (67,072 | ) | $ | 25,119 | ||||||
75
85
Fiscal Year Ended | ||||||||||||||||
Fiscal Year Ended | August 31, | |||||||||||||||
August 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | |||||||||||||||
Deferred tax assets: | ||||||||||||||||
Net operating loss carry forward | $ | 223,489 | $ | 199,596 | $ | 193,865 | $ | 223,489 | ||||||||
Trade accounts receivable, principally due to allowance for doubtful accounts | 8,652 | 3,086 | 8,265 | 8,652 | ||||||||||||
Grant receivable | 69 | 73 | ||||||||||||||
Inventories, principally due to reserves and additional costs inventoried for tax purposes pursuant to the Tax Reform Act of 1986 | 7,231 | 8,888 | 2,743 | 7,231 | ||||||||||||
Compensated absences, principally due to accrual for financial reporting purposes | 5,807 | 6,191 | 6,463 | 5,807 | ||||||||||||
Accrued expenses, principally due to accrual for financial reporting purposes | 56,981 | 31,680 | 34,269 | 56,981 | ||||||||||||
Property, plant and equipment, principally due to differences in depreciation and amortization | 37,538 | 27,842 | 21,765 | 37,538 | ||||||||||||
Foreign currency gains and losses | — | 453 | ||||||||||||||
Foreign tax credits | 8,744 | 18,820 | 9,737 | 8,744 | ||||||||||||
Equity compensation – U.S. | 34,568 | 36,182 | ||||||||||||||
Equity compensation – Foreign | 5,096 | 5,171 | ||||||||||||||
Equity compensation — U.S. | 60,394 | 34,568 | ||||||||||||||
Equity compensation — Foreign | 6,884 | 5,096 | ||||||||||||||
Cash flow hedges | 13,362 | 14,810 | 11,713 | 13,362 | ||||||||||||
Intangible assets | 91,682 | — | 88,608 | 91,682 | ||||||||||||
Other | 21,080 | 12,114 | 15,196 | 21,149 | ||||||||||||
Total gross deferred tax assets | 514,299 | 364,906 | 459,902 | 514,299 | ||||||||||||
Less valuation allowance | (433,781 | ) | (121,008 | ) | (375,301 | ) | (433,781 | ) | ||||||||
Net deferred tax assets | $ | 80,518 | $ | 243,898 | $ | 84,601 | $ | 80,518 | ||||||||
Deferred tax liabilities: | ||||||||||||||||
Intangible assets | — | 51,270 | ||||||||||||||
Foreign currency gains and losses | 257 | — | — | 257 | ||||||||||||
Other | 7,733 | 5,310 | 12,853 | 7,733 | ||||||||||||
Deferred tax liabilities | $ | 7,990 | $ | 56,580 | $ | 12,853 | $ | 7,990 | ||||||||
76
86
Amount | Amount | |||||||
Balance at August 31, 2008 | $ | 75,178 | ||||||
Balance at August 31, 2009 | $ | 79,576 | ||||||
Additions for tax positions of prior years | 11,201 | 4,931 | ||||||
Reductions for tax positions of prior years | (10,729 | ) | (11,669 | ) | ||||
Additions for tax positions related to current year | 11,936 | 18,249 | ||||||
Addition for tax positions related to acquired entities in prior years, offset to goodwill and deferred tax attributes | 368 | |||||||
Cash settlements | (258 | ) | (3,103 | ) | ||||
Reductions from lapses in statutes of limitations | (1,609 | ) | (4,184 | ) | ||||
Reductions from settlements with taxing authorities | (6,421 | ) | (4,450 | ) | ||||
Foreign exchange rate adjustment | (90 | ) | (1,210 | ) | ||||
Balance at August 31, 2009 | $ | 79,576 | ||||||
Balance at August 31, 2010 | $ | 78,140 | ||||||
87
5. | Property, Plant and Equipment |
August 31, | ||||||||
2009 | 2008 | |||||||
Land and improvements | $ | 103,202 | $ | 92,450 | ||||
Buildings | 592,397 | 551,605 | ||||||
Leasehold improvements | 122,245 | 107,302 | ||||||
Machinery and equipment | 1,241,506 | 1,204,636 | ||||||
Furniture, fixtures and office equipment | 92,840 | 84,042 | ||||||
Computer hardware and software | 337,305 | 296,383 | ||||||
Transportation equipment | 8,457 | 7,724 |
77
August 31, 2010 2009 Land and improvements $ 98,826 $ 103,202 Buildings 571,887 592,397 Leasehold improvements 124,509 122,245 Machinery and equipment 1,365,450 1,241,506 Furniture, fixtures and office equipment 93,049 92,840 Computer hardware and software 355,641 337,305 Transportation equipment 8,244 8,457 Construction in progress 593 11,542 2,618,199 2,509,494 Less accumulated depreciation and amortization 1,166,807 1,131,765 $ 1,451,392 $ 1,377,729
August 31, | ||||||||
2009 | 2008 | |||||||
Construction in progress | 11,542 | 128,056 | ||||||
2,509,494 | 2,472,198 | |||||||
Less accumulated depreciation and amortization | 1,131,765 | 1,079,719 | ||||||
$ | 1,377,729 | $ | 1,392,479 | |||||
6. | Goodwill and Other Intangible Assets |
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August 31, 2009 | August 31, 2010 | |||||||||||||||||||||||||||
Accumulated | Foreign | Accumulated | ||||||||||||||||||||||||||
Gross | Impairment | Currency | Gross | Impairment | ||||||||||||||||||||||||
Reportable Segment | Balance | Balance | Acquisitions | Impact | Balance | Balance | Net Balance | |||||||||||||||||||||
EMS | $ | 622,414 | $ | (622,414 | ) | $ | 3,800 | $ | — | $ | 626,214 | $ | (622,414 | ) | $ | 3,800 | ||||||||||||
Consumer | 400,407 | (400,407 | ) | — | — | 400,407 | (400,407 | ) | — | |||||||||||||||||||
AMS | 25,120 | — | — | (465 | ) | 24,655 | — | 24,655 | ||||||||||||||||||||
Total | $ | 1,047,941 | $ | (1,022,821 | ) | $ | 3,800 | $ | (465 | ) | $ | 1,051,276 | $ | (1,022,821 | ) | $ | 28,455 | |||||||||||
August 31, 2008 | August 31, 2009 | |||||||||||||||||||||||||||||||
Accumulated | Foreign | Accumulated | ||||||||||||||||||||||||||||||
Gross | Impairment | Currency | Impairment | Gross | Impairment | |||||||||||||||||||||||||||
Reportable Segment | Balance | Balance | Adjustments | Impact | Charge | Balance | Balance | Net Balance | ||||||||||||||||||||||||
EMS | $ | 671,616 | $ | — | $ | (302 | ) | $ | (48,900 | ) | $ | (622,414 | ) | $ | 622,414 | $ | (622,414 | ) | $ | — | ||||||||||||
Consumer | 423,059 | — | 414 | (23,066 | ) | (400,407 | ) | 400,407 | (400,407 | ) | — | |||||||||||||||||||||
AMS | 24,435 | — | 1,385 | (700 | ) | — | 25,120 | — | 25,120 | |||||||||||||||||||||||
Total | $ | 1,119,110 | $ | — | $ | 1,497 | $ | (72,666 | ) | $ | (1,022,821 | ) | $ | 1,047,941 | $ | (1,022,821 | ) | $ | 25,120 | |||||||||||||
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Balance at | Foreign | Impairment | Balance at | |||||||||||||||||
Reportable Segment | August 31, 2008 | Adjustments | Currency Impact | Charges | August 31, 2009 | |||||||||||||||
Consumer | $ | 423,059 | $ | 414 | $ | (23,066 | ) | (400,407 | ) | $ | — | |||||||||
EMS | 671,616 | (302 | ) | (48,900 | ) | (622,414 | ) | — | ||||||||||||
AMS | 24,435 | 1,385 | (700 | ) | — | 25,120 | ||||||||||||||
Total | $ | 1,119,110 | $ | 1,497 | $ | (72,666 | ) | (1,022,821 | ) | $ | 25,120 | |||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||
August 31, 2009 | Amount | Amortization | Amount | |||||||||||||||||||||
Contractual agreements & customer relationships | $ | 99,583 | $ | (46,313 | ) | $ | 53,270 | |||||||||||||||||
August 31, 2010 | Amount | Amortization | Amount | |||||||||||||||||||||
Contractual agreements and customer relationships | $ | 83,746 | $ | (43,698 | ) | $ | 40,048 | |||||||||||||||||
Intellectual property | 83,729 | (52,459 | ) | 31,270 | 85,166 | (68,989 | ) | 16,177 | ||||||||||||||||
Trade names | 46,628 | — | 46,628 | 47,888 | — | 47,888 | ||||||||||||||||||
Total | $ | 229,940 | $ | (98,772 | ) | $ | 131,168 | $ | 216,800 | $ | (112,687 | ) | $ | 104,113 | ||||||||||
Gross | Net | |||||||||||
Carrying | Accumulated | Carrying | ||||||||||
August 31, 2008 | Amount | Amortization | Amount | |||||||||
Contractual agreements & customer relationships | $ | 121,855 | $ | (53,636 | ) | $ | 68,219 | |||||
Intellectual property | 89,576 | (33,606 | ) | 55,970 | ||||||||
Trade names | 48,646 | — | 48,646 | |||||||||
Total | $ | 260,077 | $ | (87,242 | ) | $ | 172,835 | |||||
Gross | Net | |||||||||||
Carrying | Accumulated | Carrying | ||||||||||
August 31, 2009 | Amount | Amortization | Amount | |||||||||
Contractual agreements and customer relationships | $ | 99,583 | $ | (46,313 | ) | $ | 53,270 | |||||
Intellectual property | 83,729 | (52,459 | ) | 31,270 | ||||||||
