Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2016 | Jun. 23, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | JBL | |
Entity Registrant Name | JABIL CIRCUIT INC | |
Entity Central Index Key | 898,293 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 191,085,619 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 886,991 | $ 913,963 |
Accounts receivable, net of allowance for doubtful accounts of $11,474 at May 31, 2016 and $11,663 at August 31, 2015 | 1,296,924 | 1,467,247 |
Inventories | 2,292,350 | 2,507,264 |
Prepaid expenses and other current assets | 1,056,461 | 898,790 |
Deferred income taxes | 79,045 | |
Total current assets | 5,532,726 | 5,866,309 |
Property, plant and equipment, net of accumulated depreciation of $2,607,896 at May 31, 2016 and $2,239,422 at August 31, 2015 | 3,218,141 | 2,804,333 |
Goodwill | 584,793 | 462,382 |
Intangible assets, net of accumulated amortization of $222,022 at May 31, 2016 and $195,864 at August 31, 2015 | 308,822 | 283,536 |
Deferred income taxes | 150,836 | 85,169 |
Other assets | 110,756 | 101,478 |
Total assets | 9,906,074 | 9,603,207 |
Current liabilities: | ||
Current installments of notes payable, long-term debt and capital lease obligations | 359,885 | 323,833 |
Accounts payable | 3,191,304 | 3,663,264 |
Accrued expenses | 1,836,475 | 1,685,589 |
Deferred income taxes | 2,455 | |
Total current liabilities | 5,387,664 | 5,675,141 |
Notes payable, long-term debt and capital lease obligations, less current installments | 1,791,028 | 1,346,558 |
Other liabilities | 68,275 | 67,951 |
Income tax liabilities | 91,071 | 96,379 |
Deferred income taxes | 56,779 | 82,167 |
Total liabilities | $ 7,394,817 | $ 7,268,196 |
Commitments and contingencies | ||
Jabil Circuit, Inc. stockholders' equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and no shares outstanding | ||
Common stock, $0.001 par value, authorized 500,000,000 shares; 249,082,324 and 246,680,008 shares issued and 191,220,619 and 192,068,068 shares outstanding at May 31, 2016 and August 31, 2015, respectively | $ 249 | $ 247 |
Additional paid-in capital | 2,024,526 | 1,955,104 |
Retained earnings | 1,637,392 | 1,468,910 |
Accumulated other comprehensive loss | (46,107) | (50,854) |
Treasury stock at cost, 57,861,705 and 54,611,940 shares at May 31, 2016 and August 31, 2015, respectively | (1,123,608) | (1,058,551) |
Total Jabil Circuit, Inc. stockholders' equity | 2,492,452 | 2,314,856 |
Noncontrolling interests | 18,805 | 20,155 |
Total equity | 2,511,257 | 2,335,011 |
Total liabilities and equity | $ 9,906,074 | $ 9,603,207 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 11,474 | $ 11,663 |
Property, plant and equipment, accumulated depreciation | 2,607,896 | 2,239,422 |
Intangible assets, accumulated amortization | $ 222,022 | $ 195,864 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 249,082,324 | 246,680,008 |
Common stock, shares outstanding | 191,220,619 | 192,068,068 |
Treasury stock, shares | 57,861,705 | 54,611,940 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Income Statement [Abstract] | ||||
Net revenue | $ 4,310,752 | $ 4,358,641 | $ 13,922,323 | $ 13,218,382 |
Cost of revenue | 3,989,665 | 3,982,804 | 12,718,268 | 12,091,739 |
Gross profit | 321,087 | 375,837 | 1,204,055 | 1,126,643 |
Operating expenses: | ||||
Selling, general and administrative | 239,646 | 228,476 | 716,097 | 653,183 |
Research and development | 7,675 | 6,997 | 24,431 | 19,502 |
Amortization of intangibles | 9,711 | 5,724 | 26,150 | 17,097 |
Restructuring and related charges | 4,460 | (782) | 8,349 | 31,833 |
Operating income | 59,595 | 135,422 | 429,028 | 405,028 |
Other expense | 2,412 | 1,880 | 6,346 | 5,238 |
Interest income | (2,302) | (2,836) | (6,653) | (6,452) |
Interest expense | 35,212 | 31,997 | 102,509 | 95,884 |
Income from continuing operations before tax | 24,273 | 104,381 | 326,826 | 310,358 |
Income tax expense | 18,434 | 32,124 | 110,639 | 107,186 |
Income from continuing operations, net of tax | 5,839 | 72,257 | 216,187 | 203,172 |
Discontinued operations: | ||||
Loss from discontinued operations, net of tax | (1,514) | (5,224) | ||
Gain (loss) on sale of discontinued operations, net of tax | 1,681 | (875) | ||
Discontinued operations, net of tax | 167 | (6,099) | ||
Net income | 5,839 | 72,424 | 216,187 | 197,073 |
Net income attributable to noncontrolling interests, net of tax | 626 | 221 | 159 | 756 |
Net income attributable to Jabil Circuit, Inc. | $ 5,213 | $ 72,203 | $ 216,028 | $ 196,317 |
Basic: | ||||
Income from continuing operations, net of tax [per share] | $ 0.03 | $ 0.37 | $ 1.13 | $ 1.05 |
Discontinued operations, net of tax [per share] | 0 | 0 | 0 | (0.03) |
Net income [per share] | 0.03 | 0.37 | 1.13 | 1.01 |
Diluted: | ||||
Income from continuing operations, net of tax [per share] | 0.03 | 0.37 | 1.12 | 1.03 |
Discontinued operations, net of tax [per share] | 0 | 0 | 0 | (0.03) |
Net income [per share] | $ 0.03 | $ 0.37 | $ 1.12 | $ 1 |
Weighted average shares outstanding: | ||||
Basic | 191,206 | 193,785 | 190,841 | 193,617 |
Diluted | 193,069 | 196,304 | 193,058 | 195,793 |
Cash dividends declared per common share | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,839 | $ 72,424 | $ 216,187 | $ 197,073 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 18,734 | (13,084) | (5,433) | (94,693) |
Changes in fair value of derivative instruments, net of tax | (2,021) | 2,647 | (15,834) | (7,711) |
Reclassification of net losses realized and included in net income related to derivative instruments, net of tax | 6,812 | 1,548 | 29,762 | 5,620 |
Unrealized (loss) gain on available for sale securities | (621) | 223 | (3,748) | 578 |
Other comprehensive income (loss) | 22,904 | (8,666) | 4,747 | (96,206) |
Comprehensive income | 28,743 | 63,758 | 220,934 | 100,867 |
Comprehensive income (loss) attributable to noncontrolling interests | 626 | 221 | 159 | 756 |
Comprehensive income attributable to Jabil Circuit, Inc. | $ 28,117 | $ 63,537 | $ 220,775 | $ 100,111 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended May 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Noncontrolling Interests |
Balance at Aug. 31, 2015 | $ 2,335,011 | $ 247 | $ 1,955,104 | $ 1,468,910 | $ (50,854) | $ (1,058,551) | $ 20,155 |
Balance (in shares) at Aug. 31, 2015 | 192,068,068 | 192,068,068 | |||||
Shares issued upon exercise of stock options (in shares) | 19,109 | ||||||
Shares issued under employee stock purchase plan | $ 10,660 | 10,660 | |||||
Shares issued under employee stock purchase plan (in shares) | 594,044 | ||||||
Vesting of restricted stock awards | $ 2 | (2) | |||||
Vesting of restricted stock awards (in shares) | 1,789,163 | ||||||
Purchases of treasury stock under employee stock plans | (10,490) | (10,490) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (454,836) | ||||||
Treasury shares purchased | (54,567) | (54,567) | |||||
Treasury shares purchased (in shares) | (2,794,929) | ||||||
Recognition of stock-based compensation | 58,505 | 58,505 | |||||
Excess tax benefit of stock awards | 259 | 259 | |||||
Declared dividends | (47,546) | (47,546) | |||||
Comprehensive income | 220,934 | 216,028 | 4,747 | 159 | |||
Declared dividends to noncontrolling interests | (1,500) | (1,500) | |||||
Foreign currency adjustments attributable to noncontrolling interests | (9) | (9) | |||||
Balance at May. 31, 2016 | $ 2,511,257 | $ 249 | $ 2,024,526 | $ 1,637,392 | $ (46,107) | $ (1,123,608) | $ 18,805 |
Balance (in shares) at May. 31, 2016 | 191,220,619 | 191,220,619 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 216,187 | $ 197,073 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 512,972 | 385,136 |
Restructuring and related charges | 4,567 | |
Provision for allowance for doubtful accounts | 240 | 8,193 |
Recognition of stock-based compensation expense and related charges | 58,505 | 53,101 |
Deferred income taxes | (24,403) | (14,143) |
Loss on sale of property, plant and equipment | 13,229 | 10,045 |
Other, net | 5,906 | 9,856 |
Changes in operating assets and liabilities, exclusive of net assets acquired: | ||
Accounts receivable | 180,830 | (43,982) |
Inventories | 229,187 | (253,579) |
Prepaid expenses and other current assets | (131,682) | 37,687 |
Other assets | (7,466) | 14,417 |
Accounts payable, accrued expenses and other liabilities | (565,558) | 474,550 |
Net cash provided by operating activities | 487,947 | 882,921 |
Cash flows from investing activities: | ||
Proceeds from sale of discontinued operations, net of cash | 9,663 | |
Acquisition of property, plant and equipment | (668,505) | (735,459) |
Proceeds from sale of property, plant and equipment | 18,710 | 13,187 |
Cash paid for business and intangible asset acquisitions, net of cash | (206,039) | (78,007) |
Issuance of notes receivable | (29,300) | |
Other, net | (5,250) | (6,645) |
Net cash used in investing activities | (890,384) | (797,261) |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 4,748,060 | 4,723,083 |
Payments toward debt agreements | (4,268,839) | (4,731,894) |
Payments to acquire treasury stock | (54,567) | (40,040) |
Dividends paid to stockholders | (47,122) | (47,623) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 10,660 | 9,004 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (10,490) | (7,536) |
Other, net | (1,696) | (99) |
Net cash provided by (used in) financing activities | 376,006 | (95,105) |
Effect of exchange rate changes on cash and cash equivalents | (541) | (28,010) |
Net decrease in cash and cash equivalents | (26,972) | (37,455) |
Cash and cash equivalents at beginning of period | 913,963 | 1,000,249 |
Cash and cash equivalents at end of period | $ 886,991 | $ 962,794 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
May 31, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1 . Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP fo r 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 Company has made certain reclassification adjustm ents to conform prior periods’ Condensed Consolidated Financial Statements to the current presentation. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and foot notes included in the Annual Report on Form 10-K of Jabil Circuit, Inc. (the “Company”) for the fiscal year ended August 31, 2015 . Results for the nine month period ended May 31, 2016 are not necessarily an indication of t he results that may be expected for the full fiscal year ending August 31, 2016 . |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
