Cover Page
Cover Page - shares | 6 Months Ended | |
Feb. 28, 2023 | Mar. 29, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-14063 | |
Entity Registrant Name | JABIL INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-1886260 | |
Entity Address, Address Line One | 10800 Roosevelt Boulevard North | |
Entity Address, City or Town | St. Petersburg | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33716 | |
City Area Code | 727 | |
Local Phone Number | 577-9749 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | JBL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 132,684,313 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000898293 | |
Current Fiscal Year End Date | --08-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 28, 2023 | Aug. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,200 | $ 1,478 |
Accounts receivable, net of allowance for credit losses | 3,715 | 3,995 |
Contract assets | 1,175 | 1,196 |
Inventories, net | 6,519 | 6,128 |
Prepaid expenses and other current assets | 1,172 | 1,111 |
Total current assets | 13,781 | 13,908 |
Property, plant and equipment, net of accumulated depreciation of $5,963 as of February 28, 2023 and $5,624 as of August 31, 2022 | 3,903 | 3,954 |
Operating lease right-of-use asset | 501 | 500 |
Goodwill | 710 | 704 |
Intangible assets, net of accumulated amortization of $489 as of February 28, 2023 and $471 as of August 31, 2022 | 142 | 158 |
Deferred income taxes | 217 | 199 |
Other assets | 313 | 294 |
Total assets | 19,567 | 19,717 |
Current liabilities: | ||
Current installments of notes payable and long-term debt | 323 | 300 |
Accounts payable | 6,965 | 8,006 |
Accrued expenses | 5,866 | 5,272 |
Current operating lease liabilities | 128 | 119 |
Total current liabilities | 13,282 | 13,697 |
Notes payable and long-term debt, less current installments | 2,577 | 2,575 |
Other liabilities | 297 | 272 |
Non-current operating lease liabilities | 405 | 417 |
Income tax liabilities | 206 | 182 |
Deferred income taxes | 126 | 122 |
Total liabilities | 16,893 | 17,265 |
Commitments and contingencies | ||
Jabil Inc. stockholders’ equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and no shares outstanding | 0 | 0 |
Common stock, $0.001 par value, authorized 500,000,000 shares; 273,531,447 and 270,891,715 shares issued and 133,238,368 and 135,493,980 shares outstanding as of February 28, 2023 and August 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 2,742 | 2,655 |
Retained earnings | 4,046 | 3,638 |
Accumulated other comprehensive income (loss) | 9 | (42) |
Treasury stock at cost, 140,293,079 and 135,397,735 shares as of February 28, 2023 and August 31, 2022, respectively | (4,124) | (3,800) |
Total Jabil Inc. stockholders’ equity | 2,673 | 2,451 |
Noncontrolling interests | 1 | 1 |
Total equity | 2,674 | 2,452 |
Total liabilities and equity | $ 19,567 | $ 19,717 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Feb. 28, 2023 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 5,963 | $ 5,624 |
Intangible assets, accumulated amortization | $ 489 | $ 471 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 273,531,447 | 270,891,715 |
Common stock, shares outstanding (in shares) | 133,238,368 | 135,493,980 |
Treasury stock at cost, shares (in shares) | 140,293,079 | 135,397,735 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income Statement [Abstract] | ||||
Net revenue | $ 8,134 | $ 7,553 | $ 17,769 | $ 16,120 |
Cost of revenue | 7,473 | 6,944 | 16,365 | 14,836 |
Gross profit | 661 | 609 | 1,404 | 1,284 |
Operating expenses: | ||||
Selling, general and administrative | 285 | 280 | 604 | 588 |
Research and development | 8 | 8 | 17 | 17 |
Amortization of intangibles | 9 | 8 | 17 | 16 |
Restructuring, severance and related charges | 0 | 0 | 45 | 0 |
Operating income | 359 | 313 | 721 | 663 |
Other expense (income) | 17 | (4) | 32 | (3) |
Interest income | (17) | 0 | (30) | (1) |
Interest expense | 72 | 33 | 133 | 66 |
Income before income tax | 287 | 284 | 586 | 601 |
Income tax expense | 80 | 62 | 156 | 138 |
Net income | 207 | 222 | 430 | 463 |
Net income attributable to noncontrolling interests, net of tax | 0 | 0 | 0 | 0 |
Net income attributable to Jabil Inc. | $ 207 | $ 222 | $ 430 | $ 463 |
Earnings per share attributable to the stockholders of Jabil Inc.: | ||||
Basic (in usd per share) | $ 1.55 | $ 1.55 | $ 3.21 | $ 3.22 |
Diluted (in usd per share) | $ 1.52 | $ 1.51 | $ 3.14 | $ 3.15 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 133.6 | 143.5 | 134.2 | 143.8 |
Diluted (in shares) | 136.3 | 146.4 | 137.1 | 147 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 207 | $ 222 | $ 430 | $ 463 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation | 14 | 16 | 18 | (11) |
Change in derivative instruments: | ||||
Change in fair value of derivatives | 18 | 19 | (7) | 25 |
Adjustment for net losses (gains) realized and included in net income | 1 | (5) | 44 | (3) |
Total change in derivative instruments | 19 | 14 | 37 | 22 |
Actuarial loss | (2) | (5) | (5) | (10) |
Prior service credit | 0 | 1 | 1 | 2 |
Total other comprehensive income | 31 | 26 | 51 | 3 |
Comprehensive income | 238 | 248 | 481 | 466 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Jabil Inc. | $ 238 | $ 248 | $ 481 | $ 466 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common stock: | Additional paid-in capital: | Retained earnings: | Accumulated other comprehensive (loss) income: | Treasury stock: | Noncontrolling interests: |
Beginning Balance at Aug. 31, 2021 | $ 2,137 | $ 2,533 | $ 2,688 | $ (25) | $ (3,060) | $ 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under employee stock purchase plan | 26 | ||||||
Recognition of stock-based compensation | 49 | ||||||
Declared dividends | (24) | ||||||
Net income attributable to Jabil Inc. | 463 | 463 | 0 | ||||
Total other comprehensive income | 3 | 3 | |||||
Purchases of treasury stock under employee stock plans | (44) | ||||||
Treasury shares purchased | (272) | ||||||
Ending Balance at Feb. 28, 2022 | 2,338 | $ 0 | 2,608 | 3,127 | (22) | (3,376) | 1 |
Beginning Balance at Nov. 30, 2021 | 2,207 | 2,567 | 2,917 | (48) | (3,230) | 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under employee stock purchase plan | 26 | ||||||
Recognition of stock-based compensation | 15 | ||||||
Declared dividends | (12) | ||||||
Net income attributable to Jabil Inc. | 222 | 222 | 0 | ||||
Total other comprehensive income | 26 | 26 | |||||
Purchases of treasury stock under employee stock plans | (1) | ||||||
Treasury shares purchased | (145) | ||||||
Ending Balance at Feb. 28, 2022 | 2,338 | 0 | 2,608 | 3,127 | (22) | (3,376) | 1 |
Beginning Balance at Aug. 31, 2022 | 2,452 | 2,655 | 3,638 | (42) | (3,800) | 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under employee stock purchase plan | 27 | ||||||
Recognition of stock-based compensation | 60 | ||||||
Declared dividends | (22) | ||||||
Net income attributable to Jabil Inc. | 430 | 430 | 0 | ||||
Total other comprehensive income | 51 | 51 | |||||
Purchases of treasury stock under employee stock plans | (36) | ||||||
Treasury shares purchased | (288) | ||||||
Ending Balance at Feb. 28, 2023 | 2,674 | 0 | 2,742 | 4,046 | 9 | (4,124) | 1 |
Beginning Balance at Nov. 30, 2022 | 2,530 | 2,696 | 3,849 | (22) | (3,994) | 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under employee stock purchase plan | 27 | ||||||
Recognition of stock-based compensation | 19 | ||||||
Declared dividends | (10) | ||||||
Net income attributable to Jabil Inc. | 207 | 207 | 0 | ||||
Total other comprehensive income | 31 | 31 | |||||
Purchases of treasury stock under employee stock plans | (3) | ||||||
Treasury shares purchased | (127) | ||||||
Ending Balance at Feb. 28, 2023 | $ 2,674 | $ 0 | $ 2,742 | $ 4,046 | $ 9 | $ (4,124) | $ 1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Cash flows provided by operating activities: | ||
Net income | $ 430 | $ 463 |
Depreciation, amortization, and other, net | 514 | 524 |
Change in operating assets and liabilities, exclusive of net assets acquired | (364) | (787) |
Net cash provided by operating activities | 580 | 200 |
Cash flows used in investing activities: | ||
Acquisition of property, plant and equipment | (637) | (704) |
Proceeds and advances from sale of property, plant and equipment | 169 | 430 |
Cash paid for business and intangible asset acquisitions, net of cash | 0 | (18) |
Other, net | (16) | 0 |
Net cash used in investing activities | (484) | (292) |
Cash flows used in financing activities: | ||
Borrowings under debt agreements | 2,021 | 984 |
Payments toward debt agreements | (2,070) | (1,038) |
Payments to acquire treasury stock | (288) | (272) |
Dividends paid to stockholders | (23) | (25) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 27 | 26 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (36) | (44) |
Other, net | (2) | (12) |