Trade names | 46,628 | — | 46,628 | |||||||||
Total | $ | 229,940 | $ | (98,772 | ) | $ | 131,168 | |||||
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Fiscal Year Ending August 31, | Amount | Amount | ||||||
2010 | $ | 25,718 | ||||||
2011 | 21,869 | $ | 20,912 | |||||
2012 | 13,965 | 12,779 | ||||||
2013 | 8,951 | 8,697 | ||||||
2014 | 7,668 | 7,596 | ||||||
2015 | 4,741 | |||||||
Thereafter | 6,369 | 1,500 | ||||||
Total | $ | 84,540 | $ | 56,225 | ||||
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7. | Notes Payable, Long-Term Debt and Long-Term Lease Obligations |
August 31, | August 31, | |||||||
2009 | 2008 | |||||||
5.875% Senior Notes due 2010 (a) | $ | 5,064 | $ | 298,198 | ||||
7.750% Senior Notes due 2016 (b) | 300,063 | |||||||
8.250% Senior Notes due 2018 (c) | 396,758 | 396,377 | ||||||
Short-term factoring debt (d) | 1,468 | 617 | ||||||
Borrowings under credit facilities (e) | 21,313 | 55,579 | ||||||
Borrowings under loans (f) | 384,485 | 447,647 | ||||||
Securitization program obligations (g) | 125,291 | 170,975 | ||||||
Miscellaneous borrowings | 6 | 17 | ||||||
Total notes payable, long-term debt and long-term lease obligations | $ | 1,234,448 | $ | 1,369,410 | ||||
Less current installments of notes payable, long-term debt and long-term lease obligations | 197,575 | 269,937 | ||||||
Notes payable, long-term debt and long-term lease obligations, less current installments | $ | 1,036,873 | $ | 1,099,473 | ||||
August 31, | August 31, | |||||||
2010 | 2009 | |||||||
5.875% Senior Notes due 2010(a) | $ | — | $ | 5,064 | ||||
7.750% Senior Notes due 2016(b) | 301,782 | 300,063 | ||||||
8.250% Senior Notes due 2018(c) | 397,140 | 396,758 | ||||||
Short-term factoring debt(d) | — | 1,468 | ||||||
Borrowings under credit facilities(e) | 73,750 | 21,313 | ||||||
Borrowings under loans(f) | 342,380 | 384,485 | ||||||
Securitization program obligations(g) | 71,436 | 125,291 | ||||||
Miscellaneous borrowings | 8 | 6 | ||||||
Total notes payable, long-term debt and long-term lease obligations | $ | 1,186,496 | $ | 1,234,448 | ||||
Less current installments of notes payable, long-term debt and long-term lease obligations | 167,566 | 197,575 | ||||||
Notes payable, long-term debt and long-term lease obligations, less current installments | $ | 1,018,930 | $ | 1,036,873 | ||||
The $400.0 million of 8.250% Senior Notes and $312.0 million of 7.750% Senior Notes outstanding are carried at cost. The estimated fair value of these senior debentures was approximately $434.0 million and $335.4 million at August 31, 2010, respectively. The estimated fair value of these senior debentures was approximately $395.0 million and $306.5 million at August 31, 2009, respectively. The fair value is based upon non-binding market quotes that are corroborated by observable market data (Level 2 criteria). | ||
(a) | During the fourth quarter of fiscal year 2003, the Company issued a total of $300.0 million, seven-year, publicly-registered 5.875% Senior Notes (the “5.875% Senior Notes”) at 99.803% of par, resulting in net proceeds of approximately $297.2 million. |
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The 5.875% Senior Notes matured on July 15, 2010, and, at that time, the outstanding balance was fully paid. | ||
(b) | During the fourth quarter of fiscal year 2009, the Company | |
(c) | During the second and third quarters of fiscal year 2008, the Company |
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the Company completed an exchange whereby all of the outstanding unregistered 8.250% Notes were exchanged for registered 8.250% Notes (collectively the “8.250% Senior Notes”) that are substantially identical to the unregistered notes except that the 8.250% Senior Notes are registered under the Securities Act and do not have any transfer restrictions, registration rights or rights to additional special interest. | ||
The 8.250% Senior Notes | ||
The Company is subject to | ||
During the fourth quarter of fiscal year 2007, the Company entered into forward interest rate swap transactions to hedge the fixed interest rate payments for an anticipated debt issuance. The swaps were accounted for as a cash flow | ||
(d) | During the fourth quarter of fiscal year 2007 and the fourth quarter of fiscal year 2009, the Company entered into separate agreements with |
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(e) | ||
(f) | During the third quarter of fiscal year 2005, the Company negotiated a five-year, 400.0 million Indian rupee construction loan for an Indian subsidiary with an Indian branch of a global bank. Under the terms of the loan, the Company pays interest on outstanding borrowings based on a fixed rate of 7.45%. The construction loan |
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During the third quarter of fiscal year 2005, the Company negotiated a five-year, 25.0 million Euro construction loan for a Hungarian subsidiary with a Hungarian branch of a global bank. Under the terms of the loan facility, the Company pays interest on outstanding borrowings based on the Euro Interbank Offered Rate plus a spread of 0.925%. Quarterly principal repayments began in September 2006 to repay the amount of proceeds drawn under the construction loan. The construction loan | ||
During the second quarter of fiscal year 2007, the Company entered into a three-year loan agreement to borrow $20.3 million from a software vendor in connection with various software licenses that the Company purchased from | ||
Through the acquisition of a Taiwanese subsidiary in fiscal year 2007, the Company assumed certain liabilities, including short and | ||
During the fourth quarter of fiscal year 2007, the Company entered into the five-year Credit Facility. This agreement provides for a revolving credit portion in the initial amount of $800.0 million, subject to potential increases up to $1.0 billion, and provides for a term portion in the amount of $400.0 million. Some or all of the lenders under the Credit Facility and their affiliates have various other relationships with the Company and its subsidiaries involving the provision of financial services, including cash management, loans, letter of credit and bank guarantee facilities, investment banking and trust services. The Company, along with some of its subsidiaries, has entered into foreign exchange contracts and other derivative arrangements with certain of the lenders and their affiliates. In addition, many, if not most, of the agents and lenders under the Credit Facility held positions as agent and/or lender under the Company’s old revolving credit facility and the |
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Company borrowed $3 .9 billion against the revolving credit portion of the Credit Facility. These borrowings were repaid in full during fiscal year | ||
In addition to the loans described above, at August 31, | ||
(g) |
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Fiscal Year Ending August 31, | Amount | Amount | ||||||
2010 | $ | 197,575 | ||||||
2011 | 20,051 | $ | 167,566 | |||||
2012 | 320,000 | 320,007 | ||||||
2013 | — | 1 | ||||||
2014 | — | 0 | ||||||
2015 | 0 | |||||||
Thereafter | 696,822 | 698,922 | ||||||
Total | $ | 1,234,448 | $ | 1,186,496 | ||||
8. | Postretirement and Other Employee Benefits |
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a. | Benefit Obligations |
Pension Benefits | ||||||||
2009 | 2008 | |||||||
Beginning benefit obligation | $ | 135,190 | $ | 153,193 | ||||
Service cost | 1,759 | 2,214 | ||||||
Interest cost | 6,779 | 7,749 | ||||||
Impact of the change in measurement date | 820 | — | ||||||
Actuarial loss (gain) | 3,636 | (10,994 | ) | |||||
Curtailment gain | (5,456 | ) | (2,199 | ) | ||||
Total benefits paid | (6,573 | ) | (8,378 | ) | ||||
Plan participant contribution | 83 | 101 | ||||||