May 31, 2016 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 2 . Discontinued Operations On December 17, 2013, the Company announced that it entered into a stock purchase agreement with iQor Holdings, Inc. (“ iQor ”) for the sale of Jabil’s Aftermarket Services (“AMS”) business for consideration of $ 725.0 million, which consists of $ 675.0 million in cash and an aggregate liquidation preference value of $ 50.0 million in Senior Non-Convertible Cumulative Preferred Stock of iQor that accretes dividends at an annual rate of 8 percent and is redeemable in nine years or upon a change in control. The purchase price was finalized during fiscal year 2015 and was reduced by $ 100.2 million for cash, indebtedness, taxes, interest and certain working capital accounts of the Company’s AMS business. Also, as part of this transaction, the Company is subject to a limited covenant not to compete. On April 1, 2014, the Company completed the sale of the AMS business except for the Malaysian operations, for which the sale was completed on December 31, 2014. In connection wi th the AMS transaction, the Company entered into a transition services agreement , effective April 1, 2014 , to provide certain administrative services to facilitate the orderly transfer of the business operations to iQor . For all periods presented, the operating results associated with this business have been reclassified into discontinued operations, net of tax in the Condensed Consolidated Statements of Operations . The following table provides a summary of AMS amounts included in discontinued operations (in thousands): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Net revenue $ ― $ ― $ ― $ 14,624 Loss from discontinued operations, before tax $ ― (1,514) $ ― (5,222) Income tax expense ― ― ― 2 Loss from discontinued operations, net of tax $ ― $ (1,514) $ ― $ (5,224) Gain (loss) on sale of discontinued operations, before tax $ ― $ 1,681 $ ― $ (300) Income tax expense ― ― ― 575 Gain (loss) on sale of discontinued operations, net of tax $ ― $ 1,681 $ ― $ (875) Discontinued operations, net of tax $ ― $ 167 $ ― $ (6,099) |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 9 Months Ended |
May 31, 2016 | |
Earnings Per Share and Dividends [Abstract] | |
Earnings Per Share and Dividends | 3 . Earnings Per Share and Dividends a. Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to Jabil Circuit, Inc. 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. To the extent these securities are anti-dilutive, they are excluded from the calculation of diluted earnings per share. The following table sets forth the calculations of basic and diluted earnings per share attributable to the stockholders of Jabil Circuit, Inc. (in thousands, except earnings per share data): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Numerator: Income from continuing operations, net of tax $ 5,839 $ 72,257 $ 216,187 $ 203,172 Net income attributable to noncontrolling interests, net of tax 626 221 159 756 Income from continuing operations attributable to Jabil Circuit, Inc., net of tax 5,213 72,036 216,028 202,416 Discontinued operations attributable to Jabil Circuit, Inc., net of tax ― 167 ― (6,099) Net income attributable to Jabil Circuit, Inc. $ 5,213 $ 72,203 $ 216,028 $ 196,317 Denominator for basic and diluted earnings per share: Denominator for basic earnings per share 191,206 193,785 190,841 193,617 Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights 31 221 130 95 Dilutive unvested restricted stock awards 1,832 2,298 2,087 2,081 Denominator for diluted earnings per share 193,069 196,304 193,058 195,793 Earnings per share attributable to the stockholders of Jabil Circuit, Inc. Basic: Income from continuing operations, net of tax $ 0.03 $ 0.37 $ 1.13 $ 1.05 Discontinued operations, net of tax $ 0.00 $ 0.00 $ 0.00 $ (0.03) Net income $ 0.03 $ 0.37 $ 1.13 $ 1.01 Diluted: Income from continuing operations, net of tax $ 0.03 $ 0.37 $ 1.12 $ 1.03 Discontinued operations, net of tax $ 0.00 $ 0.00 $ 0.00 $ (0.03) Net income $ 0.03 $ 0.37 $ 1.12 $ 1.00 For the three months and nine months ended May 31, 2016 , 2,124,084 and 2,454,562 stock appreciation rights, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. For t he nine months ended May 31, 2015 , options to purchase 290,881 shares of common stock were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. For the three months and nine months ended May 31, 2015 , 2,514,276 and 2,707,912 stock appreciation rights, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. b. Dividends The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders of the Company during the nine months ended May 31, 2016 and 2015 (in thousands, except for per share data): Total of Cash Dividend Dividend Dividends Date of Record for Dividend Cash Declaration Date per Share Declared Dividend Payment Payment Date Fiscal Year 2016: October 14, 2015 $ 0.08 $ 15,906 November 16, 2015 December 1, 2015 January 21, 2016 0.08 15,947 February 16, 2016 March 1, 2016 April 21, 2016 0.08 15,940 May 16, 2016 June 1, 2016 Fiscal Year 2015: October 16, 2014 $ 0.08 $ 15,973 November 14, 2014 December 1, 2014 January 21, 2015 0.08 16,020 February 13, 2015 March 2, 2015 April 15, 2015 0.08 15,988 May 15, 2015 June 1, 2015 |
Inventories
Inventories | 9 Months Ended |
May 31, 2016 | |
Inventories [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following (in thousands): May 31, 2016 August 31, 2015 Raw materials $ 1,315,789 $ 1,300,559 Work in process 531,958 714,237 Finished goods 444,603 492,468 Total inventories $ 2,292,350 $ 2,507,264 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
May 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 5 . Stock-Based Compensation The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight- line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The Company recorded $ 13.4 million and $ 58.5 million of stock-based compensation expense gross of tax effects, which is included in selling, general and administrative expenses within the Condensed Consol idated Statements of Operations for the three months and nine months ended May 31, 2016 , respectively. The Company recorded tax benefits related to the stock-based compensation expense of $0.1 million and $0.8 million , which is include d in income tax expense within the Condensed Consolidated Statements of Operations for three months and nine months ended May 31, 2016 , respectively. The Company recorded $ 20.1 million and $ 53.1 million of stock-based compensat ion expense gross of tax effects, which is included in selling, general and administrative expenses within the Condensed Consolidated Statements of Operations for the three months and nine months ended May 31, 2015 , respectively. The Company recorded tax benefits related to the stock-based compensation expense of $0.1 million and $0.6 million , which is included in income tax expense within the Condensed Consolidated Statements of Operations for the three months and nine months ended May 31, 2015 , respectively. The following table summarizes shares available for grant and stock appreciation right s (“SARS”) activity from August 31 , 2015 through May 31, 2016 : Weighted- Weighted- Average Shares Average Average Remaining Available SARS Intrinsic Value Exercise Contractual for Grant Outstanding (in thousands) Price Life (years) Balance at August 31, 2015 8,376,072 3,760,871 $ 492,060 $ 26.60 1.53 SARS canceled 1,155,298 (1,155,298) $ 30.00 Restricted stock awards granted, net of forfeitures (a) (4,749,623) ― SARS exercised ― (135,910) $ 20.92 Balance at May 31, 2016 4,781,747 2,469,663 $ 342 $ 25.31 1.37 Exercisable at May 31, 2016 2,469,663 $ 342 $ 25.31 1.37 (a) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. The following table summarizes restricted stock activity from August 31, 2015 through May 31, 2016: Weighted- Average Grant-Date Shares Fair Value Unvested balance at August 31, 2015 11,931,585 $ 19.44 Changes during the period Shares granted (a) 5,364,030 $ 24.02 Shares vested (1,789,163) $ 19.15 Shares forfeited (614,407) $ 20.35 Unvested balance at May 31, 2016 14,892,045 $ 21.10 (a) For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest. Certain key employees have been granted time-based , performance-based and market-based restricted stock awards. The time-based restricted awards granted generally vest on a graded vesting schedule over three years. The performance-based restricted awards generally vest on a cliff vesting schedule over three to five years and provide a range of vesting possibilities of up to a maximum of 100 % or 150 %, depending on the specified performance condition and the level of achievement obtained. The market-b ased awards have a vesting condition that is tied to the Company’s stock performance in relation to the S tandard and Poor’s (S &P ) Super Composite Technology Hardware and Equipment Index. The market conditions are considered in the grant date fair value usi ng a Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. Stock- based compensation expense related to an award with a market condition will be recognized over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. During the nine months ended May 31, 2016 and 2015 , the Company awarded approxi mately 2.6 million and 2.8 million time-based restricted stock units, respectively, 1.3 million and 1.7 million performance-based restricted stock units, respectively and 0.4 million and 0.0 million market-based s tock units, respectively. At May 31, 2016 , there was $ 76.9 million of total unrecognized stock-based compensation expense related to restricted stock awards. This expense is expected to be recognized over a weighted-average p eriod of 1.5 years . |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 9 Months Ended |
May 31, 2016 | |
Concentration of Risk and Segment Data [Abstract] | |