Net cash used in financing activities | (371) | (381) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (1) |
Net decrease in cash and cash equivalents | (278) | (474) |
Cash and cash equivalents at beginning of period | 1,478 | 1,567 |
Cash and cash equivalents at end of period | $ 1,200 | $ 1,093 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in the Annual Report on Form 10-K of Jabil Inc. (the “Company”) for the fiscal year ended August 31, 2022. Results for the six months ended February 28, 2023 are not necessarily an indication of the results that may be expected for the full fiscal year ending August 31, 2023. |
Trade Accounts Receivable Sale
Trade Accounts Receivable Sale Programs | 6 Months Ended |
Feb. 28, 2023 | |
Transfers and Servicing [Abstract] | |
Trade Accounts Receivable Sale Programs | Trade Accounts Receivable Sale Programs The Company regularly sells designated pools of high credit quality trade accounts receivable, at a discount, under uncommitted trade accounts receivable sale programs to unaffiliated financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the respective financial institutions. As of February 28, 2023, the Company may elect to sell receivables and the unaffiliated financial institutions may elect to purchase specific accounts receivable at any one time up to a: (i) maximum aggregate amount available of $2.1 billion under nine trade accounts receivable sale programs, (ii) maximum amount available of 400 million CNY under one trade accounts receivable sale program and (iii) maximum amount available of 100 million CHF under one trade accounts receivable sale program. The trade accounts receivable sale programs expire on various dates through 2025. The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the trade accounts receivable sale programs. Servicing fees related to the trade accounts receivable sale programs recognized during the three months and six months ended February 28, 2023 and 2022 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Trade accounts receivable sold (1) $ 2,922 $ 1,966 $ 6,450 $ 3,934 Cash proceeds received $ 2,914 $ 1,965 $ 6,432 $ 3,932 Pre-tax losses on sale of receivables (2) $ 8 $ 1 $ 18 $ 2 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. Certain Jabil entities participating in the global asset-backed securitization program continuously sell designated pools of trade accounts receivable to a special purpose entity, which in turn sells certain of the receivables at a discount to conduits administered by an unaffiliated financial institution on a monthly basis. In addition, a foreign entity participating in the global asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. The Company continues servicing the receivables sold and in exchange receives a servicing fee under the global asset-backed securitization program. Servicing fees related to the global asset-backed securitization program recognized during the three months and six months ended February 28, 2023 and 2022 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. The special purpose entity in the global asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Condensed Consolidated Financial Statements. Certain unsold receivables covering up to the maximum amount of net cash proceeds available under the domestic, or U.S., portion of the global asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of February 28, 2023. The global asset-backed securitization program expires on November 25, 2024 and the maximum amount of net cash proceeds available at any one time is $600 million. As of February 28, 2023, the Company had no available liquidity under its global asset-backed securitization program. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Trade accounts receivable sold (1) $ 998 $ 1,000 $ 2,064 $ 2,032 Cash proceeds received (2) $ 989 $ 999 $ 2,047 $ 2,029 Pre-tax losses on sale of receivables (3) $ 9 $ 1 $ 17 $ 3 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (3) Recorded to other expense within the Condensed Consolidated Statements of Operations. |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in millions): February 28, 2023 August 31, 2022 Raw materials $ 5,576 $ 4,918 Work in process 499 687 Finished goods 522 605 Reserve for excess and obsolete inventory (78) (82) Inventories, net $ 6,519 $ 6,128 |
Leases
Leases | 6 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Leases | Leases During fiscal year 2023, the Company entered into new operating and finance leases. The future minimum lease payments under these new leases as of February 28, 2023 were as follows (in millions): Payments due by period Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 70 $ 19 $ 29 $ 17 $ 5 Finance lease obligations (1) $ 75 $ 45 $ 30 $ — $ — |
Leases | Leases During fiscal year 2023, the Company entered into new operating and finance leases. The future minimum lease payments under these new leases as of February 28, 2023 were as follows (in millions): Payments due by period Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 70 $ 19 $ 29 $ 17 $ 5 Finance lease obligations (1) $ 75 $ 45 $ 30 $ — $ — |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 6 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of February 28, 2023 and August 31, 2022 are summarized below (in millions): Maturity Date February 28, 2023 August 31, 2022 4.900% Senior Notes Jul 14, 2023 $ 300 $ 300 3.950% Senior Notes Jan 12, 2028 497 497 3.600% Senior Notes Jan 15, 2030 496 496 3.000% Senior Notes Jan 15, 2031 593 592 1.700% Senior Notes Apr 15, 2026 497 497 4.250% Senior Notes May 15, 2027 494 493 Borrowings under credit facilities (1)(2) Jan 22, 2025 and Jan 22, 2027 23 — Borrowings under loans Jul 31, 2026 — — Total notes payable and long-term debt 2,900 2,875 Less current installments of notes payable and long-term debt 323 300 Notes payable and long-term debt, less current installments $ 2,577 $ 2,575 (1) On February 10, 2023, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (as amended, the “Credit Facility”). The Amendment, among other things, (i) instituted certain amendments to the sustainability-linked adjustments to the interest rates applicable to borrowings under the three-year revolving credit facility (the “Three-Year Revolving Credit Facility”) and the Company’s five-year revolving credit facility (the “Five-Year Revolving Credit Facility”), (ii) established customary SOFR, CDOR, EURIBOR and TIBOR provisions, which replaced the LIBOR provisions set forth in the existing agreement, and (iii) extended the termination date of the Three-Year Revolving Credit Facility to January 22, 2025, and of the Five-Year Revolving Credit Facility to January 22, 2027. (2) As of February 28, 2023, the Company has $3.8 billion in available unused borrowing capacity under its revolving credit facilities. The Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $3.2 billion under its commercial paper program. Debt Covenants Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the revolving credit facilities and the 4.900% Senior Notes contain debt leverage and interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 4.900%, 3.950%, 3.600%, 3.000%, 1.700% or 4.250% Senior Notes upon a change of control. As of February 28, 2023 and August 31, 2022, the Company was in compliance with its debt covenants. |
Asset-Backed Securitization Pro
Asset-Backed Securitization Program | 6 Months Ended |
Feb. 28, 2023 | |
Transfers and Servicing [Abstract] | |
Asset-Backed Securitization Program | Trade Accounts Receivable Sale Programs The Company regularly sells designated pools of high credit quality trade accounts receivable, at a discount, under uncommitted trade accounts receivable sale programs to unaffiliated financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the respective financial institutions. As of February 28, 2023, the Company may elect to sell receivables and the unaffiliated financial institutions may elect to purchase specific accounts receivable at any one time up to a: (i) maximum aggregate amount available of $2.1 billion under nine trade accounts receivable sale programs, (ii) maximum amount available of 400 million CNY under one trade accounts receivable sale program and (iii) maximum amount available of 100 million CHF under one trade accounts receivable sale program. The trade accounts receivable sale programs expire on various dates through 2025. The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the trade accounts receivable sale programs. Servicing fees related to the trade accounts receivable sale programs recognized during the three months and six months ended February 28, 2023 and 2022 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Trade accounts receivable sold (1) $ 2,922 $ 1,966 $ 6,450 $ 3,934 Cash proceeds received $ 2,914 $ 1,965 $ 6,432 $ 3,932 Pre-tax losses on sale of receivables (2) $ 8 $ 1 $ 18 $ 2 