Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Aug. 31, 2013 | Oct. 08, 2013 | Feb. 28, 2013 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Aug-13 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JBL | ||
Entity Registrant Name | JABIL CIRCUIT INC | ||
Entity Central Index Key | 898293 | ||
Current Fiscal Year End Date | -23 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 203,165,430 | ||
Entity Public Float | $3.70 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,011,373 | $1,217,256 |
Accounts receivable, net of allowance for doubtful accounts | 1,281,425 | 1,125,015 |
Inventories | 2,302,155 | 2,268,949 |
Prepaid expenses and other current assets | 1,165,984 | 989,326 |
Income taxes receivable | 13,048 | 10,949 |
Deferred income taxes | 46,260 | 27,833 |
Total current assets | 5,820,245 | 5,639,328 |
Property, plant and equipment, net of accumulated depreciation | 2,395,598 | 1,779,155 |
Goodwill | 436,205 | 95,018 |
Intangible assets, net of accumulated amortization | 304,230 | 119,053 |
Deferred income taxes | 94,069 | 73,411 |
Other assets | 103,434 | 97,176 |
Total assets | 9,153,781 | 7,803,141 |
Current liabilities: | ||
Current installments of notes payable, long-term debt and capital lease obligations | 215,536 | 18,031 |
Accounts payable | 3,301,235 | 2,992,865 |
Accrued compensation and employee benefits | 437,587 | 296,889 |
Other accrued expenses | 863,491 | 511,591 |
Income taxes payable | 40,332 | 35,665 |
Deferred income taxes | 6,253 | 3,955 |
Total current liabilities | 4,864,434 | 3,858,996 |
Notes payable, long-term debt and capital lease obligations, less current installments | 1,690,426 | 1,658,326 |
Other liabilities | 89,813 | 85,714 |
Income tax liabilities | 80,368 | 68,525 |
Deferred income taxes | 73,173 | 24,245 |
Total liabilities | 6,798,214 | 5,695,806 |
Commitments and contingencies | ||
Jabil Circuit, Inc. stockholders' equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and outstanding | ||
Common stock, $0.001 par value, authorized 500,000,000 shares; 237,732,562 and 232,069,203 shares issued and 203,164,870 and 206,028,577 shares outstanding at August 31, 2013 and August 31, 2012, respectively | 238 | 232 |
Additional paid-in capital | 1,853,409 | 1,752,847 |
Retained earnings | 1,071,175 | 766,934 |
Accumulated other comprehensive income | 81,248 | 106,275 |
Treasury stock at cost, 34,567,692 and 26,040,626 shares at August 31, 2013 and August 31, 2012, respectively | -670,783 | -521,231 |
Total Jabil Circuit, Inc. stockholders' equity | 2,335,287 | 2,105,057 |
Noncontrolling interests | 20,280 | 2,278 |
Total equity | 2,355,567 | 2,107,335 |
Total liabilities and equity | $9,153,781 | $7,803,141 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 237,732,562 | 232,069,203 |
Common stock, shares outstanding | 203,164,870 | 206,028,577 |
Treasury stock, shares | 34,567,692 | 26,040,626 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Statement [Abstract] | |||
Net revenue | $18,336,894 | $17,151,941 | $16,518,827 |
Cost of revenue | 16,977,032 | 15,842,896 | 15,264,257 |
Gross profit | 1,359,862 | 1,309,045 | 1,254,570 |
Operating expenses: | |||
Selling, general and administrative | 688,752 | 644,452 | 590,572 |
Research and development | 28,468 | 25,837 | 25,034 |
Amortization of intangibles | 16,154 | 16,825 | 22,051 |
Restructuring and related charges | 89,453 | 628 | |
Impairment of notes receivable and related charges | 25,597 | ||
Settlement of receivables and related charges | 13,607 | ||
Loss on disposal of subsidiaries | 23,944 | ||
Operating income | 511,438 | 621,931 | 578,734 |
Other expense | 6,213 | 8,943 | 2,986 |
Interest income | -1,901 | -2,041 | -3,132 |
Interest expense | 121,062 | 106,129 | 97,693 |
Income before income tax | 386,064 | 508,900 | 481,187 |
Income tax expense | 15,973 | 112,811 | 98,229 |
Net income | 370,091 | 396,089 | 382,958 |
Net (loss) income attributable to noncontrolling interests, net of income tax expense | -1,391 | 1,402 | 1,895 |
Net income attributable to Jabil Circuit, Inc. | $371,482 | $394,687 | $381,063 |
Earnings per share attributable to the stockholders of Jabil Circuit, Inc.: | |||
Basic | $1.83 | $1.91 | $1.78 |
Diluted | $1.79 | $1.87 | $1.73 |
Weighted average shares outstanding: | |||
Basic | 203,096 | 206,160 | 214,502 |
Diluted | 207,815 | 211,181 | 220,719 |
Cash dividends declared per share | $0.32 | $0.32 | $0.28 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $370,091 | $396,089 | $382,958 |
Other comprehensive income: | |||
Foreign currency translation adjustment | -23,522 | -79,323 | 60,026 |
Changes in fair value of derivative instruments, net of tax | -182 | 2,637 | 4,260 |
Reclassification of net losses realized and included in net income related to derivative instruments, net of tax | 2,285 | 1,382 | 654 |
Actuarial (loss) gains, net of tax | -4,475 | -13,094 | 7,709 |
Prior service cost, net of tax | 867 | -33 | -5 |
Total other comprehensive (loss) income | -25,027 | -88,431 | 72,644 |
Comprehensive income | 345,064 | 307,658 | 455,602 |
Comprehensive (loss) income attributable to noncontrolling interests | -1,391 | 1,402 | 1,895 |
Comprehensive income attributable to Jabil Circuit, Inc. | $346,455 | $306,256 | $453,707 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interests |
In Thousands, except Share data | |||||||
Beginning Balance at Aug. 31, 2010 | $1,592,772 | $220 | $1,541,507 | $123,303 | $122,062 | ($209,046) | $14,726 |
Beginning Balance (in shares) at Aug. 31, 2010 | 210,496,989 | ||||||
Shares issued upon exercise of stock options (in shares) | 1,425,210 | ||||||
Shares issued upon exercise of stock options | 20,523 | 1 | 20,522 | ||||
Shares issued under employee stock purchase plan (in shares) | 824,913 | ||||||
Shares issued under employee stock purchase plan | 11,121 | 2 | 11,119 | ||||
Vesting of restricted stock awards | 2,870,974 | ||||||
Vesting of restricted stock awards | 2 | -2 | |||||
Purchases of treasury stock under employee stock plans | -9,763 | -9,763 | |||||
Purchases of treasury stock under employee stock plans (in shares) | -681,446 | ||||||
Treasury shares purchased | -200,226 | -200,226 | |||||
Treasury shares purchased (in shares) | -11,520,137 | ||||||
Recognition of stock-based compensation | 76,205 | 76,205 | |||||
Excess tax benefit of stock awards | 80 | 80 | |||||
Declared dividends | -62,573 | -62,573 | |||||
Comprehensive income | 455,602 | 381,063 | 72,644 | 1,895 | |||
Foreign currency adjustments attributable to noncontrolling interests | 82 | 82 | |||||
Ending Balance at Aug. 31, 2011 | 1,883,823 | 225 | 1,649,431 | 441,793 | 194,706 | -419,035 | 16,703 |
Ending Balance (in shares) at Aug. 31, 2011 | 203,416,503 | ||||||
Shares issued upon exercise of stock options (in shares) | 959,796 | ||||||
Shares issued upon exercise of stock options | 13,247 | 1 | 13,246 | ||||
Shares issued under employee stock purchase plan (in shares) | 754,598 | ||||||
Shares issued under employee stock purchase plan | 12,754 | 1 | 12,753 | ||||
Vesting of restricted stock awards | 5,700,819 | ||||||
Vesting of restricted stock awards | 5 | -5 | |||||
Purchases of treasury stock under employee stock plans | -31,205 | -31,205 | |||||
Purchases of treasury stock under employee stock plans (in shares) | -1,590,721 | ||||||
Treasury shares purchased | -70,991 | -70,991 | |||||
Treasury shares purchased (in shares) | -3,212,418 | ||||||
Recognition of stock-based compensation | 81,255 | 81,255 | |||||
Excess tax benefit of stock awards | 825 | 825 | |||||
Declared dividends | -69,213 | -69,213 | |||||
Comprehensive income | 307,935 | 394,687 | -88,154 | 1,402 | |||
Declared dividends to noncontrolling interests | -333 | -333 | |||||
Purchase of noncontrolling interests | -20,501 | -4,658 | -277 | -15,566 | |||
Capital contribution of noncontrolling interests | 300 | 300 | |||||
Foreign currency adjustments attributable to noncontrolling interests | -561 | -561 | |||||
Ending Balance at Aug. 31, 2012 | 2,107,335 | 232 | 1,752,847 | 766,934 | 106,275 | -521,231 | 2,278 |
Ending Balance (in shares) at Aug. 31, 2012 | 206,028,577 | 206,028,577 | |||||
Shares issued upon exercise of stock options (in shares) | 256,419 | ||||||
Shares issued upon exercise of stock options | 3,366 | 5 | 3,361 | ||||
Shares issued under employee stock purchase plan (in shares) | 8,273,921 | 902,691 | |||||
Shares issued under employee stock purchase plan | 14,919 | 1 | 14,918 | ||||
Vesting of restricted stock awards | 4,504,249 | ||||||
Purchases of treasury stock under employee stock plans | -20,290 | -20,290 | |||||
Purchases of treasury stock under employee stock plans (in shares) | -1,184,162 | ||||||
Treasury shares purchased | -129,262 | -129,262 | |||||
Treasury shares purchased (in shares) | -7,342,904 | ||||||
Recognition of stock-based compensation | 67,824 | 67,824 | |||||
Excess tax benefit of stock awards | 14,459 | 14,459 | |||||
Declared dividends | -67,241 | -67,241 | |||||
Comprehensive income | 345,064 | 371,482 | -25,027 | -1,391 | |||
Acquisition of noncontrolling interests | 36,548 | 36,548 | |||||
Purchase of noncontrolling interests | -17,500 | -17,500 | |||||
Capital contribution of noncontrolling interests | 316 | 316 | |||||
Foreign currency adjustments attributable to noncontrolling interests | 29 | 29 | |||||
Ending Balance at Aug. 31, 2013 | $2,355,567 | $238 | $1,853,409 | $1,071,175 | $81,248 | ($670,783) | $20,280 |
Ending Balance (in shares) at Aug. 31, 2013 | 203,164,870 | 203,164,870 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Cash flows from operating activities: | |||
Net income | $370,091 | $396,089 | $382,958 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 418,117 | 353,492 | 319,179 |
Recognition of stock-based compensation expense | 68,383 | 81,405 | 76,230 |
Deferred income taxes | -123,165 | -9,201 | 2,266 |
Impairment of notes receivable and related charges | 25,597 | ||
Excess tax benefit related to stock awards | -14,605 | -885 | -180 |
Loss on disposal of subsidiaries | 23,944 | ||
Settlement of receivables and related charges | 12,673 | ||
Other, net | 12,616 | 25,563 | 10,718 |
Change in operating assets and liabilities, exclusive of net assets acquired: | |||
Accounts receivable | 750 | -22,626 | 48,232 |
Inventories | 50,229 | -53,268 | -158,545 |
Prepaid expenses and other current assets | -82,756 | -141,526 | -212,265 |
Other assets | -5,025 | -2,745 | 3,205 |
Accounts payable and accrued expenses | 485,972 | 21,955 | 305,814 |
Income taxes payable | 7,685 | -14,027 | 13,780 |
Net cash provided by operating activities | 1,213,889 | 634,226 | 828,009 |
Cash flows from investing activities: | |||
Acquisition of property, plant and equipment | -736,858 | -497,697 | -458,989 |
Cash paid for business and intangible asset acquisitions, net of cash acquired | -650,054 | -125,098 | 3,985 |
Proceeds from sale of property, plant and equipment | 15,792 | 16,408 | 23,483 |
Proceeds from disposal of available for sale investments | 5,800 | ||
Cost of receivables acquired, net of cash collections | 517 | -557 | |
Investments in non-marketable equity securities | -3,342 | ||
Net cash used in investing activities | -1,374,462 | -605,870 | -426,278 |
Cash flows from financing activities: | |||
Borrowings under debt agreements | 5,764,400 | 9,233,414 | 7,572,157 |
Payments toward debt agreements | -5,586,738 | -8,748,420 | -7,586,754 |
Payments to acquire treasury stock | -129,262 | -70,991 | -200,226 |
Dividends paid to stockholders | -67,181 | -65,240 | -60,411 |
Dividends paid to noncontrolling interest | -333 | ||
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 18,285 | 26,003 | 31,644 |
Debt issuance costs | -6,254 | -14,549 | |
Treasury stock minimum tax withholding related to vesting of restricted stock | -20,290 | -31,205 | -9,763 |
Cash paid to purchase noncontrolling interest | -17,500 | -20,501 | |
Excess tax benefit related to stock awards | 14,605 | 885 | 180 |
Capital contribution to noncontrolling interest | 316 | ||
Bank overdraft | 372 | ||
Net cash (used in) provided by financing activities | -22,993 | 317,358 | -267,722 |
Effect of exchange rate changes on cash and cash equivalents | -22,317 | -17,069 | 10,273 |
Net (decrease) increase in cash and cash equivalents | -205,883 | 328,645 | 144,282 |
Cash and cash equivalents at beginning of fiscal year | 1,217,256 | 888,611 | 744,329 |
Cash and cash equivalents at end of fiscal year | 1,011,373 | 1,217,256 | 888,611 |
Supplemental disclosure information: | |||
Interest paid, net of capitalized interest | 102,614 | 95,488 | 84,956 |
Income taxes paid, net of refunds received | $128,780 | $139,094 | $81,228 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies | ||||||||||||
Jabil Circuit, Inc. (together with its subsidiaries, herein referred to as the “Company”) is an independent provider of electronic manufacturing services and solutions. The Company provides comprehensive electronics design, production and product management services to companies in the aerospace, automotive, computing, consumer, defense, healthcare, industrial, instrumentation, medical, networking, packaging, peripherals, solar, storage and telecommunications industries. The Company’s services combine a highly automated, continuous flow manufacturing approach with advanced electronic design and design for manufacturability technologies. The Company is headquartered in St. Petersburg, Florida and has manufacturing operations in the Americas, Europe and Asia. | |||||||||||||
Significant accounting policies followed by the Company are as follows: | |||||||||||||
a. Principles of Consolidation and Basis of Presentation | |||||||||||||
The consolidated financial statements include the accounts and operations of the Company, and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) necessary to present fairly the information have been included. Certain amounts in the prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. | |||||||||||||
b. Use of Accounting Estimates | |||||||||||||
Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements. They also affect the reported amounts of net income. Actual results could differ materially from these estimates and assumptions. | |||||||||||||
c. Cash and Cash Equivalents | |||||||||||||
The Company considers all highly liquid instruments with original maturities of 90 days or less to be cash equivalents for consolidated financial statement purposes. Cash equivalents consist of investments in money market funds with original maturities of 90 days or less. At August 31, 2013 and 2012 there were $6.5 million and $374.3 million of cash equivalents, respectively. Management considers the carrying value of cash and cash equivalents to be a reasonable approximation of fair value given the short-term nature of these financial instruments. | |||||||||||||
d. Inventories | |||||||||||||
Inventories are stated at the lower of cost (the first in, first out (FIFO) method for manufacturing operations and the average method for aftermarket services operations) or market. | |||||||||||||
e. Property, Plant and Equipment, net | |||||||||||||
Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are as follows: | |||||||||||||
Asset Class | Estimated Useful Life | ||||||||||||
Buildings | Up to 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 | ||||||||||||
Certain equipment held under capital leases is classified as property, plant and equipment and the related obligation is recorded as notes payable, long-term debt and capital lease obligations on the Consolidated Balance Sheets. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Operations. Maintenance and repairs are expensed as they are incurred. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. | |||||||||||||
f. Goodwill and Other Intangible Assets | |||||||||||||
The Company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired. Business combinations can also result in other intangible assets being recognized. Amortization of intangible assets, if applicable, occurs over the estimated useful life of the asset. The Company tests goodwill for impairment at least annually or more frequently under certain circumstances, using a two-step method. The Company conducts this review during the fourth quarter of each fiscal year absent any triggering events. Furthermore, identifiable intangible assets that are determined to have indefinite useful economic lives are not amortized, but are separately tested for impairment at least annually, using a one-step fair value based approach or when certain indicators of impairment are present. | |||||||||||||
g. Impairment of Long-lived Assets | |||||||||||||
Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparison of its carrying amount to undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value which is generally determined as the present value of estimated future cash flows or as the appraised value. | |||||||||||||
h. Revenue Recognition | |||||||||||||
The Company’s net revenue is principally from the manufacturing services of electronic equipment built to customer specifications. The Company also derives revenue to a lesser extent from aftermarket services, design services and excess inventory sales. Revenue from manufacturing services and excess inventory sales is generally recognized, net of estimated product return costs, when goods are shipped; title and risk of ownership have passed; the price to the buyer is fixed or determinable; and collectability is reasonably assured. Aftermarket service related revenue is generally recognized upon completion of the services. Design service related revenue is generally recognized upon completion and acceptance by the respective customer. The Company generally assumes no significant obligations after product shipment. Taxes that are collected from the Company’s customers and remitted to governmental authorities are presented within the Company’s Consolidated Statement of Operations on a net basis. | |||||||||||||
i. Accounts Receivable | |||||||||||||
Accounts receivable consist of trade receivables, notes receivable and miscellaneous receivables. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. Allowances of $2.7 million and $3.2 million were recorded at August 31, 2013 and 2012, respectively. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for doubtful accounts are made as necessary. | |||||||||||||
j. Income Taxes | |||||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company has considered future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. | |||||||||||||
k. Earnings Per Share | |||||||||||||
The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share data). | |||||||||||||
Fiscal Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Jabil Circuit, Inc. | $ | 371,482 | $ | 394,687 | $ | 381,063 | |||||||
Denominator for basic and diluted earnings per share: | |||||||||||||
Weighted-average common shares outstanding | 203,096 | 206,160 | 212,386 | ||||||||||
Share-based payment awards classified as participating securities | — | — | 2,116 | ||||||||||
Denominator for basic earnings per share | 203,096 | 206,160 | 214,502 | ||||||||||
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights | 33 | 315 | 872 | ||||||||||
Dilutive unvested restricted stock awards | 4,686 | 4,706 | 5,345 | ||||||||||
Denominator for diluted earnings per share | 207,815 | 211,181 | 220,719 | ||||||||||
Earnings per share: | |||||||||||||
Income attributable to the stockholders of Jabil Circuit, Inc.: | |||||||||||||
Basic | $ | 1.83 | $ | 1.91 | $ | 1.78 | |||||||
Diluted | $ | 1.79 | $ | 1.87 | $ | 1.73 | |||||||
For fiscal year 2013, options to purchase 3,664,364 shares of common stock and 4,485,266 stock appreciation rights were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. | |||||||||||||
For fiscal year 2012, options to purchase 3,748,037 shares of common stock and 4,930,935 stock appreciation rights were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. | |||||||||||||
For fiscal year 2011, there were no shares of common stock or stock appreciation rights excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. | |||||||||||||
l. Foreign Currency Transactions | |||||||||||||
For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved and remeasurement adjustments for foreign operations where the U.S. dollar is the functional currency are included in operating income. | |||||||||||||
m. Fair Value of Financial Instruments | |||||||||||||
The three levels of the fair-value hierarchy include: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 above that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. | |||||||||||||
The carrying amounts of cash and cash equivalents, trade accounts receivable, income taxes receivable, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short-term nature of these financial instruments. Refer to Note 2 – “Trade Accounts Receivable Securitization and Sale Programs”, Note 7 – “Notes Payable, Long-Term Debt and Capital Lease Obligations”, Note 8 – “Postretirement and Other Employee Benefits”, Note 12 –“Derivative Financial Instruments and Hedging Activities” and Note 15 – “Loss on Disposal of Subsidiaries” for disclosure surrounding the fair value of the Company’s deferred purchase price receivables, debt obligations, pension plan assets, derivative financial instruments and notes receivable, respectively. | |||||||||||||
n. Stock-Based Compensation | |||||||||||||
The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The Company recorded $68.4 million, $81.4 million and $76.2 million of stock-based compensation expense gross of tax effects, which is included in selling, general and administrative expenses within the Consolidated Statements of Operations for fiscal years 2013, 2012, and 2011, respectively. The Company recorded an additional tax (expense) benefit related to the stock-based compensation expense of $(0.1) million, $1.4 million and $1.2 million, which is included in income tax expense within the Consolidated Statements of Operations for fiscal years 2013, 2012, and 2011, respectively. Included in the compensation expense recognized by the Company is $4.4 million, $4.4 million and $3.8 million related to the Company’s employee stock purchase plan (“ESPP”) during fiscal years 2013, 2012, and 2011, respectively. The Company capitalizes stock-based compensation costs related to awards granted to employees whose compensation costs are directly attributable to the cost of inventory. At August 31, 2013 and 2012, $0.3 million of stock-based compensation costs were classified as inventories on the Consolidated Balance Sheets. | |||||||||||||
Cash received from exercises under all share-based payment arrangements, including the Company’s ESPP, for fiscal years 2013, 2012, and 2011 was $18.3 million, $26.0 million and $31.6 million, respectively. The proceeds for fiscal years 2013, 2012, and 2011 were offset by $20.3 million, $31.2 million and $9.8 million, respectively, of restricted shares withheld by the Company to satisfy the minimum amount of its income tax withholding requirements. The fair value of the restricted shares withheld was determined on the date that the restricted shares vested and resulted in the withholding of 1,184,162 shares, 1,590,721 shares and 681,446 shares of the Company’s common stock during the 12 months ended August 31, 2013, 2012, and 2011, respectively. The shares have been classified as treasury stock on the Consolidated Balance Sheets. The Company currently expects to satisfy share-based awards with registered shares available to be issued. | |||||||||||||
See Note 10 – “Stockholders’ Equity” for further discussion of stock-based compensation expense. | |||||||||||||
o. Comprehensive Income | |||||||||||||
Comprehensive income is the changes in equity of an enterprise except those resulting from stockholder transactions. | |||||||||||||
Accumulated other comprehensive income consists of the following (in thousands): | |||||||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Foreign currency translation adjustment | $ | 125,594 | $ | 149,116 | |||||||||
Unrecognized losses on derivative instruments, net of tax | (5,050 | ) | (7,153 | ) | |||||||||
Actuarial loss, net of tax | (40,258 | ) | (35,783 | ) | |||||||||
Prior service cost, net of tax | 962 | 95 | |||||||||||
$ | 81,248 | $ | 106,275 | ||||||||||
The actuarial loss and prior service cost recorded to accumulated other comprehensive income at August 31, 2013 are net of a tax benefit (loss) of $6.9 million and $(0.3) million, respectively. The actuarial loss and prior service cost recorded to accumulated other comprehensive income at August 31, 2012 are net of a tax benefit (loss) of $6.2 million and $(32.0) thousand, respectively. The unrecognized losses on derivative instruments recorded to accumulated other comprehensive income during fiscal years 2013 and 2012 are net of tax benefits of $14.1 million and $14.8 million, respectively. | |||||||||||||
p. Derivative Instruments | |||||||||||||
All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The Company does not intend to use derivative financial instruments for speculative purposes. Generally, if a derivative instrument is designated as a cash flow hedge, the change in the fair value of the derivative is recorded in other comprehensive income to the extent the derivative is effective, and recognized in the Consolidated Statement of Operations when the hedged item affects earnings. If a derivative instrument is designated as a fair value hedge, the change in fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the current period. Changes in fair value of derivatives that are not designated as hedges are recorded in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Refer to Note 12 – “Derivative Financial Instruments and Hedging Activities” for further discussion surrounding the Company’s derivative instruments. |
Trade_Accounts_Receivable_Secu
Trade Accounts Receivable Securitization and Sale Programs | 12 Months Ended |
Aug. 31, 2013 | |
Transfers And Servicing [Abstract] | |
Trade Accounts Receivable Securitization and Sale Programs | 2. Trade Accounts Receivable Securitization and Sale Programs |
The Company regularly sells designated pools of trade accounts receivable under two asset-backed securitization programs, a factoring program, a committed trade accounts receivable sale program and two uncommitted trade accounts receivable sale programs (collectively referred to herein as the “programs”). The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the programs. Servicing fees related to each of the programs recognized during the fiscal years ended August 31, 2013, 2012 and 2011, were not material. The Company does not record a servicing asset or liability on the Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. | |
Transfers of the receivables under the programs are accounted for as sales and, accordingly, net receivables sold under the programs are excluded from accounts receivable on the Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. | |
a. Asset-Backed Securitization Programs | |
The Company continuously sells designated pools of trade accounts receivable under its North American asset-backed securitization program, currently scheduled to expire on October 21, 2014, and its foreign asset-backed securitization program, currently scheduled to expire on May 15, 2015, (collectively referred to herein as the “asset-backed securitization programs”) to special purpose entities, which in turn sell 100% of the receivables to conduits administered by unaffiliated financial institutions (for the North American asset-backed securitization program) and an unaffiliated financial institution (for the foreign asset-backed securitization program). The special purpose entity in the North American asset-backed securitization program is a wholly-owned subsidiary of the Company. The special purpose entity in the foreign asset-backed securitization program is a separate bankruptcy-remote entity whose assets would be first available to satisfy the creditor claims of the unaffiliated financial institution. The Company is deemed the primary beneficiary of this special purpose entity as the Company has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, the special purpose entities associated with these asset-backed securitization programs are included in the Company’s Consolidated Financial Statements. Any portion of the purchase price for the receivables which is not paid in cash upon the sale taking place is recorded as a deferred purchase price receivable, which is paid as payments on the receivables are collected. Net cash proceeds of up to a maximum of $300.0 million for the North American asset-backed securitization program and $200.0 million for the foreign asset-backed securitization program are available at any one time. | |
In connection with the asset-backed securitization programs, the Company sold $9.0 billion, $8.4 billion and $6.7 billion of eligible trade accounts receivable during the fiscal years ended August 31, 2013, 2012 and 2011, respectively. In exchange, the Company received cash proceeds of $8.5 billion, $8.0 billion and $6.3 billion during the fiscal years ended August 31, 2013, 2012 and 2011, respectively (of which approximately $54.2 million, $0 and $14.1 million, respectively represented new transfers and the remainder proceeds from collections reinvested in revolving-period transfers), and a deferred purchase price receivable. At August 31, 2013, 2012 and 2011, the deferred purchase price receivable recorded in connection with the asset-backed securitization programs totaled approximately $541.2 million, $477.5 million and $439.1 million, respectively. Prior to the amendments that were effective during the first quarter of fiscal year 2011 for the North American asset-backed securitization program and during the third quarter of fiscal year 2011 for the foreign asset-backed securitization program, the asset-backed securitization programs were accounted for as secured borrowings. As such, the Company recorded interest expense of $1.4 million in the Consolidated Statement of Operations for the fiscal year ended August 31, 2011. The asset-backed securitization programs require compliance with several covenants. The North American asset-backed securitization program covenants include compliance with the Amended and Restated Credit Facility’s interest coverage ratio and debt to EBITDA ratio. The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. | |
The Company recognized pretax losses on the sales of receivables under the asset-backed securitization programs of approximately $4.3 million, $5.6 million and $3.4 million during the fiscal years ended August 31, 2013, 2012 and 2011, respectively, which are recorded to other expense within the Consolidated Statements of Operations. | |
The deferred purchase price receivables recorded under the asset-backed securitization programs are recorded initially at fair value as prepaid expenses and other current assets on the Consolidated Balance Sheets and are valued using unobservable inputs (Level 3 inputs), primarily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on the fair value calculations of the deferred purchase price receivables. | |
b. Trade Accounts Receivable Factoring Agreement | |
In connection with a factoring agreement, the Company transfers ownership of eligible trade accounts receivable of a foreign subsidiary without recourse to a third party purchaser in exchange for cash. Proceeds from the transfer reflect the face value of the account less a discount. The discount is recorded as a loss to other expense within the Consolidated Statements of Operations in the period of the sale. In April 2013, the factoring agreement was extended through September 30, 2013, at which time it was automatically renewed for an additional six-month period. | |
The Company sold $31.2 million, $76.0 million and $68.5 million of trade accounts receivable during fiscal years 2013, 2012 and 2011, respectively, and in exchange, received cash proceeds of $31.2 million, $76.0 million and $68.4 million, respectively. The resulting losses on the sales of trade accounts receivables sold under this factoring agreement for fiscal years 2013, 2012 and 2011 were not material, and were recorded to other expense within the Consolidated Statements of Operations. | |
c. Trade Accounts Receivable Sale Programs | |
In connection with three separate trade accounts receivable sale agreements with unaffiliated financial institutions, the Company may elect to sell, at a discount, on an ongoing basis, up to a maximum of $200.0 million, $150.0 million and $40.0 million, respectively, of specific trade accounts receivable at any one time. The $200.0 million trade accounts receivable sale agreement is a committed facility that amended and restated a previously existing uncommitted facility during the first quarter of fiscal year 2013 to change the facility to a committed facility and to reduce the capacity from $250.0 million to $200.0 million. The $200.0 million trade accounts receivable sale agreement was renewed during the third quarter of fiscal year 2013 and is scheduled to expire on November 30, 2013. The $150.0 million trade accounts receivable sale agreement is an uncommitted facility that was entered into during the first quarter of fiscal year 2013 and is scheduled to expire on November 28, 2013. The $40.0 million trade accounts receivable sale agreement is an uncommitted facility scheduled to expire no later than June 1, 2015, though either party may elect to cancel the agreement by giving prior written notification to the other party of no less than 30 days. | |
During fiscal years 2013, 2012 and 2011, the Company sold $2.4 billion, $2.1 billion and $2.4 billion of trade accounts receivable under these programs, respectively. In exchange, the Company received cash proceeds of $2.4 billion, $2.1 billion and $2.4 billion, respectively. The resulting losses on the sales of trade accounts receivable during fiscal years 2013, 2012 and 2011 were not material and were recorded to other expense within the Consolidated Statements of Operations. |
Inventories
Inventories | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 3. Inventories | ||||||||
Inventories consist of the following (in thousands): | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 1,412,948 | $ | 1,534,182 | |||||
Work in process | 548,096 | 444,721 | |||||||
Finished goods | 341,111 | 290,046 | |||||||
$ | 2,302,155 | $ | 2,268,949 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||
Aug. 31, 2013 | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Income Taxes | 4. Income Taxes | ||||||||||||||
a. Provision for Income Taxes | |||||||||||||||
Income (loss) before income tax expense and noncontrolling interests is summarized below (in thousands): | |||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
U.S. | $ | (117,312 | ) | $ | (147,567 | ) | $ | (112,705 | ) | ||||||
Non-U.S. | 503,376 | 656,467 | 593,892 | ||||||||||||
$ | 386,064 | $ | 508,900 | $ | 481,187 | ||||||||||
Income tax expense (benefit) is summarized below (in thousands): | |||||||||||||||
Fiscal Year Ended August 31, | Current | Deferred | Total | ||||||||||||
2013:00:00 | U.S. – Federal | $ | 4,762 | $ | (108,779 | ) | $ | (104,017 | ) | ||||||
U.S. – State | 567 | 3,391 | 3,958 | ||||||||||||
Non-U.S. | 136,602 | (20,570 | ) | 116,032 | |||||||||||
$ | 141,931 | $ | (125,958 | ) | $ | 15,973 | |||||||||
2012:00:00 | U.S. – Federal | $ | 2,240 | $ | 2,172 | $ | 4,412 | ||||||||
U.S. – State | 279 | 462 | 741 | ||||||||||||
Non-U.S. | 125,646 | (17,988 | ) | 107,658 | |||||||||||
$ | 128,165 | $ | (15,354 | ) | $ | 112,811 | |||||||||
2011:00:00 | U.S. – Federal | $ | (8,937 | ) | $ | 4,123 | $ | (4,814 | ) | ||||||
U.S. – State | 1,103 | 97 | 1,200 | ||||||||||||
