Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2019 | Jun. 21, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | JABIL INC | |
Entity Central Index Key | 0000898293 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 152,927,423 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 694,086 | $ 1,257,949 |
Accounts receivable, net of allowance for doubtful accounts of $16,951 as of May 31, 2019 and $15,181 as of August 31, 2018 | 2,696,599 | 1,693,268 |
Contract assets | 899,482 | 0 |
Inventories, net | 3,159,369 | 3,457,706 |
Prepaid expenses and other current assets | 524,833 | 1,141,000 |
Total current assets | 7,974,369 | 7,549,923 |
Property, plant and equipment, net of accumulated depreciation of $3,993,635 as of May 31, 2019 and $3,646,945 as of August 31, 2018 | 3,335,837 | 3,198,016 |
Goodwill | 624,474 | 627,745 |
Intangible assets, net of accumulated amortization of $329,189 as of May 31, 2019 and $307,178 as of August 31, 2018 | 266,205 | 279,131 |
Deferred income taxes | 202,556 | 218,252 |
Other assets | 205,336 | 172,574 |
Total assets | 12,608,777 | 12,045,641 |
Current liabilities: | ||
Current installments of notes payable and long-term debt | 454,830 | 25,197 |
Accounts payable | 4,826,333 | 4,942,932 |
Accrued expenses | 2,586,052 | 2,262,744 |
Total current liabilities | 7,867,215 | 7,230,873 |
Notes payable and long-term debt, less current installments | 2,476,842 | 2,493,502 |
Other liabilities | 145,750 | 94,617 |
Income tax liabilities | 136,400 | 148,884 |
Deferred income taxes | 115,370 | 114,385 |
Total liabilities | 10,741,577 | 10,082,261 |
Commitments and contingencies | ||
Jabil Inc. stockholders’ equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and no shares outstanding | ||
Common stock, $0.001 par value, authorized 500,000,000 shares; 259,812,625 and 257,130,145 shares issued and 152,926,887 and 164,588,172 shares outstanding as of May 31, 2019 and August 31, 2018, respectively | 260 | 257 |
Additional paid-in capital | 2,279,409 | 2,218,673 |
Retained earnings | 1,996,901 | 1,760,097 |
Accumulated other comprehensive loss | (50,005) | (19,399) |
Treasury stock at cost, 106,885,738 and 92,541,973 shares as of May 31, 2019 and August 31, 2018, respectively | (2,371,592) | (2,009,371) |
Total Jabil Inc. stockholders’ equity | 1,854,973 | 1,950,257 |
Noncontrolling interests | 12,227 | 13,123 |
Total equity | 1,867,200 | 1,963,380 |
Total liabilities and equity | $ 12,608,777 | $ 12,045,641 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 16,951 | $ 15,181 |
Property, plant and equipment, accumulated depreciation | 3,993,635 | 3,646,945 |
Intangible assets, accumulated amortization | $ 329,189 | $ 307,178 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 259,812,625 | 257,130,145 |
Common stock, shares outstanding | 152,926,887 | 164,588,172 |
Treasury stock, shares | 106,885,738 | 92,541,973 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Income Statement [Abstract] | ||||
Net revenue | $ 6,135,602 | $ 5,436,952 | $ 18,708,867 | $ 16,323,585 |
Cost of revenue | 5,691,803 | 5,038,725 | 17,290,544 | 15,058,940 |
Gross profit | 443,799 | 398,227 | 1,418,323 | 1,264,645 |
Operating expenses: | ||||
Selling, general and administrative | 274,482 | 252,487 | 834,750 | 789,482 |
Research and development | 11,449 | 10,082 | 32,747 | 27,535 |
Amortization of intangibles | 7,610 | 10,040 | 23,033 | 29,909 |
Restructuring and related charges | 9,340 | 12,647 | 16,182 | 29,462 |
Operating income | 140,918 | 112,971 | 511,611 | 388,257 |
Other expense | 14,084 | 10,139 | 39,391 | 26,506 |
Interest income | (6,758) | (4,499) | (15,897) | (13,323) |
Interest expense | 50,514 | 36,178 | 139,326 | 110,220 |
Income before income tax | 83,078 | 71,153 | 348,791 | 264,854 |
Income tax expense | 39,046 | 28,451 | 113,078 | 120,705 |
Net income | 44,032 | 42,702 | 235,713 | 144,149 |
Net income attributable to noncontrolling interests, net of tax | 550 | 161 | 1,277 | 505 |
Net income attributable to Jabil Inc. | $ 43,482 | $ 42,541 | $ 234,436 | $ 143,644 |
Earnings per share attributable to the stockholders of Jabil Inc.: | ||||
Basic (in dollars per share) | $ 0.28 | $ 0.25 | $ 1.50 | $ 0.83 |
Diluted (in dollars per share) | $ 0.28 | $ 0.25 | $ 1.47 | $ 0.81 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 152,889 | 170,514 | 156,384 | 174,013 |
Diluted (in shares) | 155,678 | 173,279 | 159,036 | 176,997 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 44,032 | $ 42,702 | $ 235,713 | $ 144,149 |
Other comprehensive loss: | ||||
Change in foreign currency translation | (18,548) | (40,640) | (5,636) | (19,720) |
Change in derivative instruments: | ||||
Change in fair value of derivatives | (20,179) | (5,944) | (36,262) | 22,453 |
Adjustment for net (gains) losses realized and included in net income | (1,728) | (13,890) | 15,958 | (28,974) |
Total change in derivative instruments | (21,907) | (19,834) | (20,304) | (6,521) |
Unrealized gain (loss) on available for sale securities | 3,703 | (202) | (4,769) | (2,016) |
Actuarial gain (loss) | 0 | 0 | 103 | (431) |
Total other comprehensive loss | (36,752) | (60,676) | (30,606) | (28,688) |
Comprehensive income (loss) | 7,280 | (17,974) | 205,107 | 115,461 |
Comprehensive income attributable to noncontrolling interests | 550 | 161 | 1,277 | 505 |
Comprehensive income (loss) attributable to Jabil Inc. | $ 6,730 | $ (18,135) | $ 203,830 | $ 114,956 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Noncontrolling Interests |
Beginning Balance at Aug. 31, 2017 | $ 2,368,344 | $ 253 | $ 2,104,203 | $ 1,730,893 | $ 54,620 | $ (1,536,455) | $ 14,830 |
Shares issued under employee stock purchase plan | 1 | 12,844 | |||||
Vesting of restricted stock awards | 3 | (3) | |||||
Recognition of stock-based compensation | 74,362 | ||||||
Declared dividends | (43,616) | ||||||
Comprehensive income | 115,461 | 143,644 | (28,688) | 505 | |||
Purchases of treasury stock under employee stock plans | (22,526) | ||||||
Treasury shares purchased | (316,394) | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Disposition of noncontrolling interests | 0 | ||||||
Declared dividends to noncontrolling interests | (2,920) | ||||||
Foreign currency adjustments attributable to noncontrolling interests | 2 | ||||||
Ending Balance at May. 31, 2018 | 2,185,558 | 257 | 2,191,406 | 1,830,921 | 25,932 | (1,875,375) | 12,417 |
Beginning Balance at Feb. 28, 2018 | 2,294,346 | 257 | 2,176,764 | 1,802,372 | 86,608 | (1,783,906) | 12,251 |
Shares issued under employee stock purchase plan | 0 | 6 | |||||
Vesting of restricted stock awards | 0 | 0 | |||||
Recognition of stock-based compensation | 14,636 | ||||||
Declared dividends | (13,992) | ||||||
Comprehensive income | (17,974) | 42,541 | (60,676) | 161 | |||
Purchases of treasury stock under employee stock plans | (183) | ||||||
Treasury shares purchased | (91,286) | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Disposition of noncontrolling interests | 0 | ||||||
Declared dividends to noncontrolling interests | 0 | ||||||
Foreign currency adjustments attributable to noncontrolling interests | 5 | ||||||
Ending Balance at May. 31, 2018 | 2,185,558 | 257 | 2,191,406 | 1,830,921 | 25,932 | (1,875,375) | 12,417 |
Cumulative effect adjustment for adoption of new accounting standards | 40,855 | ||||||
Beginning Balance at Aug. 31, 2018 | 1,963,380 | 257 | 2,218,673 | 1,760,097 | (19,399) | (2,009,371) | 13,123 |
Shares issued under employee stock purchase plan | 1 | 14,582 | |||||
Vesting of restricted stock awards | 2 | (2) | |||||
Recognition of stock-based compensation | 46,156 | ||||||
Declared dividends | (38,487) | ||||||
Comprehensive income | 205,107 | 234,436 | (30,606) | 1,277 | |||
Purchases of treasury stock under employee stock plans | (11,898) | ||||||
Treasury shares purchased | (350,323) | ||||||
Acquisition of noncontrolling interests | 1,112 | ||||||
Disposition of noncontrolling interests | (1,785) | ||||||
Declared dividends to noncontrolling interests | (1,500) | ||||||
Foreign currency adjustments attributable to noncontrolling interests | 0 | ||||||
Ending Balance at May. 31, 2019 | 1,867,200 | 260 | 2,279,409 | 1,996,901 | (50,005) | (2,371,592) | 12,227 |
Beginning Balance at Feb. 28, 2019 | 1,858,852 | 260 | 2,264,966 | 1,966,100 | (13,253) | (2,370,898) | 11,677 |
Shares issued under employee stock purchase plan | 0 | (5) | |||||
Vesting of restricted stock awards | 0 | 0 | |||||
Recognition of stock-based compensation | 14,448 | ||||||
Declared dividends | (12,681) | ||||||
Comprehensive income | 7,280 | 43,482 | (36,752) | 550 | |||
Purchases of treasury stock under employee stock plans | (694) | ||||||
Treasury shares purchased | 0 | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Disposition of noncontrolling interests | 0 | ||||||
Declared dividends to noncontrolling interests | 0 | ||||||
Foreign currency adjustments attributable to noncontrolling interests | 0 | ||||||
Ending Balance at May. 31, 2019 | $ 1,867,200 | $ 260 | $ 2,279,409 | $ 1,996,901 | $ (50,005) | $ (2,371,592) | $ 12,227 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 235,713 | $ 144,149 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 574,922 | 583,646 |
Restructuring and related charges | (3,555) | 14,838 |
Recognition of stock-based compensation expense and related charges | 47,452 | 74,977 |
Deferred income taxes | 14,008 | (39,762) |
Provision for allowance for doubtful accounts | 10,734 | 20,577 |
Other, net | 34,204 | (4,059) |
Change in operating assets and liabilities, exclusive of net assets acquired: | ||
Accounts receivable | (528,597) | (1,692,208) |
Contract assets | (865,408) | 0 |
Inventories | 349,252 | (379,658) |
Prepaid expenses and other current assets | 6,910 | (98,160) |
Other assets | (16,700) | (21,542) |
Accounts payable, accrued expenses and other liabilities | 253,721 | 20,897 |
Net cash provided by (used in) operating activities | 112,656 | (1,376,305) |
Cash flows (used in) provided by investing activities: | ||
Acquisition of property, plant and equipment | (789,226) | (819,167) |
Proceeds and advances from sale of property, plant and equipment | 167,653 | 246,370 |
Cash paid for business and intangible asset acquisitions, net of cash | (153,239) | (109,664) |
Cash receipts on sold receivables | 96,846 | 1,571,156 |
Other, net | (26,129) | (2,360) |
Net cash (used in) provided by investing activities | (704,095) | 886,335 |
Cash flows provided by (used in) financing activities: | ||
Borrowings under debt agreements | 9,482,468 | 6,847,756 |
Payments toward debt agreements | (9,073,684) | (6,472,728) |
Payments to acquire treasury stock | (350,323) | (316,394) |
Dividends paid to stockholders | (39,736) | (44,274) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 14,582 | 12,844 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (11,898) | (22,526) |
Other, net | (1,500) | (11,876) |
Net cash provided by (used in) financing activities | 19,909 | (7,198) |
Effect of exchange rate changes on cash and cash equivalents | 7,667 | (15,259) |
Net decrease in cash and cash equivalents | (563,863) | (512,427) |
Cash and cash equivalents at beginning of period | 1,257,949 | 1,189,919 |
Cash and cash equivalents at end of period | $ 694,086 | $ 677,492 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. Jabil Inc. (the “Company”) has made certain reclassification adjustments to conform prior periods’ Condensed Consolidated Financial Statements to the current presentation. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in the Annual Report on Form 10-K of the Company for the fiscal year ended August 31, 2018 . Results for the nine months ended May 31, 2019 are not necessarily an indication of the results that may be expected for the full fiscal year ending August 31, 2019 . |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Dividends | Earnings Per Share and Dividends Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the period. The Company’s diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities. The difference between the weighted average number of basic shares outstanding and the weighted average number of diluted shares outstanding is primarily due to dilutive unvested restricted stock unit awards (“restricted stock units”) and dilutive stock appreciation rights. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be antidilutive. Performance-based restricted stock units are considered dilutive when the related performance criteria have been met assuming the end of the reporting period represents the end of the performance period. All potential shares of common stock are antidilutive in periods of net loss. Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Restricted stock units 1,345 2,129 1,338 2,136 Dividends The following table sets forth cash dividends declared by the Company to common stockholders during the nine months ended May 31, 2019 and 2018 (in thousands, except for per share data): Dividend Declaration Date Dividend per Share Total of Cash Dividends Declared Date of Record for Dividend Payment Dividend Cash Payment Date Fiscal Year 2019: October 18, 2018 $ 0.08 $ 13,226 November 15, 2018 December 3, 2018 January 24, 2019 $ 0.08 $ 12,706 February 15, 2019 March 1, 2019 April 18, 2019 $ 0.08 $ 12,681 May 15, 2019 June 3, 2019 Fiscal Year 2018: October 19, 2017 $ 0.08 $ 14,588 November 15, 2017 December 1, 2017 January 25, 2018 $ 0.08 $ 14,272 February 15, 2018 March 1, 2018 April 19, 2018 $ 0.08 $ 13,991 May 15, 2018 June 1, 2018 |
Inventories
Inventories | 9 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): May 31, 2019 August 31, 2018 Raw materials $ 2,388,902 $ 2,070,569 Work in process 501,168 788,742 Finished goods 333,224 659,335 Reserve for excess and obsolete inventory (63,925 ) (60,940 ) Inventories, net $ 3,159,369 $ 3,457,706 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
May 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): May 31, 2019 August 31, 2018 Contract liabilities $ 544,831 $ — Deferred income — 691,365 Accrued compensation and employee benefits 549,598 570,400 Other accrued expenses 1,491,623 1,000,979 Accrued expenses $ 2,586,052 $ 2,262,744 |
Stock-Based Compensation and Sh
Stock-Based Compensation and Shares Repurchases | 9 Months Ended |