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. Certain Jabil entities participating in the global asset-backed securitization program continuously sell designated pools of trade accounts receivable to a special purpose entity, which in turn sells certain of the receivables at a discount to conduits administered by an unaffiliated financial institution on a monthly basis. In addition, a foreign entity participating in the global asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. The Company continues servicing the receivables sold and in exchange receives a servicing fee under the global asset-backed securitization program. Servicing fees related to the global asset-backed securitization program recognized during the three months and six months ended February 28, 2023 and 2022 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. The special purpose entity in the global asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Condensed Consolidated Financial Statements. Certain unsold receivables covering up to the maximum amount of net cash proceeds available under the domestic, or U.S., portion of the global asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of February 28, 2023. The global asset-backed securitization program expires on November 25, 2024 and the maximum amount of net cash proceeds available at any one time is $600 million. As of February 28, 2023, the Company had no available liquidity under its global asset-backed securitization program. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Trade accounts receivable sold (1) $ 998 $ 1,000 $ 2,064 $ 2,032 Cash proceeds received (2) $ 989 $ 999 $ 2,047 $ 2,029 Pre-tax losses on sale of receivables (3) $ 9 $ 1 $ 17 $ 3 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (3) Recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Feb. 28, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in millions): February 28, 2023 August 31, 2022 Inventory deposits $ 1,975 $ 1,586 Contract liabilities (1) 1,128 796 Accrued compensation and employee benefits 653 806 Other accrued expenses 2,110 2,084 Accrued expenses $ 5,866 $ 5,272 (1) Revenue recognized during the six months ended February 28, 2023 and 2022 that was included in the contract liability balance as of August 31, 2022 and 2021 was $254 million and $196 million , respectively. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 6 Months Ended |
Feb. 28, 2023 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Employee Benefits | Postretirement and Other Employee Benefits Net Periodic Benefit Cost The following table provides information about the net periodic benefit cost for all plans for the three months and six months ended February 28, 2023 and 2022 (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Service cost (1) $ 4 $ 6 $ 8 $ 12 Interest cost (2) 3 1 6 2 Expected long-term return on plan assets (2) (3) (4) (8) (8) Recognized actuarial gain (2) (2) (3) (4) (6) Amortization of actuarial gain (2)(3) (2) (2) (3) (4) Amortization of prior service cost (2) 1 1 2 2 Net periodic benefit cost (credit) $ 1 $ (1) $ 1 $ (2) (1) Service cost is recognized in cost of revenue in the Condensed Consolidated Statements of Operations. (2) Components are recognized in other expense in the Condensed Consolidated Statements of Operations. (3) Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Feb. 28, 2023 | |
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 $1.0 billion and $1.4 billion as of February 28, 2023 and August 31, 2022, 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 March 1, 2023 and November 30, 2023. 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 February 28, 2023 and August 31, 2022, was $3.6 billion and $3.4 billion, respectively. The gains and losses recognized in earnings due to amounts 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. In addition, the Company has entered into forward foreign currency exchange contracts to hedge a portion of its net investment in foreign currency denominated operations, which are designated as net investment hedges. The net investment hedges have an aggregate notional amount outstanding of $127 million and $0 million as of February 28, 2023 and August 31, 2022, respectively, and are expected to mature in August 2023. The effective portion of the gain or loss on net investment hedges is reported in OCI to offset the change in the carrying value of the net investment being hedged until the complete or substantially complete liquidation of the hedged foreign operation. The excluded components for the net investment hedges are not material and are recognized in interest expense. Refer to Note 16 – “Fair Value Measurements” for the fair values and classification of the Company’s derivative instruments. The following table presents the net gains (losses) from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in millions): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Gain (Loss) on Derivatives Recognized in Net Income Amount of Gain (Loss) Recognized in Net Income on Derivatives Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Forward foreign exchange contracts (1) Cost of revenue $ 30 $ 22 $ (16) $ 60 (1) For the three months ended February 28, 2023, the Company recognized $53 million of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. For the six months ended February 28, 2023, the Company recognized $4 million of foreign currency losses in cost of revenue, in addition to losses from the forward foreign exchange contracts. For the three months and six months ended February 28, 2022, the Company recognized $9 million and $37 million, respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. Interest Rate Risk Management The Company periodically enters into interest rate swaps to manage interest rate risk associated with the Company’s borrowings or anticipated debt issuances. Cash Flow Hedges The following table presents the interest rate swaps outstanding as of February 28, 2023, which have been designated as hedging instruments and are accounted for as cash flow hedges (in millions): Interest Rate Swap Summary Hedged Interest Rate Payments Aggregate Notional Amount Effective Date Expiration Date Forward Interest Rate Swap Anticipated Debt Issuance Fixed $ 150 May 24, 2021 July 31, 2024 (1)(2) Anticipated Debt Issuance Fixed $ 100 August 8, 2022 July 31, 2024 (1)(2) (1) The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap. (2) If the anticipated debt issuance occurs before July 31, 2024, the contracts will be terminated simultaneously with the debt issuance. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component for the six months ended February 28, 2023 (in millions): Foreign Derivative Actuarial Prior Total Balance as of August 31, 2022 $ (88) $ (3) $ 65 $ (16) $ (42) Other comprehensive income (loss) before reclassifications 18 (7) 2 (1) 12 Amounts reclassified from AOCI — 44 (7) 2 39 Other comprehensive income (loss) (1) 18 37 (5) 1 51 Balance as of February 28, 2023 $ (70) $ 34 $ 60 $ (15) $ 9 (1) Amounts are net of tax, which are immaterial. The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in millions): Three months ended Six months ended Comprehensive Income Components Financial Statement Line Item February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Realized losses (gains) on derivative instruments: (1) Foreign exchange contracts Cost of revenue $ 1 $ (6) $ 44 $ (5) Interest rate contracts Interest expense — 1 — 2 Actuarial gain (2) (4) (5) (7) (10) Prior service cost (2) 1 1 2 2 Total amounts reclassified from AOCI (3) $ (2) $ (9) $ 39 $ (11) (1) The Company expects to reclassify less than $1 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (2) Amounts are included in the computation of net periodic benefit cost. Refer to Note 8 – “Postretirement and Other Employee Benefits” for additional information. (3) Amounts are net of tax, which are immaterial for the three months and six months ended February 28, 2023 and 2022. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Feb. 28, 2023 | |