Effect of conversion to U.S. dollars | (6,635 | ) | (6,496 | ) | ||||
Ending benefit obligation | $ | 129,603 | $ | 135,190 | ||||
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Pension Benefits | ||||||||
2010 | 2009 | |||||||
Beginning benefit obligation | $ | 129,603 | $ | 135,190 | ||||
Service cost | 1,389 | 1,759 | ||||||
Interest cost | 5,681 | 6,779 | ||||||
Impact of the change in measurement date | — | 820 | ||||||
Actuarial loss | 12,791 | 3,636 | ||||||
Curtailment gain | — | (5,456 | ) | |||||
Total benefits paid | (4,410 | ) | (6,573 | ) | ||||
Plan participant contribution | 66 | 83 | ||||||
Amendments | 242 | — | ||||||
Acquisitions/disposals | (6,149 | ) | — | |||||
Effect of conversion to U.S. dollars | (5,530 | ) | (6,635 | ) | ||||
Ending benefit obligation | $ | 133,683 | $ | 129,603 | ||||
Pension Benefits | ||||||||||||||||
Pension Benefits | 2010 | 2009 | ||||||||||||||
2009 | 2008 | |||||||||||||||
Discount rate | 5.7 | % | 5.8 | % | 4.1 | % | 5.7 | % | ||||||||
Rate of compensation increases | 4.5 | % | 4.6 | % | 3.9 | % | 4.5 | % |
b. | Plan Assets |
Pension Benefits | ||||||||
2009 | 2008 | |||||||
Beginning fair value of plan assets | $ | 85,526 | $ | 92,261 | ||||
Actual return on plan assets | 3,871 | (41 | ) | |||||
Employer contributions | 4,856 | 5,212 | ||||||
Benefits paid from plan assets | (4,729 | ) | (4,430 | ) | ||||
Plan participants’ contributions | 83 | 101 | ||||||
Effect of conversion to U.S. dollars | (8,113 | ) | (7,577 | ) | ||||
Ending fair value of plan assets | $ | 81,494 | $ | 85,526 | ||||
Pension Plan Assets | ||||||||
2009 | 2008 | |||||||
Asset Category | ||||||||
Equity securities | 28 | % | 31 | % | ||||
Debt securities | 72 | % | 69 | % | ||||
Total | 100 | % | 100 | % | ||||
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Fair Value at | Fair Value Measurements Using Inputs Considered as: | |||||||||||||||||||
August 31, 2010 | Asset Allocation | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Asset Category | ||||||||||||||||||||
Cash and cash equivalents | $ | 3,663 | 5 | % | $ | 3,663 | — | — | ||||||||||||
Equity Securities: | ||||||||||||||||||||
U.K. equity securities(a) | $ | 10,671 | 12 | % | — | $ | 10,671 | — | ||||||||||||
Global equity securities(b) | $ | 10,400 | 12 | % | — | $ | 10,400 | — | ||||||||||||
Debt Securities: | ||||||||||||||||||||
U.K. government bonds(c) | $ | 28,258 | 33 | % | — | $ | 28,258 | — | ||||||||||||
U.K. corporate bonds(c) | $ | 25,695 | 30 | % | — | $ | 25,695 | — | ||||||||||||
Insurance Contracts: | ||||||||||||||||||||
Insurance contracts(d) | $ | 6,884 | 8 | % | — | — | $ | 6,884 | ||||||||||||
Fair value of plan assets | $ | 85,571 | 100 | % | $ | 3,663 | $ | 75,024 | $ | 6,884 | ||||||||||
(a) | U.K. equity securities are categorized as Level 2 and include investments in a diversified portfolio that aims to capture the returns of the U.K. equity market. The index tracks the Financial Times (London) Stock Exchange (“FTSE”) All-Share Index and invests only in U.K. securities. | |
(b) | Global equity securities are categorized as Level 2 and include investments that aim to capture global equity market returns (excluding the U.K.) by tracking the FTSE AW-World (ex-UK) Index. | |
(c) | U.K. government bonds are categorized as Level 2 and include U.K. government issued fixed income investments which are managed and tracked to the respective benchmark (FTSE U.K. Over 15 Years Gilts Index and FTSE U.K. Over 5 Years Index-Linked). | |
(d) | The assets related to The Netherlands plan consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. The fair value is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. |
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Asset balance at August 31, 2009 | $ | 6,435 | ||
Actual return on plan assets still held at the reporting date | (201 | ) | ||
Purchases, sales, and settlements | 650 | |||
Asset balance at August 31, 2010 | $ | 6,884 | ||
Pension Benefits | ||||||||
2010 | 2009 | |||||||
Beginning fair value of plan assets | $ | 81,494 | $ | 85,526 | ||||
Actual return on plan assets | 8,208 | 3,871 | ||||||
Employer contributions | 4,303 | 4,856 | ||||||
Benefits paid from plan assets | (3,439 | ) | (4,729 | ) | ||||
Plan participants’ contributions | 66 | 83 | ||||||
Effect of conversion to U.S. dollars | (5,061 | ) | (8,113 | ) | ||||
Ending fair value of plan assets | $ | 85,571 | $ | 81,494 | ||||
c. | Funded Status |
Pension Benefits | ||||||||||||||||
Pension Benefits | 2010 | 2009 | ||||||||||||||
2009 | 2008 | |||||||||||||||
Funded Status | ||||||||||||||||
Ending fair value of plan assets | $ | 81,494 | $ | 85,526 | $ | 85,571 | $ | 81,494 | ||||||||
Ending benefit obligation | (129,603 | ) | (135,190 | ) | (133,683 | ) | (129,603 | ) | ||||||||
Funded status | $ | (48,109 | ) | $ | (49,664 | ) | $ | (48,112 | ) | $ | (48,109 | ) | ||||
Consolidated Balance Sheet Information | ||||||||||||||||
Prepaid benefit cost | $ | 240 | $ | 246 | $ | — | $ | 240 | ||||||||
Accrued benefit liability, current | (1,005 | ) | (582 | ) | (598 | ) | (1,005 | ) | ||||||||
Accrued benefit liability, noncurrent | (47,344 | ) | (49,328 | ) | (47,514 | ) | (47,344 | ) | ||||||||
Net liability recorded at August 31 | $ | (48,109 | ) | $ | (49,664 | ) | $ | (48,112 | ) | $ | (48,109 | ) | ||||
Amounts recognized in accumulated other comprehensive loss at August 31, 2009 consist of: | ||||||||||||||||
Amounts recognized in accumulated other comprehensive loss at August 31, 2010 consist of: | ||||||||||||||||
Net actuarial loss | $ | 25,243 | $ | 23,376 | $ | 32,908 | $ | 25,243 | ||||||||
Prior service cost | 463 | 421 | (179 | ) | 463 | |||||||||||
Accumulated other comprehensive loss, before taxes | $ | 25,706 | $ | 23,797 | $ | 32,729 | $ | 25,706 | ||||||||
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Pension Benefits | ||||||||
Pension Benefits | ||||||||
Recognized net actuarial loss | $ | 1,244 | $ | 1,944 | ||||
Amortization of prior service cost | (41 | ) | (25 | ) | ||||
Total | $ | 1,203 | $ | 1,919 | ||||
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August 31, | ||||||||||||||||
August 31, | 2010 | 2009 | ||||||||||||||
2009 | 2008 | |||||||||||||||
Projected benefit obligation | $ | 129,591 | $ | 134,864 | $ | 133,683 | $ | 129,591 | ||||||||
Accumulated benefit obligation | 120,496 | 122,365 | 121,564 | 120,496 | ||||||||||||
Fair value of plan assets | 81,241 | 85,008 | 85,571 | 81,241 |
d. | Net Periodic Benefit Cost |
Pension Benefits | ||||||||||||||||||||||||
Pension Benefits | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Service cost | $ | 1,759 | $ | 2,214 | $ | 1,991 | $ | 1,389 | $ | 1,759 | $ | 2,214 | ||||||||||||
Interest cost | 6,779 | 7,749 | 6,392 | 5,681 | 6,779 | 7,749 | ||||||||||||||||||
Expected long-term return on plan assets | (4,731 | ) | (5,642 | ) | (4,843 | ) | (4,270 | ) | (4,731 | ) | (5,642 | ) | ||||||||||||
Recognized actuarial loss | 874 | 1,429 | 1,362 | 1,303 | 874 | 1,429 | ||||||||||||||||||
Net curtailment gain | (4,608 | ) | — | — | — | (4,608 | ) | — | ||||||||||||||||
Amortization of prior service cost | (39 | ) | (42 | ) | (111 | ) | (115 | ) | (39 | ) | (42 | ) | ||||||||||||
Net periodic benefit cost | $ | 34 | $ | 5,708 | $ | 4,791 | $ | 3,988 | $ | 34 | $ | 5,708 | ||||||||||||
Pension Benefits | ||||||||||||||||||||||||
Pension Benefits | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Discount rate | 5.7 | % | 5.8 | % | 5.1 | % | 4.1 | % | 5.7 | % | 5.8 | % | ||||||||||||
Expected long-term return on plan assets | 4.9 | % | 6.3 | % | 6.1 | % | 4.0 | % | 4.9 | % | 6.3 | % | ||||||||||||
Rate of compensation increase | 4.5 | % | 4.6 | % | 4.1 | % | 3.9 | % | 4.5 | % | 4.6 | % |
e. | Cash Flows |
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Pension | Pension | |||||||
Fiscal Year Ending August 31, | Benefits | Benefits | ||||||