May 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Shares Repurchases | Stock-Based Compensation and Share Repurchases The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Restricted stock units and stock appreciation rights $ 12,592 $ 13,457 $ 41,247 $ 69,916 Employee stock purchase plan 1,914 1,581 6,205 5,368 Other (1) — — — 7,538 Total $ 14,506 $ 15,038 $ 47,452 $ 82,822 (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. As of May 31, 2019 , the shares available to be issued under the 2011 Stock Award and Incentive Plan were 12,021,729 . Restricted Stock Units Certain key employees have been granted time-based, performance-based and market-based restricted stock units. The time-based restricted stock units generally vest on a graded vesting schedule over three years . The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 150% , depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200% , depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the nine months ended May 31, 2019 and 2018 , the Company awarded approximately 1.6 million and 1.4 million time-based restricted stock units, respectively, 0.4 million and 0.4 million performance-based restricted stock units, respectively and 0.4 million and 0.4 million market-based restricted stock units, respectively. The following represents the stock-based compensation information for the period indicated (in thousands): Nine months ended May 31, 2019 Unrecognized stock-based compensation expense—restricted stock units $ 53,987 Remaining weighted-average period for restricted stock units expense 1.4 years Common Stock Outstanding The following represents the common stock outstanding for the periods indicated: Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Common stock outstanding: Beginning balances 152,878,329 172,063,230 164,588,172 177,727,653 Shares issued upon exercise of stock options — — 11,348 29,688 Shares issued under employee stock purchase plan (215 ) 261 692,110 575,777 Vesting of restricted stock 73,095 24,232 1,979,022 2,718,379 Purchases of treasury stock under employee stock plans (24,322 ) (6,567 ) (489,158 ) (790,598 ) Treasury shares purchased (1) — (3,281,412 ) (13,854,607 ) (11,461,155 ) Ending balances 152,926,887 168,799,744 152,926,887 168,799,744 (1) In June 2018, the Company’s Board of Directors authorized the repurchase of up to $350.0 million of the Company’s common stock (the “2018 Share Repurchase Program”). The 2018 Share Repurchase Program expires August 31, 2019. As of May 31, 2019 , the total amount authorized by the Board of Directors had been repurchased. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 9 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the nine months ended May 31, 2019 , the Company’s five largest customers accounted for approximately 43% of its net revenue and 82 customers accounted for approximately 90% of its net revenue. Sales to these customers were reported in the Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”) operating segments. The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data 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. Segment income does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense, interest income, interest expense, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. The following table sets forth operating segment information (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Net revenue EMS $ 3,988,489 $ 3,161,626 $ 11,296,319 $ 8,894,174 DMS 2,147,113 2,275,326 7,412,548 7,429,411 $ 6,135,602 $ 5,436,952 $ 18,708,867 $ 16,323,585 Segment income and reconciliation of income before income tax EMS $ 130,869 $ 121,563 $ 303,618 $ 302,556 DMS 54,896 28,499 326,866 253,322 Total segment income $ 185,765 $ 150,062 $ 630,484 $ 555,878 Reconciling items: Amortization of intangibles (7,610 ) (10,040 ) (23,033 ) (29,909 ) Stock-based compensation expense and related charges (14,506 ) (15,038 ) (47,452 ) (82,822 ) Restructuring and related charges (9,340 ) (12,647 ) (16,182 ) (29,462 ) Distressed customer charge — — — (14,706 ) Business interruption and impairment charges, net (1) — 634 2,860 (10,722 ) Acquisition and integration charges (13,391 ) — (35,066 ) — Other expense (14,084 ) (10,139 ) (39,391 ) (26,506 ) Interest income 6,758 4,499 15,897 13,323 Interest expense (50,514 ) (36,178 ) (139,326 ) (110,220 ) Income before income tax $ 83,078 $ 71,153 $ 348,791 $ 264,854 (1) Charges, net of insurance proceeds of $5.0 million for the three months ended May 31, 2018 , and $2.9 million and $21.4 million for the nine months ended May 31, 2019 and 2018 , respectively, relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted our operations in Cayey, Puerto Rico. As of May 31, 2019 , the Company operated in 29 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 table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Foreign source revenue 86.5 % 91.2 % 89.2 % 91.8 % |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 9 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of May 31, 2019 and August 31, 2018 are summarized below (in thousands): Maturity Date May 31, August 31, 5.625% Senior Notes Dec 15, 2020 $ 398,663 $ 397,995 4.700% Senior Notes Sep 15, 2022 497,841 497,350 4.900% Senior Notes Jul 14, 2023 298,996 298,814 3.950% Senior Notes Jan 12, 2028 494,670 494,208 Borrowings under credit facilities (1) Nov 8, 2022 and Aug 24, 2020 429,648 — Borrowings under loans Nov 8, 2022 and Aug 24, 2020 811,854 830,332 Total notes payable and long-term debt 2,931,672 2,518,699 Less current installments of notes payable and long-term debt 454,830 25,197 Notes payable and long-term debt, less current installments $ 2,476,842 $ 2,493,502 (1) As of May 31, 2019 , the Company has $2.0 billion in available unused borrowing capacity under its revolving credit facilities. Debt Covenants Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the revolving credit facilities and the 4.900% Senior Notes contain debt leverage and interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 5.625% , 4.700% , 4.900% or 3.950% Senior Notes upon a change of control. As of May 31, 2019 and August 31, 2018 , the Company was in compliance with its debt covenants. Fair Value The estimated fair values of the Company’s publicly traded debt, including the 5.625% , 4.700% and 3.950% Senior Notes, were approximately $416.5 million , $517.9 million and $480.1 million , respectively, as of May 31, 2019 . The fair value estimates are based upon observable market data (Level 2 criteria). The estimated fair value of the Company’s private debt, the 4.900% Senior Notes, was approximately $311.2 million , as of May 31, 2019 . This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows (Level 3 criteria). The carrying amounts of borrowings under credit facilities and under loans approximate fair value as interest rates on these instruments approximate current market rates. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 9 Months Ended |
May 31, 2019 | |
Transfers and Servicing [Abstract] | |
Trade Accounts Receivable Securitization and Sale Programs | Trade Accounts Receivable Securitization and Sale Programs The Company regularly sells designated pools of trade accounts receivable under a foreign asset-backed securitization program, a North American asset-back securitization program and 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 three months and nine months ended May 31, 2019 and 2018 were not material. The Company does not record a servicing asset or liability on the Condensed 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 Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. The adoption of Accounting Standards Update No. 2016-15 (“ASU 2016-15”) described in Note 14 , New Accounting Guidance, resulted in a reclassification of cash flows from operating activities to investing activities in the Company’s Condensed Consolidated Statement of Cash Flows for cash receipts related to collections on the deferred purchase price receivable (i.e. beneficial interest) on asset-backed securitization transactions. In addition, the beneficial interest of $162.2 million and $1.5 billion for the nine months ended May 31, 2019 and 2018, respectively, obtained in exchange for securitized receivables are reported as non-cash investing activities. Asset-Backed Securitization Programs The Company continuously sells designated pools of trade accounts receivable under its foreign asset-backed securitization program to a special purpose entity, which in turn sells certain of the receivables to an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution on a monthly basis. Effective October 1, 2018, the foreign asset-backed securitization program terms were amended and the program was extended to September 30, 2021. In connection with this amendment, there is no longer a deferred purchase price receivable for the foreign asset-backed securitization program as the entire purchase price is paid in cash when the receivables are sold. As of October 1, 2018, approximately $734.2 million of accounts receivable sold under the foreign asset-backed securitization program was exchanged for the outstanding deferred purchase price receivable of $335.5 million . The remaining amount due to the financial institution of $398.7 million was subsequently settled for $25.2 million of cash and $373.5 million of trade accounts receivable sold to the financial institution. The previously sold trade accounts receivable were recorded at fair market value. Prior to the amendment, any portion of the purchase price for the receivables not paid in cash upon the sale occurring was recorded as a deferred purchase price receivable, which was paid from available cash as payments on the receivables were collected. The foreign asset-backed securitization program contains a guarantee of payment by the special purpose entity, in an amount equal to approximately the net cash proceeds under the program. No liability has been recorded for obligations under the guarantee as of May 31, 2019 . 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 entity associated with the foreign asset-backed securitization program is included in the Company’s Condensed Consolidated Financial Statements. The North American asset-backed securitization program was terminated on October 9, 2018 and as of this date approximately $500.0 million of accounts receivable sold under the program was exchanged for the outstanding deferred purchase price receivable of $300.0 million and $200.0 million of cash. The previously sold trade accounts receivable were recorded at fair market value. On November 27, 2018, the Company entered into a new North American asset-backed securitization program. The Company continuously sells designated pools of trade accounts receivable under its new North American asset-backed securitization program to a special purpose entity, which in turn sells certain of the receivables to conduits administered by unaffiliated financial institutions on a monthly basis. The special purpose entity in the North American asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Condensed Consolidated Financial Statements. There is no longer a deferred purchase price receivable for the North American asset-backed securitization program as the entire purchase price is paid in cash when the receivables are sold. Additionally, $204.4 million in receivables are pledged as collateral to the unaffiliated financial institution as of May 31, 2019 . Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of (1) Expiration North American $ 390.0 November 22, 2021 Foreign $ 400.0 September 30, 2021 (1) Maximum amount available at any one time. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 (4) May 31, 2018 Trade accounts receivable sold $ 1,036 $ 1,913 $ 2,864 $ 6,362 Cash proceeds received (1) $ 1,029 $ 1,379 $ 2,845 $ 5,821 Pre-tax losses on sale of receivables (2) $ 7 $ 4 $ 19 $ 11 Deferred purchase price receivables as of May 31 (3) $ — $ 530 $ — $ 530 (1) For the three months and nine months ended May 31, 2019 and 2018 , the amount primarily represented proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. (3) Recorded initially at fair value as prepaid expenses and other current assets on the Condensed 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. (4) Excludes $650.3 million of trade accounts receivable sold, $488.1 million of cash and $13.9 million of net cash received prior to the amendment of the foreign asset-backed securitization program and under the previous North American asset-backed securitization program. The asset-backed securitization programs require compliance with several covenants. The North American asset-backed securitization program covenants include compliance with the interest ratio and debt to EBITDA ratio of the Credit Facility. The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. As of May 31, 2019 and August 31, 2018 , the Company was in compliance with all covenants under the asset-backed securitization programs. Trade Accounts Receivable Sale Programs The following is a summary of the trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase, at a discount, on an ongoing basis: Program Maximum (1) Type of Expiration A $ 800.0 Uncommitted August 31, 2022 (2) B $ 150.0 Uncommitted November 30, 2019 (3) C 800.0 CNY Uncommitted June 30, 2020 D $ 100.0 Uncommitted May 4, 2023 (4) E $ 50.0 Uncommitted August 25, 2019 F $ 150.0 Uncommitted January 25, 2020 (5) G $ 50.0 Uncommitted February 23, 2023 (2) H $ 100.0 Uncommitted August 10, 2019 (6) I $ 100.0 Uncommitted July 21, 2019 (7) J $ 740.0 Uncommitted February 28, 2020 (8) K $ 110.0 Uncommitted April 11, 2020 (9) (1) Maximum amount available at any one time. (2) Any party may elect to terminate the agreement upon 15 days prior notice. (3) The program will automatically extend for one year at each expiration date unless either party provides 10 days notice of termination. (4) Any party may elect to terminate the agreement upon 30 days prior notice. (5) The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination. (6) The program will be automatically extended through August 10, 2023 unless either party provides 30 days notice of termination. (7) The program will be automatically extended through August 21, 2023 unless either party provides 30 days notice of termination. (8) The program will be automatically extended each year through February 28, 2024 unless either party provides 90 days notice of termination. (9) The program will be automatically extended each year through April 11, 2025 unless either party provides 30 days notice of termination. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Trade accounts receivable sold $ 1,548 $ 1,301 $ 5,101 $ 4,035 Cash proceeds received $ 1,541 $ 1,296 $ 5,079 $ 4,025 Pre-tax losses on sale of receivables (1) $ 7 $ 5 $ 22 $ 10 (1) Recorded to other expense within the Condensed Consolidated Statement of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component for the nine months ended May 31, 2019 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities Total Balance as of August 31, 2018 $ 7,431 $ 8,116 $ (25,021 ) $ (643 ) $ (9,282 ) (19,399 ) Other comprehensive (loss) income before reclassifications (5,636 ) (36,262 ) 103 — (4,769 ) (46,564 ) Amounts reclassified from AOCI — 15,958 — — — 15,958 Other comprehensive (loss) income (1) (5,636 ) (20,304 ) 103 — (4,769 ) (30,606 ) Balance as of May 31, 2019 $ 1,795 $ (12,188 ) $ (24,918 ) $ (643 ) $ (14,051 ) $ (50,005 ) (1) Amounts are net of tax, which are immaterial. The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in thousands): Three months ended Nine months ended Comprehensive Income Components Financial Statement Line Item May 31, May 31, May 31, May 31, Unrealized losses (gains) on derivative instruments: Foreign exchange contracts Cost of revenue $ (1,298 ) $ (10,459 ) $ 17,248 $ (20,519 ) Interest rate contracts Interest expense (430 ) (3,431 ) (1,290 ) (8,455 ) Total amounts reclassified from AOCI (1)(2) $ (1,728 ) $ (13,890 ) $ 15,958 $ (28,974 ) (1) The Company expects to reclassify $0.5 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (2) Amounts are net of tax, which are immaterial for the three months and nine months ended May 31, 2019 . The amounts for the three months and nine months ended May 31, 2018 , include a reduction to income tax expense related to derivative instruments of $3.0 million and $10.0 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 Internal Revenue Service (“IRS”) completed its field examination of the Company’s tax returns for fiscal years 2009 through 2011 and issued a Revenue Agent’s Report (“RAR”) on May 27, 2015, which was updated on June 22, 2016. The IRS completed its field examination of the Company’s tax returns for fiscal years 2012 through 2014 and issued an RAR on April 19, 2017. The proposed adjustments in the RAR from both examination periods relate primarily to U.S. taxation of certain intercompany transactions. On May 8, 2019, the tax return audits for fiscal years 2009 through 2014 were effectively settled when the Company agreed to the IRS Office of Appeals’ Form 870-AD (Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment) adjustments, which were substantially lower than the initial RAR proposed adjustments. The settlement did not have a material effect on the Company’s financial position, results of operations, or cash flows and no additional tax liabilities were recorded. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