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 millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Restricted stock units $ 16 $ 12 $ 54 $ 44 Employee stock purchase plan 4 4 8 7 Total $ 20 $ 16 $ 62 $ 51 As of February 28, 2023, the shares available to be issued under t he 2021 Equity Incentive Plan were 8,437,901. Restricted Stock Units Certain key employees have been granted time-based, performance-based and market-based restricted stock unit awards (“restricted stock units”). The time-based restricted stock units generally vest on a graded vesting schedule over three years. T he 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 ha ve a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the six months ended February 28, 2023 and 2022, the Company awarded approximately 0.9 million and 0.7 million time-based restricted stock units, respectively, 0.2 million and 0.2 million performance-based restricted stock units, respectively, and 0.2 million and 0.2 million market-based restricted stock units, respectively. The following represents the stock-based compensation information as of the period indicated (in millions): February 28, 2023 Unrecognized stock-based compensation expense—restricted stock units $ 64 Remaining weighted-average period for restricted stock units expense 1.5 years Common Stock Outstanding The following represents the common stock outstanding for the periods indicated: Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Common stock outstanding: Beginning balances 134,231,300 144,166,009 135,493,980 144,496,077 Shares issued under employee stock purchase plan 629,336 520,483 629,336 520,483 Vesting of restricted stock 148,718 28,243 2,010,396 2,453,715 Purchases of treasury stock under employee stock plans (47,242) (9,719) (570,649) (700,274) Treasury shares purchased (1)(2) (1,723,744) (2,312,881) (4,324,695) (4,377,866) Ending balances 133,238,368 142,392,135 133,238,368 142,392,135 (1) In July 2021, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2022 Share Repurchase Program”). As of February 28, 2023, 16.5 million shares had been repurchased for $1.0 billion and no authorization remains under the 2022 Share Repurchase Program. (2) In September 2022, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2023 Share Repurchase Program”). As of February 28, 2023, 0.3 million shares had been repurchased for $25 million and $975 million remains available under the 2023 Share Repurchase Program. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 6 Months Ended |
Feb. 28, 2023 | |
Segment Reporting [Abstract] | |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the six months ended February 28, 2023, the Company’s five largest customers accounted for approximately 44% of its net revenue and 79 customers accounted for approximately 90% of its net revenue. Sales to these customers were reported in the Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”) operating segments. The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. Certain items are excluded from the calculation of segment income. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. The following table sets forth operating segment information (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Segment income and reconciliation of income before income tax EMS $ 205 $ 152 $ 403 $ 299 DMS 186 192 449 445 Total segment income $ 391 $ 344 $ 852 $ 744 Reconciling items: Amortization of intangibles (9) (8) (17) (16) Stock-based compensation expense and related charges (20) (16) (62) (51) Restructuring, severance and related charges — — (45) — Other expense (net of periodic benefit cost) (20) (3) (39) (11) Interest income 17 — 30 1 Interest expense (72) (33) (133) (66) Income before income tax $ 287 $ 284 $ 586 $ 601 The following table presents the Company’s revenues disaggregated by segment (in millions): Three months ended February 28, 2023 February 28, 2022 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 1,267 $ 1,416 $ 2,683 $ 1,327 $ 1,418 $ 2,745 Over time 2,784 2,667 5,451 2,447 2,361 4,808 Total $ 4,051 $ 4,083 $ 8,134 $ 3,774 $ 3,779 $ 7,553 Six months ended February 28, 2023 February 28, 2022 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 2,805 $ 3,696 $ 6,501 $ 2,734 $ 3,788 $ 6,522 Over time 5,792 5,476 11,268 4,898 4,700 9,598 Total $ 8,597 $ 9,172 $ 17,769 $ 7,632 $ 8,488 $ 16,120 The Company operates in more than 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 table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Foreign source revenue 84.0 % 83.5 % 85.0 % 84.2 % |
Restructuring, Severance and Re
Restructuring, Severance and Related Charges | 6 Months Ended |
Feb. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Severance and Related Charges | Restructuring, Severance and Related Charges Following is a summary of the Company’s restructuring, severance and related charges (in millions): Three months ended Six months ended February 28, 2023 (1) February 28, 2022 February 28, 2023 (1) February 28, 2022 Employee severance and benefit costs $ (4) $ — $ 36 $ 1 Lease costs — — — (1) Asset write-off costs 4 — 5 — Other costs — — 4 — Total restructuring, severance and related charges (2) $ — $ — $ 45 $ — (1) Primarily relates to headcount reduction to further optimize the Company’s business activities and includes $0 million and $4 million recorded in the EMS segment, $0 million and $33 million recorded in the DMS segment and $0 million $8 million of non-allocated charges for the three months and six months ended February 28, 2023, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs. (2) The restructuring liability is $34 million as of February 28, 2023, which primarily relates to employee severance and benefit costs incurred in fiscal year 2022 and the six months ended February 28, 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Income Tax Rate The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective income tax rate 27.6 % 21.7 % 26.6 % 22.8 % The effective income tax rate differed for the three months and six months ended February 28, 2023, compared to the three months and six months ended February 28, 2022, primarily due to: (i) a change in the jurisdictional mix of earnings, driven in part by restructuring charges for the six months ended February 28, 2023 and (ii) a $10 million income tax benefit associated with the reversal of a non-U.S. partial valuation allowance during the three months ended February 28, 2023. The effective income tax rate differed from the U.S. federal statutory income tax rate of 21.0% during the three months and six months ended February 28, 2023 and 2022, primarily due to: (i) the jurisdictional mix of earnings, (ii) losses in tax jurisdictions with existing valuation allowances, and (iii) tax incentives granted to sites in China, Malaysia, Singapore and Vietnam. |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 6 Months Ended |
Feb. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Dividends | Earnings Per Share and Dividends Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the period. The Company’s diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities. The difference between the weighted average number of basic shares outstanding and the weighted average number of diluted shares outstanding is primarily due to dilutive unvested restricted stock units. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be antidilutive. Performance-based restricted stock units are considered dilutive when the related performance criteria have been met assuming the end of the reporting period represents the end of the performance period. All potential shares of common stock are antidilutive in periods of net loss. Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Restricted stock units 363.7 465.6 363.7 465.6 Dividends The following table sets forth cash dividends declared by the Company to common stockholders during the six months ended February 28, 2023 and 2022 (in millions, except for per share data): Dividend Dividend Total of Cash Date of Record for Dividend Cash Fiscal Year 2023: October 20, 2022 $ 0.08 $ 12 November 15, 2022 December 2, 2022 January 26, 2023 $ 0.08 $ 10 February 15, 2023 March 2, 2023 Fiscal Year 2022: October 21, 2021 $ 0.08 $ 12 November 15, 2021 December 1, 2021 January 20, 2022 $ 0.08 $ 12 February 15, 2022 March 2, 2022 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 28, 2023 | |
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 millions): Fair Value Hierarchy February 28, 2023 August 31, 2022 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 5 $ 14 Prepaid expenses and other current assets: Short-term investments Level 1 22 16 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) 11 3 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 42 13 Other assets: Forward interest rate swap: Derivatives designated as hedging instruments (Note 9) Level 2 (3) 23 13 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) $ 14 $ 32 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 27 76 (1) Consist of investments that are readily convertible to cash with original maturities of 90 days or less. (2) The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges 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. (3) 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 values 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 (in millions): February 28, 2023 August 31, 2022 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 5) 4.900% Senior Notes Level 3 (1) $ 300 $ 299 $ 300 $ 300 3.950% Senior Notes Level 2 (2) $ 497 $ 463 $ 497 $ 471 3.600% Senior Notes Level 2 (2) $ 496 $ 439 $ 496 $ 440 3.000% Senior Notes Level 2 (2) $ 593 $ 492 $ 592 $ 500 1.700% Senior Notes Level 2 (2) $ 497 $ 446 $ 497 $ 446 4.250% Senior Notes Level 2 (2) $ 494 $ 475 $ 493 $ 483 (1) This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. |