2010 | $ | 4,679 | ||||||
2011 | $ | 4,515 | $ | 4,253 | ||||
2012 | $ | 5,041 | $ | 4,856 | ||||
2013 | $ | 5,295 | $ | 4,659 | ||||
2014 | $ | 4,902 | $ | 4,323 | ||||
Years 2015 through 2019 | $ | 32,634 | ||||||
2015 | $ | 4,818 | ||||||
Years 2016 through 2020 | $ | 29,404 |
9. | Restructuring and Impairment Charges |
a. | 2009 Restructuring Plan |
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Liability | Liability | |||||||||||||||||||||||||||||||||||||||
Liability | Liability | Balance at | Restructuring | Asset Impairment | Balance at | |||||||||||||||||||||||||||||||||||
Balance at | Restructuring | Asset Impairment | Balance at | August 31, | Related | Charge and Other | Cash | August 31, | ||||||||||||||||||||||||||||||||
August 31, | Related | Charge and Other | Cash | August 31, | 2009 | Charges | Non-Cash Activity | Payments | 2010 | |||||||||||||||||||||||||||||||
2008 | Charges | Non-Cash Activity | Payments | 2009 | ||||||||||||||||||||||||||||||||||||
Employee severance and termination benefits | $ | — | $ | 47,047 | $ | 2,802 | $ | (19,004 | ) | $ | 30,845 | $ | 30,845 | $ | 3,745 | $ | (3,919 | ) | $ | (30,596 | ) | $ | 75 | |||||||||||||||||
Lease costs | — | 83 | 1 | (84 | ) | — | — | 3,358 | — | (2,210 | ) | 1,148 | ||||||||||||||||||||||||||||
Fixed asset impairment | — | 6,432 | (6,432 | ) | — | — | — | 553 | (553 | ) | — | — | ||||||||||||||||||||||||||||
Other | — | 134 | — | (134 | ) | — | — | 54 | — | (54 | ) | — | ||||||||||||||||||||||||||||
Total | $ | — | $ | 53,696 | $ | (3,629 | ) | $ | (19,222 | ) | $ | 30,845 | $ | 30,845 | $ | 7,710 | $ | (4,472 | ) | $ | (32,860 | ) | $ | 1,223 | ||||||||||||||||
Liability | Liability | |||||||||||||||||||
Balance at | Restructuring | Asset Impairment | Balance at | |||||||||||||||||
August 31, | Related | Charge and Other | Cash | August 31, | ||||||||||||||||
2008 | Charges | Non-Cash Activity | Payments | 2009 | ||||||||||||||||
Consumer | $ | — | $ | 8,040 | $ | (4,010 | ) | $ | (3,321 | ) | $ | 709 | ||||||||
EMS | — | 41,296 | 381 | (15,379 | ) | 26,298 | ||||||||||||||
AMS | — | 4,360 | — | (522 | ) | 3,838 | ||||||||||||||
Total | $ | — | $ | 53,696 | $ | (3,629 | ) | $ | (19,222 | ) | $ | 30,845 | ||||||||
Liability | Liability | |||||||||||||||||||
Balance at | Restructuring | Asset Impairment | Balance at | |||||||||||||||||
August 31, | Related | Charge and Other | Cash | August 31, | ||||||||||||||||
2009 | Charges | Non-Cash Activity | Payments | 2010 | ||||||||||||||||
Consumer | $ | 709 | $ | (554 | ) | $ | 36 | $ | (124 | ) | $ | 67 | ||||||||
EMS | 26,298 | 8,629 | (5,150 | ) | (28,620 | ) | 1,157 | |||||||||||||
AMS | 3,838 | (365 | ) | 642 | (4,116 | ) | (1 | ) | ||||||||||||
Total | $ | 30,845 | $ | 7,710 | $ | (4,472 | ) | $ | (32,860 | ) | $ | 1,223 | ||||||||
b. | 2006 Restructuring Plan |
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Liability | Liability | |||||||||||||||||||||||||||||||||||||||
Liability | Liability | Balance at | Restructuring | Asset Impairment | Balance at | |||||||||||||||||||||||||||||||||||
Balance at | Restructuring | Asset Impairment | Balance at | August 31, | Related | Charge and Other | Cash | August 31, | ||||||||||||||||||||||||||||||||
August 31, | Related | Charge and Other | Cash | August 31, | 2009 | Charges | Non-Cash Activity | Payments | 2010 | |||||||||||||||||||||||||||||||
2008 | Charges | Non-Cash Activity | Payments | 2009 | ||||||||||||||||||||||||||||||||||||
Employee severance and termination benefits | $ | 36,210 | $ | (2,686 | ) | $ | (3,369 | ) | $ | (24,419 | ) | $ | 5,736 | $ | 5,736 | $ | 9 | $ | (1,345 | ) | $ | (2,081 | ) | $ | 2,319 | |||||||||||||||
Lease costs | 3,865 | 884 | (32 | ) | (2,660 | ) | 2,057 | 2,057 | 498 | (34 | ) | (2,148 | ) | 373 | ||||||||||||||||||||||||||
Other | 429 | — | (8 | ) | (2 | ) | 419 | 419 | — | (49 | ) | — | 370 | |||||||||||||||||||||||||||
Total | $ | 40,504 | $ | (1,802 | ) | $ | (3,409 | ) | $ | (27,081 | ) | $ | 8,212 | $ | 8,212 | $ | 507 | $ | (1,428 | ) | $ | (4,229 | ) | $ | 3,062 | |||||||||||||||
101
Liability | Liability | |||||||||||||||||||
Balance at | Restructuring | Asset Impairment | Balance at | |||||||||||||||||
August 31, | Related | Charge and Other | Cash | August 31, | ||||||||||||||||
2008 | Charges | Non-Cash Activity | Payments | 2009 | ||||||||||||||||
Consumer | $ | 6,418 | $ | (448 | ) | $ | (308 | ) | $ | (2,056 | ) | $ | 3,606 | |||||||
EMS | 33,426 | (2,391 | ) | (3,088 | ) | (23,757 | ) | 4,190 | ||||||||||||
AMS | 660 | (76 | ) | (11 | ) | (157 | ) | 416 | ||||||||||||
Other non-reportable operating | — | 1,113 | (2 | ) | (1,111 | ) | — | |||||||||||||
Total | $ | 40,504 | $ | (1,802 | ) | $ | (3,409 | ) | $ | (27,081 | ) | $ | 8,212 | |||||||
89
Liability | Liability | |||||||||||||||||||
Balance at | Restructuring | Asset Impairment | Balance at | |||||||||||||||||
August 31, | Related | Charge and Other | Cash | August 31, | ||||||||||||||||
2009 | Charges | Non-Cash Activity | Payments | 2010 | ||||||||||||||||
Consumer | $ | 3,606 | $ | (171 | ) | $ | (321 | ) | $ | (795 | ) | $ | 2,319 | |||||||
EMS | 4,190 | 678 | (1,061 | ) | (3,434 | ) | 373 | |||||||||||||
AMS | 416 | — | (46 | ) | — | 370 | ||||||||||||||
Total | $ | 8,212 | $ | 507 | $ | (1,428 | ) | $ | (4,229 | ) | $ | 3,062 | ||||||||
10. | Commitments and Contingencies |
a. | Lease Agreements |
Fiscal Year Ending August 31, | Amount | Amount | ||||||
2010 | $ | 51,466 | ||||||
2011 | 36,671 | $ | 51,653 | |||||
2012 | 29,301 | 39,470 | ||||||
2013 | 24,780 | 23,299 | ||||||
2014 | 19,066 | 17,391 | ||||||
2015 | 11,351 | |||||||
Thereafter | 26,059 | 10,623 | ||||||
Total minimum lease payments | $ | 187,343 | $ | 153,787 | ||||
102
b. | Warranty Provision |
Amount | Amount | |||||||
Balance at August 31, 2006 | $ | 3,940 | ||||||
Accruals for warranties during the year | 4,869 | |||||||
Settlements made during the year | (1,234 | ) | ||||||
Balance at August 31, 2007 | $ | 7,575 | $ | 7,575 | ||||
Accruals for warranties during the year | 8,569 | 8,569 | ||||||
Settlements made during the year | (6,267 | ) | (6,267 | ) | ||||
Balance at August 31, 2008 | $ | 9,877 | $ | 9,877 | ||||
Accruals for warranties during the year | 9,017 | 9,017 | ||||||
Settlements made during the year | (4,614 | ) | (4,614 | ) | ||||
Balance at August 31, 2009 | $ | 14,280 | $ | 14,280 | ||||
Accruals for warranties during the year | 3,112 | |||||||
Settlements made during the year | (6,564 | ) | ||||||
Balance at August 31, 2010 | $ | 10,828 | ||||||
90
91
11. | Stockholders’ Equity |
a. | Stock Option and Stock Appreciation Right Plans |
103
92
104
Fiscal Year Ended August 31, | ||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||
Expected dividend yield | 3.6 | % | 1.3 | % | 1.0 | % | 1.9% | 3.6% | 1.3% | |||||||||
Risk-free interest rate | 0% to 3.6% | 1.1% to 4.4% | 4.6% to 5.1% | 0.1% to 3.4% | 0% to 3.6% | 1.1% to 4.4% | ||||||||||||
Expected volatility | 67.3 | % | 50.2 | % | 49.0 | % | 60.2% | 67.3% | 50.2% | |||||||||
Expected life | 5.8 years | 5.8 years | 5.5 years | 5.6 years | 5.8 years | 5.8 years |
93
Weighted- | ||||||||||||||||||||
Weighted- | Average | |||||||||||||||||||
Shares | Aggregate | Average | Remaining | |||||||||||||||||
Available | Options | Intrinsic Value | Exercise | Contractual | ||||||||||||||||
for Grant | Outstanding | (in thousands) | Price | Life (years) | ||||||||||||||||
Balance at September 1, 2008 | 7,262,639 | 16,466,315 | $ | 8,771 | $ | 24.09 | 5.8 | |||||||||||||
Options authorized | 1,500,000 | — | ||||||||||||||||||
Options expired | (363,980 | ) | — | $ | 21.15 | |||||||||||||||
Options granted | (55,290 | ) | 55,290 | $ | 7.90 | |||||||||||||||
Options cancelled | 1,498,771 | (1,498,771 | ) | $ | 24.87 | |||||||||||||||
Restricted stock awards (1) | (4,714,044 | ) | — | |||||||||||||||||
Options exercised | — | (1,160 | ) | $ | 5.88 | |||||||||||||||