May 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | 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 risk and interest rate risk. Foreign Currency Risk Management Forward contracts are put in place to manage the foreign currency risk associated with the anticipated foreign currency denominated revenues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $135.9 million and $293.4 million as of May 31, 2019 and August 31, 2018 , 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 June 1, 2019 and February 29, 2020 . In addition to derivatives that are designated as hedging instruments 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 as of May 31, 2019 and August 31, 2018 , was $2.1 billion and $2.3 billion , respectively. The following table presents the fair values of the Company’s derivative instruments recorded in the Condensed Consolidated Balance Sheets utilized for foreign currency risk management purposes as of May 31, 2019 and August 31, 2018 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value as of Fair Value as of Balance Sheet Location Fair Value as of Fair Value as of Derivatives designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 644 $ 225 Accrued expenses $ 3,853 $ 13,364 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 5,216 $ 10,125 Accrued expenses $ 26,851 $ 46,171 (1) Classified as Level 2 in the fair-value hierarchy. 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 gains and losses recognized in earnings due to hedge ineffectiveness and the amount excluded from effectiveness testing were not material for all periods presented and are included as components of net revenue, cost of revenue and selling, general and administrative expense, which are the same line items in which the hedged items are recorded. The following table presents the net gains from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in thousands): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of (Loss) Gain on Derivatives Recognized in Net Income Amount of (Loss) Gain Recognized in Net Income on Derivatives Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Forward foreign exchange contracts (1) Cost of revenue $ (33,476 ) $ (19,785 ) $ 9,332 $ 25,959 (1) During the three months ended May 31, 2019 and 2018, the Company recognized $28.3 million and $23.1 million , respectively, of foreign currency gains in cost of revenue, which are offset by the losses from the forward foreign exchange contracts. During the nine months ended May 31, 2019 and 2018, the Company recognized $24.3 million and $12.5 million , respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. Interest Rate Risk Management The Company periodically enters into interest rate swaps to manage interest rate risk associated with the Company’s borrowings. Cash Flow Hedges The following table presents the interest rate swaps outstanding as of May 31, 2019, which have been designated as hedging instruments and accounted for as cash flow hedges: Interest Rate Swap Summary Hedged Interest Rate Payments Aggregate Notional Amount (in millions) Effective Date Expiration Date (1) Forward Interest Rate Swap Anticipated Debt Issuance Fixed $ 200.0 October 22, 2018 December 15, 2020 (2) Interest Rate Swaps (3) 2017 Term Loan Facility Variable $ 200.0 September 30, 2016 June 30, 2019 2017 Term Loan Facility Variable $ 200.0 October 11, 2018 August 31, 2020 2018 Term Loan Facility Variable $ 350.0 August 24, 2018 August 24, 2020 (1) The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap and at each settlement date for the interest rate swaps. (2) If the anticipated debt issuance occurs before December 15, 2020, the contracts will be terminated simultaneously with the debt issuance. (3) The Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receives variable rate interest payments based on the one-month LIBOR for the $500.0 million Term Loan Facility, expiring on November 8, 2022 (the “2017 Term Loan Facility”), for which $400.0 million is hedged, and based on the three-month LIBOR for the $350.0 million Term Loan Facility, which expires on August 24, 2020 (the “2018 Term Loan Facility”). |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
May 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | Restructuring and Related Charges Following is a summary of the Company’s restructuring and related charges (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Employee severance and benefit costs $ 6,513 $ 5,058 $ 15,460 $ 11,048 Lease costs (50 ) 1,589 (41 ) 1,596 Asset write-off costs (343 ) 5,575 (3,555 ) 14,838 Other costs 3,220 425 4,318 1,980 Total restructuring and related charges (1) $ 9,340 $ 12,647 $ 16,182 $ 29,462 (1) Includes $7.6 million and $4.6 million recorded in the EMS segment, $0.0 million and $5.8 million recorded in the DMS segment and $1.7 million and $2.2 million of non-allocated charges for the three months ended May 31, 2019 and 2018 , respectively. Includes $12.3 million and $12.6 million recorded in the EMS segment, $2.1 million and $13.8 million recorded to the DMS segment and $1.8 million and $3.1 million of non-allocated charges for the nine months ended May 31, 2019 and 2018 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. 2017 Restructuring Plan On September 15, 2016, the Company’s Board of Directors formally approved a restructuring plan to better align the Company’s global capacity and administrative support infrastructure to further optimize organizational effectiveness. This action includes headcount reductions across the Company’s selling, general and administrative cost base and capacity realignment in higher cost locations (the “2017 Restructuring Plan”). The 2017 Restructuring Plan, totaling $195.0 million in restructuring and other related costs, is substantially complete as of May 31, 2019. The table below summarizes the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands): Employee Severance and Benefit Costs Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2018 $ 18,131 $ 2,684 $ — $ 522 $ 21,337 Restructuring related charges 15,460 (41 ) (3,555 ) 1,469 13,333 Asset write-off charge and other non-cash activity (331 ) — 3,555 (14 ) 3,210 Cash payments (23,811 ) (450 ) — (1,275 ) (25,536 ) Balance as of May 31, 2019 $ 9,449 $ 2,193 $ — $ 702 $ 12,344 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
May 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Fiscal year 2019 During fiscal year 2018, the Company and Johnson & Johnson Medical Devices Companies (“JJMD”) entered into a Framework Agreement to form a strategic collaboration and expand its existing relationship. The strategic collaboration expands the Company’s medical device manufacturing portfolio, diversification and capabilities. On February 25, 2019 and April 29, 2019, under the terms of the Framework Agreement, the Company completed the initial closing and second closing, respectively, of its acquisition of certain assets of JJMD. The preliminary aggregate purchase price paid for both the initial closing and second closing was approximately $153.2 million in cash, which remains subject to certain post-closing adjustments. The acquisition of the JJMD assets has been accounted for as a business combination using the acquisition method of accounting. Total assets acquired of $163.6 million and total liabilities assumed of $10.4 million were recorded at their estimated fair values as of the acquisition dates. The final closings, which are subject to customary closing conditions, are expected to occur during fiscal year 2020. The Company is currently evaluating the fair values of the assets and liabilities related to this business combination. The preliminary estimates and measurements are, therefore, subject to change during the measurement period for assets acquired, liabilities assumed and tax adjustments. The results of operations were included in the Company’s condensed consolidated financial results beginning on February 25, 2019 for the initial closing and April 29, 2019 for the second closing. The Company believes it is impracticable to provide pro forma information for the acquisition of the JJMD assets. Fiscal year 2018 Acquisition On September 1, 2017 , the Company completed the acquisition of True-Tech Corporation (“True-Tech”) for approximately $95.9 million in cash. True-Tech is a manufacturer specializing in aerospace, semiconductor and medical machined components. The acquisition of True-Tech assets was accounted for as a business combination using the acquisition method of accounting. Assets acquired of $114.7 million , including $25.9 million in intangible assets and $22.6 million in goodwill, and liabilities assumed of $18.8 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 was recorded to goodwill and was fully allocated to the EMS segment. The majority of the goodwill is currently expected to be deductible for income tax purposes. The results of operations were included in the Company’s condensed consolidated financial results beginning on September 1, 2017. Pro forma information has not been provided as the acquisition of True-Tech is not deemed to be significant. |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
May 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | New Accounting Guidance Recently Adopted Accounting Guidance During fiscal year 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard, which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The accounting standard became effective for the Company in the first quarter of fiscal year 2019. The Company implemented changes to its processes, policies and internal controls to meet the impact of the new standard and disclosure requirements. Refer to Note 16 – “Revenue” to the Condensed Consolidated Financial Statements for further details. During fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance became effective for the Company in the first quarter of fiscal year 2019, and was applied prospectively by means of a cumulative-effect adjustment to the Consolidated Balance Sheet as of September 1, 2018 to equity investments that existed as of the date of adoption of the standard. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2016, the FASB issued a new accounting standard to address the presentation of certain transactions within the statement of cash flows with the objective of reducing the existing diversity in practice. This standard was adopted on September 1, 2018 on a retrospective basis and resulted in a reclassification of cash flows from operating activities to investing activities in the Company’s Consolidated Statement of Cash Flows for cash receipts related to collections on the deferred purchase price receivable on asset-backed securitization transactions. The increase in cash flow from investing activities and the corresponding decrease to cash flow from operating activities upon adoption of the standard was $96.8 million and $1.6 billion for the nine months ended May 31, 2019 and 2018 , respectively. During fiscal year 2017, the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. This guidance became effective for the Company beginning in the first quarter of fiscal year 2019. This guidance was adopted on a modified retrospective basis and an immaterial cumulative-effect adjustment was recorded, which reduced retained earnings as of September 1, 2018. During fiscal year 2017, the FASB issued a new accounting standard which clarifies the scope of accounting for asset derecognition and adds further guidance for recognizing gains and losses from the transfer of non-financial assets in contracts with non-customers. This guidance became effective for the Company beginning in the first quarter of fiscal year 2019 coincident with the new revenue recognition guidance. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2017, the FASB issued a new accounting standard to improve the presentation of net periodic pension benefit cost. The Company adopted the standard on September 1, 2018 on a retrospective basis which results in reclassifications for the service cost component of net periodic benefit cost from selling, general and administrative expense to cost of revenue and for the other components from selling, general and administrative expense to other expense. Prior periods have not been reclassified due to immateriality. During the second quarter of fiscal year 2018, the Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company applied SAB 118 and provided required disclosures in Note 15 - “Income Taxes.” Recently Issued Accounting Guidance During fiscal year 2016, the FASB issued a new accounting standard revising lease accounting. The new guidance requires organizations to recognize lease assets and lease liabilities on the Consolidated Balance Sheet and disclose key information regarding leasing arrangements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early application of the new standard is permitted and the standard must be adopted using a modified retrospective approach. The Company intends to elect the package of practical expedients offered, which allows entities to not reassess: i) whether any contracts prior to the adoption date are or contain leases, ii) lease classification, and iii) whether capitalized initial direct costs continue to meet the definition of initial direct costs under the new guidance. In preparation for the adoption, the Company is implementing a new lease accounting system. While the Company is currently evaluating accounting policy elections and assessing overall impacts this new standard will have on its Consolidated Financial Statements, the new guidance is expected to have a material impact on the consolidated balance sheets upon adoption, primarily due to the recognition of right-of-use assets and operating lease liabilities. During fiscal year 2016, the FASB issued an accounting standard, which replaces the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 and early adoption is permitted beginning in the first quarter of fiscal year 2020. This guidance must be applied using a modified retrospective or prospective transition method, depending on the area covered by this accounting standard. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2017, the FASB issued a new accounting standard to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities by simplifying the application of hedge accounting and improving the related disclosures in its financial statements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The guidance must be applied using a modified retrospective approach. The adoption of this standard is not expected to have a material impact on the Company’s Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2018, the FASB issued a new accounting standard which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. Recently issued accounting guidance not discussed above is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Income Taxes