New Accounting Guidance
New Accounting Guidance | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | New Accounting Guidance New accounting guidance adopted during the period did not have a material impact to the Company. Recently issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 6 Months Ended |
Feb. 28, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | New accounting guidance adopted during the period did not have a material impact to the Company. Recently issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Trade Accounts Receivable Sal_2
Trade Accounts Receivable Sale Programs (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Trade Accounts Receivable Sale Programs Amounts Recognized | In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Trade accounts receivable sold (1) $ 2,922 $ 1,966 $ 6,450 $ 3,934 Cash proceeds received $ 2,914 $ 1,965 $ 6,432 $ 3,932 Pre-tax losses on sale of receivables (2) $ 8 $ 1 $ 18 $ 2 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in millions): February 28, 2023 August 31, 2022 Raw materials $ 5,576 $ 4,918 Work in process 499 687 Finished goods 522 605 Reserve for excess and obsolete inventory (78) (82) Inventories, net $ 6,519 $ 6,128 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases | The future minimum lease payments under these new leases as of February 28, 2023 were as follows (in millions): Payments due by period Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 70 $ 19 $ 29 $ 17 $ 5 Finance lease obligations (1) $ 75 $ 45 $ 30 $ — $ — |
Schedule of Future Minimum Lease Payments under Finance Leases | The future minimum lease payments under these new leases as of February 28, 2023 were as follows (in millions): Payments due by period Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 70 $ 19 $ 29 $ 17 $ 5 Finance lease obligations (1) $ 75 $ 45 $ 30 $ — $ — |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Long-term Debt | Notes payable and long-term debt outstanding as of February 28, 2023 and August 31, 2022 are summarized below (in millions): Maturity Date February 28, 2023 August 31, 2022 4.900% Senior Notes Jul 14, 2023 $ 300 $ 300 3.950% Senior Notes Jan 12, 2028 497 497 3.600% Senior Notes Jan 15, 2030 496 496 3.000% Senior Notes Jan 15, 2031 593 592 1.700% Senior Notes Apr 15, 2026 497 497 4.250% Senior Notes May 15, 2027 494 493 Borrowings under credit facilities (1)(2) Jan 22, 2025 and Jan 22, 2027 23 — Borrowings under loans Jul 31, 2026 — — Total notes payable and long-term debt 2,900 2,875 Less current installments of notes payable and long-term debt 323 300 Notes payable and long-term debt, less current installments $ 2,577 $ 2,575 (1) On February 10, 2023, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (as amended, the “Credit Facility”). The Amendment, among other things, (i) instituted certain amendments to the sustainability-linked adjustments to the interest rates applicable to borrowings under the three-year revolving credit facility (the “Three-Year Revolving Credit Facility”) and the Company’s five-year revolving credit facility (the “Five-Year Revolving Credit Facility”), (ii) established customary SOFR, CDOR, EURIBOR and TIBOR provisions, which replaced the LIBOR provisions set forth in the existing agreement, and (iii) extended the termination date of the Three-Year Revolving Credit Facility to January 22, 2025, and of the Five-Year Revolving Credit Facility to January 22, 2027. (2) As of February 28, 2023, the Company has $3.8 billion in available unused borrowing capacity under its revolving credit facilities. The Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $3.2 billion under its commercial paper program. |
Asset-Backed Securitization P_2
Asset-Backed Securitization Program (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Asset-backed Securitization Programs Amounts Recognized | In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Trade accounts receivable sold (1) $ 998 $ 1,000 $ 2,064 $ 2,032 Cash proceeds received (2) $ 989 $ 999 $ 2,047 $ 2,029 Pre-tax losses on sale of receivables (3) $ 9 $ 1 $ 17 $ 3 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (3) Recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in millions): February 28, 2023 August 31, 2022 Inventory deposits $ 1,975 $ 1,586 Contract liabilities (1) 1,128 796 Accrued compensation and employee benefits 653 806 Other accrued expenses 2,110 2,084 Accrued expenses $ 5,866 $ 5,272 (1) Revenue recognized during the six months ended February 28, 2023 and 2022 that was included in the contract liability balance as of August 31, 2022 and 2021 was $254 million and $196 million , respectively. |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Information about Net Periodic Benefit Cost | The following table provides information about the net periodic benefit cost for all plans for the three months and six months ended February 28, 2023 and 2022 (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Service cost (1) $ 4 $ 6 $ 8 $ 12 Interest cost (2) 3 1 6 2 Expected long-term return on plan assets (2) (3) (4) (8) (8) Recognized actuarial gain (2) (2) (3) (4) (6) Amortization of actuarial gain (2)(3) (2) (2) (3) (4) Amortization of prior service cost (2) 1 1 2 2 Net periodic benefit cost (credit) $ 1 $ (1) $ 1 $ (2) (1) Service cost is recognized in cost of revenue in the Condensed Consolidated Statements of Operations. (2) Components are recognized in other expense in the Condensed Consolidated Statements of Operations. (3) Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Gains (Losses) from Forward Contracts Recorded in Consolidated Statements of Operations | The following table presents the net gains (losses) from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in millions): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Gain (Loss) on Derivatives Recognized in Net Income Amount of Gain (Loss) Recognized in Net Income on Derivatives Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Forward foreign exchange contracts (1) Cost of revenue $ 30 $ 22 $ (16) $ 60 |
Schedule of Interest Rate Swaps Outstanding | The following table presents the interest rate swaps outstanding as of February 28, 2023, which have been designated as hedging instruments and are accounted for as cash flow hedges (in millions): Interest Rate Swap Summary Hedged Interest Rate Payments Aggregate Notional Amount Effective Date Expiration Date Forward Interest Rate Swap Anticipated Debt Issuance Fixed $ 150 May 24, 2021 July 31, 2024 (1)(2) Anticipated Debt Issuance Fixed $ 100 August 8, 2022 July 31, 2024 (1)(2) (1) The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap. (2) If the anticipated debt issuance occurs before July 31, 2024, the contracts will be terminated simultaneously with the debt issuance. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
Schedule of Changes in AOCI | The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component for the six months ended February 28, 2023 (in millions): Foreign Derivative Actuarial Prior Total Balance as of August 31, 2022 $ (88) $ (3) $ 65 $ (16) $ (42) Other comprehensive income (loss) before reclassifications 18 (7) 2 (1) 12 Amounts reclassified from AOCI — 44 (7) 2 39 Other comprehensive income (loss) (1) 18 37 (5) 1 51 Balance as of February 28, 2023 $ (70) $ 34 $ 60 $ (15) $ 9 (1) Amounts are net of tax, which are immaterial. |
Schedule of Reclassification from AOCI | The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in millions): Three months ended Six months ended Comprehensive Income Components Financial Statement Line Item February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Realized losses (gains) on derivative instruments: (1) Foreign exchange contracts Cost of revenue $ 1 $ (6) $ 44 $ (5) Interest rate contracts Interest expense — 1 — 2 Actuarial gain (2) (4) (5) (7) (10) Prior service cost (2) 1 1 2 2 Total amounts reclassified from AOCI (3) $ (2) $ (9) $ 39 $ (11) (1) The Company expects to reclassify less than $1 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (2) Amounts are included in the computation of net periodic benefit cost. Refer to Note 8 – “Postretirement and Other Employee Benefits” for additional information. (3) Amounts are net of tax, which are immaterial for the three months and six months ended February 28, 2023 and 2022. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
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 millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Restricted stock units $ 16 $ 12 $ 54 $ 44 Employee stock purchase plan 4 4 8 7 Total $ 20 $ 16 $ 62 $ 51 |