Concentration of Risk and Segment Data | 6 . Concentration of Risk and Segment Data a. Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the nine months ended May 31, 2016 , the Company’s five largest custom ers accounted for approximately 51 % of its net revenue and 81 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. Almost all of the products manufactured by the Company require one or more components that are available from only a singl e source. Production levels for a portion of the DMS segment are subject to seasonal influences. The Company may realize greater net revenue during its first fiscal quarter due to higher demand for consumer related products manufactured in the DMS segment during the holiday selling season. Therefore, quarterly results should not be relied upon as necessarily being indicative of results for the entire fiscal year. b. Segment Data Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. The Company derives its revenue from providing comprehensive electronics design , production and product management services. The chief operating decision maker evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportab le segments. The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, sharing of the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment includes customers primarily in the automotive, capital equipment, computing and storage, digital home, industrial and energy, networking and telecommunications, point of sale and printing industries . The DMS segment is focu sed on providing engineering solutions and a focus on material sciences and technologies. The DMS segment includes customers primarily in the consumer lifestyles and wearable technologies, defense and aerospace, emerging growth, healthcare, mobility and pa ckaging industries . On April 1, 2014, the Company completed the sale of the AMS business except for the Malaysian operations , for which the sale was completed on December 31, 2014 . The AMS business was included in the DMS segment, and the results of operat ions of this business are classified as discontinued operations for all periods presented. See Note 2 – “Discontinued Operations” for further details. 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 researc h and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and rel ated charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairme nt charges, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense, interest income, interest expense, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests. Total segment assets are defined as accounts receivable, inventories, net customer-related property, plant and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties . The following tables set forth operating segment information (in thousands): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Net revenue EMS $ 2,846,919 $ 2,741,910 $ 8,228,595 $ 8,001,299 DMS 1,463,833 1,616,731 5,693,728 5,217,083 $ 4,310,752 $ 4,358,641 $ 13,922,323 $ 13,218,382 Segment income (loss) and reconciliation of income before tax EMS $ 99,758 $ 95,349 $ 267,717 $ 212,664 DMS (12,547) 65,109 254,315 294,400 Total segment income $ 87,211 $ 160,458 $ 522,032 $ 507,064 Reconciling items: Amortization of intangibles 9,711 5,724 26,150 17,097 Stock-based compensation expense and related charges 13,445 20,094 58,505 53,106 Restructuring and related charges 4,460 (782) 8,349 31,833 Other expense 2,412 1,880 6,346 5,238 Interest income (2,302) (2,836) (6,653) (6,452) Interest expense 35,212 31,997 102,509 95,884 Income from continuing operations before tax $ 24,273 $ 104,381 $ 326,826 $ 310,358 May 31, 2016 August 31, 2015 Total assets EMS $ 2,631,139 $ 2,865,172 DMS 4,615,292 4,241,699 Other non-allocated assets 2,659,643 2,496,336 $ 9,906,074 $ 9,603,207 As of May 31, 2016 , the Company operated in 28 countries worldwide. Sales to unaffiliated customers are based on the Company’s location that maintains the customer relationship and transacts the external sale. Total foreign net revenue represented 90.4 % and 91.0 % of net revenue during the three months and nine months ended May 31, 2016 , respectively, compared to 86.6 % and 87.1 % of net revenue during the three months and nine months ended May 31, 2015 , respectively. |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Capital Lease Obligations | 9 Months Ended |
May 31, 2016 | |
Notes Payable, Long-Term Debt and Capital Lease Obligations [Abstract] | |
Notes Payable, Long-Term Debt and Capital Lease Obligations | 7 . Notes Payable, Long-Term Debt and Capital Lease Obligations Notes payable, long-term debt and capital lease obligations outstanding at May 31, 2016 and August 31, 2015 are summarized below (in thousands): May 31, August 31, 2016 2015 7.750% Senior Notes due 2016 $ 311,667 $ 310,378 8.250% Senior Notes due 2018 399,333 399,047 5.625% Senior Notes due 2020 400,000 400,000 4.700% Senior Notes due 2022 500,000 500,000 Borrowings under credit facilities 64 323 Borrowings under loans (a) 510,794 30,410 Capital lease obligations 28,758 28,156 Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes 297 2,077 Total notes payable, long-term debt and capital lease obligations 2,150,913 1,670,391 Less current installments of notes payable, long-term debt and capital lease obligations 359,885 323,833 Notes payable, long-term debt and capital lease obligations, less current installments $ 1,791,028 $ 1,346,558 The $312.0 million of 7.750% senior unsecured notes, $400.0 million of 8.250% senior unsecured notes, $400.0 million of 5.625% senior unsecured notes and $500.0 million of 4.700% senior unsecured notes outstanding are carried at the principal amount of each note, less any unamortized discount. The estimated fair values of these senior notes were approximately $ 313.9 million , $ 439.1 million , $ 426.0 million and $ 500.5 million , respectively, at May 31, 2016 . The fair value estimates are based upon observable market data (Level 2 criteria). (a) On July 6, 2015, the Company entered into an amended and restated senior unsecured five year credit agreement. The credit agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in the initial amount of $ 1.5 billion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2.0 billion and a $ 500.0 million five year delayed draw term loan facility (the “Term Loan Facility” and, together with the Revolving Credit Facility, the “Credit Faci lity”). On September 22, 2015, the Company borrowed $ 500.0 million against the Term Loan Facility. During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sel ls to and subsequently leases back from the VIE up to $ 60.0 million in certain machinery and equipment for a period of up to five years . In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both t he power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consoli dates t he financial statements of the VIE and eliminates all intercompany transactions. At May 31, 2016 , the VIE had approximately $ 21.3 million of total assets, of which approximately $ 21.0 million was comprised of a note receivable due from the Company, and approximately $ 20.9 million of total liabilities, of which approximately $ 20.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $ 20.9 million of the $6 0.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used o nly to settle the obligations of the VIE. On May 19, 2016, the Company entered into a note purchase agreement with certain third parties which it anticipates closing on July 14, 2016 for a private placement of $ 300.0 million of senior unsecured notes maturing on July 14, 2023 with an interest rate of 4.9 % (the “4.900% Senior Notes”). The proceeds from the sale of the notes are anticipated to be used to repay the Company’s $312.0 million 7.750% Senior Notes due July 15, 2016. The Company is subject to financial covenants based in part on those s et forth in its Revolving Credit Facility, including: (1) a maximum ratio of consolidated indebtedness to consolidated EBITDA and (2) a minimum ratio of (a) consolidated EBITDA to (b) interest payable on, and amortization of debt discount in respect of, al l indebtedness and loss on sale of accounts receivable. In addition, the Company and its subsidiaries are subject to other covenants, such as: limitation upon transactions with affiliates; limitation upon mergers, consolidations, etc.; limitation upon sale s of assets; limitation upon changes in line of business; terrorism sanction regulations; limitation upon subsidiary indebtedness; limitation upon liens; financial and business information; visitation rights ; compliance with laws; insurance; maintenance of properties; payment of taxes and claims; preservation of corporate existence, etc.; keeping of books and records; subsidiary guarantees or liability for certain indebtedness; and most favored lender requirement with respect to certain indebtedness. Terms used above in the description of financial covenants have specific meanings ascribed to them in the note purchase agreement. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 9 Months Ended |
May 31, 2016 | |
Trade Accounts Receivable Securitization and Sale Programs [Abstract] | |
Trade Accounts Receivable Securitization and Sale Programs | 8 . Trade Accounts Receivable Securitization and Sale Programs The Company regularly sells designated pools of trade accounts receivable under two asset-backed securitization programs and three uncommitted trade accounts receivable sale programs (collectively referred to herein as the “programs”). The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the programs. Servicing fees related to ea ch of the programs recognized during the three months and nine months ended May 31, 2016 and 2015 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that t he fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the programs are accounted for as sales and, accordingly, net receivables sold under the programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows . a. Asset-Backed Securitization Programs The Company continuously sells designated pools of trade accounts receivable under its North American asset-backed securitization program, currently scheduled to expire on October 20, 2017, and its foreign asset-backed securitization program, currently scheduled to expire on May 1, 2018, (collectively referred to herein as the “asset-backed securitization programs”) to special purpos e entities, which in turn sell 100 % of the receivables to conduits administered by unaffiliated financial institutions (for the North American asset-ba cked securitization program) and to an unaffiliated financial institution and a conduit administered by a n unaffiliated financial institution (for the foreign asset-backed securitization program). The special purpose entity in the North American asset-backed securitization program is a wholly-owned subsidiary of the Company. The special purpose entity in the foreign asset-backed securitization program is a separate bankruptcy-remote entity whose assets would be first available to satisfy the creditor claims of the unaffiliated financial institution. The Company is deemed the primary beneficiary of this special purpose entity as the Company has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be sig nificant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, the special purpose entities associated with these asset-backed securitization programs are included in the Company’s Condensed Consolidated Financial Statements . Any portion of the purchase price for the receivables which is not paid in cash upon the sale taking place is recorded as a deferred purchase price receivable, which is paid as payments on the receivables are collected. Net cash proceeds of up to a maximum of $ 200.0 million and $ 275.0 million for the North American and foreign asset-backed securitization programs, respectively, are available at any one time. In connection with the asset- backed securitization programs, the Company sold $ 2.0 billion and $ 5.8 billion of eligible trade accounts receivable during the three months and nine months ended May 31, 2016 , respectively. In exchange, the Company received cash proceeds of $ 1.5 billion and $ 5.3 billion during the three months and nine months ended May 31, 2016 , respectively, (of which approximately $ 0.0 million and $ 3.0 million , respectively, represented new transfers and the remainder r epresented proceeds from collections reinvested in revolving-period transfers) and a deferred pu rchase price receivable. The Company sold $ 1.9 billion and $ 5.6 billion of eligible trade accounts receivable during the three months and nine months ended May 31, 2015 , respectively. In exchange, the Company received cash proceeds of $ 1.5 billion and $ 5.2 billion during the three months and nine months ended May 31, 2015 , respectively, ( of which approximately $0.0 million and $5.9 million, respectively, represented new transfers and the remainder represented proceeds from collections reinvested in revolving-period transfers ) and a defer red purchase price receivable. At May 31, 2016 and 2015 , the deferred purchase price receivables recorded in connection with the asset-backed securitization programs totaled approximately $ 517.3 million and $ 438.5 million , respective ly. The Company recognized pre-tax losses on the sales of receivables under the asset-backed securitization programs of approximately $ 1.3 million and $ 3.5 million during the three months and nine months ended May 31, 2016 , respectively, and appr oximately $ 1.2 million and $ 2.8 million during the three months and nine months ended May 31, 2015 , respectively, which are recorded to other expense within the Condensed Consolidated Statements of Operations. The deferred purchase price receivables recorded under the asset-backed securitization programs are recorded initially at fair value as prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets and are valued using unobservable inputs (Level 3 inputs), primarily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immateri al impact on the fair value calculations of the deferred purchase price receivables. b. Trade Accounts Receivable Sale Programs In connection with three separate trade accounts receivable sale programs with unaffiliated financial institutions, the Company may elect to sell, at a discount, on an ongoing basis, up to a maximum of $6 50.0 million, $150.0 million and $100.0 million , respectively, of specific trade accounts receivable at any one time. The $650.0 million trade accounts receivable sale program is an uncommitted facility that was amended during the first quar ter of fiscal year 2016 to increase the uncommitted capacity from $450.0 million to $650.0 million and to extend the expiration date to November 1, 2016, although any party may elect to terminate the agreement upon 15 days prior notice. The $650.0 million trade accounts receivable sale program will be automatically extended each year until August 31, 2017, unless any party gives no less than 30 days prior notice that the agreement should not be extended. The $150.0 million trade accounts receivable sale pro gram is an uncommitted facility that is subject to expiration on August 31, 2016. The $100.0 million trade accounts receivable sale program is an uncommitted facility that is scheduled to expire on November 1, 201 6 (as the agreement was automatically exten ded on November 1, 2015), although any party may elect to terminate the agreement upon 15 days prior notice. The $100.0 million trade accounts receivable sale program will be automatically extended each year until November 1, 2018, unless any party gives n o less than 30 days prior notice that the agreement should not be extended. During the three months and nine months ended May 31, 2016 , the Com pany sold $0.7 billion and $3.0 billion of trade accounts receivable under these programs , respectively, compared to $0.5 billion and $1.5 billion during three months and nine months ended May 31, 2015 , respectively. In exchange, the Company received cash proceeds of $0.7 billion and $2.9 billion during the three months and nine months ended May 31, 2016 , respectively, compared to $0.5 billion and $1.5 billion during the three months and nine months ended May 31, 2015 , respectively. The resulting losses on the sales of trade accounts receivable during the three months and nine months ended May 31, 2016 and 2015 were not material , and were rec orded to other expense within the Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
May 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 9 . Accumulated Other Comprehensive Income The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component from August 31, 2015 to May 31, 2016 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial Loss Prior Service Cost Unrealized (Loss) Gain on Available for Sale Securities Total Balance at August 31, 2015 $ 6,666 $ (12,033) $ (30,624) $ 1,054 $ (15,917) $ (50,854) Other comprehensive loss before reclassifications (5,433) (15,834) ― ― (3,748) (25,015) Amounts reclassified from AOCI ― 29,762 ― ― ― 29,762 Other comprehensive (loss) income (5,433) 13,928 ― ― (3,748) 4,747 Balance at May 31, 2016 $ 1,233 $ 1,895 $ (30,624) $ 1,054 $ (19,665) $ (46,107) The portion of AOCI reclassified into earnings during the nine months ended May 31, 2016 for derivative instruments was primarily classified as a component of cost of revenue . The tax benefit (expens e) on the derivative instruments component of AOCI, including reclassification adjustments, is not material for the three months and nine months ended May 31, 2016 . There was no tax benefit (expense ) on the foreign currency translation adjustment and the unre alized (loss) gain on available for sale securities components of AOCI, including reclassification adjustments, for the three months and nine months ended May 31, 2016 . |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 9 Months Ended |
May 31, 2016 | |
Postretirement and Other Employee Benefits [Abstract] | |
Postretirement and Other Employee Benefits | 10 . Postretirement and Other Employee Benefits The Company sponsors defined benefit pension plans in several countries in which it operates. The pension obligations relate primarily to the following: (a) a funded retirement plan in the United Kingdom and (b) both funded and unfunded retirement plans , mainly in Austria , France, Germany, The Netherlands, Poland, and Taiwan , which provide benefits based upon years of service and compensation at retirement. The following table provides information about net periodic benefit cost for the pension plans during the three months and nine months ended May 31, 2016 and 2015 (in thousands): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Service cost $ 222 $ 256 $ 662 $ 803 Interest cost 1,208 1,384 3,693 4,267 Expected long-term return on plan assets (1,383) (1,440) (4,243) (4,431) Recognized actuarial loss 264 479 790 1,491 Amortization of prior service cost (35) (35) (104) (114) Net periodic benefit cost $ 276 $ 644 $ 798 $ 2,016 During the nine months ended May 31, 2016 , the Company made contributions of approximately $ 2.6 million to its defined benefit pension plans. The Company expects to make total cash contributions of between $ 3.0 million and $ 3.8 million to its funded pension plans during the fiscal year ended August 31, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11 . Commitments and Contingencies The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Internal Revenue Service (“IRS”) completed its field examination of the Company’s tax returns for fiscal years 2009 through 2011 and issued a Revenue Agent’s Report on May 27, 2015 proposing adjustments primarily related to U.S. taxation of certain intercompany transactions. If the IRS ultimately prevails in its positions, the Company’s income tax payment due for the fiscal years 2009 through 2011 would be approximately $ 34.6 millio n after utilization of tax loss carry forwards available through fiscal year 2011. Also, the IRS has proposed interest and penalties with respect to fiscal years 2009 through 2011. The IRS may make similar claims in future audits with respect to these typ es of transactions. At this time, anticipating the amount of any future IRS proposed adjustments, interest, and penalties is not practicable. The Company disagrees with the proposed adjustments and intends to vigorously contest these matters through the applicable IRS administrative and judicial procedures, as appropriate. As the final resolution of the proposed adjustments remains uncertain, the Company continues to provide for the uncertain tax positions based on the more likely than not standard. Whil e the resolution of the issues may result in tax liabilities, interest and penalties, which are significantly higher than the amounts provided for these matters, management currently believes that the resolution will not have a material adverse effect on t he Company’s financial position, results of operations or cash flows. Despite this belief, an unfavorable resolution, particularly if the IRS successfully asserts similar claims for later years, could have a material adverse effect on the Company’s results of operations and financial condition. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
May 31, 2016 | |
Derivative Financial Instruments and Hedging Activities [Abstract] | |
Derivative Financial Instruments and Hedging Activities | 12 . Derivative Financial Instruments and Hedging Activities The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, where deemed appropriate, uses derivatives as risk management tools to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of d erivative instruments are foreign currency fluctuation risk and interest rate risk. All derivative instruments are recorded gross on the Condensed Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrume nt depends on the intended use and designation of the derivative instrument. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributabl e to the hedged risk are recognized in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of AOCI, n et of tax, and is subsequently reclassified into the line item within the Condensed Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective portion of the gain or loss is recognized immedia tely in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Condensed Consolidated Statements of Cash Flows . For derivatives accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instruments as a hedge of a specific u nderlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally performs an assessment, both at inception and at least quarterly thereafter, to determine whether the financial inst ruments used in hedging transactions are effective at offsetting changes in the cash flows on the related underlying exposures. a. Foreign Currency Risk Management Forward contracts are put in place to manage the foreign currency risk associated with the anticipated foreign currency denominated revenues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $ 245.1 million and $ 615.1 million at May 31, 2016 and August 31 , 2015 , 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 foreig n currency denominated revenues and expenses against foreign currency fluctuations. The anticipated foreign currency denominated revenues and expenses being hedged are expected to occur between June 1, 2016 and November 30, 2016 . 