Income Taxes | 9 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act reduced the corporate tax rate, limited or eliminated certain tax deductions, and changed the taxation of foreign earnings of U.S. multinational companies. The enacted changes include a mandatory income inclusion of the historically untaxed foreign earnings of a U.S. company’s foreign subsidiaries and will effectively tax such income at reduced tax rates (“transition tax”). As a result of the one-time transition tax, the Company will have a substantial amount of previously taxed earnings that can be distributed to the U.S. without additional U.S. taxation. Additionally, the Tax Act provides for a 100% dividends received deduction for dividends received by U.S. corporations from 10-percent or more owned foreign corporations. During the fiscal year ended August 31, 2018, the Company made reasonable estimates related to certain impacts of the Tax Act and, in accordance with SAB 118, recorded a net provisional income tax expense (benefit). In the second quarter of fiscal year 2019, the Company completed its accounting for the effects of the Tax Act under SAB 118 based on the analysis, interpretations and guidance available at that time. There may be future adjustments based on changes in interpretations, legislative updates or final regulations under the Tax Act, changes in accounting standards for income taxes, or changes in estimates the Company utilized to calculate the transitional impact. During the first quarter of fiscal year 2019, the Company elected to record the Global Intangible Low-Taxed Income effects as a period cost. The following table summarizes the tax expense (benefit) related to the Tax Act recognized during the SAB 118 measurement period (in millions): One-time transition tax, inclusive of unrecognized tax benefits (1) Re-measurement of the Company's U.S. deferred tax attributes Change in indefinite reinvestment assertion (2) Other Income tax expense (benefit) Provisional income tax expense (benefit) - recognized in fiscal year 2018 $ 65.9 $ (10.5 ) $ 85.0 $ 1.9 $ 142.3 Income tax expense (benefit) adjustment - recognized in fiscal year 2019 $ (14.9 ) $ 1.6 $ — $ — $ (13.3 ) Income tax expense (benefit) related to the Tax Act through November 30, 2018 $ 51.0 $ (8.9 ) $ 85.0 $ 1.9 $ 129.0 (1) The calculation of the one-time transition tax is based upon estimates of post-1986 earnings and profits, applicable foreign tax credits and relevant limitations, utilization of U.S. federal net operating losses and tax credits and the amount of foreign earnings held in cash and non-cash assets. The adjustment during the first quarter of fiscal year 2019 was primarily related to further analysis of the Company’s utilization of foreign tax credits and applicable limitations. No other material adjustments were made to the net provisional income tax expense recognized in fiscal year 2018 related to the Tax Act under SAB 118. (2) The liability recorded for a change in the indefinite reinvestment assertion on certain earnings from the Company's foreign subsidiaries is primarily associated with foreign withholding taxes that would be incurred upon such future remittances of cash. The Company intends to indefinitely reinvest the remaining earnings from the Company’s foreign subsidiaries for which a deferred tax liability has not already been recorded. The accumulated earnings are the most significant component of the basis differences which are indefinitely reinvested. Effective Income Tax Rate The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended Nine months ended May 31, May 31, May 31, May 31, U.S. federal statutory income tax rate 21.0 % 25.7 % 21.0 % 25.7 % Effective income tax rate 47.0 % 40.0 % 32.4 % 45.6 % The effective tax rate during the three months and nine months ended May 31, 2019, differed from the U.S. federal statutory rate primarily due to: (i) losses in tax jurisdictions with existing valuation allowances; and (ii) tax incentives granted to sites in Brazil, China, Malaysia, Singapore and Vietnam. In addition, the nine months ended May 31, 2019 included adjustments to amounts previously recorded for the Tax Act. The effective tax rate differed from the blended U.S. federal statutory rate during the nine months ended May 31, 2018 primarily due to the Tax Act, including the one-time mandatory deemed repatriation tax and the re-measurement of the Company’s U.S. deferred tax attributes of $30.9 million , partially offset by a reduction in unrecognized tax benefits of $16.1 million for the lapse of statute in a non-U.S. jurisdiction. Other primary drivers for the difference between the effective tax rate and the blended U.S. federal statutory rate during the three months and nine months ended May 31, 2018 are: (i) tax incentives granted to sites in Brazil, China, Malaysia, Singapore and Vietnam; and (ii) losses in tax jurisdictions with existing valuation allowances, including losses from stock-based compensation for the nine months ended May 31, 2018. |
Revenue
Revenue | 9 Months Ended |
May 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Effective September 1, 2018, the Company adopted ASU 2014-09, Revenue Recognition (Topic 606). The new standard is a comprehensive new revenue recognition model that requires the Company to recognize revenue in a manner which depicts the transfer of goods or services to its customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Prior to the adoption of the new standard, the Company recognized substantially all of its revenue from contracts with customers at a point in time, which was generally when the goods were shipped to or received by the customer, title and risk of ownership had passed, the price to the buyer was fixed or determinable and collectability was reasonably assured (net of estimated returns). Under the new standard, the Company will recognize revenue over time for the majority of its contracts with customers which will result in revenue for those customers being recognized earlier than under the previous guidance. Revenue for all other contracts with customers will continue to be recognized at a point in time, similar to recognition prior to the adoption of the standard. Additionally, the new standard impacts the Company’s accounting for certain fulfillment costs, which include upfront costs to prepare for manufacturing activities that are expected to be recovered. Under the new standard, such upfront costs will be recognized as an asset and amortized on a systematic basis consistent with the pattern of the transfer of control of the products or services to which to the asset relates. The Company adopted ASU 2014-09 using the modified retrospective method by applying the guidance to all open contracts upon adoption and recorded a cumulative effect adjustment as of September 1, 2018, net of tax, of $42.6 million . No adjustments have been made to prior periods. Following is a summary of the cumulative effect adjustment (in thousands): Balance as of August 31, 2018 Adjustments due to adoption of ASU 2014-09 Balance as of September 1, 2018 Assets Contract assets (1) $ — $ 591,616 $ 591,616 Inventories, net (1) $ 3,457,706 $ (461,271 ) $ 2,996,435 Prepaid expenses and other current assets (1)(2) $ 1,141,000 $ (37,271 ) $ 1,103,729 Deferred income taxes (1)(2) $ 218,252 $ (8,325 ) $ 209,927 Liabilities Contract liabilities (2)(3) $ — $ 690,142 $ 690,142 Deferred income (2)(3)(4) $ 691,365 $ (691,365 ) $ — Other accrued expenses (3)(4) $ 1,000,979 $ 40,392 $ 1,041,371 Deferred income taxes (1) $ 114,385 $ 2,977 $ 117,362 Equity Retained earnings (1)(2) $ 1,760,097 $ 42,602 $ 1,802,699 (1) Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications. (2) Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications. (3) Included within accrued expenses on the Condensed Consolidated Balance Sheets. (4) Differences included in contract liabilities as of September 1, 2018. Significant Judgments The Company is one of the leading providers of worldwide manufacturing services and solutions. The Company provides comprehensive electronics design, production and product management services to companies in various industries and end markets. The Company derives substantially all of its revenue from production and product management services (collectively referred to as “manufacturing services”), which encompasses the act of producing tangible products that are built to customer specifications, which are then provided to the customer. The Company generally enters into manufacturing service contracts with its customers that provide the framework under which business will be conducted and customer purchase orders will be received for specific quantities and with predominantly fixed pricing. As a result, the Company considers its contract with a customer to be the combination of the manufacturing service contract and the purchase order, or any agreements or other similar documents. The majority of our manufacturing service contracts relate to manufactured products which have no alternative use and for which the Company has an enforceable right to payment for the work completed to date. As a result, revenue is recognized over time when or as the Company transfers control of the promised products or services (known as performance obligations) to its customers. For certain other contracts with customers that do not meet the over time revenue recognition criteria, transfer of control occurs at a point in time which generally occurs upon delivery and transfer of risk and title to the customer. Most of our contracts have a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct and is distinct within the context of the contract. For the majority of customers, performance obligations are satisfied over time based on the continuous transfer of control as manufacturing services are performed and are generally completed in less than one year. The Company also derives revenue to a lesser extent from electronic design services to certain customers. Revenue from electronic design services is generally recognized over time as the services are performed. For the Company’s over time customers, it believes the measure of progress which best depicts the transfer of control is based on costs incurred to date, relative to total estimated cost at completion (i.e., an input method). This method is a faithful depiction of the transfer of goods or services because it results in the recognition of revenue on the basis of our to-date efforts in the satisfaction of a performance obligation relative to the total expected efforts in the satisfaction of the performance obligation. The Company believes that the use of an input method best depicts the transfer of control to the customer, which occurs as we incur costs on our contracts. The transaction price of each performance obligation is generally based upon the contractual stand-alone selling price of the product or service. Certain contracts with customers include variable consideration, such as rebates, discounts, or returns. The Company recognizes estimates of this variable consideration that are not expected to result in a significant revenue reversal in the future, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. Taxes 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 and are excluded from the transaction price. The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the goods. Accordingly, the Company records customer payments of shipping and handling costs as a component of net revenue, and classifies such costs as a component of cost of revenue. The following table presents the effect of the adoption of the new revenue guidance on the Condensed Consolidated Balance Sheets as of May 31, 2019 (in thousands): May 31, 2019 As reported Balance without the adoption of ASU 2014-09 Assets Contract assets (1) $ 899,482 $ — Inventories, net (1) $ 3,159,369 $ 3,901,192 Prepaid expenses and other current assets (1)(2) $ 524,833 $ 523,866 Deferred income taxes (1) $ 202,556 $ 207,752 Liabilities Contract liabilities (2)(3) $ 544,831 $ — Deferred income (2)(3)(4) $ — $ 544,012 Other accrued expenses (3)(4) $ 1,491,623 $ 1,486,706 Deferred income taxes (1) $ 115,370 $ 110,984 Equity Retained earnings (1)(2) $ 1,996,901 $ 1,853,592 (1) Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications. (2) Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications. (3) Included within accrued expenses on the Condensed Consolidated Balance Sheets. (4) Differences included in contract liabilities as of September 1, 2018. The following table presents the effect of the adoption of the new revenue guidance on the Consolidated Statement of Operations for the three months and nine months ended May 31, 2019 (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2019 As reported Balance without the adoption of ASU 2014-09 As reported Balance without the adoption of ASU 2014-09 Net revenue (1) $ 6,135,602 $ 6,072,984 $ 18,708,867 $ 18,302,187 Cost of revenue (2) $ 5,691,803 $ 5,665,654 $ 17,290,544 $ 16,982,850 Operating income $ 140,918 $ 104,449 $ 511,611 $ 412,625 Income tax expense $ 39,046 $ 38,015 $ 113,078 $ 114,798 Net income $ 44,032 $ 8,594 $ 235,713 $ 135,007 (1) Differences primarily relate to the timing of revenue recognition for over-time customers and to the recovery of fulfillment costs. (2) Differences primarily relate to the timing of cost recognition for over-time customers and the recognition of fulfillment costs. The following table presents the Company’s revenues disaggregated by segment (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2019 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 699,825 $ 1,156,213 $ 1,856,038 $ 1,957,349 $ 4,722,696 $ 6,680,045 Over time $ 3,288,664 $ 990,900 $ 4,279,564 $ 9,338,970 $ 2,689,852 $ 12,028,822 Total $ 3,988,489 $ 2,147,113 $ 6,135,602 $ 11,296,319 $ 7,412,548 $ 18,708,867 Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an asset when revenue is recognized prior to invoicing a customer (“contract assets”) while a liability is recognized when a customer pays an invoice prior to the Company transferring control of the goods or services (“contract liabilities”). Amounts recognized as contract assets are generally transferred to receivables in the succeeding quarter due to the short-term nature of the manufacturing cycle. Contract assets are classified separately on the Condensed Consolidated Balance Sheets and transferred to receivables when right to payment becomes unconditional. The Company reviews contract assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable after considering factors such as the age of the balances and the financial stability of the customer. No impairment costs related to contract assets were recognized during the three months and nine months ended May 31, 2019 . Revenue recognized during the nine months ended May 31, 2019 that was included in the contract liability balance as of September 1, 2018 was $350.9 million . Fulfillment Costs The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract or anticipated contracts, ii) are expected to generate or enhance the Company’s resources that will be used to satisfy the performance obligation under the contract, and iii) are expected to be recovered through revenue generated from the contract. Prior to the adoption of the new guidance, unless explicit reimbursement contracts existed, these costs were expensed as incurred. Capitalized fulfillment costs are amortized to cost of revenue as the Company satisfies the related performance obligations under the contract with approximate lives ranging from 1 - 3 years . These costs, which are included in prepaid expenses and other current assets and other assets on the Consolidated Balance Sheets, generally represent upfront costs incurred to prepare for manufacturing activities. The Company assesses the capitalized fulfillment costs for impairment at the end of each reporting period. The Company will recognize an impairment loss to the extent the carrying amount of the capitalized costs exceeds the recoverable amount. Recoverability is assessed by considering the capitalized fulfillment costs in relation to the forecasted profitability of the related manufacturing performance obligations. As of May 31, 2019 , capitalized costs to fulfill are $74.4 million . Amortization of fulfillment costs was $9.8 million and $29.7 million , respectively, for the three months and nine months ended May 31, 2019. No impairments related to fulfillments costs were recognized during the three months and nine months ended May 31, 2019 . Remaining Performance Obligations The Company applied the practical expedient and did not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 9 Months Ended |
