Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2019 | Oct. 14, 2019 | Feb. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2019 | ||
Entity Registrant Name | JABIL INC | ||
Entity Central Index Key | 0000898293 | ||
Current Fiscal Year End Date | --08-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.2 | ||
Entity Common Stock, Shares Outstanding | 152,656,443 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,163,343 | $ 1,257,949 |
Accounts receivable, net of allowance for doubtful accounts | 2,745,226 | 1,693,268 |
Contract assets | 911,940 | 0 |
Inventories, net of reserve for excess and obsolete inventory | 3,023,003 | 3,457,706 |
Prepaid expenses and other current assets | 501,573 | 1,141,000 |
Total current assets | 8,345,085 | 7,549,923 |
Property, plant and equipment, net of accumulated depreciation | 3,333,750 | 3,198,016 |
Goodwill | 622,255 | 627,745 |
Intangible assets, net of accumulated amortization | 256,853 | 279,131 |
Deferred income taxes | 198,827 | 218,252 |
Other assets | 213,705 | 172,574 |
Total assets | 12,970,475 | 12,045,641 |
Current liabilities: | ||
Current installments of notes payable and long-term debt | 375,181 | 25,197 |
Accounts payable | 5,166,780 | 4,942,932 |
Accrued expenses | 2,990,144 | 2,262,744 |
Total current liabilities | 8,532,105 | 7,230,873 |
Notes payable and long-term debt, less current installments | 2,121,284 | 2,493,502 |
Other liabilities | 163,821 | 94,617 |
Income tax liabilities | 136,689 | 148,884 |
Deferred income taxes | 115,818 | 114,385 |
Total liabilities | 11,069,717 | 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 outstanding | 0 | 0 |
Common stock, $0.001 par value, authorized 500,000,000 shares; 260,406,796 and 257,130,145 shares issued and 153,520,380 and 164,588,172 shares outstanding at August 31, 2019 and August 31, 2018, respectively | 260 | 257 |
Additional paid-in capital | 2,304,552 | 2,218,673 |
Retained earnings | 2,037,037 | 1,760,097 |
Accumulated other comprehensive loss | (82,794) | (19,399) |
Treasury stock at cost, 106,886,416 and 92,541,973 shares as of August 31, 2019 and August 31, 2018, respectively | (2,371,612) | (2,009,371) |
Total Jabil Inc. stockholders’ equity | 1,887,443 | 1,950,257 |
Noncontrolling interests | 13,315 | 13,123 |
Total equity | 1,900,758 | 1,963,380 |
Total liabilities and equity | $ 12,970,475 | $ 12,045,641 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 31, 2019 | Aug. 31, 2018 |
Statement of Financial Position [Abstract] | ||
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 | 260,406,796 | 257,130,145 |
Common stock, shares outstanding | 153,520,380 | 164,588,172 |
Treasury stock, shares | 106,886,416 | 92,541,973 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Statement [Abstract] | |||
Net revenue | $ 25,282,320 | $ 22,095,416 | $ 19,063,121 |
Cost of revenue | 23,368,919 | 20,388,624 | 17,517,478 |
Gross profit | 1,913,401 | 1,706,792 | 1,545,643 |
Operating expenses: | |||
Selling, general and administrative | 1,111,347 | 1,050,716 | 907,702 |
Research and development | 42,861 | 38,531 | 29,680 |
Amortization of intangibles | 31,923 | 38,490 | 35,524 |
Restructuring and related charges | 25,914 | 36,902 | 160,395 |
Loss on disposal of subsidiaries | 0 | 0 | 2,112 |
Operating income | 701,356 | 542,153 | 410,230 |
Restructuring of securities loss | 29,632 | 0 | 0 |
Other expense | 53,750 | 37,563 | 28,448 |
Interest income | (21,460) | (17,813) | (12,525) |
Interest expense | 188,730 | 149,002 | 138,074 |
Income before income tax | 450,704 | 373,401 | 256,233 |
Income tax expense | 161,230 | 285,860 | 129,066 |
Net income | 289,474 | 87,541 | 127,167 |
Net income (loss) attributable to noncontrolling interests, net of tax | 2,363 | 1,211 | (1,923) |
Net income attributable to Jabil Inc. | $ 287,111 | $ 86,330 | $ 129,090 |
Earnings per share attributable to the stockholders of Jabil Inc.: | |||
Basic (in dollars per share) | $ 1.85 | $ 0.50 | $ 0.71 |
Diluted (in dollars per share) | $ 1.81 | $ 0.49 | $ 0.69 |
Weighted average shares outstanding: | |||
Basic (in shares) | 155,613 | 172,237 | 181,902 |
Diluted (in shares) | 158,647 | 175,044 | 185,838 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 289,474 | $ 87,541 | $ 127,167 |
Other comprehensive (loss) income: | |||
Change in foreign currency translation | (21,729) | (50,151) | 41,244 |
Change in derivative instruments: | |||
Change in fair value of derivatives | (67,773) | 1,225 | 13,434 |
Adjustment for net losses (gains) realized and included in net income | 20,259 | (23,076) | 8,749 |
Total change in derivative instruments | (47,514) | (21,851) | 22,183 |
Change in available for sale securities: | |||
Unrealized (loss) gain on available for sale securities | (24,508) | (8,679) | 10,611 |
Adjustment for net losses realized and included in net income | 33,333 | 0 | 10,139 |
Total change in available for sale securities | 8,825 | (8,679) | 20,750 |
Actuarial (loss) gain | (3,012) | 8,194 | 10,372 |
Prior service credit (cost) | 35 | (1,532) | (52) |
Total other comprehensive (loss) income | (63,395) | (74,019) | 94,497 |
Comprehensive income | 226,079 | 13,522 | 221,664 |
Comprehensive income (loss) attributable to noncontrolling interests | 2,363 | 1,211 | (1,923) |
Comprehensive income attributable to Jabil Inc. | $ 223,716 | $ 12,311 | $ 223,587 |
CONSOLIDATED STATEMENTS OF STOC
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, 2016 | $ 2,457,497 | $ 250 | $ 2,034,525 | $ 1,660,820 | $ (39,877) | $ (1,217,547) | $ 19,326 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under employee stock purchase plan | 1 | 21,791 | |||||
Vesting of restricted stock awards | 2 | (2) | |||||
Recognition of stock-based compensation | 47,889 | ||||||
Declared dividends | (59,017) | ||||||
Net income (loss) | 221,664 | 129,090 | 94,497 | (1,923) | |||
Purchases of treasury stock under employee stock plans | (12,268) | ||||||
Treasury shares purchased | (306,640) | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Purchase of noncontrolling interests | (134) | ||||||
Disposition of noncontrolling interests | 0 | ||||||
Declared dividends to noncontrolling interests | (2,293) | ||||||
Foreign currency adjustments attributable to noncontrolling interests | (146) | ||||||
Other | 0 | ||||||
Ending Balance at Aug. 31, 2017 | 2,368,344 | 253 | 2,104,203 | 1,730,893 | 54,620 | (1,536,455) | 14,830 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under employee stock purchase plan | 1 | 24,865 | |||||
Vesting of restricted stock awards | 3 | (3) | |||||
Recognition of stock-based compensation | 89,608 | ||||||
Declared dividends | (57,126) | ||||||
Net income (loss) | 13,522 | 86,330 | (74,019) | 1,211 | |||
Purchases of treasury stock under employee stock plans | (22,597) | ||||||
Treasury shares purchased | (450,319) | ||||||
Acquisition of noncontrolling interests | 0 | ||||||
Purchase of noncontrolling interests | 0 | ||||||
Disposition of noncontrolling interests | 0 | ||||||
Declared dividends to noncontrolling interests | (2,920) | ||||||
Foreign currency adjustments attributable to noncontrolling interests | 2 | ||||||
Other | 0 | ||||||
Ending Balance at Aug. 31, 2018 | 1,963,380 | 257 | 2,218,673 | 1,760,097 | (19,399) | (2,009,371) | 13,123 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect adjustment for adoption of new accounting standards | 40,855 | ||||||
Shares issued under employee stock purchase plan | 1 | 26,999 | |||||
Vesting of restricted stock awards | 2 | (2) | |||||
Recognition of stock-based compensation | 58,882 | ||||||
Declared dividends | (51,026) | ||||||
Net income (loss) | 226,079 | 287,111 | (63,395) | 2,363 | |||
Purchases of treasury stock under employee stock plans | (11,918) | ||||||
Treasury shares purchased | (350,323) | ||||||
Acquisition of noncontrolling interests | 1,112 | ||||||
Purchase of noncontrolling interests | 0 | ||||||
Disposition of noncontrolling interests | (1,785) | ||||||
Declared dividends to noncontrolling interests | (1,500) | ||||||
Foreign currency adjustments attributable to noncontrolling interests | 0 | ||||||
Other | 2 | ||||||
Ending Balance at Aug. 31, 2019 | $ 1,900,758 | $ 260 | $ 2,304,552 | $ 2,037,037 | $ (82,794) | $ (2,371,612) | $ 13,315 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Cash flows provided by (used in) operating activities: | |||
Net income | $ 289,474 | $ 87,541 | $ 127,167 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 771,833 | 773,704 | 760,405 |
Restructuring and related charges | (3,566) | 16,264 | 94,346 |
Recognition of stock-based compensation expense and related charges | 61,346 | 90,664 | 48,544 |
Deferred income taxes | 20,998 | 52,705 | (63,001) |
Provision for allowance for doubtful accounts | 15,867 | 38,030 | 10,112 |
Restructuring of securities loss | 29,632 | 0 | 0 |
Other, net | 37,017 | (13,600) | 22,109 |
Change in operating assets and liabilities, exclusive of net assets acquired: | |||
Accounts receivable | (586,511) | (2,334,367) | (2,828,328) |
Contract assets | (878,469) | 0 | 0 |
Inventories | 483,074 | (499,105) | (445,089) |
Prepaid expenses and other current assets | 28,897 | (97,795) | 95,593 |
Other assets | (38,188) | (34,747) | (30,413) |
Accounts payable, accrued expenses and other liabilities | 961,662 | 815,258 | 744,470 |
Net cash provided by (used in) operating activities | 1,193,066 | (1,105,448) | (1,464,085) |
Cash flows (used in) provided by investing activities: | |||
Acquisition of property, plant and equipment | (1,005,480) | (1,036,651) | (716,485) |
Proceeds and advances from sale of property, plant and equipment | 218,708 | 350,291 | 175,000 |
Cash paid for business and intangible asset acquisitions, net of cash | (153,239) | (109,664) | (36,620) |
Cash receipts on sold receivables | 96,846 | 2,039,298 | 2,720,728 |
Other, net | (29,289) | (2,360) | (1,360) |
Net cash (used in) provided by investing activities | (872,454) | 1,240,914 | 2,141,263 |
Cash flows used in financing activities: | |||
Borrowings under debt agreements | 11,985,978 | 9,677,424 | 7,434,107 |
Payments toward debt agreements | (12,013,004) | (9,206,016) | (7,479,150) |
Payments to acquire treasury stock | (350,323) | (450,319) | (306,640) |
Dividends paid to stockholders | (52,004) | (57,833) | (59,959) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 26,999 | 24,865 | 21,791 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (11,918) | (22,597) | (12,268) |
Other, net | (1,500) | (12,568) | (2,427) |
Net cash used in financing activities | (415,772) | (47,044) | (404,546) |
Effect of exchange rate changes on cash and cash equivalents | 554 | (20,392) | 5,228 |
Net (decrease) increase in cash and cash equivalents | (94,606) | 68,030 | 277,860 |
Cash and cash equivalents at beginning of period | 1,257,949 | 1,189,919 | 912,059 |
Cash and cash equivalents at end of period | 1,163,343 | 1,257,949 | 1,189,919 |
Supplemental disclosure information: | |||
Interest paid, net of capitalized interest | 185,696 | 167,278 | 130,635 |
Income taxes paid, net of refunds received | $ 168,053 | $ 180,423 | $ 187,871 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Jabil Inc. (together with its subsidiaries, herein referred to as the “Company”) is one of the leading providers of 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’s services combine a highly automated, continuous flow manufacturing approach with advanced electronic design and design for manufacturability technologies. The Company is headquartered in St. Petersburg, Florida and has manufacturing operations principally in the Americas, Europe and Asia. Significant accounting policies followed by the Company are as follows: Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts and operations of the Company, and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation. Use of Accounting Estimates Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates and assumptions. Cash and Cash Equivalents Cash equivalents consist of investments that are readily convertible to cash with original maturities of 90 days or less. Accounts Receivable Accounts receivable consist of trade receivables and other miscellaneous receivables. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. Allowances of $17.2 million and $15.2 million were recorded as of August 31, 2019 and 2018 , respectively. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for doubtful accounts are made as necessary. 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 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. Inventories Inventories are stated at the lower of cost (on a first in, first out (FIFO) basis) and net realizable value. Inventory is valued based on current and forecasted usage, customer inventory-related contractual obligations and other lower of cost and net realizable value considerations. If actual market conditions or customer product demands are less favorable than those projected, additional valuation adjustments may be necessary. 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. 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. Property, Plant and Equipment, net Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Certain equipment held under capital leases is classified as property, plant and equipment and the related obligation is recorded as accrued expenses and other liabilities on the Consolidated Balance Sheets. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Operations. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. Goodwill and Other Intangible Assets The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of loss, if any. The recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount to the fair value. The Company determines the fair value of its indefinite-lived intangible assets principally based on a variation of the income approach, known as the relief from royalty method. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, the indefinite-lived intangible asset is considered impaired. Business combinations can also result in other intangible assets being recognized. Finite-lived intangible assets are amortized on either a straight-line or accelerated basis over their estimated useful life and include contractual agreements and customer relationships, tradenames and intellectual property. No significant residual values are estimated for the amortizable intangible assets. Long-lived Assets Long-lived assets, such as property, plant and equipment, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparing its carrying amount to the undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value, which is generally determined as the present value of estimated future cash flows or as the appraised value. Derivative Instruments All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of accumulated other comprehensive income (“AOCI”), net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective portion of the gain or loss is recognized immediately in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Accumulated Other Comprehensive Income The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2019 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service (Cost) Credit 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 (21,729 ) (67,773 ) (3,753 ) 79 (24,508 ) (117,684 ) Amounts reclassified from AOCI — 20,259 741 (44 ) 33,333 54,289 Other comprehensive (loss) income (1) (21,729 ) (47,514 ) (3,012 ) 35 8,825 (63,395 ) Balance as of August 31, 2019 $ (14,298 ) $ (39,398 ) $ (28,033 ) $ (608 ) $ (457 ) $ (82,794 ) (1) Amounts are net of tax, which are immaterial. The following table sets forth the amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in thousands): Fiscal Year Ended August 31, Comprehensive Income Components Financial Statement Line Item 2019 2018 2017 Foreign currency translation adjustment Operating income $ — $ — $ 5,947 Realized losses (gains) on derivative instruments: (3) Foreign exchange contracts Cost of revenue 21,982 (9,379 ) 4,799 Interest rate contracts Interest expense (1,723 ) (13,697 ) 3,950 Actuarial loss (1) 741 1,127 1,929 Prior service credit (1) (44 ) (88 ) (138 ) Available for sale securities (2) 33,333 — 10,139 Total amounts reclassified from AOCI (4) $ 54,289 $ (22,037 ) $ 26,626 (1) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information. (2) The portions of AOCI reclassified into earnings during the fiscal years ended August 31, 2019 and 2017 for available for sale securities were due to a restructuring of securities loss and an other than temporary impairments on securities, respectively, and were recorded to restructuring of securities loss and other expense, respectively. (3) The Company expects to reclassify $17.0 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (4) Amounts are net of tax, which are immaterial for the fiscal years ended August 31, 2019 and 2017 . The amount for the fiscal year ended August 31, 2018 includes a reduction to income tax expense related to derivative instruments of $14.8 million . Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. Revenue Recognition Effective September 1, 2018, the Company’s revenue recognition accounting policies changed in conjunction with the adoption of ASU 2014-09, Revenue Recognition (Topic 606). For further discussion, refer to Note 18 - “Revenue” to the Consolidated Financial Statements. 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 the Company's 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 the Company's 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 the Company's 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 the Company incurs costs on its 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. Stock-Based Compensation The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The stock-based compensation expense for time-based and performance-based restricted stock unit awards (“restricted stock units”) is measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. For restricted stock units with performance conditions, stock-based compensation expense is originally based on the number of shares that would vest if the Company achieved 100% of the performance goal, which is the intended outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition. If it becomes probable, based on the Company’s performance, that more or less than the current estimate of the awarded shares will vest, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate in the period that such probability changes. The stock-based compensation expense for market-based restricted stock units is measured at fair value on the date of grant. The market conditions are considered in the grant date fair value using a Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The Company currently expects to satisfy share-based awards with registered shares available to be issued. See Note 11 – “Stockholders’ Equity” for further discussion of stock-based compensation expense. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company considers future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to Jabil Inc. by the weighted average number of shares of common stock 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 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 criterion 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): Fiscal Year Ended August 31, 2019 2018 2017 Stock appreciation rights — — 265 Restricted stock units 796 2,426 4,539 Fair Value of Financial Instruments Fair value is categorized in one of three levels based on the lowest level of significant input used. Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 12 Months Ended |
Aug. 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-backed 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 fiscal years ended August 31, 2019 , 2018 and 2017 were not material. The Company does not record a servicing asset or liability on the Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the programs are accounted for as sales and, accordingly, net receivables sold under the programs are excluded from accounts receivable on the Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. The adoption of Accounting Standards Update No. 2016-15 (“ASU 2016-15”) described in Note 17 , New Accounting Guidance, resulted in a reclassification of cash flows from operating activities to investing activities for all periods presented in the Company’s 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 , $2.0 billion , and $2.8 billion for the fiscal years ended August 31, 2019 , 2018 , and 2017 , 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, at a discount, 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 amended 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 August 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 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, at a discount, 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 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, certain unsold receivables covering the maximum amount of net cash proceeds available under the program are pledged as collateral to the unaffiliated financial institution as of August 31, 2019. Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of Net Cash Proceeds (in millions) (1) Expiration Date 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): Fiscal Year Ended August 31, 2019 (3) 2018 2017 Trade accounts receivable sold $ 4,057 $ 8,386 $ 8,878 Cash proceeds received (1) $ 4,031 $ 7,838 $ 8,300 Pre-tax losses on sale of receivables (2) $ 26 $ 15 $ 9 Deferred purchase price receivables as of August 31 $ — $ 533 $ 569 (1) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Consolidated Statements of Operations. (3) 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 five-year unsecured credit facility amended as of November 8, 2017 (“the 2017 Credit Facility”). The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. As of August 31, 2019 and 2018 , the Company was in compliance with all covenants under the asset-backed securitization programs. Trade Accounts Receivable Sale Programs 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, 2020 F $ 150.0 Uncommitted January 25, 2020 (5) G $ 50.0 Uncommitted February 23, 2023 (2) H $ 100.0 Uncommitted August 10, 2020 (6) I $ 100.0 Uncommitted July 21, 2020 (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 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): Fiscal Year Ended August 31, 2019 2018 2017 Trade accounts receivable sold $ 6,751 $ 5,480 $ 2,968 Cash proceeds received $ 6,723 $ 5,463 $ 2,962 Pre-tax losses on sale of receivables (1) $ 28 $ 17 $ 6 (1) Recorded to other expense within the Consolidated Statements of Operations. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): August 31, 2019 August 31, 2018 Raw materials $ 2,310,081 $ 2,070,569 Work in process 468,217 788,742 Finished goods 314,258 659,335 Reserve for excess and obsolete inventory (69,553 ) (60,940 ) Inventories, net $ 3,023,003 $ 3,457,706 |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for Income Taxes Income (loss) before income tax expense is summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Domestic (1) $ (415,707 ) $ (426,897 ) $ (373,690 ) Foreign (1) 866,411 800,298 629,923 $ 450,704 $ 373,401 $ 256,233 (1) Includes the elimination of intercompany foreign dividends paid to the U.S. Income tax expense (benefit) is summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Current: Domestic - federal $ (23,675 ) $ 69,080 $ 2,436 Domestic - state 1,383 134 12 Foreign 175,993 178,790 188,872 Total current 153,701 248,004 191,320 Deferred: Domestic - federal (8,000 ) (24,342 ) 253 Domestic - state (2,202 ) 93 30 Foreign 17,731 62,105 (62,537 ) Total deferred 7,529 37,856 (62,254 ) Total income tax expense $ 161,230 $ 285,860 $ 129,066 Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is summarized below: Fiscal Year Ended August 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 25.7 % 35.0 % State income taxes, net of federal tax benefit (1.7 ) (1.5 ) (3.3 ) Impact of foreign tax rates (1)(2) (9.9 ) (19.3 ) (42.7 ) Permanent impact of non-deductible cost 1.8 5.9 2.9 Income tax credits (1) (3.1 ) (2.8 ) (6.3 ) Changes in tax rates on deferred tax assets and liabilities (3) 0.2 4.0 0.3 One-time transition tax related to the Tax Act (4) (0.5 ) 62.2 — Indefinite reinvestment assertion impact (4) 0.9 5.8 — Valuation allowance (5) 1.3 (16.4 ) 14.8 Non-deductible equity compensation 1.4 5.5 4.5 Impact of intercompany charges and dividends (6) 10.4 7.3 38.3 Reclassification of stranded tax effects in AOCI — (4.0 ) — Global Intangible Low-Taxed Income (7) 10.4 — — Other, net 3.6 4.2 6.9 Effective income tax rate 35.8 % 76.6 % 50.4 % (1) The Company has been granted tax incentives for various subsidiaries in Brazil, China, Malaysia, Poland, Singapore and Vietnam, which expire at various dates through fiscal year 2031 and are subject to certain conditions with which the Company expects to comply. These tax incentives resulted in a tax benefit of approximately $67.3 million ( $0.43 per basic share), $52.1 million ( $0.30 per basic share) and $38.6 million ( $0.22 per basic share) during the fiscal years ended August 31, 2019 , 2018 and 2017 , respectively. (2) For the fiscal years ended August 31, 2019 and 2018 , the decrease in the impact of foreign tax rates was primarily due to a decrease in the U.S. federal statutory income tax rate due to the Tax Act. (3) For the fiscal year ended August 31, 2018 , the increase in the changes in tax rates on deferred tax assets and liabilities was primarily due to the Tax Act, excluding the impact of the enacted rate change on the U.S. valuation allowance. (4) The indefinite reinvestment assertion impact for the fiscal year ended August 31, 2018 is related to the Tax Act as further discussed below. (5) The valuation allowance change for the fiscal years ended August 31, 2019 and 2018 was primarily due to utilization of domestic federal net operating losses and tax credits against the one-time transition tax and the change in enacted tax rate applied to U.S. deferred tax assets and liabilities for the fiscal year ended August 31, 2018 . The increase for the fiscal year ended August 31, 2019 was partially offset by an income tax benefit of $17.5 million for the reversal of a U.S. valuation allowance due to an intangible asset reclassification from indefinite-life to finite-life. (6) For the fiscal year ended August 31, 2018 , the decrease in the impact of intercompany charges and dividends was due to a change in the U.S. taxation of foreign dividends as a result of the Tax Act. (7) GILTI applied beginning in the fiscal year ended August 31, 2019 and primarily related to the utilization of current year U.S. federal operating losses. Tax Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The Tax Act reduced the corporate tax rate, limited or eliminated certain tax deductions, introduced Global Intangible Low-Taxed Income (“GILTI”) as a newly defined category of foreign subsidiary income which is taxable to U.S. shareholders each year, and changed the taxation of foreign earnings of U.S. multinational companies. The enacted changes included a mandatory income inclusion of the historically untaxed foreign earnings of a U.S. company’s foreign subsidiaries and effectively taxed such income at reduced tax rates (“transition tax”). As a result of the one-time transition tax, the Company has 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 Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), recorded a net provisional income tax expense (benefit). During the fiscal year ended August 31, 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. During the first quarter of fiscal year 2019, the Company elected to record the GILTI 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 (benefit) expense adjustment - recognized in fiscal year 2019 $ (19.7 ) $ 1.6 $ — $ (0.3 ) $ (18.4 ) Income tax expense (benefit) related to the Tax Act $ 46.2 $ (8.9 ) $ 85.0 $ 1.6 $ 123.9 (1) The calculation of the one-time transition tax is based upon 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 adjustments during the fiscal year ended August 31, 2019 were primarily related to further analysis of the Company’s utilization of foreign tax credits and applicable limitations. (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. Deferred Tax Assets and Liabilities Significant components of the deferred tax assets and liabilities are summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 Deferred tax assets: Net operating loss carry forward $ 183,297 $ 119,259 Receivables 6,165 7,111 Inventories 9,590 7,634 Compensated absences 10,401 8,266 Accrued expenses 81,731 81,912 Property, plant and equipment, principally due to differences in depreciation and amortization 66,268 97,420 Domestic federal and state tax credits 42,464 70,153 Foreign jurisdiction tax credits 15,345 25,887 Equity compensation – Domestic 7,617 7,566 Equity compensation – Foreign 2,179 2,401 Domestic federal interest carry forward 5,853 — Cash flow hedges 9,878 — Unrecognized capital loss carry forward 7,799 — Revenue recognition 19,195 — Other 21,907 18,176 Total deferred tax assets before valuation allowances 489,689 445,785 Less valuation allowances (287,604 ) (223,487 ) Net deferred tax assets $ 202,085 $ 222,298 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries 75,387 74,654 Intangible assets 39,242 39,122 Other 4,447 4,655 Total deferred tax liabilities $ 119,076 $ 118,431 Net deferred tax assets $ 83,009 $ 103,867 Based on the Company’s historical operating income, projection of future taxable income, scheduled reversal of taxable temporary differences, and tax planning strategies, management believes that it is more likely than not that the Company will realize the benefit of its deferred tax assets, net of valuation allowances recorded. The net increase in the total valuation allowance for the fiscal year ended August 31, 2019 is primarily related to the increase of a net operating loss carry forward due to a release of a non-U.S. unrecognized tax benefit and the increase of deferred tax assets in sites with existing valuation allowances. The decrease in domestic federal and state tax credits is primarily related to the utilization of tax credits against the one-time transition tax. As of August 31, 2019 , the Company intends to indefinitely reinvest the remaining earnings from its foreign subsidiaries for which a deferred tax liability has not already been recorded. The accumulated earnings are the most significant component of the basis difference which is indefinitely reinvested. As of August 31, 2019 , the indefinitely reinvested earnings in foreign subsidiaries upon which taxes had not been provided were approximately $1.9 billion . The estimated amount of the unrecognized deferred tax liability on these reinvested earnings was approximately $0.2 billion . Tax Carryforwards The amount and expiration dates of income tax net operating loss carryforwards and tax credit carryforwards, which are available to reduce future taxes, if any, as of August 31, 2019 are as follows: (dollars in thousands) Last Fiscal Year of Expiration Amount Income tax net operating loss carryforwards: (1) Domestic - state 2039 $ 57,299 Foreign 2039 or indefinite $ 565,609 Tax credit carryforwards: (1) Domestic - federal 2029 $ 39,784 Domestic - state 2027 $ 3,313 Foreign (2) 2027 or indefinite $ 15,345 (1) Net of unrecognized tax benefits. (2) Calculated based on the deferral method and includes foreign investment tax credits. Unrecognized Tax Benefits Reconciliation of the unrecognized tax benefits is summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Beginning balance $ 256,705 $ 201,355 $ 149,898 Additions for tax positions of prior years 20,158 14,465 2,155 Reductions for tax positions of prior years (1) (106,252 ) (21,045 ) (12,233 ) Additions for tax positions related to current year (2) 35,769 81,866 77,807 Cash settlements — (1,659 ) (2,298 ) Reductions from lapses in statutes of limitations (2,570 ) (7,496 ) (10,446 ) Reductions from settlements with taxing authorities (3) (35,582 ) (5,928 ) (6,061 ) Foreign exchange rate adjustment (3,845 ) (4,853 ) 2,533 Ending balance $ 164,383 $ 256,705 $ 201,355 Unrecognized tax benefits that would affect the effective tax rate (if recognized) $ 93,237 $ 117,455 $ 75,223 (1) The reductions for tax positions of prior years for the fiscal year ended August 31, 2019 are primarily related to a non-U.S. taxing authority ruling related to certain non-U.S. net operating loss carry forwards, offset with a valuation allowance and the impacts of the Tax Act. (2) The additions for the fiscal years ended August 31, 2019 and 2018 are primarily related to the impacts of the Tax Act and taxation of certain intercompany transactions. The additions for the fiscal year ended August 31, 2017 are primarily related to certain non-U.S. net operating loss carry forwards, previously offset with a valuation allowance, that can no longer be recognized due to an internal restructuring. (3) The reductions from settlements with taxing authorities for the fiscal year ended August 31, 2019 are primarily related to the settlement of a U.S. audit. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company’s accrued interest and penalties were approximately $18.9 million and $20.4 million as of August 31, 2019 and 2018 , respectively. The Company recognized interest and penalties of approximately $(1.5) million , $(6.7) million and $5.2 million during the fiscal years ended August 31, 2019 , 2018 and 2017 , respectively. It is reasonably possible that the August 31, 2019 unrecognized tax benefits could decrease during the next 12 months by $5.8 million , primarily related to a state settlement. The Company is no longer subject to U.S. federal tax examinations for fiscal years before August 31, 2015. In major non-U.S. and state jurisdictions, the Company is no longer subject to income tax examinations for fiscal years before August 31, 2009. 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. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): August 31, 2019 2018 Land and improvements $ 146,719 $ 144,136 Buildings 962,559 849,975 Leasehold improvements 1,092,787 1,013,428 Machinery and equipment 4,262,015 3,983,025 Furniture, fixtures and office equipment 209,257 192,243 Computer hardware and software 671,252 601,955 Transportation equipment 16,423 17,215 Construction in progress 83,234 42,984 7,444,246 6,844,961 Less accumulated depreciation and amortization 4,110,496 3,646,945 $ 3,333,750 $ 3,198,016 Depreciation and maintenance and repair expenses were as follows for the periods indicated (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Depreciation expense $ 739,910 $ 735,213 $ 724,856 Maintenance and repair expense $ 288,309 $ 266,691 $ 234,332 As of August 31, 2019 and 2018 , the Company had $235.2 million and $253.6 million , respectively, included in accounts payable for the acquisition of property, plant and equipment, which is considered a non-cash investing activity in the Consolidated Statements of Cash Flows. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company completed its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2019 and determined the fair values of the reporting units and the indefinite-lived intangible assets were in excess of the carrying values and that no impairment existed as of the date of the impairment test. The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”), during the fiscal years ended August 31, 2019 and 2018 (in thousands): EMS DMS Total Balance as of August 31, 2017 $ 52,574 $ 555,610 $ 608,184 Acquisitions and adjustments (1) 30,763 (8,186 ) 22,577 Change in foreign currency exchange rates (667 ) (2,349 ) (3,016 ) Balance as of August 31, 2018 82,670 545,075 627,745 Change in foreign currency exchange rates (702 ) (4,788 ) (5,490 ) Balance as of August 31, 2019 $ 81,968 $ 540,287 $ 622,255 (1) Includes $8.2 million of goodwill reallocated between DMS and EMS during fiscal year 2018. The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in thousands): August 31, 2019 August 31, 2018 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Goodwill $ 1,642,077 $ 1,019,822 $ 1,647,567 $ 1,019,822 The following table presents the Company’s total purchased intangible assets as of August 31, 2019 and 2018 (in thousands): Weighted Average Amortization Period (in years) August 31, 2019 August 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contractual agreements and customer relationships 12 $ 292,797 $ (175,199 ) $ 117,598 $ 289,947 $ (153,415 ) $ 136,532 Intellectual property 6 173,771 (157,606 ) 16,165 168,181 (148,672 ) 19,509 Finite-lived trade names Not applicable 77,536 (5,036 ) 72,500 5,091 (5,091 ) — Trade names Indefinite 50,590 — 50,590 123,090 — 123,090 Total intangible assets 11 $ 594,694 $ (337,841 ) $ 256,853 $ 586,309 $ (307,178 ) $ 279,131 In the fourth quarter of fiscal year 2019, the Company made a strategic decision that the indefinite-lived trade name of $72.5 million acquired during the acquisition of Nypro would be phased out over the next four years . In connection with a strategic shift to further diversify our portfolio, focus on innovation and technology within the Company’s healthcare business and as a result of the strategic collaboration with a certain medical device company, management decided to implement a rebranding initiative to Jabil Healthcare. Management believes the name change better leverages the Jabil brand and the full range of services available to its customers. As a result of the decision to rebrand, the Company determined the indefinite-lived trade name should no longer be classified as an indefinite-lived intangible asset. Accordingly, prior to reclassifying the trade name to a finite-lived intangible asset, the Company tested it for impairment and determined the fair value of the asset exceeded the carrying value. As such, this trade name was assigned a four-year estimated useful life and will be amortized on an accelerated basis. Intangible asset amortization for fiscal years 2019 , 2018 and 2017 was approximately $31.9 million , $38.5 million and $35.5 million , respectively. The estimated future amortization expense is as follows (in thousands): Fiscal Year Ended August 31, 2020 $ 54,165 2021 43,780 2022 28,291 2023 25,877 2024 10,976 Thereafter 43,174 Total $ 206,263 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Aug. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): August 31, 2019 August 31, 2018 Contract liabilities $ 511,329 $ — Deferred income — 691,365 Accrued compensation and employee benefits 600,907 570,400 Obligation associated with securitization programs 475,251 — Other accrued expenses 1,402,657 1,000,979 Accrued expenses $ 2,990,144 $ 2,262,744 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 12 Months Ended |
Aug. 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 August 31, 2019 and 2018 are summarized below (in thousands): Maturity Date August 31, 2019 August 31, 2018 5.625% Senior Notes (1)(2) Dec 15, 2020 398,886 397,995 4.700% Senior Notes (1)(2) Sep 15, 2022 498,004 497,350 4.900% Senior Notes (1) Jul 14, 2023 299,057 298,814 3.950% Senior Notes (1)(2)(3) Jan 12, 2028 494,825 494,208 Borrowings under credit facilities (4)(5)(6) Nov 8, 2022 and Aug 24, 2020 — — Borrowings under loans (4)(5) Nov 8, 2022 and Aug 24, 2020 805,693 830,332 Total notes payable and long-term debt 2,496,465 2,518,699 Less current installments of notes payable and long-term debt 375,181 25,197 Notes payable and long-term debt, less current installments $ 2,121,284 $ 2,493,502 (1) The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs. (2) The Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. (3) During the fiscal year ended August 31, 2018 , the Company issued $500.0 million of publicly registered 3.950% Senior Notes due 2028 (the “ 3.950% Senior Notes”). The net proceeds from the offering were used for general corporate purposes, including to redeem $400.0 million of the Company’s outstanding 8.250% Senior Notes due 2018 and pay related costs and a “make-whole” premium. (4) On November 8, 2017, the Company entered into an amended and restated senior unsecured five -year credit agreement to support the continued growth of the business. In addition, the revolving credit facility supports commercial paper outstanding, if any. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $1.8 billion , which may, subject to the lenders’ discretion, potentially be increased up to $2.3 billion (“the 2017 Revolving Credit Facility”) and (ii) a $500.0 million Term Loan Facility (“the 2017 Term Loan Facility”), collectively “the 2017 Credit Facility.” The 2017 Credit Facility expires on November 8, 2022. The 2017 Revolving Credit Facility is subject to two whole or partial one -year extensions, at the lender’s discretion. Interest and fees on the 2017 Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the fiscal year ended August 31, 2019 , the interest rates on the 2017 Revolving Credit Facility ranged from 3.1% to 5.7% and the 2017 Term Loan Facility ranged from 3.5% to 3.9% . Interest is charged at a rate equal to (a) for the 2017 Revolving Credit Facility, either 0.000% to 0.575% above the base rate or 0.975% to 1.575% above the Eurocurrency rate and (b) for the 2017 Term Loan Facility, either 0.125% to 0.875% above the base rate or 1.125% to 1.875% above the Eurocurrency rate. The base rate represents the greatest of: (i) Citibank, N.A.’s prime rate, (ii) 0.50% above the federal funds rate, and (iii) 1.0% above one-month LIBOR, but not less than zero. The Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. (5) On August 24, 2018, the Company entered into a senior unsecured two -year credit agreement to support the continued growth of the business. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $150.0 million (“the 2018 Revolving Credit Facility”) and (ii) a $350.0 million Term Loan Facility (“the 2018 Term Loan Facility”), collectively “the 2018 Credit Facility.” The 2018 Credit Facility expires on August 24, 2020. During the fiscal year ended August 31, 2019 , the interest rates on the 2018 Revolving Credit Facility ranged from 3.1% to 3.4% and the 2018 Term Loan Facility ranged from 3.3% to 3.8% . Interest is charged at a rate equal to (a) for the 2018 Revolving Credit Facility, either the base rate or 0.9750% above the Eurocurrency rate and (b) for the 2018 Term Loan Facility, either 0.125% above the base rate or 1.125% above the Eurocurrency rate. The base rate represents the greatest of: (i) Mizuho Bank, Ltd.’s prime rate, (ii) 0.50% above the federal funds rate, and (iii) 1.0% above one-month LIBOR, but not less than zero. The Eurocurrency rate represents adjusted LIBOR for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of August 31, 2019 , the Company has $2.6 billion , in available unused borrowing capacity under its revolving credit facilities. (6) On August 15, 2019, the Company entered into a commercial paper program with a borrowing capacity of up to $1.8 billion . The Company intends to use the net proceeds from the commercial paper to support more efficient financing terms. The revolving credit facility supports commercial paper outstanding, if any. As of August 31, 2019 , no commercial paper had been issued. In the ordinary course of business, the Company has letters of credit and surety bonds with banks and insurance companies outstanding of $119.1 million as of August 31, 2019 . Unused letters of credit were $74.7 million as of August 31, 2019 . Letters of credit and surety bonds are generally available for draw down in the event the Company does not perform. Debt Maturities Debt maturities as of August 31, 2019 are as follows (in thousands): Fiscal Year Ended August 31, 2020 $ 375,181 2021 441,858 2022 49,797 2023 1,134,613 2024 120 Thereafter 494,896 Total $ 2,496,465 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 2017 and 2018 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 August 31, 2019 and 2018 , the Company was in compliance with its debt covenants. Fair Value Refer to Note 16 – “Fair Value Measurements” for the estimated fair values of the Company’s notes payable and long-term debt. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 12 Months Ended |
Aug. 31, 2019 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Employee Benefits | Postretirement and Other Employee Benefits Postretirement Benefits The Company has a qualified defined benefit pension plan for employees of Jabil Circuit UK Limited (the “UK plan”). The UK plan, which is closed to new participants, provides benefits based on average employee earnings over a three -year service period preceding retirement and length of employee service. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in UK employee benefit and tax laws plus such additional amounts as are deemed appropriate by the Company. Additionally, as a result of acquiring various other operations in Europe, Asia and Mexico the Company assumed both qualified and unfunded nonqualified retirement benefits covering eligible employees who meet age and service requirements (the “other plans”). The UK plan and other plans are collectively referred to herein as the “plans.” Benefit Obligation and Plan Assets The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2019 2018 Change in projected benefit obligation Beginning projected benefit obligation $ 161,104 $ 167,714 Service cost 1,437 1,063 Interest cost 3,715 3,807 Actuarial loss (gain) 19,060 (6,019 ) Curtailments gain — (998 ) Total benefits paid (6,568 ) (6,211 ) Plan participants’ contributions 35 31 Amendments — 1,864 Acquisitions 6,040 — Effect of conversion to U.S. dollars (10,133 ) (147 ) Ending projected benefit obligation $ 174,690 $ 161,104 Change in plan assets Beginning fair value of plan assets 151,715 146,698 Actual return on plan assets 19,784 8,146 Employer contributions 1,717 1,811 Benefits paid from plan assets (5,435 ) (4,758 ) Plan participants’ contributions 35 31 Effect of conversion to U.S. dollars (9,715 ) (213 ) Ending fair value of plan assets $ 158,101 $ 151,715 Unfunded status $ (16,589 ) $ (9,389 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 368 $ 428 Accrued benefit liability, noncurrent $ 16,221 $ 8,961 Accumulated other comprehensive loss (1) Actuarial loss, before tax $ 24,343 $ 22,387 Prior service cost, before tax $ 690 $ 719 (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2020 . Net Periodic Benefit Cost The following table provides information about the net periodic benefit cost for the plans for fiscal years 2019 , 2018 and 2017 (in thousands): Pension 2019 2018 2017 Service cost $ 1,437 $ 1,063 $ 1,068 Interest cost 3,715 3,807 2,942 Expected long-term return on plan assets (5,291 ) (5,954 ) (4,206 ) Recognized actuarial loss 741 1,127 1,929 Amortization of prior service credit (44 ) (88 ) (138 ) Net settlement loss 634 116 1,472 Net periodic benefit cost $ 1,192 $ 71 $ 3,067 On September 1, 2018, the Company adopted a new accounting standard, which changes the presentation of net periodic benefit cost in the Consolidated Statements of Operation. The Company adopted the standard 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. Assumptions Weighted-average actuarial assumptions used to determine net periodic benefit cost and projected benefit obligation for the plans for the fiscal years 2019 , 2018 and 2017 were as follows: Pension 2019 2018 2017 Net periodic benefit cost: Expected long-term return on plan assets (1) 3.6 % 3.8 % 3.3 % Rate of compensation increase 4.4 % 3.3 % 2.7 % Discount rate 2.2 % 2.1 % 1.9 % Projected benefit obligation: Expected long-term return on plan assets 2.0 % 3.6 % 4.0 % Rate of compensation increase 4.3 % 4.4 % 4.4 % Discount rate (2) 1.7 % 2.2 % 2.3 % (1) The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan. (2) The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover. Plan Assets The Company has adopted an investment policy for a majority of plan assets, which was set by plan trustees who have the responsibility for making investment decisions related to the plan assets. The plan trustees oversee the investment allocation, including selecting professional investment managers and setting strategic targets. The investment objectives for the assets are (1) to acquire suitable assets that hold the appropriate liquidity in order to generate income and capital growth that, along with new contributions, will meet the cost of current and future benefits under the plan, (2) to limit the risk of the plan assets from failing to meet the plan liabilities over the long-term and (3) to minimize the long-term costs under the plan by maximizing the return on the plan assets. Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives with prudent risk parameters. Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due. Within the equity securities class, the investment policy provides for investments in a broad range of publicly traded securities including both domestic and international stocks. Within the debt securities class, the investment policy provides for investments in corporate bonds as well as fixed and variable interest debt instruments. The Company currently expects to achieve a target mix of 35% equity and 65% debt securities in fiscal year 2020 . Fair Value The fair values of the plan assets held by the Company by asset category are as follows (in thousands): August 31, 2019 August 31, 2018 Fair Value Hierarchy Fair Value Asset Allocation Fair Value Asset Allocation Asset Category Cash and cash equivalents (1) Level 1 $ 7,705 5 % $ 6,682 4 % Equity Securities: Global equity securities (2)(3) Level 2 20,215 13 % 35,932 24 % Debt Securities: Corporate bonds (3) Level 2 42,522 27 % 41,088 27 % Government bonds (3) Level 2 69,880 44 % 51,597 34 % Other Investments: Insurance contracts (4) Level 3 17,779 11 % 16,416 11 % Fair value of plan assets $ 158,101 100 % $ 151,715 100 % (1) Carrying value approximates fair value. (2) Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries. (3) Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics. (4) Consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value and is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. Accumulated Benefit Obligation The following table provides information for the plans with an accumulated benefit obligation for fiscal years 2019 and 2018 (in thousands): August 31, 2019 2018 Projected benefit obligation $ 174,690 $ 161,104 Accumulated benefit obligation $ 161,729 $ 152,380 Fair value of plan assets $ 158,101 $ 151,715 Cash Flows The Company expects to make cash contributions between $0.4 million and $0.6 million to its funded pension plans during fiscal year 2020 . The estimated future benefit payments, which reflect expected future service, are as follows (in thousands): Fiscal Year Ended August 31, Amount 2020 $ 5,017 2021 4,788 2022 5,365 2023 5,877 2024 6,274 2025 through 2029 40,828 Profit Sharing, 401(k) Plan and Defined Contribution Plans The Company provides retirement benefits to its domestic employees who have completed a 30-day period of service through a 401(k) plan that provides a matching contribution by the Company. The Company also has defined contribution benefit plans for certain of its international employees. The Company contributed approximately $49.0 million , $40.5 million and $33.6 million for defined contribution plans for the fiscal years ended August 31, 2019 , 2018 and 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Agreements The Company leases certain facilities under non-cancelable operating leases. Lease agreements may contain lease escalation clauses and purchase or renewal options. The Company recognizes scheduled lease escalation clauses over the course of the applicable lease term on a straight-line basis in the Consolidated Statements of Operations. The future minimum lease payments under non-cancelable operating leases as of August 31, 2019 were as follows (in thousands): Fiscal Year Ending August 31, Amount 2020 $ 118,312 2021 102,915 2022 84,729 2023 63,206 2024 51,091 Thereafter 182,932 Total minimum lease payments $ 603,185 Total operating lease expense was approximately $125.4 million , $130.2 million and $117.2 million for fiscal years 2019 , 2018 and 2017 , respectively. Legal Proceedings The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Aug. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Restricted stock units $ 53,766 $ 84,082 $ 42,122 Employee stock purchase plan 7,580 6,891 6,334 Other (1) — 7,538 88 Total $ 61,346 $ 98,511 $ 48,544 (1) For the fiscal year ended August 31, 2018, represents a one-time cash-settled stock award that vested on November 30, 2017. Equity Compensation Plan The 2011 Stock Award and Incentive Plan (the “2011 Plan”) provides for the grant of restricted stock awards, restricted stock unit awards and other stock-based awards. The maximum aggregate number of shares that may be subject to awards under the 2011 Plan is 23,300,000 . Following is a reconciliation of the shares available to be issued under the 2011 Plan as of August 31, 2019 : Shares Available for Grant Balance as of August 31, 2018 12,837,158 Restricted stock units granted, net of forfeitures (1) (796,577 ) Balance as of August 31, 2019 12,040,581 (1) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. Stock Appreciation Rights (“SARS”) The following table summarizes SARS activity from August 31, 2018 through August 31, 2019 : SARS Outstanding Average Intrinsic Value (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Outstanding as of August 31, 2018 156,801 $ 1,748 $ 18.41 3.10 SARS exercised (33,300 ) $ 18.24 Outstanding and exercisable as of August 31, 2019 123,501 $ 1,278 $ 18.46 2.11 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 granted 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. On October 6, 2017, the Company’s Compensation Committee approved the modification of vesting criteria for certain performance-based restricted stock units granted in fiscal year 2015. As a result of the modification, 0.8 million awards vested during the first quarter of fiscal year 2018, which resulted in approximately $24.9 million of stock-based compensation expense recognized. The following table summarizes restricted stock units activity from August 31, 2018 through August 31, 2019 : Shares Weighted- Average Grant-Date Fair Value Outstanding as of August 31, 2018 8,352,307 $ 24.34 Changes during the period Shares granted (1) 3,144,205 $ 25.25 Shares vested (1,983,411 ) $ 25.07 Shares forfeited (2,347,628 ) $ 24.78 Outstanding as of August 31, 2019 7,165,473 $ 26.27 (1) For those shares granted that are based on the achievement of certain performance criteria, the amount represents the maximum number of shares that can vest. During the fiscal year ended August 31, 2019 , the Company awarded approximately 1.6 million time-based restricted stock units, 0.4 million performance-based restricted stock units and 0.4 million market-based restricted stock units based on target performance criteria. The following table represents the restricted stock units and SARS stock-based compensation information for the periods indicated (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Intrinsic value of SARS exercised $ 335 $ 909 $ 5,053 Fair value of restricted stock units vested $ 49,725 $ 62,592 $ 44,010 Tax benefit for stock compensation expense (1) $ 611 $ 1,122 $ 560 Unrecognized stock-based compensation expense — restricted stock units $ 41,778 Remaining weighted-average period for restricted stock units expense 1.3 years (1) Classified as income tax expense within the Consolidated Statements of Operations. Employee Stock Purchase Plan The maximum aggregate number of shares that are available for issuance under the 2011 Employee Stock Purchase Plan (the “ESPP”) is 12,000,000 . Employees are eligible to participate in the ESPP after 90 days of employment with the Company. The ESPP permits eligible employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation, as defined in the ESPP, at a price equal to 85% of the fair value of the common stock at the beginning or end of the offering period, whichever is lower. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. As of August 31, 2019 , 3,397,019 shares remained available for issue under the 2011 ESPP. The fair value of shares issued under the ESPP was estimated on the commencement date of each offering period using the Black-Scholes option pricing model. The following weighted-average assumptions were used in the model for each respective period: Fiscal Year Ended August 31, 2019 2018 2017 Expected dividend yield 0.6 % 0.6 % 0.8 % Risk-free interest rate 2.3 % 1.4 % 0.5 % Expected volatility (1) 28.6 % 23.0 % 33.0 % Expected life 0.5 years 0.5 years 0.5 years (1) The expected volatility was estimated using the historical volatility derived from the Company’s common stock. Dividends The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders during fiscal years 2019 and 2018 : Dividend Dividend Total of Cash Date of Record for Dividend Cash (in thousands, except for per share data) 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 July 18, 2019 $ 0.08 $ 12,724 August 15, 2019 September 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 July 18, 2018 $ 0.08 $ 13,677 August 15, 2018 September 4, 2018 Share Repurchases In September 2019, the Company’s Board of Directors (“the Board”) authorized the repurchase of up to $600.0 million of the Company’s common stock as part of a two-year capital allocation framework (“the 2020 Share Repurchase Program”). From September 24, 2019 through October 14, 2019 , the Company repurchased 874,475 shares, utilizing a total of $30.8 million of the $600.0 million authorized by the Board. Common Stock Outstanding The following represents the common stock outstanding for the fiscal year ended: Fiscal Year Ended August 31, 2019 2018 2017 Common stock outstanding: Beginning balances 164,588,172 177,727,653 186,998,472 Shares issued upon exercise of stock options 11,348 30,832 172,620 Shares issued under employee stock purchase plan 1,282,042 1,105,400 1,228,316 Vesting of restricted stock 1,983,261 2,727,229 2,102,049 Purchases of treasury stock under employee stock plans (489,836 ) (793,052 ) (550,096 ) Treasury shares purchased (1) (13,854,607 ) (16,209,890 ) (12,223,708 ) Ending balances 153,520,380 164,588,172 177,727,653 (1) During fiscal years 2018, 2017 and 2016, the Company’s Board of Directors authorized the repurchase of $350.0 million , $450.0 million and $400.0 million , respectively, of the Company’s common stock under share repurchase programs, which were repurchased during fiscal years 2019, 2018 and 2017, respectively. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 12 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalents with various domestic and foreign financial institutions. Deposits held with the financial institutions may exceed the amount of insurance provided on such deposits, but may generally be redeemed upon demand. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. For trade receivables, the Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains an allowance for potential credit losses on trade receivables. Sales of the Company’s products are concentrated among specific customers. For fiscal year 2019 , the Company’s five largest customers accounted for approximately 42% of its net revenue and 85 customers accounted for approximately 90% of its net revenue. As the Company is a provider of manufacturing services and solutions and products are built based on customer specifications, it is impracticable to provide revenues from external customers for each product and service. Sales to the following customer that accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for the customer, were as follows: Percentage of Net Revenue Fiscal Year Ended August 31, Percentage of Accounts Receivable as of August 31, 2019 2018 2017 2019 2018 Apple, Inc. (1) 22 % 28 % 24 % * * * Amount was less than 10% of total. (1) Sales to this customer were reported in the DMS operating segment. 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 Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. The Company derives its revenue from providing comprehensive electronics design, production and product management services. The chief operating decision maker evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportable segments. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital and risk profiles. The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment is a high volume business that produces products at a quicker rate (i.e. cycle time) and in larger quantities and includes customers primarily in the automotive and transportation, capital equipment, cloud, computing and storage, defense and aerospace, industrial and energy, networking and telecommunications, print and retail, and smart home and appliances industries. The DMS segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies and healthcare. The DMS segment includes customers primarily in the edge devices and accessories, healthcare, mobility and packaging industries. 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, restructuring of securities loss, 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. Total segment assets are defined as accounts receivable, inventories, net, customer-related property, plant and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. The following tables set forth operating segment information (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Net revenue EMS $ 15,430,529 $ 12,268,600 $ 11,077,622 DMS 9,851,791 9,826,816 7,985,499 $ 25,282,320 $ 22,095,416 $ 19,063,121 Fiscal Year Ended August 31, 2019 2018 2017 Segment income and reconciliation of income before tax EMS $ 480,047 $ 451,149 $ 436,110 DMS 396,564 316,998 230,893 Total segment income $ 876,611 $ 768,147 $ 667,003 Reconciling items: Amortization of intangibles (31,923 ) (38,490 ) (35,524 ) Stock-based compensation expense and related charges (61,346 ) (98,511 ) (48,544 ) Restructuring and related charges (25,914 ) (36,902 ) (160,395 ) Distressed customer charges (6,235 ) (32,710 ) (10,198 ) Business interruption and impairment charges, net (1) 2,860 (11,299 ) — Acquisition and integration charges (52,697 ) (8,082 ) — Loss on disposal of subsidiaries — — (2,112 ) Restructuring of securities loss (29,632 ) — — Other expense (53,750 ) (37,563 ) (28,448 ) Interest income 21,460 17,813 12,525 Interest expense (188,730 ) (149,002 ) (138,074 ) Income before income tax $ 450,704 $ 373,401 $ 256,233 (1) Charges, net of insurance proceeds of $2.9 million and $24.9 million , for the fiscal years ended August 31, 2019 and 2018 , respectively, relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted operations in Cayey, Puerto Rico, which is classified as a component of cost of revenue and selling, general and administrative expenses in the Consolidated Statements of Operations. August 31, 2019 August 31, 2018 Total assets EMS $ 4,353,465 $ 3,456,866 DMS 4,988,198 5,378,436 Other non-allocated assets 3,628,812 3,210,339 $ 12,970,475 $ 12,045,641 The Company operates in 30 countries worldwide. Sales to unaffiliated customers are based on the Company location that maintains the customer relationship and transacts the external sale. The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 External net revenue: Singapore $ 6,718,495 $ 7,193,414 $ 5,585,837 China 4,958,462 4,585,355 4,012,950 Mexico 4,526,456 3,533,437 3,207,059 Malaysia 1,681,911 1,389,851 1,119,384 Hungary 809,031 897,033 944,448 Other 3,489,398 2,651,632 2,547,750 Foreign source revenue 22,183,753 20,250,722 17,417,428 U.S. 3,098,567 1,844,694 1,645,693 Total $ 25,282,320 $ 22,095,416 $ 19,063,121 August 31, 2019 2018 Long-lived assets: China $ 1,579,904 $ 1,770,732 Mexico 418,641 256,086 Singapore 156,028 191,506 Malaysia 154,386 113,011 Taiwan 123,608 130,062 Hungary 85,809 91,063 Spain 77,855 79,991 Poland 57,794 60,847 Other 412,498 334,466 Long-lived assets related to foreign operations 3,066,523 3,027,764 U.S. 1,146,335 1,077,128 Total $ 4,212,858 $ 4,104,892 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Aug. 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 $334.1 million and $293.4 million as of August 31, 2019 and 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 September 3, 2019 and August 31, 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 August 31, 2019 and 2018 , was $2.5 billion and $2.3 billion , respectively. Refer to Note 16 – “Fair Value Measurements” for the fair values and classification of the Company’s derivative instruments. 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 losses from forward contracts recorded in the Consolidated Statements of Operations for the periods indicated (in thousands): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Loss on Derivatives Recognized in Net Income Amount of Loss Recognized in Net Income on Derivatives Fiscal Year Ended August 31 2019 2018 2017 Forward foreign exchange contracts (1) Cost of revenue $ (29,557 ) $ (27,774 ) $ (95,665 ) (1) For the fiscal years ended August 31, 2019 , 2018 , and 2017 , the Company recognized $14.9 million , $36.7 million , and $90.3 million , respectively, of foreign currency gains in cost of revenue, which are offset by the losses 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 August 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 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 2017 Term Loan Facility and the three-month LIBOR for the 2018 Term Loan Facility. |
Restructuring and Related Charg
Restructuring and Related Charges | 12 Months Ended |
Aug. 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): Fiscal Year Ended August 31, 2019 2018 2017 (2) Employee severance and benefit costs $ 16,029 $ 16,269 $ 56,834 Lease costs (41 ) 1,596 3,966 Asset write-off costs (3,566 ) 16,264 94,346 Other costs 13,492 2,773 5,249 Total restructuring and related charges (1) $ 25,914 $ 36,902 $ 160,395 (1) Includes $21.5 million , $16.3 million and $51.3 million recorded in the EMS segment, $2.6 million , $16.6 million and $82.4 million recorded in the DMS segment and $1.8 million , $4.0 million and $26.7 million of non-allocated charges for the fiscal years ended August 31, 2019 , 2018 and 2017 , respectively. Except for asset write-off costs, all restructuring and related charges are cash settled. (2) Fiscal year ended August 31, 2017, includes expenses related to the 2017 and 2013 Restructuring Plans. 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 complete as of August 31, 2019. The table below sets forth the cumulative restructuring and related charges incurred through August 31, 2019 for the 2017 Restructuring Plan (in thousands): 2017 Restructuring Plan (1) Employee severance and benefit costs $ 74,656 Lease costs 5,521 Asset write-off costs 106,974 Other related costs 7,395 Total restructuring and related charges $ 194,546 (1) Includes $62.3 million allocated to the EMS segment, $101.6 million allocated to the DMS segment and $30.7 million of unallocated costs. The tables below summarize 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, 2017 $ 33,580 $ 1,665 $ — $ 3,143 $ 38,388 Restructuring related charges 16,269 1,596 16,264 2,773 36,902 Asset write-off charge and other non-cash activity (127 ) 525 (16,264 ) 25 (15,841 ) Cash payments (31,591 ) (1,102 ) — (5,419 ) (38,112 ) Balance as of August 31, 2018 18,131 2,684 — 522 21,337 Restructuring related charges 16,029 (41 ) (3,566 ) 2,071 14,493 Asset write-off charge and other non-cash activity (494 ) — 3,566 (18 ) 3,054 Cash payments (30,504 ) (663 ) — (1,786 ) (32,953 ) Balance as of August 31, 2019 $ 3,162 $ 1,980 $ — $ 789 $ 5,931 2020 Restructuring Plan On September 20, 2019, the Company’s Board of Directors formally approved a restructuring plan to realign the Company’s global capacity support infrastructure, particularly in the Company’s mobility footprint in China, in order to optimize organizational effectiveness. This action includes headcount reductions and capacity realignment (the “2020 Restructuring Plan”). The 2020 Restructuring Plan reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain locations are still subject to consultation with the Company’s employees and their representatives. The Company currently expects to recognize approximately $85.0 million in pre-tax restructuring and other related costs primarily over the course of the Company’s fiscal year 2020. This information will be subject to the finalization of timetables for the transition of functions, consultation with employees and their representatives as well as the statutory severance requirements of the particular jurisdictions impacted, and the amount and timing of the actual charges may vary due to a variety of factors. The Company’s estimates for the charges discussed above exclude any potential income tax effects. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Aug. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Fiscal year 2019 Acquisitions 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 $167.6 million and total liabilities assumed of $14.4 million were recorded at their estimated fair values as of the acquisition dates. The final closing, which is subject to customary closing conditions, is 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 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. On September 30, 2019 the Company completed the third closing of its acquisition of certain assets of JJMD for a cash payment of $117.1 million , primarily for inventory and the assumption of certain employee liabilities. The purchase price for the third closing is subject to certain post-closing adjustments based on conditions within the Framework Agreement. Fiscal year 2018 Acquisitions 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 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. Fiscal year 2017 Acquisitions On March 1, 2017, the Company completed the acquisition of Lewis Engineering, which was not deemed to be significant. The acquired business expanded the Company’s capabilities in precision machining, manufacturing and design engineering. The aggregate purchase price of the acquisition totaled approximately $ 31.4 million in cash. The acquisition was accounted for as a business combination using the acquisition method of accounting. Assets acquired of $ 32.3 million , including $ 8.2 million in goodwill and $ 14.6 million in intangible assets, and liabilities assumed of $ 0.9 million were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired assets and assumed liabilities of $ 8.2 million was recorded to goodwill and was fully allocated to the DMS segment. The majority of the goodwill is currently expected to be deductible for income tax purposes. The Company expensed transaction costs in connection with the acquisition of approximately $ 0.8 million during the fiscal year ended August 31, 2017. The results of operations of the acquired business were included in the Company’s consolidated financial results beginning on the date of the acquisition. Pro forma information has not been provided as the acquisition is not deemed to be significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Measurements on a Recurring Basis The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: (in thousands) Fair Value Hierarchy August 31, 2019 August 31, 2018 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 27,804 $ 21,412 Prepaid expenses and other current assets: Short-term investments Level 1 14,088 — Deferred purchase price receivables (Note 2) Level 3 (2) — 533,113 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 13) Level 2 (3) 904 225 Derivatives not designated as hedging instruments (Note 13) Level 2 (3) 6,878 10,125 Other assets: Senior Non-Convertible Preferred Stock Level 3 (4) 33,102 47,300 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 13) Level 2 (3) $ 15,999 $ 13,364 Derivatives not designated as hedging instruments (Note 13) Level 2 (3) 55,391 46,171 Interest rate swaps: Derivatives designated as hedging instruments (Note 13) Level 2 (5) 5,918 117 Other liabilities: Forward interest rate swaps: Derivatives designated as hedging instruments (Note 13) Level 2 (5) 35,045 — (1) Consist of investments that are readily convertible to cash with original maturities of 90 days or less. (2) Recorded initially at fair value using unobservable inputs, determined primarily using discounted cash flows, and due to its credit quality and short-term maturity, the fair value 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 calculation. (3) 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. (4) During the fourth quarter of fiscal year 2019, the Company exchanged its investment in the Senior Non-Convertible Preferred Stock of iQor Holdings, Inc. (“iQor”) in association with iQor’s previously announced sale of its international logistics and product service assets. Prior to the restructuring, the Senior Non-Convertible Preferred Stock had a face value of $50.0 million , accumulated dividends at an annual rate of 8 percent and was redeemable on March 31, 2023 or upon a change in control. The restructured Senior Non-Convertible Preferred Stock has a face value of $55.0 million and is redeemable at iQor’s option or upon change of control for $55.0 million until December 31, 2023, $65.0 million during calendar year 2024 and is mandatorily redeemable for $75.0 million on April 1, 2025. As a result of the restructuring, the Company recognized a restructuring of securities loss of $29.6 million , which primarily consisted of a credit loss. The credit loss was estimated utilizing a probability-weighted discounted cash flow model incorporating the concessions and modifications made as part of the restructuring, discounted at the loan's effective interest rate. The Senior Non-Convertible Preferred Stock is valued each reporting period using unobservable inputs based on a discounted cash flow model and is classified as an available for sale debt security with any unrealized loss recorded to AOCI. As of August 31, 2019, the unobservable inputs have an immaterial impact on the fair value calculation. As of August 31, 2019 , the amortized cost basis approximates fair value. (5) Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. The carrying amounts of borrowings under credit facilities and under loans approximates fair value as interest rates on these instruments approximates current market rates. Notes payable and long-term debt is carried at amortized cost; however, the Company estimates the fair value of notes payable and long-term debt for disclosure purposes. The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated: August 31, 2019 August 31, 2018 (in thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 8) 5.625% Senior Notes Level 2 (1) $ 398,886 $ 416,000 $ 397,995 $ 415,704 4.700% Senior Notes Level 2 (1) 498,004 525,890 497,350 503,545 4.900% Senior Notes Level 3 (2) 299,057 318,704 298,814 306,535 3.950% Senior Notes Level 2 (1) 494,825 509,845 494,208 476,010 (1) The fair value estimates are based upon observable market data. (2) This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows. Refer to Note 9 - “Postretirement and Other Employee Benefits” for disclosure surrounding the fair value of the Company’s pension plan assets. |