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 ac counts 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 contract s at May 31, 2016 and August 31, 2015 , was $ 1.3 billion and $ 1.8 billion , respectively. The following table presents the Company’s assets and liabilities related to forward foreign exchange contracts me asured at fair value on a recurring basis as of May 31, 2016 , aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands): Level 1 Level 2 Level 3 Total Assets: Forward foreign exchange contracts $ ― 5,320 ― $ 5,320 Liabilities: Forward foreign exchange contracts ― (15,348) ― (15,348) Total $ ― (10,028) ― $ (10,028) The Company’s forward foreign exchange contracts are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers. The following table presents the fair values of the Company’s derivative instruments located on the Condensed Consolidated Balance Sheets utilized for foreign currency risk management purposes at May 31, 2016 and August 31, 2015 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Fair Value at Fair Value at Balance Sheet Fair Value at Fair Value at Location May 31, 2016 August 31, 2015 Location May 31, 2016 August 31, 2015 Derivatives designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 1,377 $ 267 expenses $ 4,914 $ 16,509 Derivatives not designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 3,943 $ 5,525 expenses $ 10,434 $ 29,529 As of May 31, 2016 and August 31, 2015 , the Company also included gains and losses in AOCI related to changes in fair value of its derivatives utilized for foreign currency risk management purposes and designated as hedging instruments. These gains and losses were not material and the portion that is expected to be reclassified into earnings during the next 12 months will be classified as components of net revenue, cost of revenue and selling, general and administrative expense. The gains and losses recognized in earnings due to hedge ineffectivenes s and the amount excluded from effectiveness testing were not material for all periods presented and are included as components of net revenue, cost of revenue and selling, general and administrative expense. The Company recognized gains and losses in earnings related to changes in fair value of derivatives utilized for foreign currency risk management purposes and not designated as hedging instruments during the three months and nine months ended May 31, 2016 and 2015 . These amounts were not material and were recognized as components of cost of revenue . b. Interest Rate Risk Management The Company periodically enters into interest rate swaps to manage interest rate risk associated with the Company’s borrowings. Fair Value Hedges During the second quarter of fiscal year 2011, the Company entered into a series of interest rate swaps with an aggregate notional amount of $ 200.0 million designated as fair value hedges of a portion of the Company’s 7.750% Senior Notes. Under these interest rate swaps, the Company received fixed rate interest payments and paid interest at a variable rate based on LIBOR plus a spread. The effect of these swaps was to convert fixed rate interest expense on a portion of the 7.750% Senior Notes to floating rate interest expense. Gains and losses related to changes in the fair value of the interest rate swaps were recorded to interest expense and offset changes in the fair value of the hedged portion of the underlying 7.750% Senior Notes. During the fourth quarter of fiscal year 2011, the Company terminated the interest rate swaps e ntered into in connection with the 7.750% Senior Notes with a fair value of $ 12.2 million, including accrued interest of $ 0.6 million at August 31, 2011. The portion of the fair value that is not accrued interest is recorded as a hedge accounting adjustmen t to the carrying amount of the 7.750% Senior Notes and is being amortized as a reduction to interest expense over the remaining term of the 7.750% Senior Notes. The Company recorded $ 1.8 million in amortization as a reduction to interest expense d uring the nine months ended May 31, 2016 . At May 31, 2016 and August 31, 2015 , the unamortized hedge accounting adjustment recorded is $ 0.3 million and $ 2.1 million , respectively, in the Condensed Consolidated Balance Sheets . Cash Flow Hedges During the fourth quarter of fiscal year 2007, the Company entered into forward interest rate swap transactions to hedge the fixed interest rate payments for an anticipated debt issuance, which was the issuance of the 8.250% Senior Notes. The swaps were accounted for as a cash flow hedge and had a notional amount of $ 400.0 million. Concurrently with the pricing of the 8.250% Senior Notes, the Company settled the swaps by its payment of $ 43.1 million. The ineffective portion of the sw aps was immediately recorded to interest expense within the Condensed Consolidated Statements of Operations . The effective portion of the swaps is recorded on the Company’s Condensed Consolidated Balance Sheets as a component of AOCI and is being amortized to interest expense within the Company’s Condensed Consolidated Statements of Operations over the life of the 8.250% Senior Notes, which is through March 15, 2018. The effective portions of the swaps amortized to interest expense during the three months and nine months ended May 31, 2016 and 2015 were not material. Existing losses rela ted to interest rate risk management hedging arrangements that are expected to be reclassified into earnings during the next 12 months are not material. During the second quarter of fiscal year 2016, the Company entered into a series of treasury rate lock transactions to hedge the fixed interest rate payments for an anticipated debt issuance. The treasury rate locks had an aggregate notional amount of $ 200.0 million and were designated as hedging instruments and accounted for as cash flow hedge s. During the third quarter of fiscal year 2016, the Company settled the treasury rate l ocks, which resulted in a positive cash settlement amount of approximately $ 0.1 million. |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
May 31, 2016 | |
Restructuring and Related Charges [Abstract] | |
Restructuring and Related Charges | 13 . Restructuring and Related Charges 2013 Restructuring Plan In conjunction with the restructuring plan that was approved by the Company’s Board of Directors in fiscal year 2013 (the “2013 Restructuring Plan”), the Company charged $ 4.5 million and $ 8.3 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and nine months ended May 31, 2016 , respectively, compared to $ (0.8) million and $ 33.3 million during the three months and nine months ended May 31, 2015 , respectively. The 2013 Restructuring Plan is intended to better align the Company’s manufacturing capacity in certain geographies and to reduce the Company’s worldwide workforce in order to reduce operating e xpenses. These restructuring activities are intended to address current market conditions and customer requirements. The restructuring and related charges during the three months and nine months ended May 31, 2016 include cash costs of $4.2 million and $7.7 m illion related to employee severance and benefit costs , respectively, and $0.3 million and $ 0.6 million of other related costs, respectively. The restructuring and related charges during the three months and nine months ended May 31, 2015 include cash costs of $(1.9) million and $23.3 million related to employee severance and benefit costs , respectively, $0 and $2.8 million related to lease costs , respectively, and $0.4 million and $1.5 million of other related costs , respectively, as well as non-cash costs of $0.7 million and $5.7 million related to asset write-off costs , respectively. The Company currently expects to recognize approximately $ 179.0 million , excluding the restructuring and relat ed charges previously incurred for the AMS discontinued operations, in pre-tax restructuring and other related costs over the course of the Company’s fiscal years 2013 through 2017 under the 2013 Restructuring Plan. Since the inception of the 2013 Restruct uring Plan, a total of $ 158.9 million of restructuring and related costs have been recognized. Of the $ 158.9 million recognized to date, $ 121.0 million was allocated to the EMS segment, $ 29.0 million was allocated to the DMS segment and $ 8.9 million was not allocated to a segment. A majority of the total restructuring costs are related to employee severance and benefit arrangements. The charges related to the 2013 Restructuring Pl an, excluding asset write-off costs, are currently expected to result in cash expenditures of approximately $ 157.4 million that have been or will be payable over the course of the Company’s fiscal years 2013 through 2017. Th e remaining $ 20.1 million of the restructuring and related costs expected to be recognized reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain plants are still subject to the finalization of timet ables for the transition of functions and consultation with the Company’s employees and their representatives. The tables below set forth the significant components and activity in the 2013 Restructuring Plan during the three months and nine months ended May 31, 2016 and 2015 (in thousands): 2013 Restructuring Plan – Three Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 29, 2016 Charges Non-Cash Activity Payments May 31, 2016 Employee severance and benefit costs $ 18,115 $ 4,197 $ 407 $ (3,234) $ 19,485 Lease costs 64 (43) ― ― 21 Other related costs 871 306 22 (310) 889 Total $ 19,050 $ 4,460 $ 429 $ (3,544) $ 20,395 2013 Restructuring Plan – Nine Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments May 31, 2016 Employee severance and benefit costs $ 30,047 $ 7,743 $ (404) $ (17,901) $ 19,485 Lease costs 64 (43) ― ― 21 Other related costs 846 649 ― (606) 889 Total $ 30,957 $ 8,349 $ (404) $ (18,507) $ 20,395 2013 Restructuring Plan – Three Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 28, 2015 Charges Non-Cash Activity Payments May 31, 2015 Employee severance and benefit costs $ 36,156 $ (1,847) $ (803) $ (2,586) $ 30,920 Lease costs 2,403 ― ― (53) 2,350 Asset write-off costs ― 701 (701) ― ― Other related costs 906 364 (30) (480) 760 Total $ 39,465 $ (782) $ (1,534) $ (3,119) $ 34,030 2013 Restructuring Plan – Nine Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2014 Charges Non-Cash Activity Payments May 31, 2015 Employee severance and benefit costs $ 45,246 $ 23,355 $ (4,714) $ (32,967) $ 30,920 Lease costs 18 2,777 (26) (419) 2,350 Asset write-off costs ― 5,688 (5,688) ― ― Other related costs 257 1,507 (93) (911) 760 Total $ 45,521 $ 33,327 $ (10,521) $ (34,297) $ 34,030 The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and nine months ended May 31, 2016 and 2015 (in thousands): 2013 Restructuring Plan – Three Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 29, 2016 Charges Non-Cash Activity Payments May 31, 2016 EMS $ 17,115 $ 4,460 $ 429 $ (2,858) $ 19,146 DMS 1,935 ― ― (686) 1,249 Total $ 19,050 $ 4,460 $ 429 $ (3,544) $ 20,395 2013 Restructuring Plan – Nine Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments May 31, 2016 EMS $ 28,834 7,454 (395) (16,747) $ 19,146 DMS 1,960 1,014 (9) (1,716) 1,249 Other 163 (119) ― (44) ― Total $ 30,957 $ 8,349 $ (404) $ (18,507) $ 20,395 2013 Restructuring Plan – Three Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 28, 2015 Charges Non-Cash Activity Payments May 31, 2015 EMS $ 35,358 $ (1,107) $ (1,534) $ (1,897) $ 30,820 DMS 3,701 ― ― (910) 2,791 Other 406 325 ― (312) 419 Total $ 39,465 $ (782) $ (1,534) $ (3,119) $ 34,030 2013 Restructuring Plan – Nine Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2014 Charges Non-Cash Activity Payments May 31, 2015 EMS $ 35,504 $ 30,743 $ (10,375) $ (25,052) $ 30,820 DMS 8,268 424 (146) (5,755) 2,791 Other 1,749 2,160 ― (3,490) 419 Total $ 45,521 $ 33,327 $ (10,521) $ (34,297) $ 34,030 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