Schedule of Share-based Compensation Information | The following represents the stock-based compensation information as of the period indicated (in millions): February 28, 2023 Unrecognized stock-based compensation expense—restricted stock units $ 64 Remaining weighted-average period for restricted stock units expense 1.5 years |
Schedule of Common Stock Outstanding | The following represents the common stock outstanding for the periods indicated: Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Common stock outstanding: Beginning balances 134,231,300 144,166,009 135,493,980 144,496,077 Shares issued under employee stock purchase plan 629,336 520,483 629,336 520,483 Vesting of restricted stock 148,718 28,243 2,010,396 2,453,715 Purchases of treasury stock under employee stock plans (47,242) (9,719) (570,649) (700,274) Treasury shares purchased (1)(2) (1,723,744) (2,312,881) (4,324,695) (4,377,866) Ending balances 133,238,368 142,392,135 133,238,368 142,392,135 (1) In July 2021, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2022 Share Repurchase Program”). As of February 28, 2023, 16.5 million shares had been repurchased for $1.0 billion and no authorization remains under the 2022 Share Repurchase Program. (2) In September 2022, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2023 Share Repurchase Program”). As of February 28, 2023, 0.3 million shares had been repurchased for $25 million and $975 million remains available under the 2023 Share Repurchase Program. |
Concentration of Risk and Seg_2
Concentration of Risk and Segment Data (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Income | The following table sets forth operating segment information (in millions): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Segment income and reconciliation of income before income tax EMS $ 205 $ 152 $ 403 $ 299 DMS 186 192 449 445 Total segment income $ 391 $ 344 $ 852 $ 744 Reconciling items: Amortization of intangibles (9) (8) (17) (16) Stock-based compensation expense and related charges (20) (16) (62) (51) Restructuring, severance and related charges — — (45) — Other expense (net of periodic benefit cost) (20) (3) (39) (11) Interest income 17 — 30 1 Interest expense (72) (33) (133) (66) Income before income tax $ 287 $ 284 $ 586 $ 601 |
Schedule of Revenues Disaggregated by Segment | The following table presents the Company’s revenues disaggregated by segment (in millions): Three months ended February 28, 2023 February 28, 2022 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 1,267 $ 1,416 $ 2,683 $ 1,327 $ 1,418 $ 2,745 Over time 2,784 2,667 5,451 2,447 2,361 4,808 Total $ 4,051 $ 4,083 $ 8,134 $ 3,774 $ 3,779 $ 7,553 Six months ended February 28, 2023 February 28, 2022 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 2,805 $ 3,696 $ 6,501 $ 2,734 $ 3,788 $ 6,522 Over time 5,792 5,476 11,268 4,898 4,700 9,598 Total $ 8,597 $ 9,172 $ 17,769 $ 7,632 $ 8,488 $ 16,120 |
Schedule of Foreign Source Revenue | The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Foreign source revenue 84.0 % 83.5 % 85.0 % 84.2 % |
Restructuring, Severance and _2
Restructuring, Severance and Related Charges (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges | Following is a summary of the Company’s restructuring, severance and related charges (in millions): Three months ended Six months ended February 28, 2023 (1) February 28, 2022 February 28, 2023 (1) February 28, 2022 Employee severance and benefit costs $ (4) $ — $ 36 $ 1 Lease costs — — — (1) Asset write-off costs 4 — 5 — Other costs — — 4 — Total restructuring, severance and related charges (2) $ — $ — $ 45 $ — (1) Primarily relates to headcount reduction to further optimize the Company’s business activities and includes $0 million and $4 million recorded in the EMS segment, $0 million and $33 million recorded in the DMS segment and $0 million $8 million of non-allocated charges for the three months and six months ended February 28, 2023, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs. (2) The restructuring liability is $34 million as of February 28, 2023, which primarily relates to employee severance and benefit costs incurred in fiscal year 2022 and the six months ended February 28, 2023. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense | The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective income tax rate 27.6 % 21.7 % 26.6 % 22.8 % |
Earnings Per Share and Divide_2
Earnings Per Share and Dividends (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Earnings Per Share [Abstract] | |
Schedule 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): Three months ended Six months ended February 28, 2023 February 28, 2022 February 28, 2023 February 28, 2022 Restricted stock units 363.7 465.6 363.7 465.6 |
Schedule of Cash Dividends Declared by the Company to Common Stockholders | The following table sets forth cash dividends declared by the Company to common stockholders during the six months ended February 28, 2023 and 2022 (in millions, except for per share data): Dividend Dividend Total of Cash Date of Record for Dividend Cash Fiscal Year 2023: October 20, 2022 $ 0.08 $ 12 November 15, 2022 December 2, 2022 January 26, 2023 $ 0.08 $ 10 February 15, 2023 March 2, 2023 Fiscal Year 2022: October 21, 2021 $ 0.08 $ 12 November 15, 2021 December 1, 2021 January 20, 2022 $ 0.08 $ 12 February 15, 2022 March 2, 2022 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | 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 millions): Fair Value Hierarchy February 28, 2023 August 31, 2022 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 5 $ 14 Prepaid expenses and other current assets: Short-term investments Level 1 22 16 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) 11 3 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 42 13 Other assets: Forward interest rate swap: Derivatives designated as hedging instruments (Note 9) Level 2 (3) 23 13 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) $ 14 $ 32 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 27 76 (1) Consist of investments that are readily convertible to cash with original maturities of 90 days or less. (2) The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges 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. |
Schedule of 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 (in millions): February 28, 2023 August 31, 2022 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 5) 4.900% Senior Notes Level 3 (1) $ 300 $ 299 $ 300 $ 300 3.950% Senior Notes Level 2 (2) $ 497 $ 463 $ 497 $ 471 3.600% Senior Notes Level 2 (2) $ 496 $ 439 $ 496 $ 440 3.000% Senior Notes Level 2 (2) $ 593 $ 492 $ 592 $ 500 1.700% Senior Notes Level 2 (2) $ 497 $ 446 $ 497 $ 446 4.250% Senior Notes Level 2 (2) $ 494 $ 475 $ 493 $ 483 (1) This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows. |
Trade Accounts Receivable Sal_3
Trade Accounts Receivable Sale Programs - Additional Information (Details) - 6 months ended Feb. 28, 2023 | USD ($) program | CNY (¥) | CHF (SFr) |
USD | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum amount | $ | $ 2,100,000,000 | ||
Number of programs | 9 | ||
CNY | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum amount | ¥ | ¥ 400,000,000 | ||
Number of programs | 1 | ||
CHF | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum amount | SFr | SFr 100,000,000 | ||
Number of programs | 1 |
Trade Accounts Receivable Sal_4
Trade Accounts Receivable Sale Programs - Trade Accounts Receivable Sale Programs Amounts Recognized (Details) - Trade Accounts Receivable Sale Programs - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 2,922 | $ 1,966 | $ 6,450 | $ 3,934 |
Cash proceeds received | 2,914 | 1,965 | 6,432 | 3,932 |
Pre-tax losses on sale of receivables | $ 8 | $ 1 | $ 18 | $ 2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Feb. 28, 2023 | Aug. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,576 | $ 4,918 |
Work in process | 499 | 687 |
Finished goods | 522 | 605 |
Reserve for excess and obsolete inventory | (78) | (82) |
Inventories, net | $ 6,519 | $ 6,128 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Operating and Finance Leases (Details) $ in Millions | Feb. 28, 2023 USD ($) |
Operating lease obligations | |
Total | $ 70 |
Less than 1 year | 19 |
1-3 years | 29 |
3-5 years | 17 |
After 5 years | 5 |
Finance lease obligations | |
Total | 75 |
Less than 1 year | 45 |
1-3 years | 30 |
3-5 years | 0 |
After 5 years | 0 |
Operating and finance leases signed but not yet commenced | 204 |
Variable Interest Entity, Not Primary Beneficiary | |
Finance lease obligations | |
Operating and finance leases signed but not yet commenced | $ 122 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Schedule of Notes Payable and Long-term Debt (Details) - USD ($) | Feb. 10, 2023 | Feb. 28, 2023 | Aug. 31, 2022 |
Debt Instrument [Line Items] | |||
Total notes payable and long-term debt | $ 2,900,000,000 | $ 2,875,000,000 | |
Less current installments of notes payable and long-term debt | 323,000,000 | 300,000,000 | |