New Accounting Guidance
New Accounting Guidance | 12 Months Ended |
Aug. 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 18 – “Revenue” to the 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 (i.e. beneficial interest) 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 , $2.0 billion , and $2.7 billion for the fiscal years ended August 31, 2019 , 2018 and 2017 , 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 the second quarter of fiscal year 2018, the Securities and Exchange Commission (“SEC”) staff issued SAB 118, which provides guidance on accounting for the tax effects of the 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 4 - “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. 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. Upon adoption, the Company expects to recognize right-of-use assets and lease liabilities, respectively, in the range of approximately $350.0 million to $500.0 million . The Company is continuing to assess implementation of changes to its processes, policies and internal controls to meet the requirements of the new standard. The adoption of this standard is not expected to have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. 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. 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. 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. |
Revenue
Revenue | 12 Months Ended |
Aug. 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 recognizes revenue over time for the majority of its contracts with customers which results in revenue for those customers being recognized earlier than under the previous guidance. Revenue for all other contracts with customers continues 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 are 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 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 Balance Sheets as of August 31, 2019 (in thousands): August 31, 2019 As reported Balance without the adoption of ASU 2014-09 Assets Contract assets (1) $ 911,940 $ — Inventories, net (1) $ 3,023,003 $ 3,761,591 Prepaid expenses and other current assets (1)(2) $ 501,573 $ 514,769 Deferred income taxes (1) $ 198,827 $ 202,791 Liabilities Contract liabilities (2)(3) $ 511,329 $ — Deferred income (2)(3)(4) $ — $ 521,035 Other accrued expenses (3)(4) $ 1,877,908 $ 1,868,201 Deferred income taxes (1) $ 115,818 $ 111,304 Equity Retained earnings (1)(2) $ 2,037,037 $ 1,885,360 (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 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 fiscal year ended August 31, 2019 (in thousands): Fiscal Year Ended August 31, 2019 As reported Balance without the adoption of ASU 2014-09 Net revenue (1) $ 25,282,320 $ 24,864,754 Cost of revenue (2) $ 23,368,919 $ 23,057,603 Operating income $ 701,356 $ 595,105 Income tax expense $ 161,230 $ 164,054 Net income $ 289,474 $ 180,399 (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): Fiscal Year Ended August 31, 2019 EMS DMS Total Timing of transfer Point in time $ 2,877,082 $ 6,055,716 $ 8,932,798 Over time $ 12,553,447 $ 3,796,075 $ 16,349,522 Total $ 15,430,529 $ 9,851,791 $ 25,282,320 Contract Balances No impairment costs related to contract assets were recognized during the fiscal year ended August 31, 2019 . Revenue recognized during the fiscal year ended August 31, 2019 that was included in the contract liability balance as of September 1, 2018 was $404.0 million . Fulfillment Costs As of August 31, 2019 , capitalized costs to fulfill are $67.1 million . Amortization of fulfillment cost was $48.6 million during the fiscal year ended August 31, 2019 . No impairments related to fulfillments costs were recognized during the fiscal year ended August 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. |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Aug. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | SCHEDULE II JABIL INC. AND SUBSIDIARIES SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period Additions and Adjustments Charged to Costs and Expenses Additions/ (Reductions) Charged to Other Accounts Write-offs Balance at End of Period Allowance for uncollectible accounts receivable: Fiscal year ended August 31, 2019 $ 15,181 $ 15,867 $ — $ (13,827 ) $ 17,221 Fiscal year ended August 31, 2018 $ 14,134 $ 12,545 $ — $ (11,498 ) $ 15,181 Fiscal year ended August 31, 2017 $ 11,094 $ 6,255 $ — $ (3,215 ) $ 14,134 Balance at Beginning of Period Additions and Adjustments Charged to Costs and Expenses Additions/ (Reductions) Charged to Other Accounts Write-offs Balance at End of Period Reserve for excess and obsolete inventory: Fiscal year ended August 31, 2019 $ 60,940 $ 34,091 $ — $ (25,478 ) $ 69,553 Fiscal year ended August 31, 2018 $ 46,013 $ 35,538 $ — $ (20,611 ) $ 60,940 Fiscal year ended August 31, 2017 $ 32,221 $ 46,030 $ — $ (32,238 ) $ 46,013 Balance at Beginning of Period Additions Charged to Costs and Expenses (1) Additions/ (Reductions) Charged to Other Accounts (2) Reductions Charged to Costs and Expenses (3) Balance at End of Period Valuation allowance for deferred taxes: Fiscal year ended August 31, 2019 $ 223,487 $ 22,750 $ 58,117 $ (16,750 ) $ 287,604 Fiscal year ended August 31, 2018 $ 285,559 $ 18,418 $ (886 ) $ (79,604 ) $ 223,487 Fiscal year ended August 31, 2017 $ 344,828 $ 65,300 $ (97,203 ) $ (27,366 ) $ 285,559 (1) During the fiscal years ended August 31, 2019 , 2018 and 2017 , the additions charged to costs and expenses primarily relate to the increase of deferred tax assets for sites with existing valuation allowances. (2) During the fiscal year ended August 31, 2019 , the additions charged to other accounts primarily relate to the increase of net operating loss carry forwards due to the release of a non-U.S. unrecognized tax benefit. During the fiscal year ended August 31, 2017, the reductions charged to other accounts primarily relate to the decrease of net operating loss carry forwards due to non-U.S. unrecognized tax benefits and a non-U.S. tax audit. (3) During the fiscal years ended August 31, 2019 and 2018 , the reductions charged to costs and expenses primarily relate to the decrease of U.S. net operating loss carry forwards and tax credits due to utilization against the one-time transition tax as a result of the Tax Act. During the fiscal year ended August 31, 2019, an additional reduction charged to costs and expenses relates to the $17.5 million income tax benefit for the reversal of a U.S. valuation allowance due to an intangible asset reclassification from indefinite-life to finite-life. During the fiscal year ended August 31, 2017, the reductions charged to costs and expenses primarily relate to the release of certain non-U.S. valuation allowances. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts and operations of the Company, and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation. |
Use of Accounting Estimates | Use of Accounting Estimates Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of investments that are readily convertible to cash with original maturities of 90 days or less. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of trade receivables and other miscellaneous receivables. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. Allowances of $17.2 million and $15.2 million were recorded as of August 31, 2019 and 2018 , respectively. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for doubtful accounts are made as necessary. |
Contract Balances | 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 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. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first in, first out (FIFO) basis) and net realizable value. Inventory is valued based on current and forecasted usage, customer inventory-related contractual obligations and other lower of cost and net realizable value considerations. If actual market conditions or customer product demands are less favorable than those projected, additional valuation adjustments may be necessary. |
Fulfillment Costs | 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. 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. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Certain equipment held under capital leases is classified as property, plant and equipment and the related obligation is recorded as accrued expenses and other liabilities on the Consolidated Balance Sheets. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Operations. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of loss, if any. The recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount to the fair value. The Company determines the fair value of its indefinite-lived intangible assets principally based on a variation of the income approach, known as the relief from royalty method. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, the indefinite-lived intangible asset is considered impaired. Business combinations can also result in other intangible assets being recognized. Finite-lived intangible assets are amortized on either a straight-line or accelerated basis over their estimated useful life and include contractual agreements and customer relationships, tradenames and intellectual property. No significant residual values are estimated for the amortizable intangible assets. |
Long-lived Assets | Long-lived Assets Long-lived assets, such as property, plant and equipment, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparing its carrying amount to the undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value, which is generally determined as the present value of estimated future cash flows or as the appraised value. |
Derivative Instruments | Derivative Instruments All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of accumulated other comprehensive income (“AOCI”), net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective portion of the gain or loss is recognized immediately in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2019 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service (Cost) Credit 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 (21,729 ) (67,773 ) (3,753 ) 79 (24,508 ) (117,684 ) Amounts reclassified from AOCI — 20,259 741 (44 ) 33,333 54,289 Other comprehensive (loss) income (1) (21,729 ) (47,514 ) (3,012 ) 35 8,825 (63,395 ) Balance as of August 31, 2019 $ (14,298 ) $ (39,398 ) $ (28,033 ) $ (608 ) $ (457 ) $ (82,794 ) (1) Amounts are net of tax, which are immaterial. The following table sets forth the amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in thousands): Fiscal Year Ended August 31, Comprehensive Income Components Financial Statement Line Item 2019 2018 2017 Foreign currency translation adjustment Operating income $ — $ — $ 5,947 Realized losses (gains) on derivative instruments: (3) Foreign exchange contracts Cost of revenue 21,982 (9,379 ) 4,799 Interest rate contracts Interest expense (1,723 ) (13,697 ) 3,950 Actuarial loss (1) 741 1,127 1,929 Prior service credit (1) (44 ) (88 ) (138 ) Available for sale securities (2) 33,333 — 10,139 Total amounts reclassified from AOCI (4) $ 54,289 $ (22,037 ) $ 26,626 (1) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information. (2) The portions of AOCI reclassified into earnings during the fiscal years ended August 31, 2019 and 2017 for available for sale securities were due to a restructuring of securities loss and an other than temporary impairments on securities, respectively, and were recorded to restructuring of securities loss and other expense, respectively. (3) The Company expects to reclassify $17.0 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (4) Amounts are net of tax, which are immaterial for the fiscal years ended August 31, 2019 and 2017 . The amount for the fiscal year ended August 31, 2018 includes a reduction to income tax expense related to derivative instruments of $14.8 million . |
Foreign Currency Transactions | Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. |
Revenue Recognition | Revenue Recognition Effective September 1, 2018, the Company’s revenue recognition accounting policies changed in conjunction with the adoption of ASU 2014-09, Revenue Recognition (Topic 606). For further discussion, refer to Note 18 - “Revenue” to the Consolidated Financial Statements. 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 the Company's 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 the Company's 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 the Company's 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 the Company incurs costs on its 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. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The stock-based compensation expense for time-based and performance-based restricted stock unit awards (“restricted stock units”) is measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. For restricted stock units with performance conditions, stock-based compensation expense is originally based on the number of shares that would vest if the Company achieved 100% of the performance goal, which is the intended outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition. If it becomes probable, based on the Company’s performance, that more or less than the current estimate of the awarded shares will vest, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate in the period that such probability changes. The stock-based compensation expense for market-based restricted stock units is measured at fair value on the date of grant. The market conditions are considered in the grant date fair value using a Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The Company currently expects to satisfy share-based awards with registered shares available to be issued. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company considers future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. |
Earnings Per Share | Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to Jabil Inc. by the weighted average number of shares of common stock 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 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 criterion 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is categorized in one of three levels based on the lowest level of significant input used. Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. |
Recently Adopted Accounting Guidance and 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 18 – “Revenue” to the 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 (i.e. beneficial interest) 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 , $2.0 billion , and $2.7 billion for the fiscal years ended August 31, 2019 , 2018 and 2017 , 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 the second quarter of fiscal year 2018, the Securities and Exchange Commission (“SEC”) staff issued SAB 118, which provides guidance on accounting for the tax effects of the 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 4 - “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. 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. Upon adoption, the Company expects to recognize right-of-use assets and lease liabilities, respectively, in the range of approximately $350.0 million to $500.0 million . The Company is continuing to assess implementation of changes to its processes, policies and internal controls to meet the requirements of the new standard. The adoption of this standard is not expected to have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. 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. 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. 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. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Components of Property, Plant and Equipment | Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Property, plant and equipment consists of the following (in thousands): August 31, 2019 2018 Land and improvements $ 146,719 $ 144,136 Buildings 962,559 849,975 Leasehold improvements 1,092,787 1,013,428 Machinery and equipment 4,262,015 3,983,025 Furniture, fixtures and office equipment 209,257 192,243 Computer hardware and software 671,252 601,955 Transportation equipment 16,423 17,215 Construction in progress 83,234 42,984 7,444,246 6,844,961 Less accumulated depreciation and amortization 4,110,496 3,646,945 $ 3,333,750 $ 3,198,016 |
Summary of Changes in AOCI | The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2019 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service (Cost) Credit 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 (21,729 ) (67,773 ) (3,753 ) 79 (24,508 ) (117,684 ) Amounts reclassified from AOCI — 20,259 741 (44 ) 33,333 54,289 Other comprehensive (loss) income (1) (21,729 ) (47,514 ) (3,012 ) 35 8,825 (63,395 ) Balance as of August 31, 2019 $ (14,298 ) $ (39,398 ) $ (28,033 ) $ (608 ) $ (457 ) $ (82,794 ) (1) Amounts are net of tax, which are immaterial. |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table sets forth the amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in thousands): Fiscal Year Ended August 31, Comprehensive Income Components Financial Statement Line Item 2019 2018 2017 Foreign currency translation adjustment Operating income $ — $ — $ 5,947 Realized losses (gains) on derivative instruments: (3) Foreign exchange contracts Cost of revenue 21,982 (9,379 ) 4,799 Interest rate contracts Interest expense (1,723 ) (13,697 ) 3,950 Actuarial loss (1) 741 1,127 1,929 Prior service credit (1) (44 ) (88 ) (138 ) Available for sale securities (2) 33,333 — 10,139 Total amounts reclassified from AOCI (4) $ 54,289 $ (22,037 ) $ 26,626 (1) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information. (2) The portions of AOCI reclassified into earnings during the fiscal years ended August 31, 2019 and 2017 for available for sale securities were due to a restructuring of securities loss and an other than temporary impairments on securities, respectively, and were recorded to restructuring of securities loss and other expense, respectively. (3) The Company expects to reclassify $17.0 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (4) Amounts are net of tax, which are immaterial for the fiscal years ended August 31, 2019 and 2017 . The amount for the fiscal year ended August 31, 2018 includes a reduction to income tax expense related to derivative instruments of $14.8 million . |
Dilutive Shares Outstanding Not Included in the Computation of Earnings Per Share | 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): Fiscal Year Ended August 31, 2019 2018 2017 Stock appreciation rights — — 265 Restricted stock units 796 2,426 4,539 |
Trade Accounts Receivable Sec_2
Trade Accounts Receivable Securitization and Sale Programs (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Asset Backed Securitization Programs Key Terms | Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of Net Cash Proceeds (in millions) (1) Expiration Date 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): Fiscal Year Ended August 31, 2019 (3) 2018 2017 Trade accounts receivable sold $ 4,057 $ 8,386 $ 8,878 Cash proceeds received (1) $ 4,031 $ 7,838 $ 8,300 Pre-tax losses on sale of receivables (2) $ 26 $ 15 $ 9 Deferred purchase price receivables as of August 31 $ — $ 533 $ 569 (1) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Consolidated Statements of Operations. (3) 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 | 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, 2020 F $ 150.0 Uncommitted January 25, 2020 (5) G $ 50.0 Uncommitted February 23, 2023 (2) H $ 100.0 Uncommitted August 10, 2020 (6) I $ 100.0 Uncommitted July 21, 2020 (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 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): Fiscal Year Ended August 31, 2019 2018 2017 Trade accounts receivable sold $ 6,751 $ 5,480 $ 2,968 Cash proceeds received $ 6,723 $ 5,463 $ 2,962 Pre-tax losses on sale of receivables (1) $ 28 $ 17 $ 6 (1) Recorded to other expense within the Consolidated Statements of Operations. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): August 31, 2019 August 31, 2018 Raw materials $ 2,310,081 $ 2,070,569 Work in process 468,217 788,742 Finished goods 314,258 659,335 Reserve for excess and obsolete inventory (69,553 ) (60,940 ) Inventories, net $ 3,023,003 $ 3,457,706 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Tax Expense | Income (loss) before income tax expense is summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Domestic (1) $ (415,707 ) $ (426,897 ) $ (373,690 ) Foreign (1) 866,411 800,298 629,923 $ 450,704 $ 373,401 $ 256,233 (1) Includes the elimination of intercompany foreign dividends paid to the U.S. |
Income Tax Expense (Benefit) | Income tax expense (benefit) is summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Current: Domestic - federal $ (23,675 ) $ 69,080 $ 2,436 Domestic - state 1,383 134 12 Foreign 175,993 178,790 188,872 Total current 153,701 248,004 191,320 Deferred: Domestic - federal (8,000 ) (24,342 ) 253 Domestic - state (2,202 ) 93 30 Foreign 17,731 62,105 (62,537 ) Total deferred 7,529 37,856 (62,254 ) Total income tax expense $ 161,230 $ 285,860 $ 129,066 |