May 31, 2016 | |
Business Acquisitions [Abstract] | |
Business Acquisitions [Text Block] | 14 . Business Acquisitions Fiscal year 2016 On November 25, 2015, the Company entered into a master purchase agreement for certain assets and liabilities of various legal entities, collectively referred to as “Hanson”. On January 13, 201 6, the Company completed the acquisition of the assets for approximately $ 139.2 million in cash, plus the assumption of certain liabilities of $ 230.0 million (such liabilities were subsequently paid in February 2016 and classified in our Condensed Consolid ated Statement of Cash Flows as a component of cash flows from operating activities), with the exception of the real property for which the purchase price is $ 33.3 million and is expected to close during the fourth quarter of fiscal year 2016. Hanson is en gaged in the business of manufacturing certain parts for customers in the DMS segment. The acquisition of certain Hanson assets has been accounted for as a business combination using the acquisition method of accounting. Assets acquired of $ 373.3 million, including $ 248.0 million in property, plant and equipment, $ 125.3 million in goodwill and intangible assets assigned to customer relationships, liabilities assumed of $230.0 million and $ 4.1 million of deferred tax liabilities were recorded at their estima ted fair values as of the acquisition date. The Company is currently evaluating the fair values of the assets related to this business combination. The preliminary estimates and measurements for the completed portion of the acquisition are, therefore, subj ect to change during the measurement period for property, plant and equipment, intangible assets and tax adjustments. The excess of the purchase price over the fair value of the acquired assets was recorded to goodwill and was fully allocated to the DMS se gment . None of the goodwill is currently expected to be deductible for income tax purposes. A customer relationship was valued using the multi-period excess earnings method under the income approach. The Company expensed transaction costs in connection wit h the acquisition of approximately $ 2.1 million during the nine months ended May 31, 2016 . The results of operations were included in the Company’s condensed consolidated financial results beginning on January 13, 2016. Pro forma information has not been provided as the acquisition of Hanson is not deemed to be significant. During the first quarter of fiscal year 2016, the Company completed two additional acquisitions ( Inala Technologies Limited and various legal entities collectively referr ed to as “ Shemer Companies”) which were not deemed to be significant individually or in the aggregate. The acquired businesses expanded the Company’s capabilities in capital equipment, networking and telecommunications, and printing. The aggregate purchase price of these acquisitions totaled approximately $ 72.3 million in cash . These two acquisitions have been accounted for as business combinations using the acquisition method of accounting. Assets acquired of $ 92.2 million, including $ 19.3 million in goodwill and $ 31.4 million in intangible assets, and liabilities assumed of $ 19.9 million were recorded at their estimated fair values as of the acquisition dates. The excess of the purchase prices over the fair values of the acquired assets and assume d liabilities of $ 19.3 million was recorded to goodwill and was fully allocated to the EMS segment. None of the goodwill is currently expected to be deductible for income tax purposes. The Company expensed transaction costs in connection with the acquisiti ons of approximately $ 1. 1 million during the nine months ended May 31, 2016 . The results of operations of the acquired businesses were included in the Company’s condensed consolidated financial results beginning on the date of the acquisitions. Pro forma information has not been provided as the acquisitions are not deemed to be significant indiv idually or in the aggregate. Fiscal year 2015 On July 1, 2015, the Company completed the acquisition of J.Y.E. Castella Llorca , S.L. and each of its subsidiaries (collectively referred to as “ Plasticos ”) by acquiring 100 % of the issued and outstanding comm on shares of J.Y.E. Castella Llorca , S.L . The aggregate purchase price totaled approximately $ 111.0 million in cash, based on the exchange rate on the date of acquisition. The acquisition of Plasticos has been accounted for as a business combination using the acquisition method of accounting. Assets acquired of $ 168.5 million, including $ 41.7 million in goodwill and $ 32.1 million in intangible assets, and liabilities assumed of $ 49.7 million were recorded at their estimated fair values based on the exchang e rate on the date of acquisition. During the fourth quarter of fiscal year 2015, the Company recorded a step acquisition gain of $ 6.2 million on the previously held Plasticos equity interest of $ 1.6 million. The excess of the purchase price over the fair value of the acquired assets and assumed liabilities of $41.7 million was recorded to goodwill. None of the goodwill is currently expected to be deductible for income tax purposes. The results of operations were included in the Company’s condensed consolid ated financial results beginning on July 1, 2015. Pro forma information has not been provided as the acquisition of Plasticos is not deemed to be significant. In connection with the acquisition of Plasticos , the Company acquired $32.1 million of intangible assets, including $ 24.4 million assigned to customer relationships with an assigned useful life of up to 10 years, $ 6.5 million assigned to intellectual property with an assigned useful life of up to 5 years and $ 1.2 million assigned to a definite-lived t rade name with an assigned useful life of up to 1 year. During the fiscal year ended August 31, 2015, the Company completed five additional acquisitions which were not deemed to be significant individually or in the aggregate. The acquired businesses expan ded the Company’s capabilities in consumer lifestyles and wearable technologies and networking and telecommunications. The aggregate purchase price of these acquisitions totaled approximately $ 117.0 million in cash. The acquisitions have been accounted for as business combinations using the acquisition method of accounting. Assets acquired of $ 167.8 million, including $ 42.4 million in goodwill and $ 31.7 million in intangible assets, and liabilities assumed of $ 50.8 million were recorded at their estimated f air values as of the acquisition dates. The excess of the purchase prices over the fair values of the acquired assets and assumed liabilities of $42.4 million was recorded to goodwill. None of the goodwill is currently expected to be deductible for income tax purposes. The results of operations were included in the Company’s condensed consolidated financial results beginning on the date of the acquisitions. Pro forma information has not been provided as the acquisitions are not deemed to be significant indi vidually or in the aggregate. |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
May 31, 2016 | |
New Accounting Guidance [Abstract] | |
New Accounting Guidance | 15 . New Accounting Guidance a. Recently Adopted Accounting Guidance During the first quarter of fiscal year 2016 , the Financial Accounting Standards Board (“FASB”) issued an accounting standard to simplify the presentation of deferred taxes . The new guidance require s t hat all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet , as opposed to being presented as current and noncurrent . The Company early adopted this new standard as of the first quarter of fiscal year 2016, applying it prospectively. Prior periods were not retrospectively adjusted. During the first quarter of fiscal year 2016 , the FASB issued an accounting standard to simplify an acquirer’s accoun ting for adjustments made to provisional amounts recognized in a business combination. The guidance require s the acquirer to recognize any adjustments to provisional amounts identified during the measurement period in the reporting period in which the adju stments are determined, as opposed to retrospectively apply ing adjustments to prior periods presented in financial statements. Thus, the acquirer will adjust its financial statements as needed, including recognizing in its current period earnings the effect of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts , calculated as if the accounting had been completed at the acquisition date. The Company early adopte d this new standard during the second quarter of fiscal year 2016, applying it prospectively. The adoption of the new standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. b . Recently Issued Accounting Guid ance During the third quarter of fiscal year 2014, the FASB issued an accounting standard which will supersede existing revenue recognition guidance under current U.S. GAAP. The new standard is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. During the fourth quarter of fiscal year 2015, the FASB issue d an accounting standard deferring the effective date of this accounting guidance by one year. Therefore, the accounting standard is effective for the Company in the first quarter of fiscal year 201 9 . Companies may use either a full retrospective or a modi fied retrospective approach to adopt this standard and management is currently evaluating