Notes payable and long-term debt, less current installments | $ 2,577,000,000 | 2,575,000,000 | |
Senior Notes | 4.900% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.90% | ||
Total notes payable and long-term debt | $ 300,000,000 | 300,000,000 | |
Senior Notes | 3.950% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.95% | ||
Total notes payable and long-term debt | $ 497,000,000 | 497,000,000 | |
Senior Notes | 3.600% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.60% | ||
Total notes payable and long-term debt | $ 496,000,000 | 496,000,000 | |
Senior Notes | 3.000% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3% | ||
Total notes payable and long-term debt | $ 593,000,000 | 592,000,000 | |
Senior Notes | 1.700% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.70% | ||
Total notes payable and long-term debt | $ 497,000,000 | 497,000,000 | |
Senior Notes | 4.250% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.25% | ||
Total notes payable and long-term debt | $ 494,000,000 | 493,000,000 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total notes payable and long-term debt | 23,000,000 | 0 | |
Available unused borrowing capacity | 3,800,000,000 | ||
Line of Credit | Revolving Credit Facility | Three-Year Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt term | 3 years | ||
Line of Credit | Revolving Credit Facility | Five-Year Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Line of Credit | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total notes payable and long-term debt | 0 | $ 0 | |
Line of Credit | Commercial Paper | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 3,200,000,000 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Additional Information (Details) - Senior Notes | Feb. 28, 2023 |
4.900% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.90% |
3.950% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.95% |
3.600% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.60% |
3.000% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3% |
1.700% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 1.70% |
4.250% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.25% |
Asset-Backed Securitization P_3
Asset-Backed Securitization Program - Additional Information (Details) | Feb. 28, 2023 USD ($) |
Transfers and Servicing [Abstract] | |
Maximum amount of net cash proceeds | $ 600,000,000 |
Available liquidity under its asset-backed securitization programs (up to) | $ 0 |
Asset-Backed Securitization P_4
Asset-Backed Securitization Program - Securitization Activity (Details) - Asset-Backed Securitization Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 998 | $ 1,000 | $ 2,064 | $ 2,032 |
Cash proceeds received | 989 | 999 | 2,047 | 2,029 |
Pre-tax losses on sale of receivables | $ 9 | $ 1 | $ 17 | $ 3 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Aug. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |||
Inventory deposits | $ 1,975 | $ 1,586 | |
Contract liabilities | 1,128 | 796 | |
Accrued compensation and employee benefits | 653 | 806 | |
Other accrued expenses | 2,110 | 2,084 | |
Accrued expenses | 5,866 | $ 5,272 | |
Revenue recognized during period that was included in contract liability balance | $ 254 | $ 196 |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 4 | $ 6 | $ 8 | $ 12 |
Interest cost | 3 | 1 | 6 | 2 |
Expected long-term return on plan assets | (3) | (4) | (8) | (8) |
Recognized actuarial gain | (2) | (3) | (4) | (6) |
Amortization of actuarial gains | (2) | (2) | (3) | (4) |
Amortization of prior service cost | 1 | 1 | 2 | 2 |
Net periodic benefit cost (credit) | $ 1 | $ (1) | $ 1 | $ (2) |
Percentage of gain (loss) corridor | 10% | 10% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Additional Information (Details) - Forward Interest Rate Swap - USD ($) $ in Millions | Feb. 28, 2023 | Aug. 31, 2022 |
Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 1,000 | $ 1,400 |
Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | 3,600 | 3,400 |
Net Investment Hedging | Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 127 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Instruments Recorded on Consolidated Statements of Operations (Details) - Forward foreign exchange contracts - Cost of revenue - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income on Derivatives | $ 30 | $ 22 | $ (16) | $ 60 |
Foreign currency losses | $ 53 | $ 9 | $ 4 | $ 37 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Cash Flow Hedges (Details) - Cash flow hedging - Interest rate swaps - Designated as hedging instruments | Feb. 28, 2023 USD ($) |
Debt obligation one | |
Derivative [Line Items] | |
Aggregate notional amount | $ 150,000,000 |
Debt obligation two | |
Derivative [Line Items] | |
Aggregate notional amount | $ 100,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Change in AOCI, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 2,530 | $ 2,207 | $ 2,452 | $ 2,137 |
Other comprehensive income (loss) before reclassifications | 12 | |||
Amounts reclassified from AOCI | 39 | |||
Total other comprehensive income | 31 | 26 | 51 | 3 |
Ending Balance | 2,674 | 2,338 | 2,674 | 2,338 |
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (22) | (48) | (42) | (25) |
Total other comprehensive income | 31 | 26 | 51 | 3 |
Ending Balance | 9 | $ (22) | 9 | $ (22) |
Foreign Currency Translation Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (88) | |||
Other comprehensive income (loss) before reclassifications | 18 | |||
Amounts reclassified from AOCI | 0 | |||
Total other comprehensive income | 18 | |||
Ending Balance | (70) | (70) | ||
Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (3) | |||
Other comprehensive income (loss) before reclassifications | (7) | |||
Amounts reclassified from AOCI | 44 | |||
Total other comprehensive income | 37 | |||
Ending Balance | 34 | 34 | ||
Actuarial Gain (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 65 | |||
Other comprehensive income (loss) before reclassifications | 2 | |||
Amounts reclassified from AOCI | (7) | |||
Total other comprehensive income | (5) | |||
Ending Balance | 60 | 60 | ||
Prior Service (Cost) Credit | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (16) | |||
Other comprehensive income (loss) before reclassifications | (1) | |||
Amounts reclassified from AOCI | 2 | |||
Total other comprehensive income | 1 | |||
Ending Balance | $ (15) | $ (15) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | $ 7,473 | $ 6,944 | $ 16,365 | $ 14,836 |
Interest expense | 72 | 33 | 133 | 66 |
Other expense (income) | 17 | (4) | 32 | (3) |
Total amounts reclassified from AOCI | (207) | (222) | (430) | (463) |
Loss to be reclassified in next 12 months (less than) | 1 | |||
Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total amounts reclassified from AOCI | (2) | (9) | 39 | (11) |
Reclassification out of AOCI | Realized losses (gain) on derivative instruments | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | 1 | (6) | 44 | (5) |
Reclassification out of AOCI | Realized losses (gain) on derivative instruments | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | 0 | 1 | 0 | 2 |
Reclassification out of AOCI | Actuarial gain | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other expense (income) | (4) | (5) | (7) | (10) |
Reclassification out of AOCI | Prior service cost | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other expense (income) | $ 1 | $ 1 | $ 2 | $ 2 |
Stockholders' Equity - Recogniz
Stockholders' Equity - Recognized Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 20 | $ 16 | $ 62 | $ 51 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 16 | 12 | 54 | 44 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4 | $ 4 | $ 8 | $ 7 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - shares | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Time-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock units awarded (in shares) | 900,000 | 700,000 |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock units awarded (in shares) | 200,000 | 200,000 |
Performance-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 150% | |
Market-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock units awarded (in shares) | 200,000 | 200,000 |
Market-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 200% | |
2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available to be issued (in shares) | 8,437,901 |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation Information (Details) $ in Millions | 6 Months Ended |
Feb. 28, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized stock-based compensation expense—restricted stock units | $ 64 |
Remaining weighted-average period for restricted stock units expense | 1 year 6 months |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Sep. 30, 2022 | Jul. 31, 2021 | |
Common stock outstanding: | ||||||