Non-U.S. | 102,826 | (983 | ) | 101,843 | |||||||||||
$ | 94,992 | $ | 3,237 | $ | 98,229 | ||||||||||
Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to the actual income tax expense are summarized below (in thousands): | |||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Tax at U.S. federal statutory income tax rate (35%) | $ | 135,122 | $ | 178,115 | $ | 168,416 | |||||||||
State income taxes, net of federal tax benefit | (6,285 | ) | (4,013 | ) | (2,688 | ) | |||||||||
Impact of foreign tax rates | (141,443 | ) | (116,198 | ) | (94,392 | ) | |||||||||
Permanent impact of non-deductible cost | 13,212 | 2,147 | 4,639 | ||||||||||||
Income tax credits | (8,643 | ) | (13,125 | ) | (38,707 | ) | |||||||||
Changes in tax rates on deferred tax assets and liabilities | 7,416 | (9,048 | ) | 10,147 | |||||||||||
Valuation allowance | (47,294 | ) | 57,743 | 17,277 | |||||||||||
Non-deductible equity compensation | 21,410 | 6,655 | 7,581 | ||||||||||||
Impact of intercompany charges | 30,106 | 1,742 | 12,658 | ||||||||||||
Other, net | 12,372 | 8,793 | 13,298 | ||||||||||||
Total income tax expense | $ | 15,973 | $ | 112,811 | $ | 98,229 | |||||||||
The valuation allowance decrease from the previous period is primarily related to a $104.0 million partial release of the U.S. valuation allowance related to the U.S. deferred tax liabilities from the Nypro acquisition, which represent future sources of taxable income to support the realization of the deferred tax assets. | |||||||||||||||
The Company has been granted tax incentives for its Brazilian, Malaysian, Polish, Singaporean and Vietnamese subsidiaries. The material tax incentives expire through 2020 and are subject to certain conditions with which the Company expects to comply. These subsidiaries generated income during the fiscal years ended August 31, 2013, 2012 and 2011, resulting in a tax benefit of approximately $52.4 million ($0.26 per basic share), $42.1 million ($0.20 per basic share) and $59.0 million ($0.28 per basic share), respectively. The benefits of these incentives are recorded as the impact of foreign tax rates and income tax credits. | |||||||||||||||
b. Deferred Tax Assets and Liabilities | |||||||||||||||
The current and noncurrent net deferred tax assets are summarized below (in thousands): | |||||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Current deferred tax assets | $ | 46,260 | $ | 27,833 | |||||||||||
Current deferred tax liabilities | (6,253 | ) | (3,955 | ) | |||||||||||
Noncurrent deferred tax assets | 94,069 | 73,411 | |||||||||||||
Noncurrent deferred tax liabilities | (73,173 | ) | (24,245 | ) | |||||||||||
Total net deferred tax assets | $ | 60,903 | $ | 73,044 | |||||||||||
The significant components of the deferred tax assets and liabilities are summarized below (in thousands): | |||||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Deferred tax assets: | |||||||||||||||
Net operating loss carry forward | $ | 293,008 | $ | 280,196 | |||||||||||
Receivables | 3,638 | 3,275 | |||||||||||||
Inventories | 11,730 | 10,909 | |||||||||||||
Compensated absences | 9,699 | 7,957 | |||||||||||||
Accrued expenses | 54,217 | 49,318 | |||||||||||||
Property, plant and equipment, principally due to differences in depreciation and amortization | 4,606 | 12,644 | |||||||||||||
U.S. federal and state tax credits | 32,402 | 18,708 | |||||||||||||
Foreign jurisdiction tax credits | 18,617 | 13,587 | |||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Equity compensation – U.S. | 60,765 | 65,800 | |||||||||||||
Equity compensation – Non-U.S. | 8,886 | 8,807 | |||||||||||||
Cash flow hedges | 7,455 | 8,616 | |||||||||||||
Intangible assets | — | 69,885 | |||||||||||||
Capital loss carryforward | 8,643 | 8,845 | |||||||||||||
Other | 21,759 | 12,362 | |||||||||||||
Total deferred tax assets before valuation allowances | 535,425 | 570,909 | |||||||||||||
Less valuation allowances | (318,611 | ) | (487,745 | ) | |||||||||||
Net deferred tax assets | $ | 216,814 | $ | 83,164 | |||||||||||
Deferred tax liabilities: | |||||||||||||||
Unremitted earnings of non-U.S. subsidiaries | 80,000 | — | |||||||||||||
Intangible assets | 63,277 | — | |||||||||||||
Other | 12,634 | 10,120 | |||||||||||||
Total deferred tax liabilities | $ | 155,911 | $ | 10,120 | |||||||||||
Net deferred tax assets | $ | 60,903 | $ | 73,044 | |||||||||||
As of August 31, 2013, the Company had federal, state and foreign income tax net operating loss carry forwards of approximately $424.1 million, $36.8 million, and $532.3 million, respectively, which are available to reduce future taxes, if any. The net operating loss carry forwards in the Company’s major tax jurisdictions expire in fiscal years 2014 through 2033 or have an indefinite carry forward period. The Company has U.S. federal and state tax credit carry forwards of $27.6 million and $7.4 million, respectively, which are available to reduce future taxes, if any. Of the U.S. federal tax credits, $19.5 million expire through 2023, and the years of expiration for the remaining $8.1 million cannot yet be determined. Most of the U.S. state tax credits expire through the year 2026. As of August 31, 2013, the foreign jurisdiction tax credits include foreign investment tax credits of $11.5 million that expire in 2017 and are based on the deferral method. | |||||||||||||||
Based on the Company’s historical operating income, projection of future taxable income, scheduled reversal of taxable temporary differences, and tax planning strategies, management believes that it is more likely than not that the Company will realize the benefit of its deferred tax assets, net of valuation allowances recorded. The net (decreases) increases in the total valuation allowance for the fiscal years ended August 31, 2013 and 2012 were $(169.1) million and $18.7 million, respectively. The fiscal year ended August 31, 2013 decrease is primarily related to a partial release of the U.S. valuation allowance due to the U.S. deferred tax liabilities from the Nypro acquisition, expired or Internal Revenue Code Section 382 limited federal net operating loss carry forwards, expired foreign net operating loss carry forwards, and an increase in non-U.S. unrecognized tax benefits. These decreases were partially offset by net operating losses in sites with existing valuation allowances and increases related to non-U.S. entities in the Nypro acquisition. | |||||||||||||||
As of August 31, 2013, the Company intends to repatriate the Nypro pre-acquisition undistributed foreign earnings of approximately $240.0 million to the U.S. Therefore, the Company recorded a deferred tax liability of approximately $80.0 million based on the anticipated U.S. income taxes of the repatriation. The Company intends to indefinitely reinvest the remaining earnings from its foreign subsidiaries. The aggregate undistributed earnings of the Company’s foreign subsidiaries for which no deferred tax liability has been recorded is approximately $2.0 billion as of August 31, 2013. Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. | |||||||||||||||
c. Unrecognized Tax Benefits | |||||||||||||||
Reconciliations of the unrecognized tax benefits are summarized below (in thousands): | |||||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Beginning balance | $ | 116,661 | $ | 84,942 | $ | 78,140 | |||||||||
Additions for tax positions of prior years | 83,115 | 48,986 | 2,979 | ||||||||||||
Reductions for tax positions of prior years | (7,713 | ) | (10,446 | ) | (12,631 | ) | |||||||||
Additions for tax positions related to current year | 30,886 | 12,316 | 18,431 | ||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Additions for tax positions related to acquired entities | 21,000 | 3,275 | 3,648 | ||||||||||||
Cash settlements | (1,177 | ) | (7,880 | ) | (1,667 | ) | |||||||||
Reductions from lapses in statutes of limitations | (784 | ) | (2,521 | ) | (2,840 | ) | |||||||||
Reductions from settlements with taxing authorities | (20,166 | ) | (9,680 | ) | (5,349 | ) | |||||||||
Foreign exchange rate adjustment | 406 | (2,331 | ) | 4,231 | |||||||||||
Ending balance | $ | 222,228 | $ | 116,661 | $ | 84,942 | |||||||||
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $ | 75,714 | $ | 68,924 | $ | 68,859 | |||||||||
It is reasonably possible that the August 31, 2013 unrecognized tax benefits could decrease during the next 12 months by $8.1 million from cash payments and by $7.3 million related to the settlement of audits or expiration of applicable statutes of limitations. These amounts primarily relate to possible adjustments for transfer pricing, tax holidays, and certain inclusions in taxable income. | |||||||||||||||
The Company’s continuing practice is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The Company’s accrued interest and penalties were approximately $18.1 million and $9.2 million at August 31, 2013 and August 31, 2012, respectively. The Company recognized (derecognized) interest and penalties of approximately $8.9 million, $(14.5) million and $5.2 million during the fiscal years ended August 31, 2013, 2012 and 2011, respectively. The Company is no longer subject to U.S. federal income tax examinations for fiscal years before August 31, 2009. In addition, the Company is also subject to audits by state, local, and non-U.S. taxing authorities. In major state and major non-U.S. jurisdictions, the Company is no longer subject to income tax examinations for fiscal years before August 31, 2003. | |||||||||||||||
The Internal Revenue Service (“IRS”) completed its field examination of the Company’s tax returns for the fiscal years 2003 through 2005 and fiscal years 2006 through 2008 and issued Revenue Agent’s Reports (“RAR”) on April 30, 2010 and April 25, 2012, respectively. The proposed adjustments primarily related to the IRS contentions that (1) certain corporate expenses relate to services provided to foreign affiliates and therefore must be charged to those affiliates and (2) valuable intangible property was transferred to certain foreign affiliates without charge. On August 30, 2013, the tax return audit for fiscal years 2003 through 2008 was effectively settled when the Company agreed to the IRS Office of Appeals’ adjustments on Form 870-AD (Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment), which were substantially lower than the initial RAR proposed adjustments. The settlement did not have a material effect on the Company’s financial position or liquidity and no additional tax liabilities were recorded. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 5. Property, Plant and Equipment | ||||||||
Property, plant and equipment consists of the following (in thousands): | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Land and improvements | $ | 113,534 | $ | 104,235 | |||||
Buildings | 710,643 | 613,843 | |||||||
Leasehold improvements | 369,792 | 235,902 | |||||||
Machinery and equipment | 2,222,257 | 1,787,071 | |||||||
Furniture, fixtures and office equipment | 131,703 | 109,767 | |||||||
Computer hardware and software | 491,211 | 442,220 | |||||||
Transportation equipment | 21,650 | 20,648 | |||||||
Construction in progress | 145,544 | 43,735 | |||||||
4,206,334 | 3,357,421 | ||||||||
Less accumulated depreciation and amortization | 1,810,736 | 1,578,266 | |||||||
$ | 2,395,598 | $ | 1,779,155 | ||||||
Depreciation expense of approximately $402.0 million, $336.7 million, and $297.1 million was recorded for fiscal years 2013, 2012 and 2011, respectively. | |||||||||
Maintenance and repair expense was approximately $162.4 million, $123.1 million, and $113.9 million for fiscal years 2013, 2012 and 2011, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets | ||||||||||||||||||||||||||||
The Company performs a goodwill impairment analysis using the two-step method on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of loss, if any. | |||||||||||||||||||||||||||||
The Company completed its annual impairment test for goodwill during the fourth quarter of fiscal year 2013 and determined the fair values of the reporting units were substantially in excess of the carrying values and that no impairment existed as of the date of the impairment test. For each annual impairment test the Company consistently determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. | |||||||||||||||||||||||||||||
The following tables present the changes in goodwill allocated to the Company’s reportable segments, Diversified Manufacturing Services (“DMS”), Enterprise & Infrastructure (“E&I”) and High Velocity Systems (“HVS”), during the fiscal years ended August 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||
August 31, 2012 | August 31, 2013 | ||||||||||||||||||||||||||||
Reportable Segment | Gross | Accumulated | Acquisitions | Foreign | Gross | Accumulated | Net Balance | ||||||||||||||||||||||
Balance | Impairment | Currency | Balance | Impairment | |||||||||||||||||||||||||
Balance | Impact | Balance | |||||||||||||||||||||||||||
DMS | $ | 643,748 | $ | (558,768 | ) | $ | 341,593 | $ | (715 | ) | $ | 984,626 | $ | (558,768 | ) | $ | 425,858 | ||||||||||||
E&I | 341,822 | (331,784 | ) | — | 309 | 342,131 | (331,784 | ) | 10,347 | ||||||||||||||||||||
HVS | 132,269 | (132,269 | ) | — | — | 132,269 | (132,269 | ) | — | ||||||||||||||||||||
Total | $ | 1,117,839 | $ | (1,022,821 | ) | $ | 341,593 | $ | (406 | ) | $ | 1,459,026 | $ | (1,022,821 | ) | $ | 436,205 | ||||||||||||
August 31, 2011 | August 31, 2012 | ||||||||||||||||||||||||||||
Reportable Segment | Gross | Accumulated | Acquisitions | Foreign | Gross | Accumulated | Net Balance | ||||||||||||||||||||||
Balance | Impairment | Currency | Balance | Impairment | |||||||||||||||||||||||||
Balance | Impact | Balance | |||||||||||||||||||||||||||
DMS | $ | 584,018 | $ | (558,768 | ) | $ | 60,942 | $ | (1,212 | ) | $ | 643,748 | $ | (558,768 | ) | $ | 84,980 | ||||||||||||
E&I | 342,733 | (331,784 | ) | — | (911 | ) | 341,822 | (331,784 | ) | 10,038 | |||||||||||||||||||
HVS | 132,269 | (132,269 | ) | — | — | 132,269 | (132,269 | ) | — | ||||||||||||||||||||
Total | $ | 1,059,020 | $ | (1,022,821 | ) | $ | 60,942 | $ | (2,123 | ) | $ | 1,117,839 | $ | (1,022,821 | ) | $ | 95,018 | ||||||||||||
Finite-lived intangible assets are amortized on a straight-line basis and consist primarily of contractual agreements and customer relationships, which are being amortized over periods of up to 15 years, intellectual property which is being amortized over periods of up to nine years and trade names which are being amortized over two years. Indefinite-lived intangible assets consist of trade names. The Company completed its annual impairment test for its indefinite-lived intangible assets during the fourth quarter of fiscal year 2013 and determined that no impairment existed as of the date of the impairment test. Significant judgments inherent in this analysis included assumptions regarding appropriate revenue growth rates, discount rates and royalty rates. No significant residual values are estimated for the amortizable intangible assets. The value of the Company’s intangible assets purchased through business acquisitions is principally determined based on valuations of the net assets acquired. The following tables present the Company’s total purchased intangible assets at August 31, 2013 and August 31, 2012 (in thousands): | |||||||||||||||||||||||||||||
August 31, 2013 | Gross | Accumulated | Net | ||||||||||||||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Contractual agreements and customer relationships | $ | 199,665 | $ | (76,341 | ) | $ | 123,324 | ||||||||||||||||||||||
Intellectual property | 137,388 | (78,997 | ) | 58,391 | |||||||||||||||||||||||||
Finite-lived trade name | 2,647 | (2,322 | ) | 325 | |||||||||||||||||||||||||
Indefinite-lived trade name | 122,190 | — | 122,190 | ||||||||||||||||||||||||||
Total | $ | 461,890 | $ | (157,660 | ) | $ | 304,230 | ||||||||||||||||||||||
August 31, 2012 | Gross | Accumulated | Net | ||||||||||||||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Contractual agreements and customer relationships | $ | 122,679 | $ | (63,772 | ) | $ | 58,907 | ||||||||||||||||||||||
Intellectual property | 84,688 | (76,799 | ) | 7,889 | |||||||||||||||||||||||||
Finite-lived trade name | 2,668 | (1,001 | ) | 1,667 | |||||||||||||||||||||||||
Indefinite-lived trade name | 50,590 | — | 50,590 | ||||||||||||||||||||||||||
Total | $ | 260,625 | $ | (141,572 | ) | $ | 119,053 | ||||||||||||||||||||||
The weighted-average amortization period for aggregate net intangible assets at August 31, 2013 is 10.9 years, which includes a weighted-average amortization period of 12.1 years for net contractual agreements and customer relationships, a weighted-average amortization period of 7.3 years for net intellectual property and a weighted-average amortization period of 2.0 years for a net finite-lived trade name. | |||||||||||||||||||||||||||||
In connection with the acquisition Nypro in the fourth quarter of fiscal year 2013, the Company acquired $335.9 million of goodwill and $196.8 million of intangible assets, including $72.5 million assigned to customer relationships with an assigned useful life of up to 14 years, $52.7 million assigned to intellectual property with an assigned useful life of up to 8 years and $71.6 million assigned to an indefinite-lived trade name. See Note 16 – “Business Acquisitions” for further details. | |||||||||||||||||||||||||||||
Intangible asset amortization for fiscal years 2013, 2012 and 2011 was approximately $16.2 million, $16.8 million, and $22.1 million, respectively. The estimated future amortization expense is as follows (in thousands): | |||||||||||||||||||||||||||||
Fiscal Year Ending August 31, | Amount | ||||||||||||||||||||||||||||
2014 | $ | 24,883 | |||||||||||||||||||||||||||
2015 | 21,740 | ||||||||||||||||||||||||||||
2016 | 18,491 | ||||||||||||||||||||||||||||
2017 | 16,986 | ||||||||||||||||||||||||||||
2018 | 16,986 | ||||||||||||||||||||||||||||
Thereafter | 82,954 | ||||||||||||||||||||||||||||
Total | $ | 182,040 | |||||||||||||||||||||||||||
Notes_Payable_LongTerm_Debt_an
Notes Payable, Long-Term Debt and Capital Lease Obligations | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes Payable, Long-Term Debt and Capital Lease Obligations | 7. Notes Payable, Long-Term Debt and Capital Lease Obligations | ||||||||
Notes payable, long-term debt and capital lease obligations outstanding at August 31, 2013 and 2012 are summarized below (in thousands). | |||||||||
August 31, | August 31, | ||||||||
2013 | 2012 | ||||||||
7.750% Senior Notes due 2016 (a) | $ | 306,940 | $ | 305,221 | |||||
8.250% Senior Notes due 2018 (b) | 398,284 | 397,903 | |||||||
5.625% Senior Notes due 2020 (c) | 400,000 | 400,000 | |||||||
4.700% Senior Notes due 2022 (d) | 500,000 | 500,000 | |||||||
Borrowings under credit facilities (e) | 200,000 | 8,000 | |||||||
Borrowings under loans (f) | 58,447 | 55,870 | |||||||
Capital lease obligations (g) | 35,468 | 166 | |||||||
Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes (h) | 6,823 | 9,197 | |||||||
Total notes payable, long-term debt and capital lease obligations | 1,905,962 | 1,676,357 | |||||||
Less current installments of notes payable, long-term debt and capital lease obligations | 215,536 | 18,031 | |||||||
Notes payable, long-term debt and capital lease obligations, less current installments | $ | 1,690,426 | $ | 1,658,326 | |||||
The $312.0 million of 7.750% senior unsecured notes, $400.0 million of 8.250% senior unsecured notes, $400.0 million of 5.625% senior unsecured notes and $500.0 million of 4.700% senior unsecured notes outstanding are carried at the principal amount of each note, less any unamortized discount. The estimated fair value of these senior notes was approximately $357.2 million, $476.0 million, $414.1 million and $491.8 million, respectively, at August 31, 2013. The fair value estimates are based upon observable market data (Level 2 criteria). | |||||||||
(a) | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the “7.750% Senior Notes”) at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a “change of control repurchase event.” | ||||||||
(b) | During the second and third quarters of fiscal year 2008, the Company issued $250.0 million and $150.0 million, respectively, of ten-year, unregistered 8.250% notes at 99.965% of par and 97.5% of par, respectively, resulting in net proceeds of approximately $245.7 million and $148.5 million, respectively. On July 18, 2008, 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 mature on March 15, 2018 and pay interest semiannually on March 15 and September 15. The interest rate payable on the 8.250% Senior Notes is subject to adjustment from time to time if the credit ratings assigned to the 8.250% Senior Notes increase or decrease, as provided in the 8.250% Senior Notes. The 8.250% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. | |||||||||
The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 8.250% Senior Notes upon a “change of control repurchase event.” | |||||||||
(c) | During the first quarter of fiscal year 2011, the Company issued $400.0 million of ten-year publicly registered 5.625% notes (the “5.625% Senior Notes”) at par. The net proceeds from the offering of $400.0 million were used to fully repay the term portion of the credit facility dated as of July 19, 2007 (the “Old Credit Facility”) and partially repay amounts outstanding under the Company’s foreign asset-backed securitization program. The 5.625% Senior Notes mature on December 15, 2020 and pay interest semiannually on June 15 and December 15 of each year, beginning on June 15, 2011. The 5.625% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 5.625% Senior Notes upon a “change of control repurchase event.” | ||||||||
(d) | During the fourth quarter of fiscal year 2012, the Company issued $500.0 million of ten-year publicly registered 4.700% notes (the “4.700% Senior Notes”) at 99.992% of par. The net proceeds from the offering of $500.0 million were used to repay outstanding borrowings under the revolving amended and restated senior unsecured five-year revolving credit facility entered into on March 19, 2012 (“the Amended and Restated Credit Facility”) and for general corporate purposes. The 4.700% Senior Notes mature on September 15, 2022 and pay interest semiannually on March 15 and September 15 of each year, beginning on March 15, 2013. The 4.700% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 4.700% Senior Notes upon a “change of control repurchase event.” | ||||||||
(e) | As of August 31, 2013, six of the Company’s foreign subsidiaries have credit facilities that finance their future growth and any corresponding working capital needs. Four of the credit facilities are denominated in U.S. dollars, one is denominated in Brazilian reais, and one is denominated in Taiwan dollar. The credit facilities incur interest at fixed and variable rates ranging from 1.8% to 10.0%. | ||||||||
During the third quarter of fiscal year 2012, the Company entered into the Amended and Restated Credit Facility which provides for a revolving credit facility in the initial amount of $1.3 billion. The Amended and Restated Credit Facility may, subject to lenders’ discretion, potentially be increased up to $1.6 billion and expires on March 19, 2017. Interest and fees on the Amended and Restated Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor’s Rating Service and Moody’s Investor Service. Interest is charged at a rate equal to either 0.175% to 0.850% above the base rate or 1.175% to 1.850% above the Eurocurrency rate, where the base rate represents the greatest of Citibank, N.A.’s prime rate, 0.50% above the federal funds rate, or 1.0% above one-month LIBOR, and the Eurocurrency rate represents adjusted LIBOR for the applicable interest period, each as more fully described in the Amended and Restated Credit Facility agreement. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. The Company, along with its subsidiaries, are subject to the following financial covenants: (1) a maximum ratio of (a) Debt (as defined in the Amended and Restated Credit Facility agreement) to (b) Consolidated EBITDA (as defined in the Amended and Restated Credit Facility agreement) and (2) a minimum ratio of (a) Consolidated EBITDA to (b) interest payable on, and amortization of debt discount in respect of, all Debt and loss on sale of accounts receivables. In addition, the Company is subject to other covenants, such as: limitation upon liens; limitation upon mergers, etc.; limitation upon accounting changes; limitation upon subsidiary debt; limitation upon sales, etc. of assets; limitation upon changes in nature of business; payment restrictions affecting subsidiaries; compliance with laws, etc.; payment of taxes, etc.; maintenance of insurance; preservation of corporate existence, etc.; visitation rights; keeping of books; maintenance of properties, etc.; transactions with affiliates; and reporting requirements. | |||||||||
During fiscal year 2013, the Company borrowed $5.4 billion against the Amended and Restated Credit Facility under multiple draws and repaid $5.2 billion under multiple payments. In addition, during the fourth quarter of fiscal year 2013, the Company borrowed $2.5 billion against the Amended and Restated Credit Facility under multiple draws and repaid $2.3 billion under multiple payments. | |||||||||
(f) | During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sells to and subsequently leases back from the VIE up to $60.0 million in certain machinery and equipment for a period of up to five years. In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consolidates the financial statements of the VIE and eliminates all intercompany transactions. At August 31, 2013, the VIE had approximately $46.6 million of total assets, of which approximately $45.4 million was comprised of a note receivable due from the Company, and approximately $46.0 million of total liabilities, of which approximately $45.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $45.9 million of the $60.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used only to settle the obligations of the VIE. | ||||||||
In addition to the loans described above, at August 31, 2013, the Company has borrowings outstanding to fund working capital needs. These additional loans total approximately $12.1 million, of which $11.9 million are denominated in Euros and $0.2 million are denominated in U.S. dollars. | |||||||||
(g) | During the fourth quarter of fiscal year 2013, the Company acquired various capital lease obligations in connection with the acquisition of Nypro. | ||||||||
(h) | This amount represents the fair value hedge accounting adjustment related to the 7.750% Senior Notes. For further discussion of the Company’s fair value hedges, see Note 12 - “Derivative Financial Instruments and Hedging Activities” to the Consolidated Financial Statements | ||||||||
Debt maturities as of August 31, 2013 for the next five years and thereafter are as follows (in thousands): | |||||||||
Fiscal Year Ending August 31, | Amount | ||||||||
2014 | $ | 215,536 | |||||||
2015 | 11,915 | ||||||||
2016 | 318,850 | ||||||||
2017 | 21,141 | ||||||||
2018 | 400,877 | ||||||||
Thereafter | 930,820 | ||||||||
Total(1) | $ | 1,899,139 | |||||||
-1 | The above table excludes a $6.8 million fair value adjustment related to the interest rate swap on the 7.750% Senior Notes. |
Postretirement_and_Other_Emplo
Postretirement and Other Employee Benefits | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | |||||||||||||||||||||
Postretirement and Other Employee Benefits | 8. Postretirement and Other Employee Benefits | ||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||
During the first quarter of fiscal year 2002, the Company established a defined benefit pension plan for all permanent employees of Jabil Circuit UK Limited. This plan was established in accordance with the terms of the business sale agreement with Marconi Communications plc (“Marconi”). The benefit obligations and plan assets from the terminated Marconi plan were transferred to the newly established defined benefit plan (the “UK plan”). The UK plan, which is closed to new participants, provides benefits based on average employee earnings over a three-year service period preceding retirement and length of employee service. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in UK employee benefit and tax laws plus such additional amounts as are deemed appropriate by the Company. Plan assets are held in trust and consist of equity and debt securities as detailed below. | |||||||||||||||||||||
During the second quarter of fiscal year 2012, and in connection with the acquisition of Telmar, the Company acquired assets and assumed liabilities relating to a defined benefit pension plan for all unionized employees of Precision Communications Services Corporation, a Toronto, Canada based wholly-owned subsidiary of the Company (the “Toronto plan”). The Toronto plan, which is closed to new participants, provides benefits based on a preset tiered schedule which determines benefit rates based on employee grade and length of service. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in Canadian employee benefit and tax laws plus such additional amounts as are deemed appropriate by the Company. Plan assets are held in insurance funds and consist primarily of equity and debt securities as detailed below. | |||||||||||||||||||||
In addition, as a result of acquiring various other operations in Austria, France, Germany, Japan, The Netherlands, Poland, and Taiwan, the Company assumed both funded and unfunded retirement benefits to be paid based upon years of service and compensation at retirement (the “other plans”). All permanent employees meeting the minimum service requirement are eligible to participate in the other plans. | |||||||||||||||||||||
The UK plan, Toronto plan and other plans are collectively referred to herein as the “plans.” | |||||||||||||||||||||
There is no domestic pension or post-retirement benefit plan maintained by the Company. | |||||||||||||||||||||
The Company is required to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheet, and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. | |||||||||||||||||||||
a. Benefit Obligations | |||||||||||||||||||||
The following table provides a reconciliation of the change in the benefit obligations for the plans for fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Beginning projected benefit obligation | $ | 190,320 | $ | 137,874 | |||||||||||||||||
Service cost | 1,759 | 1,224 | |||||||||||||||||||
Interest cost | 7,202 | 7,494 | |||||||||||||||||||
Actuarial loss | 8,167 | 26,748 | |||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Curtailment gain | (87 | ) | — | ||||||||||||||||||
Total benefits paid | (5,196 | ) | (6,264 | ) | |||||||||||||||||
Plan participants’ contributions | 12 | 213 | |||||||||||||||||||
Amendments | (1,730 | ) | — | ||||||||||||||||||
Acquisitions | — | 28,122 | |||||||||||||||||||
Effect of conversion to U.S. dollars | (7,939 | ) | (5,091 | ) | |||||||||||||||||
Ending projected benefit obligation | $ | 192,508 | $ | 190,320 | |||||||||||||||||
Weighted-average actuarial assumptions used to determine the benefit obligations for the plans for fiscal years 2013 and 2012 were as follows: | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Expected long-term return on plan assets | 5.1 | % | 4.2 | % | |||||||||||||||||
Rate of compensation increase | 3.9 | % | 3.3 | % | |||||||||||||||||
Discount rate | 4.1 | % | 3.2 | % | |||||||||||||||||
The Company evaluates these assumptions on a regular basis taking into consideration current market conditions and historical market data. The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash out flow of retirement benefits. A lower discount rate would increase the present value of benefit obligations and vice versa. Other assumptions include demographic factors such as retirement, mortality and turnover. | |||||||||||||||||||||
b. Plan Assets | |||||||||||||||||||||
The Company has adopted an investment policy for a majority of plan assets which was set by plan trustees who have the responsibility for making investment decisions related to the plan assets. The plan trustees oversee the investment allocation, including selecting professional investment managers and setting strategic targets. The investment objectives for the assets are (1) to acquire suitable assets that hold the appropriate liquidity in order to generate income and capital growth that, along with new contributions, will meet the cost of current and future benefits under the plan, (2) to limit the risk of the plan assets from failing to meet the plan liabilities over the long-term and (3) to minimize the long-term costs under the plan by maximizing the return on the plan assets. | |||||||||||||||||||||
Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives with prudent risk parameters. Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due. Within the equity securities class, the investment policy provides for investments in a broad range of publicly traded securities including both domestic and international stocks. The plans do not hold any of the Company’s stock. Within the debt securities class, the investment policy provides for investments in corporate bonds as well as fixed and variable interest debt instruments. The Company currently expects to achieve the target mix of 35% equity and 65% debt securities in fiscal year 2014. | |||||||||||||||||||||
The fair values of the plan assets held by the Company by asset category for fiscal years 2013 and 2012 are as follows (in thousands): | |||||||||||||||||||||
Fair Value Measurements Using Inputs Considered as: | |||||||||||||||||||||
Fair Value at | Asset Allocation | Level 1 | Level 2 | Level 3 | |||||||||||||||||
August 31, 2013 | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,686 | 3 | % | $ | 4,686 | $ | — | — | ||||||||||||
Equity Securities: | |||||||||||||||||||||
Global equity securities(a) | 26,110 | 18 | % | — | 26,110 | — | |||||||||||||||
U.K. equity securities(b) | 20,923 | 15 | % | — | 20,923 | — | |||||||||||||||
Canadian equity securities(c) | 8,935 | 6 | % | — | 8,935 | — | |||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.K. corporate bonds(d) | 43,949 | 31 | % | — | 43,949 | — | |||||||||||||||
U.K. government bonds(e) | 14,257 | 10 | % | — | 14,257 | — | |||||||||||||||
Canadian government bonds(f) | 7,934 | 6 | % | — | 7,934 | — | |||||||||||||||
Other Investments: | |||||||||||||||||||||
Insurance contracts(g) | 12,114 | 9 | % | — | — | 12,114 | |||||||||||||||
Commercial real estate(h) | 1,956 | 1 | % | — | — | 1,956 | |||||||||||||||
Commercial mortgages(i) | 1,190 | 1 | % | — | — | 1,190 | |||||||||||||||
Fair value of plan assets | $ | 142,054 | 100 | % | $ | 4,686 | $ | 122,108 | $ | 15,260 | |||||||||||
Fair Value Measurements Using Inputs Considered as: | |||||||||||||||||||||
Fair Value at | Asset Allocation | Level 1 | Level 2 | Level 3 | |||||||||||||||||
August 31, 2012 | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,370 | 3 | % | $ | 4,370 | $ | — | — | ||||||||||||
Equity Securities: | |||||||||||||||||||||
Global equity securities(a) | 22,649 | 17 | % | — | 22,649 | — | |||||||||||||||
U.K. equity securities(b) | 18,544 | 14 | % | — | 18,544 | — | |||||||||||||||
Canadian equity securities(c) | 8,247 | 6 | % | — | 8,247 | — | |||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.K. corporate bonds(d) | 42,983 | 32 | % | — | 42,983 | — | |||||||||||||||
U.K. government bonds(e) | 13,562 | 10 | % | — | 13,562 | — | |||||||||||||||
Canadian government bonds(f) | 8,757 | 7 | % | — | 8,757 | — | |||||||||||||||
Insurance Contracts: | |||||||||||||||||||||
Insurance contracts(g) | 11,046 | 8 | % | — | — | 11,046 | |||||||||||||||