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense | Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is summarized below: Fiscal Year Ended August 31, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 25.7 % 35.0 % State income taxes, net of federal tax benefit (1.7 ) (1.5 ) (3.3 ) Impact of foreign tax rates (1)(2) (9.9 ) (19.3 ) (42.7 ) Permanent impact of non-deductible cost 1.8 5.9 2.9 Income tax credits (1) (3.1 ) (2.8 ) (6.3 ) Changes in tax rates on deferred tax assets and liabilities (3) 0.2 4.0 0.3 One-time transition tax related to the Tax Act (4) (0.5 ) 62.2 — Indefinite reinvestment assertion impact (4) 0.9 5.8 — Valuation allowance (5) 1.3 (16.4 ) 14.8 Non-deductible equity compensation 1.4 5.5 4.5 Impact of intercompany charges and dividends (6) 10.4 7.3 38.3 Reclassification of stranded tax effects in AOCI — (4.0 ) — Global Intangible Low-Taxed Income (7) 10.4 — — Other, net 3.6 4.2 6.9 Effective income tax rate 35.8 % 76.6 % 50.4 % (1) The Company has been granted tax incentives for various subsidiaries in Brazil, China, Malaysia, Poland, Singapore and Vietnam, which expire at various dates through fiscal year 2031 and are subject to certain conditions with which the Company expects to comply. These tax incentives resulted in a tax benefit of approximately $67.3 million ( $0.43 per basic share), $52.1 million ( $0.30 per basic share) and $38.6 million ( $0.22 per basic share) during the fiscal years ended August 31, 2019 , 2018 and 2017 , respectively. (2) For the fiscal years ended August 31, 2019 and 2018 , the decrease in the impact of foreign tax rates was primarily due to a decrease in the U.S. federal statutory income tax rate due to the Tax Act. (3) For the fiscal year ended August 31, 2018 , the increase in the changes in tax rates on deferred tax assets and liabilities was primarily due to the Tax Act, excluding the impact of the enacted rate change on the U.S. valuation allowance. (4) The indefinite reinvestment assertion impact for the fiscal year ended August 31, 2018 is related to the Tax Act as further discussed below. (5) The valuation allowance change for the fiscal years ended August 31, 2019 and 2018 was primarily due to utilization of domestic federal net operating losses and tax credits against the one-time transition tax and the change in enacted tax rate applied to U.S. deferred tax assets and liabilities for the fiscal year ended August 31, 2018 . The increase for the fiscal year ended August 31, 2019 was partially offset by an income tax benefit of $17.5 million for the reversal of a U.S. valuation allowance due to an intangible asset reclassification from indefinite-life to finite-life. (6) For the fiscal year ended August 31, 2018 , the decrease in the impact of intercompany charges and dividends was due to a change in the U.S. taxation of foreign dividends as a result of the Tax Act. (7) GILTI applied beginning in the fiscal year ended August 31, 2019 and primarily related to the utilization of current year U.S. federal operating losses. |
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 (benefit) expense adjustment - recognized in fiscal year 2019 $ (19.7 ) $ 1.6 $ — $ (0.3 ) $ (18.4 ) Income tax expense (benefit) related to the Tax Act $ 46.2 $ (8.9 ) $ 85.0 $ 1.6 $ 123.9 (1) The calculation of the one-time transition tax is based upon 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 adjustments during the fiscal year ended August 31, 2019 were primarily related to further analysis of the Company’s utilization of foreign tax credits and applicable limitations. (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. |
Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities are summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 Deferred tax assets: Net operating loss carry forward $ 183,297 $ 119,259 Receivables 6,165 7,111 Inventories 9,590 7,634 Compensated absences 10,401 8,266 Accrued expenses 81,731 81,912 Property, plant and equipment, principally due to differences in depreciation and amortization 66,268 97,420 Domestic federal and state tax credits 42,464 70,153 Foreign jurisdiction tax credits 15,345 25,887 Equity compensation – Domestic 7,617 7,566 Equity compensation – Foreign 2,179 2,401 Domestic federal interest carry forward 5,853 — Cash flow hedges 9,878 — Unrecognized capital loss carry forward 7,799 — Revenue recognition 19,195 — Other 21,907 18,176 Total deferred tax assets before valuation allowances 489,689 445,785 Less valuation allowances (287,604 ) (223,487 ) Net deferred tax assets $ 202,085 $ 222,298 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries 75,387 74,654 Intangible assets 39,242 39,122 Other 4,447 4,655 Total deferred tax liabilities $ 119,076 $ 118,431 Net deferred tax assets $ 83,009 $ 103,867 |
Summary of Tax Credit Carryforwards | The amount and expiration dates of income tax net operating loss carryforwards and tax credit carryforwards, which are available to reduce future taxes, if any, as of August 31, 2019 are as follows: (dollars in thousands) Last Fiscal Year of Expiration Amount Income tax net operating loss carryforwards: (1) Domestic - state 2039 $ 57,299 Foreign 2039 or indefinite $ 565,609 Tax credit carryforwards: (1) Domestic - federal 2029 $ 39,784 Domestic - state 2027 $ 3,313 Foreign (2) 2027 or indefinite $ 15,345 (1) Net of unrecognized tax benefits. (2) Calculated based on the deferral method and includes foreign investment tax credits. |
Summary of Operating Loss Carryforwards | The amount and expiration dates of income tax net operating loss carryforwards and tax credit carryforwards, which are available to reduce future taxes, if any, as of August 31, 2019 are as follows: (dollars in thousands) Last Fiscal Year of Expiration Amount Income tax net operating loss carryforwards: (1) Domestic - state 2039 $ 57,299 Foreign 2039 or indefinite $ 565,609 Tax credit carryforwards: (1) Domestic - federal 2029 $ 39,784 Domestic - state 2027 $ 3,313 Foreign (2) 2027 or indefinite $ 15,345 (1) Net of unrecognized tax benefits. (2) Calculated based on the deferral method and includes foreign investment tax credits. |
Reconciliations of Unrecognized Tax Benefits | Reconciliation of the unrecognized tax benefits is summarized below (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Beginning balance $ 256,705 $ 201,355 $ 149,898 Additions for tax positions of prior years 20,158 14,465 2,155 Reductions for tax positions of prior years (1) (106,252 ) (21,045 ) (12,233 ) Additions for tax positions related to current year (2) 35,769 81,866 77,807 Cash settlements — (1,659 ) (2,298 ) Reductions from lapses in statutes of limitations (2,570 ) (7,496 ) (10,446 ) Reductions from settlements with taxing authorities (3) (35,582 ) (5,928 ) (6,061 ) Foreign exchange rate adjustment (3,845 ) (4,853 ) 2,533 Ending balance $ 164,383 $ 256,705 $ 201,355 Unrecognized tax benefits that would affect the effective tax rate (if recognized) $ 93,237 $ 117,455 $ 75,223 (1) The reductions for tax positions of prior years for the fiscal year ended August 31, 2019 are primarily related to a non-U.S. taxing authority ruling related to certain non-U.S. net operating loss carry forwards, offset with a valuation allowance and the impacts of the Tax Act. (2) The additions for the fiscal years ended August 31, 2019 and 2018 are primarily related to the impacts of the Tax Act and taxation of certain intercompany transactions. The additions for the fiscal year ended August 31, 2017 are primarily related to certain non-U.S. net operating loss carry forwards, previously offset with a valuation allowance, that can no longer be recognized due to an internal restructuring. (3) The reductions from settlements with taxing authorities for the fiscal year ended August 31, 2019 are primarily related to the settlement of a U.S. audit. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Property, plant and equipment consists of the following (in thousands): August 31, 2019 2018 Land and improvements $ 146,719 $ 144,136 Buildings 962,559 849,975 Leasehold improvements 1,092,787 1,013,428 Machinery and equipment 4,262,015 3,983,025 Furniture, fixtures and office equipment 209,257 192,243 Computer hardware and software 671,252 601,955 Transportation equipment 16,423 17,215 Construction in progress 83,234 42,984 7,444,246 6,844,961 Less accumulated depreciation and amortization 4,110,496 3,646,945 $ 3,333,750 $ 3,198,016 |
Depreciation and Maintenance and Repair Expenses | Depreciation and maintenance and repair expenses were as follows for the periods indicated (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Depreciation expense $ 739,910 $ 735,213 $ 724,856 Maintenance and repair expense $ 288,309 $ 266,691 $ 234,332 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Allocated to Reportable Segments | The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”), during the fiscal years ended August 31, 2019 and 2018 (in thousands): EMS DMS Total Balance as of August 31, 2017 $ 52,574 $ 555,610 $ 608,184 Acquisitions and adjustments (1) 30,763 (8,186 ) 22,577 Change in foreign currency exchange rates (667 ) (2,349 ) (3,016 ) Balance as of August 31, 2018 82,670 545,075 627,745 Change in foreign currency exchange rates (702 ) (4,788 ) (5,490 ) Balance as of August 31, 2019 $ 81,968 $ 540,287 $ 622,255 (1) Includes $8.2 million of goodwill reallocated between DMS and EMS during fiscal year 2018. |
Schedule of Intangible Assets and Goodwill | The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in thousands): August 31, 2019 August 31, 2018 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Goodwill $ 1,642,077 $ 1,019,822 $ 1,647,567 $ 1,019,822 The following table presents the Company’s total purchased intangible assets as of August 31, 2019 and 2018 (in thousands): Weighted Average Amortization Period (in years) August 31, 2019 August 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contractual agreements and customer relationships 12 $ 292,797 $ (175,199 ) $ 117,598 $ 289,947 $ (153,415 ) $ 136,532 Intellectual property 6 173,771 (157,606 ) 16,165 168,181 (148,672 ) 19,509 Finite-lived trade names Not applicable 77,536 (5,036 ) 72,500 5,091 (5,091 ) — Trade names Indefinite 50,590 — 50,590 123,090 — 123,090 Total intangible assets 11 $ 594,694 $ (337,841 ) $ 256,853 $ 586,309 $ (307,178 ) $ 279,131 |
Estimated Future Amortization Expense | The estimated future amortization expense is as follows (in thousands): Fiscal Year Ended August 31, 2020 $ 54,165 2021 43,780 2022 28,291 2023 25,877 2024 10,976 Thereafter 43,174 Total $ 206,263 |
Accrued Expenses (Table)
Accrued Expenses (Table) | 12 Months Ended |
Aug. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): August 31, 2019 August 31, 2018 Contract liabilities $ 511,329 $ — Deferred income — 691,365 Accrued compensation and employee benefits 600,907 570,400 Obligation associated with securitization programs 475,251 — Other accrued expenses 1,402,657 1,000,979 Accrued expenses $ 2,990,144 $ 2,262,744 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes payable and long-term debt outstanding as of August 31, 2019 and 2018 are summarized below (in thousands): Maturity Date August 31, 2019 August 31, 2018 5.625% Senior Notes (1)(2) Dec 15, 2020 398,886 397,995 4.700% Senior Notes (1)(2) Sep 15, 2022 498,004 497,350 4.900% Senior Notes (1) Jul 14, 2023 299,057 298,814 3.950% Senior Notes (1)(2)(3) Jan 12, 2028 494,825 494,208 Borrowings under credit facilities (4)(5)(6) Nov 8, 2022 and Aug 24, 2020 — — Borrowings under loans (4)(5) Nov 8, 2022 and Aug 24, 2020 805,693 830,332 Total notes payable and long-term debt 2,496,465 2,518,699 Less current installments of notes payable and long-term debt 375,181 25,197 Notes payable and long-term debt, less current installments $ 2,121,284 $ 2,493,502 (1) The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs. (2) The Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. (3) During the fiscal year ended August 31, 2018 , the Company issued $500.0 million of publicly registered 3.950% Senior Notes due 2028 (the “ 3.950% Senior Notes”). The net proceeds from the offering were used for general corporate purposes, including to redeem $400.0 million of the Company’s outstanding 8.250% Senior Notes due 2018 and pay related costs and a “make-whole” premium. (4) On November 8, 2017, the Company entered into an amended and restated senior unsecured five -year credit agreement to support the continued growth of the business. In addition, the revolving credit facility supports commercial paper outstanding, if any. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $1.8 billion , which may, subject to the lenders’ discretion, potentially be increased up to $2.3 billion (“the 2017 Revolving Credit Facility”) and (ii) a $500.0 million Term Loan Facility (“the 2017 Term Loan Facility”), collectively “the 2017 Credit Facility.” The 2017 Credit Facility expires on November 8, 2022. The 2017 Revolving Credit Facility is subject to two whole or partial one -year extensions, at the lender’s discretion. Interest and fees on the 2017 Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the fiscal year ended August 31, 2019 , the interest rates on the 2017 Revolving Credit Facility ranged from 3.1% to 5.7% and the 2017 Term Loan Facility ranged from 3.5% to 3.9% . Interest is charged at a rate equal to (a) for the 2017 Revolving Credit Facility, either 0.000% to 0.575% above the base rate or 0.975% to 1.575% above the Eurocurrency rate and (b) for the 2017 Term Loan Facility, either 0.125% to 0.875% above the base rate or 1.125% to 1.875% above the Eurocurrency rate. The base rate represents the greatest of: (i) Citibank, N.A.’s prime rate, (ii) 0.50% above the federal funds rate, and (iii) 1.0% above one-month LIBOR, but not less than zero. The Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. (5) On August 24, 2018, the Company entered into a senior unsecured two -year credit agreement to support the continued growth of the business. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $150.0 million (“the 2018 Revolving Credit Facility”) and (ii) a $350.0 million Term Loan Facility (“the 2018 Term Loan Facility”), collectively “the 2018 Credit Facility.” The 2018 Credit Facility expires on August 24, 2020. During the fiscal year ended August 31, 2019 , the interest rates on the 2018 Revolving Credit Facility ranged from 3.1% to 3.4% and the 2018 Term Loan Facility ranged from 3.3% to 3.8% . Interest is charged at a rate equal to (a) for the 2018 Revolving Credit Facility, either the base rate or 0.9750% above the Eurocurrency rate and (b) for the 2018 Term Loan Facility, either 0.125% above the base rate or 1.125% above the Eurocurrency rate. The base rate represents the greatest of: (i) Mizuho Bank, Ltd.’s prime rate, (ii) 0.50% above the federal funds rate, and (iii) 1.0% above one-month LIBOR, but not less than zero. The Eurocurrency rate represents adjusted LIBOR for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of August 31, 2019 , the Company has $2.6 billion , in available unused borrowing capacity under its revolving credit facilities. (6) On August 15, 2019, the Company entered into a commercial paper program with a borrowing capacity of up to $1.8 billion . The Company intends to use the net proceeds from the commercial paper to support more efficient financing terms. The revolving credit facility supports commercial paper outstanding, if any. As of August 31, 2019 , no commercial paper had been issued. |
Debt Maturities | Debt maturities as of August 31, 2019 are as follows (in thousands): Fiscal Year Ended August 31, 2020 $ 375,181 2021 441,858 2022 49,797 2023 1,134,613 2024 120 Thereafter 494,896 Total $ 2,496,465 |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Retirement Benefits [Abstract] | |
Reconciliation of Change in Benefit Obligations for Plans | The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2019 2018 Change in projected benefit obligation Beginning projected benefit obligation $ 161,104 $ 167,714 Service cost 1,437 1,063 Interest cost 3,715 3,807 Actuarial loss (gain) 19,060 (6,019 ) Curtailments gain — (998 ) Total benefits paid (6,568 ) (6,211 ) Plan participants’ contributions 35 31 Amendments — 1,864 Acquisitions 6,040 — Effect of conversion to U.S. dollars (10,133 ) (147 ) Ending projected benefit obligation $ 174,690 $ 161,104 Change in plan assets Beginning fair value of plan assets 151,715 146,698 Actual return on plan assets 19,784 8,146 Employer contributions 1,717 1,811 Benefits paid from plan assets (5,435 ) (4,758 ) Plan participants’ contributions 35 31 Effect of conversion to U.S. dollars (9,715 ) (213 ) Ending fair value of plan assets $ 158,101 $ 151,715 Unfunded status $ (16,589 ) $ (9,389 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 368 $ 428 Accrued benefit liability, noncurrent $ 16,221 $ 8,961 Accumulated other comprehensive loss (1) Actuarial loss, before tax $ 24,343 $ 22,387 Prior service cost, before tax $ 690 $ 719 (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2020 . |
Reconciliation of Changes in Pension Plan Assets | The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2019 2018 Change in projected benefit obligation Beginning projected benefit obligation $ 161,104 $ 167,714 Service cost 1,437 1,063 Interest cost 3,715 3,807 Actuarial loss (gain) 19,060 (6,019 ) Curtailments gain — (998 ) Total benefits paid (6,568 ) (6,211 ) Plan participants’ contributions 35 31 Amendments — 1,864 Acquisitions 6,040 — Effect of conversion to U.S. dollars (10,133 ) (147 ) Ending projected benefit obligation $ 174,690 $ 161,104 Change in plan assets Beginning fair value of plan assets 151,715 146,698 Actual return on plan assets 19,784 8,146 Employer contributions 1,717 1,811 Benefits paid from plan assets (5,435 ) (4,758 ) Plan participants’ contributions 35 31 Effect of conversion to U.S. dollars (9,715 ) (213 ) Ending fair value of plan assets $ 158,101 $ 151,715 Unfunded status $ (16,589 ) $ (9,389 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 368 $ 428 Accrued benefit liability, noncurrent $ 16,221 $ 8,961 Accumulated other comprehensive loss (1) Actuarial loss, before tax $ 24,343 $ 22,387 Prior service cost, before tax $ 690 $ 719 (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2020 . |
Schedule of Amounts Recognized in Balance Sheet | The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2019 2018 Change in projected benefit obligation Beginning projected benefit obligation $ 161,104 $ 167,714 Service cost 1,437 1,063 Interest cost 3,715 3,807 Actuarial loss (gain) 19,060 (6,019 ) Curtailments gain — (998 ) Total benefits paid (6,568 ) (6,211 ) Plan participants’ contributions 35 31 Amendments — 1,864 Acquisitions 6,040 — Effect of conversion to U.S. dollars (10,133 ) (147 ) Ending projected benefit obligation $ 174,690 $ 161,104 Change in plan assets Beginning fair value of plan assets 151,715 146,698 Actual return on plan assets 19,784 8,146 Employer contributions 1,717 1,811 Benefits paid from plan assets (5,435 ) (4,758 ) Plan participants’ contributions 35 31 Effect of conversion to U.S. dollars (9,715 ) (213 ) Ending fair value of plan assets $ 158,101 $ 151,715 Unfunded status $ (16,589 ) $ (9,389 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 368 $ 428 Accrued benefit liability, noncurrent $ 16,221 $ 8,961 Accumulated other comprehensive loss (1) Actuarial loss, before tax $ 24,343 $ 22,387 Prior service cost, before tax $ 690 $ 719 (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2020 . |
Information about Net Periodic Benefit Cost for Plans | The following table provides information about the net periodic benefit cost for the plans for fiscal years 2019 , 2018 and 2017 (in thousands): Pension 2019 2018 2017 Service cost $ 1,437 $ 1,063 $ 1,068 Interest cost 3,715 3,807 2,942 Expected long-term return on plan assets (5,291 ) (5,954 ) (4,206 ) Recognized actuarial loss 741 1,127 1,929 Amortization of prior service credit (44 ) (88 ) (138 ) Net settlement loss 634 116 1,472 Net periodic benefit cost $ 1,192 $ 71 $ 3,067 |
Weighted-Average Actuarial Assumptions | Weighted-average actuarial assumptions used to determine net periodic benefit cost and projected benefit obligation for the plans for the fiscal years 2019 , 2018 and 2017 were as follows: Pension 2019 2018 2017 Net periodic benefit cost: Expected long-term return on plan assets (1) 3.6 % 3.8 % 3.3 % Rate of compensation increase 4.4 % 3.3 % 2.7 % Discount rate 2.2 % 2.1 % 1.9 % Projected benefit obligation: Expected long-term return on plan assets 2.0 % 3.6 % 4.0 % Rate of compensation increase 4.3 % 4.4 % 4.4 % Discount rate (2) 1.7 % 2.2 % 2.3 % (1) The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan. (2) The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover. |
Fair Values of Plan Assets by Asset Category | The fair values of the plan assets held by the Company by asset category are as follows (in thousands): August 31, 2019 August 31, 2018 Fair Value Hierarchy Fair Value Asset Allocation Fair Value Asset Allocation Asset Category Cash and cash equivalents (1) Level 1 $ 7,705 5 % $ 6,682 4 % Equity Securities: Global equity securities (2)(3) Level 2 20,215 13 % 35,932 24 % Debt Securities: Corporate bonds (3) Level 2 42,522 27 % 41,088 27 % Government bonds (3) Level 2 69,880 44 % 51,597 34 % Other Investments: Insurance contracts (4) Level 3 17,779 11 % 16,416 11 % Fair value of plan assets $ 158,101 100 % $ 151,715 100 % (1) Carrying value approximates fair value. (2) Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries. (3) Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics. (4) Consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value and is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. |
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets | The following table provides information for the plans with an accumulated benefit obligation for fiscal years 2019 and 2018 (in thousands): August 31, 2019 2018 Projected benefit obligation $ 174,690 $ 161,104 Accumulated benefit obligation $ 161,729 $ 152,380 Fair value of plan assets $ 158,101 $ 151,715 |
Estimated Future Benefit Payments | The Company expects to make cash contributions between $0.4 million and $0.6 million to its funded pension plans during fiscal year 2020 . The estimated future benefit payments, which reflect expected future service, are as follows (in thousands): Fiscal Year Ended August 31, Amount 2020 $ 5,017 2021 4,788 2022 5,365 2023 5,877 2024 6,274 2025 through 2029 40,828 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-Cancelable Operating Leases | The future minimum lease payments under non-cancelable operating leases as of August 31, 2019 were as follows (in thousands): Fiscal Year Ending August 31, Amount 2020 $ 118,312 2021 102,915 2022 84,729 2023 63,206 2024 51,091 Thereafter 182,932 Total minimum lease payments $ 603,185 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Recognized Stock-based Compensation Expense | The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Restricted stock units $ 53,766 $ 84,082 $ 42,122 Employee stock purchase plan 7,580 6,891 6,334 Other (1) — 7,538 88 Total $ 61,346 $ 98,511 $ 48,544 (1) For the fiscal year ended August 31, 2018, represents a one-time cash-settled stock award that vested on November 30, 2017. |
Schedule of Shares Available for Issuance | Following is a reconciliation of the shares available to be issued under the 2011 Plan as of August 31, 2019 : Shares Available for Grant Balance as of August 31, 2018 12,837,158 Restricted stock units granted, net of forfeitures (1) (796,577 ) Balance as of August 31, 2019 12,040,581 (1) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. |
Summary of Option Activity | The following table summarizes SARS activity from August 31, 2018 through August 31, 2019 : SARS Outstanding Average Intrinsic Value (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Outstanding as of August 31, 2018 156,801 $ 1,748 $ 18.41 3.10 SARS exercised (33,300 ) $ 18.24 Outstanding and exercisable as of August 31, 2019 123,501 $ 1,278 $ 18.46 2.11 |
Restricted Stock Activity | The following table summarizes restricted stock units activity from August 31, 2018 through August 31, 2019 : Shares Weighted- Average Grant-Date Fair Value Outstanding as of August 31, 2018 8,352,307 $ 24.34 Changes during the period Shares granted (1) 3,144,205 $ 25.25 Shares vested (1,983,411 ) $ 25.07 Shares forfeited (2,347,628 ) $ 24.78 Outstanding as of August 31, 2019 7,165,473 $ 26.27 (1) For those shares granted that are based on the achievement of certain performance criteria, the amount represents the maximum number of shares that can vest. During the fiscal year ended August 31, 2019 , the Company awarded approximately 1.6 million time-based restricted stock units, 0.4 million performance-based restricted stock units and 0.4 million market-based restricted stock units based on target performance criteria. |
Schedule of Share-based Compensation Information | The following table represents the restricted stock units and SARS stock-based compensation information for the periods indicated (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Intrinsic value of SARS exercised $ 335 $ 909 $ 5,053 Fair value of restricted stock units vested $ 49,725 $ 62,592 $ 44,010 Tax benefit for stock compensation expense (1) $ 611 $ 1,122 $ 560 Unrecognized stock-based compensation expense — restricted stock units $ 41,778 Remaining weighted-average period for restricted stock units expense 1.3 years (1) Classified as income tax expense within the Consolidated Statements of Operations. |