May 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Guidance | Recently Adopted Accounting Guidance During fiscal year 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard, which is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The accounting standard became effective for the Company in the first quarter of fiscal year 2019. The Company implemented changes to its processes, policies and internal controls to meet the impact of the new standard and disclosure requirements. Refer to Note 16 – “Revenue” to the Condensed Consolidated Financial Statements for further details. During fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance became effective for the Company in the first quarter of fiscal year 2019, and was applied prospectively by means of a cumulative-effect adjustment to the Consolidated Balance Sheet as of September 1, 2018 to equity investments that existed as of the date of adoption of the standard. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2016, the FASB issued a new accounting standard to address the presentation of certain transactions within the statement of cash flows with the objective of reducing the existing diversity in practice. This standard was adopted on September 1, 2018 on a retrospective basis and resulted in a reclassification of cash flows from operating activities to investing activities in the Company’s Consolidated Statement of Cash Flows for cash receipts related to collections on the deferred purchase price receivable on asset-backed securitization transactions. The increase in cash flow from investing activities and the corresponding decrease to cash flow from operating activities upon adoption of the standard was $96.8 million and $1.6 billion for the nine months ended May 31, 2019 and 2018 , respectively. During fiscal year 2017, the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. This guidance became effective for the Company beginning in the first quarter of fiscal year 2019. This guidance was adopted on a modified retrospective basis and an immaterial cumulative-effect adjustment was recorded, which reduced retained earnings as of September 1, 2018. During fiscal year 2017, the FASB issued a new accounting standard which clarifies the scope of accounting for asset derecognition and adds further guidance for recognizing gains and losses from the transfer of non-financial assets in contracts with non-customers. This guidance became effective for the Company beginning in the first quarter of fiscal year 2019 coincident with the new revenue recognition guidance. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2017, the FASB issued a new accounting standard to improve the presentation of net periodic pension benefit cost. The Company adopted the standard on September 1, 2018 on a retrospective basis which results in reclassifications for the service cost component of net periodic benefit cost from selling, general and administrative expense to cost of revenue and for the other components from selling, general and administrative expense to other expense. Prior periods have not been reclassified due to immateriality. During the second quarter of fiscal year 2018, the Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company applied SAB 118 and provided required disclosures in Note 15 - “Income Taxes.” Recently Issued Accounting Guidance During fiscal year 2016, the FASB issued a new accounting standard revising lease accounting. The new guidance requires organizations to recognize lease assets and lease liabilities on the Consolidated Balance Sheet and disclose key information regarding leasing arrangements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early application of the new standard is permitted and the standard must be adopted using a modified retrospective approach. The Company intends to elect the package of practical expedients offered, which allows entities to not reassess: i) whether any contracts prior to the adoption date are or contain leases, ii) lease classification, and iii) whether capitalized initial direct costs continue to meet the definition of initial direct costs under the new guidance. In preparation for the adoption, the Company is implementing a new lease accounting system. While the Company is currently evaluating accounting policy elections and assessing overall impacts this new standard will have on its Consolidated Financial Statements, the new guidance is expected to have a material impact on the consolidated balance sheets upon adoption, primarily due to the recognition of right-of-use assets and operating lease liabilities. During fiscal year 2016, the FASB issued an accounting standard, which replaces the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 and early adoption is permitted beginning in the first quarter of fiscal year 2020. This guidance must be applied using a modified retrospective or prospective transition method, depending on the area covered by this accounting standard. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2017, the FASB issued a new accounting standard to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities by simplifying the application of hedge accounting and improving the related disclosures in its financial statements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The guidance must be applied using a modified retrospective approach. The adoption of this standard is not expected to have a material impact on the Company’s Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2018, the FASB issued a new accounting standard which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. Recently issued accounting guidance not discussed above is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Earnings Per Share and Divide_2
Earnings Per Share and Dividends (Tables) | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Dilutive shares outstanding not included in the computation of EPS | Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Restricted stock units 1,345 2,129 1,338 2,136 |
Cash dividends declared to common stockholders | The following table sets forth cash dividends declared by the Company to common stockholders during the nine months ended May 31, 2019 and 2018 (in thousands, except for per share data): Dividend Declaration Date Dividend per Share Total of Cash Dividends Declared Date of Record for Dividend Payment Dividend Cash Payment Date Fiscal Year 2019: October 18, 2018 $ 0.08 $ 13,226 November 15, 2018 December 3, 2018 January 24, 2019 $ 0.08 $ 12,706 February 15, 2019 March 1, 2019 April 18, 2019 $ 0.08 $ 12,681 May 15, 2019 June 3, 2019 Fiscal Year 2018: October 19, 2017 $ 0.08 $ 14,588 November 15, 2017 December 1, 2017 January 25, 2018 $ 0.08 $ 14,272 February 15, 2018 March 1, 2018 April 19, 2018 $ 0.08 $ 13,991 May 15, 2018 June 1, 2018 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): May 31, 2019 August 31, 2018 Raw materials $ 2,388,902 $ 2,070,569 Work in process 501,168 788,742 Finished goods 333,224 659,335 Reserve for excess and obsolete inventory (63,925 ) (60,940 ) Inventories, net $ 3,159,369 $ 3,457,706 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
May 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): May 31, 2019 August 31, 2018 Contract liabilities $ 544,831 $ — Deferred income — 691,365 Accrued compensation and employee benefits 549,598 570,400 Other accrued expenses 1,491,623 1,000,979 Accrued expenses $ 2,586,052 $ 2,262,744 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
May 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Recognized stock-based compensation expense within selling, general and administrative expense | The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Restricted stock units and stock appreciation rights $ 12,592 $ 13,457 $ 41,247 $ 69,916 Employee stock purchase plan 1,914 1,581 6,205 5,368 Other (1) — — — 7,538 Total $ 14,506 $ 15,038 $ 47,452 $ 82,822 (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. |
Share-based compensation information | The following represents the stock-based compensation information for the period indicated (in thousands): Nine months ended May 31, 2019 Unrecognized stock-based compensation expense—restricted stock units $ 53,987 Remaining weighted-average period for restricted stock units expense 1.4 years |
Schedule of common stock shares outstanding | The following represents the common stock outstanding for the periods indicated: Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Common stock outstanding: Beginning balances 152,878,329 172,063,230 164,588,172 177,727,653 Shares issued upon exercise of stock options — — 11,348 29,688 Shares issued under employee stock purchase plan (215 ) 261 692,110 575,777 Vesting of restricted stock 73,095 24,232 1,979,022 2,718,379 Purchases of treasury stock under employee stock plans (24,322 ) (6,567 ) (489,158 ) (790,598 ) Treasury shares purchased (1) — (3,281,412 ) (13,854,607 ) (11,461,155 ) Ending balances 152,926,887 168,799,744 152,926,887 168,799,744 (1) In June 2018, the Company’s Board of Directors authorized the repurchase of up to $350.0 million of the Company’s common stock (the “2018 Share Repurchase Program”). The 2018 Share Repurchase Program expires August 31, 2019. As of May 31, 2019 , the total amount authorized by the Board of Directors had been repurchased. |
Concentration of Risk and Seg_2
Concentration of Risk and Segment Data (Tables) | 9 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of revenue from segments to consolidated | The following table sets forth operating segment information (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Net revenue EMS $ 3,988,489 $ 3,161,626 $ 11,296,319 $ 8,894,174 DMS 2,147,113 2,275,326 7,412,548 7,429,411 $ 6,135,602 $ 5,436,952 $ 18,708,867 $ 16,323,585 Segment income and reconciliation of income before income tax EMS $ 130,869 $ 121,563 $ 303,618 $ 302,556 DMS 54,896 28,499 326,866 253,322 Total segment income $ 185,765 $ 150,062 $ 630,484 $ 555,878 Reconciling items: Amortization of intangibles (7,610 ) (10,040 ) (23,033 ) (29,909 ) Stock-based compensation expense and related charges (14,506 ) (15,038 ) (47,452 ) (82,822 ) Restructuring and related charges (9,340 ) (12,647 ) (16,182 ) (29,462 ) Distressed customer charge — — — (14,706 ) Business interruption and impairment charges, net (1) — 634 2,860 (10,722 ) Acquisition and integration charges (13,391 ) — (35,066 ) — Other expense (14,084 ) (10,139 ) (39,391 ) (26,506 ) Interest income 6,758 4,499 15,897 13,323 Interest expense (50,514 ) (36,178 ) (139,326 ) (110,220 ) Income before income tax $ 83,078 $ 71,153 $ 348,791 $ 264,854 (1) Charges, net of insurance proceeds of $5.0 million for the three months ended May 31, 2018 , and $2.9 million and $21.4 million for the nine months ended May 31, 2019 and 2018 , respectively, relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted our operations in Cayey, Puerto Rico. |
Reconciliation of operating profit (loss) from segments to consolidated | The following table sets forth operating segment information (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Net revenue EMS $ 3,988,489 $ 3,161,626 $ 11,296,319 $ 8,894,174 DMS 2,147,113 2,275,326 7,412,548 7,429,411 $ 6,135,602 $ 5,436,952 $ 18,708,867 $ 16,323,585 Segment income and reconciliation of income before income tax EMS $ 130,869 $ 121,563 $ 303,618 $ 302,556 DMS 54,896 28,499 326,866 253,322 Total segment income $ 185,765 $ 150,062 $ 630,484 $ 555,878 Reconciling items: Amortization of intangibles (7,610 ) (10,040 ) (23,033 ) (29,909 ) Stock-based compensation expense and related charges (14,506 ) (15,038 ) (47,452 ) (82,822 ) Restructuring and related charges (9,340 ) (12,647 ) (16,182 ) (29,462 ) Distressed customer charge — — — (14,706 ) Business interruption and impairment charges, net (1) — 634 2,860 (10,722 ) Acquisition and integration charges (13,391 ) — (35,066 ) — Other expense (14,084 ) (10,139 ) (39,391 ) (26,506 ) Interest income 6,758 4,499 15,897 13,323 Interest expense (50,514 ) (36,178 ) (139,326 ) (110,220 ) Income before income tax $ 83,078 $ 71,153 $ 348,791 $ 264,854 (1) Charges, net of insurance proceeds of $5.0 million for the three months ended May 31, 2018 , and $2.9 million and $21.4 million for the nine months ended May 31, 2019 and 2018 , respectively, relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted our operations in Cayey, Puerto Rico. |
Schedule of foreign source revenue | The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Foreign source revenue 86.5 % 91.2 % 89.2 % 91.8 % |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 9 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes payable and long-term debt | Notes payable and long-term debt outstanding as of May 31, 2019 and August 31, 2018 are summarized below (in thousands): Maturity Date May 31, August 31, 5.625% Senior Notes Dec 15, 2020 $ 398,663 $ 397,995 4.700% Senior Notes Sep 15, 2022 497,841 497,350 4.900% Senior Notes Jul 14, 2023 298,996 298,814 3.950% Senior Notes Jan 12, 2028 494,670 494,208 Borrowings under credit facilities (1) Nov 8, 2022 and Aug 24, 2020 429,648 — Borrowings under loans Nov 8, 2022 and Aug 24, 2020 811,854 830,332 Total notes payable and long-term debt 2,931,672 2,518,699 Less current installments of notes payable and long-term debt 454,830 25,197 Notes payable and long-term debt, less current installments $ 2,476,842 $ 2,493,502 (1) As of May 31, 2019 , the Company has $2.0 billion in available unused borrowing capacity under its revolving credit facilities. |