Balance at August 31, 2009 | 5,128,096 | 15,021,674 | $ | 154 | $ | 24.04 | 4.9 | |||||||||||||
Exercisable at August 31, 2009 | 12,412,208 | $ | 0 | $ | 23.95 | 4.2 | ||||||||||||||
Weighted- | ||||||||||||||||||||
Weighted- | Average | |||||||||||||||||||
Shares | Average | Remaining | ||||||||||||||||||
Available | Options | Aggregate | Exercise | Contractual | ||||||||||||||||
for Grant | Outstanding | Intrinsic Value | Price | Life (Years) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance at September 1, 2009 | 5,128,096 | 15,021,674 | $ | 154 | $ | 24.04 | 4.9 | |||||||||||||
Options authorized | 8,200,000 | — | ||||||||||||||||||
Options expired | (963,570 | ) | — | $ | 23.16 | |||||||||||||||
Options granted(1) | — | 28,570 | $ | 14.88 | ||||||||||||||||
Options cancelled | 1,781,584 | (1,781,584 | ) | $ | 25.37 | |||||||||||||||
Restricted stock awards(2) | (3,666,109 | ) | — | |||||||||||||||||
Options exercised | — | (114,388 | ) | $ | 13.52 | |||||||||||||||
Balance at August 31, 2010 | 10,480,001 | 13,154,272 | $ | 95 | $ | 24.10 | 4.09 | |||||||||||||
Exercisable at August 31, 2010 | 12,217,581 | $ | 22 | $ | 24.24 | 3.85 | ||||||||||||||
(1) | Represents stock appreciation rights that will be settled in cash. | |
(2) | Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. |
105
b. | Restricted Stock Awards |
94
106
Weighted - | ||||||||
Average | ||||||||
Grant-Date | ||||||||
Shares | Fair Value | |||||||
Nonvested balance at September 1, 2008 | 5,989,884 | $ | 24.17 | |||||
Changes during the period | ||||||||
Shares granted (1) | 5,476,467 | $ | 7.41 | |||||
Shares vested | (502,376 | ) | $ | 21.96 | ||||
Shares forfeited | (762,423 | ) | $ | 21.11 | ||||
Nonvested balance at August 31, 2009 | 10,201,552 | $ | 15.50 | |||||
Weighted - | ||||||||
Average | ||||||||
Grant-Date | ||||||||
Shares | Fair Value | |||||||
Nonvested balance at September 1, 2009 | 10,201,552 | $ | 15.50 | |||||
Changes during the period | ||||||||
Shares granted(1) | 5,787,295 | $ | 14.28 | |||||
Shares vested | (1,678,390 | ) | $ | 17.62 | ||||
Shares forfeited | (2,121,186 | ) | $ | 24.15 | ||||
Nonvested balance at August 31, 2010 | 12,189,271 | $ | 13.13 | |||||
(1) | Represents the maximum number of shares that can vest based on the achievement of certain performance criteria. |
c. | Employee Stock Purchase Plan |
95
Fiscal Year Ended August 31, | ||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||
Expected dividend yield | 1.5 | % | 1.0 | % | 1.1 | % | 1.5% | 1.5% | 1.0% | |||||||||
Risk-free interest rate | 1.1 | % | 3.6 | % | 5.2 | % | 0.3% | 1.1% | 3.6% | |||||||||
Expected volatility | 74.6 | % | 43.5 | % | 39.8 | % | 79.7% | 74.6% | 43.5% | |||||||||
Expected life | 0.5 years | 0.5 years | 0.5 years | 0.5 years | 0.5 years | 0.5 years |
107
d. | Dividends |
Total of cash | Total of Cash | |||||||||||||||||||||||||||
Dividend | Dividend | dividends | Date of record for | Dividend cash | Dividend | Dividend | Dividends | Date of Record for | Dividend Cash | |||||||||||||||||||
declaration date | per share | paid | dividend payment | payment date | Declaration Date | per Share | Declared | Dividend Payment | Payment Date | |||||||||||||||||||
(in thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||
Fiscal year 2008: | November 1, 2007 | $ | 0.07 | $ | 14,667 | November 15, 2007 | December 3, 2007 | |||||||||||||||||||||
January 17, 2008 | $ | 0.07 | $ | 14,704 | February 15, 2008 | March 3, 2008 | ||||||||||||||||||||||
Fiscal year 2010: | October 22, 2009 | $ | 0.07 | $ | 15, 186(1 | ) | November 16, 2009 | December 1, 2009 | ||||||||||||||||||||
April 17, 2008 | $ | 0.07 | $ | 14,704 | May 15, 2008 | June 2, 2008 | January 22, 2010 | $ | 0.07 | $ | 15,238 | February 16, 2010 | March 1, 2010 | |||||||||||||||
July 16, 2008 | $ | 0.07 | $ | 14,739 | August 15, 2008 | September 2, 2008 | April 14, 2010 | $ | 0.07 | $ | 15,221 | May 17, 2010 | June 1, 2010 | |||||||||||||||
July 22, 2010 | $ | 0.07 | $ | 15,247 | August 16, 2010 | September 1, 2010 | ||||||||||||||||||||||
Fiscal year 2009: | October 24, 2008 | $ | 0.07 | $ | 14,916 | November 17, 2008 | December 1, 2008 | October 24, 2008 | $ | 0.07 | $ | 14,916 | November 17, 2008 | December 1, 2008 | ||||||||||||||
January 22, 2009 | $ | 0.07 | $ | 14,974 | February 17, 2009 | March 2, 2009 | January 22, 2009 | $ | 0.07 | $ | 14,974 | February 17, 2009 | March 2, 2009 | |||||||||||||||
April 23, 2009 | $ | 0.07 | $ | 14,954 | May 15, 2009 | June 1, 2009 | April 23, 2009 | $ | 0.07 | $ | 14,954 | May 15, 2009 | June 1, 2009 | |||||||||||||||
July 16, 2009 | $ | 0.07 | $ | 14,992 | August 17, 2009 | September 1, 2009 | July 16, 2009 | $ | 0.07 | $ | 14,992 | August 17, 2009 | September 1, 2009 |
(1) | Of the $15.2 million in total dividends declared during the first fiscal quarter of 2010, $14.4 million was paid out of additional paid-in capital (which represents the amount of dividends declared in excess of the Company’s retained earnings balance at the date that the dividends were declared). |
12. | Concentration of Risk and Segment Data |
a. | Concentration of Risk |
Percentage of | Percentage of | |||||||||||||||||||||||||||||||||||||||
Net Revenue | Percentage of Accounts Receivable | Net Revenue | Percentage of Accounts Receivable | |||||||||||||||||||||||||||||||||||||
Fiscal Year Ended August 31, | August 31, | Fiscal Year Ended August 31, | August 31, | |||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | |||||||||||||||||||||||||||||||
Cisco Systems, Inc. | 13 | % | 16 | % | 15 | % | * | * | ||||||||||||||||||||||||||||||||
Cisco Systems, Inc | 15 | % | 13 | % | 16 | % | * | * | ||||||||||||||||||||||||||||||||
Research in Motion Limited | 12 | % | * | * | 10 | % | * | 15 | % | 12 | % | * | * | 10 | % | |||||||||||||||||||||||||
Nokia Corporation | * | * | 13 | % | * | * | ||||||||||||||||||||||||||||||||||
Hewlett-Packard Company | * | 11 | % | * | 10 | % | * | * | * | 11 | % | 12 | % | 10 | % |
* | Amount was less than 10% of total |
96
108
b. | Segment Data |
Fiscal Year Ended August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Net revenue | ||||||||||||
Consumer | $ | 4,160,105 | $ | 3,895,128 | $ | 4,146,767 | ||||||
EMS | 6,802,482 | 8,217,847 | 7,552,858 | |||||||||
AMS | 721,951 | 666,728 | 590,967 | |||||||||
$ | 11,684,538 | $ | 12,779,703 | $ | 12,290,592 | |||||||
2009 | 2008 | 2007 | ||||||||||
Segment income and reconciliation of (loss) income before income taxes and minority interest | ||||||||||||
Consumer | $ | 51,764 | $ | 55,119 | $ | 88,731 | ||||||
EMS | 124,498 | 275,692 | 194,947 | |||||||||
AMS | 63,317 | 49,086 | 47,878 | |||||||||
Total segment income | $ | 239,579 | $ | 379,897 | $ | 331,556 | ||||||
Reconciling items: | ||||||||||||
Amortization of intangibles | (31,039 | ) | (37,288 | ) | (29,347 | ) | ||||||
Restructuring and impairment charges | (51,894 | ) | (54,808 | ) | (72,396 | ) | ||||||
Goodwill impairment charges | (1,022,821 | ) | — | — | ||||||||
Other expense | (20,111 | ) | (11,902 | ) | (15,888 | ) | ||||||
Interest income | 7,426 | 12,014 | 14,531 | |||||||||
Interest expense | (82,247 | ) | (94,316 | ) | (86,069 | ) | ||||||
Stock-based compensation expense | (44,026 | ) | (36,404 | ) | (47,874 | ) | ||||||
(Loss) income before income taxes and minority interest (net of tax) | $ | (1,005,133 | ) | $ | 157,193 | $ | 94,513 | |||||
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net revenue | ||||||||||||
EMS | $ | 7,903,638 | $ | 6,802,482 | $ | 8,217,847 | ||||||
Consumer | 4,697,415 | 4,160,105 | 3,895,128 | |||||||||
AMS | 808,358 | 721,951 | 666,728 | |||||||||
$ | 13,409,411 | $ | 11,684,538 | $ | 12,779,703 | |||||||
97
109
Fiscal Year Ended August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Total assets | ||||||||||||
Consumer | $ | 1,723,934 | $ | 2,134,318 | $ | 2,026,122 | ||||||