Common stock outstanding, beginning balances (in shares) | 135,493,980 | |||||
Common stock outstanding, ending balance (in shares) | 133,238,368 | 133,238,368 | ||||
2022 Share Repurchase Program | ||||||
Common stock outstanding: | ||||||
Share repurchase program, amount authorized | $ 1,000,000,000 | |||||
Number of shares repurchased (in shares) | 16,500,000 | |||||
Value of shares repurchased | $ 1,000,000,000 | |||||
Share repurchase program, remaining amount available | $ 0 | $ 0 | ||||
2023 Share Repurchase Program | ||||||
Common stock outstanding: | ||||||
Share repurchase program, amount authorized | $ 1,000,000,000 | |||||
Number of shares repurchased (in shares) | 300,000 | |||||
Value of shares repurchased | $ 25,000,000 | |||||
Share repurchase program, remaining amount available | $ 975,000,000 | $ 975,000,000 | ||||
Common stock: | ||||||
Common stock outstanding: | ||||||
Common stock outstanding, beginning balances (in shares) | 134,231,300 | 144,166,009 | 135,493,980 | 144,496,077 | ||
Shares issued under employee stock purchase plan (in shares) | 629,336 | 520,483 | 629,336 | 520,483 | ||
Vesting of restricted stock (in shares) | 148,718 | 28,243 | 2,010,396 | 2,453,715 | ||
Purchases of treasury stock under employee stock plans (in shares) | (47,242) | (9,719) | (570,649) | (700,274) | ||
Treasury shares purchased (in shares) | (1,723,744) | (2,312,881) | (4,324,695) | (4,377,866) | ||
Common stock outstanding, ending balance (in shares) | 133,238,368 | 142,392,135 | 133,238,368 | 142,392,135 |
Concentration of Risk and Seg_3
Concentration of Risk and Segment Data - Additional Information (Details) | 6 Months Ended |
Feb. 28, 2023 country | |
Revenue, Major Customer [Line Items] | |
Number of operating countries (more than) | 30 |
Five Largest Customers | Net revenue | Customer concentration | |
Revenue, Major Customer [Line Items] | |
Concentration risk | 44% |
79 customers | Net revenue | Customer concentration | |
Revenue, Major Customer [Line Items] | |
Concentration risk | 90% |
Concentration of Risk and Seg_4
Concentration of Risk and Segment Data - Segment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | $ 287 | $ 284 | $ 586 | $ 601 |
Reconciling items: | ||||
Amortization of intangibles | (9) | (8) | (17) | (16) |
Stock-based compensation expense and related charges | (20) | (16) | (62) | (51) |
Restructuring, severance and related charges | 0 | 0 | (45) | 0 |
Interest income | 17 | 0 | 30 | 1 |
Interest expense | (72) | (33) | (133) | (66) |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | 391 | 344 | 852 | 744 |
Operating Segments | EMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | 205 | 152 | 403 | 299 |
Reconciling items: | ||||
Restructuring, severance and related charges | 0 | (4) | ||
Operating Segments | DMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | 186 | 192 | 449 | 445 |
Reconciling items: | ||||
Restructuring, severance and related charges | 0 | (33) | ||
Segment Reconciling Items | ||||
Reconciling items: | ||||
Amortization of intangibles | (9) | (8) | (17) | (16) |
Stock-based compensation expense and related charges | (20) | (16) | (62) | (51) |
Restructuring, severance and related charges | 0 | 0 | (45) | 0 |
Other expense (net of periodic benefit cost) | (20) | (3) | (39) | (11) |
Interest income | 17 | 0 | 30 | 1 |
Interest expense | $ (72) | $ (33) | $ (133) | $ (66) |
Concentration of Risk and Seg_5
Concentration of Risk and Segment Data - Revenues Disaggregated by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 8,134 | $ 7,553 | $ 17,769 | $ 16,120 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 2,683 | 2,745 | 6,501 | 6,522 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 5,451 | 4,808 | 11,268 | 9,598 |
EMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 4,051 | 3,774 | 8,597 | 7,632 |
EMS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,267 | 1,327 | 2,805 | 2,734 |
EMS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 2,784 | 2,447 | 5,792 | 4,898 |
DMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 4,083 | 3,779 | 9,172 | 8,488 |
DMS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,416 | 1,418 | 3,696 | 3,788 |
DMS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 2,667 | $ 2,361 | $ 5,476 | $ 4,700 |
Concentration of Risk and Seg_6
Concentration of Risk and Segment Data - Foreign Source Revenue (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Foreign source revenue | Net revenue | Foreign source revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 84% | 83.50% | 85% | 84.20% |
Restructuring, Severance and _3
Restructuring, Severance and Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | $ 0 | $ 0 | $ 45 | $ 0 |
Restructuring liability | 34 | 34 | ||
Operating Segments | EMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 0 | 4 | ||
Operating Segments | DMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 0 | 33 | ||
Non-allocated charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 0 | 8 | ||
Employee severance and benefit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | (4) | 0 | 36 | 1 |
Lease costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 0 | 0 | 0 | (1) |
Asset write-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 4 | 0 | 5 | 0 |
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | $ 0 | $ 0 | $ 4 | $ 0 |
Income Taxes - Schedule of U.S.
Income Taxes - Schedule of U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 21% | 21% | 21% | 21% |
Effective income tax rate | 27.60% | 21.70% | 26.60% | 22.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 3 Months Ended |
Feb. 28, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Reversal of valuation allowance | $ 10 |
Earnings Per Share and Divide_3
Earnings Per Share and Dividends - Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of diluted earnings per share (in shares) | 363,700 | 465,600 | 363,700 | 465,600 |
Earnings Per Share and Divide_4
Earnings Per Share and Dividends - Cash Dividends Declared by the Company to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 26, 2023 | Oct. 20, 2022 | Jan. 20, 2022 | Oct. 21, 2021 |
Earnings Per Share [Abstract] | ||||
Dividends per share (in usd per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 10 | $ 12 | $ 12 | $ 12 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Feb. 28, 2023 | Aug. 31, 2022 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 5 | $ 14 |
Short-term investments | 22 | 16 |
Level 2 | Designated as hedging instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 11 | 3 |
Derivative liability | 14 | 32 |
Level 2 | Designated as hedging instruments | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 23 | 13 |
Level 2 | Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 42 | 13 |
Derivative liability | $ 27 | $ 76 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Feb. 28, 2023 | Aug. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 2,900 | $ 2,875 |
Senior Notes | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 4.90% | |
Carrying Amount | $ 300 | 300 |
Senior Notes | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3.95% | |
Carrying Amount | $ 497 | 497 |
Senior Notes | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3.60% | |
Carrying Amount | $ 496 | 496 |
Senior Notes | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3% | |
Carrying Amount | $ 593 | 592 |
Senior Notes | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 1.70% | |
Carrying Amount | $ 497 | 497 |
Senior Notes | 4.250% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 4.25% | |
Carrying Amount | $ 494 | 493 |
Senior Notes | Carrying Amount | Level 3 | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 300 | 300 |
Senior Notes | Carrying Amount | Level 2 | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 497 | 497 |
Senior Notes | Carrying Amount | Level 2 | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 496 | 496 |
Senior Notes | Carrying Amount | Level 2 | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 593 | 592 |
Senior Notes | Carrying Amount | Level 2 | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 497 | 497 |
Senior Notes | Carrying Amount | Level 2 | 4.250% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 494 | 493 |
Senior Notes | Fair Value | Level 3 | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 299 | 300 |
Senior Notes | Fair Value | Level 2 | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 463 | 471 |
Senior Notes | Fair Value | Level 2 | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 439 | 440 |
Senior Notes | Fair Value | Level 2 | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 492 | 500 |
Senior Notes | Fair Value | Level 2 | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 446 | 446 |
Senior Notes | Fair Value | Level 2 | 4.250% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 475 | $ 483 |