which transition approach to use. The Company is currently in the process of assessing what impact this new standard may have on its Condensed Consolidated Financial Statements . During the t hird qu arter of fiscal year 2015 , the FASB issued new accounting guidance intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented as a direct d eduction from t he carrying amount of that debt liability on the balance sheet , consistent with the presentation for debt discounts . During the fourth quarter of fiscal year 2015, the FASB issued an accounting standard to address the presentation and subsequent measureme nt of debt issuance costs related to line-of-credit arrangements . The guidance allows an entity to defer and present debt issuance costs as an a sset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arra ngement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement . This guidance must be applied on a retrospective basis and is effective for the Company beginning in the first quarter of fiscal year 2017 with early ado ption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Condensed Consolidated Financial Statements . During the fourth quarter of fiscal year 2015, the FASB issued a new accounting standard intended to simplify the subsequent measurement of inventory, excluding inventory accounted for under the last-in, first-out or the retail inventory methods. The new s tandard replaces the current lower of cost or market test with a lower of cost and net realizable value test. Under the current guidance, market could be replacement cost, net realizable value or net realizable value less an approximately normal profit mar gin. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is required to be applied on a prospective basis and is effective for the Company beginning in the first quarter of fiscal year 2018 with early adoption permitted. The Company is currently in the process of assessing what impact this new standard may have on its Condensed Consolidated Financial Statements . During the second quarter of fiscal year 2016, th e FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 . Early appli cation is permitted only for certain provisions, and the update must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and applied prospectively to equity investments that exist as of the date of adoption of the standard . The Company is currently assessing the impact this new standard may have on its Condensed Consolidated Financial Statements. During the second quarter of fiscal year 2016, the FASB issued a new accounting standard revising lease accounting. The new guidance require s organizations to recognize lease assets and lease liabilities on the consolidated balance sheet and disclose key information regarding leasing arrangements. This guidance is effective for the Company be ginning in the first quarter of fiscal year 2020. E arly application of the new standard is permitted and must be adopted using a modified retrospective approach . The adoption of this standard will impact the Company’s consolidated balance sheet. The Compan y is currently assessing any other impact s this new standard will have on its Condensed Consolidated Financial Statements. During the third quarter of fiscal year 2016, the FASB issued an accounting standard to simplify several aspects of the accounting fo r share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for the Company beginning in the first quarte r of fiscal year 2018 and early adoption is permitted. The Company is currently assessing the impact this new standard may have on its Condensed Consolidated Financial Statements. |
Income Taxes
Income Taxes | 9 Months Ended |
May 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 16 . Income Taxes The effective tax rate differed from the U.S. federal statutory rate of 35 % during the three months and nine months ended May 31, 2016 and 2015 primarily due to: (a) income in tax jurisdictions with lower statutory tax rates than the U.S.; (b) tax incentives granted to sites in Brazil, China, Malaysia, Poland, Singapore and Vietnam; (c) losses in tax jurisdictions with existing valuation allowances; and (d) tax benefits from favorable audit resolutions and expir ation of statutes in non-U.S. jurisdictions during the three months and nine months ended May 31, 2016. The m aterial tax incentives expire at various dates through fiscal year 2020. Such tax incentives are subject to conditions with which the Company expec ts to continue to comply . |
Subsequent Events
Subsequent Events | 9 Months Ended |
May 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17 . Subsequent Events The Company has evaluated subsequent events that occurred through the date of the filing of the Company’s third quarter of fiscal year 2016 Form 10-Q. No significant events occurred subsequent to the balance sheet date and prior to the filing date of this report that would have a material impact on the Condensed Consolidated Financial Statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
May 31, 2016 | |
Discontinued Operations [Abstract] | |
Summary of AMS Amounts Included in Discontinued Operations | The following table provides a summary of AMS amounts included in discontinued operations (in thousands): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Net revenue $ ― $ ― $ ― $ 14,624 Loss from discontinued operations, before tax $ ― (1,514) $ ― (5,222) Income tax expense ― ― ― 2 Loss from discontinued operations, net of tax $ ― $ (1,514) $ ― $ (5,224) Gain (loss) on sale of discontinued operations, before tax $ ― $ 1,681 $ ― $ (300) Income tax expense ― ― ― 575 Gain (loss) on sale of discontinued operations, net of tax $ ― $ 1,681 $ ― $ (875) Discontinued operations, net of tax $ ― $ 167 $ ― $ (6,099) |
Earnings Per Share and Divide26
Earnings Per Share and Dividends (Tables) | 9 Months Ended |
May 31, 2016 | |
Earnings Per Share and Dividends [Abstract] | |
Calculations of Basic and Diluted Earnings Per Share | The following table sets forth the calculations of basic and diluted earnings per share attributable to the stockholders of Jabil Circuit, Inc. (in thousands, except earnings per share data): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Numerator: Income from continuing operations, net of tax $ 5,839 $ 72,257 $ 216,187 $ 203,172 Net income attributable to noncontrolling interests, net of tax 626 221 159 756 Income from continuing operations attributable to Jabil Circuit, Inc., net of tax 5,213 72,036 216,028 202,416 Discontinued operations attributable to Jabil Circuit, Inc., net of tax ― 167 ― (6,099) Net income attributable to Jabil Circuit, Inc. $ 5,213 $ 72,203 $ 216,028 $ 196,317 Denominator for basic and diluted earnings per share: Denominator for basic earnings per share 191,206 193,785 190,841 193,617 Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights 31 221 130 95 Dilutive unvested restricted stock awards 1,832 2,298 2,087 2,081 Denominator for diluted earnings per share 193,069 196,304 193,058 195,793 Earnings per share attributable to the stockholders of Jabil Circuit, Inc. Basic: Income from continuing operations, net of tax $ 0.03 $ 0.37 $ 1.13 $ 1.05 Discontinued operations, net of tax $ 0.00 $ 0.00 $ 0.00 $ (0.03) Net income $ 0.03 $ 0.37 $ 1.13 $ 1.01 Diluted: Income from continuing operations, net of tax $ 0.03 $ 0.37 $ 1.12 $ 1.03 Discontinued operations, net of tax $ 0.00 $ 0.00 $ 0.00 $ (0.03) Net income $ 0.03 $ 0.37 $ 1.12 $ 1.00 |
Cash Dividends Declared to Common Stockholders | The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders of the Company during the nine months ended May 31, 2016 and 2015 (in thousands, except for per share data): Total of Cash Dividend Dividend Dividends Date of Record for Dividend Cash Declaration Date per Share Declared Dividend Payment Payment Date Fiscal Year 2016: October 14, 2015 $ 0.08 $ 15,906 November 16, 2015 December 1, 2015 January 21, 2016 0.08 15,947 February 16, 2016 March 1, 2016 April 21, 2016 0.08 15,940 May 16, 2016 June 1, 2016 Fiscal Year 2015: October 16, 2014 $ 0.08 $ 15,973 November 14, 2014 December 1, 2014 January 21, 2015 0.08 16,020 February 13, 2015 March 2, 2015 April 15, 2015 0.08 15,988 May 15, 2015 June 1, 2015 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May 31, 2016 | |
Inventories [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following (in thousands): May 31, 2016 August 31, 2015 Raw materials $ 1,315,789 $ 1,300,559 Work in process 531,958 714,237 Finished goods 444,603 492,468 Total inventories $ 2,292,350 $ 2,507,264 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
May 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Summary of Stock Option and Stock Appreciation Right Activity | The following table summarizes shares available for grant and stock appreciation right s (“SARS”) activity from August 31 , 2015 through May 31, 2016 : Weighted- Weighted- Average Shares Average Average Remaining Available SARS Intrinsic Value Exercise Contractual for Grant Outstanding (in thousands) Price Life (years) Balance at August 31, 2015 8,376,072 3,760,871 $ 492,060 $ 26.60 1.53 SARS canceled 1,155,298 (1,155,298) $ 30.00 Restricted stock awards granted, net of forfeitures (a) (4,749,623) ― SARS exercised ― (135,910) $ 20.92 Balance at May 31, 2016 4,781,747 2,469,663 $ 342 $ 25.31 1.37 Exercisable at May 31, 2016 2,469,663 $ 342 $ 25.31 1.37 (a) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity from August 31, 2015 through May 31, 2016: Weighted- Average Grant-Date Shares Fair Value Unvested balance at August 31, 2015 11,931,585 $ 19.44 Changes during the period Shares granted (a) 5,364,030 $ 24.02 Shares vested (1,789,163) $ 19.15 Shares forfeited (614,407) $ 20.35 Unvested balance at May 31, 2016 14,892,045 $ 21.10 (a) For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest. |
Concentration of Risk and Seg29
Concentration of Risk and Segment Data (Tables) | 9 Months Ended |
May 31, 2016 | |
Concentration of Risk and Segment Data [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables set forth operating segment information (in thousands): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Net revenue EMS $ 2,846,919 $ 2,741,910 $ 8,228,595 $ 8,001,299 DMS 1,463,833 1,616,731 5,693,728 5,217,083 $ 4,310,752 $ 4,358,641 $ 13,922,323 $ 13,218,382 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment income (loss) and reconciliation of income before tax EMS $ 99,758 $ 95,349 $ 267,717 $ 212,664 DMS (12,547) 65,109 254,315 294,400 Total segment income $ 87,211 $ 160,458 $ 522,032 $ 507,064 Reconciling items: Amortization of intangibles 9,711 5,724 26,150 17,097 Stock-based compensation expense and related charges 13,445 20,094 58,505 53,106 Restructuring and related charges 4,460 (782) 8,349 31,833 Other expense 2,412 1,880 6,346 5,238 Interest income (2,302) (2,836) (6,653) (6,452) Interest expense 35,212 31,997 102,509 95,884 Income from continuing operations before tax $ 24,273 $ 104,381 $ 326,826 $ 310,358 |