EMS | 2,017,575 | 3,006,485 | 2,974,901 | |||||||||
AMS | 280,126 | 223,561 | 217,207 | |||||||||
Other non-allocated assets | 1,296,223 | 1,667,773 | 1,077,002 | |||||||||
$ | 5,317,858 | $ | 7,032,137 | $ | 6,295,232 | |||||||
Fiscal Year Ended August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Segment income (loss) and reconciliation of income (loss) before income tax | ||||||||||||
EMS | $ | 359,319 | $ | 131,754 | $ | 275,692 | ||||||
Consumer | 62,802 | 51,764 | 55,119 | |||||||||
AMS | 68,809 | 63,317 | 49,086 | |||||||||
Total segment income | $ | 490,930 | $ | 246,835 | $ | 379,897 | ||||||
Reconciling items: | ||||||||||||
Stock-based compensation expense | (104,609 | ) | (44,026 | ) | (36,404 | ) | ||||||
Amortization of intangibles | (25,934 | ) | (31,039 | ) | (37,288 | ) | ||||||
Restructuring and impairment charges | (8,217 | ) | (51,894 | ) | (54,808 | ) | ||||||
Goodwill impairment charges | — | (1,022,821 | ) | — | ||||||||
Loss on disposal of subsidiaries | (24,604 | ) | — | — | ||||||||
Other expense | (4,087 | ) | (20,111 | ) | (11,902 | ) | ||||||
Interest income | 2,956 | 7,426 | 12,014 | |||||||||
Interest expense | (79,168 | ) | (82,247 | ) | (94,316 | ) | ||||||
Distressed customer charges | — | (7,256 | ) | — | ||||||||
Income (loss) before income tax | $ | 247,267 | $ | (1,005,133 | ) | $ | 157,193 | |||||
2010 | 2009 | 2008 | ||||||||||
Total assets | ||||||||||||
Consumer | $ | 1,964,879 | $ | 1,723,934 | $ | 2,134,318 | ||||||
EMS | 2,556,477 | 2,017,575 | 3,006,485 | |||||||||
AMS | 290,595 | 280,126 | 223,561 | |||||||||
Other non-allocated assets | 1,555,796 | 1,296,223 | 1,667,773 | |||||||||
$ | 6,367,747 | $ | 5,317,858 | $ | 7,032,137 | |||||||
Fiscal Year Ended August 31, | ||||||||||||||||||||||||
Fiscal Year Ended August 31, | 2010 | 2009 | 2008 | |||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
External net revenue: | ||||||||||||||||||||||||
Mexico | $ | 2,704,681 | $ | 2,042,763 | $ | 1,951,652 | $ | 3,438,436 | $ | 2,704,681 | $ | 2,042,763 | ||||||||||||
China | 2,444,307 | 2,841,404 | 2,033,859 | 2,410,590 | 2,444,307 | 2,841,404 | ||||||||||||||||||
U.S. | 1,887,773 | 2,605,155 | 2,610,979 | 2,049,700 | 1,887,773 | 2,605,155 | ||||||||||||||||||
Hungary | 1,005,144 | 755,844 | 1,369,530 | 1,230,788 | 1,005,144 | 755,844 | ||||||||||||||||||
Malaysia | 814,425 | 995,981 | 870,153 | 1,164,255 | 814,425 | 995,981 | ||||||||||||||||||
Brazil | 510,071 | 419,359 | 558,915 | 609,198 | 510,071 | 419,359 | ||||||||||||||||||
Poland | 478,457 | 972,575 | 911,476 | 513,514 | 478,457 | 972,575 | ||||||||||||||||||
Other | 1,839,680 | 2,146,622 | 1,984,028 | 1,992,930 | 1,839,680 | 2,146,622 | ||||||||||||||||||
$ | 11,684,538 | $ | 12,779,703 | $ | 12,290,592 | $ | 13,409,411 | $ | 11,684,538 | $ | 12,779,703 | |||||||||||||
August 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Long-lived assets: | ||||||||||||
China | $ | 413,064 | $ | 481,770 | $ | 279,971 | ||||||
U.S. | 252,574 | 359,451 | 357,741 | |||||||||
Mexico | 247,605 | 188,823 | 154,299 | |||||||||
Taiwan | 133,395 | 633,301 | 798,281 | |||||||||
Malaysia | 101,246 | 117,344 | 82,428 | |||||||||
Poland | 91,188 | 137,800 | 105,416 | |||||||||
Hungary | 80,618 | 149,010 | 143,641 | |||||||||
India | 76,443 | 294,322 | 289,171 | |||||||||
Other | 137,884 | 322,603 | 321,609 | |||||||||
$ | 1,534,017 | $ | 2,684,424 | $ | 2,532,557 | |||||||
110
August 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Long-lived assets: | ||||||||||||
China | $ | 483,181 | $ | 413,064 | $ | 481,770 | ||||||
U.S. | 255,108 | 252,574 | 359,451 | |||||||||
Mexico | 212,409 | 247,605 | 188,823 | |||||||||
Taiwan | 110,237 | 133,395 | 633,301 | |||||||||
Malaysia | 102,700 | 101,246 | 117,344 | |||||||||
Poland | 98,395 | 91,188 | 137,800 | |||||||||
Hungary | 90,091 | 80,618 | 149,010 | |||||||||
Singapore | 74,538 | 1,083 | 3,309 | |||||||||
Other | 157,301 | 213,244 | 613,616 | |||||||||
$ | 1,583,960 | $ | 1,534,017 | $ | 2,684,424 | |||||||
13. | Derivative Financial Instruments and Hedging Activities |
98
a. | Foreign Currency Risk Management: |
111
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | $ | — | $ | 10,874 | $ | — | $ | 10,874 | $ | — | $ | 5,483 | $ | — | $ | 5,483 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Forward foreign exchange contracts | — | (5,511 | ) | — | (5,511 | ) | — | (4,314 | ) | — | (4,314 | ) | ||||||||||||||||||||
Total | $ | — | $ | 5,363 | $ | — | $ | 5,363 | $ | — | $ | 1,169 | $ | — | $ | 1,169 | ||||||||||||||||
Fair Values of Derivative Instruments At August 31, 2010 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 669 | Other accrued expense | $ | 1,046 | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 4,814 | Other accrued expense | $ | 3,268 |
112
99
Fair Values of Derivative Instruments At August 31, 2009 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Forward foreign exchange contracts Prepaid expenses and other current assets $ 961 Other accrued expense $ — Forward foreign exchange contracts Prepaid expenses and other current assets $ 9,913 Other accrued expense $ 5,511
Fair Values of Derivative Instruments | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||
Location | Value | Location | Value | |||||||||||||
Derivatives designated as hedging instruments under SFAS 133: | ||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other assets | $ | 961 | Accrued expense | $ | — | ||||||||||
Derivatives not designated as hedging instruments under SFAS 133: | ||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other assets | $ | 9,913 | Accrued expense | $ | 5,511 |
Amount of Gain or | ||||||||||||||||||||
Amount of Gain | (Loss) Recognized in | |||||||||||||||||||
Amount of Gain | Location of Gain (Loss) | or (Loss) | Income on Derivative | |||||||||||||||||
(Loss) Recognized | Reclassified from | Reclassified from | Location of Gain or | (Ineffective Portion | ||||||||||||||||
in OCI on | Accumulated OCI | Accumulated OCI | (Loss) Recognized in | and Amount Excluded | ||||||||||||||||
Derivative | into Income | into Income | Income on Derivative | from Effectiveness | ||||||||||||||||
Derivatives in SFAS | (Effective Portion) | (Effective Portion) | (Effective Portion) | (Ineffective Portion | Testing) for the Twelve | |||||||||||||||
133 Cash Flow | for the Twelve months | for the Twelve months | for the Twelve months | and Amount Excluded | months | |||||||||||||||
Hedging | ended August 31, | ended August 31, | ended August 31, | from Effectiveness | ended August 31, | |||||||||||||||
Relationship | 2009 | 2009 | 2009 | Testing) | 2009 | |||||||||||||||
Forward foreign exchange contracts | $ | 705 | Cost of revenue | $ | 307 | Cost of revenue | $ | 659 |
Location of Gain | Amount of Gain | |||||||||||||||
(Loss) Recognized in | (Loss) Recognized in | |||||||||||||||
Amount of Gain | Location of Gain | Amount of Gain | Income on Derivative | Income on Derivative | ||||||||||||
Derivatives in Cash Flow | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | (Ineffective Portion | (Ineffective Portion | |||||||||||
Hedging Relationship for | in OCI on | from AOCI | from AOCI | and Amount Excluded | and Amount Excluded | |||||||||||
the Fiscal Year Ended | Derivative | into Income | into Income | from Effectiveness | from Effectiveness | |||||||||||
August 31, 2010 | (Effective Portion) | (Effective Portion) | (Effective Portion) | Testing) | Testing) | |||||||||||
Forward foreign exchange contracts | $ | (10,656 | ) | Revenue | $ | (10,583 | ) | Revenue | $ | 95 | ||||||
Forward foreign exchange contracts | $ | 8,943 | Cost of revenue | $ | 10,232 | Cost of revenue | $ | 3,374 | ||||||||
Forward foreign exchange contracts | $ | (33 | ) | Selling, general and administrative | $ | 35 | Selling, general and administrative | $ | 51 |
Location of Gain | Amount of Gain | |||||||||||||||