Commercial real estate(h) | 1,987 | 2 | % | — | — | 1,987 | |||||||||||||||
Commercial mortgages(i) | 1,285 | 1 | % | — | — | 1,285 | |||||||||||||||
Fair value of plan assets | $ | 133,430 | 100 | % | $ | 4,370 | $ | 114,742 | $ | 14,318 | |||||||||||
(a) | Global equity securities are categorized as Level 2 and include investments that aim to capture global equity market returns by tracking the Financial Times (London) Stock Exchange (“FTSE”) AW-World (ex-UK) Index and other similar indexes in Canada. | ||||||||||||||||||||
(b) | 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 portfolio tracks the FTSE All-Share Index and invests only in U.K. securities. | ||||||||||||||||||||
(c) | Canadian equity securities are categorized as Level 2 and include investments in diversified portfolios that aim to capture the returns of Canadian small capitalization and dividend paying equities. The portfolios track the BMO Small Cap Index and the S&P/TSX Capped Equity Index and invest only in Canadian securities. | ||||||||||||||||||||
(d) | U.K. corporate bonds are categorized as Level 2 and include U.K. corporate issued fixed income investments which are managed and tracked to the respective benchmark (AAA-AA-A Bonds-Over 15Y Index). | ||||||||||||||||||||
(e) | 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). | ||||||||||||||||||||
(f) | Canadian government bonds are categorized as Level 2 and include Canadian government-issued fixed income investments which are managed and tracked to the respective benchmark (DEX Universe Bond Index). | ||||||||||||||||||||
(g) | 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. Insurance contract assets are recorded at fair value, which is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. | ||||||||||||||||||||
(h) | Commercial real estate investments are categorized as Level 3 and primarily consist of commercial properties located throughout the various provinces of Canada. The portfolio tracks the IPD Canadian Property Index and invests only in Canadian properties. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by obtaining quarterly independent market appraisals. The unobservable inputs consist of estimated unrealized gains and losses due to changes in real estate market conditions, which have an immaterial impact on the fair value calculations of the real estate investments held. | ||||||||||||||||||||
(i) | Commercial mortgage investments are categorized as Level 3 and primarily consist of mortgages on commercial properties located throughout the various provinces of Canada. The portfolio tracks the DEX Conventional Residential Mortgage Index and invests only in Canadian mortgages. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by calculating expected future cash flows at interest rates applicable to new mortgages of similar types and terms. The unobservable inputs consist of estimated unrealized gains and losses due to defaults and other real estate market events and estimated interest rates, which both have an immaterial impact on the fair value calculations of the mortgage investments held. | ||||||||||||||||||||
The following table provides a reconciliation of the changes in the pension plan assets for the year between measurement dates for fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Beginning fair value of plan assets | $ | 133,430 | $ | 99,237 | |||||||||||||||||
Actual return on plan assets | 11,440 | 13,980 | |||||||||||||||||||
Acquisitions | — | 22,772 | |||||||||||||||||||
Employer contributions | 4,478 | 4,546 | |||||||||||||||||||
Benefits paid from plan assets | (4,843 | ) | (4,718 | ) | |||||||||||||||||
Plan participants’ contributions | 12 | 213 | |||||||||||||||||||
Effect of conversion to U.S. dollars | (2,463 | ) | (2,600 | ) | |||||||||||||||||
Ending fair value of plan assets | $ | 142,054 | $ | 133,430 | |||||||||||||||||
c. Funded Status | |||||||||||||||||||||
The following table provides a reconciliation of the funded status of the plans to the Consolidated Balance Sheets for fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Funded Status | |||||||||||||||||||||
Ending fair value of plan assets | $ | 142,054 | $ | 133,430 | |||||||||||||||||
Ending projected benefit obligation | (192,508 | ) | (190,320 | ) | |||||||||||||||||
Under or unfunded status | $ | (50,454 | ) | $ | (56,890 | ) | |||||||||||||||
Consolidated Balance Sheet Information | |||||||||||||||||||||
Accrued benefit liability, current | $ | (117 | ) | $ | (126 | ) | |||||||||||||||
Accrued benefit liability, noncurrent | (50,337 | ) | (56,764 | ) | |||||||||||||||||
Net liability recorded at August 31 | $ | (50,454 | ) | $ | (56,890 | ) | |||||||||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||||||||||||||||
Net actuarial loss | $ | 47,125 | $ | 41,977 | |||||||||||||||||
Prior service cost | (1,698 | ) | (127 | ) | |||||||||||||||||
Accumulated other comprehensive loss, before taxes | $ | 45,427 | $ | 41,850 | |||||||||||||||||
The following table provides the estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal year 2013 (in thousands): | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
Recognized net actuarial loss | $ | 2,542 | |||||||||||||||||||
Amortization of prior service cost | (239 | ) | |||||||||||||||||||
Total | $ | 2,303 | |||||||||||||||||||
The accumulated benefit obligation for the plans was $179.9 million and $177.1 million at August 31, 2013 and 2012, respectively. | |||||||||||||||||||||
The following table provides information for the plans with an accumulated benefit obligation in excess of plan assets for fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
August 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Projected benefit obligation | $ | 192,508 | $ | 190,320 | |||||||||||||||||
Accumulated benefit obligation | 179,920 | 177,056 | |||||||||||||||||||
Fair value of plan assets | 142,054 | 133,430 | |||||||||||||||||||
d. Net Periodic Benefit Cost | |||||||||||||||||||||
The following table provides information about net periodic benefit cost for the plans for fiscal years 2013, 2012 and 2011 (in thousands): | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 1,759 | $ | 1,224 | $ | 1,494 | |||||||||||||||
Interest cost | 7,202 | 7,494 | 5,715 | ||||||||||||||||||
Expected long-term return on plan assets | (6,952 | ) | (6,104 | ) | (4,474 | ) | |||||||||||||||
Recognized actuarial loss | 2,474 | 1,207 | 2,073 | ||||||||||||||||||
Net curtailment gain | (3,401 | ) | — | (1,903 | ) | ||||||||||||||||
Amortization of prior service cost | (184 | ) | (26 | ) | (27 | ) | |||||||||||||||
Net periodic benefit cost | $ | 898 | $ | 3,795 | $ | 2,878 | |||||||||||||||
Weighted-average actuarial assumptions used to determine net periodic benefit cost for the plans for fiscal years 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected long-term return on plan assets | 5.1 | % | 4.2 | % | 4.2 | % | |||||||||||||||
Rate of compensation increase | 3.9 | % | 3.3 | % | 4.2 | % | |||||||||||||||
Discount rate | 4.1 | % | 3.2 | % | 4.9 | % | |||||||||||||||
The expected return on plan assets assumption used in calculating net periodic pension cost is based on historical actual return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan assets. | |||||||||||||||||||||
e. Cash Flows | |||||||||||||||||||||
The Company expects to make cash contributions of between $4.3 million and $4.7 million to its funded pension plans during fiscal year 2014. The Company does not anticipate the return of any plan assets during fiscal year 2014. | |||||||||||||||||||||
The estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands): | |||||||||||||||||||||
Fiscal Year Ending August 31, | Pension | ||||||||||||||||||||
Benefits | |||||||||||||||||||||
2014 | $ | 5,357 | |||||||||||||||||||
2015 | $ | 5,662 | |||||||||||||||||||
2016 | $ | 6,134 | |||||||||||||||||||
2017 | $ | 6,332 | |||||||||||||||||||
2018 | $ | 6,792 | |||||||||||||||||||
Years 2019 through 2023 | $ | 44,671 | |||||||||||||||||||
Profit Sharing, 401(k) Plan and Defined Contribution Plans | |||||||||||||||||||||
The Company provides retirement benefits to its domestic employees who have completed a 90-day period of service through a 401(k) plan that provides a matching contribution by the Company. Company contributions are at the discretion of the Company’s Board of Directors. The Company also has defined contribution benefit plans for certain of its international employees primarily dictated by the custom of the regions in which it operates. In relation to these plans, the Company contributed approximately $31.8 million, $29.2 million, and $23.1 million for the fiscal years ended August 31, 2013, 2012 and 2011, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 9. Commitments and Contingencies | ||||
a. Lease Agreements | |||||
The Company leases certain facilities under non-cancelable operating leases. Lease agreements may contain lease escalation clauses and purchase or renewal options. The Company recognizes scheduled lease escalation clauses over the course of the applicable lease term on a straight-line basis in the Consolidated Statements of Operations. The future minimum lease payments under non-cancelable operating leases at August 31, 2013 are as follows (in thousands): | |||||
Fiscal Year Ending August 31, | Amount | ||||
2014 | $ | 89,451 | |||
2015 | 65,433 | ||||
2016 | 52,089 | ||||
2017 | 43,074 | ||||
2018 | 35,499 | ||||
Thereafter | 122,606 | ||||
Total minimum lease payments | $ | 408,152 | |||
Total operating lease expense was approximately $80.9 million, $65.3 million and $61.7 million for fiscal years 2013, 2012 and 2011, respectively. | |||||
b. Warranty Provision | |||||
The Company maintains a provision for limited warranty repair of shipped products, which is established under the terms of specific manufacturing contract agreements. The warranty liability is included in other accrued expenses on the Consolidated Balance Sheets. The warranty period varies by product and customer industry sector. The provision represents management’s estimate of probable liabilities, calculated as a function of sales volume and historical repair experience, for each product under warranty. The estimate is re-evaluated periodically for accuracy. A rollforward of the warranty liability is as follows (in thousands): | |||||
Amount | |||||
Balance at August 31, 2010 | $ | 10,828 | |||
Accruals for warranties during the year | 6,909 | ||||
Warranty liabilities acquired | 3,986 | ||||
Settlements made during the year | (8,209 | ) | |||
Balance at August 31, 2011 | $ | 13,514 | |||
Accruals for warranties during the year | 3,285 | ||||
Warranty liabilities acquired | — | ||||
Settlements made during the year | (5,411 | ) | |||
Balance at August 31, 2012 | $ | 11,388 | |||
Accruals for warranties during the year | 6,419 | ||||
Warranty liabilities acquired | — | ||||
Settlements made during the year | (6,395 | ) | |||
Balance at August 31, 2013 | $ | 11,412 | |||
c. Legal Proceedings | |||||
The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. | |||||
The Company was involved in a commercial dispute with a former industrial and CleanTech customer during fiscal year 2012 regarding product warranty claims as well as the collection of a $10.1 million outstanding account receivable of the Company, for which the Company had established a full valuation allowance. | |||||
During the fourth quarter of fiscal year 2012, the Company reached a settlement with this former customer under which the Company received $0.5 million and a release from the product warranty claims brought against it in exchange for full settlement of the $10.1 million outstanding accounts receivable and the assignment to the former customer of certain contract rights of the Company which are associated with the former customer’s warranty claims. The $0.5 million was recorded as a reduction to cost of sales. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||
Stockholders' Equity | 10. Stockholders’ Equity | ||||||||||||||||||||
The 2011 Stock Award and Incentive Plan (the “2011 Plan”) was adopted by the Board of Directors during the first quarter of fiscal year 2011 and approved by the stockholders during the second quarter of fiscal year 2011. The 2011 Plan provides for the granting of restricted stock awards, restricted stock unit awards and other stock-based awards. The maximum aggregate number of shares that may be subject to awards under the 2011 Plan is 8,850,000. If any portion of an outstanding award that was granted under the 2002 Stock Incentive Plan (the “2002 Plan”), which was terminated immediately upon the effectiveness of the 2011 Plan, for any reason expires or is canceled or forfeited on or after the date of termination of the 2002 Plan, the shares allocable to the expired, canceled or forfeited portion of such 2002 Plan award shall be available for issuance under the 2011 Plan. | |||||||||||||||||||||
The 2011 Employee Stock Purchase Plan (the “2011 ESPP”) was adopted by the Company’s Board of Directors during the first quarter of fiscal year 2011 and approved by the shareholders during the second quarter of fiscal year 2011 with 6,000,000 shares authorized for issuance. The offering period beginning July 1, 2011 was the first offering period shares were issued under the 2011 ESPP. The Company also adopted a tax advantaged sub-plan under the 2011 ESPP for its Indian employees. Shares are issued under the Indian sub-plan from the authorized shares under the 2011 ESPP. The offering period ending June 30, 2011 was the final offering period shares were issued under the previous ESPP (the “2002 ESPP”). | |||||||||||||||||||||
a. Stock Options and Stock Appreciation Rights | |||||||||||||||||||||
There were no stock options and stock appreciation rights granted (collectively known as “Options”), excluding those granted under the ESPP, during fiscal years 2013, 2012 and 2011. The total intrinsic value of Options exercised during fiscal year 2013, 2012 and 2011 was $1.2 million, $8.0 million and $7.5 million, respectively. As of August 31, 2013, there were no unrecognized compensation costs related to non-vested Options. The total fair value of Options vested during fiscal years 2013, 2012 and 2011 was $0.1 million, $1.3 million and $7.5 million, respectively. | |||||||||||||||||||||
The following table summarizes Options activity from September 1, 2012 through August 31, 2013: | |||||||||||||||||||||
Shares | Options | Aggregate | Weighted- | Weighted- | |||||||||||||||||
Available | Outstanding | Intrinsic Value | Average | Average | |||||||||||||||||
for Grant | (in thousands) | Exercise | Remaining | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life (years) | |||||||||||||||||||||
Balance at September 1, 2012 | 4,883,919 | 8,677,941 | $ | 4,719 | $ | 25.88 | 2.9 | ||||||||||||||
Shares authorized | 9,500,000 | ||||||||||||||||||||
Options canceled | 520,731 | (520,731 | ) | $ | 25.95 | ||||||||||||||||
Options expired | — | — | — | ||||||||||||||||||
Restricted stock awards granted(1) | (2,893,577 | ) | — | ||||||||||||||||||
Options exercised | — | (300,083 | ) | $ | 14.3 | ||||||||||||||||
Balance at August 31, 2013 | 12,011,073 | 7,857,127 | $ | 1,927 | $ | 26.31 | 1.95 | ||||||||||||||
Exercisable at August 31, 2013 | 7,853,961 | $ | 1,915 | $ | 26.32 | 1.95 | |||||||||||||||
-1 | Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. | ||||||||||||||||||||
b. Restricted Stock Awards | |||||||||||||||||||||
Certain key employees have been granted time-based and performance-based restricted stock awards. The time-based restricted awards granted generally vest on a graded vesting schedule over three years. The performance-based restricted awards generally vest on a cliff vesting schedule over three to five years and provide a range of vesting possibilities of up to a maximum of 100% or 150%, depending on the specified performance condition and the level of achievement obtained. During the fiscal year ended August 31, 2013, the Company awarded approximately 2.0 million time-based restricted stock units and 1.7 million performance-based restricted stock units. | |||||||||||||||||||||
The stock-based compensation expense for these restricted stock awards (including restricted stock and restricted stock units) is measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. For restricted stock awards with performance conditions, stock-based compensation expense is originally based on the number of shares that would vest if the Company achieved 100% of the performance goal, which was the probable outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition. If it becomes probable, based on the Company’s performance, that more or less than the current estimate of the awarded shares will vest, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate. | |||||||||||||||||||||
At August 31, 2013, there was $55.7 million of total unrecognized stock-based compensation expense related to restricted stock awards granted under the 2002 Plan and 2011 Plan. This expense is expected to be recognized over a weighted-average period of 1.5 years. | |||||||||||||||||||||
The following table summarizes restricted stock activity from August 31, 2012 through August 31, 2013: | |||||||||||||||||||||
Shares | Weighted - | ||||||||||||||||||||
Average | |||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Non-vested balance at August 31, 2012 | 12,945,864 | $ | 16.33 | ||||||||||||||||||
Changes during the period | |||||||||||||||||||||
Shares granted(1) | 3,686,694 | $ | 17.67 | ||||||||||||||||||
Shares vested | (4,504,249 | ) | $ | 15.16 | |||||||||||||||||
Shares forfeited | (793,117 | ) | $ | 17.36 | |||||||||||||||||
Non-vested balance at August 31, 2013 | 11,335,192 | $ | 17.15 | ||||||||||||||||||
(1) | For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest. | ||||||||||||||||||||
c. Employee Stock Purchase Plan | |||||||||||||||||||||
Employees are eligible to participate in the ESPP after 90 days of employment with the Company. The ESPP permits eligible employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation, as defined in the ESPP, at a price equal to 85% of the fair value of the common stock at the beginning or end of the offering period, whichever is lower. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. There were 902,691, 754,598 and 824,913 shares purchased under the ESPP during fiscal years 2013, 2012 and 2011, respectively. At August 31, 2013, a total of 8,273,921 shares had been issued under the ESPP. | |||||||||||||||||||||
The fair value of shares issued under the ESPP was estimated on the commencement date of each offering period using the Black-Scholes option pricing model. The following weighted-average assumptions were used in the model for each respective period: | |||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected dividend yield | 0.8 | % | 0.7 | % | 0.9 | % | |||||||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | |||||||||||||||
Expected volatility | 34.7 | % | 48.4 | % | 47.3 | % | |||||||||||||||
Expected life | 0.5 years | 0.5 years | 0.5 years | ||||||||||||||||||
d. Dividends | |||||||||||||||||||||
The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders of the Company during fiscal years 2013 and 2012: | |||||||||||||||||||||
Dividend | Dividend | Total of Cash | Date of Record for | Dividend Cash | |||||||||||||||||
Declaration Date | per Share | Dividends | Dividend Payment | Payment Date | |||||||||||||||||
Declared | |||||||||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||||||
Fiscal year 2013: | October 16, 2012 | $ | 0.08 | $ | 16,962 | November 15, 2012 | December 3, 2012 | ||||||||||||||
23-Jan-13 | $ | 0.08 | $ | 16,990 | 15-Feb-13 | 1-Mar-13 | |||||||||||||||
15-Apr-13 | $ | 0.08 | $ | 16,994 | 15-May-13 | 3-Jun-13 | |||||||||||||||
18-Jul-13 | $ | 0.08 | $ | 17,005 | 15-Aug-13 | September 3, 2013 | |||||||||||||||
Fiscal year 2012: | 20-Oct-11 | $ | 0.08 | $ | 17,379 | 15-Nov-11 | 1-Dec-11 | ||||||||||||||
January 25, 2012 | $ | 0.08 | $ | 17,323 | 16-Feb-12 | 1-Mar-12 | |||||||||||||||
April 19, 2012 | $ | 0.08 | $ | 17,281 | 15-May-12 | 1-Jun-12 | |||||||||||||||
19-Jul-12 | $ | 0.08 | $ | 17,230 | 15-Aug-12 | 4-Sep-12 |
Concentration_of_Risk_and_Segm
Concentration of Risk and Segment Data | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Concentration of Risk and Segment Data | 11. Concentration of Risk and Segment Data | ||||||||||||||||||||
a. Concentration of Risk | |||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalents with various domestic and foreign financial institutions. Deposits held with the financial institutions may exceed the amount of insurance provided on such deposits, but may generally be redeemed upon demand. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. With respect to trade receivables, the Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains an allowance for potential credit losses on trade receivables. As the Company is a provider of electronic manufacturing services and solutions and products are built based on customer specifications, it is impracticable to provide revenues from external customers for each product and service. | |||||||||||||||||||||
Sales of the Company’s products are concentrated among specific customers. For fiscal year 2013, the Company’s five largest customers accounted for approximately 53% of its net revenue and 58 customers accounted for approximately 90% of its net revenue. Sales to the following customers who accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for each customer, were as follows: | |||||||||||||||||||||
Percentage of | Percentage of Accounts Receivable | ||||||||||||||||||||
Net Revenue | August 31, | ||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||||||||
Apple, Inc. | 19 | % | 13 | % | * | 20 | % | 17 | % | ||||||||||||
BlackBerry Limited(1) | 12 | % | 10 | % | 15 | % | * | * | |||||||||||||
Cisco Systems, Inc. | * | 10 | % | 13 | % | * | * | ||||||||||||||
* | Amount was less than 10% of total | ||||||||||||||||||||
-1 | During the fourth quarter of fiscal year 2013, Research in Motion Limited changed its name to BlackBerry Limited. The Company is currently in ongoing discussions with BlackBerry Limited regarding the termination or substantial winding down of the business relationship. No reserve has currently been established regarding the termination or winding down of the customer relationship as a loss is not considered probable. The reduction in business could include restructuring and related expenses, which are still being determined and could have a material adverse effect on results of operations. | ||||||||||||||||||||
Sales to the above customers were reported in the DMS, E&I and HVS operating segments. | |||||||||||||||||||||
The Company procures components from a broad group of suppliers. Almost all of the products manufactured by the Company require one or more components that are available from only a single source. | |||||||||||||||||||||
b. Segment Data | |||||||||||||||||||||
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. | |||||||||||||||||||||
The Company derives its revenue from providing comprehensive electronics design, production and product management services. The chief operating decision maker evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of three segments – DMS, E&I and HVS. | |||||||||||||||||||||
The DMS segment is composed of dedicated resources to manage higher complexity global products in regulated and other industries and introduce materials and process technologies including design and aftermarket services to global customers. The E&I and HVS segments offer integrated global manufacturing and supply chain solutions designed to provide cost effective solutions for certain customer groups. The E&I segment is focused on customers primarily in the computing, storage, networking and telecommunication sectors. The HVS segment is focused on the particular needs of the consumer products industry, including mobility, display, set-top boxes and peripheral products such as printers and point of sale terminals. | |||||||||||||||||||||
Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses, and does not include distressed customer charge, stock-based compensation expense and related charges, amortization of intangibles, restructuring and related charges, impairment of notes receivable and related charges, acquisition costs and purchase accounting adjustments, settlement of receivables and related charges, loss on disposal of subsidiaries, other expense, interest income, interest expense, income tax expense or adjustment for net income attributable to noncontrolling interests. Total segment assets are defined as accounts receivable, inventories, net customer-related machinery and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate arm’s length. | |||||||||||||||||||||
The following table sets forth operating segment information (in thousands): | |||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Net revenue | |||||||||||||||||||||
DMS | $ | 8,182,104 | $ | 7,476,730 | $ | 6,018,332 | |||||||||||||||
E&I | 5,528,406 | 5,080,417 | 5,180,011 | ||||||||||||||||||
HVS | 4,626,384 | 4,594,794 | 5,320,484 | ||||||||||||||||||
$ | 18,336,894 | $ | 17,151,941 | $ | 16,518,827 | ||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Segment income and reconciliation of income before | |||||||||||||||||||||
income tax | |||||||||||||||||||||
DMS | $ | 440,743 | $ | 455,596 | $ | 389,188 | |||||||||||||||
E&I | 147,001 | 105,583 | 199,731 | ||||||||||||||||||
HVS | 133,318 | 175,000 | 126,275 | ||||||||||||||||||
Total segment income | $ | 721,062 | $ | 736,179 | $ | 715,194 | |||||||||||||||
Reconciling items: | |||||||||||||||||||||
Distressed customer charge | — | (16,014 | ) | — | |||||||||||||||||
Stock-based compensation expense and related charges | (68,383 | ) | (81,409 | ) | (76,230 | ) | |||||||||||||||
Amortization of intangibles | (16,154 | ) | (16,825 | ) | (22,051 | ) | |||||||||||||||
Restructuring and related charges | (89,453 | ) | — | (628 | ) | ||||||||||||||||
Impairment of notes receivable and related charges | (25,597 | ) | — | — | |||||||||||||||||
Acquisition costs and purchase accounting adjustments | (10,037 | ) | — | — | |||||||||||||||||
Settlement of receivables and related charges | — | — | (13,607 | ) | |||||||||||||||||
Loss on disposal of subsidiaries | — | — | (23,944 | ) | |||||||||||||||||
Other expense | (6,213 | ) | (8,943 | ) | (2,986 | ) | |||||||||||||||
Interest income | 1,901 | 2,041 | 3,132 | ||||||||||||||||||
Interest expense | (121,062 | ) | (106,129 | ) | (97,693 | ) | |||||||||||||||
Income before income tax | $ | 386,064 | $ | 508,900 | $ | 481,187 | |||||||||||||||
August 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Total assets | |||||||||||||||||||||
DMS | $ | 4,131,973 | $ | 3,002,982 | |||||||||||||||||
E&I | 1,110,458 | 1,157,464 | |||||||||||||||||||
HVS | 1,031,911 | 970,819 | |||||||||||||||||||
Other non-allocated assets | 2,879,439 | 2,671,876 | |||||||||||||||||||
$ | 9,153,781 | $ | 7,803,141 | ||||||||||||||||||
The Company operates in 31 countries worldwide. Sales to unaffiliated customers are based on the Company’s location that maintains the customer relationship and transacts the external sale. The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in thousands): | |||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
External net revenue: | |||||||||||||||||||||
Mexico | $ | 4,105,274 | $ | 3,658,873 | $ | 3,876,239 | |||||||||||||||
Singapore | 3,297,523 | 2,030,492 | 938,381 | ||||||||||||||||||
China | 3,273,599 | 3,425,641 | 3,343,669 | ||||||||||||||||||
U.S. | 2,571,969 | 2,466,079 | 2,314,098 | ||||||||||||||||||
Hungary | 1,315,548 | 1,430,180 | 1,794,869 | ||||||||||||||||||
Malaysia | 1,243,808 | 1,148,899 | 1,167,594 | ||||||||||||||||||
Brazil | 547,690 | 661,676 | 710,863 | ||||||||||||||||||
Other | 1,981,483 | 2,330,101 | 2,373,114 | ||||||||||||||||||
$ | 18,336,894 | $ | 17,151,941 | $ | 16,518,827 | ||||||||||||||||
August 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Long-lived assets: | |||||||||||||||||||||
China | $ | 1,108,471 | $ | 718,970 | |||||||||||||||||
U.S. | 1,084,450 | 339,409 | |||||||||||||||||||
Mexico | 216,248 | 191,388 | |||||||||||||||||||
Taiwan | 122,904 | 110,610 | |||||||||||||||||||
Singapore | 101,946 | 121,291 | |||||||||||||||||||
Malaysia | 91,591 | 132,027 | |||||||||||||||||||
Hungary | 78,092 | 78,841 | |||||||||||||||||||
Poland | 78,045 | 83,978 | |||||||||||||||||||
Other | 254,286 | 216,712 | |||||||||||||||||||
$ | 3,136,033 | $ | 1,993,226 | ||||||||||||||||||
Total foreign source net revenue was approximately $15.8 billion, $14.7 billion and $14.2 billion for fiscal years 2013, 2012 and 2011, respectively. Total long-lived assets related to the Company’s foreign operations were approximately $2.1 billion and $1.7 billion for fiscal years 2013 and 2012, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | 12. Derivative Financial Instruments and Hedging Activities | ||||||||||||||||||||
The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, where deemed appropriate, uses derivatives as risk management tools to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency fluctuation risk and interest rate risk. | |||||||||||||||||||||
All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of accumulated other comprehensive income (“AOCI”), net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective portion of the gain or loss is recognized immediately in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized in earnings. | |||||||||||||||||||||
For derivatives accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instruments as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally performs an assessment, both at inception and at least quarterly thereafter, to determine whether the financial instruments used in hedging transactions are effective at offsetting changes in the cash flows on the related underlying exposures. | |||||||||||||||||||||
a. Foreign Currency Risk Management | |||||||||||||||||||||
Forward contracts are put in place to manage the foreign currency risk associated with anticipated foreign currency denominated revenues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $591.7 million and $199.7 million at August 31, 2013 and 2012, respectively. The related forward foreign exchange contracts have been designated as hedging instruments and are accounted for as cash flow hedges. The forward foreign exchange contract transactions will effectively lock in the value of anticipated foreign currency denominated revenues and expenses against foreign currency fluctuations. The anticipated foreign currency denominated revenues and expenses being hedged are expected to occur between September 1, 2013 and September 30, 2014. | |||||||||||||||||||||
In addition to derivatives that are designated and qualify for hedge accounting, the Company also enters into forward contracts to economically hedge transactional exposure associated with commitments arising from trade accounts receivable, trade accounts payable, fixed purchase obligations and intercompany transactions denominated in a currency other than the functional currency of the respective operating entity. The aggregate notional amount of these outstanding contracts at August 31, 2013 and 2012 was $1.3 billion and $837.3 million, respectively. | |||||||||||||||||||||
The following table presents the Company’s assets and liabilities related to forward foreign exchange contracts measured at fair value on a recurring basis as of August 31, 2013, aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands): | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Forward foreign exchange contracts | $ | — | $ | 11,504 | $ | — | $ | 11,504 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Forward foreign exchange contracts | — | (9,509 | ) | — | (9,509 | ) | |||||||||||||||
Total | $ | — | $ | 1,995 | $ | — | $ | 1,995 | |||||||||||||
The Company’s forward foreign exchange contracts are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers. | |||||||||||||||||||||
The following tables present the fair value of the Company’s derivative instruments located on the Consolidated Balance Sheets utilized for foreign currency risk management purposes at August 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||
At August 31, 2013 | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||||||||||
Location | Value | Location | Value | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 4,357 | Other accrued expense | $ | 4,550 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 7,147 | Other accrued expense | $ | 4,959 | |||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||
At August 31, 2012 | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||||||||||
Location | Value | Location | Value | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 1,335 | Other accrued expense | $ | 1,190 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 4,445 | Other accrued expense | $ | 2,976 | |||||||||||||||
The following tables present the impact that changes in fair value of derivatives utilized for foreign currency risk management purposes and designated as hedging instruments had on AOCI and earnings during fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
Derivatives in Cash | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain | Amount of Gain | ||||||||||||||||
Flow Hedging | (Loss) Recognized | Reclassified from | (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Relationship for | in OCI on | AOCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
the Fiscal Year | Derivative | into Income | AOCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
Ended August 31, | (Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | ||||||||||||||||
2013 | (Effective Portion) | from Effectiveness | from Effectiveness | ||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Forward foreign exchange contracts | $ | (2,392 | ) | Revenue | $ | (1,919 | ) | Revenue | $ | 225 | |||||||||||
Forward foreign exchange contracts | $ | 2,721 | Cost of | $ | 3,717 | Cost of | $ | 8,996 | |||||||||||||
revenue | revenue | ||||||||||||||||||||
Forward foreign exchange contracts | $ | (511 | ) | Selling, | $ | (133 | ) | Selling, | $ | 263 | |||||||||||
general and | general and | ||||||||||||||||||||
administrative | administrative | ||||||||||||||||||||
Derivatives in Cash | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain | Amount of Gain | ||||||||||||||||
Flow Hedging | (Loss) Recognized | Reclassified from | (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Relationship for the | in OCI on | AOCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
Fiscal Year Ended | Derivative | into Income | AOCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
August 31, 2012 | (Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | ||||||||||||||||
(Effective Portion) | from Effectiveness | from Effectiveness | |||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Forward foreign exchange contracts | $ | 2,858 | Revenue | $ | 2,642 | Revenue | $ | — | |||||||||||||
Forward foreign exchange contracts | $ | 1,644 | Cost of | $ | 2,717 | Cost of | $ | (1,345 | ) | ||||||||||||
revenue | revenue | ||||||||||||||||||||
Forward foreign exchange contracts | $ | (1,864 | ) | Selling, | $ | (2,790 | ) | Selling, | $ | 194 | |||||||||||
general and | general and | ||||||||||||||||||||
administrative | administrative | ||||||||||||||||||||
As of August 31, 2013, the Company estimates that it will reclassify into earnings during the next 12 months existing losses related to foreign currency risk management hedging arrangements of approximately $1.1 million from the amounts recorded in AOCI as the hedged item affects earnings. | |||||||||||||||||||||