Weighted Average Assumptions used in Black-Scholes Option Pricing Model | The fair value of shares issued under the ESPP was estimated on the commencement date of each offering period using the Black-Scholes option pricing model. The following weighted-average assumptions were used in the model for each respective period: Fiscal Year Ended August 31, 2019 2018 2017 Expected dividend yield 0.6 % 0.6 % 0.8 % Risk-free interest rate 2.3 % 1.4 % 0.5 % Expected volatility (1) 28.6 % 23.0 % 33.0 % Expected life 0.5 years 0.5 years 0.5 years (1) The expected volatility was estimated using the historical volatility derived from the Company’s common stock. |
Cash Dividends Declared to Common Stockholders | The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders during fiscal years 2019 and 2018 : Dividend Dividend Total of Cash Date of Record for Dividend Cash (in thousands, except for per share data) 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 July 18, 2019 $ 0.08 $ 12,724 August 15, 2019 September 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 July 18, 2018 $ 0.08 $ 13,677 August 15, 2018 September 4, 2018 |
Schedule of Common Stock Outstanding | The following represents the common stock outstanding for the fiscal year ended: Fiscal Year Ended August 31, 2019 2018 2017 Common stock outstanding: Beginning balances 164,588,172 177,727,653 186,998,472 Shares issued upon exercise of stock options 11,348 30,832 172,620 Shares issued under employee stock purchase plan 1,282,042 1,105,400 1,228,316 Vesting of restricted stock 1,983,261 2,727,229 2,102,049 Purchases of treasury stock under employee stock plans (489,836 ) (793,052 ) (550,096 ) Treasury shares purchased (1) (13,854,607 ) (16,209,890 ) (12,223,708 ) Ending balances 153,520,380 164,588,172 177,727,653 (1) During fiscal years 2018, 2017 and 2016, the Company’s Board of Directors authorized the repurchase of $350.0 million , $450.0 million and $400.0 million , respectively, of the Company’s common stock under share repurchase programs, which were repurchased during fiscal years 2019, 2018 and 2017, respectively. |
Concentration of Risk and Seg_2
Concentration of Risk and Segment Data (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Sales to Customers Who Accounted for 10 Percent or More of Company's Net Revenues, Expressed as Percentage of Consolidated Net Revenue and Accounts Receivable for Each Customer | Sales to the following customer that accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for the customer, were as follows: Percentage of Net Revenue Fiscal Year Ended August 31, Percentage of Accounts Receivable as of August 31, 2019 2018 2017 2019 2018 Apple, Inc. (1) 22 % 28 % 24 % * * * Amount was less than 10% of total. (1) Sales to this customer were reported in the DMS operating segment |
Reconciliation of Revenue from Segments to Consolidated | The following tables set forth operating segment information (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 Net revenue EMS $ 15,430,529 $ 12,268,600 $ 11,077,622 DMS 9,851,791 9,826,816 7,985,499 $ 25,282,320 $ 22,095,416 $ 19,063,121 |
Reconciliation of Income from Segments to Consolidated | Fiscal Year Ended August 31, 2019 2018 2017 Segment income and reconciliation of income before tax EMS $ 480,047 $ 451,149 $ 436,110 DMS 396,564 316,998 230,893 Total segment income $ 876,611 $ 768,147 $ 667,003 Reconciling items: Amortization of intangibles (31,923 ) (38,490 ) (35,524 ) Stock-based compensation expense and related charges (61,346 ) (98,511 ) (48,544 ) Restructuring and related charges (25,914 ) (36,902 ) (160,395 ) Distressed customer charges (6,235 ) (32,710 ) (10,198 ) Business interruption and impairment charges, net (1) 2,860 (11,299 ) — Acquisition and integration charges (52,697 ) (8,082 ) — Loss on disposal of subsidiaries — — (2,112 ) Restructuring of securities loss (29,632 ) — — Other expense (53,750 ) (37,563 ) (28,448 ) Interest income 21,460 17,813 12,525 Interest expense (188,730 ) (149,002 ) (138,074 ) Income before income tax $ 450,704 $ 373,401 $ 256,233 (1) Charges, net of insurance proceeds of $2.9 million and $24.9 million , for the fiscal years ended August 31, 2019 and 2018 , respectively, relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted operations in Cayey, Puerto Rico, which is classified as a component of cost of revenue and selling, general and administrative expenses in the Consolidated Statements of Operations. |
Reconciliation of Assets from Segment to Consolidated | August 31, 2019 August 31, 2018 Total assets EMS $ 4,353,465 $ 3,456,866 DMS 4,988,198 5,378,436 Other non-allocated assets 3,628,812 3,210,339 $ 12,970,475 $ 12,045,641 |
External Net Revenue, Net of Intercompany Eliminations, and Long-Lived Asset Information | The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 External net revenue: Singapore $ 6,718,495 $ 7,193,414 $ 5,585,837 China 4,958,462 4,585,355 4,012,950 Mexico 4,526,456 3,533,437 3,207,059 Malaysia 1,681,911 1,389,851 1,119,384 Hungary 809,031 897,033 944,448 Other 3,489,398 2,651,632 2,547,750 Foreign source revenue 22,183,753 20,250,722 17,417,428 U.S. 3,098,567 1,844,694 1,645,693 Total $ 25,282,320 $ 22,095,416 $ 19,063,121 August 31, 2019 2018 Long-lived assets: China $ 1,579,904 $ 1,770,732 Mexico 418,641 256,086 Singapore 156,028 191,506 Malaysia 154,386 113,011 Taiwan 123,608 130,062 Hungary 85,809 91,063 Spain 77,855 79,991 Poland 57,794 60,847 Other 412,498 334,466 Long-lived assets related to foreign operations 3,066,523 3,027,764 U.S. 1,146,335 1,077,128 Total $ 4,212,858 $ 4,104,892 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net Gains from Forward Contracts Recorded in Consolidated Statements of Operations | The following table presents the net losses from forward contracts recorded in the Consolidated Statements of Operations for the periods indicated (in thousands): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Loss on Derivatives Recognized in Net Income Amount of Loss Recognized in Net Income on Derivatives Fiscal Year Ended August 31 2019 2018 2017 Forward foreign exchange contracts (1) Cost of revenue $ (29,557 ) $ (27,774 ) $ (95,665 ) (1) For the fiscal years ended August 31, 2019 , 2018 , and 2017 , the Company recognized $14.9 million , $36.7 million , and $90.3 million , respectively, of foreign currency gains in cost of revenue, which are offset by the losses 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 August 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 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 2017 Term Loan Facility and the three-month LIBOR for the 2018 Term Loan Facility. |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Related Charges | Following is a summary of the Company’s restructuring and related charges (in thousands): Fiscal Year Ended August 31, 2019 2018 2017 (2) Employee severance and benefit costs $ 16,029 $ 16,269 $ 56,834 Lease costs (41 ) 1,596 3,966 Asset write-off costs (3,566 ) 16,264 94,346 Other costs 13,492 2,773 5,249 Total restructuring and related charges (1) $ 25,914 $ 36,902 $ 160,395 (1) Includes $21.5 million , $16.3 million and $51.3 million recorded in the EMS segment, $2.6 million , $16.6 million and $82.4 million recorded in the DMS segment and $1.8 million , $4.0 million and $26.7 million of non-allocated charges for the fiscal years ended August 31, 2019 , 2018 and 2017 , respectively. Except for asset write-off costs, all restructuring and related charges are cash settled. (2) Fiscal year ended August 31, 2017, includes expenses related to the 2017 and 2013 Restructuring Plans. |
Cumulative Restructuring and Related Charges Incurred | The table below sets forth the cumulative restructuring and related charges incurred through August 31, 2019 for the 2017 Restructuring Plan (in thousands): 2017 Restructuring Plan (1) Employee severance and benefit costs $ 74,656 Lease costs 5,521 Asset write-off costs 106,974 Other related costs 7,395 Total restructuring and related charges $ 194,546 (1) Includes $62.3 million allocated to the EMS segment, $101.6 million allocated to the DMS segment and $30.7 million of unallocated costs. |
Summary of Liability Activity Associated with Restructuring Plan | The tables below summarize 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, 2017 $ 33,580 $ 1,665 $ — $ 3,143 $ 38,388 Restructuring related charges 16,269 1,596 16,264 2,773 36,902 Asset write-off charge and other non-cash activity (127 ) 525 (16,264 ) 25 (15,841 ) Cash payments (31,591 ) (1,102 ) — (5,419 ) (38,112 ) Balance as of August 31, 2018 18,131 2,684 — 522 21,337 Restructuring related charges 16,029 (41 ) (3,566 ) 2,071 14,493 Asset write-off charge and other non-cash activity (494 ) — 3,566 (18 ) 3,054 Cash payments (30,504 ) (663 ) — (1,786 ) (32,953 ) Balance as of August 31, 2019 $ 3,162 $ 1,980 $ — $ 789 $ 5,931 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes | The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: (in thousands) Fair Value Hierarchy August 31, 2019 August 31, 2018 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 27,804 $ 21,412 Prepaid expenses and other current assets: Short-term investments Level 1 14,088 — Deferred purchase price receivables (Note 2) Level 3 (2) — 533,113 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 13) Level 2 (3) 904 225 Derivatives not designated as hedging instruments (Note 13) Level 2 (3) 6,878 10,125 Other assets: Senior Non-Convertible Preferred Stock Level 3 (4) 33,102 47,300 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 13) Level 2 (3) $ 15,999 $ 13,364 Derivatives not designated as hedging instruments (Note 13) Level 2 (3) 55,391 46,171 Interest rate swaps: Derivatives designated as hedging instruments (Note 13) Level 2 (5) 5,918 117 Other liabilities: Forward interest rate swaps: Derivatives designated as hedging instruments (Note 13) Level 2 (5) 35,045 — (1) Consist of investments that are readily convertible to cash with original maturities of 90 days or less. (2) Recorded initially at fair value using unobservable inputs, determined primarily using discounted cash flows, and due to its credit quality and short-term maturity, the fair value 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 calculation. (3) 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. (4) During the fourth quarter of fiscal year 2019, the Company exchanged its investment in the Senior Non-Convertible Preferred Stock of iQor Holdings, Inc. (“iQor”) in association with iQor’s previously announced sale of its international logistics and product service assets. Prior to the restructuring, the Senior Non-Convertible Preferred Stock had a face value of $50.0 million , accumulated dividends at an annual rate of 8 percent and was redeemable on March 31, 2023 or upon a change in control. The restructured Senior Non-Convertible Preferred Stock has a face value of $55.0 million and is redeemable at iQor’s option or upon change of control for $55.0 million until December 31, 2023, $65.0 million during calendar year 2024 and is mandatorily redeemable for $75.0 million on April 1, 2025. As a result of the restructuring, the Company recognized a restructuring of securities loss of $29.6 million , which primarily consisted of a credit loss. The credit loss was estimated utilizing a probability-weighted discounted cash flow model incorporating the concessions and modifications made as part of the restructuring, discounted at the loan's effective interest rate. The Senior Non-Convertible Preferred Stock is valued each reporting period using unobservable inputs based on a discounted cash flow model and is classified as an available for sale debt security with any unrealized loss recorded to AOCI. As of August 31, 2019, the unobservable inputs have an immaterial impact on the fair value calculation. As of August 31, 2019 , the amortized cost basis approximates fair value. (5) Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. |
Carrying Amounts and Fair Values of Notes Payable and Long-term Debt | The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated: August 31, 2019 August 31, 2018 (in thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 8) 5.625% Senior Notes Level 2 (1) $ 398,886 $ 416,000 $ 397,995 $ 415,704 4.700% Senior Notes Level 2 (1) 498,004 525,890 497,350 503,545 4.900% Senior Notes Level 3 (2) 299,057 318,704 298,814 306,535 3.950% Senior Notes Level 2 (1) 494,825 509,845 494,208 476,010 (1) The fair value estimates are based upon observable market data. (2) This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Aug. 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 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 Balance Sheets as of August 31, 2019 (in thousands): August 31, 2019 As reported Balance without the adoption of ASU 2014-09 Assets Contract assets (1) $ 911,940 $ — Inventories, net (1) $ 3,023,003 $ 3,761,591 Prepaid expenses and other current assets (1)(2) $ 501,573 $ 514,769 Deferred income taxes (1) $ 198,827 $ 202,791 Liabilities Contract liabilities (2)(3) $ 511,329 $ — Deferred income (2)(3)(4) $ — $ 521,035 Other accrued expenses (3)(4) $ 1,877,908 $ 1,868,201 Deferred income taxes (1) $ 115,818 $ 111,304 Equity Retained earnings (1)(2) $ 2,037,037 $ 1,885,360 (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 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 fiscal year ended August 31, 2019 (in thousands): Fiscal Year Ended August 31, 2019 As reported Balance without the adoption of ASU 2014-09 Net revenue (1) $ 25,282,320 $ 24,864,754 Cost of revenue (2) $ 23,368,919 $ 23,057,603 Operating income $ 701,356 $ 595,105 Income tax expense $ 161,230 $ 164,054 Net income $ 289,474 $ 180,399 (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): Fiscal Year Ended August 31, 2019 EMS DMS Total Timing of transfer Point in time $ 2,877,082 $ 6,055,716 $ 8,932,798 Over time $ 12,553,447 $ 3,796,075 $ 16,349,522 Total $ 15,430,529 $ 9,851,791 $ 25,282,320 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Aug. 31, 2018 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 17.2 | $ 15.2 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Fulfillment Costs) (Details) | Aug. 31, 2019 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 3 years |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Property, Plant and Equipment, net) (Details) | 12 Months Ended |
Aug. 31, 2019 | |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 35 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Furniture, fixtures and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Transportation equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Change in AOCI, Net of Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 1,963,380 | $ 2,368,344 | $ 2,457,497 |
Other comprehensive (loss) income before reclassifications | (117,684) | ||
Amounts reclassified from AOCI | 54,289 | ||
Total other comprehensive (loss) income | (63,395) | (74,019) | 94,497 |
Ending Balance | 1,900,758 | 1,963,380 | 2,368,344 |
Foreign Currency Translation Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 7,431 | ||
Other comprehensive (loss) income before reclassifications | (21,729) | ||
Amounts reclassified from AOCI | 0 | ||
Total other comprehensive (loss) income | (21,729) | ||
Ending Balance | (14,298) | 7,431 | |
Derivative Instruments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 8,116 | ||
Other comprehensive (loss) income before reclassifications | (67,773) | ||
Amounts reclassified from AOCI | 20,259 | ||
Total other comprehensive (loss) income | (47,514) | ||
Ending Balance | (39,398) | 8,116 | |
Actuarial (Loss) Gain | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (25,021) | ||
Other comprehensive (loss) income before reclassifications | (3,753) | ||
Amounts reclassified from AOCI | 741 | ||
Total other comprehensive (loss) income | (3,012) | ||
Ending Balance | (28,033) | (25,021) | |
Prior Service (Cost) Credit | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (643) | ||
Other comprehensive (loss) income before reclassifications | 79 | ||
Amounts reclassified from AOCI | (44) | ||
Total other comprehensive (loss) income | 35 | ||
Ending Balance | (608) | (643) | |
Available for Sale Securities | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (9,282) | ||
Other comprehensive (loss) income before reclassifications | (24,508) | ||
Amounts reclassified from AOCI | 33,333 | ||
Total other comprehensive (loss) income | 8,825 | ||
Ending Balance | (457) | (9,282) | |
AOCI Attributable to Parent | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (19,399) | 54,620 | (39,877) |
Ending Balance | $ (82,794) | $ (19,399) | $ 54,620 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies (Reclassification from AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Operating income | $ (701,356) | $ (542,153) | $ (410,230) |
Cost of revenue | 23,368,919 | 20,388,624 | 17,517,478 |
Interest expense | 188,730 | 149,002 | 138,074 |
Actuarial loss | 741 | 1,127 | 1,929 |
Prior service credit | (44) | (88) | (138) |
Total amounts reclassified from AOCI | (450,704) | (373,401) | (256,233) |
Income tax expense | (161,230) | (285,860) | (129,066) |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Total amounts reclassified from AOCI | 54,289 | (22,037) | 26,626 |
Reclassification out of AOCI | Foreign currency translation adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Operating income | 0 | 0 | 5,947 |
Reclassification out of AOCI | Realized losses (gains) on derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Loss to be reclassified in next 12 months | 17,000 | ||
Income tax expense | 14,800 | ||
Reclassification out of AOCI | Realized losses (gains) on derivative instruments | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of revenue | 21,982 | (9,379) | 4,799 |
Reclassification out of AOCI | Realized losses (gains) on derivative instruments | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | (1,723) | (13,697) | 3,950 |
Reclassification out of AOCI | Actuarial loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Actuarial loss | 741 | 1,127 | 1,929 |
Reclassification out of AOCI | Prior service credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Prior service credit | (44) | (88) | (138) |
Reclassification out of AOCI | Available for sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Available for sale securities | $ 33,333 | $ 0 | $ 10,139 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies (Earnings Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Stock appreciation rights | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common shares excluded from computation of diluted earnings per share | 0 | 0 | 265 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common shares excluded from computation of diluted earnings per share | 796 | 2,426 | 4,539 |
Trade Accounts Receivable Sec_3
Trade Accounts Receivable Securitization and Sale Programs (Additional Information) (Details) - USD ($) | Oct. 01, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Oct. 09, 2018 |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Consideration received for beneficial interest | $ 162,200,000 | $ 2,000,000,000 | $ 2,800,000,000 | ||
Foreign | Asset-backed Securities | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Continuing involvement with derecognized transferred financial assets, amount 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 the settlement of securitization transactions | 25,200,000 | ||||
Trade accounts receivable sold | $ 373,500,000 | ||||
Liability obligations under the guarantee | $ 0 | ||||
North America | Asset-backed Securities | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Continuing involvement with derecognized transferred financial assets, amount 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 (Securitization Key Terms) (Details) | Aug. 31, 2019USD ($) |
North American | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 390,000,000 |
Foreign | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 400,000,000 |
Trade Accounts Receivable Sec_5
Trade Accounts Receivable Securitization and Sale Programs (Securitization Activity) (Details) - Asset-Backed Securitization Programs - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Nov. 26, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 650.3 | $ 4,057 | $ 8,386 | $ 8,878 |
Cash proceeds received | 488.1 | 4,031 | 7,838 | 8,300 |
Pre-tax losses on sale of receivables | 26 | 15 | 9 | |
Deferred purchase price receivables | $ 0 | $ 533 | $ 569 | |
Net cash received | $ 13.9 |
Trade Accounts Receivable Sec_6
Trade Accounts Receivable Securitization and Sale Programs (Sales Programs Key Terms) (Details) - 12 months ended Aug. 31, 2019 | CNY (¥) | USD ($) |
A | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | $ 800,000,000 | |
Notice period to cancel receivable sale agreements | 15 days | |
B | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | 150,000,000 | |
Notice period to cancel receivable sale agreements | 10 days | |
Program, extension period | 1 year | |
C | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | ¥ | ¥ 800,000,000 | |
D | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | 100,000,000 | |
Notice period to cancel receivable sale agreements | 30 days | |
E | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | 50,000,000 | |
F | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | 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 | 50,000,000 | |
Notice period to cancel receivable sale agreements | 15 days | |
H | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount | 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 | 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 | 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 | $ 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 (Sales Programs Activity) (Details) - Trade Accounts Receivable Sale Programs - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sold | $ 6,751 | $ 5,480 | $ 2,968 |
Cash proceeds received | 6,723 | 5,463 | 2,962 |
Pre-tax losses on sale of receivables | $ 28 | $ 17 | $ 6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 2,310,081 | $ 2,070,569 | |
Work in process | 468,217 | 788,742 | |
Finished goods | 314,258 | 659,335 | |
Reserve for excess and obsolete inventory | (69,553) | (60,940) | |
Inventories, net | $ 3,023,003 | $ 2,996,435 | $ 3,457,706 |
Income Taxes (Income (Loss) Fro
Income Taxes (Income (Loss) From Continuing Operations Before Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (415,707) | $ (426,897) | $ (373,690) |
Foreign | 866,411 | 800,298 | 629,923 |
Income before income tax | $ 450,704 | $ 373,401 | $ 256,233 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Current | |||
Domestic - federal | $ (23,675) | $ 69,080 | $ 2,436 |
Domestic - state | 1,383 | 134 | 12 |
Foreign | 175,993 | 178,790 | 188,872 |
Total current | 153,701 | 248,004 | 191,320 |
Deferred | |||
Domestic - federal | (8,000) | (24,342) | 253 |
Domestic - state | (2,202) | 93 | 30 |
Foreign | 17,731 | 62,105 | (62,537) |
Total deferred | 7,529 | 37,856 | (62,254) |
Total income tax expense | $ 161,230 | $ 285,860 | $ 129,066 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Rate) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 25.70% | 35.00% |
State income taxes, net of federal tax benefit | (1.70%) | (1.50%) | (3.30%) |
Impact of foreign tax rates | (9.90%) | (19.30%) | (42.70%) |
Permanent impact of non-deductible cost | 1.80% | 5.90% | 2.90% |
Income tax credits | (3.10%) | (2.80%) | (6.30%) |
Changes in tax rates on deferred tax assets and liabilities | 0.20% | 4.00% | 0.30% |
One-time transition tax related to the Tax Act | (0.005) | 0.622 | 0 |
Indefinite reinvestment assertion impact | 0.90% | 5.80% | 0.00% |
Valuation allowance | 1.30% | (16.40%) | 14.80% |
Non-deductible equity compensation | 1.40% | 5.50% | 4.50% |
Impact of intercompany charges and dividends | 10.40% | 7.30% | 38.30% |
Reclassification of stranded tax effects in AOCI | (0.00%) | (4.00%) | (0.00%) |
Global Intangible Low-Taxed Income | 10.40% | 0.00% | 0.00% |
Other, net | 3.60% | 4.20% | 6.90% |
Effective income tax rate | 35.80% | 76.60% | 50.40% |