(Loss) Recognized in | (Loss) Recognized in | |||||||||||||||
Amount of Gain | Location of Gain | Amount of Gain | Income on Derivative | Income on Derivative | ||||||||||||
Derivatives in Cash Flow | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | (Ineffective Portion | (Ineffective Portion | |||||||||||
Hedging Relationship for | in OCI on | from AOCI | from AOCI | and Amount Excluded | and Amount Excluded | |||||||||||
the Fiscal Year Ended | Derivative | into Income | into Income | from Effectiveness | from Effectiveness | |||||||||||
August 31, 2009 | (Effective Portion) | (Effective Portion) | (Effective Portion) | Testing) | Testing) | |||||||||||
Forward foreign exchange contracts | $ | 705 | Cost of revenue | $ | 307 | Cost of revenue | $ | 659 |
113
Amount of Gain or (Loss) Recognized in | ||||||||
Derivatives not designated as hedging instruments under | Location of Gain or (Loss) Recognized in | Income on Derivative for the Twelve Months | ||||||
SFAS 133 | Income on Derivative | ended August 31, 2009 | ||||||
Forward foreign exchange contracts | Cost of revenue | $ | 50,385 |
Amount of Gain | ||||||||
(Loss) Recognized in | ||||||||
Income on Derivative | ||||||||
Location of Gain | for the 12 Months | |||||||
(Loss) Recognized in | Ended August 31, | |||||||
Derivatives not Designated as Hedging Instruments | Income on Derivative | 2010 | ||||||
Forward foreign exchange contracts | Cost of revenue | $ | 15,967 |
b. | Interest Rate Risk Management: |
100
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swap | — | (255 | ) | — | (255 | ) | ||||||||||
Total | $ | — | $ | (255 | ) | $ | — | $ | (255 | ) | ||||||
Location of Gain or | Amount of Gain or | |||||||||||||||||||
Amount of Gain | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||||
Amount of Gain | Location of Gain (Loss) | or (Loss) | Income on Derivative | Income on Derivative | ||||||||||||||||
(Loss) Recognized | Reclassified from | Reclassified from | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
in OCI on | Accumulated OCI | Accumulated OCI | and Amount Excluded | and Amount Excluded | ||||||||||||||||
Derivative | into Income | into Income | from Effectiveness | from Effectiveness | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationship for the Fiscal Year Ended August 31, 2010 | (Effective Portion) | (Effective Portion) | (Effective Portion) | Testing) | Testing) | |||||||||||||||
Interest rate swap | $ | (13 | ) | Interest expense | $ | (4,218 | ) | Interest expense | $ | — |
Fair Values of Derivative Instruments | Location of Gain or | Amount of Gain or | ||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Amount of Gain | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | Location of Gain (Loss) | or (Loss) | Income on Derivative | Income on Derivative | |||||||||||||||||||||||||||||
Location | Value | Location | Value | Amount of Gain | Reclassified from | Reclassified from | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under SFAS 133: | ||||||||||||||||||||||||||||||||||||
(Loss) Recognized | Accumulated OCI | Accumulated OCI | and Amount Excluded | and Amount Excluded | ||||||||||||||||||||||||||||||||
in OCI on Derivative | into Income | into Income | from Effectiveness | from Effectiveness | ||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship for the Fiscal Year Ended August 31, 2009 | (Effective Portion) | (Effective Portion) | (Effective Portion) | Testing) | Testing) | |||||||||||||||||||||||||||||||
Interest rate swap | Not applicable | $ | — | Accrued expense | $ | 255 | $ | (549 | ) | Interest expense | $ | (4,244 | ) | Interest expense | $ | — |
Amount of Gain or | ||||||||||||||
Amount of Gain | (Loss) Recognized in | |||||||||||||
Amount of Gain | Location of Gain (Loss) | or (Loss) | Income on Derivative | |||||||||||
(Loss) Recognized | Reclassified from | Reclassified from | Location of Gain or | (Ineffective Portion | ||||||||||
in OCI on | Accumulated OCI | Accumulated OCI | (Loss) Recognized in | and Amount Excluded | ||||||||||
Derivative | into Income | into Income | Income on Derivative | from Effectiveness | ||||||||||
Derivatives in SFAS | (Effective Portion) | (Effective Portion) | (Effective Portion) | (Ineffective Portion | Testing) for the Twelve | |||||||||
133 Cash Flow | for the Twelve months | for the Twelve months | for the Twelve months | and Amount Excluded | months | |||||||||
Hedging | ended August 31, | ended August 31, | ended August 31, | from Effectiveness | ended August 31, | |||||||||
Relationship | 2009 | 2009 | 2009 | Testing) | 2009 | |||||||||
Interest rate swap | $ | (549 | ) | Interest expense | $ | (294 | ) | Interest expense | $— |
Twelve months ended | ||||
August 31, 2009 | ||||
Balance, August 31, 2008 | $ | — | ||
Net gain for the period | 156 | |||
Net gain transferred to earnings | (13 | ) | ||
Balance, August 31, 2009 | $ | 143 | ||
Accumulated comprehensive loss August 31, 2008 | $ | (22,954 | ) | |
Net gain for the period | 156 | |||
Net loss transferred to earnings | 3,937 | |||
Accumulated comprehensive loss, August 31, 2009 | $ | (18,861 | ) | |
Net loss for the period | (1,759 | ) | ||
Net loss transferred to earnings | 4,534 | |||
Accumulated comprehensive loss, August 31, 2010 | $ | (16,086 | ) | |
101
114
14. | Loss on Disposal of Subsidiaries |
a. | Jabil Circuit Automotive, SAS |
b. | French and Italian Subsidiaries |
15. | New Accounting Pronouncements |
a. | Recently Adopted Accounting Pronouncements: |
115
116
b. | Recently Issued Accounting Guidance |
102
16. | Subsequent Events |
103
117
By: | /s/ | |||
Timothy L. Main | ||||
104
118
Signature | Title | Date | ||||||
By: | /s/ William D. Morean | Chairman of the Board of Directors | October 21, 2010 | |||||
By: | /s/ Thomas A. Thomas A. Sansone | Vice Chairman of the Board of Directors | October | |||||
By: | /s/ Timothy L. Main | President, Chief Executive Officer and Director (Principal Executive Officer) | October | |||||
By: | /s/ Forbes I.J. Alexander | Chief Financial Officer (Principal Financial and Accounting Officer) | October | |||||
By: | /s/ Mel S. Lavitt | Director | October | |||||
By: | /s/ Lawrence J. Murphy | Director | October | |||||
By: | /s/ Frank A. Newman | Director | October | |||||
By: | /s/ Steven A. Raymund | Director | October | |||||
By: | /s/ David M. Stout | Director | October | |||||
By: | /s/ Kathleen A. Walters | Director | October |
105
119
Balance at | Additions and Adjustments | |||||||||||||||||||||||||||||||
Beginning | Charged to Costs | Balance at | ||||||||||||||||||||||||||||||
Balance at | Additions | of Period | and Expenses | Write-Offs | End of Period | |||||||||||||||||||||||||||
beginning | charged to costs | Balance at | (In thousands) | |||||||||||||||||||||||||||||
of period | and expenses | Write-offs | end of period | |||||||||||||||||||||||||||||
Allowance for uncollectible trade accounts receivable: | ||||||||||||||||||||||||||||||||
Fiscal year ended August 31, 2010 | $ | 15,510 | $ | (881 | ) | $ | (690 | ) | $ | 13,939 | ||||||||||||||||||||||
Fiscal year ended August 31, 2009 | $ | 10,116 | $ | 8,450 | $ | (3,056 | ) | $ | 15,510 | $ | 10,116 | $ | 8,450 | $ | (3,056 | ) | $ | 15,510 | ||||||||||||||
Fiscal year ended August 31, 2008 | $ | 10,559 | $ | 3,316 | $ | (3,759 | ) | $ | 10,116 | $ | 10,559 | $ | 3,316 | $ | (3,759 | ) | $ | 10,116 | ||||||||||||||
Fiscal year ended August 31, 2007 | $ | 5,801 | $ | 7,974 | $ | (3,216 | ) | $ | 10,559 | |||||||||||||||||||||||
Additions | Additions | |||||||||||||||||||
Balance at | charged to | charged to | ||||||||||||||||||
beginning | costs and | other | Balance at | |||||||||||||||||
of period | expenses | accounts | Reductions | end of period | ||||||||||||||||
Valuation allowance for deferred taxes: | ||||||||||||||||||||
Fiscal year ended August 31, 2009 | $ | 121,008 | $ | 308,560 | $ | 4,835 | $ | (622 | ) | $ | 433,781 | |||||||||