Trade Accounts Receivable Sec_2
Trade Accounts Receivable Securitization and Sale Programs (Tables) | 9 Months Ended |
May 31, 2019 | |
Transfers and Servicing [Abstract] | |
Asset-backed securitization programs and key terms | Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of (1) Expiration North American $ 390.0 November 22, 2021 Foreign $ 400.0 September 30, 2021 (1) Maximum amount available at any one time. |
Asset-backed securitization programs amounts recognized | In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 (4) May 31, 2018 Trade accounts receivable sold $ 1,036 $ 1,913 $ 2,864 $ 6,362 Cash proceeds received (1) $ 1,029 $ 1,379 $ 2,845 $ 5,821 Pre-tax losses on sale of receivables (2) $ 7 $ 4 $ 19 $ 11 Deferred purchase price receivables as of May 31 (3) $ — $ 530 $ — $ 530 (1) For the three months and nine months ended May 31, 2019 and 2018 , the amount primarily represented proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. (3) Recorded initially at fair value as prepaid expenses and other current assets on the Condensed 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. (4) Excludes $650.3 million of trade accounts receivable sold, $488.1 million of cash and $13.9 million of net cash received prior to the amendment of the foreign asset-backed securitization program and under the previous North American asset-backed securitization program. |
Trade accounts receivable sale programs key terms | The following is a summary of the trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase, at a discount, on an ongoing basis: Program Maximum (1) Type of Expiration A $ 800.0 Uncommitted August 31, 2022 (2) B $ 150.0 Uncommitted November 30, 2019 (3) C 800.0 CNY Uncommitted June 30, 2020 D $ 100.0 Uncommitted May 4, 2023 (4) E $ 50.0 Uncommitted August 25, 2019 F $ 150.0 Uncommitted January 25, 2020 (5) G $ 50.0 Uncommitted February 23, 2023 (2) H $ 100.0 Uncommitted August 10, 2019 (6) I $ 100.0 Uncommitted July 21, 2019 (7) J $ 740.0 Uncommitted February 28, 2020 (8) K $ 110.0 Uncommitted April 11, 2020 (9) (1) Maximum amount available at any one time. (2) Any party may elect to terminate the agreement upon 15 days prior notice. (3) The program will automatically extend for one year at each expiration date unless either party provides 10 days notice of termination. (4) Any party may elect to terminate the agreement upon 30 days prior notice. (5) The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination. (6) The program will be automatically extended through August 10, 2023 unless either party provides 30 days notice of termination. (7) The program will be automatically extended through August 21, 2023 unless either party provides 30 days notice of termination. (8) The program will be automatically extended each year through February 28, 2024 unless either party provides 90 days notice of termination. (9) The program will be automatically extended each year through April 11, 2025 unless either party provides 30 days notice of termination. |
Trade accounts receivable sale programs amounts recognized | In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Trade accounts receivable sold $ 1,548 $ 1,301 $ 5,101 $ 4,035 Cash proceeds received $ 1,541 $ 1,296 $ 5,079 $ 4,025 Pre-tax losses on sale of receivables (1) $ 7 $ 5 $ 22 $ 10 (1) Recorded to other expense within the Condensed Consolidated Statement of Operations. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Summary of changes in accumulated other comprehensive income | The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component for the nine months ended May 31, 2019 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities Total Balance as of August 31, 2018 $ 7,431 $ 8,116 $ (25,021 ) $ (643 ) $ (9,282 ) (19,399 ) Other comprehensive (loss) income before reclassifications (5,636 ) (36,262 ) 103 — (4,769 ) (46,564 ) Amounts reclassified from AOCI — 15,958 — — — 15,958 Other comprehensive (loss) income (1) (5,636 ) (20,304 ) 103 — (4,769 ) (30,606 ) Balance as of May 31, 2019 $ 1,795 $ (12,188 ) $ (24,918 ) $ (643 ) $ (14,051 ) $ (50,005 ) (1) Amounts are net of tax, which are immaterial. |
Reclassification from AOCI | The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in thousands): Three months ended Nine months ended Comprehensive Income Components Financial Statement Line Item May 31, May 31, May 31, May 31, Unrealized losses (gains) on derivative instruments: Foreign exchange contracts Cost of revenue $ (1,298 ) $ (10,459 ) $ 17,248 $ (20,519 ) Interest rate contracts Interest expense (430 ) (3,431 ) (1,290 ) (8,455 ) Total amounts reclassified from AOCI (1)(2) $ (1,728 ) $ (13,890 ) $ 15,958 $ (28,974 ) (1) The Company expects to reclassify $0.5 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (2) Amounts are net of tax, which are immaterial for the three months and nine months ended May 31, 2019 . The amounts for the three months and nine months ended May 31, 2018 , include a reduction to income tax expense related to derivative instruments of $3.0 million and $10.0 million , respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
May 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments located on consolidated balance sheets | The following table presents the fair values of the Company’s derivative instruments recorded in the Condensed Consolidated Balance Sheets utilized for foreign currency risk management purposes as of May 31, 2019 and August 31, 2018 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value as of Fair Value as of Balance Sheet Location Fair Value as of Fair Value as of Derivatives designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 644 $ 225 Accrued expenses $ 3,853 $ 13,364 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 5,216 $ 10,125 Accrued expenses $ 26,851 $ 46,171 (1) Classified as Level 2 in the fair-value hierarchy. |
Net gains from forward contracts recorded in consolidated statements of operations | The following table presents the net gains from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in thousands): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of (Loss) Gain on Derivatives Recognized in Net Income Amount of (Loss) Gain Recognized in Net Income on Derivatives Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Forward foreign exchange contracts (1) Cost of revenue $ (33,476 ) $ (19,785 ) $ 9,332 $ 25,959 (1) During the three months ended May 31, 2019 and 2018, the Company recognized $28.3 million and $23.1 million , respectively, of foreign currency gains in cost of revenue, which are offset by the losses from the forward foreign exchange contracts. During the nine months ended May 31, 2019 and 2018, the Company recognized $24.3 million and $12.5 million , respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the interest rate swaps outstanding as of May 31, 2019, which have been designated as hedging instruments and accounted for as cash flow hedges: Interest Rate Swap Summary Hedged Interest Rate Payments Aggregate Notional Amount (in millions) Effective Date Expiration Date (1) Forward Interest Rate Swap Anticipated Debt Issuance Fixed $ 200.0 October 22, 2018 December 15, 2020 (2) Interest Rate Swaps (3) 2017 Term Loan Facility Variable $ 200.0 September 30, 2016 June 30, 2019 2017 Term Loan Facility Variable $ 200.0 October 11, 2018 August 31, 2020 2018 Term Loan Facility Variable $ 350.0 August 24, 2018 August 24, 2020 (1) The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap and at each settlement date for the interest rate swaps. (2) If the anticipated debt issuance occurs before December 15, 2020, the contracts will be terminated simultaneously with the debt issuance. (3) The Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receives variable rate interest payments based on the one-month LIBOR for the $500.0 million Term Loan Facility, expiring on November 8, 2022 (the “2017 Term Loan Facility”), for which $400.0 million is hedged, and based on the three-month LIBOR for the $350.0 million Term Loan Facility, which expires on August 24, 2020 (the “2018 Term Loan Facility”). |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 9 Months Ended |
May 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Following is a summary of the Company’s restructuring and related charges (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Employee severance and benefit costs $ 6,513 $ 5,058 $ 15,460 $ 11,048 Lease costs (50 ) 1,589 (41 ) 1,596 Asset write-off costs (343 ) 5,575 (3,555 ) 14,838 Other costs 3,220 425 4,318 1,980 Total restructuring and related charges (1) $ 9,340 $ 12,647 $ 16,182 $ 29,462 (1) Includes $7.6 million and $4.6 million recorded in the EMS segment, $0.0 million and $5.8 million recorded in the DMS segment and $1.7 million and $2.2 million of non-allocated charges for the three months ended May 31, 2019 and 2018 , respectively. Includes $12.3 million and $12.6 million recorded in the EMS segment, $2.1 million and $13.8 million recorded to the DMS segment and $1.8 million and $3.1 million of non-allocated charges for the nine months ended May 31, 2019 and 2018 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. |
Liability activity, primarily associated with 2017 restructuring plan | The table below summarizes the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands): Employee Severance and Benefit Costs Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2018 $ 18,131 $ 2,684 $ — $ 522 $ 21,337 Restructuring related charges 15,460 (41 ) (3,555 ) 1,469 13,333 Asset write-off charge and other non-cash activity (331 ) — 3,555 (14 ) 3,210 Cash payments (23,811 ) (450 ) — (1,275 ) (25,536 ) Balance as of May 31, 2019 $ 9,449 $ 2,193 $ — $ 702 $ 12,344 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Act Impact | The following table summarizes the tax expense (benefit) related to the Tax Act recognized during the SAB 118 measurement period (in millions): One-time transition tax, inclusive of unrecognized tax benefits (1) Re-measurement of the Company's U.S. deferred tax attributes Change in indefinite reinvestment assertion (2) Other Income tax expense (benefit) Provisional income tax expense (benefit) - recognized in fiscal year 2018 $ 65.9 $ (10.5 ) $ 85.0 $ 1.9 $ 142.3 Income tax expense (benefit) adjustment - recognized in fiscal year 2019 $ (14.9 ) $ 1.6 $ — $ — $ (13.3 ) Income tax expense (benefit) related to the Tax Act through November 30, 2018 $ 51.0 $ (8.9 ) $ 85.0 $ 1.9 $ 129.0 (1) The calculation of the one-time transition tax is based upon estimates of post-1986 earnings and profits, applicable foreign tax credits and relevant limitations, utilization of U.S. federal net operating losses and tax credits and the amount of foreign earnings held in cash and non-cash assets. The adjustment during the first quarter of fiscal year 2019 was primarily related to further analysis of the Company’s utilization of foreign tax credits and applicable limitations. No other material adjustments were made to the net provisional income tax expense recognized in fiscal year 2018 related to the Tax Act under SAB 118. (2) The liability recorded for a change in the indefinite reinvestment assertion on certain earnings from the Company's foreign subsidiaries is primarily associated with foreign withholding taxes that would be incurred upon such future remittances of cash. The Company intends to indefinitely reinvest the remaining earnings from the Company’s foreign subsidiaries for which a deferred tax liability has not already been recorded. The accumulated earnings are the most significant component of the basis differences which are indefinitely reinvested. |
Schedule of Effective Income Tax Rate Reconciliation | The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended Nine months ended May 31, May 31, May 31, May 31, U.S. federal statutory income tax rate 21.0 % 25.7 % 21.0 % 25.7 % Effective income tax rate 47.0 % 40.0 % 32.4 % 45.6 % |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
May 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Effect of adoption of new revenue guidance | Following is a summary of the cumulative effect adjustment (in thousands): Balance as of August 31, 2018 Adjustments due to adoption of ASU 2014-09 Balance as of September 1, 2018 Assets Contract assets (1) $ — $ 591,616 $ 591,616 Inventories, net (1) $ 3,457,706 $ (461,271 ) $ 2,996,435 Prepaid expenses and other current assets (1)(2) $ 1,141,000 $ (37,271 ) $ 1,103,729 Deferred income taxes (1)(2) $ 218,252 $ (8,325 ) $ 209,927 Liabilities Contract liabilities (2)(3) $ — $ 690,142 $ 690,142 Deferred income (2)(3)(4) $ 691,365 $ (691,365 ) $ — Other accrued expenses (3)(4) $ 1,000,979 $ 40,392 $ 1,041,371 Deferred income taxes (1) $ 114,385 $ 2,977 $ 117,362 Equity Retained earnings (1)(2) $ 1,760,097 $ 42,602 $ 1,802,699 (1) Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications. (2) Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications. (3) Included within accrued expenses on the Condensed Consolidated Balance Sheets. (4) Differences included in contract liabilities as of September 1, 2018. The following table presents the effect of the adoption of the new revenue guidance on the Condensed Consolidated Balance Sheets as of May 31, 2019 (in thousands): May 31, 2019 As reported Balance without the adoption of ASU 2014-09 Assets Contract assets (1) $ 899,482 $ — Inventories, net (1) $ 3,159,369 $ 3,901,192 Prepaid expenses and other current assets (1)(2) $ 524,833 $ 523,866 Deferred income taxes (1) $ 202,556 $ 207,752 Liabilities Contract liabilities (2)(3) $ 544,831 $ — Deferred income (2)(3)(4) $ — $ 544,012 Other accrued expenses (3)(4) $ 1,491,623 $ 1,486,706 Deferred income taxes (1) $ 115,370 $ 110,984 Equity Retained earnings (1)(2) $ 1,996,901 $ 1,853,592 (1) Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications. (2) Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications. (3) Included within accrued expenses on the Condensed Consolidated Balance Sheets. (4) Differences included in contract liabilities as of September 1, 2018. The following table presents the effect of the adoption of the new revenue guidance on the Consolidated Statement of Operations for the three months and nine months ended May 31, 2019 (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2019 As reported Balance without the adoption of ASU 2014-09 As reported Balance without the adoption of ASU 2014-09 Net revenue (1) $ 6,135,602 $ 6,072,984 $ 18,708,867 $ 18,302,187 Cost of revenue (2) $ 5,691,803 $ 5,665,654 $ 17,290,544 $ 16,982,850 Operating income $ 140,918 $ 104,449 $ 511,611 $ 412,625 Income tax expense $ 39,046 $ 38,015 $ 113,078 $ 114,798 Net income $ 44,032 $ 8,594 $ 235,713 $ 135,007 (1) Differences primarily relate to the timing of revenue recognition for over-time customers and to the recovery of fulfillment costs. (2) Differences primarily relate to the timing of cost recognition for over-time customers and the recognition of fulfillment costs. |