Income tax benefit on income from subsidiaries | $ 67.3 | $ 52.1 | $ 38.6 |
Per basic share income tax benefit on income from subsidiaries (in dollars per share) | $ 0.43 | $ 0.30 | $ 0.22 |
Reversal of valuation allowance | $ 17.5 |
Income Taxes (Summary of Tax Im
Income Taxes (Summary of Tax Impact) (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 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 | ||
Income tax expense (benefit) | $ 142.3 | ||
One-time transition tax, inclusive of unrecognized tax benefits | $ (19.7) | $ 46.2 | |
Re-measurement of the Company's U.S. deferred tax attributes | 1.6 | (8.9) | |
Change in indefinite reinvestment assertion | 0 | 85 | |
Other | (0.3) | 1.6 | |
Income tax expense (benefit) | $ (18.4) | $ 123.9 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carry forward | $ 183,297 | $ 119,259 |
Receivables | 6,165 | 7,111 |
Inventories | 9,590 | 7,634 |
Compensated absences | 10,401 | 8,266 |
Accrued expenses | 81,731 | 81,912 |
Property, plant and equipment, principally due to differences in depreciation and amortization | 66,268 | 97,420 |
Domestic federal and state tax credits | 42,464 | 70,153 |
Foreign jurisdiction tax credits | 15,345 | 25,887 |
Domestic federal interest carry forward | 5,853 | 0 |
Cash flow hedges | 9,878 | 0 |
Unrecognized capital loss carry forward | 7,799 | 0 |
Revenue recognition | 19,195 | 0 |
Other | 21,907 | 18,176 |
Total deferred tax assets before valuation allowances | 489,689 | 445,785 |
Less valuation allowances | (287,604) | (223,487) |
Net deferred tax assets | 202,085 | 222,298 |
Deferred tax liabilities: | ||
Unremitted earnings of foreign subsidiaries | 75,387 | 74,654 |
Intangible assets | 39,242 | 39,122 |
Other | 4,447 | 4,655 |
Total deferred tax liabilities | 119,076 | 118,431 |
Net deferred tax assets | 83,009 | 103,867 |
Domestic | ||
Deferred tax assets: | ||
Equity compensation | 7,617 | 7,566 |
Foreign | ||
Deferred tax assets: | ||
Equity compensation | $ 2,179 | $ 2,401 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Domestic - state | |
Operating Loss Carryforwards [Line Items] | |
Income tax net operating loss carryforwards | $ 57,299 |
Tax credit carryforwards | 3,313 |
Domestic - federal | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 39,784 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Income tax net operating loss carryforwards | 565,609 |
Tax credit carryforwards | $ 15,345 |
Income Taxes (Reconciliations o
Income Taxes (Reconciliations of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 256,705 | $ 201,355 | $ 149,898 |
Additions for tax positions of prior years | 20,158 | 14,465 | 2,155 |
Reductions for tax positions of prior years | (106,252) | (21,045) | (12,233) |
Additions for tax positions related to current year | 35,769 | 81,866 | 77,807 |
Cash settlements | 0 | (1,659) | (2,298) |
Reductions from lapses in statutes of limitations | (2,570) | (7,496) | (10,446) |
Reductions from settlements with taxing authorities | (35,582) | (5,928) | (6,061) |
Foreign exchange rate adjustment | (3,845) | (4,853) | 2,533 |
Ending balance | 164,383 | 256,705 | 201,355 |
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $ 93,237 | $ 117,455 | $ 75,223 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Undistributed earnings of foreign subsidiaries | $ 1,900 | ||
Unrecognized deferred tax liability | 200 | ||
Accrued interest and penalties related to unrecognized tax benefits included in income tax provision | 18.9 | $ 20.4 | |
Recognized (derecognized) tax benefit, accrued interest and penalties | (1.5) | $ (6.7) | $ 5.2 |
Possible adjustments for transfer pricing and certain inclusions in taxable income | $ 5.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Components) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 7,444,246 | $ 6,844,961 |
Less accumulated depreciation and amortization | 4,110,496 | 3,646,945 |
Property plant and equipment, net | 3,333,750 | 3,198,016 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 146,719 | 144,136 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 962,559 | 849,975 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,092,787 | 1,013,428 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 4,262,015 | 3,983,025 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 209,257 | 192,243 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 671,252 | 601,955 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 16,423 | 17,215 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 83,234 | $ 42,984 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Depreciation and Maintenance and Repair Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 739,910 | $ 735,213 | $ 724,856 |
Maintenance and repair expense | $ 288,309 | $ 266,691 | $ 234,332 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Acquisition of property, plant and equipment considered a non-cash investing activity | $ 235.2 | $ 253.6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Additional Information) (Details) - USD ($) | Jul. 01, 2013 | Aug. 31, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Impairment of goodwill | $ 0 | |||||
Impairment of indefinite-lived intangible assets | $ 0 | |||||
Intangible asset amortization | $ 31,923,000 | $ 38,490,000 | $ 35,524,000 | |||
Nypro | Trade names | Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 4 years | |||||
Nypro | Trade names | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived trade name of acquired | $ 72,500,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Goodwill Allocated to Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 627,745 | $ 608,184 |
Acquisitions and adjustments | 22,577 | |
Change in foreign currency exchange rates | (5,490) | (3,016) |
Ending balance | 622,255 | 627,745 |
EMS | ||
Goodwill [Roll Forward] | ||
Beginning balance | 82,670 | 52,574 |
Acquisitions and adjustments | 30,763 | |
Change in foreign currency exchange rates | (702) | (667) |
Ending balance | 81,968 | 82,670 |
Goodwill reallocated | 8,200 | |
DMS | ||
Goodwill [Roll Forward] | ||
Beginning balance | 545,075 | 555,610 |
Acquisitions and adjustments | (8,186) | |
Change in foreign currency exchange rates | (4,788) | (2,349) |
Ending balance | $ 540,287 | 545,075 |
Goodwill reallocated | $ (8,200) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Summary of Goodwill) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Gross Carrying Amount | $ 1,642,077 | $ 1,647,567 |
Goodwill, Accumulated Impairment | $ 1,019,822 | $ 1,019,822 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Purchased Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Average Amortization Period (in years) | 11 years | |
Gross Carrying Amount | $ 594,694 | $ 586,309 |
Accumulated Amortization | (337,841) | (307,178) |
Net Carrying Amount | 256,853 | 279,131 |
Trade names | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 50,590 | 123,090 |
Net Carrying Amount | $ 50,590 | 123,090 |
Contractual agreements and customer relationships | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Average Amortization Period (in years) | 12 years | |
Gross Carrying Amount | $ 292,797 | 289,947 |
Accumulated Amortization | (175,199) | (153,415) |
Net Carrying Amount | $ 117,598 | 136,532 |
Intellectual property | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Average Amortization Period (in years) | 6 years | |
Gross Carrying Amount | $ 173,771 | 168,181 |
Accumulated Amortization | (157,606) | (148,672) |
Net Carrying Amount | 16,165 | 19,509 |
Trade names | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 77,536 | 5,091 |
Accumulated Amortization | (5,036) | (5,091) |
Net Carrying Amount | $ 72,500 | $ 0 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (Amortization Expense) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Fiscal Year Ended August 31, | |
2020 | $ 54,165 |
2021 | 43,780 |
2022 | 28,291 |
2023 | 25,877 |
2024 | 10,976 |
Thereafter | 43,174 |
Total | $ 206,263 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Accrued Liabilities, Current [Abstract] | |||
Contract liabilities | $ 511,329 | $ 690,142 | $ 0 |
Deferred income | 0 | 691,365 | |
Accrued compensation and employee benefits | 600,907 | 570,400 | |
Obligation associated with securitization programs | 475,251 | 0 | |
Other accrued expenses | 1,402,657 | $ 1,041,371 | 1,000,979 |
Accrued expenses | $ 2,990,144 | $ 2,262,744 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt (Summary) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,496,465 | $ 2,518,699 |
Less current installments of notes payable and long-term debt | 375,181 | 25,197 |
Notes payable and long-term debt, less current installments | 2,121,284 | 2,493,502 |
Senior Notes | 5.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 398,886 | 397,995 |
Senior Notes | 4.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 498,004 | 497,350 |
Senior Notes | 4.900% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 299,057 | 298,814 |
Senior Notes | 3.950% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 494,825 | 494,208 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Line of Credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 805,693 | $ 830,332 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt (Summary, Footnotes) (Details) | Aug. 24, 2018USD ($) | Nov. 08, 2017USD ($)extension_option | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 15, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Commercial paper, maximum borrowing capacity | $ 1,800,000,000 | ||||
Senior Notes | 3.950% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt issuance | $ 500,000,000 | ||||
Senior Notes, stated interest rate | 3.95% | 3.95% | |||
Senior Notes | 8.250% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Notes, stated interest rate | 8.25% | ||||
Redemption of debt outstanding | $ 400,000,000 | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit agreement term | 2 years | 5 years | |||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unused borrowing capacity under revolving credit facilities, net of letters of credit | $ 2,600,000,000 | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,800,000,000 | ||||
Revolving credit facility, accordion feature, increase limit | $ 2,300,000,000 | ||||
Number of extension options | extension_option | 2 | ||||
Extension term, maximum | 1 year | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.10% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 5.70% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.00% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.575% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Eurodollar | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.975% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Eurodollar | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.575% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.50% | ||||
Line of Credit | Revolving Credit Facility | 2017 Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.00% | ||||
Line of Credit | Revolving Credit Facility | 2018 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Line of Credit | Revolving Credit Facility | 2018 Revolving Credit Facility | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.975% | ||||
Line of Credit | Revolving Credit Facility | 2018 Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.50% | ||||
Line of Credit | Revolving Credit Facility | 2018 Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.00% | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.50% | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.90% | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.125% | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.875% | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | Eurodollar | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.125% | ||||
Line of Credit | Term Loan Facility | 2017 Term Loan Facility | Eurodollar | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.875% | ||||
Line of Credit | Term Loan Facility | 2018 Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.10% | ||||
Line of Credit | Term Loan Facility | 2018 Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.40% | ||||
Line of Credit | Term Loan Facility | 2018 Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | ||||
Line of Credit | Term Loan Facility | 2018 Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.30% | ||||
Line of Credit | Term Loan Facility | 2018 Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.80% | ||||
Line of Credit | Term Loan Facility | 2018 Term Loan Facility | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.125% | ||||
Line of Credit | Term Loan Facility | 2018 Term Loan Facility | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.125% |
(Additional Information) (Detai
(Additional Information) (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Aug. 31, 2018 |
Debt Disclosure [Abstract] | ||
Letters of credit and surety bonds | $ 119.1 | |
Unused letters of credit | $ 74.7 | |
Senior Notes | 4.900% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 4.90% | |
Senior Notes | 5.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 5.625% | |
Senior Notes | 4.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 4.70% | |
Senior Notes | 3.950% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 3.95% | 3.95% |
Notes Payable and Long-Term D_5
Notes Payable and Long-Term Debt (Debt Maturities) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Fiscal Year Ended August 31, | |
2020 | $ 375,181 |
2021 | 441,858 |
2022 | 49,797 |
2023 | 1,134,613 |
2024 | 120 |
Thereafter | 494,896 |
Total | $ 2,496,465 |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Company contributions | $ 49 | $ 40.5 | $ 33.6 |
Minimum | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contributions expected to funded pension plans during fiscal year 2018 | 0.4 | ||
Maximum | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contributions expected to funded pension plans during fiscal year 2018 | $ 0.6 | ||
Global equity securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Target allocation percentage | 35.00% | ||
Debt securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Target allocation percentage | 65.00% | ||
Foreign Plan | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Service period | 3 years |
Postretirement and Other Empl_4
Postretirement and Other Employee Benefits (Benefit Obligations and Plan Assets, Changes in Benefit Obligation and Plan Assets and Funded Status of Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Change in projected benefit obligation | |||
Beginning projected benefit obligation | $ 161,104 | $ 167,714 | |
Service cost | 1,437 | 1,063 | $ 1,068 |
Interest cost | 3,715 | 3,807 | 2,942 |
Actuarial loss (gain) | 19,060 | (6,019) | |
Curtailments gain | 0 | (998) | |
Total benefits paid | (6,568) | (6,211) | |
Plan participants’ contributions | 35 | 31 | |
Amendments | 0 | 1,864 | |
Acquisitions | 6,040 | 0 | |
Effect of conversion to U.S. dollars | (10,133) | (147) | |
Ending projected benefit obligation | 174,690 | 161,104 | 167,714 |
Change in plan assets | |||
Beginning fair value of plan assets | 151,715 | 146,698 | |
Actual return on plan assets | 19,784 | 8,146 | |
Employer contributions | 1,717 | 1,811 | |
Benefits paid from plan assets | (5,435) | (4,758) | |
Plan participants’ contributions | 35 | 31 | |
Effect of conversion to U.S. dollars | (9,715) | (213) | |
Ending fair value of plan assets | 158,101 | 151,715 | $ 146,698 |
Unfunded status | (16,589) | (9,389) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Accrued benefit liability, current | 368 | 428 | |
Accrued benefit liability, noncurrent | 16,221 | 8,961 | |
Accumulated other comprehensive loss | |||
Actuarial loss, before tax | 24,343 | 22,387 | |
Prior service cost, before tax | 690 | $ 719 | |
Net actuarial loss expected to be amortized to net period benefit cost in next fiscal year | 800 | ||
Prior service cost expected to be amortized to net periodic benefit cost in next fiscal year | $ 0 |
Postretirement and Other Empl_5
Postretirement and Other Employee Benefits (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,437 | $ 1,063 | $ 1,068 |
Interest cost | 3,715 | 3,807 | 2,942 |
Expected long-term return on plan assets | (5,291) | (5,954) | (4,206) |
Recognized actuarial loss | 741 | 1,127 | 1,929 |
Amortization of prior service credit | (44) | (88) | (138) |
Net settlement loss | 634 | 116 | 1,472 |
Net periodic benefit cost | $ 1,192 | $ 71 | $ 3,067 |
Postretirement and Other Empl_6
Postretirement and Other Employee Benefits (Weighted-Average Actuarial Assumptions) (Details) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Net periodic benefit cost: | |||
Expected long-term return on plan assets | 3.60% | 3.80% | 3.30% |
Rate of compensation increase | 4.40% | 3.30% | 2.70% |
Discount rate | 2.20% | 2.10% | 1.90% |
Projected benefit obligation: | |||
Expected long-term return on plan assets | 2.00% | 3.60% | 4.00% |
Rate of compensation increase | 4.30% | 4.40% | 4.40% |
Discount rate | 1.70% | 2.20% | 2.30% |
Postretirement and Other Empl_7
Postretirement and Other Employee Benefits (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 158,101 | $ 151,715 | $ 146,698 |
Asset Allocation (as a percent) | 100.00% | 100.00% | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 7,705 | $ 6,682 | |
Asset Allocation (as a percent) | 5.00% | 4.00% | |
Global equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 20,215 | $ 35,932 | |
Asset Allocation (as a percent) | 13.00% | 24.00% | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 42,522 | $ 41,088 | |
Asset Allocation (as a percent) | 27.00% | 27.00% | |
Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 69,880 | $ 51,597 | |
Asset Allocation (as a percent) | 44.00% | 34.00% | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 17,779 | $ 16,416 | |
Asset Allocation (as a percent) | 11.00% | 11.00% |
Postretirement and Other Empl_8
Postretirement and Other Employee Benefits (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 174,690 | $ 161,104 |
Accumulated benefit obligation | 161,729 | 152,380 |
Fair value of plan assets | $ 158,101 | $ 151,715 |
Postretirement and Other Empl_9
Postretirement and Other Employee Benefits (Estimated Future Benefit Payments) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Fiscal Year Ended August 31, | |
2020 | $ 5,017 |
2021 | 4,788 |
2022 | 5,365 |
2023 | 5,877 |
2024 | 6,274 |
2025 through 2029 | $ 40,828 |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 118,312 |
2021 | 102,915 |
2022 | 84,729 |
2023 | 63,206 |
2024 | 51,091 |
Thereafter | 182,932 |
Total minimum lease payments | $ 603,185 |
Commitments and Contingencies_3
Commitments and Contingencies (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total operating lease expense | $ 125.4 | $ 130.2 | $ 117.2 |
Stockholders' Equity (Recognize
Stockholders' Equity (Recognized Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 61,346 | $ 98,511 | $ 48,544 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 53,766 | 84,082 | 42,122 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 7,580 | 6,891 | 6,334 |
Other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 7,538 | $ 88 |
Stockholders' Equity (Equity Co
Stockholders' Equity (Equity Compensation Plan, Additional Information) (Details) - shares | Aug. 31, 2019 | Aug. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum aggregate number of shares subject to awards | 12,040,581 | 12,837,158 |
the 2011 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum aggregate number of shares subject to awards | 23,300,000 |
Stockholders' Equity (Shares Av
Stockholders' Equity (Shares Available for Grant) (Details) | 12 Months Ended |
Aug. 31, 2019shares | |
Reconciliation of Shares Available to be Issued [Roll Forward] | |
Balance as of beginning of period | 12,837,158 |
Restricted stock units granted, net of forfeitures | (796,577) |
Balance as of end of period | 12,040,581 |
Stockholders' Equity (SARs Acti
Stockholders' Equity (SARs Activity) (Details) - SARs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
SARS Outstanding | ||
SARS Outstanding as of beginning of period (in shares) | 156,801 | |
SARS exercised (in shares) | (33,300) | |
SARS Outstanding as of end of period (in shares) | 123,501 | 156,801 |
Aggregate Intrinsic Value, Outstanding | $ 1,278 | $ 1,748 |
Weighted- Average Exercise Price | ||
Weighted-Average Exercise Price, Outstanding as of beginning of period (in dollars per share) | $ 18.41 | |
Weighted-Average Exercise Price, SARS exercised (in dollars per share) | 18.24 | |
Weighted-Average Exercise Price, Outstanding as of end of period (in dollars per share) | $ 18.46 | $ 18.41 |
Weighted- Average Remaining Contractual Life, Outstanding | 2 years 1 month 10 days | 3 years 1 month 6 days |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Units, Additional Information) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 24.9 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation award vested number (in shares) | 0.8 | |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 150.00% | |
Time-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Market-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Award vesting percentage | 200.00% |
Stockholders' Equity (Restric_2
Stockholders' Equity (Restricted Stock Activity) (Details) | 12 Months Ended |
Aug. 31, 2019$ / sharesshares | |
Shares | |
Outstanding as of beginning of period (in shares) | 8,352,307 |
Changes during the period | |
Shares granted (in shares) | 3,144,205 |
Shares vested (in shares) | (1,983,411) |
Shares forfeited (in shares) | (2,347,628) |
Outstanding as of end of period (in shares) | 7,165,473 |
Weighted- Average Grant-Date Fair Value | |
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 24.34 |
Changes during the period | |
Shares granted (in dollars per share) | $ / shares | 25.25 |
Shares vested (in dollars per share) | $ / shares | 25.07 |
Shares forfeited (in dollars per share) | $ / shares | 24.78 |
Outstanding as of end of period (in dollars per share) | $ / shares | $ 26.27 |
Time-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units awarded (in shares) | 1,600,000 |
Performance-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units awarded (in shares) | 400,000 |
Market-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units awarded (in shares) | 400,000 |
(Restricted Stock and SARS Info
(Restricted Stock and SARS Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of SARS exercised | $ 335 | $ 909 | $ 5,053 |
Fair value of restricted stock units vested | 49,725 | 62,592 | 44,010 |
Tax benefit for stock compensation expense | 611 | $ 1,122 | $ 560 |
Unrecognized stock-based compensation expense — restricted stock units | $ 41,778 | ||
Remaining weighted-average period for restricted stock units expense | 1 year 3 months 18 days |
Stockholders' Equity (Employee
Stockholders' Equity (Employee Stock Purchase Plan, Additional Information) (Details) - shares | 12 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance under share based compensation plan | 12,040,581 | 12,837,158 |
the ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum aggregate number of shares subject to awards | 12,000,000 | |
Eligibility period for employees to participate in ESPP | 90 days | |
Shares available for issuance under share based compensation plan | 3,397,019 | |
the ESPP | Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum percentage of an employees salary that can be used to purchase shares under the ESPP | 10.00% | |
Percentage for fair market value fixed for pricing | 85.00% |
Stockholders' Equity (Black-Sch
Stockholders' Equity (Black-Scholes Option Pricing Model) (Details) | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected dividend yield (as a percent) | 0.60% | 0.60% | 0.80% |
Risk-free interest rate | 2.30% | 1.40% | 0.50% |
Expected volatility | 28.60% | 23.00% | 33.00% |
Expected life | 6 months | 6 months | 6 months |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 |
Share-based Payment Arrangement [Abstract] | ||||||||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 12,724 | $ 12,681 | $ 12,706 | $ 13,226 | $ 13,677 | $ 13,991 | $ 14,272 | $ 14,588 |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) - USD ($) | 1 Months Ended | ||||