Fiscal year ended August 31, 2008 | $ | 117,275 | $ | 5,002 | $ | 61 | $ | (1,330 | ) | $ | 121,008 | |||||||||
Fiscal year ended August 31, 2007 | $ | 43,497 | $ | 6,726 | $ | 72,634 | $ | (5,582 | ) | $ | 117,275 | |||||||||
Additions/ | ||||||||||||||||||||
Additions | (Reductions) | Reductions | ||||||||||||||||||
Balance at | Charged to | Charged to | Charged to | |||||||||||||||||
Beginning | Costs and | Other | Costs and | Balance at | ||||||||||||||||
of Period | Expenses | Accounts | Expenses | End of Period | ||||||||||||||||
Valuation allowance for deferred taxes: | ||||||||||||||||||||
Fiscal year ended August 31, 2010 | $ | 433,781 | $ | 31,012 | $ | (77,954 | ) | $ | (11,538 | ) | $ | 375,301 | ||||||||
Fiscal year ended August 31, 2009 | $ | 121,008 | $ | 308,560 | $ | 4,835 | $ | (622 | ) | $ | 433,781 | |||||||||
Fiscal year ended August 31, 2008 | $ | 117,275 | $ | 5,002 | $ | 61 | $ | (1,330 | ) | $ | 121,008 | |||||||||
106
120
Exhibit No. | Description | |||||
3 | .1(4) | — | Registrant’s Certificate of Incorporation, as amended. | |||
3 | .2(15) | — | Registrant’s Bylaws, as amended. | |||
4 | .1(2) | — | Form of Certificate for Shares of the Registrant’s Common Stock. | |||
4 | .2(6) | — | Rights Agreement, dated as of October 19, 2001, between the Registrant and EquiServe Trust Company, N.A., which includes the form of the Certificate of Designation as Exhibit A, form of the Rights Certificate as Exhibit B, and the Summary of Rights as Exhibit C. | |||
4 | .3(9) | — | Senior Debt Indenture, dated as of July 21, 2003, with respect to the Senior Debt of the Registrant, between the Registrant and The Bank of New York, as trustee. | |||
4 | .4(9) | — | First Supplemental Indenture, dated as of July 21, 2003, with respect to the 5.875% Senior Notes, due 2010, of the Registrant, between the Registrant and The Bank of New York, as trustee. | |||
4 | .5(16) | — | Indenture, dated January 16, 2008, with respect to Senior Debt Securities of the Registrant, between the Registrant and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as trustee. | |||
4 | .6(17) | — | Form of 8.250% Registered Senior Notes issued on July 18, 2008. | |||
4 | .7(18) | — | Form of 7.750% Registered Senior Notes issued on August 11, 2009. | |||
4 | .8(18) | — | Officer’s Certificate of the Registrant pursuant to the Indenture, dated August 11, 2009. | |||
10 | .1(3)(5) | — | 1992 Stock Option Plan and forms of agreement used thereunder, as amended. | |||
10 | .2(1)(3) | — | Restated cash or deferred profit sharing plan under section 401(k). | |||
10 | .3(1)(3) | — | Form of Indemnification Agreement between the Registrant and its Officers and Directors. | |||
10 | .4(3)(7) | — | Jabil 2002 Employment Stock Purchase Plan. | |||
10 | .5(3) | — | Jabil 2002 Stock Incentive Plan. | |||
10 | .5a(11) | — | Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan Stock Option Agreement. | |||
10 | .5b(11) | — | Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan-French Subplan Stock Option Agreement. | |||
10 | .5c(11) | — | Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan-UK Subplan CSOP Option Certificate. | |||
10 | .5d(11) | — | Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan-UK Subplan Stock Option Agreement. | |||
10 | .5e(12) | — | Form of Jabil Circuit, Inc. Restricted Stock Award Agreement (prior form). | |||
10 | .5f | — | Form of Jabil Circuit, Inc. Time-Based Restricted Stock Award Agreement (current form). | |||
10 | .5g | — | Form of Jabil Circuit, Inc. Performance-Based Restricted Stock Award Agreement (current form). | |||
10 | .5h(13) | — | Form of Stock Appreciation Right Agreement. | |||
10 | .6(3)(10) | — | Addendum to the Terms and Conditions of the Jabil Circuit, Inc. 2002 Stock Incentive Plan for Grantees Resident in France. | |||
10 | .7(3)(8) | — | Schedule to the Jabil Circuit, Inc. 2002 Stock Incentive Plan for Grantees Resident in the United Kingdom. | |||
10 | .8(14) | — | Amended and Restated Five-Year Unsecured Revolving Credit Agreement dated as of July 19, 2007 between the Registrant; initial lenders and initial issuing banks named therein; Citicorp USA, Inc. as administrative agent; JPMorgan Chase Bank, N.A. as syndication agent; and The Royal Bank of Scotland PLC, Royal Bank of Canada, Bank of America, N.A., UBS Loan Finance LLC and Credit Suisse, Cayman Islands Branch as co-documentation agents. | |||
10 | .9(19) | — | Underwriting Agreement, dated July 31, 2009, between Jabil Circuit, Inc., J.P. Morgan Securities Inc. and the several underwriters listed therein. | |||
16 | .1(20) | — | Letter from KPMG LLP, dated August 3, 2010, regarding change in independent registered public accounting firm. | |||
21 | .1 | — | List of Subsidiaries. | |||
23 | .1 | — | Consent of Independent Registered Public Accounting Firm. | |||
24 | .1 | — | Power of Attorney (See Signature page). | |||
31 | .1 | — | Rule 13a-14(a)/15d-14(a) Certification by the President and Chief Executive Officer of the Registrant. | |||
31 | .2 | — | Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer of the Registrant. | |||
32 | .1 | — | Section 1350 Certification by the President and Chief Executive Officer of the Registrant. | |||
32 | .2 | — | Section 1350 Certification by the Chief Financial Officer of the Registrant. |
(1) | Incorporated by reference to the Registration Statement onForm S-1 filed by the Registrant on March 3, 1993 (FileNo. 33-58974). | |
(2) | Incorporated by reference to exhibit Amendment No. 1 to the Registration Statement on FormS-1 filed by the Registrant on March 17, 1993 (FileNo. 33-58974). | |
(3) | Indicates management compensatory plan, contract or arrangement. | |
(4) | Incorporated by reference to the Registrant’s Quarterly Report onForm 10-Q for the quarter ended February 29, 2000. | |
(5) | Incorporated by reference to the Registration Statement onForm S-8 (FileNo. 333-37701) filed by the Registrant on October 10, 1997. | |
(6) | Incorporated by reference to the Registrant’sForm 8-A (FileNo. 001-14063) filed October 19, 2001. | |
(7) | Incorporated by reference to the Registrant’sForm S-8 (FileNo. 333-98291) filed by the Registrant on August 16, 2002. | |
(8) | Incorporated by reference to the Registrant’sForm S-8 (FileNo. 333-98299) filed by the Registrant on August 16, 2002. | |
(9) | Incorporated by reference to the Registrant’s Current Report onForm 8-K filed by the Registrant on July 21, 2003. | |
(10) | Incorporated by reference to the Registrant’sForm S-8 (FileNo. 333-106123) filed by the Registrant on June 13, 2003. | |
(11) | Incorporated by reference to the Registrant’s Annual Report onForm 10-K for the fiscal year ended August 31, 2004. | |
(12) | ||
Incorporated by reference to the Registrant’s Annual Report onForm 10-K for the fiscal year ended August 31, 2009. | ||
(13) | Incorporated by reference to the Registrant’s Annual Report onForm 10-K for the fiscal year ended August 31, 2005. | |
(14) | Incorporated by reference to the Registrant’s Annual Report onForm 10-K for the fiscal year ended August 31, 2007. | |
Incorporated by reference to the Registrant’s Current Report onForm 8-K filed by the Registrant on October 29, 2008. | ||
(16) | Incorporated by reference to the Registrant’s Current Report onForm 8-K filed by the Registrant on January 17, 2008. | |
(17) | Incorporated by reference to the Registrant’s Annual Report onForm 10-K for the fiscal year ended August 31, 2008. | |
(18) | Incorporated by reference to the Registrant’s Current Report onForm 8-K filed by the Registrant on August 12, 2009. | |
(19) | Incorporated by reference to the Registrant’s Current Report onForm 8-K filed by the Registrant on August 4, 2009. | |
(20) | Incorporated by reference to the Registrant’s Current Report onForm 8-K filed by the Registrant on August 3, 2010. |