The following tables present the impact that changes in fair value of derivatives utilized for foreign currency risk management purposes and not designated as hedging instruments had on earnings during fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of Gain (Loss) Recognized in | Amount of Gain (Loss) Recognized in | |||||||||||||||||||
Income on Derivative | Income on Derivative for the Fiscal Year | ||||||||||||||||||||
ended August 31, 2013 | |||||||||||||||||||||
Forward foreign exchange contracts | Cost of revenue | $ | (4,620 | ) | |||||||||||||||||
Derivatives not designated as hedging instruments | Location of Gain (Loss) Recognized in | Amount of Gain (Loss) Recognized in | |||||||||||||||||||
Income on Derivative | Income on Derivative for the Fiscal Year | ||||||||||||||||||||
ended August 31, 2012 | |||||||||||||||||||||
Forward foreign exchange contracts | Cost of revenue | $ | 5,912 | ||||||||||||||||||
b. Interest Rate Risk Management | |||||||||||||||||||||
The Company periodically enters into interest rate swaps to manage interest rate risk associated with the Company’s borrowings. | |||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||
During the second quarter of fiscal year 2011, the Company entered into a series of interest rate swaps with an aggregate notional amount of $200.0 million designated as fair value hedges of a portion of the Company’s 7.750% Senior Notes. Under these interest rate swaps, the Company received fixed rate interest payments and paid interest at a variable rate based on LIBOR plus a spread. The effect of these swaps was to convert fixed rate interest expense on a portion of the 7.750% Senior Notes to floating rate interest expense. Gains and losses related to changes in the fair value of the interest rate swaps were recorded to interest expense and offset changes in the fair value of the hedged portion of the underlying 7.750% Senior Notes. | |||||||||||||||||||||
During the fourth quarter of fiscal year 2011, the Company terminated the interest rate swaps entered into in connection with the 7.750% Senior Notes with a fair value of $12.2 million, including accrued interest of $0.6 million at August 31, 2011. The portion of the fair value that is not accrued interest is recorded as a hedge accounting adjustment to the carrying amount of the 7.750% Senior Notes and is being amortized as a reduction to interest expense over the remaining term of the 7.750% Senior Notes. The Company recorded $2.4 million in amortization as a reduction to interest expense for the fiscal year ended August 31, 2013. At August 31, 2013, the unamortized hedge accounting adjustment recorded is $6.8 million in the Consolidated Balance Sheets. | |||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
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, which was the issuance of the 8.250% Senior Notes. The swaps were accounted for as a cash flow hedge and had a notional amount of $400.0 million. Concurrently with the pricing of the 8.250% Senior Notes, the Company settled the swaps by its payment of $43.1 million. The ineffective portion of the swaps was immediately recorded to interest expense within the Consolidated Statements of Operations. The effective portion of the swaps is recorded on the Company’s Consolidated Balance Sheets as a component of AOCI and is being amortized to interest expense within the Company’s Consolidated Statements of Operations over the life of the 8.250% Senior Notes, which is through March 15, 2018. | |||||||||||||||||||||
The following tables present the impact that changes in the fair value of the derivative utilized for interest rate risk management and designated as a hedging instrument had on AOCI and earnings during fiscal years 2013 and 2012 (in thousands): | |||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain or | Amount of Gain or | ||||||||||||||||
Hedging Relationship for the | (Loss) Recognized | Reclassified from | or (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Fiscal Year Ended August 31, | in OCI on | Accumulated OCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
2013 | Derivative | into Income | Accumulated OCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
(Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | |||||||||||||||||
(Effective Portion) | from Effectiveness | from Effectiveness | |||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Interest rate swap | $ | — | Interest expense | $ | (3,950 | ) | Interest expense | $ | — | ||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain or | Amount of Gain or | ||||||||||||||||
Hedging Relationship for the Fiscal | (Loss) Recognized | Reclassified from | or (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Year Ended August 31, | in OCI on | Accumulated OCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
2012 | Derivative | into Income | Accumulated OCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
(Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | |||||||||||||||||
(Effective Portion) | from Effectiveness | from Effectiveness | |||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Interest rate swap | $ | — | Interest expense | $ | (3,950 | ) | Interest expense | $ | — | ||||||||||||
As of August 31, 2013, the Company estimates that it will reclassify into earnings during the next 12 months existing losses related to interest rate risk management hedging arrangements of approximately $4.0 million from the amounts recorded in AOCI as the hedged item affects earnings. | |||||||||||||||||||||
The changes related to cash flow hedges (both forward foreign exchange contracts and interest rate swaps) included in AOCI net of tax are as follows (in thousands): | |||||||||||||||||||||
Accumulated comprehensive loss August 31, 2011 | $ | (11,172 | ) | ||||||||||||||||||
Changes in fair value of derivative instruments | 2,637 | ||||||||||||||||||||
Reclassification of net losses realized and included in net income related to derivative instruments | 1,382 | ||||||||||||||||||||
Accumulated comprehensive loss, August 31, 2012 | $ | (7,153 | ) | ||||||||||||||||||
Changes in fair value of derivative instruments | (182 | ) | |||||||||||||||||||
Reclassification of net losses realized and included in net income related to derivative instruments | 2,285 | ||||||||||||||||||||
Accumulated comprehensive loss, August 31, 2013 | $ | (5,050 | ) | ||||||||||||||||||
Restructuring_and_Related_Char
Restructuring and Related Charges | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||||
Restructuring and Related Charges | 13. Restructuring and Related Charges | ||||||||||||||||||||
In conjunction with the restructuring plan that was approved by the Company’s Board of Directors in fiscal year 2013 (the “2013 Restructuring Plan”), the Company charged $89.5 million of restructuring and related charges to the Consolidated Statement of Operations during the fiscal year ended August 31, 2013. The 2013 Restructuring Plan is intended to better align the Company’s manufacturing capacity in certain geographies and to reduce the Company’s worldwide workforce in order to reduce operating expenses. These restructuring activities are intended to address current market conditions and customer requirements. The restructuring and related charges for the fiscal year ended August 31, 2013 include $80.4 million related to employee severance and benefit costs, $8.3 million related to asset write off costs, $0.5 million related to lease costs and $0.3 million of other related costs. | |||||||||||||||||||||
These restructuring and related charges associated with the 2013 Restructuring Plan incurred during the fiscal year ended August 31, 2013 of $89.5 million are primarily cash costs totaling $81.2 million, of which $22.7 million was paid in fiscal year 2013. The cash costs consist of employee severance and benefit costs of $80.4 million, lease costs of $0.5 million and other related costs of $0.3 million. Non-cash costs of $8.3 million primarily represent asset write off costs related to the Company’s restructuring activities. | |||||||||||||||||||||
The Company currently expects to recognize approximately $188.0 million in pre-tax restructuring and other related costs over the course of the Company’s fiscal years 2013, 2014 and 2015 under the 2013 Restructuring Plan. A majority of the total restructuring costs are expected to be related to employee severance and benefit arrangements. The charges related to the 2013 Restructuring Plan, excluding asset write off costs, are currently expected to result in cash expenditures in a range of $140.0 million to $160.0 million that will be payable over the course of the Company’s fiscal years 2013, 2014 and 2015. The exact amount and timing of these charges and cash outflows, as well as the estimated cost ranges by category type, have not been finalized. Much of the 2013 Restructuring Plan as discussed reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain plants are still subject to the finalization of timetables for the transition of functions and consultation with the Company’s employees and their representatives. | |||||||||||||||||||||
The table below sets forth the significant components and activity in the 2013 Restructuring Plan during the fiscal year ended August 31, 2013 (in thousands): | |||||||||||||||||||||
2013 Restructuring Plan – Fiscal Year Ended August 31, 2013 | |||||||||||||||||||||
Liability Balance at | Restructuring | Asset | Cash | Liability Balance at | |||||||||||||||||
1-Sep-12 | Related | Write off | Payments | 31-Aug-13 | |||||||||||||||||
Charges | Charge and | ||||||||||||||||||||
Other Non- | |||||||||||||||||||||
Cash | |||||||||||||||||||||
Activity | |||||||||||||||||||||
Employee severance and benefit costs | $ | — | $ | 80,331 | $ | (525 | ) | $ | (22,183 | ) | $ | 57,623 | |||||||||
Lease costs | — | 506 | — | (255 | ) | 251 | |||||||||||||||
Asset write off costs | — | 8,341 | (8,341 | ) | — | — | |||||||||||||||
Other related costs | — | 275 | — | (239 | ) | 36 | |||||||||||||||
Total | $ | — | $ | 89,453 | $ | (8,866 | ) | $ | (22,677 | ) | $ | 57,910 | |||||||||
The table below sets forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the fiscal year ended August 31, 2013 (in thousands): | |||||||||||||||||||||
2013 Restructuring Plan – Fiscal Year Ended August 31, 2013 | |||||||||||||||||||||
Liability Balance at | Restructuring | Asset | Cash | Liability Balance at | |||||||||||||||||
1-Sep-12 | Related | Write off | Payments | 31-Aug-13 | |||||||||||||||||
Charges | Charge and | ||||||||||||||||||||
Other Non- | |||||||||||||||||||||
Cash | |||||||||||||||||||||
Activity | |||||||||||||||||||||
DMS | $ | — | $ | 21,502 | $ | (2,665 | ) | $ | (6,548 | ) | $ | 12,289 | |||||||||
E&I | — | 54,255 | (5,982 | ) | $ | (7,670 | ) | 40,603 | |||||||||||||
HVS | — | 10,647 | (219 | ) | (5,443 | ) | 4,985 | ||||||||||||||
Other | — | 3,049 | — | (3,016 | ) | 33 | |||||||||||||||
Total | $ | — | $ | 89,453 | $ | (8,866 | ) | $ | (22,677 | ) | $ | 57,910 | |||||||||
Impairment_of_Notes_Receivable
Impairment of Notes Receivable and Related Charges | 12 Months Ended |
Aug. 31, 2013 | |
Text Block [Abstract] | |
Impairment of Notes Receivable and Related Charges | 14. Impairment of Notes Receivable and Related Charges |
During the fiscal year ended August 31, 2013, the Company recorded a loss of approximately $25.6 million related to a notes receivable and related charges. Such a charge was recorded following the determination that it was probable that the Company would be unable to collect the amounts due from a former customer. |
Loss_on_Disposal_of_Subsidiari
Loss on Disposal of Subsidiaries | 12 Months Ended |
Aug. 31, 2013 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Loss on Disposal of Subsidiaries | 15. Loss on Disposal of Subsidiaries |
During the fourth quarter of fiscal year 2010, the Company sold F-I Holding Company, which directly or indirectly wholly owns Competence France Holdings SAS, a French entity which wholly owns Competence France SAS, and Competence EMEA S.r.l., an Italian entity which wholly owns Competence Italia S.r.l. (Competence France Holdings SAS, Competence France SAS, Competence EMEA S.r.l. and Competence Italia S.r.l. are collectively referred to as the “Competence Sites” herein), to an unrelated third party. Divested operations, inclusive of four sites and approximately 1,500 employees, had net revenues and an operating loss of $298.6 million and $39.6 million, respectively, from the beginning of the 2010 fiscal year through the date of disposition. | |
In connection with this transaction, the Company provided an aggregate $25.0 million working capital loan to the disposed operations and agreed to provide for the aggregate potential reimbursement of up to $10.0 million in restructuring costs dependent upon the occurrence of certain future events. The working capital loan bore interest on a quarterly basis at LIBOR plus 500 basis points and was repayable over approximately 44 months dependent upon the achievement of certain specified quarterly financial results of the disposed operations, which if not met, would result in the forgiveness of all or a portion of the loan. Accordingly, dependent on the occurrence of such future events, the Company could have incurred up to an additional $28.5 million of charges. As a result of this sale, the Company recorded a loss on disposition of $8.9 million during the fourth quarter of fiscal year 2010, which included transaction-related costs of $1.7 million and a charge of $6.5 million in order to record the working capital loan at its respective fair value at August 31, 2010 based upon a discounted cash flow analysis (Level 3). These costs were recorded to loss on disposal of subsidiaries within the Consolidated Statements of Operations during the fourth quarter of fiscal year 2010, which is a component of operating income. | |
During the second quarter of fiscal year 2011, the Company recorded an additional loss on disposal of subsidiaries of $18.5 million within the Consolidated Statement of Operations to fully write off the remaining balance of the working capital loan as it was deemed no longer collectible by the Company. In addition, the Company recorded a charge of $5.4 million to loss on disposal of subsidiaries within the Consolidated Statement of Operations during the second quarter of fiscal year 2011, as it was determined that a purchase price related receivable that was due from the third party purchaser was no longer collectible. Refer to Note 16 – “Business Acquisitions” for further discussion on the subsequent acquisition of the French and Italian operations. |
Business_Acquisitions
Business Acquisitions | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Business Combinations [Abstract] | |||||||||
Business Acquisitions | 16. Business Acquisitions | ||||||||
On July 1, 2013, the Company completed its acquisition of Nypro by acquiring 100% of the issued and outstanding common shares of Nypro for net aggregate consideration of $679.5 million, which was funded from available cash. Nypro is a provider of manufactured precision plastic products for customers in the healthcare, packaging and consumer electronics industries. Nypro has advanced capabilities in product design, tooling, injection molding, surface decoration and complete product manufacturing. | |||||||||
The acquisition of Nypro has been accounted for as a business combination using the acquisition method of accounting. The following table (in thousands) summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. The allocation of the purchase price is considered preliminary pending final valuation by the Company for property, plant and equipment, intangible assets, noncontrolling interests and tax adjustments. | |||||||||
Cash | $ | 77,384 | |||||||
Other current assets | 343,446 | ||||||||
Property, plant and equipment | 282,599 | ||||||||
Intangible assets | 196,800 | ||||||||
Goodwill | 335,871 | ||||||||
Other assets | 28,304 | ||||||||
Current liabilities | (322,397 | ) | |||||||
Long-term deferred tax liability | (153,030 | ) | |||||||
Other liabilities | (72,906 | ) | |||||||
Noncontrolling interests | (36,548 | ) | |||||||
Net assets acquired | $ | 679,523 | |||||||
The excess of the purchase price over the fair value of the acquired assets and assumed liabilities of $335.9 million was recorded to goodwill and was assigned fully to the DMS reportable segment. The goodwill is not expected to be deductible for tax purposes. | |||||||||
The $196.8 million of acquired intangible assets include $72.5 million assigned to customer relationships with an assigned useful life of up to 14 years, $52.7 million assigned to intellectual property with an assigned useful life of up to nine years and $71.6 million assigned to an indefinite-lived trade name. | |||||||||
During the fiscal year ended August 31, 2013, the Company expensed transaction costs of $13.5 million related to the Nypro acquisition within the Consolidated Statement of Operations. | |||||||||
The results for the fiscal year ended August 31, 2013 included results from Nypro between July 1, 2013 and August 31, 2013. During this period, Nypro contributed $183.2 million in revenue and $(8.8) million of net income to the Company’s Consolidated Statements of Operations. The following unaudited pro forma financial information for the fiscal years ended August 31, 2013 and 2012 represent the combined results of the Company’s operations as if the Nypro acquisition had occurred on September 1, 2011 (in thousands, except earnings per share). | |||||||||
Pro forma | |||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Net revenue | $ | 19,238,000 | $ | 18,275,067 | |||||
Net income | $ | 290,838 | $ | 473,791 | |||||
Earnings per share, basic | $ | 1.43 | $ | 2.3 | |||||
Earnings per share, diluted | $ | 1.4 | $ | 2.24 | |||||
Pro forma earnings for the fiscal years ended August 31, 2013 and 2012 were adjusted by $(75.2) million and $89.3 million, respectively, for recurring changes in amortization, interest expense and income taxes related to the acquisition and certain non-recurring acquisition costs and income taxes associated with a repatriation of foreign earnings to the U.S. The pro forma earnings do not include any adjustments for cost savings and other synergy benefits. | |||||||||
On December 1, 2011, the Company completed its acquisition of Telmar by acquiring 100% of the issued and outstanding common shares of Telmar for approximately $128.9 million in cash. Telmar is a global provider of services and solutions for network service providers and enterprise and original equipment manufacturers. The acquisition of Telmar is expected to enhance the Company’s position in the telecommunications manufacturing and reverse logistics sector. | |||||||||
The acquisition of Telmar has been accounted for as a business combination using the acquisition method of accounting. Pro forma information has not been provided as the acquisition of Telmar is not deemed to be significant. Assets acquired of $184.2 million, including $60.9 million in goodwill and $49.9 million in finite-lived intangible assets, and liabilities assumed of $55.3 million were recorded at their estimated fair values as of the acquisition date. | |||||||||
The excess of the purchase price over the fair value of the acquired assets and assumed liabilities of $60.9 million was recorded to goodwill and was assigned fully to the DMS reportable segment. | |||||||||
During the second quarter of fiscal year 2011, the Company completed its acquisition of F-I Holding Company, which directly or indirectly wholly owns the Competence Sites. The Competence Sites were former operations of the Company and were previously disposed of during the fourth quarter of fiscal year 2010. Refer to Note 15 - “Loss on Disposal of Subsidiaries” for further discussion of the previous disposition. In order to reestablish viable operations, including the preservation of the Company’s relationship with certain global customers that the Company continued to serve outside of its former French and Italian operations and jobs of former employees, the Company acquired the entities owning the Competence Sites following multiple breaches by the third party purchaser. The acquisition added approximately 1,500 employees to the Company. | |||||||||
In exchange for cash of approximately $0.5 million and certain mutual conditional releases, the Company acquired a 100% equity interest in the Competence Sites. Simultaneously, with this transaction, the Company recorded a settlement of pre-existing receivables and other relationships with a fair value of $22.3 million that were outstanding at the time of acquisition. | |||||||||
During the second quarter of fiscal year 2011, immediately prior to the acquisition of the Competence Sites, the Company recognized a charge of $12.7 million in order to record $35.0 million in receivables and other relationships with the Competence Sites at their respective fair values. This charge is included in settlement of receivables and related charges within the Consolidated Statement of Operations for fiscal year 2011. The fair values of these receivables and other obligations were determined based on the probability evaluation of multiple scenarios under which the Competence Sites could settle these liabilities. | |||||||||
The acquisition of the Competence entities has been accounted for as a business combination using the acquisition method. Assets acquired of $131.4 million and liabilities assumed of $108.6 million were recorded at their estimated fair values as of the acquisition date. The $7.1 million excess of purchase price over the tangible assets and assumed liabilities, based on the exchange rate on the date of acquisition, was recorded as goodwill within the E&I reportable segment. |
New_Accounting_Guidance
New Accounting Guidance | 12 Months Ended |
Aug. 31, 2013 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Guidance | 17. New Accounting Guidance |
a. Recently Adopted Accounting Guidance | |
In the second quarter of fiscal year 2011, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which requires an entity to disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period. This accounting guidance became effective for the Company for business combinations that occurred beginning in fiscal year 2013. The adoption of this guidance did not have a significant impact on the Company’s Consolidated Financial Statements. | |
During the fourth quarter of fiscal year 2011, the FASB issued new accounting guidance which requires entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. This accounting guidance became effective for the Company beginning in the first quarter of fiscal year 2013. The adoption of this guidance did not have a significant impact on the Company’s Consolidated Financial Statements. | |
During the fourth quarter of fiscal year 2011, the FASB issued new accounting guidance intended to simplify how an entity tests goodwill for impairment. The guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity is no longer required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting guidance became effective for the Company for the annual and interim goodwill impairment tests performed for fiscal year 2013. The adoption of this guidance did not have a significant impact on the Company’s Consolidated Financial Statements. | |
b. Recently Issued Accounting Guidance | |
During the second quarter of fiscal year 2012, the FASB issued new accounting guidance requiring an entity to enhance disclosures about financial instruments and derivative instruments that are either offset or subject to an enforceable master netting arrangement or similar agreement. During the second quarter of fiscal year 2013, the FASB issued new guidance clarifying the scope to include bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The enhanced disclosures required by this guidance are intended to enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position including the effect or potential effect of rights of setoff for certain financial instruments and derivative instruments. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2014 with disclosures to be provided retrospectively for all comparative periods presented. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements. | |
During the fourth quarter of fiscal year 2012, the FASB issued new accounting guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The guidance will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative indefinite-lived intangible asset impairment test. An entity no longer will be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting guidance is effective for the Company for the annual and interim indefinite-lived intangible asset impairment tests performed for fiscal year 2014. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements. | |
During the second quarter of fiscal year 2013, the FASB issued new accounting guidance requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional information about those amounts. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2014. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements. | |
During the third quarter of fiscal year 2013, the FASB issued new accounting guidance intended to clarify the applicable guidance for the release of the cumulative translation adjustment when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity that is a business and when there is a loss of a controlling financial interest in a foreign entity or a step acquisition involving an equity method investment that is a foreign entity. Additionally, the new guidance emphasizes that the release of the cumulative translation adjustment into net income for sales or transfers of a controlling financial interest within a foreign entity is the same irrespective of whether the sale or transfer is of a subsidiary or a group of assets that is a business. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2015. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events |
The Company has evaluated subsequent events that occurred through the date of the filing of the Company’s fiscal year 2013 Form 10-K. No significant events occurred subsequent to the balance sheet date and prior to the filing date of this report that would have a material impact on the Consolidated Financial Statements. |
SCHEDULE_OF_VALUATION_AND_QUAL
SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | |||||||||||||||||||||
SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | ||||||||||||||||||||
JABIL CIRCUIT, INC. AND SUBSIDIARIES | |||||||||||||||||||||
SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance at | Additions and | Additions/(Reductions) | Write-offs | Balance at | |||||||||||||||||
beginning | adjustments | charged to | end of period | ||||||||||||||||||
of period | charged to costs | other | |||||||||||||||||||
and expenses | accounts | ||||||||||||||||||||
Allowance for uncollectible accounts receivable: | |||||||||||||||||||||
Fiscal year ended August 31, 2013 | $ | 3,237 | $ | 1,770 | $ | — | $ | (2,290 | ) | $ | 2,717 | ||||||||||
Fiscal year ended August 31, 2012 | $ | 4,788 | $ | 564 | $ | — | $ | (2,115 | ) | $ | 3,237 | ||||||||||
Fiscal year ended August 31, 2011 | $ | 13,939 | $ | 5,179 | $ | (6,428 | ) | $ | (7,902 | ) | $ | 4,788 | |||||||||
Balance at | Additions | Additions/(Reductions) | Reductions | Balance at | |||||||||||||||||
beginning | charged to | charged to | charged to costs | end of period | |||||||||||||||||
of period | costs and | other | and expenses | ||||||||||||||||||
expenses | accounts | ||||||||||||||||||||
Valuation allowance for deferred taxes: | |||||||||||||||||||||
Fiscal year ended August 31, 2013 | $ | 487,745 | $ | 30,957 | $ | (121,840 | ) | $ | (78,251 | ) | $ | 318,611 | |||||||||
Fiscal year ended August 31, 2012 | $ | 469,067 | $ | 69,685 | $ | (39,065 | ) | $ | (11,942 | ) | $ | 487,745 | |||||||||
Fiscal year ended August 31, 2011 | $ | 375,301 | $ | 46,825 | $ | 76,489 | $ | (29,548 | ) | $ | 469,067 | ||||||||||
The increases charged to costs and expenses primarily related to losses in sites with existing valuation allowances. The reductions charged to other accounts primarily related to expired and Internal Revenue Code Section 382 limited federal net operating loss carry forwards of $70.3 million, expired foreign net operating loss carry forwards, and an increase in non-U.S. unrecognized tax benefits of $50.0 million, which were partially offset by additions from the Nypro acquisition. The reductions charged to costs and expenses primarily related to a $104.0 million partial release of the U.S. valuation allowance due to the U.S. deferred tax liabilities from the Nypro acquisition, which represent future sources of taxable income to support the realization of the deferred tax assets and the release of a non-U.S. valuation allowance. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Principles of Consolidation and Basis of Presentation | a. Principles of Consolidation and Basis of Presentation | ||||||||||||
The consolidated financial statements include the accounts and operations of the Company, and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) necessary to present fairly the information have been included. Certain amounts in the prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. | |||||||||||||
Use of Accounting Estimates | b. Use of Accounting Estimates | ||||||||||||
Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements. They also affect the reported amounts of net income. Actual results could differ materially from these estimates and assumptions. | |||||||||||||
Cash and Cash Equivalents | c. Cash and Cash Equivalents | ||||||||||||
The Company considers all highly liquid instruments with original maturities of 90 days or less to be cash equivalents for consolidated financial statement purposes. Cash equivalents consist of investments in money market funds with original maturities of 90 days or less. At August 31, 2013 and 2012 there were $6.5 million and $374.3 million of cash equivalents, respectively. Management considers the carrying value of cash and cash equivalents to be a reasonable approximation of fair value given the short-term nature of these financial instruments. | |||||||||||||
Inventories | d. Inventories | ||||||||||||
Inventories are stated at the lower of cost (the first in, first out (FIFO) method for manufacturing operations and the average method for aftermarket services operations) or market. | |||||||||||||
Property, Plant and Equipment, net | e. Property, Plant and Equipment, net | ||||||||||||
Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are as follows: | |||||||||||||
Asset Class | Estimated Useful Life | ||||||||||||
Buildings | Up to 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 | ||||||||||||
Certain equipment held under capital leases is classified as property, plant and equipment and the related obligation is recorded as notes payable, long-term debt and capital lease obligations on the Consolidated Balance Sheets. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Operations. Maintenance and repairs are expensed as they are incurred. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. | |||||||||||||
Goodwill and Other Intangible Assets | f. Goodwill and Other Intangible Assets | ||||||||||||
The Company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired. Business combinations can also result in other intangible assets being recognized. Amortization of intangible assets, if applicable, occurs over the estimated useful life of the asset. The Company tests goodwill for impairment at least annually or more frequently under certain circumstances, using a two-step method. The Company conducts this review during the fourth quarter of each fiscal year absent any triggering events. Furthermore, identifiable intangible assets that are determined to have indefinite useful economic lives are not amortized, but are separately tested for impairment at least annually, using a one-step fair value based approach or when certain indicators of impairment are present. | |||||||||||||
Impairment of Long-lived Assets | g. Impairment of Long-lived Assets | ||||||||||||
Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparison of its carrying amount to undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value which is generally determined as the present value of estimated future cash flows or as the appraised value. | |||||||||||||
Revenue Recognition | h. Revenue Recognition | ||||||||||||
The Company’s net revenue is principally from the manufacturing services of electronic equipment built to customer specifications. The Company also derives revenue to a lesser extent from aftermarket services, design services and excess inventory sales. Revenue from manufacturing services and excess inventory sales is generally recognized, net of estimated product return costs, when goods are shipped; title and risk of ownership have passed; the price to the buyer is fixed or determinable; and collectability is reasonably assured. Aftermarket service related revenue is generally recognized upon completion of the services. Design service related revenue is generally recognized upon completion and acceptance by the respective customer. The Company generally assumes no significant obligations after product shipment. Taxes that are collected from the Company’s customers and remitted to governmental authorities are presented within the Company’s Consolidated Statement of Operations on a net basis. | |||||||||||||
Accounts Receivable | i. Accounts Receivable | ||||||||||||
Accounts receivable consist of trade receivables, notes receivable and miscellaneous receivables. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. Allowances of $2.7 million and $3.2 million were recorded at August 31, 2013 and 2012, respectively. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for doubtful accounts are made as necessary. | |||||||||||||
Income Taxes | j. Income Taxes | ||||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company has considered future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. | |||||||||||||
Earnings Per Share | k. Earnings Per Share | ||||||||||||
The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share data). | |||||||||||||
Fiscal Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Jabil Circuit, Inc. | $ | 371,482 | $ | 394,687 | $ | 381,063 | |||||||
Denominator for basic and diluted earnings per share: | |||||||||||||
Weighted-average common shares outstanding | 203,096 | 206,160 | 212,386 | ||||||||||
Share-based payment awards classified as participating securities | — | — | 2,116 | ||||||||||
Denominator for basic earnings per share | 203,096 | 206,160 | 214,502 | ||||||||||
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights | 33 | 315 | 872 | ||||||||||
Dilutive unvested restricted stock awards | 4,686 | 4,706 | 5,345 | ||||||||||
Denominator for diluted earnings per share | 207,815 | 211,181 | 220,719 | ||||||||||
Earnings per share: | |||||||||||||
Income attributable to the stockholders of Jabil Circuit, Inc.: | |||||||||||||
Basic | $ | 1.83 | $ | 1.91 | $ | 1.78 | |||||||
Diluted | $ | 1.79 | $ | 1.87 | $ | 1.73 | |||||||
For fiscal year 2013, options to purchase 3,664,364 shares of common stock and 4,485,266 stock appreciation rights were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. | |||||||||||||
For fiscal year 2012, options to purchase 3,748,037 shares of common stock and 4,930,935 stock appreciation rights were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. | |||||||||||||
For fiscal year 2011, there were no shares of common stock or stock appreciation rights excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. | |||||||||||||