Oct. 14, 2019 | Sep. 30, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, amount authorized | $ 350,000,000 | $ 450,000,000 | $ 400,000,000 | ||
Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, amount authorized | $ 600,000,000 | ||||
Number of shares repurchased | 874,475 | ||||
Value of shares repurchased | $ 30,800,000 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock Outstanding) (Details) - USD ($) | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock outstanding, beginning balances (in shares) | 164,588,172 | |||
Common stock outstanding, ending balance (in shares) | 153,520,380 | 164,588,172 | ||
Share repurchase program, amount authorized | $ 350,000,000 | $ 450,000,000 | $ 400,000,000 | |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock outstanding, beginning balances (in shares) | 164,588,172 | 177,727,653 | 186,998,472 | |
Shares issued upon exercise of stock options (in shares) | 11,348 | 30,832 | 172,620 | |
Shares issued under employee stock purchase plan (in shares) | 1,282,042 | 1,105,400 | 1,228,316 | |
Vesting of restricted stock (in shares) | 1,983,261 | 2,727,229 | 2,102,049 | |
Purchases of treasury stock under employee stock plans (in shares) | (489,836) | (793,052) | (550,096) | |
Treasury shares purchased (in shares) | (13,854,607) | (16,209,890) | (12,223,708) | |
Common stock outstanding, ending balance (in shares) | 153,520,380 | 164,588,172 | 177,727,653 |
Concentration of Risk and Seg_3
Concentration of Risk and Segment Data (Additional Information) (Details) | 12 Months Ended |
Aug. 31, 2019countrySegmentcustomer | |
Revenue, Major Customer [Line Items] | |
Number of operating segments | Segment | 2 |
Number of operating countries | country | 30 |
Customer Concentration Risk | Net Revenue | Group of Customers that Account for 90% of Net Revenue | |
Revenue, Major Customer [Line Items] | |
Concentration of risk percentage | 90.00% |
Top customers that comprise revenue | customer | 85 |
Customer Concentration Risk | Net Revenue | Five Largest Customers that Account for a Percentage of Net Revenue | |
Revenue, Major Customer [Line Items] | |
Concentration of risk percentage | 42.00% |
Concentration of Risk and Seg_4
Concentration of Risk and Segment Data (Concentration of Risk) (Details) - Apple, Inc. | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Net Revenue | |||
Revenue, Major Customer [Line Items] | |||
Concentration of risk percentage | 22.00% | 28.00% | 24.00% |
Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration of risk percentage |
Concentration of Risk and Seg_5
Concentration of Risk and Segment Data (Segment Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 25,282,320 | $ 22,095,416 | $ 19,063,121 |
EMS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 15,430,529 | 12,268,600 | 11,077,622 |
DMS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 9,851,791 | $ 9,826,816 | $ 7,985,499 |
Concentration of Risk and Seg_6
Concentration of Risk and Segment Data (Segment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Reconciling items: | |||
Amortization of intangibles | $ (31,923) | $ (38,490) | $ (35,524) |
Stock-based compensation expense and related charges | (61,346) | (98,511) | (48,544) |
Restructuring and related charges | (25,914) | (36,902) | (160,395) |
Distressed customer charges | (6,235) | (32,710) | (10,198) |
Business interruption and impairment charges, net | 2,860 | (11,299) | 0 |
Acquisition and integration charges | (52,697) | (8,082) | 0 |
Loss on disposal of subsidiaries | 0 | 0 | (2,112) |
Restructuring of securities loss | (29,632) | 0 | 0 |
Other expense | (53,750) | (37,563) | (28,448) |
Interest income | 21,460 | 17,813 | 12,525 |
Interest expense | (188,730) | (149,002) | (138,074) |
Income before income tax | 450,704 | 373,401 | 256,233 |
Cayey, Puerto Rico | |||
Reconciling items: | |||
Insurance proceeds from Hurricane Maria | 2,900 | 24,900 | |
Operating Segments | |||
Reconciling items: | |||
Income before income tax | 876,611 | 768,147 | 667,003 |
EMS | |||
Reconciling items: | |||
Restructuring and related charges | (21,500) | (16,300) | (51,300) |
EMS | Operating Segments | |||
Reconciling items: | |||
Income before income tax | 480,047 | 451,149 | 436,110 |
DMS | |||
Reconciling items: | |||
Restructuring and related charges | (2,600) | (16,600) | (82,400) |
DMS | Operating Segments | |||
Reconciling items: | |||
Income before income tax | $ 396,564 | $ 316,998 | $ 230,893 |
Concentration of Risk and Seg_7
Concentration of Risk and Segment Data (Segment Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 12,970,475 | $ 12,045,641 |
EMS | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 4,353,465 | 3,456,866 |
DMS | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 4,988,198 | 5,378,436 |
Other non-allocated assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 3,628,812 | $ 3,210,339 |
Concentration of Risk and Seg_8
Concentration of Risk and Segment Data (External Net Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | $ 25,282,320 | $ 22,095,416 | $ 19,063,121 |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 6,718,495 | 7,193,414 | 5,585,837 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 4,958,462 | 4,585,355 | 4,012,950 |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 4,526,456 | 3,533,437 | 3,207,059 |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 1,681,911 | 1,389,851 | 1,119,384 |
Hungary | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 809,031 | 897,033 | 944,448 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 3,489,398 | 2,651,632 | 2,547,750 |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 22,183,753 | 20,250,722 | 17,417,428 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | $ 3,098,567 | $ 1,844,694 | $ 1,645,693 |
Concentration of Risk and Seg_9
Concentration of Risk and Segment Data (Long-lived Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 4,212,858 | $ 4,104,892 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,579,904 | 1,770,732 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 418,641 | 256,086 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 156,028 | 191,506 |
Malaysia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 154,386 | 113,011 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 123,608 | 130,062 |
Hungary | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 85,809 | 91,063 |
Spain | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 77,855 | 79,991 |
Poland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 57,794 | 60,847 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 412,498 | 334,466 |
Foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,066,523 | 3,027,764 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,146,335 | $ 1,077,128 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Foreign Currency Risk Management) (Details) - Forward contracts - USD ($) $ in Millions | Aug. 31, 2019 | Aug. 31, 2018 |
Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 2,500 | $ 2,300 |
Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 334.1 | $ 293.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Derivatives Not Designated As Hedging Instruments) (Details) - Cost of revenue - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Derivative [Line Items] | |||
Foreign currency gain | $ 14,900 | $ 36,700 | $ 90,300 |
Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Amount of Loss Recognized in Net Income on Derivatives | $ (29,557) | $ (27,774) | $ (95,665) |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Cash Flow Hedges) (Details) - Cash flow hedging - Interest rate swaps $ in Millions | Aug. 31, 2019USD ($) |
Anticipated Debt Issuance | |
Derivative [Line Items] | |
Aggregate notional amount | $ 200 |
2018 Term Loan Facility | |
Derivative [Line Items] | |
Aggregate notional amount | 350 |
2017 Term Loan Facility | |
Derivative [Line Items] | |
Aggregate notional amount | $ 200 |
Restructuring and Related Cha_3
Restructuring and Related Charges (Summary) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 25,914 | $ 36,902 | $ 160,395 |
EMS | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 21,500 | 16,300 | 51,300 |
DMS | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 2,600 | 16,600 | 82,400 |
Non-allocated charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 1,800 | 4,000 | 26,700 |
Employee severance and benefit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 16,029 | 16,269 | 56,834 |
Lease costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | (41) | 1,596 | 3,966 |
Asset write-off costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | (3,566) | 16,264 | 94,346 |
Other costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 13,492 | $ 2,773 | $ 5,249 |
Restructuring and Related Cha_4
Restructuring and Related Charges Restructuring and Related Charges (Additional Information) (Details) - USD ($) $ in Millions | Sep. 20, 2019 | Aug. 31, 2019 |
2017 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Total pre-tax restructuring and other related costs expected to be recognized | $ 195 | |
2020 Restructuring Plan | Subsequent Event | ||
Restructuring Cost and Reserve [Line Items] | ||
Total pre-tax restructuring and other related costs expected to be recognized | $ 85 |
Restructuring and Related Cha_5
Restructuring and Related Charges (Cumulative Charges) (Details) - 2017 Restructuring Plan $ in Thousands | Aug. 31, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | $ 194,546 |
EMS | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 62,300 |
DMS | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 101,600 |
Unallocated costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 30,700 |
Employee severance and benefit costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 74,656 |
Lease costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 5,521 |
Asset write-off costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 106,974 |
Other costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | $ 7,395 |
Restructuring and Related Cha_6
Restructuring and Related Charges (Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring related charges | $ 25,914 | $ 36,902 | $ 160,395 |
Employee severance and benefit costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring related charges | 16,029 | 16,269 | 56,834 |
Lease costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring related charges | (41) | 1,596 | 3,966 |
Asset write-off costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring related charges | (3,566) | 16,264 | 94,346 |
2017 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 21,337 | 38,388 | |
Restructuring related charges | 14,493 | 36,902 | |
Asset write-off charge and other non-cash activity | 3,054 | (15,841) | |
Cash payments | (32,953) | (38,112) | |
Balance as of end of period | 5,931 | 21,337 | 38,388 |
2017 Restructuring Plan | Employee severance and benefit costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 18,131 | 33,580 | |
Restructuring related charges | 16,029 | 16,269 | |
Asset write-off charge and other non-cash activity | (494) | (127) | |
Cash payments | (30,504) | (31,591) | |
Balance as of end of period | 3,162 | 18,131 | 33,580 |
2017 Restructuring Plan | Lease costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 2,684 | 1,665 | |
Restructuring related charges | (41) | 1,596 | |
Asset write-off charge and other non-cash activity | 0 | 525 | |
Cash payments | (663) | (1,102) | |
Balance as of end of period | 1,980 | 2,684 | 1,665 |
2017 Restructuring Plan | Asset write-off costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 0 | 0 | |
Restructuring related charges | (3,566) | 16,264 | |
Asset write-off charge and other non-cash activity | 3,566 | (16,264) | |
Cash payments | 0 | 0 | |
Balance as of end of period | 0 | 0 | 0 |
2017 Restructuring Plan | Other Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 522 | 3,143 | |
Restructuring related charges | 2,071 | 2,773 | |
Asset write-off charge and other non-cash activity | (18) | 25 | |
Cash payments | (1,786) | (5,419) | |
Balance as of end of period | $ 789 | $ 522 | $ 3,143 |
Business Acquisitions (Fiscal Y
Business Acquisitions (Fiscal Year 2019) (Details) - JJMD - USD ($) $ in Millions | Sep. 30, 2019 | Apr. 29, 2019 | Apr. 29, 2019 |
Business Acquisition [Line Items] | |||
Amount of cash paid for business acquisitions | $ 153.2 | $ 153.2 | |
Assets acquired | 167.6 | 167.6 | |
Liabilities assumed | $ 14.4 | $ 14.4 | |
Subsequent Event | |||
Business Acquisition [Line Items] | |||
Amount of cash paid for business acquisitions | $ 117.1 |
Business Acquisitions (Fiscal_2
Business Acquisitions (Fiscal Year 2018) (Details) - USD ($) $ in Thousands | Sep. 01, 2017 | Aug. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 22,577 | |
True-Tech | ||
Business Acquisition [Line Items] | ||
Amount of cash paid for business acquisitions | $ 95,900 | |
Assets acquired | 114,700 | |
Intangible assets acquired | 25,900 | |
Goodwill | 22,600 | |
Liabilities assumed | $ 18,800 |
Business Acquisitions (Fiscal_3
Business Acquisitions (Fiscal Year 2017) (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Aug. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 22,577 | |
DMS | ||
Business Acquisition [Line Items] | ||
Goodwill | $ (8,186) | |
Lewis Engineering | ||
Business Acquisition [Line Items] | ||
Amount of cash paid for business acquisitions | $ 31,400 | |
Assets acquired | 32,300 | |
Goodwill | 8,200 | |
Intangible assets acquired | 14,600 | |
Liabilities assumed | 900 | |
Transaction costs | 800 | |
Lewis Engineering | DMS | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 8,200 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Recurring Basis) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
May 31, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Apr. 01, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Restructuring of securities loss | $ 29,632 | $ 0 | $ 0 | ||||
Senior Non-Convertible Cumulative Preferred Stock | iQor Holdings, Inc. | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Preferred stock | $ 50,000 | 55,000 | |||||
Accretion of dividends, rate | 8.00% | ||||||
Senior Non-Convertible Cumulative Preferred Stock | iQor Holdings, Inc. | Forecast | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Preferred stock | $ 75,000 | $ 65,000 | $ 55,000 | ||||
Asset-Backed Securitization Programs | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Deferred purchase price receivables (Note 2) | 0 | 533,000 | $ 569,000 | ||||
Fair Value, Recurring | Level 1 | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Cash equivalents | 27,804 | 21,412 | |||||
Short-term investments | 14,088 | 0 | |||||
Fair Value, Recurring | Level 3 | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Senior Non-Convertible Preferred Stock | 33,102 | 47,300 | |||||
Fair Value, Recurring | Level 3 | Asset-Backed Securitization Programs | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Deferred purchase price receivables (Note 2) | 0 | 533,113 | |||||
Fair Value, Recurring | Level 2 | Prepaid expenses and other current assets | Designated as Hedging Instruments | Forward foreign exchange contracts | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Forward foreign exchange contracts | 904 | 225 | |||||
Fair Value, Recurring | Level 2 | Prepaid expenses and other current assets | Not Designated as Hedging Instruments | Forward foreign exchange contracts | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Forward foreign exchange contracts | 6,878 | 10,125 | |||||
Fair Value, Recurring | Level 2 | Accrued expenses | Designated as Hedging Instruments | Forward foreign exchange contracts | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Liabilities | 15,999 | 13,364 | |||||
Fair Value, Recurring | Level 2 | Accrued expenses | Designated as Hedging Instruments | Interest rate swaps | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Liabilities | 5,918 | 117 | |||||
Fair Value, Recurring | Level 2 | Accrued expenses | Not Designated as Hedging Instruments | Forward foreign exchange contracts | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Liabilities | 55,391 | 46,171 | |||||
Fair Value, Recurring | Level 2 | Other liabilities | Designated as Hedging Instruments | Forward interest rate swaps | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Liabilities | $ 35,045 | $ 0 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Aug. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 2,496,465 | $ 2,518,699 |
Senior Notes | 5.625% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 398,886 | 397,995 |
Senior Notes, stated interest rate | 5.625% | |
Senior Notes | 5.625% Senior Notes | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 398,886 | 397,995 |
Senior Notes | 5.625% Senior Notes | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 416,000 | 415,704 |
Senior Notes | 4.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 498,004 | 497,350 |
Senior Notes, stated interest rate | 4.70% | |
Senior Notes | 4.700% Senior Notes | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 498,004 | 497,350 |
Senior Notes | 4.700% Senior Notes | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 525,890 | 503,545 |
Senior Notes | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 299,057 | 298,814 |
Senior Notes, stated interest rate | 4.90% | |
Senior Notes | 4.900% Senior Notes | Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 299,057 | 298,814 |
Senior Notes | 4.900% Senior Notes | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 318,704 | 306,535 |
Senior Notes | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 494,825 | $ 494,208 |
Senior Notes, stated interest rate | 3.95% | 3.95% |
Senior Notes | 3.950% Senior Notes | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 494,825 | $ 494,208 |
Senior Notes | 3.950% Senior Notes | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 509,845 | $ 476,010 |
New Accounting Guidance (Detail
New Accounting Guidance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | Sep. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash flow from investing activities | $ (872,454) | $ 1,240,914 | $ 2,141,263 | |
Cash flow from operating activities | (1,193,066) | 1,105,448 | 1,464,085 | |
Accounting Standards Update on Leases | Minimum | Subsequent Event | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 350,000 | |||
Lease liabilities | 350,000 | |||
Accounting Standards Update on Leases | Maximum | Subsequent Event | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | 500,000 | |||
Lease liabilities | $ 500,000 | |||
Accounting Standards Update 2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash flow from investing activities | 96,800 | 2,000,000 | 2,700,000 | |
Cash flow from operating activities | $ 96,800 | $ 2,000,000 | $ 2,700,000 |
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 | Aug. 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Assets | |||
Contract assets | $ 911,940 | $ 591,616 | $ 0 |
Inventories, net | 3,023,003 | 2,996,435 | 3,457,706 |
Prepaid expenses and other current assets | 501,573 | 1,103,729 | 1,141,000 |
Deferred income taxes | 198,827 | 209,927 | 218,252 |
Liabilities | |||
Contract liabilities | 511,329 | 690,142 | 0 |
Deferred income | 0 | 0 | |
Other accrued expenses | 1,402,657 | 1,041,371 | 1,000,979 |
Deferred income taxes | 115,818 | 117,362 | 114,385 |
Equity | |||
Retained earnings | 2,037,037 | 1,802,699 | 1,760,097 |
Balance without the adoption of ASU 2014-09 | |||
Assets | |||
Contract assets | 0 | 0 | |
Inventories, net | 3,761,591 | 3,457,706 | |
Prepaid expenses and other current assets | 514,769 | 1,141,000 | |
Deferred income taxes | 202,791 | 218,252 | |
Liabilities | |||
Contract liabilities | 0 | 0 | |
Deferred income | 521,035 | 691,365 | |
Other accrued expenses | 1,000,979 | ||
Deferred income taxes | 111,304 | 114,385 | |
Equity | |||
Retained earnings | $ 1,885,360 | $ 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 Balance Sheet) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
Assets | |||
Contract assets | $ 911,940 | $ 591,616 | $ 0 |
Inventories, net | 3,023,003 | 2,996,435 | 3,457,706 |
Prepaid expenses and other current assets | 501,573 | 1,103,729 | 1,141,000 |
Deferred income taxes | 198,827 | 209,927 | 218,252 |
Liabilities | |||
Contract liabilities | 511,329 | 690,142 | 0 |
Deferred income | 0 | 0 | |
Other accrued expenses | 1,877,908 | ||
Deferred income taxes | 115,818 | 117,362 | 114,385 |
Equity | |||
Retained earnings | 2,037,037 | $ 1,802,699 | 1,760,097 |
Balance without the adoption of ASU 2014-09 | |||
Assets | |||
Contract assets | 0 | 0 | |
Inventories, net | 3,761,591 | 3,457,706 | |
Prepaid expenses and other current assets | 514,769 | 1,141,000 | |
Deferred income taxes | 202,791 | 218,252 | |
Liabilities | |||
Contract liabilities | 0 | 0 | |
Deferred income | 521,035 | 691,365 | |
Other accrued expenses | 1,868,201 | ||
Deferred income taxes | 111,304 | 114,385 | |
Equity | |||
Retained earnings | $ 1,885,360 | $ 1,760,097 |
Revenue (Effect of New Revenu_2
Revenue (Effect of New Revenue Guidance, Impact on Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenue | $ 25,282,320 | ||
Cost of revenue | 23,368,919 | $ 20,388,624 | $ 17,517,478 |
Operating income | 701,356 | 542,153 | 410,230 |
Income tax expense | 161,230 | 285,860 | 129,066 |
Net income | 289,474 | $ 87,541 | $ 127,167 |
Balance without the adoption of ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net revenue | 24,864,754 | ||
Cost of revenue | 23,057,603 | ||
Operating income | 595,105 | ||
Income tax expense | 164,054 | ||
Net income | $ 180,399 |
Revenue (Revenues Disaggregated
Revenue (Revenues Disaggregated by Segment) (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Net revenue | $ 25,282,320 |
Point in time | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 8,932,798 |
Over time | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 16,349,522 |
EMS | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 15,430,529 |
EMS | Point in time | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 2,877,082 |
EMS | Over time | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 12,553,447 |
DMS | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 9,851,791 |
DMS | Point in time | |
Disaggregation of Revenue [Line Items] | |
Net revenue | 6,055,716 |
DMS | Over time | |
Disaggregation of Revenue [Line Items] | |
Net revenue | $ 3,796,075 |
Revenue (Contract Balances) (De
Revenue (Contract Balances) (Details) | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Impairment costs on contract assets | $ 0 |
Revenue recognized during period that was included in contract liability balance | $ 404,000,000 |
Revenue (Fulfillment Costs) (De
Revenue (Fulfillment Costs) (Details) | 12 Months Ended |
Aug. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Capitalized costs | $ 67,100,000 |
Amortization | 48,600,000 |
Impairment costs | $ 0 |
Schedule of Valuation and Qua_2
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reversal of valuation allowance | $ 17,500 | ||
U.S. | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reversal of valuation allowance | 17,500 | ||
Allowance for uncollectible accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 15,181 | $ 14,134 | $ 11,094 |
Additions and Adjustments Charged to Costs and Expenses | 15,867 | 12,545 | 6,255 |
Additions/ (Reductions) Charged to Other Accounts | 0 | 0 | 0 |
Write-offs/Reductions Charged to Costs and Expenses | (13,827) | (11,498) | (3,215) |
Balance at End of Period | 17,221 | 15,181 | 14,134 |
Reserve for excess and obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 60,940 | 46,013 | 32,221 |
Additions and Adjustments Charged to Costs and Expenses | 34,091 | 35,538 | 46,030 |
Additions/ (Reductions) Charged to Other Accounts | 0 | 0 | 0 |
Write-offs/Reductions Charged to Costs and Expenses | (25,478) | (20,611) | (32,238) |
Balance at End of Period | 69,553 | 60,940 | 46,013 |
Valuation allowance for deferred taxes | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 223,487 | 285,559 | 344,828 |
Additions and Adjustments Charged to Costs and Expenses | 22,750 | 18,418 | 65,300 |
Additions/ (Reductions) Charged to Other Accounts | 58,117 | (886) | (97,203) |
Write-offs/Reductions Charged to Costs and Expenses | (16,750) | (79,604) | (27,366) |
Balance at End of Period | $ 287,604 | $ 223,487 | $ 285,559 |