Revenues disaggregated by segment | The following table presents the Company’s revenues disaggregated by segment (in thousands): Three months ended Nine months ended May 31, 2019 May 31, 2019 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 699,825 $ 1,156,213 $ 1,856,038 $ 1,957,349 $ 4,722,696 $ 6,680,045 Over time $ 3,288,664 $ 990,900 $ 4,279,564 $ 9,338,970 $ 2,689,852 $ 12,028,822 Total $ 3,988,489 $ 2,147,113 $ 6,135,602 $ 11,296,319 $ 7,412,548 $ 18,708,867 |
Earnings Per Share and Divide_3
Earnings Per Share and Dividends - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of diluted earnings per share | 1,345 | 2,129 | 1,338 | 2,136 |
Earnings Per Share and Divide_4
Earnings Per Share and Dividends - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2019 | May 31, 2018 |
Quarter One | ||
Dividends Payable [Line Items] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 13,226 | $ 14,588 |
Quarter Two [Member] | ||
Dividends Payable [Line Items] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 12,706 | $ 14,272 |
Quarter Three [Member] | ||
Dividends Payable [Line Items] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 12,681 | $ 13,991 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 2,388,902 | $ 2,070,569 | |
Work in process | 501,168 | 788,742 | |
Finished goods | 333,224 | 659,335 | |
Reserve for excess and obsolete inventory | (63,925) | (60,940) | |
Inventories, net | $ 3,159,369 | $ 2,996,435 | $ 3,457,706 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Accrued Liabilities, Current [Abstract] | |||
Contract liabilities | $ 544,831 | $ 690,142 | |
Deferred income | 0 | 0 | $ 691,365 |
Accrued compensation and employee benefits | 549,598 | 570,400 | |
Other accrued expenses | 1,491,623 | $ 1,041,371 | 1,000,979 |
Accrued expenses | $ 2,586,052 | $ 2,262,744 |
Stock-Based Compensation and _2
Stock-Based Compensation and Shares Repurchases - Recognized Stock-Based Compensation Expense within Selling, General and Administrative Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Restricted stock units and stock appreciation rights | $ 12,592 | $ 13,457 | $ 41,247 | $ 69,916 |
Employee stock purchase plan | 1,914 | 1,581 | 6,205 | 5,368 |
Other | 0 | 0 | 0 | 7,538 |
Total | $ 14,506 | $ 15,038 | $ 47,452 | $ 82,822 |
Stock-Based Compensation and _3
Stock-Based Compensation and Shares Repurchases - Narrative (Details) - USD ($) | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | Jun. 30, 2018 | |
2018 Share Repurchase Program | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Share repurchase program, amount authorized (up to) | $ 350,000,000 | ||
Time-based restricted stock units | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Award vesting period | 3 years | ||
Restricted stock units awarded (in shares) | 1,600,000 | 1,400,000 | |
Performance-based restricted stock units | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Award vesting period | 3 years | ||
Restricted stock units awarded (in shares) | 400,000 | 400,000 | |
Performance-based restricted stock units | Maximum | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Award vesting percentage | 150.00% | ||
Market based restricted stock units | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Award vesting period | 3 years | ||
Award vesting percentage | 200.00% | ||
Restricted stock units awarded (in shares) | 400,000 | 400,000 | |
Plan 2011 | |||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | |||
Shares available for issuance under share based compensation plan | 12,021,729 |
Stock-Based Compensation and _4
Stock-Based Compensation and Shares Repurchases - Stock-Based Compensation Information (Details) $ in Thousands | 9 Months Ended |
May 31, 2019USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Unrecognized stock-based compensation expense—restricted stock units | $ 53,987 |
Remaining weighted-average period for restricted stock units expense | 1 year 5 months |
Stock-Based Compensation and _5
Stock-Based Compensation and Shares Repurchases - Common Stock Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 164,588,172 | |||
Ending Balance (in shares) | 152,926,887 | 152,926,887 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 152,878,329 | 172,063,230 | 164,588,172 | 177,727,653 |
Shares issued upon exercise of stock options (in shares) | 0 | 0 | 11,348 | 29,688 |
Shares issued under employee stock purchase plan (in shares) | (215) | 261 | 692,110 | 575,777 |
Vesting of restricted stock (in shares) | 73,095 | 24,232 | 1,979,022 | 2,718,379 |
Purchases of treasury stock under employee stock plans (in shares) | (24,322) | (6,567) | (489,158) | (790,598) |
Treasury shares purchased (in shares) | 0 | (3,281,412) | (13,854,607) | (11,461,155) |
Ending Balance (in shares) | 152,926,887 | 168,799,744 | 152,926,887 | 168,799,744 |
Concentration of Risk and Seg_3
Concentration of Risk and Segment Data - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019Country | May 31, 2018 | May 31, 2019CustomerCountry | May 31, 2018 | |
Revenue, Major Customer [Line Items] | ||||
Number of operating countries | Country | 29 | 29 | ||
Net Revenue | Geographic Concentration Risk | Foreign | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 86.50% | 91.20% | 89.20% | 91.80% |
Five Largest Customers That Account for a Percentage of Net Revenue | Net Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Top customers that comprise revenue | 5 | |||
Concentration risk, percentage | 43.00% | |||
Group of Customers That Account for 90% of Net Revenue | Net Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Top customers that comprise revenue | 82 | |||
Concentration risk, percentage | 90.00% |
Concentration of Risk and Seg_4
Concentration of Risk and Segment Data - Segment Revenue and Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | $ 6,135,602 | $ 5,436,952 | $ 18,708,867 | $ 16,323,585 |
Reconciling items: | ||||
Amortization of intangibles | (7,610) | (10,040) | (23,033) | (29,909) |
Stock-based compensation expense and related charges | (14,506) | (15,038) | (47,452) | (82,822) |
Restructuring and related charges | (9,340) | (12,647) | (16,182) | (29,462) |
Other expense | (14,084) | (10,139) | (39,391) | (26,506) |
Interest income | 6,758 | 4,499 | 15,897 | 13,323 |
Interest expense | (50,514) | (36,178) | (139,326) | (110,220) |
Income before income tax | 83,078 | 71,153 | 348,791 | 264,854 |
Cayey, Puerto Rico | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Insurance recoveries | 5,000 | 2,900 | 21,400 | |
EMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 3,988,489 | 11,296,319 | ||
Reconciling items: | ||||
Restructuring and related charges | (7,600) | (4,600) | (12,300) | (12,600) |
DMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 2,147,113 | 7,412,548 | ||
Reconciling items: | ||||
Restructuring and related charges | 0 | (5,800) | (2,100) | (13,800) |
Operating Segments | ||||
Reconciling items: | ||||
Income before income tax | 185,765 | 150,062 | 630,484 | 555,878 |
Operating Segments | EMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 3,988,489 | 3,161,626 | 11,296,319 | 8,894,174 |
Reconciling items: | ||||
Income before income tax | 130,869 | 121,563 | 303,618 | 302,556 |
Operating Segments | DMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net revenue | 2,147,113 | 2,275,326 | 7,412,548 | 7,429,411 |
Reconciling items: | ||||
Income before income tax | 54,896 | 28,499 | 326,866 | 253,322 |
Segment Reconciling Items | ||||
Reconciling items: | ||||
Distressed customer charge | 0 | 0 | 0 | (14,706) |
Stock-based compensation expense and related charges | (14,506) | (15,038) | (47,452) | (82,822) |
Acquisition and integration charges | (13,391) | 0 | (35,066) | 0 |
Business interruption and impairment charges, net(1) | $ 0 | $ 634 | $ 2,860 | $ (10,722) |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Amounts Outstanding (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,931,672 | $ 2,518,699 |
Less current installments of notes payable and long-term debt | 454,830 | 25,197 |
Notes payable and long-term debt, less current installments | $ 2,476,842 | 2,493,502 |
Senior Notes | 5.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 5.625% | |
Long-term debt | $ 398,663 | 397,995 |
Senior Notes | 4.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 4.70% | |
Long-term debt | $ 497,841 | 497,350 |
Senior Notes | 4.900% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 4.90% | |
Long-term debt | $ 298,996 | 298,814 |
Senior Notes | 3.950% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 3.95% | |
Long-term debt | $ 494,670 | 494,208 |
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 429,648 | 0 |
Unused borrowing capacity | 2,000,000 | |
Term Loan Facility | Line of Credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 811,854 | $ 830,332 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Narrative (Details) - Senior Notes $ in Millions | May 31, 2019USD ($) |
4.900% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 4.90% |
Estimated fair value of senior notes | $ 311.2 |
5.625% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 5.625% |
Estimated fair value of senior notes | $ 416.5 |
4.700% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 4.70% |
Estimated fair value of senior notes | $ 517.9 |
3.950% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 3.95% |
Estimated fair value of senior notes | $ 480.1 |
Trade Accounts Receivable Sec_3
Trade Accounts Receivable Securitization and Sale Programs - Narrative (Details) - USD ($) | Oct. 01, 2018 | May 31, 2019 | May 31, 2018 | Oct. 09, 2018 |
Transfers and Servicing [Abstract] | ||||
Beneficial interest obtained in exchange for securitized receivables | $ 162,200,000 | $ 1,500,000,000 | ||
North America | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Receivables pledged as collateral | 204,400,000 | |||
Asset-backed Securities | Foreign | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Total accounts receivable sold, outstanding | $ 734,200,000 | |||
Deferred purchase price receivables | 335,500,000 | |||
Cash due upon the settlement of securitization transactions | 398,700,000 | |||
Cash paid upon settlement of securitization transactions | 25,200,000 | |||
Trade accounts receivable sold | $ 373,500,000 | |||
Guarantee liability | $ 0 | |||
Asset-backed Securities | North America | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||||
Total accounts receivable sold, outstanding | $ 500,000,000 | |||
Deferred purchase price receivables | 300,000,000 | |||
Cash due upon the settlement of securitization transactions | $ 200,000,000 |
Trade Accounts Receivable Sec_4
Trade Accounts Receivable Securitization and Sale Programs - Asset-Backed Securitization Programs and Key Terms (Details) $ in Millions | May 31, 2019USD ($) |
North American | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 390 |
Foreign | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 400 |
Trade Accounts Receivable Sec_5
Trade Accounts Receivable Securitization and Sale Programs - Asset-Backed Securitization Programs Amounts Recognized (Details) - Asset-Backed Securitization Programs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | Nov. 26, 2018 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Nov. 30, 2018 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||||
Trade accounts receivable sold | $ 1,036 | $ 650.3 | $ 1,913 | $ 2,864 | $ 6,362 | |
Cash proceeds received | 1,029 | $ 488.1 | 1,379 | 2,845 | 5,821 | |
Pre-tax losses on sale of receivables | 7 | 4 | 19 | 11 | ||
Deferred purchase price receivables | $ 0 | $ 530 | $ 0 | $ 530 | ||
Net cash received in securitization transactions | $ 13.9 |
Trade Accounts Receivable Sec_6
Trade Accounts Receivable Securitization and Sale Programs - Trade Accounts Receivable Sale Programs Key Terms (Details) | 9 Months Ended | |||
May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019CNY (¥) | May 31, 2019USD ($) | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Beneficial interest obtained in exchange for securitized receivables | $ 162,200,000 | $ 1,500,000,000 | ||
A | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | $ 800,000,000 | |||
Notice period to cancel receivable sale agreements | 15 days | |||
B | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 150,000,000 | |||
Notice period to cancel receivable sale agreements | 10 days | |||
C | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | ¥ | ¥ 800,000,000 | |||
D | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 100,000,000 | |||
Notice period to cancel receivable sale agreements | 30 days | |||
E | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 50,000,000 | |||
F | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 150,000,000 | |||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days | |||
G | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 50,000,000 | |||
Notice period to cancel receivable sale agreements | 15 days | |||
H | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 100,000,000 | |||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days | |||
I | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 100,000,000 | |||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days | |||
J | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | 740,000,000 | |||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 90 days | |||
K | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum Amount of Net Cash Proceeds | $ 110,000,000 | |||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days |
Trade Accounts Receivable Sec_7
Trade Accounts Receivable Securitization and Sale Programs - Trade Accounts Receivable Sale Programs Amounts Recognized (Details) - Trade Accounts Receivable Sale Programs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 1,548 | $ 1,301 | $ 5,101 | $ 4,035 |
Cash proceeds received | 1,541 | 1,296 | 5,079 | 4,025 |
Pre-tax losses on sale of receivables | $ 7 | $ 5 | $ 22 | $ 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Change in AOCI, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 1,858,852 | $ 2,294,346 | $ 1,963,380 | $ 2,368,344 |
Other comprehensive (loss) income before reclassifications | (46,564) | |||
Amounts reclassified from AOCI | 15,958 | |||
Total other comprehensive loss | (36,752) | (60,676) | (30,606) | (28,688) |
Ending Balance | 1,867,200 | 2,185,558 | 1,867,200 | 2,185,558 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 7,431 | |||
Other comprehensive (loss) income before reclassifications | (5,636) | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive loss | (5,636) | |||
Ending Balance | 1,795 | 1,795 | ||
Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 8,116 | |||
Other comprehensive (loss) income before reclassifications | (36,262) | |||
Amounts reclassified from AOCI | 15,958 | |||
Total other comprehensive loss | (20,304) | |||
Ending Balance | (12,188) | (12,188) | ||
Actuarial (Loss) Gain | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (25,021) | |||
Other comprehensive (loss) income before reclassifications | 103 | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive loss | 103 | |||
Ending Balance | (24,918) | (24,918) | ||
Prior Service Cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (643) | |||
Other comprehensive (loss) income before reclassifications | 0 | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive loss | 0 | |||