Foreign Currency Transactions | l. Foreign Currency Transactions | ||||||||||||
For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved and remeasurement adjustments for foreign operations where the U.S. dollar is the functional currency are included in operating income. | |||||||||||||
Fair Value of Financial Instruments | m. Fair Value of Financial Instruments | ||||||||||||
The three levels of the fair-value hierarchy include: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 above that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. | |||||||||||||
The carrying amounts of cash and cash equivalents, trade accounts receivable, income taxes receivable, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short-term nature of these financial instruments. Refer to Note 2 – “Trade Accounts Receivable Securitization and Sale Programs”, Note 7 – “Notes Payable, Long-Term Debt and Capital Lease Obligations”, Note 8 – “Postretirement and Other Employee Benefits”, Note 12 – “Derivative Financial Instruments and Hedging Activities” and Note 15 – “Loss on Disposal of Subsidiaries” for disclosure surrounding the fair value of the Company’s deferred purchase price receivables, debt obligations, pension plan assets, derivative financial instruments and notes receivable, respectively. | |||||||||||||
Stock-Based Compensation | n. Stock-Based Compensation | ||||||||||||
The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The Company recorded $68.4 million, $81.4 million and $76.2 million of stock-based compensation expense gross of tax effects, which is included in selling, general and administrative expenses within the Consolidated Statements of Operations for fiscal years 2013, 2012, and 2011, respectively. The Company recorded an additional tax (expense) benefit related to the stock-based compensation expense of $(0.1) million, $1.4 million and $1.2 million, which is included in income tax expense within the Consolidated Statements of Operations for fiscal years 2013, 2012, and 2011, respectively. Included in the compensation expense recognized by the Company is $4.4 million, $4.4 million and $3.8 million related to the Company’s employee stock purchase plan (“ESPP”) during fiscal years 2013, 2012, and 2011, respectively. The Company capitalizes stock-based compensation costs related to awards granted to employees whose compensation costs are directly attributable to the cost of inventory. At August 31, 2013 and 2012, $0.3 million of stock-based compensation costs were classified as inventories on the Consolidated Balance Sheets. | |||||||||||||
Cash received from exercises under all share-based payment arrangements, including the Company’s ESPP, for fiscal years 2013, 2012, and 2011 was $18.3 million, $26.0 million and $31.6 million, respectively. The proceeds for fiscal years 2013, 2012, and 2011 were offset by $20.3 million, $31.2 million and $9.8 million, respectively, of restricted shares withheld by the Company to satisfy the minimum amount of its income tax withholding requirements. The fair value of the restricted shares withheld was determined on the date that the restricted shares vested and resulted in the withholding of 1,184,162 shares, 1,590,721 shares and 681,446 shares of the Company’s common stock during the 12 months ended August 31, 2013, 2012, and 2011, respectively. The shares have been classified as treasury stock on the Consolidated Balance Sheets. The Company currently expects to satisfy share-based awards with registered shares available to be issued. | |||||||||||||
See Note 10 – “Stockholders’ Equity” for further discussion of stock-based compensation expense. | |||||||||||||
Comprehensive Income | o. Comprehensive Income | ||||||||||||
Comprehensive income is the changes in equity of an enterprise except those resulting from stockholder transactions. | |||||||||||||
Accumulated other comprehensive income consists of the following (in thousands): | |||||||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Foreign currency translation adjustment | $ | 125,594 | $ | 149,116 | |||||||||
Unrecognized losses on derivative instruments, net of tax | (5,050 | ) | (7,153 | ) | |||||||||
Actuarial loss, net of tax | (40,258 | ) | (35,783 | ) | |||||||||
Prior service cost, net of tax | 962 | 95 | |||||||||||
$ | 81,248 | $ | 106,275 | ||||||||||
The actuarial loss and prior service cost recorded to accumulated other comprehensive income at August 31, 2013 are net of a tax benefit (loss) of $6.9 million and $(0.3) million, respectively. The actuarial loss and prior service cost recorded to accumulated other comprehensive income at August 31, 2012 are net of a tax benefit (loss) of $6.2 million and $(32.0) thousand, respectively. The unrecognized losses on derivative instruments recorded to accumulated other comprehensive income during fiscal years 2013 and 2012 are net of tax benefits of $14.1 million and $14.8 million, respectively. | |||||||||||||
Derivative Instruments | p. Derivative Instruments | ||||||||||||
All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The Company does not intend to use derivative financial instruments for speculative purposes. Generally, if a derivative instrument is designated as a cash flow hedge, the change in the fair value of the derivative is recorded in other comprehensive income to the extent the derivative is effective, and recognized in the Consolidated Statement of Operations when the hedged item affects earnings. If a derivative instrument is designated as a fair value hedge, the change in fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings in the current period. Changes in fair value of derivatives that are not designated as hedges are recorded in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Refer to Note 12 – “Derivative Financial Instruments and Hedging Activities” for further discussion surrounding the Company’s derivative instruments. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Estimated Useful Lives for Major Classes of Depreciable Assets | Estimated useful lives for major classes of depreciable assets are as follows: | ||||||||||||
Asset Class | Estimated Useful Life | ||||||||||||
Buildings | Up to 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 | ||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share data). | ||||||||||||
Fiscal Year Ended August 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Jabil Circuit, Inc. | $ | 371,482 | $ | 394,687 | $ | 381,063 | |||||||
Denominator for basic and diluted earnings per share: | |||||||||||||
Weighted-average common shares outstanding | 203,096 | 206,160 | 212,386 | ||||||||||
Share-based payment awards classified as participating securities | — | — | 2,116 | ||||||||||
Denominator for basic earnings per share | 203,096 | 206,160 | 214,502 | ||||||||||
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights | 33 | 315 | 872 | ||||||||||
Dilutive unvested restricted stock awards | 4,686 | 4,706 | 5,345 | ||||||||||
Denominator for diluted earnings per share | 207,815 | 211,181 | 220,719 | ||||||||||
Earnings per share: | |||||||||||||
Income attributable to the stockholders of Jabil Circuit, Inc.: | |||||||||||||
Basic | $ | 1.83 | $ | 1.91 | $ | 1.78 | |||||||
Diluted | $ | 1.79 | $ | 1.87 | $ | 1.73 | |||||||
Accumulated Other Comprehensive Income | Accumulated other comprehensive income consists of the following (in thousands): | ||||||||||||
August 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Foreign currency translation adjustment | $ | 125,594 | $ | 149,116 | |||||||||
Unrecognized losses on derivative instruments, net of tax | (5,050 | ) | (7,153 | ) | |||||||||
Actuarial loss, net of tax | (40,258 | ) | (35,783 | ) | |||||||||
Prior service cost, net of tax | 962 | 95 | |||||||||||
$ | 81,248 | $ | 106,275 | ||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consist of the following (in thousands): | ||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 1,412,948 | $ | 1,534,182 | |||||
Work in process | 548,096 | 444,721 | |||||||
Finished goods | 341,111 | 290,046 | |||||||
$ | 2,302,155 | $ | 2,268,949 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||
Aug. 31, 2013 | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Income (Loss) Before Income Taxes and Noncontrolling Interests | Income (loss) before income tax expense and noncontrolling interests is summarized below (in thousands): | ||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
U.S. | $ | (117,312 | ) | $ | (147,567 | ) | $ | (112,705 | ) | ||||||
Non-U.S. | 503,376 | 656,467 | 593,892 | ||||||||||||
$ | 386,064 | $ | 508,900 | $ | 481,187 | ||||||||||
Income Tax Expense (Benefit) | Income tax expense (benefit) is summarized below (in thousands): | ||||||||||||||
Fiscal Year Ended August 31, | Current | Deferred | Total | ||||||||||||
2013:00:00 | U.S. – Federal | $ | 4,762 | $ | (108,779 | ) | $ | (104,017 | ) | ||||||
U.S. – State | 567 | 3,391 | 3,958 | ||||||||||||
Non-U.S. | 136,602 | (20,570 | ) | 116,032 | |||||||||||
$ | 141,931 | $ | (125,958 | ) | $ | 15,973 | |||||||||
2012:00:00 | U.S. – Federal | $ | 2,240 | $ | 2,172 | $ | 4,412 | ||||||||
U.S. – State | 279 | 462 | 741 | ||||||||||||
Non-U.S. | 125,646 | (17,988 | ) | 107,658 | |||||||||||
$ | 128,165 | $ | (15,354 | ) | $ | 112,811 | |||||||||
2011:00:00 | U.S. – Federal | $ | (8,937 | ) | $ | 4,123 | $ | (4,814 | ) | ||||||
U.S. – State | 1,103 | 97 | 1,200 | ||||||||||||
Non-U.S. | 102,826 | (983 | ) | 101,843 | |||||||||||
$ | 94,992 | $ | 3,237 | $ | 98,229 | ||||||||||
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense | Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to the actual income tax expense are summarized below (in thousands): | ||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Tax at U.S. federal statutory income tax rate (35%) | $ | 135,122 | $ | 178,115 | $ | 168,416 | |||||||||
State income taxes, net of federal tax benefit | (6,285 | ) | (4,013 | ) | (2,688 | ) | |||||||||
Impact of foreign tax rates | (141,443 | ) | (116,198 | ) | (94,392 | ) | |||||||||
Permanent impact of non-deductible cost | 13,212 | 2,147 | 4,639 | ||||||||||||
Income tax credits | (8,643 | ) | (13,125 | ) | (38,707 | ) | |||||||||
Changes in tax rates on deferred tax assets and liabilities | 7,416 | (9,048 | ) | 10,147 | |||||||||||
Valuation allowance | (47,294 | ) | 57,743 | 17,277 | |||||||||||
Non-deductible equity compensation | 21,410 | 6,655 | 7,581 | ||||||||||||
Impact of intercompany charges | 30,106 | 1,742 | 12,658 | ||||||||||||
Other, net | 12,372 | 8,793 | 13,298 | ||||||||||||
Total income tax expense | $ | 15,973 | $ | 112,811 | $ | 98,229 | |||||||||
Current and Noncurrent Net Deferred Tax Assets | The current and noncurrent net deferred tax assets are summarized below (in thousands): | ||||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Current deferred tax assets | $ | 46,260 | $ | 27,833 | |||||||||||
Current deferred tax liabilities | (6,253 | ) | (3,955 | ) | |||||||||||
Noncurrent deferred tax assets | 94,069 | 73,411 | |||||||||||||
Noncurrent deferred tax liabilities | (73,173 | ) | (24,245 | ) | |||||||||||
Total net deferred tax assets | $ | 60,903 | $ | 73,044 | |||||||||||
Deferred Tax Assets and Liabilities | The significant components of the deferred tax assets and liabilities are summarized below (in thousands): | ||||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Deferred tax assets: | |||||||||||||||
Net operating loss carry forward | $ | 293,008 | $ | 280,196 | |||||||||||
Receivables | 3,638 | 3,275 | |||||||||||||
Inventories | 11,730 | 10,909 | |||||||||||||
Compensated absences | 9,699 | 7,957 | |||||||||||||
Accrued expenses | 54,217 | 49,318 | |||||||||||||
Property, plant and equipment, principally due to differences in depreciation and amortization | 4,606 | 12,644 | |||||||||||||
U.S. federal and state tax credits | 32,402 | 18,708 | |||||||||||||
Foreign jurisdiction tax credits | 18,617 | 13,587 | |||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Equity compensation – U.S. | 60,765 | 65,800 | |||||||||||||
Equity compensation – Non-U.S. | 8,886 | 8,807 | |||||||||||||
Cash flow hedges | 7,455 | 8,616 | |||||||||||||
Intangible assets | — | 69,885 | |||||||||||||
Capital loss carryforward | 8,643 | 8,845 | |||||||||||||
Other | 21,759 | 12,362 | |||||||||||||
Total deferred tax assets before valuation allowances | 535,425 | 570,909 | |||||||||||||
Less valuation allowances | (318,611 | ) | (487,745 | ) | |||||||||||
Net deferred tax assets | $ | 216,814 | $ | 83,164 | |||||||||||
Deferred tax liabilities: | |||||||||||||||
Unremitted earnings of non-U.S. subsidiaries | 80,000 | — | |||||||||||||
Intangible assets | 63,277 | — | |||||||||||||
Other | 12,634 | 10,120 | |||||||||||||
Total deferred tax liabilities | $ | 155,911 | $ | 10,120 | |||||||||||
Net deferred tax assets | $ | 60,903 | $ | 73,044 | |||||||||||
Reconciliations of Unrecognized Tax Benefits | Reconciliations of the unrecognized tax benefits are summarized below (in thousands): | ||||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Beginning balance | $ | 116,661 | $ | 84,942 | $ | 78,140 | |||||||||
Additions for tax positions of prior years | 83,115 | 48,986 | 2,979 | ||||||||||||
Reductions for tax positions of prior years | (7,713 | ) | (10,446 | ) | (12,631 | ) | |||||||||
Additions for tax positions related to current year | 30,886 | 12,316 | 18,431 | ||||||||||||
Fiscal Year Ended | |||||||||||||||
August 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Additions for tax positions related to acquired entities | 21,000 | 3,275 | 3,648 | ||||||||||||
Cash settlements | (1,177 | ) | (7,880 | ) | (1,667 | ) | |||||||||
Reductions from lapses in statutes of limitations | (784 | ) | (2,521 | ) | (2,840 | ) | |||||||||
Reductions from settlements with taxing authorities | (20,166 | ) | (9,680 | ) | (5,349 | ) | |||||||||
Foreign exchange rate adjustment | 406 | (2,331 | ) | 4,231 | |||||||||||
Ending balance | $ | 222,228 | $ | 116,661 | $ | 84,942 | |||||||||
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $ | 75,714 | $ | 68,924 | $ | 68,859 | |||||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property, Plant and Equipment | Property, plant and equipment consists of the following (in thousands): | ||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Land and improvements | $ | 113,534 | $ | 104,235 | |||||
Buildings | 710,643 | 613,843 | |||||||
Leasehold improvements | 369,792 | 235,902 | |||||||
Machinery and equipment | 2,222,257 | 1,787,071 | |||||||
Furniture, fixtures and office equipment | 131,703 | 109,767 | |||||||
Computer hardware and software | 491,211 | 442,220 | |||||||
Transportation equipment | 21,650 | 20,648 | |||||||
Construction in progress | 145,544 | 43,735 | |||||||
4,206,334 | 3,357,421 | ||||||||
Less accumulated depreciation and amortization | 1,810,736 | 1,578,266 | |||||||
$ | 2,395,598 | $ | 1,779,155 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Changes in Goodwill Allocated to Reportable Segments | The following tables present the changes in goodwill allocated to the Company’s reportable segments, Diversified Manufacturing Services (“DMS”), Enterprise & Infrastructure (“E&I”) and High Velocity Systems (“HVS”), during the fiscal years ended August 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||
August 31, 2012 | August 31, 2013 | ||||||||||||||||||||||||||||
Reportable Segment | Gross | Accumulated | Acquisitions | Foreign | Gross | Accumulated | Net Balance | ||||||||||||||||||||||
Balance | Impairment | Currency | Balance | Impairment | |||||||||||||||||||||||||
Balance | Impact | Balance | |||||||||||||||||||||||||||
DMS | $ | 643,748 | $ | (558,768 | ) | $ | 341,593 | $ | (715 | ) | $ | 984,626 | $ | (558,768 | ) | $ | 425,858 | ||||||||||||
E&I | 341,822 | (331,784 | ) | — | 309 | 342,131 | (331,784 | ) | 10,347 | ||||||||||||||||||||
HVS | 132,269 | (132,269 | ) | — | — | 132,269 | (132,269 | ) | — | ||||||||||||||||||||
Total | $ | 1,117,839 | $ | (1,022,821 | ) | $ | 341,593 | $ | (406 | ) | $ | 1,459,026 | $ | (1,022,821 | ) | $ | 436,205 | ||||||||||||
August 31, 2011 | August 31, 2012 | ||||||||||||||||||||||||||||
Reportable Segment | Gross | Accumulated | Acquisitions | Foreign | Gross | Accumulated | Net Balance | ||||||||||||||||||||||
Balance | Impairment | Currency | Balance | Impairment | |||||||||||||||||||||||||
Balance | Impact | Balance | |||||||||||||||||||||||||||
DMS | $ | 584,018 | $ | (558,768 | ) | $ | 60,942 | $ | (1,212 | ) | $ | 643,748 | $ | (558,768 | ) | $ | 84,980 | ||||||||||||
E&I | 342,733 | (331,784 | ) | — | (911 | ) | 341,822 | (331,784 | ) | 10,038 | |||||||||||||||||||
HVS | 132,269 | (132,269 | ) | — | — | 132,269 | (132,269 | ) | — | ||||||||||||||||||||
Total | $ | 1,059,020 | $ | (1,022,821 | ) | $ | 60,942 | $ | (2,123 | ) | $ | 1,117,839 | $ | (1,022,821 | ) | $ | 95,018 | ||||||||||||
Total Purchased Intangible Assets | The following tables present the Company’s total purchased intangible assets at August 31, 2013 and August 31, 2012 (in thousands): | ||||||||||||||||||||||||||||
August 31, 2013 | Gross | Accumulated | Net | ||||||||||||||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Contractual agreements and customer relationships | $ | 199,665 | $ | (76,341 | ) | $ | 123,324 | ||||||||||||||||||||||
Intellectual property | 137,388 | (78,997 | ) | 58,391 | |||||||||||||||||||||||||
Finite-lived trade name | 2,647 | (2,322 | ) | 325 | |||||||||||||||||||||||||
Indefinite-lived trade name | 122,190 | — | 122,190 | ||||||||||||||||||||||||||
Total | $ | 461,890 | $ | (157,660 | ) | $ | 304,230 | ||||||||||||||||||||||
August 31, 2012 | Gross | Accumulated | Net | ||||||||||||||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Contractual agreements and customer relationships | $ | 122,679 | $ | (63,772 | ) | $ | 58,907 | ||||||||||||||||||||||
Intellectual property | 84,688 | (76,799 | ) | 7,889 | |||||||||||||||||||||||||
Finite-lived trade name | 2,668 | (1,001 | ) | 1,667 | |||||||||||||||||||||||||
Indefinite-lived trade name | 50,590 | — | 50,590 | ||||||||||||||||||||||||||
Total | $ | 260,625 | $ | (141,572 | ) | $ | 119,053 | ||||||||||||||||||||||
Estimated Future Amortization Expense | The estimated future amortization expense is as follows (in thousands): | ||||||||||||||||||||||||||||
Fiscal Year Ending August 31, | Amount | ||||||||||||||||||||||||||||
2014 | $ | 24,883 | |||||||||||||||||||||||||||
2015 | 21,740 | ||||||||||||||||||||||||||||
2016 | 18,491 | ||||||||||||||||||||||||||||
2017 | 16,986 | ||||||||||||||||||||||||||||
2018 | 16,986 | ||||||||||||||||||||||||||||
Thereafter | 82,954 | ||||||||||||||||||||||||||||
Total | $ | 182,040 | |||||||||||||||||||||||||||
Notes_Payable_LongTerm_Debt_an1
Notes Payable, Long-Term Debt and Capital Lease Obligations (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes Payable, Long-Term Debt and Capital Lease Obligations Outstanding | Notes payable, long-term debt and capital lease obligations outstanding at August 31, 2013 and 2012 are summarized below (in thousands). | ||||||||
August 31, | August 31, | ||||||||
2013 | 2012 | ||||||||
7.750% Senior Notes due 2016 (a) | $ | 306,940 | $ | 305,221 | |||||
8.250% Senior Notes due 2018 (b) | 398,284 | 397,903 | |||||||
5.625% Senior Notes due 2020 (c) | 400,000 | 400,000 | |||||||
4.700% Senior Notes due 2022 (d) | 500,000 | 500,000 | |||||||
Borrowings under credit facilities (e) | 200,000 | 8,000 | |||||||
Borrowings under loans (f) | 58,447 | 55,870 | |||||||
Capital lease obligations (g) | 35,468 | 166 | |||||||
Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes (h) | 6,823 | 9,197 | |||||||
Total notes payable, long-term debt and capital lease obligations | 1,905,962 | 1,676,357 | |||||||
Less current installments of notes payable, long-term debt and capital lease obligations | 215,536 | 18,031 | |||||||
Notes payable, long-term debt and capital lease obligations, less current installments | $ | 1,690,426 | $ | 1,658,326 | |||||
The $312.0 million of 7.750% senior unsecured notes, $400.0 million of 8.250% senior unsecured notes, $400.0 million of 5.625% senior unsecured notes and $500.0 million of 4.700% senior unsecured notes outstanding are carried at the principal amount of each note, less any unamortized discount. The estimated fair value of these senior notes was approximately $357.2 million, $476.0 million, $414.1 million and $491.8 million, respectively, at August 31, 2013. The fair value estimates are based upon observable market data (Level 2 criteria). | |||||||||
(a) | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the “7.750% Senior Notes”) at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a “change of control repurchase event.” | ||||||||
(b) | During the second and third quarters of fiscal year 2008, the Company issued $250.0 million and $150.0 million, respectively, of ten-year, unregistered 8.250% notes at 99.965% of par and 97.5% of par, respectively, resulting in net proceeds of approximately $245.7 million and $148.5 million, respectively. On July 18, 2008, 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 mature on March 15, 2018 and pay interest semiannually on March 15 and September 15. The interest rate payable on the 8.250% Senior Notes is subject to adjustment from time to time if the credit ratings assigned to the 8.250% Senior Notes increase or decrease, as provided in the 8.250% Senior Notes. The 8.250% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. | |||||||||
The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 8.250% Senior Notes upon a “change of control repurchase event.” | |||||||||
(c) | During the first quarter of fiscal year 2011, the Company issued $400.0 million of ten-year publicly registered 5.625% notes (the “5.625% Senior Notes”) at par. The net proceeds from the offering of $400.0 million were used to fully repay the term portion of the credit facility dated as of July 19, 2007 (the “Old Credit Facility”) and partially repay amounts outstanding under the Company’s foreign asset-backed securitization program. The 5.625% Senior Notes mature on December 15, 2020 and pay interest semiannually on June 15 and December 15 of each year, beginning on June 15, 2011. The 5.625% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 5.625% Senior Notes upon a “change of control repurchase event.” | ||||||||
(d) | During the fourth quarter of fiscal year 2012, the Company issued $500.0 million of ten-year publicly registered 4.700% notes (the “4.700% Senior Notes”) at 99.992% of par. The net proceeds from the offering of $500.0 million were used to repay outstanding borrowings under the revolving amended and restated senior unsecured five-year revolving credit facility entered into on March 19, 2012 (“the Amended and Restated Credit Facility”) and for general corporate purposes. The 4.700% Senior Notes mature on September 15, 2022 and pay interest semiannually on March 15 and September 15 of each year, beginning on March 15, 2013. The 4.700% Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries’ ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company’s assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company’s “restricted subsidiaries”); and guarantee any of the Company’s indebtedness (which only applies to the Company’s subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 4.700% Senior Notes upon a “change of control repurchase event.” | ||||||||
(e) | As of August 31, 2013, six of the Company’s foreign subsidiaries have credit facilities that finance their future growth and any corresponding working capital needs. Four of the credit facilities are denominated in U.S. dollars, one is denominated in Brazilian reais, and one is denominated in Taiwan dollar. The credit facilities incur interest at fixed and variable rates ranging from 1.8% to 10.0%. | ||||||||
During the third quarter of fiscal year 2012, the Company entered into the Amended and Restated Credit Facility which provides for a revolving credit facility in the initial amount of $1.3 billion. The Amended and Restated Credit Facility may, subject to lenders’ discretion, potentially be increased up to $1.6 billion and expires on March 19, 2017. Interest and fees on the Amended and Restated Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor’s Rating Service and Moody’s Investor Service. Interest is charged at a rate equal to either 0.175% to 0.850% above the base rate or 1.175% to 1.850% above the Eurocurrency rate, where the base rate represents the greatest of Citibank, N.A.’s prime rate, 0.50% above the federal funds rate, or 1.0% above one-month LIBOR, and the Eurocurrency rate represents adjusted LIBOR for the applicable interest period, each as more fully described in the Amended and Restated Credit Facility agreement. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. The Company, along with its subsidiaries, are subject to the following financial covenants: (1) a maximum ratio of (a) Debt (as defined in the Amended and Restated Credit Facility agreement) to (b) Consolidated EBITDA (as defined in the Amended and Restated Credit Facility agreement) and (2) a minimum ratio of (a) Consolidated EBITDA to (b) interest payable on, and amortization of debt discount in respect of, all Debt and loss on sale of accounts receivables. In addition, the Company is subject to other covenants, such as: limitation upon liens; limitation upon mergers, etc.; limitation upon accounting changes; limitation upon subsidiary debt; limitation upon sales, etc. of assets; limitation upon changes in nature of business; payment restrictions affecting subsidiaries; compliance with laws, etc.; payment of taxes, etc.; maintenance of insurance; preservation of corporate existence, etc.; visitation rights; keeping of books; maintenance of properties, etc.; transactions with affiliates; and reporting requirements. | |||||||||
During fiscal year 2013, the Company borrowed $5.4 billion against the Amended and Restated Credit Facility under multiple draws and repaid $5.2 billion under multiple payments. In addition, during the fourth quarter of fiscal year 2013, the Company borrowed $2.5 billion against the Amended and Restated Credit Facility under multiple draws and repaid $2.3 billion under multiple payments. | |||||||||
(f) | During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sells to and subsequently leases back from the VIE up to $60.0 million in certain machinery and equipment for a period of up to five years. In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consolidates the financial statements of the VIE and eliminates all intercompany transactions. At August 31, 2013, the VIE had approximately $46.6 million of total assets, of which approximately $45.4 million was comprised of a note receivable due from the Company, and approximately $46.0 million of total liabilities, of which approximately $45.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $45.9 million of the $60.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used only to settle the obligations of the VIE. | ||||||||
In addition to the loans described above, at August 31, 2013, the Company has borrowings outstanding to fund working capital needs. These additional loans total approximately $12.1 million, of which $11.9 million are denominated in Euros and $0.2 million are denominated in U.S. dollars. | |||||||||
(g) | During the fourth quarter of fiscal year 2013, the Company acquired various capital lease obligations in connection with the acquisition of Nypro. | ||||||||
(h) | This amount represents the fair value hedge accounting adjustment related to the 7.750% Senior Notes. For further discussion of the Company’s fair value hedges, see Note 12 - “Derivative Financial Instruments and Hedging Activities” to the Consolidated Financial Statements | ||||||||
Debt Maturities | Debt maturities as of August 31, 2013 for the next five years and thereafter are as follows (in thousands): | ||||||||
Fiscal Year Ending August 31, | Amount | ||||||||
2014 | $ | 215,536 | |||||||
2015 | 11,915 | ||||||||
2016 | 318,850 | ||||||||
2017 | 21,141 | ||||||||
2018 | 400,877 | ||||||||
Thereafter | 930,820 | ||||||||
Total(1) | $ | 1,899,139 | |||||||
-1 | The above table excludes a $6.8 million fair value adjustment related to the interest rate swap on the 7.750% Senior Notes. |
Postretirement_and_Other_Emplo1
Postretirement and Other Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||
Reconciliation of Change in Benefit Obligations for Plans | The following table provides a reconciliation of the change in the benefit obligations for the plans for fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Beginning projected benefit obligation | $ | 190,320 | $ | 137,874 | |||||||||||||||||
Service cost | 1,759 | 1,224 | |||||||||||||||||||
Interest cost | 7,202 | 7,494 | |||||||||||||||||||
Actuarial loss | 8,167 | 26,748 | |||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Curtailment gain | (87 | ) | — | ||||||||||||||||||
Total benefits paid | (5,196 | ) | (6,264 | ) | |||||||||||||||||
Plan participants’ contributions | 12 | 213 | |||||||||||||||||||
Amendments | (1,730 | ) | — | ||||||||||||||||||
Acquisitions | — | 28,122 | |||||||||||||||||||
Effect of conversion to U.S. dollars | (7,939 | ) | (5,091 | ) | |||||||||||||||||
Ending projected benefit obligation | $ | 192,508 | $ | 190,320 | |||||||||||||||||
Fair Values of Plan Assets by Asset Category | The fair values of the plan assets held by the Company by asset category for fiscal years 2013 and 2012 are as follows (in thousands): | ||||||||||||||||||||
Fair Value Measurements Using Inputs Considered as: | |||||||||||||||||||||
Fair Value at | Asset Allocation | Level 1 | Level 2 | Level 3 | |||||||||||||||||
August 31, 2013 | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,686 | 3 | % | $ | 4,686 | $ | — | — | ||||||||||||
Equity Securities: | |||||||||||||||||||||
Global equity securities(a) | 26,110 | 18 | % | — | 26,110 | — | |||||||||||||||
U.K. equity securities(b) | 20,923 | 15 | % | — | 20,923 | — | |||||||||||||||
Canadian equity securities(c) | 8,935 | 6 | % | — | 8,935 | — | |||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.K. corporate bonds(d) | 43,949 | 31 | % | — | 43,949 | — | |||||||||||||||
U.K. government bonds(e) | 14,257 | 10 | % | — | 14,257 | — | |||||||||||||||
Canadian government bonds(f) | 7,934 | 6 | % | — | 7,934 | — | |||||||||||||||
Other Investments: | |||||||||||||||||||||
Insurance contracts(g) | 12,114 | 9 | % | — | — | 12,114 | |||||||||||||||
Commercial real estate(h) | 1,956 | 1 | % | — | — | 1,956 | |||||||||||||||
Commercial mortgages(i) | 1,190 | 1 | % | — | — | 1,190 | |||||||||||||||
Fair value of plan assets | $ | 142,054 | 100 | % | $ | 4,686 | $ | 122,108 | $ | 15,260 | |||||||||||
Fair Value Measurements Using Inputs Considered as: | |||||||||||||||||||||
Fair Value at | Asset Allocation | Level 1 | Level 2 | Level 3 | |||||||||||||||||
August 31, 2012 | |||||||||||||||||||||
Asset Category | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,370 | 3 | % | $ | 4,370 | $ | — | — | ||||||||||||
Equity Securities: | |||||||||||||||||||||
Global equity securities(a) | 22,649 | 17 | % | — | 22,649 | — | |||||||||||||||
U.K. equity securities(b) | 18,544 | 14 | % | — | 18,544 | — | |||||||||||||||
Canadian equity securities(c) | 8,247 | 6 | % | — | 8,247 | — | |||||||||||||||
Debt Securities: | |||||||||||||||||||||
U.K. corporate bonds(d) | 42,983 | 32 | % | — | 42,983 | — | |||||||||||||||
U.K. government bonds(e) | 13,562 | 10 | % | — | 13,562 | — | |||||||||||||||
Canadian government bonds(f) | 8,757 | 7 | % | — | 8,757 | — | |||||||||||||||
Insurance Contracts: | |||||||||||||||||||||
Insurance contracts(g) | 11,046 | 8 | % | — | — | 11,046 | |||||||||||||||
Commercial real estate(h) | 1,987 | 2 | % | — | — | 1,987 | |||||||||||||||
Commercial mortgages(i) | 1,285 | 1 | % | — | — | 1,285 | |||||||||||||||
Fair value of plan assets | $ | 133,430 | 100 | % | $ | 4,370 | $ | 114,742 | $ | 14,318 | |||||||||||
(a) | Global equity securities are categorized as Level 2 and include investments that aim to capture global equity market returns by tracking the Financial Times (London) Stock Exchange (“FTSE”) AW-World (ex-UK) Index and other similar indexes in Canada. | ||||||||||||||||||||
(b) | 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 portfolio tracks the FTSE All-Share Index and invests only in U.K. securities. | ||||||||||||||||||||
(c) | Canadian equity securities are categorized as Level 2 and include investments in diversified portfolios that aim to capture the returns of Canadian small capitalization and dividend paying equities. The portfolios track the BMO Small Cap Index and the S&P/TSX Capped Equity Index and invest only in Canadian securities. | ||||||||||||||||||||
(d) | U.K. corporate bonds are categorized as Level 2 and include U.K. corporate issued fixed income investments which are managed and tracked to the respective benchmark (AAA-AA-A Bonds-Over 15Y Index). | ||||||||||||||||||||
(e) | 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). | ||||||||||||||||||||
(f) | Canadian government bonds are categorized as Level 2 and include Canadian government-issued fixed income investments which are managed and tracked to the respective benchmark (DEX Universe Bond Index). | ||||||||||||||||||||
(g) | 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. Insurance contract assets are recorded at fair value, which is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. | ||||||||||||||||||||
(h) | Commercial real estate investments are categorized as Level 3 and primarily consist of commercial properties located throughout the various provinces of Canada. The portfolio tracks the IPD Canadian Property Index and invests only in Canadian properties. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by obtaining quarterly independent market appraisals. The unobservable inputs consist of estimated unrealized gains and losses due to changes in real estate market conditions, which have an immaterial impact on the fair value calculations of the real estate investments held. | ||||||||||||||||||||
(i) | Commercial mortgage investments are categorized as Level 3 and primarily consist of mortgages on commercial properties located throughout the various provinces of Canada. The portfolio tracks the DEX Conventional Residential Mortgage Index and invests only in Canadian mortgages. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by calculating expected future cash flows at interest rates applicable to new mortgages of similar types and terms. The unobservable inputs consist of estimated unrealized gains and losses due to defaults and other real estate market events and estimated interest rates, which both have an immaterial impact on the fair value calculations of the mortgage investments held. | ||||||||||||||||||||
Reconciliation of Changes in Pension Plan Assets | The following table provides a reconciliation of the changes in the pension plan assets for the year between measurement dates for fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Beginning fair value of plan assets | $ | 133,430 | $ | 99,237 | |||||||||||||||||
Actual return on plan assets | 11,440 | 13,980 | |||||||||||||||||||
Acquisitions | — | 22,772 | |||||||||||||||||||
Employer contributions | 4,478 | 4,546 | |||||||||||||||||||
Benefits paid from plan assets | (4,843 | ) | (4,718 | ) | |||||||||||||||||
Plan participants’ contributions | 12 | 213 | |||||||||||||||||||
Effect of conversion to U.S. dollars | (2,463 | ) | (2,600 | ) | |||||||||||||||||
Ending fair value of plan assets | $ | 142,054 | $ | 133,430 | |||||||||||||||||
Reconciliation of Funded Status of Plans to Consolidated Balance Sheets | The following table provides a reconciliation of the funded status of the plans to the Consolidated Balance Sheets for fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Funded Status | |||||||||||||||||||||
Ending fair value of plan assets | $ | 142,054 | $ | 133,430 | |||||||||||||||||
Ending projected benefit obligation | (192,508 | ) | (190,320 | ) | |||||||||||||||||
Under or unfunded status | $ | (50,454 | ) | $ | (56,890 | ) | |||||||||||||||
Consolidated Balance Sheet Information | |||||||||||||||||||||
Accrued benefit liability, current | $ | (117 | ) | $ | (126 | ) | |||||||||||||||
Accrued benefit liability, noncurrent | (50,337 | ) | (56,764 | ) | |||||||||||||||||
Net liability recorded at August 31 | $ | (50,454 | ) | $ | (56,890 | ) | |||||||||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||||||||||||||||
Net actuarial loss | $ | 47,125 | $ | 41,977 | |||||||||||||||||
Prior service cost | (1,698 | ) | (127 | ) | |||||||||||||||||
Accumulated other comprehensive loss, before taxes | $ | 45,427 | $ | 41,850 | |||||||||||||||||
Estimated Amount that will be Amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost | The following table provides the estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal year 2013 (in thousands): | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
Recognized net actuarial loss | $ | 2,542 | |||||||||||||||||||
Amortization of prior service cost | (239 | ) | |||||||||||||||||||
Total | $ | 2,303 | |||||||||||||||||||
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets | The following table provides information for the plans with an accumulated benefit obligation in excess of plan assets for fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
August 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Projected benefit obligation | $ | 192,508 | $ | 190,320 | |||||||||||||||||
Accumulated benefit obligation | 179,920 | 177,056 | |||||||||||||||||||
Fair value of plan assets | 142,054 | 133,430 | |||||||||||||||||||
Information about Net Periodic Benefit Cost for Plans | The following table provides information about net periodic benefit cost for the plans for fiscal years 2013, 2012 and 2011 (in thousands): | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 1,759 | $ | 1,224 | $ | 1,494 | |||||||||||||||
Interest cost | 7,202 | 7,494 | 5,715 | ||||||||||||||||||
Expected long-term return on plan assets | (6,952 | ) | (6,104 | ) | (4,474 | ) | |||||||||||||||
Recognized actuarial loss | 2,474 | 1,207 | 2,073 | ||||||||||||||||||
Net curtailment gain | (3,401 | ) | — | (1,903 | ) | ||||||||||||||||
Amortization of prior service cost | (184 | ) | (26 | ) | (27 | ) | |||||||||||||||
Net periodic benefit cost | $ | 898 | $ | 3,795 | $ | 2,878 | |||||||||||||||
Estimated Future Benefit Payments | The estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands): | ||||||||||||||||||||
Fiscal Year Ending August 31, | Pension | ||||||||||||||||||||
Benefits | |||||||||||||||||||||
2014 | $ | 5,357 | |||||||||||||||||||
2015 | $ | 5,662 | |||||||||||||||||||
2016 | $ | 6,134 | |||||||||||||||||||
2017 | $ | 6,332 | |||||||||||||||||||
2018 | $ | 6,792 | |||||||||||||||||||
Years 2019 through 2023 | $ | 44,671 | |||||||||||||||||||
Benefit Obligations | |||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||
Weighted-Average Actuarial Assumptions | Weighted-average actuarial assumptions used to determine the benefit obligations for the plans for fiscal years 2013 and 2012 were as follows: | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Expected long-term return on plan assets | 5.1 | % | 4.2 | % | |||||||||||||||||
Rate of compensation increase | 3.9 | % | 3.3 | % | |||||||||||||||||
Discount rate | 4.1 | % | 3.2 | % | |||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||
Weighted-Average Actuarial Assumptions | Weighted-average actuarial assumptions used to determine net periodic benefit cost for the plans for fiscal years 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected long-term return on plan assets | 5.1 | % | 4.2 | % | 4.2 | % | |||||||||||||||
Rate of compensation increase | 3.9 | % | 3.3 | % | 4.2 | % | |||||||||||||||
Discount rate | 4.1 | % | 3.2 | % | 4.9 | % |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | The future minimum lease payments under non-cancelable operating leases at August 31, 2013 are as follows (in thousands): | ||||
Fiscal Year Ending August 31, | Amount | ||||
2014 | $ | 89,451 | |||
2015 | 65,433 | ||||
2016 | 52,089 | ||||
2017 | 43,074 | ||||
2018 | 35,499 | ||||
Thereafter | 122,606 | ||||
Total minimum lease payments | $ | 408,152 | |||
Rollforward of Warranty Liability | A rollforward of the warranty liability is as follows (in thousands): | ||||
Amount | |||||
Balance at August 31, 2010 | $ | 10,828 | |||
Accruals for warranties during the year | 6,909 | ||||
Warranty liabilities acquired | 3,986 | ||||
Settlements made during the year | (8,209 | ) | |||
Balance at August 31, 2011 | $ | 13,514 | |||
Accruals for warranties during the year | 3,285 | ||||
Warranty liabilities acquired | — | ||||
Settlements made during the year | (5,411 | ) | |||
Balance at August 31, 2012 | $ | 11,388 | |||
Accruals for warranties during the year | 6,419 | ||||
Warranty liabilities acquired | — | ||||
Settlements made during the year | (6,395 | ) | |||
Balance at August 31, 2013 | $ | 11,412 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||
Option Activity | The following table summarizes Options activity from September 1, 2012 through August 31, 2013: | ||||||||||||||||||||
Shares | Options | Aggregate | Weighted- | Weighted- | |||||||||||||||||
Available | Outstanding | Intrinsic Value | Average | Average | |||||||||||||||||
for Grant | (in thousands) | Exercise | Remaining | ||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Life (years) | |||||||||||||||||||||
Balance at September 1, 2012 | 4,883,919 | 8,677,941 | $ | 4,719 | $ | 25.88 | 2.9 | ||||||||||||||
Shares authorized | 9,500,000 | ||||||||||||||||||||
Options canceled | 520,731 | (520,731 | ) | $ | 25.95 | ||||||||||||||||
Options expired | — | — | — | ||||||||||||||||||
Restricted stock awards granted(1) | (2,893,577 | ) | — | ||||||||||||||||||
Options exercised | — | (300,083 | ) | $ | 14.3 | ||||||||||||||||
Balance at August 31, 2013 | 12,011,073 | 7,857,127 | $ | 1,927 | $ | 26.31 | 1.95 | ||||||||||||||
Exercisable at August 31, 2013 | 7,853,961 | $ | 1,915 | $ | 26.32 | 1.95 | |||||||||||||||
-1 | Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. | ||||||||||||||||||||
Restricted Stock Activity | The following table summarizes restricted stock activity from August 31, 2012 through August 31, 2013: | ||||||||||||||||||||
Shares | Weighted - | ||||||||||||||||||||
Average | |||||||||||||||||||||
Grant-Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Non-vested balance at August 31, 2012 | 12,945,864 | $ | 16.33 | ||||||||||||||||||
Changes during the period | |||||||||||||||||||||
Shares granted(1) | 3,686,694 | $ | 17.67 | ||||||||||||||||||
Shares vested | (4,504,249 | ) | $ | 15.16 | |||||||||||||||||
Shares forfeited | (793,117 | ) | $ | 17.36 | |||||||||||||||||
Non-vested balance at August 31, 2013 | 11,335,192 | $ | 17.15 | ||||||||||||||||||
(1) | For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest. | ||||||||||||||||||||
Weighted Average Assumptions used in Black-Scholes Option Pricing Model | The following weighted-average assumptions were used in the model for each respective period: | ||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected dividend yield | 0.8 | % | 0.7 | % | 0.9 | % | |||||||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | |||||||||||||||
Expected volatility | 34.7 | % | 48.4 | % | 47.3 | % | |||||||||||||||
Expected life | 0.5 years | 0.5 years | 0.5 years | ||||||||||||||||||
Cash Dividends Declared to Common Stockholders | The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders of the Company during fiscal years 2013 and 2012: | ||||||||||||||||||||
Dividend | Dividend | Total of Cash | Date of Record for | Dividend Cash | |||||||||||||||||
Declaration Date | per Share | Dividends | Dividend Payment | Payment Date | |||||||||||||||||
Declared | |||||||||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||||||
Fiscal year 2013: | October 16, 2012 | $ | 0.08 | $ | 16,962 | November 15, 2012 | December 3, 2012 | ||||||||||||||
23-Jan-13 | $ | 0.08 | $ | 16,990 | 15-Feb-13 | 1-Mar-13 | |||||||||||||||
15-Apr-13 | $ | 0.08 | $ | 16,994 | 15-May-13 | 3-Jun-13 | |||||||||||||||
18-Jul-13 | $ | 0.08 | $ | 17,005 | 15-Aug-13 | September 3, 2013 | |||||||||||||||
Fiscal year 2012: | 20-Oct-11 | $ | 0.08 | $ | 17,379 | 15-Nov-11 | 1-Dec-11 | ||||||||||||||
January 25, 2012 | $ | 0.08 | $ | 17,323 | 16-Feb-12 | 1-Mar-12 | |||||||||||||||
April 19, 2012 | $ | 0.08 | $ | 17,281 | 15-May-12 | 1-Jun-12 | |||||||||||||||
19-Jul-12 | $ | 0.08 | $ | 17,230 | 15-Aug-12 | 4-Sep-12 |
Concentration_of_Risk_and_Segm1
Concentration of Risk and Segment Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Sales to Customers Who Accounted for 10 Percent or More of Company's Net Revenues, Expressed as Percentage of Consolidated Net Revenue and Accounts Receivable for Each Customer | Sales to the following customers who accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for each customer, were as follows: | ||||||||||||||||||||
Percentage of | Percentage of Accounts Receivable | ||||||||||||||||||||
Net Revenue | August 31, | ||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||||||||
Apple, Inc. | 19 | % | 13 | % | * | 20 | % | 17 | % | ||||||||||||
BlackBerry Limited(1) | 12 | % | 10 | % | 15 | % | * | * | |||||||||||||
Cisco Systems, Inc. | * | 10 | % | 13 | % | * | * | ||||||||||||||
* | Amount was less than 10% of total | ||||||||||||||||||||
-1 | During the fourth quarter of fiscal year 2013, Research in Motion Limited changed its name to BlackBerry Limited. The Company is currently in ongoing discussions with BlackBerry Limited regarding the termination or substantial winding down of the business relationship. No reserve has currently been established regarding the termination or winding down of the customer relationship as a loss is not considered probable. The reduction in business could include restructuring and related expenses, which are still being determined and could have a material adverse effect on results of operations. | ||||||||||||||||||||
Operating Segment Information | The following table sets forth operating segment information (in thousands): | ||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Net revenue | |||||||||||||||||||||
DMS | $ | 8,182,104 | $ | 7,476,730 | $ | 6,018,332 | |||||||||||||||
E&I | 5,528,406 | 5,080,417 | 5,180,011 | ||||||||||||||||||
HVS | 4,626,384 | 4,594,794 | 5,320,484 | ||||||||||||||||||
$ | 18,336,894 | $ | 17,151,941 | $ | 16,518,827 | ||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Segment income and reconciliation of income before | |||||||||||||||||||||
income tax | |||||||||||||||||||||
DMS | $ | 440,743 | $ | 455,596 | $ | 389,188 | |||||||||||||||
E&I | 147,001 | 105,583 | 199,731 | ||||||||||||||||||
HVS | 133,318 | 175,000 | 126,275 | ||||||||||||||||||
Total segment income | $ | 721,062 | $ | 736,179 | $ | 715,194 | |||||||||||||||
Reconciling items: | |||||||||||||||||||||
Distressed customer charge | — | (16,014 | ) | — | |||||||||||||||||
Stock-based compensation expense and related charges | (68,383 | ) | (81,409 | ) | (76,230 | ) | |||||||||||||||
Amortization of intangibles | (16,154 | ) | (16,825 | ) | (22,051 | ) | |||||||||||||||
Restructuring and related charges | (89,453 | ) | — | (628 | ) | ||||||||||||||||
Impairment of notes receivable and related charges | (25,597 | ) | — | — | |||||||||||||||||
Acquisition costs and purchase accounting adjustments | (10,037 | ) | — | — | |||||||||||||||||
Settlement of receivables and related charges | — | — | (13,607 | ) | |||||||||||||||||
Loss on disposal of subsidiaries | — | — | (23,944 | ) | |||||||||||||||||
Other expense | (6,213 | ) | (8,943 | ) | (2,986 | ) | |||||||||||||||
Interest income | 1,901 | 2,041 | 3,132 | ||||||||||||||||||
Interest expense | (121,062 | ) | (106,129 | ) | (97,693 | ) | |||||||||||||||
Income before income tax | $ | 386,064 | $ | 508,900 | $ | 481,187 | |||||||||||||||
August 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Total assets | |||||||||||||||||||||
DMS | $ | 4,131,973 | $ | 3,002,982 | |||||||||||||||||
E&I | 1,110,458 | 1,157,464 | |||||||||||||||||||
HVS | 1,031,911 | 970,819 | |||||||||||||||||||
Other non-allocated assets | 2,879,439 | 2,671,876 | |||||||||||||||||||
$ | 9,153,781 | $ | 7,803,141 | ||||||||||||||||||
External Net Revenue, Net of Intercompany Eliminations, and Long-Lived Asset Information | The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in thousands): | ||||||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
External net revenue: | |||||||||||||||||||||
Mexico | $ | 4,105,274 | $ | 3,658,873 | $ | 3,876,239 | |||||||||||||||
Singapore | 3,297,523 | 2,030,492 | 938,381 | ||||||||||||||||||
China | 3,273,599 | 3,425,641 | 3,343,669 | ||||||||||||||||||
U.S. | 2,571,969 | 2,466,079 | 2,314,098 | ||||||||||||||||||
Hungary | 1,315,548 | 1,430,180 | 1,794,869 | ||||||||||||||||||
Malaysia | 1,243,808 | 1,148,899 | 1,167,594 | ||||||||||||||||||
Brazil | 547,690 | 661,676 | 710,863 | ||||||||||||||||||
Other | 1,981,483 | 2,330,101 | 2,373,114 | ||||||||||||||||||
$ | 18,336,894 | $ | 17,151,941 | $ | 16,518,827 | ||||||||||||||||
August 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Long-lived assets: | |||||||||||||||||||||
China | $ | 1,108,471 | $ | 718,970 | |||||||||||||||||
U.S. | 1,084,450 | 339,409 | |||||||||||||||||||
Mexico | 216,248 | 191,388 | |||||||||||||||||||
Taiwan | 122,904 | 110,610 | |||||||||||||||||||
Singapore | 101,946 | 121,291 | |||||||||||||||||||
Malaysia | 91,591 | 132,027 | |||||||||||||||||||
Hungary | 78,092 | 78,841 | |||||||||||||||||||
Poland | 78,045 | 83,978 | |||||||||||||||||||
Other | 254,286 | 216,712 | |||||||||||||||||||
$ | 3,136,033 | $ | 1,993,226 | ||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Fair Value of Assets and Liabilities Related to Foreign Forward Exchange Contracts Measured on Recurring Basis | The following table presents the Company’s assets and liabilities related to forward foreign exchange contracts measured at fair value on a recurring basis as of August 31, 2013, aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Forward foreign exchange contracts | $ | — | $ | 11,504 | $ | — | $ | 11,504 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Forward foreign exchange contracts | — | (9,509 | ) | — | (9,509 | ) | |||||||||||||||
Total | $ | — | $ | 1,995 | $ | — | $ | 1,995 | |||||||||||||
Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes | The following tables present the fair value of the Company’s derivative instruments located on the Consolidated Balance Sheets utilized for foreign currency risk management purposes at August 31, 2013 and 2012 (in thousands): | ||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||
At August 31, 2013 | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||||||||||
Location | Value | Location | Value | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 4,357 | Other accrued expense | $ | 4,550 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 7,147 | Other accrued expense | $ | 4,959 | |||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||
At August 31, 2012 | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||||||||||
Location | Value | Location | Value | ||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 1,335 | Other accrued expense | $ | 1,190 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Forward foreign exchange contracts | Prepaid expenses and other current assets | $ | 4,445 | Other accrued expense | $ | 2,976 | |||||||||||||||
Impact of Derivatives for Foreign Currency Risk and Not Designated as Hedging Instruments on Earnings | The following tables present the impact that changes in fair value of derivatives utilized for foreign currency risk management purposes and not designated as hedging instruments had on earnings during fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of Gain (Loss) Recognized in | Amount of Gain (Loss) Recognized in | |||||||||||||||||||
Income on Derivative | Income on Derivative for the Fiscal Year | ||||||||||||||||||||
ended August 31, 2013 | |||||||||||||||||||||
Forward foreign exchange contracts | Cost of revenue | $ | (4,620 | ) | |||||||||||||||||
Derivatives not designated as hedging instruments | Location of Gain (Loss) Recognized in | Amount of Gain (Loss) Recognized in | |||||||||||||||||||
Income on Derivative | Income on Derivative for the Fiscal Year | ||||||||||||||||||||
ended August 31, 2012 | |||||||||||||||||||||
Forward foreign exchange contracts | Cost of revenue | $ | 5,912 | ||||||||||||||||||
Changes Related to Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) Net of Tax | The changes related to cash flow hedges (both forward foreign exchange contracts and interest rate swaps) included in AOCI net of tax are as follows (in thousands): | ||||||||||||||||||||
Accumulated comprehensive loss August 31, 2011 | $ | (11,172 | ) | ||||||||||||||||||
Changes in fair value of derivative instruments | 2,637 | ||||||||||||||||||||
Reclassification of net losses realized and included in net income related to derivative instruments | 1,382 | ||||||||||||||||||||
Accumulated comprehensive loss, August 31, 2012 | $ | (7,153 | ) | ||||||||||||||||||
Changes in fair value of derivative instruments | (182 | ) | |||||||||||||||||||
Reclassification of net losses realized and included in net income related to derivative instruments | 2,285 | ||||||||||||||||||||
Accumulated comprehensive loss, August 31, 2013 | $ | (5,050 | ) | ||||||||||||||||||
Forward foreign exchange contracts | |||||||||||||||||||||
Impact of Derivatives for Foreign Currency Risk (Interest Rate Risk) and Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) and Earnings | The following tables present the impact that changes in fair value of derivatives utilized for foreign currency risk management purposes and designated as hedging instruments had on AOCI and earnings during fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
Derivatives in Cash | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain | Amount of Gain | ||||||||||||||||
Flow Hedging | (Loss) Recognized | Reclassified from | (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Relationship for | in OCI on | AOCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
the Fiscal Year | Derivative | into Income | AOCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
Ended August 31, | (Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | ||||||||||||||||
2013 | (Effective Portion) | from Effectiveness | from Effectiveness | ||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Forward foreign exchange contracts | $ | (2,392 | ) | Revenue | $ | (1,919 | ) | Revenue | $ | 225 | |||||||||||
Forward foreign exchange contracts | $ | 2,721 | Cost of | $ | 3,717 | Cost of | $ | 8,996 | |||||||||||||
revenue | revenue | ||||||||||||||||||||
Forward foreign exchange contracts | $ | (511 | ) | Selling, | $ | (133 | ) | Selling, | $ | 263 | |||||||||||
general and | general and | ||||||||||||||||||||
administrative | administrative | ||||||||||||||||||||
Derivatives in Cash | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain | Amount of Gain | ||||||||||||||||
Flow Hedging | (Loss) Recognized | Reclassified from | (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Relationship for the | in OCI on | AOCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
Fiscal Year Ended | Derivative | into Income | AOCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
August 31, 2012 | (Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | ||||||||||||||||
(Effective Portion) | from Effectiveness | from Effectiveness | |||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Forward foreign exchange contracts | $ | 2,858 | Revenue | $ | 2,642 | Revenue | $ | — | |||||||||||||
Forward foreign exchange contracts | $ | 1,644 | Cost of | $ | 2,717 | Cost of | $ | (1,345 | ) | ||||||||||||
revenue | revenue | ||||||||||||||||||||
Forward foreign exchange contracts | $ | (1,864 | ) | Selling, | $ | (2,790 | ) | Selling, | $ | 194 | |||||||||||
general and | general and | ||||||||||||||||||||
administrative | administrative | ||||||||||||||||||||
Interest rate swap | |||||||||||||||||||||
Impact of Derivatives for Foreign Currency Risk (Interest Rate Risk) and Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) and Earnings | The following tables present the impact that changes in the fair value of the derivative utilized for interest rate risk management and designated as a hedging instrument had on AOCI and earnings during fiscal years 2013 and 2012 (in thousands): | ||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain or | Amount of Gain or | ||||||||||||||||
Hedging Relationship for the | (Loss) Recognized | Reclassified from | or (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Fiscal Year Ended August 31, | in OCI on | Accumulated OCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
2013 | Derivative | into Income | Accumulated OCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
(Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | |||||||||||||||||
(Effective Portion) | from Effectiveness | from Effectiveness | |||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Interest rate swap | $ | — | Interest expense | $ | (3,950 | ) | Interest expense | $ | — | ||||||||||||
Derivatives in Cash Flow | Amount of Gain | Location of Gain (Loss) | Amount of Gain | Location of Gain or | Amount of Gain or | ||||||||||||||||
Hedging Relationship for the Fiscal | (Loss) Recognized | Reclassified from | or (Loss) | (Loss) Recognized in | (Loss) Recognized in | ||||||||||||||||
Year Ended August 31, | in OCI on | Accumulated OCI | Reclassified from | Income on Derivative | Income on Derivative | ||||||||||||||||
2012 | Derivative | into Income | Accumulated OCI | (Ineffective Portion | (Ineffective Portion | ||||||||||||||||
(Effective Portion) | (Effective Portion) | into Income | and Amount Excluded | and Amount Excluded | |||||||||||||||||
(Effective Portion) | from Effectiveness | from Effectiveness | |||||||||||||||||||
Testing) | Testing) | ||||||||||||||||||||
Interest rate swap | $ | — | Interest expense | $ | (3,950 | ) | Interest expense | $ | — |
Restructuring_and_Related_Char1
Restructuring and Related Charges (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Significant Components and Activity in Restructuring Plan | The table below sets forth the significant components and activity in the 2013 Restructuring Plan during the fiscal year ended August 31, 2013 (in thousands): | ||||||||||||||||||||
2013 Restructuring Plan – Fiscal Year Ended August 31, 2013 | |||||||||||||||||||||
Liability Balance at | Restructuring | Asset | Cash | Liability Balance at | |||||||||||||||||
1-Sep-12 | Related | Write off | Payments | 31-Aug-13 | |||||||||||||||||
Charges | Charge and | ||||||||||||||||||||
Other Non- | |||||||||||||||||||||
Cash | |||||||||||||||||||||
Activity | |||||||||||||||||||||
Employee severance and benefit costs | $ | — | $ | 80,331 | $ | (525 | ) | $ | (22,183 | ) | $ | 57,623 | |||||||||
Lease costs | — | 506 | — | (255 | ) | 251 | |||||||||||||||
Asset write off costs | — | 8,341 | (8,341 | ) | — | — | |||||||||||||||
Other related costs | — | 275 | — | (239 | ) | 36 | |||||||||||||||
Total | $ | — | $ | 89,453 | $ | (8,866 | ) | $ | (22,677 | ) | $ | 57,910 | |||||||||
Segment [Member] | |||||||||||||||||||||
Significant Components and Activity in Restructuring Plan | The table below sets forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the fiscal year ended August 31, 2013 (in thousands): | ||||||||||||||||||||
2013 Restructuring Plan – Fiscal Year Ended August 31, 2013 | |||||||||||||||||||||
Liability Balance at | Restructuring | Asset | Cash | Liability Balance at | |||||||||||||||||
1-Sep-12 | Related | Write off | Payments | 31-Aug-13 | |||||||||||||||||
Charges | Charge and | ||||||||||||||||||||
Other Non- | |||||||||||||||||||||
Cash | |||||||||||||||||||||
Activity | |||||||||||||||||||||
DMS | $ | — | $ | 21,502 | $ | (2,665 | ) | $ | (6,548 | ) | $ | 12,289 | |||||||||
E&I | — | 54,255 | (5,982 | ) | $ | (7,670 | ) | 40,603 | |||||||||||||
HVS | — | 10,647 | (219 | ) | (5,443 | ) | 4,985 | ||||||||||||||
Other | — | 3,049 | — | (3,016 | ) | 33 | |||||||||||||||
Total | $ | — | $ | 89,453 | $ | (8,866 | ) | $ | (22,677 | ) | $ | 57,910 | |||||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Business Combinations [Abstract] | |||||||||
Summary of Fair Value of Assets Acquired and Liabilities Assumed | The allocation of the purchase price is considered preliminary pending final valuation by the Company for property, plant and equipment, intangible assets, noncontrolling interests and tax adjustments. | ||||||||
Cash | $ | 77,384 | |||||||
Other current assets | 343,446 | ||||||||
Property, plant and equipment | 282,599 | ||||||||
Intangible assets | 196,800 | ||||||||
Goodwill | 335,871 | ||||||||
Other assets | 28,304 | ||||||||
Current liabilities | (322,397 | ) | |||||||
Long-term deferred tax liability | (153,030 | ) | |||||||
Other liabilities | (72,906 | ) | |||||||
Noncontrolling interests | (36,548 | ) | |||||||
Net assets acquired | $ | 679,523 | |||||||
Schedule of Proforma Business Acquisition | The following unaudited pro forma financial information for the fiscal years ended August 31, 2013 and 2012 represent the combined results of the Company’s operations as if the Nypro acquisition had occurred on September 1, 2011 (in thousands, except earnings per share). | ||||||||
Pro forma | |||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Net revenue | $ | 19,238,000 | $ | 18,275,067 | |||||
Net income | $ | 290,838 | $ | 473,791 | |||||
Earnings per share, basic | $ | 1.43 | $ | 2.3 | |||||
Earnings per share, diluted | $ | 1.4 | $ | 2.24 |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Maximum maturity days of highly liquid instruments | 90 days | ||
Cash equivalents outstanding | $6,500,000 | $374,300,000 | |
Allowance for doubtful accounts | 2,700,000 | 3,200,000 | |
Recognition of stock based compensation expense | 68,383,000 | 81,405,000 | 76,230,000 |
Stock based compensation expense, tax effect | -100,000 | 1,400,000 | 1,200,000 |
Recognition of stock based compensation expense | 4,400,000 | 4,400,000 | 3,800,000 |
Stock-based compensation expense classified as inventories | 300,000 | 300,000 | |
Cash received from exercise of share-based payment arrangements | 18,285,000 | 26,003,000 | 31,644,000 |
Treasury stock minimum tax withholding related to vesting of restricted stock | 20,290,000 | 31,205,000 | 9,763,000 |
Net tax benefit (loss) of actuarial included in accumulated other comprehensive income | 6,900,000 | 6,200,000 | |
Net tax benefit (loss) of prior service cost included in accumulated other comprehensive income | -300,000 | -32,000 | |
Unrecognized gains (losses) on derivative instruments net of tax benefits | $14,100,000 | $14,800,000 | |
Restricted Stock | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Restricted shares vested and resulted in withholding | 1,184,162 | 1,590,721 | 681,446 |
Stock Option | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Common shares excluded from computation of diluted earnings per share | 3,664,364 | 3,748,037 | 0 |
Stock Appreciation Rights (SARs) | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Common shares excluded from computation of diluted earnings per share | 4,485,266 | 4,930,935 | 0 |
Estimated_Useful_Lives_for_Maj
Estimated Useful Lives for Major Classes of Depreciable Assets (Detail) | 12 Months Ended |
Aug. 31, 2013 | |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 35 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Shorter of lease term or useful life of the improvement |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 10 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 5 years |
Furniture, fixtures and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 5 years |
Computer Hardware and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 7 years |
Computer Hardware and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 3 years |
Transportation Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life, years | 3 years |
Calculations_of_Basic_and_Dilu
Calculations of Basic and Diluted Earnings Per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Accounting Policies [Abstract] | |||
Net income attributable to Jabil Circuit, Inc. | $371,482 | $394,687 | $381,063 |
Weighted-average common shares outstanding | 203,096 | 206,160 | 212,386 |
Share-based payment awards classified as participating securities | 2,116 | ||
Denominator for basic earnings per share | 203,096 | 206,160 | 214,502 |
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights | 33 | 315 | 872 |
Dilutive unvested restricted stock awards | 4,686 | 4,706 | 5,345 |
Denominator for diluted earnings per share | 207,815 | 211,181 | 220,719 |
Basic | $1.83 | $1.91 | $1.78 |
Diluted | $1.79 | $1.87 | $1.73 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
In Thousands, unless otherwise specified | |||
Accounting Policies [Abstract] | |||
Foreign currency translation adjustment | $125,594 | $149,116 | |
Unrecognized losses on derivative instruments, net of tax | -5,050 | -7,153 | -11,172 |
Actuarial loss, net of tax | -40,258 | -35,783 | |
Prior service cost, net of tax | 962 | 95 | |
Accumulated other comprehensive income | $81,248 | $106,275 |
Trade_Accounts_Receivable_Secu1
Trade Accounts Receivable Securitization and Sale Programs - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Interest expense | $121,062,000 | $106,129,000 | $97,693,000 |
Trade Accounts Receivable Factoring Agreement | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sale agreement expiration date | 30-Sep-13 | ||
Trade accounts receivable sold | 31,200,000 | 76,000,000 | 68,500,000 |
Proceeds from new transfers | 31,200,000 | 76,000,000 | 68,400,000 |
Trade Accounts Receivable Sale Programs | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sold | 2,400,000,000 | 2,100,000,000 | 2,400,000,000 |
Proceeds from new transfers | 2,400,000,000 | 2,100,000,000 | 2,400,000,000 |
Asset-Backed Securitization Programs | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Percentage of trade accounts receivable sold to conduits by special purpose entities | 100.00% | ||
Trade accounts receivable sold | 9,000,000,000 | 8,400,000,000 | 6,700,000,000 |
Cash proceeds for sale of trade accounts receivable | 8,500,000,000 | 8,000,000,000 | 6,300,000,000 |
Proceeds from new transfers | 54,200,000 | 0 | 14,100,000 |
Deferred purchases price receivable | 541,200,000 | 477,500,000 | 439,100,000 |
Interest expense | 1,400,000 | ||
Pretax losses on sale of trade accounts receivable | 4,300,000 | 5,600,000 | 3,400,000 |
North American Asset-Backed Securitization Program | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sale agreement expiration date | 21-Oct-14 | ||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 300,000,000 | ||
Foreign Asset-Backed Securitization Program | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sale agreement expiration date | 15-May-15 | ||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 200,000,000 | ||
200.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sale agreement expiration date | 30-Nov-13 | ||
200.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | After amendment | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 200,000,000 | ||
200.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | Before amendment | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 250,000,000 | ||
150.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sale agreement expiration date | 28-Nov-13 | ||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 150,000,000 | ||
40.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sale agreement expiration date | 1-Jun-15 | ||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | $40,000,000 | ||
Minimum number of days notice required to cancel receivable sale agreements | 30 days |
Inventories_Detail
Inventories (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $1,412,948 | $1,534,182 |
Work in process | 548,096 | 444,721 |
Finished goods | 341,111 | 290,046 |
Inventories | $2,302,155 | $2,268,949 |
Income_Loss_Before_income_taxe
Income (Loss) Before income taxes and Noncontroling Interests (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
U.S. | ($117,312) | ($147,567) | ($112,705) |
Non-U.S. | 503,376 | 656,467 | 593,892 |
Income before income tax | $386,064 | $508,900 | $481,187 |
Income_Tax_Expense_Benefit_Det
Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
Current U.S. - Federal income taxes | $4,762 | $2,240 | ($8,937) |
Current U.S. - State income taxes | 567 | 279 | 1,103 |
Current Non-U.S. income taxes | 136,602 | 125,646 | 102,826 |
Total current income taxes | 141,931 | 128,165 | 94,992 |
Deferred U.S. - Federal income taxes | -108,779 | 2,172 | 4,123 |
Deferred U.S. - State income taxes | 3,391 | 462 | 97 |
Deferred Non-U.S. income taxes | -20,570 | -17,988 | -983 |
Total deferred income taxes | -125,958 | -15,354 | 3,237 |
Total U.S - Federal income taxes | -104,017 | 4,412 | -4,814 |
Total U.S - State income taxes | 3,958 | 741 | 1,200 |
Total Non-U.S income taxes | 116,032 | 107,658 | 101,843 |
Total income tax expense | $15,973 | $112,811 | $98,229 |
Reconciliations_of_Income_Tax_
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. federal statutory income tax rate (35%) | $135,122 | $178,115 | $168,416 |
State income taxes, net of federal tax benefit | -6,285 | -4,013 | -2,688 |
Impact of foreign tax rates | -141,443 | -116,198 | -94,392 |
Permanent impact of non-deductible cost | 13,212 | 2,147 | 4,639 |
Income tax credits | -8,643 | -13,125 | -38,707 |
Changes in tax rates on deferred tax assets and liabilities | 7,416 | -9,048 | 10,147 |
Valuation allowance | -47,294 | 57,743 | 17,277 |
Non-deductible equity compensation | 21,410 | 6,655 | 7,581 |
Impact of intercompany charges | 30,106 | 1,742 | 12,658 |
Other, net | 12,372 | 8,793 | 13,298 |
Total income tax expense | $15,973 | $112,811 | $98,229 |
Reconciliations_of_Income_Tax_1
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Income Tax Disclosure [Abstract] | |||
Percentage of statutory income tax rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Income Taxes [Line Items] | |||
Partial release of U.S. valuation allowance | $104,000,000 | ||
Income tax benefit on income from subsidiaries | 52,400,000 | 42,100,000 | 59,000,000 |
Per basic share income tax benefit on income from subsidiaries | $0.26 | $0.20 | $0.28 |
Material tax incentive expiration year | 2020 | ||
U.S. tax credits, amount remaining | 8,100,000 | ||
Foreign investment tax credit | 11,500,000 | ||
Foreign investment tax credit, expiration year | 2017 | ||
Net change in the total valuation allowance | -169,100,000 | 18,700,000 | |
Deferred tax liability | 80,000,000 | ||
Undistributed earnings of foreign subsidiaries | 2,000,000,000 | ||
Unrecognized deferred tax liability on these undistributed earnings description | Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. | ||
Accrued interest and penalties related to unrecognized tax benefits included in income tax provision | 18,100,000 | 9,200,000 | |
Recognized (derecognized) tax benefit, accrued interest and penalties | 8,900,000 | -14,500,000 | 5,200,000 |
Nypro Inc. | |||
Income Taxes [Line Items] | |||
Anticipated repatriation | 240,000,000 | ||