Ending Balance | (643) | (643) | ||
Available for Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (9,282) | |||
Other comprehensive (loss) income before reclassifications | (4,769) | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive loss | (4,769) | |||
Ending Balance | (14,051) | (14,051) | ||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (13,253) | 86,608 | (19,399) | 54,620 |
Ending Balance | $ (50,005) | $ 25,932 | $ (50,005) | $ 25,932 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | $ 5,691,803 | $ 5,038,725 | $ 17,290,544 | $ 15,058,940 |
Interest expense | 50,514 | 36,178 | 139,326 | 110,220 |
Total amounts | 83,078 | 71,153 | 348,791 | 264,854 |
Income tax expense | 39,046 | 28,451 | 113,078 | 120,705 |
Reclassification out of AOCI | Unrealized losses (gains) on derivative instruments: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total amounts | (1,728) | (13,890) | 15,958 | (28,974) |
Gain (loss) to be reclassified in next 12 months | 500 | |||
Income tax expense | 3,000 | 10,000 | ||
Reclassification out of AOCI | Unrealized losses (gains) on derivative instruments: | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (1,298) | (10,459) | 17,248 | (20,519) |
Reclassification out of AOCI | Unrealized losses (gains) on derivative instruments: | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | $ (430) | $ (3,431) | $ (1,290) | $ (8,455) |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) | May 31, 2019 | Nov. 30, 2018 | Aug. 31, 2018 |
Forward contracts | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 2,100,000,000 | $ 2,300,000,000 | |
Forward contracts | Forward foreign exchange contracts | Cash flow hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount | 135,900,000 | 293,400,000 | |
2018 Term Loan Facility | Interest rate swaps | Cash flow hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount | 350,000,000 | ||
Anticipated debt issuance | Interest rate swaps | Cash flow hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 200,000,000 | ||
Term Loan Facility | Line of Credit | 2017 Term Loan Facility | |||
Derivative [Line Items] | |||
Maximum borrowing capacity | $ 500,000,000 | ||
Term Loan Facility | Line of Credit | 2018 Term Loan Facility | |||
Derivative [Line Items] | |||
Maximum borrowing capacity | $ 350,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Instruments Located on Consolidated Balance Sheets (Details) - Forward foreign exchange contracts - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | $ 644 | $ 225 |
Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | 3,853 | 13,364 |
Derivatives Not Designated as Hedging Instruments Under ASC 815 | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | 5,216 | 10,125 |
Derivatives Not Designated as Hedging Instruments Under ASC 815 | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | $ 26,851 | $ 46,171 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Instruments Recorded on Consolidated Statements of Operations (Details) - Cost of revenue - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign currency gain (loss) | $ 28,300 | $ 23,100 | $ (24,300) | $ (12,500) |
Forward foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Net Income on Derivatives | $ (33,476) | $ (19,785) | $ 9,332 | $ 25,959 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Cash Flow Hedges (Details) - USD ($) | May 31, 2019 | Nov. 30, 2018 | Aug. 31, 2018 |
2017 Term Loan Facility | Term Loan Facility | Line of Credit | |||
Derivative [Line Items] | |||
Maximum borrowing capacity | $ 500,000,000 | ||
Amount of hedged item | $ 400,000,000 | ||
2018 Term Loan Facility | Term Loan Facility | Line of Credit | |||
Derivative [Line Items] | |||
Maximum borrowing capacity | $ 350,000,000 | ||
Cash flow hedging | Interest rate swaps | Anticipated debt issuance | |||
Derivative [Line Items] | |||
Aggregate notional amount | 200,000,000 | ||
Cash flow hedging | Interest rate swaps | 2018 Term Loan Facility | |||
Derivative [Line Items] | |||
Aggregate notional amount | 350,000,000 | ||
Cash flow hedging | Interest rate swaps | 2017 Term Loan Facility | |||
Derivative [Line Items] | |||
Aggregate notional amount | 200,000,000 | ||
Cash flow hedging | Interest rate swaps | 2017 Term Loan Facility | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 200,000,000 |
Restructuring and Related Cha_3
Restructuring and Related Charges - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 9,340 | $ 12,647 | $ 16,182 | $ 29,462 |
Employee severance and benefit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 6,513 | 5,058 | 15,460 | 11,048 |
Lease costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | (50) | 1,589 | (41) | 1,596 |
Asset write-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | (343) | 5,575 | (3,555) | 14,838 |
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 3,220 | 425 | 4,318 | 1,980 |
EMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 7,600 | 4,600 | 12,300 | 12,600 |
DMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0 | 5,800 | 2,100 | 13,800 |
Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 1,700 | $ 2,200 | $ 1,800 | $ 3,100 |
Restructuring and Related Cha_4
Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 9,340 | $ 12,647 | $ 16,182 | $ 29,462 |
2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 13,333 | |||
Total pre-tax restructuring and other related costs expected to be recognized | 195,000 | 195,000 | ||
EMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 7,600 | 4,600 | 12,300 | 12,600 |
DMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0 | 5,800 | 2,100 | 13,800 |
Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 1,700 | $ 2,200 | $ 1,800 | $ 3,100 |
Restructuring and Related Cha_5
Restructuring and Related Charges - Liability Activity, Primarily Associated with 2017 Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring and related charges | $ 9,340 | $ 12,647 | $ 16,182 | $ 29,462 |
Employee severance and benefit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and related charges | 6,513 | 5,058 | 15,460 | 11,048 |
Lease costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and related charges | (50) | 1,589 | (41) | 1,596 |
Asset write-off costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and related charges | (343) | $ 5,575 | (3,555) | $ 14,838 |
2017 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 21,337 | |||
Restructuring and related charges | 13,333 | |||
Asset write-off charge and other non-cash activity | 3,210 | |||
Cash payments | (25,536) | |||
Liability, Ending Balance | 12,344 | 12,344 | ||
2017 Restructuring Plan | Employee severance and benefit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 18,131 | |||
Restructuring and related charges | 15,460 | |||
Asset write-off charge and other non-cash activity | (331) | |||
Cash payments | (23,811) | |||
Liability, Ending Balance | 9,449 | 9,449 | ||
2017 Restructuring Plan | Lease costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 2,684 | |||
Restructuring and related charges | (41) | |||
Asset write-off charge and other non-cash activity | 0 | |||
Cash payments | (450) | |||
Liability, Ending Balance | 2,193 | 2,193 | ||
2017 Restructuring Plan | Asset write-off costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 0 | |||
Restructuring and related charges | (3,555) | |||
Asset write-off charge and other non-cash activity | 3,555 | |||
Cash payments | 0 | |||
Liability, Ending Balance | 0 | 0 | ||
2017 Restructuring Plan | Other Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 522 | |||
Restructuring and related charges | 1,469 | |||
Asset write-off charge and other non-cash activity | (14) | |||
Cash payments | (1,275) | |||
Liability, Ending Balance | $ 702 | $ 702 |
Business Acquisitions - Fiscal
Business Acquisitions - Fiscal 2019 (Details) - JJMD $ in Millions | 2 Months Ended |
Apr. 29, 2019USD ($) | |
Business Acquisition [Line Items] | |
Amount of cash paid for business acquisitions | $ 153.2 |
Assets acquired | 163.6 |
Liabilities assumed | $ 10.4 |
Business Acquisitions - Fisca_2
Business Acquisitions - Fiscal 2018 (Details) - True-Tech $ in Millions | Sep. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Amount of cash paid for business acquisitions | $ 95.9 |
Assets acquired | 114.7 |
Intangible assets acquired | 25.9 |
Goodwill | 22.6 |
Liabilities assumed | $ 18.8 |
New Accounting Guidance (Detail
New Accounting Guidance (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by investing activities | $ (704,095) | $ 886,335 |
Net cash used in operating activities | (112,656) | 1,376,305 |
Accounting Standards Update 2016-15 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by investing activities | 96,800 | 1,600,000 |
Net cash used in operating activities | $ 96,800 | $ 1,600,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | May 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||||
One-time transition tax, inclusive of unrecognized tax benefits | $ 65.9 | |||||
Re-measurement of the Company's U.S. deferred tax attributes | (10.5) | |||||
Change in indefinite reinvestment assertion | 85 | |||||
Other | 1.9 | |||||
Other | $ 0 | $ 1.9 | ||||
Income tax expense (benefit) | $ 30.9 | $ 142.3 | ||||
One-time transition tax, inclusive of unrecognized tax benefits | (14.9) | 51 | ||||
Re-measurement of the Company's U.S. deferred tax attributes | 1.6 | (8.9) | ||||
Change in indefinite reinvestment assertion | 0 | 85 | ||||
Income tax expense (benefit) | $ (13.3) | $ 129 | ||||
U.S. federal statutory rate | 21.00% | 25.70% | 21.00% | 25.70% | ||
Effective tax rate | 47.00% | 40.00% | 32.40% | 45.60% | ||
Reduction in unrecognized tax benefits for the period | $ 16.1 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 21.00% | 25.70% | 21.00% | 25.70% |
Effective tax rate | 47.00% | 40.00% | 32.40% | 45.60% |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | Sep. 01, 2018USD ($) |
ASU 2014-09 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Cumulative effect adjustment for adoption of new accounting standards | $ 42.6 |
Revenue - Summary of Cumulative
Revenue - Summary of Cumulative Effect Adjustment (Details) - USD ($) $ in Thousands | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Assets | |||
Contract assets | $ 899,482 | $ 591,616 | $ 0 |
Inventories, net | 3,159,369 | 2,996,435 | 3,457,706 |
Prepaid expenses and other current assets | 524,833 | 1,103,729 | 1,141,000 |
Deferred income taxes | 202,556 | 209,927 | 218,252 |
Liabilities | |||
Contract liabilities | 544,831 | 690,142 | |
Deferred income | 0 | 0 | 691,365 |
Other accrued expenses | 1,491,623 | 1,041,371 | 1,000,979 |
Deferred income taxes | 115,370 | 117,362 | 114,385 |
Equity | |||
Retained earnings | 1,996,901 | 1,802,699 | 1,760,097 |
Balance without the adoption of ASU 2014-09 | |||
Assets | |||
Contract assets | 0 | 0 | |
Inventories, net | 3,901,192 | 3,457,706 | |
Prepaid expenses and other current assets | 523,866 | 1,141,000 | |
Deferred income taxes | 207,752 | 218,252 | |
Liabilities | |||
Contract liabilities | 0 | 0 | |
Deferred income | 544,012 | 691,365 | |
Other accrued expenses | 1,486,706 | 1,000,979 | |
Deferred income taxes | 110,984 | 114,385 | |
Equity | |||
Retained earnings | $ 1,853,592 | $ 1,760,097 | |
Adjustments due to adoption of ASU 2014-09 | ASU 2014-09 | |||
Assets | |||
Contract assets | 591,616 | ||
Inventories, net | (461,271) | ||
Prepaid expenses and other current assets | (37,271) | ||
Deferred income taxes | (8,325) | ||
Liabilities | |||
Contract liabilities | 690,142 | ||
Deferred income | (691,365) | ||
Other accrued expenses | 40,392 | ||
Deferred income taxes | 2,977 | ||
Equity | |||
Retained earnings | $ 42,602 |
Revenue - Effect of New Revenue
Revenue - Effect of New Revenue Guidance, Impact on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net revenue | $ 6,135,602 | $ 5,436,952 | $ 18,708,867 | $ 16,323,585 |
Cost of revenue | 5,691,803 | 5,038,725 | 17,290,544 | 15,058,940 |
Operating income | 140,918 | 112,971 | 511,611 | 388,257 |
Income tax expense | 39,046 | 28,451 | 113,078 | 120,705 |
Net income | 44,032 | $ 42,702 | 235,713 | $ 144,149 |
Balance without the adoption of ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net revenue | 6,072,984 | 18,302,187 | ||
Cost of revenue | 5,665,654 | 16,982,850 | ||
Operating income | 104,449 | 412,625 | ||
Income tax expense | 38,015 | 114,798 | ||
Net income | $ 8,594 | $ 135,007 |
Revenue - Effect of New Reven_2
Revenue - Effect of New Revenue Guidance, Impact on Balance Sheet (Details) - USD ($) $ in Thousands | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
ASSETS | |||
Contract assets | $ 899,482 | $ 591,616 | $ 0 |
Inventories, net | 3,159,369 | 2,996,435 | 3,457,706 |
Prepaid expenses and other current assets | 524,833 | 1,103,729 | 1,141,000 |
Deferred income taxes | 202,556 | 209,927 | 218,252 |
Liabilities | |||
Contract liabilities | 544,831 | 690,142 | |
Deferred income | 0 | 0 | 691,365 |
Other accrued expenses | 1,491,623 | 1,041,371 | 1,000,979 |
Deferred income taxes | 115,370 | 117,362 | 114,385 |
Equity | |||
Retained earnings | 1,996,901 | $ 1,802,699 | 1,760,097 |
Balance without the adoption of ASU 2014-09 | |||
ASSETS | |||
Contract assets | 0 | 0 | |
Inventories, net | 3,901,192 | 3,457,706 | |
Prepaid expenses and other current assets | 523,866 | 1,141,000 | |
Deferred income taxes | 207,752 | 218,252 | |
Liabilities | |||
Contract liabilities | 0 | 0 | |
Deferred income | 544,012 | 691,365 | |
Other accrued expenses | 1,486,706 | 1,000,979 | |
Deferred income taxes | 110,984 | 114,385 | |
Equity | |||
Retained earnings | $ 1,853,592 | $ 1,760,097 |
Revenue - Revenues Disaggregate
Revenue - Revenues Disaggregated by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 6,135,602 | $ 5,436,952 | $ 18,708,867 | $ 16,323,585 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,856,038 | 6,680,045 | ||
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 4,279,564 | 12,028,822 | ||
EMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 3,988,489 | 11,296,319 | ||
EMS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 699,825 | 1,957,349 | ||
EMS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 3,288,664 | 9,338,970 | ||
DMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 2,147,113 | 7,412,548 | ||
DMS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,156,213 | 4,722,696 | ||
DMS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 990,900 | $ 2,689,852 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
May 31, 2019 | May 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Impairment costs on contract assets | $ 0 | $ 0 |
Revenue recognized during period that was included in contract liability balance | $ 350,900,000 |
Revenue - Fulfillment Costs (De
Revenue - Fulfillment Costs (Details) | 3 Months Ended | 9 Months Ended |
May 31, 2019USD ($) | May 31, 2019USD ($) | |
Capitalized Contract Cost [Line Items] | ||
Capitalized costs | $ 74,400,000 | $ 74,400,000 |
Amortization | 9,800,000 | 29,700,000 |
Impairment costs | $ 0 | $ 0 |
Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized cost, amortization period | 1 year | 1 year |
Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized cost, amortization period | 3 years | 3 years |