U.S. | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | 424,100,000 | ||
Tax credit carry forwards | 7,400,000 | ||
U.S. | 2023 | |||
Income Taxes [Line Items] | |||
Tax credit carry forwards | 19,500,000 | ||
Tax credit carry forwards, expiration year | 2023 | ||
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | 36,800,000 | ||
Tax credit carry forwards | 27,600,000 | ||
Tax credit carry forwards, expiration year | 2026 | ||
Non U.S. | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | 532,300,000 | ||
Maximum | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards, expiration year | 2033 | ||
Minimum | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards, expiration year | 2014 | ||
Cash payments | |||
Income Taxes [Line Items] | |||
Possible adjustments for transfer pricing, tax holidays, and certain inclusions in taxable income | 8,100,000 | ||
Audits Settlement or Expiration of Applicable Statutes of Limitations | |||
Income Taxes [Line Items] | |||
Possible adjustments for transfer pricing, tax holidays, and certain inclusions in taxable income | $7,300,000 |
Current_and_Noncurrent_Net_Def
Current and Noncurrent Net Deferred Tax Assets (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $46,260 | $27,833 |
Current deferred tax liabilities | -6,253 | -3,955 |
Noncurrent deferred tax assets | 94,069 | 73,411 |
Noncurrent deferred tax liabilities | -73,173 | -24,245 |
Net deferred tax assets | $60,903 | $73,044 |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carry forward | $293,008 | $280,196 |
Receivables | 3,638 | 3,275 |
Inventories | 11,730 | 10,909 |
Compensated absences | 9,699 | 7,957 |
Accrued expenses | 54,217 | 49,318 |
Property, plant and equipment, principally due to differences in depreciation and amortization | 4,606 | 12,644 |
U.S. federal and state tax credits | 32,402 | 18,708 |
Foreign jurisdiction tax credits | 18,617 | 13,587 |
Cash flow hedges | 7,455 | 8,616 |
Intangible assets | 69,885 | |
Capital loss carryforward | 8,643 | 8,845 |
Other | 21,759 | 12,362 |
Total deferred tax assets before valuation allowances | 535,425 | 570,909 |
Less valuation allowances | -318,611 | -487,745 |
Net deferred tax assets | 216,814 | 83,164 |
Deferred tax liabilities: | ||
Unremitted earnings of non-U.S. subsidiaries | 80,000 | |
Intangible assets | 63,277 | |
Other | 12,634 | 10,120 |
Total deferred tax liabilities | 155,911 | 10,120 |
Net deferred tax assets | 60,903 | 73,044 |
U.S. | ||
Deferred tax assets: | ||
Equity compensation | 60,765 | 65,800 |
Non U.S. | ||
Deferred tax assets: | ||
Equity compensation | $8,886 | $8,807 |
Reconciliations_of_Unrecognize
Reconciliations of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $116,661 | $84,942 | $78,140 |
Additions for tax positions of prior years | 83,115 | 48,986 | 2,979 |
Reductions for tax positions of prior years | -7,713 | -10,446 | -12,631 |
Additions for tax positions related to current year | 30,886 | 12,316 | 18,431 |
Additions for tax positions related to acquired entities | 21,000 | 3,275 | 3,648 |
Cash settlements | -1,177 | -7,880 | -1,667 |
Reductions from lapses in statutes of limitations | -784 | -2,521 | -2,840 |
Reductions from settlements with taxing authorities | -20,166 | -9,680 | -5,349 |
Foreign exchange rate adjustment | 406 | -2,331 | 4,231 |
Ending balance | 222,228 | 116,661 | 84,942 |
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $75,714 | $68,924 | $68,859 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ||
Land and improvements | $113,534 | $104,235 |
Buildings | 710,643 | 613,843 |
Leasehold improvements | 369,792 | 235,902 |
Machinery and equipment | 2,222,257 | 1,787,071 |
Furniture, fixtures and office equipment | 131,703 | 109,767 |
Computer hardware and software | 491,211 | 442,220 |
Transportation equipment | 21,650 | 20,648 |
Construction in progress | 145,544 | 43,735 |
Property plant and equipment, gross | 4,206,334 | 3,357,421 |
Less accumulated depreciation and amortization | 1,810,736 | 1,578,266 |
Property plant and equipment, net | $2,395,598 | $1,779,155 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $402 | $336.70 | $297.10 |
Maintenance and repair expense | $162.40 | $123.10 | $113.90 |
Changes_in_Goodwill_Allocated_
Changes in Goodwill Allocated to Reportable Segments (Detail) (USD $) | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
DMS | DMS | E&I | E&I | HVS | HVS | HVS | |||
Goodwill [Line Items] | |||||||||
Gross, Beginning balance | $1,117,839 | $1,059,020 | $643,748 | $584,018 | $341,822 | $342,733 | $132,269 | $132,269 | $132,269 |
Accumulated Impairment, Beginning balance | -1,022,821 | -1,022,821 | -558,768 | -558,768 | -331,784 | -331,784 | -132,269 | -132,269 | -132,269 |
Acquisitions & Adjustments | 341,593 | 60,942 | 341,593 | 60,942 | |||||
Foreign Currency Impact | -406 | -2,123 | -715 | -1,212 | 309 | -911 | |||
Gross, Ending balance | 1,459,026 | 1,117,839 | 984,626 | 643,748 | 342,131 | 341,822 | 132,269 | 132,269 | 132,269 |
Accumulated Impairment, Ending balance | -1,022,821 | -1,022,821 | -558,768 | -558,768 | -331,784 | -331,784 | -132,269 | -132,269 | -132,269 |
Net Balance | $436,205 | $95,018 | $425,858 | $84,980 | $10,347 | $10,038 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Weighted-average amortization period for aggregate net intangible assets | 10 years 10 months 24 days | ||
Goodwill acquired | $341,593,000 | $60,942,000 | |
Amortization of intangible | 16,154,000 | 16,825,000 | 22,051,000 |
Contractual agreements and customer relationships | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Weighted-average amortization period for aggregate net intangible assets | 12 years 1 month 6 days | ||
Contractual agreements and customer relationships | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Life of intangible assets | 15 years | ||
Intellectual property | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Weighted-average amortization period for aggregate net intangible assets | 7 years 3 months 18 days | ||
Intellectual property | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Life of intangible assets | 9 years | ||
Finite lived trade name | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Weighted-average amortization period for aggregate net intangible assets | 2 years | ||
Finite lived trade name | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Life of intangible assets | 2 years | ||
Nypro Inc. | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Acquired intangible assets | 196,800,000 | ||
Goodwill acquired | 335,871,000 | ||
Nypro Inc. | Indefinite lived trade name | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Acquired intangible assets | 71,600,000 | ||
Nypro Inc. | Intellectual property | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Acquired intangible assets | 52,700,000 | ||
Nypro Inc. | Intellectual property | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Life of intangible assets | 8 years | ||
Nypro Inc. | Customer Relationships | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Acquired intangible assets | $72,500,000 | ||
Nypro Inc. | Customer Relationships | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Life of intangible assets | 14 years |
Total_Purchased_Intangible_Ass
Total Purchased Intangible Assets (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $461,890 | $260,625 |
Accumulated Amortization | -157,660 | -141,572 |
Net Carrying Amount | 304,230 | 119,053 |
Indefinite lived trade name | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 122,190 | 50,590 |
Net Carrying Amount | 122,190 | 50,590 |
Contractual agreements and customer relationships | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 199,665 | 122,679 |
Accumulated Amortization | -76,341 | -63,772 |
Net Carrying Amount | 123,324 | 58,907 |
Intellectual property | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 137,388 | 84,688 |
Accumulated Amortization | -78,997 | -76,799 |
Net Carrying Amount | 58,391 | 7,889 |
Finite lived trade name | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 2,647 | 2,668 |
Accumulated Amortization | -2,322 | -1,001 |
Net Carrying Amount | $325 | $1,667 |
Estimated_Future_Amortization_
Estimated Future Amortization Expense (Detail) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2014 | $24,883 |
2015 | 21,740 |
2016 | 18,491 |
2017 | 16,986 |
2018 | 16,986 |
Thereafter | 82,954 |
Total | $182,040 |
Notes_Payable_LongTerm_Debt_an2
Notes Payable, Long-Term Debt and Capital Lease Obligations Outstanding (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Borrowings under credit facilities | $200,000 | [1] | $8,000 | [1] |
Borrowings under loans | 58,447 | [2] | 55,870 | [2] |
Capital lease obligations | 35,468 | [3] | 166 | [3] |
Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes | 6,823 | [4] | 9,197 | [4] |
Total notes payable, long-term debt and capital lease obligations | 1,905,962 | 1,676,357 | ||
Less current installments of notes payable, long-term debt and capital lease obligations | 215,536 | 18,031 | ||
Notes payable, long-term debt and capital lease obligations, less current installments | 1,690,426 | 1,658,326 | ||
7.750% Senior Notes Due 2016 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 306,940 | [5] | 305,221 | [5] |
8.250% Senior Notes Due 2018 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 398,284 | [6] | 397,903 | [6] |
5.625% Senior Notes Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 400,000 | [7] | 400,000 | [7] |
4.700% Senior Notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $500,000 | [8] | $500,000 | [8] |
[1] | As of August 31, 2013, six of the Company's foreign subsidiaries have credit facilities that finance their future growth and any corresponding working capital needs. Four of the credit facilities are denominated in U.S. dollars, one is denominated in Brazilian reais, and one is denominated in Taiwan dollar. The credit facilities incur interest at fixed and variable rates ranging from 1.8% to 10.0%. During the third quarter of fiscal year 2012, the Company entered into the Amended and Restated Credit Facility which provides for a revolving credit facility in the initial amount of $1.3 billion. The Amended and Restated Credit Facility may, subject to lenders' discretion, potentially be increased up to $1.6 billion and expires on March 19, 2017. Interest and fees on the Amended and Restated Credit Facility advances are based on the Company's non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor's Rating Service and Moody's Investor Service. Interest is charged at a rate equal to either 0.175% to 0.850% above the base rate or 1.175% to 1.850% above the Eurocurrency rate, where the base rate represents the greatest of Citibank, N.A.'s prime rate, 0.50% above the federal funds rate, or 1.0% above one-month LIBOR, and the Eurocurrency rate represents adjusted LIBOR for the applicable interest period, each as more fully described in the Amended and Restated Credit Facility agreement. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. The Company, along with its subsidiaries, are subject to the following financial covenants: (1) a maximum ratio of (a) Debt (as defined in the Amended and Restated Credit Facility agreement) to (b) Consolidated EBITDA (as defined in the Amended and Restated Credit Facility agreement) and (2) a minimum ratio of (a) Consolidated EBITDA to (b) interest payable on, and amortization of debt discount in respect of, all Debt and loss on sale of accounts receivables. In addition, the Company is subject to other covenants, such as: limitation upon liens; limitation upon mergers, etc.; limitation upon accounting changes; limitation upon subsidiary debt; limitation upon sales, etc. of assets; limitation upon changes in nature of business; payment restrictions affecting subsidiaries; compliance with laws, etc.; payment of taxes, etc.; maintenance of insurance; preservation of corporate existence, etc.; visitation rights; keeping of books; maintenance of properties, etc.; transactions with affiliates; and reporting requirements. During fiscal year 2013, the Company borrowed $5.4 billion against the Amended and Restated Credit Facility under multiple draws and repaid $5.2 billion under multiple payments. In addition, during the fourth quarter of fiscal year 2013, the Company borrowed $2.5 billion against the Amended and Restated Credit Facility under multiple draws and repaid $2.3 billion under multiple payments. | |||
[2] | During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the "VIE") whereby it sells to and subsequently leases back from the VIE up to $60.0 million in certain machinery and equipment for a period of up to five years. In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consolidates the financial statements of the VIE and eliminates all intercompany transactions. At August 31, 2013, the VIE had approximately $46.6 million of total assets, of which approximately $45.4 million was comprised of a note receivable due from the Company, and approximately $46.0 million of total liabilities, of which approximately $45.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $45.9 million of the $60.0 million debt obligation capacity). The third-party creditors have recourse to the Company's general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used only to settle the obligations of the VIE. In addition to the loans described above, at August 31, 2013, the Company has borrowings outstanding to fund working capital needs. These additional loans total approximately $12.1 million, of which $11.9 million are denominated in Euros and $0.2 million are denominated in U.S. dollars. | |||
[3] | During the fourth quarter of fiscal year 2013, the Company acquired various capital lease obligations in connection with the acquisition of Nypro. | |||
[4] | This amount represents the fair value hedge accounting adjustment related to the 7.750% Senior Notes. For further discussion of the Company's fair value hedges, see Note 12 - "Derivative Financial Instruments and Hedging Activities" to the Consolidated Financial Statements | |||
[5] | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the "7.750% Senior Notes") at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a "change of control repurchase event." | |||
[6] | During the second and third quarters of fiscal year 2008, the Company issued $250.0 million and $150.0 million, respectively, of ten-year, unregistered 8.250% notes at 99.965% of par and 97.5% of par, respectively, resulting in net proceeds of approximately $245.7 million and $148.5 million, respectively. On July 18, 2008, 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 mature on March 15, 2018 and pay interest semiannually on March 15 and September 15. The interest rate payable on the 8.250% Senior Notes is subject to adjustment from time to time if the credit ratings assigned to the 8.250% Senior Notes increase or decrease, as provided in the 8.250% Senior Notes. The 8.250% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 8.250% Senior Notes upon a "change of control repurchase event." | |||
[7] | During the first quarter of fiscal year 2011, the Company issued $400.0 million of ten-year publicly registered 5.625% notes (the "5.625% Senior Notes") at par. The net proceeds from the offering of $400.0 million were used to fully repay the term portion of the credit facility dated as of July 19, 2007 (the "Old Credit Facility") and partially repay amounts outstanding under the Company's foreign asset-backed securitization program. The 5.625% Senior Notes mature on December 15, 2020 and pay interest semiannually on June 15 and December 15 of each year, beginning on June 15, 2011. The 5.625% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 5.625% Senior Notes upon a "change of control repurchase event." | |||
[8] | During the fourth quarter of fiscal year 2012, the Company issued $500.0 million of ten-year publicly registered 4.700% notes (the "4.700% Senior Notes") at 99.992% of par. The net proceeds from the offering of $500.0 million were used to repay outstanding borrowings under the revolving amended and restated senior unsecured five-year revolving credit facility entered into on March 19, 2012 ("the Amended and Restated Credit Facility") and for general corporate purposes. The 4.700% Senior Notes mature on September 15, 2022 and pay interest semiannually on March 15 and September 15 of each year, beginning on March 15, 2013. The 4.700% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 4.700% Senior Notes upon a "change of control repurchase event." |
Notes_Payable_LongTerm_Debt_an3
Notes Payable, Long-Term Debt and Capital Lease Obligations Outstanding (Parenthetical) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||
Aug. 31, 2013 | Aug. 31, 2012 | 31-May-12 | 31-May-12 | Aug. 31, 2009 | Aug. 31, 2013 | Aug. 31, 2012 | Feb. 28, 2011 | 31-May-08 | Feb. 29, 2008 | Aug. 31, 2007 | Aug. 31, 2013 | Aug. 31, 2012 | Nov. 30, 2010 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | 31-May-12 | 31-May-12 | 31-May-12 | Aug. 31, 2013 | |||||||||||
Subsidiary | Maximum | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 5.625% Senior Notes Due 2020 | 5.625% Senior Notes Due 2020 | 5.625% Senior Notes Due 2020 | 4.700% Senior Notes due 2022 | 4.700% Senior Notes due 2022 | Foreign subsidiaries credit facilities | Foreign subsidiaries credit facilities | United States of America, Dollars | Brazil, Brazil Real | Taiwan, New Dollars | Euro Member Countries, Euro | Amended and Restated Credit Facility | Amended and Restated Credit Facility | Amended and Restated Credit Facility | Amended and Restated Credit Facility | Variable Interest Entity | |||||||||||||
Minimum | Maximum | Subsidiary | Subsidiary | Subsidiary | Minimum | Maximum | |||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||
Senior Notes, stated interest rate | 7.75% | 7.75% | [1] | 7.75% | [1] | 7.75% | 8.25% | 8.25% | 8.25% | 8.25% | [2] | 8.25% | [2] | 5.63% | 5.63% | [3] | 5.63% | [3] | 4.70% | [4] | 4.70% | [4] | |||||||||||||||||
Senior Notes, face amount | $312,000,000 | $312,000,000 | $150,000,000 | $250,000,000 | $400,000,000 | $400,000,000 | $400,000,000 | $500,000,000 | $500,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, maturity date | 15-Jul-16 | 15-Mar-18 | 15-Mar-18 | 15-Mar-18 | 15-Dec-20 | 15-Sep-22 | 19-Mar-17 | ||||||||||||||||||||||||||||||||
Senior Notes, percent of face value | 96.10% | 97.50% | 99.97% | 99.99% | |||||||||||||||||||||||||||||||||||
Net proceeds in issuance of notes | 300,000,000 | 148,500,000 | 245,700,000 | 400,000,000 | 500,000,000 | ||||||||||||||||||||||||||||||||||
Interest rate for foreign subsidiaries credit facilities | 1.80% | 10.00% | |||||||||||||||||||||||||||||||||||||
Number of foreign subsidiaries with credit facilities | 6 | 4 | 1 | 1 | |||||||||||||||||||||||||||||||||||
Line of credit revolving facility initiation amount | 1,300,000,000 | ||||||||||||||||||||||||||||||||||||||
Revolving credit facility potential increase | 1,600,000,000 | ||||||||||||||||||||||||||||||||||||||
Line of credit facility interest rate above one month LIBOR rate | 1.00% | ||||||||||||||||||||||||||||||||||||||
Line of credit facility interest rate above federal funds rate | 0.50% | ||||||||||||||||||||||||||||||||||||||
Line of credit facility interest rate above Eurocurrency rate | 1.18% | 1.85% | |||||||||||||||||||||||||||||||||||||
Percentage added to base rate | 0.18% | 0.85% | |||||||||||||||||||||||||||||||||||||
Line of credit facility amount borrowed | 5,400,000,000 | 2,500,000,000 | |||||||||||||||||||||||||||||||||||||
Line of credit facility amount repaid | 5,200,000,000 | 2,300,000,000 | |||||||||||||||||||||||||||||||||||||
VIE credit capacity | 60,000,000 | ||||||||||||||||||||||||||||||||||||||
Lease agreement period | 5 years | ||||||||||||||||||||||||||||||||||||||
Total assets | 9,153,781,000 | 7,803,141,000 | 46,600,000 | ||||||||||||||||||||||||||||||||||||
Notes receivable | 45,400,000 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,798,214,000 | 5,695,806,000 | 46,000,000 | ||||||||||||||||||||||||||||||||||||
Debt obligation utilized | 58,447,000 | [5] | 55,870,000 | [5] | 45,900,000 | ||||||||||||||||||||||||||||||||||
Short term loan | $12,100,000 | $200,000 | $11,900,000 | ||||||||||||||||||||||||||||||||||||
[1] | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the "7.750% Senior Notes") at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a "change of control repurchase event." | ||||||||||||||||||||||||||||||||||||||
[2] | During the second and third quarters of fiscal year 2008, the Company issued $250.0 million and $150.0 million, respectively, of ten-year, unregistered 8.250% notes at 99.965% of par and 97.5% of par, respectively, resulting in net proceeds of approximately $245.7 million and $148.5 million, respectively. On July 18, 2008, 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 mature on March 15, 2018 and pay interest semiannually on March 15 and September 15. The interest rate payable on the 8.250% Senior Notes is subject to adjustment from time to time if the credit ratings assigned to the 8.250% Senior Notes increase or decrease, as provided in the 8.250% Senior Notes. The 8.250% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 8.250% Senior Notes upon a "change of control repurchase event." | ||||||||||||||||||||||||||||||||||||||
[3] | During the first quarter of fiscal year 2011, the Company issued $400.0 million of ten-year publicly registered 5.625% notes (the "5.625% Senior Notes") at par. The net proceeds from the offering of $400.0 million were used to fully repay the term portion of the credit facility dated as of July 19, 2007 (the "Old Credit Facility") and partially repay amounts outstanding under the Company's foreign asset-backed securitization program. The 5.625% Senior Notes mature on December 15, 2020 and pay interest semiannually on June 15 and December 15 of each year, beginning on June 15, 2011. The 5.625% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 5.625% Senior Notes upon a "change of control repurchase event." | ||||||||||||||||||||||||||||||||||||||
[4] | During the fourth quarter of fiscal year 2012, the Company issued $500.0 million of ten-year publicly registered 4.700% notes (the "4.700% Senior Notes") at 99.992% of par. The net proceeds from the offering of $500.0 million were used to repay outstanding borrowings under the revolving amended and restated senior unsecured five-year revolving credit facility entered into on March 19, 2012 ("the Amended and Restated Credit Facility") and for general corporate purposes. The 4.700% Senior Notes mature on September 15, 2022 and pay interest semiannually on March 15 and September 15 of each year, beginning on March 15, 2013. The 4.700% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 4.700% Senior Notes upon a "change of control repurchase event." | ||||||||||||||||||||||||||||||||||||||
[5] | During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the "VIE") whereby it sells to and subsequently leases back from the VIE up to $60.0 million in certain machinery and equipment for a period of up to five years. In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consolidates the financial statements of the VIE and eliminates all intercompany transactions. At August 31, 2013, the VIE had approximately $46.6 million of total assets, of which approximately $45.4 million was comprised of a note receivable due from the Company, and approximately $46.0 million of total liabilities, of which approximately $45.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $45.9 million of the $60.0 million debt obligation capacity). The third-party creditors have recourse to the Company's general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used only to settle the obligations of the VIE. In addition to the loans described above, at August 31, 2013, the Company has borrowings outstanding to fund working capital needs. These additional loans total approximately $12.1 million, of which $11.9 million are denominated in Euros and $0.2 million are denominated in U.S. dollars. |
Notes_Payable_LongTerm_Debt_an4
Notes Payable, Long-Term Debt and Capital Lease Obligations - Additional Information (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Feb. 28, 2011 | Aug. 31, 2009 | Aug. 31, 2013 | Aug. 31, 2012 | 31-May-08 | Feb. 29, 2008 | Aug. 31, 2007 | Aug. 31, 2013 | Aug. 31, 2012 | Nov. 30, 2010 | Aug. 31, 2013 | Aug. 31, 2012 | ||||||||
In Millions, unless otherwise specified | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 5.625% Senior Notes Due 2020 | 5.625% Senior Notes Due 2020 | 5.625% Senior Notes Due 2020 | 4.700% Senior Notes due 2022 | 4.700% Senior Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Senior unsecured notes | $312 | $312 | $400 | $150 | $250 | $400 | $400 | $500 | $500 | |||||||||||||
Senior unsecured notes, interest rate | 7.75% | [1] | 7.75% | [1] | 7.75% | 7.75% | 8.25% | [2] | 8.25% | [2] | 8.25% | 8.25% | 8.25% | 5.63% | [3] | 5.63% | [3] | 5.63% | 4.70% | [4] | 4.70% | [4] |
Estimated fair value of senior notes | $357.20 | $476 | $414.10 | $491.80 | ||||||||||||||||||
[1] | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the "7.750% Senior Notes") at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a "change of control repurchase event." | |||||||||||||||||||||
[2] | During the second and third quarters of fiscal year 2008, the Company issued $250.0 million and $150.0 million, respectively, of ten-year, unregistered 8.250% notes at 99.965% of par and 97.5% of par, respectively, resulting in net proceeds of approximately $245.7 million and $148.5 million, respectively. On July 18, 2008, 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 mature on March 15, 2018 and pay interest semiannually on March 15 and September 15. The interest rate payable on the 8.250% Senior Notes is subject to adjustment from time to time if the credit ratings assigned to the 8.250% Senior Notes increase or decrease, as provided in the 8.250% Senior Notes. The 8.250% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 8.250% Senior Notes upon a "change of control repurchase event." | |||||||||||||||||||||
[3] | During the first quarter of fiscal year 2011, the Company issued $400.0 million of ten-year publicly registered 5.625% notes (the "5.625% Senior Notes") at par. The net proceeds from the offering of $400.0 million were used to fully repay the term portion of the credit facility dated as of July 19, 2007 (the "Old Credit Facility") and partially repay amounts outstanding under the Company's foreign asset-backed securitization program. The 5.625% Senior Notes mature on December 15, 2020 and pay interest semiannually on June 15 and December 15 of each year, beginning on June 15, 2011. The 5.625% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 5.625% Senior Notes upon a "change of control repurchase event." | |||||||||||||||||||||
[4] | During the fourth quarter of fiscal year 2012, the Company issued $500.0 million of ten-year publicly registered 4.700% notes (the "4.700% Senior Notes") at 99.992% of par. The net proceeds from the offering of $500.0 million were used to repay outstanding borrowings under the revolving amended and restated senior unsecured five-year revolving credit facility entered into on March 19, 2012 ("the Amended and Restated Credit Facility") and for general corporate purposes. The 4.700% Senior Notes mature on September 15, 2022 and pay interest semiannually on March 15 and September 15 of each year, beginning on March 15, 2013. The 4.700% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 4.700% Senior Notes upon a "change of control repurchase event." |
Debt_Maturities_Detail
Debt Maturities (Detail) (USD $) | Aug. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2014 | $215,536 | |
2015 | 11,915 | |
2016 | 318,850 | |
2017 | 21,141 | |
2018 | 400,877 | |
Thereafter | 930,820 | |
Total | $1,899,139 | [1] |
[1] | The above table excludes a $6.8 million fair value adjustment related to the interest rate swap on the 7.750% Senior Notes. |
Debt_Maturities_Parenthetical_
Debt Maturities (Parenthetical) (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Feb. 28, 2011 | Aug. 31, 2009 | ||
In Thousands, unless otherwise specified | ||||||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||||||
Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes | 6,823 | [1] | 9,197 | [1] | ||
7.750% Senior Notes Due 2016 | ||||||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||||||
Senior Notes, stated interest rate | 7.75% | [2] | 7.75% | [2] | 7.75% | 7.75% |
[1] | This amount represents the fair value hedge accounting adjustment related to the 7.750% Senior Notes. For further discussion of the Company's fair value hedges, see Note 12 - "Derivative Financial Instruments and Hedging Activities" to the Consolidated Financial Statements | |||||
[2] | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the "7.750% Senior Notes") at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a "change of control repurchase event." |
Reconciliation_of_Change_in_Be
Reconciliation of Change in Benefit Obligations for Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | |||
Beginning projected benefit obligation | $190,320 | $137,874 | |
Service cost | 1,759 | 1,224 | 1,494 |
Interest cost | 7,202 | 7,494 | 5,715 |
Actuarial loss | 8,167 | 26,748 | |
Curtailment gain | -87 | ||
Total benefits paid | -5,196 | -6,264 | |
Plan participants' contributions | 12 | 213 | |
Amendments | -1,730 | ||
Acquisitions | 28,122 | ||
Effect of conversion to U.S. dollars | -7,939 | -5,091 | |
Ending projected benefit obligation | $192,508 | $190,320 | $137,874 |
WeightedAverage_Actuarial_Assu
Weighted-Average Actuarial Assumptions used to Determine Benefit Obligations (Detail) | Aug. 31, 2013 | Aug. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ||
Expected long-term return on plan assets | 5.10% | 4.20% |
Rate of compensation increase | 3.90% | 3.30% |
Discount rate | 4.10% | 3.20% |
Postretirement_and_Other_Emplo2
Postretirement and Other Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Accumulated benefit obligation for the plans | $179,920,000 | $177,056,000 | |
Profit Sharing, 401(k) Plan and Defined Contribution Plans | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contributions | 31,800,000 | 29,200,000 | 23,100,000 |
Minimum | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contribution to funded pension plans during fiscal year 2014 | 4,300,000 | ||
Maximum | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contribution to funded pension plans during fiscal year 2014 | $4,700,000 | ||
Equity Securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Target allocation percentage | 35.00% | ||
Debt Securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Target allocation percentage | 65.00% |
Fair_Value_of_Plan_Assets_Held
Fair Value of Plan Assets Held by Asset Category (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | ||
In Thousands, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $142,054 | $133,430 | $99,237 | ||
Fair value of plan assets allocation | 100.00% | 100.00% | |||
Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4,686 | 4,370 | |||
Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 122,108 | 114,742 | |||
Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 15,260 | 14,318 | |||
Cash and Cash Equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4,686 | 4,370 | |||
Fair value of plan assets allocation | 3.00% | 3.00% | |||
Cash and Cash Equivalents | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4,686 | 4,370 | |||
Equity Securities | Global Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 26,110 | [1] | 22,649 | [1] | |
Fair value of plan assets allocation | 18.00% | [1] | 17.00% | [1] | |
Equity Securities | U.K. Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 20,923 | [2] | 18,544 | [2] | |
Fair value of plan assets allocation | 15.00% | [2] | 14.00% | [2] | |
Equity Securities | Canadian Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 8,935 | [3] | 8,247 | [3] | |
Fair value of plan assets allocation | 6.00% | [3] | 6.00% | [3] | |
Equity Securities | Level 2 | Global Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 26,110 | [1] | 22,649 | [1] | |
Equity Securities | Level 2 | U.K. Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 20,923 | [2] | 18,544 | [2] | |
Equity Securities | Level 2 | Canadian Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 8,935 | [3] | 8,247 | [3] | |
Debt Securities | U.K. Corporate Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 43,949 | [4] | 42,983 | [4] | |
Fair value of plan assets allocation | 31.00% | [4] | 32.00% | [4] | |
Debt Securities | U.K. Government Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 14,257 | [5] | 13,562 | [5] | |
Fair value of plan assets allocation | 10.00% | [5] | 10.00% | [5] | |
Debt Securities | Canadian Government Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7,934 | [6] | 8,757 | [6] | |
Fair value of plan assets allocation | 6.00% | [6] | 7.00% | [6] | |
Debt Securities | Level 2 | U.K. Corporate Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 43,949 | [4] | 42,983 | [4] | |
Debt Securities | Level 2 | U.K. Government Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 14,257 | [5] | 13,562 | [5] | |
Debt Securities | Level 2 | Canadian Government Bonds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7,934 | [6] | 8,757 | [6] | |
Insurance Contracts | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 12,114 | [7] | 11,046 | [7] | |
Fair value of plan assets allocation | 9.00% | [7] | 8.00% | [7] | |
Insurance Contracts | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 12,114 | [7] | 11,046 | [7] | |
Commercial Real Estate | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,956 | [8] | 1,987 | [8] | |
Fair value of plan assets allocation | 1.00% | [8] | 2.00% | [8] | |
Commercial Real Estate | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,956 | [8] | 1,987 | [8] | |
Commercial Mortgages | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,190 | [9] | 1,285 | [9] | |
Fair value of plan assets allocation | 1.00% | [9] | 1.00% | [9] | |
Commercial Mortgages | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $1,190 | [9] | $1,285 | [9] | |
[1] | (a) Global equity securities are categorized as Level 2 and include investments that aim to capture global equity market returns by tracking the Financial Times (London) Stock Exchange ("FTSE") AW-World (ex-UK) Index and other similar indexes in Canada. | ||||
[2] | (b) 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 portfolio tracks the FTSE All-Share Index and invests only in U.K. securities. | ||||
[3] | (c) Canadian equity securities are categorized as Level 2 and include investments in diversified portfolios that aim to capture the returns of Canadian small capitalization and dividend paying equities. The portfolios track the BMO Small Cap Index and the S&P/TSX Capped Equity Index and invest only in Canadian securities. | ||||
[4] | (d) U.K. corporate bonds are categorized as Level 2 and include U.K. corporate issued fixed income investments which are managed and tracked to the respective benchmark (AAA-AA-A Bonds-Over 15Y Index). | ||||
[5] | (e) 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). | ||||
[6] | (f) Canadian government bonds are categorized as Level 2 and include Canadian government-issued fixed income investments which are managed and tracked to the respective benchmark (DEX Universe Bond Index). | ||||
[7] | (g) 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. Insurance contract assets are recorded at fair value, which is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. | ||||
[8] | (h) Commercial real estate investments are categorized as Level 3 and primarily consist of commercial properties located throughout the various provinces of Canada. The portfolio tracks the IPD Canadian Property Index and invests only in Canadian properties. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by obtaining quarterly independent market appraisals. The unobservable inputs consist of estimated unrealized gains and losses due to changes in real estate market conditions, which have an immaterial impact on the fair value calculations of the real estate investments held. | ||||
[9] | (i) Commercial mortgage investments are categorized as Level 3 and primarily consist of mortgages on commercial properties located throughout the various provinces of Canada. The portfolio tracks the DEX Conventional Residential Mortgage Index and invests only in Canadian mortgages. These investments are recorded at their estimated fair value and are valued using unobservable inputs (Level 3 inputs), primarily by calculating expected future cash flows at interest rates applicable to new mortgages of similar types and terms. The unobservable inputs consist of estimated unrealized gains and losses due to defaults and other real estate market events and estimated interest rates, which both have an immaterial impact on the fair value calculations of the mortgage investments held. |
Reconciliation_of_Changes_in_P
Reconciliation of Changes in Pension Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ||
Beginning fair value of plan assets | $133,430 | $99,237 |
Actual return on plan assets | 11,440 | 13,980 |
Acquisitions | 22,772 | |
Employer contributions | 4,478 | 4,546 |
Benefits paid from plan assets | -4,843 | -4,718 |
Plan participants' contributions | 12 | 213 |
Effect of conversion to U.S. dollars | -2,463 | -2,600 |
Ending fair value of plan assets | $142,054 | $133,430 |
Reconciliation_of_Funded_Statu
Reconciliation of Funded Status of Plans to Consolidated Balance Sheets (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
In Thousands, unless otherwise specified | |||
Funded Status | |||
Ending fair value of plan assets | $142,054 | $133,430 | $99,237 |
Ending projected benefit obligation | -192,508 | -190,320 | -137,874 |
Under or unfunded status | -50,454 | -56,890 | |
Consolidated Balance Sheet Information | |||
Accrued benefit liability, current | -117 | -126 | |
Accrued benefit liability, noncurrent | -50,337 | -56,764 | |
Net liability recorded at August 31 | -50,454 | -56,890 | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net actuarial loss | 47,125 | 41,977 | |
Prior service cost | -1,698 | -127 | |
Accumulated other comprehensive loss, before taxes | $45,427 | $41,850 |
Estimated_Amount_that_will_be_
Estimated Amount that will be Amortized from Accumulated Other Comprehensive Loss into Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2013 |
Compensation And Retirement Disclosure [Abstract] | |
Recognized net actuarial loss | $2,542 |
Amortization of prior service cost | -239 |
Total | $2,303 |
Information_for_Plans_with_Acc
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compensation And Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $192,508 | $190,320 |
Accumulated benefit obligation | 179,920 | 177,056 |
Fair value of plan assets | $142,054 | $133,430 |
Information_about_Net_Periodic
Information about Net Periodic Benefit Cost for Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | |||
Service cost | $1,759 | $1,224 | $1,494 |
Interest cost | 7,202 | 7,494 | 5,715 |
Expected long-term return on plan assets | -6,952 | -6,104 | -4,474 |
Recognized actuarial loss | 2,474 | 1,207 | 2,073 |
Net curtailment gain | -3,401 | -1,903 | |
Amortization of prior service cost | -184 | -26 | -27 |
Net periodic benefit cost | $898 | $3,795 | $2,878 |
WeightedAverage_Actuarial_Assu1
Weighted-Average Actuarial Assumptions used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Compensation And Retirement Disclosure [Abstract] | |||
Expected long-term return on plan assets | 5.10% | 4.20% | 4.20% |
Rate of compensation increase | 3.90% | 3.30% | 4.20% |
Discount rate | 4.10% | 3.20% | 4.90% |
Estimated_Future_Benefit_Payme
Estimated Future Benefit Payments (Detail) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Compensation And Retirement Disclosure [Abstract] | |
2014 | $5,357 |
2015 | 5,662 |
2016 | 6,134 |
2017 | 6,332 |
2018 | 6,792 |
Years 2019 through 2023 | $44,671 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | |
2014 | $89,451 |
2015 | 65,433 |
2016 | 52,089 |
2017 | 43,074 |
2018 | 35,499 |
Thereafter | 122,606 |
Total minimum lease payments | $408,152 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Commitments and Contingencies Disclosure [Line Items] | ||||
Total operating lease expenses | $80.90 | $65.30 | $61.70 | |
Amount received from settlement with former customer | 0.5 | |||
Reduction to cost of sales | 0.5 | |||
CleanTech Customer Commercial Dispute | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding Accounts Receivable | $10.10 | $10.10 |
Rollforward_of_Warranty_Liabil
Rollforward of Warranty Liability (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Commitments And Contingencies Disclosure [Abstract] | |||
Beginning balance | $11,388 | $13,514 | $10,828 |
Accruals for warranties during the year | 6,419 | 3,285 | 6,909 |
Warranty liabilities acquired | 3,986 | ||
Settlements made during the year | -6,395 | -5,411 | -8,209 |
Ending balance | $11,412 | $11,388 | $13,514 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Feb. 28, 2011 | Feb. 28, 2011 |
Stock Option [Member] | Stock Option [Member] | Stock Option [Member] | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Restricted Stock | Performance-based restricted stock units | Performance-based restricted stock units | Performance-based restricted stock units | Performance-based restricted stock units | Time-based restricted stock units | Performance-based restricted stock units | Plan 2011 | Plan 2011 | ||
Maximum | Maximum | Maximum | Minimum | Employee Stock Purchase Plan | ||||||||||||
Possibility One | Possibility Two | |||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Maximum aggregate number of shares subject to awards | 9,500,000 | 8,850,000 | 6,000,000 | |||||||||||||
Total intrinsic value of options exercised | $1.20 | $8 | $7.50 | |||||||||||||
Unrecognized compensation related to share-based compensation costs | 0 | 55.7 | ||||||||||||||
Total fair value of options vested | $0.10 | $1.30 | $7.50 | |||||||||||||
Award vesting percentage | 100.00% | 150.00% | ||||||||||||||
Award vesting period | 5 years | 3 years | 3 years | |||||||||||||
Company awarded restricted stock units | 2,000,000 | 1,700,000 | ||||||||||||||
Performance goal full achievement | 100.00% | |||||||||||||||
Unrecognized compensation related to share-based compensation costs, weighted average period of recognition | 1 year 6 months | |||||||||||||||
Term of stock option plan and eligibility period for participating in ESPP, days | 90 days | |||||||||||||||
Maximum percentage of an employees salary that can be used to purchase shares under the ESPP | 10.00% | |||||||||||||||
Percentage for fair market value fixed for pricing | 85.00% | |||||||||||||||
Shares issued under ESPP | 8,273,921 | 902,691 | 754,598 | 824,913 |
Option_Activity_Detail
Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares Available for Grant, Beginning Balance | 4,883,919 | ||
Shares Available for Grant, Shares authorized | 9,500,000 | ||
Shares Available for Grant, Options canceled | 520,731 | ||
Shares Available for Grant, Restricted stock awards | -2,893,577 | [1] | |
Shares Available for Grant, Ending Balance | 12,011,073 | 4,883,919 | |
Options Outstanding, beginning balance | 8,677,941 | ||
Options Outstanding, options canceled | -520,731 | ||
Options Outstanding, options exercised | -300,083 | ||
Options Outstanding, ending balance | 7,857,127 | 8,677,941 | |
Options Outstanding, exercisable ending balance | 7,853,961 | ||
Aggregate Intrinsic Value, beginning balance | $4,719 | ||
Aggregate Intrinsic Value, ending balance | 1,927 | 4,719 | |
Aggregate Intrinsic Value, Exercisable ending balance | $1,915 | ||
Weighted-Average Exercise Price, beginning balance | $25.88 | ||
Weighted-Average Exercise Price, options canceled | $25.95 | ||
Weighted-Average Exercise Price, options exercised | $14.30 | ||
Weighted-Average Exercise Price, ending balance | $26.31 | $25.88 | |
Weighted-Average Exercise Price, exercisable ending balance | $26.32 | ||
Weighted-Average Remaining Contractual Life | 1 year 11 months 12 days | 2 years 10 months 24 days | |
Weighted-Average Remaining Contractual Life, Exercisable ending balance | 1 year 11 months 12 days | ||
[1] | Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | ||
Number of non-vested shares | ||
Shares, non-vested beginning balance | 12,945,864 | |
Changes during the period | ||
Shares granted | 3,686,694 | [1] |
Shares vested | -4,504,249 | |
Shares forfeited | -793,117 | |
Shares, non-vested ending balance | 11,335,192 | |
Weighted-Average Grant-Date Fair Value | ||
Weighted-Average Grant-Date Fair Value, beginning balance | $16.33 | |
Changes during the period | ||
Weighted-Average Grant-Date Fair Value, Shares granted | $17.67 | [1] |
Weighted-Average Grant-Date Fair Value, Shares vested | $15.16 | |
Weighted-Average Grant-Date Fair Value, Shares forfeited | $17.36 | |
Weighted-Average Grant-Date Fair Value, ending balance | $17.15 | |
[1] | For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest. |
Weighted_Average_Assumptions_u
Weighted Average Assumptions used in Black-Scholes Option Pricing Model (Detail) (Employee Stock Purchase Plan) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Employee Stock Purchase Plan | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Expected dividend yield | 0.80% | 0.70% | 0.90% |
Risk-free interest rate | 0.10% | 0.10% | 0.20% |
Expected volatility | 34.70% | 48.40% | 47.30% |
Expected life | 6 months | 6 months | 6 months |
Cash_Dividends_Declared_to_Com
Cash Dividends Declared to Common Stockholders (Detail) (USD $) | 12 Months Ended | |||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 |
16-Oct-12 | 23-Jan-13 | 15-Apr-13 | 18-Jul-13 | 20-Oct-11 | 25-Jan-12 | 19-Apr-12 | 19-Jul-12 | |
Dividends [Line Items] | ||||||||
Dividend Declaration Date | 16-Oct-12 | 23-Jan-13 | 15-Apr-13 | 18-Jul-13 | 20-Oct-11 | 25-Jan-12 | 19-Apr-12 | 19-Jul-12 |
Dividend per Share | $0.08 | $0.08 | $0.08 | $0.08 | $0.08 | $0.08 | $0.08 | $0.08 |
Total of Cash Dividends Declared | $16,962 | $16,990 | $16,994 | $17,005 | $17,379 | $17,323 | $17,281 | $17,230 |
Date of Record for Dividend Payment | 15-Nov-12 | 15-Feb-13 | 15-May-13 | 15-Aug-13 | 15-Nov-11 | 16-Feb-12 | 15-May-12 | 15-Aug-12 |
Dividend Cash Payment Date | 3-Dec-12 | 1-Mar-13 | 3-Jun-13 | 3-Sep-13 | 1-Dec-11 | 1-Mar-12 | 1-Jun-12 | 4-Sep-12 |
Concentration_of_Risk_and_Segm2
Concentration of Risk and Segment Data - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Billions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Segment Reporting Information [Line Items] | |||
Top customers that comprise revenue | 5 | ||
Percentage of revenue accounted by major customers | 53.00% | ||
Number of customers accounted for 90% of its net revenue | 58 | ||
Percentage of revenue accounted for by customers | 90.00% | ||
Sales concentration floor percentage | 10.00% | ||
Number of operating segments | 3 | ||
Number of operating countries | 31 | ||
Non U.S. | |||
Segment Reporting Information [Line Items] | |||
Total foreign revenue | $15.80 | $14.70 | $14.20 |
Total long-lived assets in foreign countries | $2.10 | $1.70 |
Sales_to_Customers_Who_Account
Sales to Customers Who Accounted for 10 Percent or More of Company's Net Revenues, Expressed as Percentage of Consolidated Net Revenue and Accounts Receivable for Each Customer (Detail) | 12 Months Ended | |||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | ||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | 10.00% | |||||
Net Revenue | Apple, Inc. | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | 19.00% | 13.00% | [1] | |||
Net Revenue | BlackBerry Limited | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | 12.00% | [2] | 10.00% | [2] | 15.00% | [2] |
Net Revenue | Cisco Systems, Inc | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | [1] | 10.00% | 13.00% | |||
Accounts Receivable | Apple, Inc. | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | 20.00% | 17.00% | ||||
Accounts Receivable | BlackBerry Limited | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | [1],[2] | [1],[2] | ||||
Accounts Receivable | Cisco Systems, Inc | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration of risk percentage | [1] | [1] | ||||
[1] | Amount was less than 10% of total | |||||
[2] | During the fourth quarter of fiscal year 2013, Research in Motion Limited changed its name to BlackBerry Limited. The Company is currently in ongoing discussions with BlackBerry Limited regarding the termination or substantial winding down of the business relationship. No reserve has currently been established regarding the termination or winding down of the customer relationship as a loss is not considered probable. The reduction in business could include restructuring and related expenses, which are still being determined and could have a material adverse effect on results of operations. |
Sales_to_Customers_Who_Account1
Sales to Customers Who Accounted for 10 Percent or More of Company's Net Revenues, Expressed as Percentage of Consolidated Net Revenue and Accounts Receivable for Each Customer (Parenthetical) (Detail) (BlackBerry termination [Member], USD $) | Aug. 31, 2013 |
BlackBerry termination [Member] | |
Revenue, Major Customer [Line Items] | |
Reserve for loss contingency | $0 |
Operating_Segment_Information_
Operating Segment Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Segment Reporting Information [Line Items] | |||
Net revenue | $18,336,894 | $17,151,941 | $16,518,827 |
Total segment income | 721,062 | 736,179 | 715,194 |
Distressed customer charges | -16,014 | ||
Stock-based compensation expense and related charges | -68,383 | -81,409 | -76,230 |
Amortization of intangibles | -16,154 | -16,825 | -22,051 |
Restructuring and related charges | -89,453 | -628 | |
Impairment of notes receivable and related charges | -25,597 | ||
Acquisition costs and purchase accounting adjustments | -10,037 | ||
Settlement of receivables and related charges | -13,607 | ||
Loss on disposal of subsidiaries | -23,944 | ||
Other expense | -6,213 | -8,943 | -2,986 |
Interest income | 1,901 | 2,041 | 3,132 |
Interest expense | -121,062 | -106,129 | -97,693 |
Income before income tax | 386,064 | 508,900 | 481,187 |
Total assets | 9,153,781 | 7,803,141 | |
DMS | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 8,182,104 | 7,476,730 | 6,018,332 |
Total segment income | 440,743 | 455,596 | 389,188 |
Total assets | 4,131,973 | 3,002,982 | |
E&I | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 5,528,406 | 5,080,417 | 5,180,011 |
Total segment income | 147,001 | 105,583 | 199,731 |
Total assets | 1,110,458 | 1,157,464 | |
HVS | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 4,626,384 | 4,594,794 | 5,320,484 |
Total segment income | 133,318 | 175,000 | 126,275 |
Total assets | 1,031,911 | 970,819 | |
Other non-allocated assets | |||
Segment Reporting Information [Line Items] | |||
Total assets | $2,879,439 | $2,671,876 |
Net_Revenue_Net_of_Intercompan
Net Revenue, Net of Intercompany Eliminations, and Long-Lived Asset Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | $18,336,894 | $17,151,941 | $16,518,827 |
Long-lived assets | 3,136,033 | 1,993,226 | |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 4,105,274 | 3,658,873 | 3,876,239 |
Long-lived assets | 216,248 | 191,388 | |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 3,297,523 | 2,030,492 | 938,381 |
Long-lived assets | 101,946 | 121,291 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 3,273,599 | 3,425,641 | 3,343,669 |
Long-lived assets | 1,108,471 | 718,970 | |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 2,571,969 | 2,466,079 | 2,314,098 |
Long-lived assets | 1,084,450 | 339,409 | |
Hungary | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 1,315,548 | 1,430,180 | 1,794,869 |
Long-lived assets | 78,092 | 78,841 | |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 1,243,808 | 1,148,899 | 1,167,594 |
Long-lived assets | 91,591 | 132,027 | |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 547,690 | 661,676 | 710,863 |
Other Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 1,981,483 | 2,330,101 | 2,373,114 |
Long-lived assets | 254,286 | 216,712 | |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 122,904 | 110,610 | |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $78,045 | $83,978 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||
Aug. 31, 2007 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2007 | Feb. 28, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2009 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Feb. 28, 2011 | 31-May-08 | Feb. 29, 2008 | Aug. 31, 2007 | Aug. 31, 2013 | Aug. 31, 2012 | |||||||
Interest rate swap | Interest rate swap | Forward contracts | Forward contracts | Forward contracts | Forward contracts | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 7.750% Senior Notes Due 2016 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | 8.250% Senior Notes Due 2018 | ||||||||||
Cash Flow Hedging | Fair value hedging | Forward foreign exchange contracts | Forward foreign exchange contracts | Forward foreign exchange contracts | Forward foreign exchange contracts | ||||||||||||||||||||
Cash Flow Hedging | Cash Flow Hedging | ||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||
Aggregate notional amount outstanding | $400,000,000 | $200,000,000 | $1,300,000,000 | $837,300,000 | $591,700,000 | $199,700,000 | |||||||||||||||||||
Amount estimated to reclassify into earnings during the next 12 months related to foreign currency risk management hedging arrangements | 1,100,000 | ||||||||||||||||||||||||
Senior unsecured notes, interest rate | 7.75% | 7.75% | [1] | 7.75% | [1] | 7.75% | 8.25% | 8.25% | 8.25% | 8.25% | [2] | 8.25% | [2] | ||||||||||||
Fair value of interest rate swap including accrued interest on interest rate swap | 12,200,000 | ||||||||||||||||||||||||
Accrued interest on interest rate swaps | 600,000 | ||||||||||||||||||||||||
Amortization of interest rate swaps | 2,400,000 | ||||||||||||||||||||||||
Hedge accounting adjustment related to terminated interest rate swaps | 6,823,000 | [3] | 9,197,000 | [3] | |||||||||||||||||||||
Payment to settle interest rate swaps | 43,100,000 | ||||||||||||||||||||||||
Expiry date | 15-Jul-16 | 15-Mar-18 | 15-Mar-18 | 15-Mar-18 | |||||||||||||||||||||
Amount estimated to reclassify into earnings during the next 12 months related to interest rate risk management hedging arrangements | $4,000,000 | ||||||||||||||||||||||||
[1] | During the fourth quarter of fiscal year 2009, the Company issued $312.0 million of seven-year, publicly-registered 7.750% notes (the "7.750% Senior Notes") at 96.1% of par, resulting in net proceeds of approximately $300.0 million. The 7.750% Senior Notes mature on July 15, 2016 and pay interest semiannually on January 15 and July 15. The 7.750% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 7.750% Senior Notes upon a "change of control repurchase event." | ||||||||||||||||||||||||
[2] | During the second and third quarters of fiscal year 2008, the Company issued $250.0 million and $150.0 million, respectively, of ten-year, unregistered 8.250% notes at 99.965% of par and 97.5% of par, respectively, resulting in net proceeds of approximately $245.7 million and $148.5 million, respectively. On July 18, 2008, 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 mature on March 15, 2018 and pay interest semiannually on March 15 and September 15. The interest rate payable on the 8.250% Senior Notes is subject to adjustment from time to time if the credit ratings assigned to the 8.250% Senior Notes increase or decrease, as provided in the 8.250% Senior Notes. The 8.250% Senior Notes are the Company's senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. The Company is subject to covenants such as limitations on its and/or its subsidiaries' ability to: consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's assets to, another person; create certain liens; enter into sale and leaseback transactions; create, incur, issue, assume or guarantee any funded debt (which only applies to the Company's "restricted subsidiaries"); and guarantee any of the Company's indebtedness (which only applies to the Company's subsidiaries). The Company is also subject to a covenant requiring its repurchase of the 8.250% Senior Notes upon a "change of control repurchase event." | ||||||||||||||||||||||||
[3] | This amount represents the fair value hedge accounting adjustment related to the 7.750% Senior Notes. For further discussion of the Company's fair value hedges, see Note 12 - "Derivative Financial Instruments and Hedging Activities" to the Consolidated Financial Statements |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities Related to Foreign Forward Exchange Contracts Measured on Recurring Basis (Detail) (USD $) | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |
Assets: | |
Forward foreign exchange contracts, Assets | $11,504 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | -9,509 |
Fair value of assets and liabilities, Total | 1,995 |
Level 2 | |
Assets: | |
Forward foreign exchange contracts, Assets | 11,504 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | -9,509 |
Fair value of assets and liabilities, Total | $1,995 |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments Located on Condensed Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes (Detail) (Forward foreign exchange contracts, USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instruments | Other accrued expense | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | $4,550 | $1,190 |
Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | 4,357 | 1,335 |
Not Designated as Hedging Instrument | Other accrued expense | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | 4,959 | 2,976 |
Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | $7,147 | $4,445 |
Impact_of_Derivatives_for_Fore
Impact of Derivatives for Foreign Currency Risk (Interest Rate Risk) and Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) and Earnings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Forward foreign exchange contracts | Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | ($2,392) | $2,858 |
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -1,919 | 2,642 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 225 | |
Forward foreign exchange contracts | Cost of revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 2,721 | 1,644 |
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 3,717 | 2,717 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 8,996 | -1,345 |
Forward foreign exchange contracts | Selling, general and administrative | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -511 | -1,864 |
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -133 | -2,790 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 263 | 194 |
Interest rate swap | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | ($3,950) | ($3,950) |
Impact_of_Derivatives_for_Fore1
Impact of Derivatives for Foreign Currency Risk and Not Designated as Hedging Instruments on Earnings (Detail) (Forward foreign exchange contracts, Cost of revenue, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Forward foreign exchange contracts | Cost of revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative | ($4,620) | $5,912 |
Changes_Related_to_Cash_Flow_H
Changes Related to Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) Net of Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Accumulated comprehensive loss, beginning balance | ($7,153) | ($11,172) | |
Changes in fair value of derivative instruments | -182 | 2,637 | 4,260 |
Reclassification of net losses realized and included in net income related to derivative instruments | 2,285 | 1,382 | 654 |
Accumulated comprehensive loss, ending balance | ($5,050) | ($7,153) | ($11,172) |
Restructuring_and_Related_Char2
Restructuring and Related Charges - Additional Information (Detail) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2011 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | $89,453,000 | $628,000 |
2013 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 89,453,000 | |
Cash cost payment related to restructuring activities | -22,677,000 | |
Asset Write off Charge and Other Non-Cash Activity | 8,866,000 | |
Total pre-tax restructuring and other related costs expected to be recognized | 188,000,000 | |
2013 Restructuring Plan | Restructuring Charges Cash | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 81,200,000 | |
2013 Restructuring Plan | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Total pre-tax restructuring and other related costs expected to be recognized | 160,000,000 | |
2013 Restructuring Plan | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Total pre-tax restructuring and other related costs expected to be recognized | 140,000,000 | |
2013 Restructuring Plan | Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 80,331,000 | |
Cash cost payment related to restructuring activities | -22,183,000 | |
Asset Write off Charge and Other Non-Cash Activity | 525,000 | |
2013 Restructuring Plan | Employee Severance | Restructuring Charges Cash | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 80,331,000 | |
2013 Restructuring Plan | Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 275,000 | |
Cash cost payment related to restructuring activities | -239,000 | |
2013 Restructuring Plan | Other Restructuring | Restructuring Charges Cash | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 275,000 | |
2013 Restructuring Plan | Lease Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 506,000 | |
Cash cost payment related to restructuring activities | -255,000 | |
2013 Restructuring Plan | Lease Costs | Restructuring Charges Cash | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 506,000 | |
2013 Restructuring Plan | Restructuring Charges Noncash | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset Write off Charge and Other Non-Cash Activity | 8,300,000 | |
2013 Restructuring Plan | Asset Write Off Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 8,341,000 | |
Asset Write off Charge and Other Non-Cash Activity | $8,341,000 |
Significant_Components_and_Act
Significant Components and Activity in Restructuring Plan (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Related Charges | $89,453 | $628 |
2013 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability, Beginning Balance | 0 | |
Restructuring Related Charges | 89,453 | |
Asset Write off Charge and Other Non- Cash Activity | -8,866 | |
Cash Payments | -22,677 | |
Liability, Ending Balance | 57,910 | |
2013 Restructuring Plan | Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability, Beginning Balance | 0 | |
Restructuring Related Charges | 80,331 | |
Asset Write off Charge and Other Non- Cash Activity | -525 | |
Cash Payments | -22,183 | |
Liability, Ending Balance | 57,623 | |
2013 Restructuring Plan | Lease Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability, Beginning Balance | 0 | |
Restructuring Related Charges | 506 | |
Cash Payments | -255 | |
Liability, Ending Balance | 251 | |
2013 Restructuring Plan | Asset Write Off Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability, Beginning Balance | 0 | |
Restructuring Related Charges | 8,341 | |
Asset Write off Charge and Other Non- Cash Activity | -8,341 | |
2013 Restructuring Plan | Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability, Beginning Balance | 0 | |
Restructuring Related Charges | 275 | |
Cash Payments | -239 | |
Liability, Ending Balance | $36 |
Significant_Components_and_Act1
Significant Components and Activity in Restructuring Plan by Reportable Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Related Charges | $89,453 | $628 |
2013 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability, Beginning Balance | 0 | |
Restructuring Related Charges | 89,453 | |
Asset Write off Charge and Other Non- Cash Activity | -8,866 | |
Cash Payments | -22,677 | |
Liability, Ending Balance | 57,910 | |
2013 Restructuring Plan | DMS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Related Charges | 21,502 | |
Asset Write off Charge and Other Non- Cash Activity | -2,665 | |
Cash Payments | -6,548 | |
Liability, Ending Balance | 12,289 | |
2013 Restructuring Plan | E&I | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Related Charges | 54,255 | |
Asset Write off Charge and Other Non- Cash Activity | -5,982 | |
Cash Payments | -7,670 | |
Liability, Ending Balance | 40,603 | |
2013 Restructuring Plan | HVS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Related Charges | 10,647 | |
Asset Write off Charge and Other Non- Cash Activity | -219 | |
Cash Payments | -5,443 | |
Liability, Ending Balance | 4,985 | |
2013 Restructuring Plan | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Related Charges | 3,049 | |
Asset Write off Charge and Other Non- Cash Activity | 0 | |
Cash Payments | -3,016 | |
Liability, Ending Balance | $33 |
Impairment_of_Notes_Receivable1
Impairment of Notes Receivable and Related Charges - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 31, 2013 |
Notes Receivable Net [Abstract] | |
Loss on notes receivable and related charges | $25,597 |
Loss_on_Disposal_of_Subsidiari1
Loss on Disposal of Subsidiaries - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2010 | Aug. 31, 2011 | Aug. 31, 2010 | Feb. 28, 2011 | Aug. 31, 2010 | Aug. 31, 2010 | |
Maximum | French and Italian Subsidiaries | French and Italian Subsidiaries | French and Italian Subsidiaries | |||
Location | Location | |||||
Employee | Employee | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Divested operations, number of sites | 4 | 4 | ||||
Divested operations, employees | 1,500 | 1,500 | ||||
Net revenues of subsidiary | $298,600,000 | |||||
Operating loss | 39,600,000 | |||||
Aggregate working capital loan to disposed operations | 25,000,000 | |||||
Aggregate potential reimbursement in restructuring costs | 10,000,000 | |||||
Basis points | 0.05 | |||||
Repayment period, months | 44 months | |||||
Additional charges | 28,500,000 | |||||
Loss on disposition of subsidiaries | 23,944,000 | 18,500,000 | 8,900,000 | |||
Transaction-related costs during disposition | 1,700,000 | |||||
Working capital loan record charge | 6,500,000 | |||||
Write off of purchase price receivable | $5,400,000 |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | Feb. 28, 2011 | Feb. 28, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | Jul. 01, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 | Dec. 01, 2011 | |
Employee | Competence sites | E&I | DMS | DMS | Nypro Inc. | Nypro Inc. | Nypro Inc. | Nypro Inc. | Nypro Inc. | Nypro Inc. | Nypro Inc. | Nypro Inc. | Nypro Inc. | Telmar Network Technology, Inc. | Telmar Network Technology, Inc. | Telmar Network Technology, Inc. | |||
Competence sites | Indefinite lived trade name | Customer Relationships | Customer Relationships | Intellectual property | Intellectual property | DMS | |||||||||||||
Maximum | Maximum | ||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of equity interest acquired | 100.00% | 100.00% | 100.00% | ||||||||||||||||
Date of acquisition | 1-Jul-13 | 1-Dec-11 | |||||||||||||||||
Business acquisition amount of cash paid | $500,000 | $679,500,000 | $128,900,000 | ||||||||||||||||
Goodwill acquired | 341,593,000 | 60,942,000 | 7,100,000 | 341,593,000 | 60,942,000 | 335,871,000 | 335,900,000 | 60,900,000 | |||||||||||
Acquired intangible assets | 196,800,000 | 71,600,000 | 72,500,000 | ||||||||||||||||
Acquired Finite intangible assets | 72,500,000 | 52,700,000 | |||||||||||||||||
Estimated useful life of intangible assets | 14 years | 9 years | |||||||||||||||||
Indefinite lived intangible assets acquired | 71,600,000 | ||||||||||||||||||
Nypro acquisition related professional fees and other transaction costs | 13,500,000 | ||||||||||||||||||
Revenue contributed by acquired entity | 183,200,000 | ||||||||||||||||||
Net income contributed by acquired entity | -8,800,000 | ||||||||||||||||||
Adjustments to proforma earnings | -75,200,000 | 89,300,000 | |||||||||||||||||
Total assets acquired | 131,400,000 | 184,200,000 | |||||||||||||||||
Acquired intangible assets | 196,800,000 | 49,900,000 | |||||||||||||||||
Liabilities assumed | 108,600,000 | 55,300,000 | |||||||||||||||||
Number of employees added | 1,500 | ||||||||||||||||||
Settlement of pre-existing receivables and other relationships at fair value | 22,300,000 | ||||||||||||||||||
Charge recognized prior to acquisition | 12,700,000 | ||||||||||||||||||
Receivables and other relationships recorded at fair value | $35,000,000 |
Summary_of_Fair_Value_of_Asset
Summary of Fair Value of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Business Acquisition [Line Items] | ||
Goodwill | $341,593 | $60,942 |
Noncontrolling interests | -36,548 | |
Nypro Inc. | ||
Business Acquisition [Line Items] | ||
Cash | 77,384 | |
Other current assets | 343,446 | |
Property, plant and equipment | 282,599 | |
Intangible assets | 196,800 | |
Goodwill | 335,871 | |
Other assets | 28,304 | |
Current liabilities | -322,397 | |
Long-term deferred tax liability | -153,030 | |
Other liabilities | -72,906 | |
Noncontrolling interests | -36,548 | |
Net assets acquired | $679,523 |
Schedule_of_Proforma_Business_
Schedule of Proforma Business Acquisition (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Business Combinations [Abstract] | ||
Net revenue | $19,238,000 | $18,275,067 |
Net income | $290,838 | $473,791 |
Earnings per share, basic | $1.43 | $2.30 |
Earnings per share, diluted | $1.40 | $2.24 |
Allowance_for_Uncollectible_Ac
Allowance for Uncollectible Accounts Receivables (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at end of period | $2,700 | $3,200 | |
Allowance for uncollectible accounts receivable | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 3,237 | 4,788 | 13,939 |
Additions and adjustments charged to costs and expenses | 1,770 | 564 | 5,179 |
Additions/(Reductions) charged to other accounts | -6,428 | ||
Write-offs | -2,290 | -2,115 | -7,902 |
Balance at end of period | $2,717 | $3,237 | $4,788 |
Valuation_Allowance_for_Deferr
Valuation Allowance for Deferred Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at end of period | $318,611 | $487,745 | |
Valuation allowance for deferred taxes | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 487,745 | 469,067 | 375,301 |
Additions charged to costs and expenses | 30,957 | 69,685 | 46,825 |
Additions/(Reductions) charged to other accounts | -121,840 | -39,065 | 76,489 |
Reductions charged to costs and expenses | -78,251 | -11,942 | -29,548 |
Balance at end of period | $318,611 | $487,745 | $469,067 |
Valuation_Allowance_for_Deferr1
Valuation Allowance for Deferred Taxes (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2013 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Partial release of U.S. valuation allowance | $104 |
U.S. | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Federal net operating loss carry forwards | 424.1 |
Non U.S. | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Federal net operating loss carry forwards | 532.3 |
Increase in non U.S. unrecognized tax benefit | 50 |
Expired And Internal Revenue Code Section Three Eight Two Limited | U.S. | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Federal net operating loss carry forwards | $70.30 |