Reconciliation of Assets from Segment to Consolidated | May 31, 2016 August 31, 2015 Total assets EMS $ 2,631,139 $ 2,865,172 DMS 4,615,292 4,241,699 Other non-allocated assets 2,659,643 2,496,336 $ 9,906,074 $ 9,603,207 |
Notes Payable, Long-Term Debt30
Notes Payable, Long-Term Debt and Capital Lease Obligations (Tables) | 9 Months Ended |
May 31, 2016 | |
Notes Payable, Long-Term Debt and Capital Lease Obligations [Abstract] | |
Notes Payable, Long-Term Debt and Capital Lease Obligations Outstanding | Notes payable, long-term debt and capital lease obligations outstanding at May 31, 2016 and August 31, 2015 are summarized below (in thousands): May 31, August 31, 2016 2015 7.750% Senior Notes due 2016 $ 311,667 $ 310,378 8.250% Senior Notes due 2018 399,333 399,047 5.625% Senior Notes due 2020 400,000 400,000 4.700% Senior Notes due 2022 500,000 500,000 Borrowings under credit facilities 64 323 Borrowings under loans (a) 510,794 30,410 Capital lease obligations 28,758 28,156 Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes 297 2,077 Total notes payable, long-term debt and capital lease obligations 2,150,913 1,670,391 Less current installments of notes payable, long-term debt and capital lease obligations 359,885 323,833 Notes payable, long-term debt and capital lease obligations, less current installments $ 1,791,028 $ 1,346,558 (a) On July 6, 2015, the Company entered into an amended and restated senior unsecured five year credit agreement. The credit agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in the initial amount of $ 1.5 billion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2.0 billion and a $ 500.0 million five year delayed draw term loan facility (the “Term Loan Facility” and, together with the Revolving Credit Facility, the “Credit Faci lity”). On September 22, 2015, the Company borrowed $ 500.0 million against the Term Loan Facility. During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sel ls to and subsequently leases back from the VIE up to $ 60.0 million in certain machinery and equipment for a period of up to five years . In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both t he power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consoli dates t he financial statements of the VIE and eliminates all intercompany transactions. At May 31, 2016 , the VIE had approximately $ 21.3 million of total assets, of which approximately $ 21.0 million was comprised of a note receivable due from the Company, and approximately $ 20.9 million of total liabilities, of which approximately $ 20.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $ 20.9 million of the $6 0.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used o nly to settle the obligations of the VIE. |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
May 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component from August 31, 2015 to May 31, 2016 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial Loss Prior Service Cost Unrealized (Loss) Gain on Available for Sale Securities Total Balance at August 31, 2015 $ 6,666 $ (12,033) $ (30,624) $ 1,054 $ (15,917) $ (50,854) Other comprehensive loss before reclassifications (5,433) (15,834) ― ― (3,748) (25,015) Amounts reclassified from AOCI ― 29,762 ― ― ― 29,762 Other comprehensive (loss) income (5,433) 13,928 ― ― (3,748) 4,747 Balance at May 31, 2016 $ 1,233 $ 1,895 $ (30,624) $ 1,054 $ (19,665) $ (46,107) |
Postretirement and Other Empl32
Postretirement and Other Employee Benefits (Tables) | 9 Months Ended |
May 31, 2016 | |
Postretirement and Other Employee Benefits [Abstract] | |
Information about Net Periodic Benefit Cost for Pension Plans | The following table provides information about net periodic benefit cost for the pension plans during the three months and nine months ended May 31, 2016 and 2015 (in thousands): Three months ended Nine months ended May 31, May 31, May 31, May 31, 2016 2015 2016 2015 Service cost $ 222 $ 256 $ 662 $ 803 Interest cost 1,208 1,384 3,693 4,267 Expected long-term return on plan assets (1,383) (1,440) (4,243) (4,431) Recognized actuarial loss 264 479 790 1,491 Amortization of prior service cost (35) (35) (104) (114) Net periodic benefit cost $ 276 $ 644 $ 798 $ 2,016 |
Derivative Financial Instrume33
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
May 31, 2016 | |
Derivative Financial Instruments and Hedging Activities [Abstract] | |
Fair Value of Assets and Liabilities Related to Foreign Forward Exchange Contracts Measured on Recurring Basis | The following table presents the Company’s assets and liabilities related to forward foreign exchange contracts me asured at fair value on a recurring basis as of May 31, 2016 , aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands): Level 1 Level 2 Level 3 Total Assets: Forward foreign exchange contracts $ ― 5,320 ― $ 5,320 Liabilities: Forward foreign exchange contracts ― (15,348) ― (15,348) Total $ ― (10,028) ― $ (10,028) |
Fair Value of Derivative Instruments Located on Condensed Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes | The following table presents the fair values of the Company’s derivative instruments located on the Condensed Consolidated Balance Sheets utilized for foreign currency risk management purposes at May 31, 2016 and August 31, 2015 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Fair Value at Fair Value at Balance Sheet Fair Value at Fair Value at Location May 31, 2016 August 31, 2015 Location May 31, 2016 August 31, 2015 Derivatives designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 1,377 $ 267 expenses $ 4,914 $ 16,509 Derivatives not designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 3,943 $ 5,525 expenses $ 10,434 $ 29,529 |
Restructuring and Related Cha34
Restructuring and Related Charges (Tables) | 9 Months Ended |
May 31, 2016 | |
Restructuring and Related Charges [Abstract] | |
Significant Components and Activity in Restructuring Plan | The tables below set forth the significant components and activity in the 2013 Restructuring Plan during the three months and nine months ended May 31, 2016 and 2015 (in thousands): 2013 Restructuring Plan – Three Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 29, 2016 Charges Non-Cash Activity Payments May 31, 2016 Employee severance and benefit costs $ 18,115 $ 4,197 $ 407 $ (3,234) $ 19,485 Lease costs 64 (43) ― ― 21 Other related costs 871 306 22 (310) 889 Total $ 19,050 $ 4,460 $ 429 $ (3,544) $ 20,395 2013 Restructuring Plan – Nine Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments May 31, 2016 Employee severance and benefit costs $ 30,047 $ 7,743 $ (404) $ (17,901) $ 19,485 Lease costs 64 (43) ― ― 21 Other related costs 846 649 ― (606) 889 Total $ 30,957 $ 8,349 $ (404) $ (18,507) $ 20,395 2013 Restructuring Plan – Three Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 28, 2015 Charges Non-Cash Activity Payments May 31, 2015 Employee severance and benefit costs $ 36,156 $ (1,847) $ (803) $ (2,586) $ 30,920 Lease costs 2,403 ― ― (53) 2,350 Asset write-off costs ― 701 (701) ― ― Other related costs 906 364 (30) (480) 760 Total $ 39,465 $ (782) $ (1,534) $ (3,119) $ 34,030 2013 Restructuring Plan – Nine Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2014 Charges Non-Cash Activity Payments May 31, 2015 Employee severance and benefit costs $ 45,246 $ 23,355 $ (4,714) $ (32,967) $ 30,920 Lease costs 18 2,777 (26) (419) 2,350 Asset write-off costs ― 5,688 (5,688) ― ― Other related costs 257 1,507 (93) (911) 760 Total $ 45,521 $ 33,327 $ (10,521) $ (34,297) $ 34,030 |
Significant Components and Activity in Restructuring Plan by Reportable Segment | The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and nine months ended May 31, 2016 and 2015 (in thousands): 2013 Restructuring Plan – Three Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 29, 2016 Charges Non-Cash Activity Payments May 31, 2016 EMS $ 17,115 $ 4,460 $ 429 $ (2,858) $ 19,146 DMS 1,935 ― ― (686) 1,249 Total $ 19,050 $ 4,460 $ 429 $ (3,544) $ 20,395 2013 Restructuring Plan – Nine Months Ended May 31, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments May 31, 2016 EMS $ 28,834 7,454 (395) (16,747) $ 19,146 DMS 1,960 1,014 (9) (1,716) 1,249 Other 163 (119) ― (44) ― Total $ 30,957 $ 8,349 $ (404) $ (18,507) $ 20,395 2013 Restructuring Plan – Three Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at February 28, 2015 Charges Non-Cash Activity Payments May 31, 2015 EMS $ 35,358 $ (1,107) $ (1,534) $ (1,897) $ 30,820 DMS 3,701 ― ― (910) 2,791 Other 406 325 ― (312) 419 Total $ 39,465 $ (782) $ (1,534) $ (3,119) $ 34,030 2013 Restructuring Plan – Nine Months Ended May 31, 2015 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2014 Charges Non-Cash Activity Payments May 31, 2015 EMS $ 35,504 $ 30,743 $ (10,375) $ (25,052) $ 30,820 DMS 8,268 424 (146) (5,755) 2,791 Other 1,749 2,160 ― (3,490) 419 Total $ 45,521 $ 33,327 $ (10,521) $ (34,297) $ 34,030 |
Discontinued Operations (Additi
Discontinued Operations (Additional Information) (Details 1) - Aftermarket services (AMS) [Member] $ in Millions | Dec. 17, 2013USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Consideration for the sale of a business | $ 725 |
Cash consideration for the sale of a business | 675 |
Consideration for the sale of a business preferred stock | $ 50 |
Accretes dividends at an annual rate | 8.00% |
Redeemable period | 9 years |
Reduction in final purchase price | $ 100.2 |
Discontinued Operations (Summar
Discontinued Operations (Summary of AMS Amounts Included in Discontinued Operations) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
May 31, 2015 | May 31, 2015 | |
Discontinued Operations [Abstract] | ||
Net revenue | $ 14,624 | |
Loss from discontinued operations, before tax | $ (1,514) | (5,222) |
Income tax expense | 2 | |
Loss from discontinued operations, net of tax | (1,514) | (5,224) |
Gain (loss) on sale of discontinued operations, before tax | 1,681 | (300) |
Income tax expense | 575 | |
Gain (loss) on sale of discontinued operations, net of tax | 1,681 | (875) |
Discontinued operations, net of tax | $ 167 | $ (6,099) |
Earnings Per Share and Divide37
Earnings Per Share and Dividends (Calculations of Basic and Diluted EPS) (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Numerator: | ||||
Income from continuing operations, net of tax | $ 5,839 | $ 72,257 | $ 216,187 | $ 203,172 |
Net income attributable to noncontrolling interests, net of tax | 626 | 221 | 159 | 756 |
Income from continuing operations attributable to Jabil Circuit, Inc., net of tax | 5,213 | 72,036 | 216,028 | 202,416 |
Discontinued operations attributable to Jabil Circuit, Inc., net of tax | 167 | (6,099) | ||
Net income attributable to Jabil Circuit, Inc. | $ 5,213 | $ 72,203 | $ 216,028 | $ 196,317 |
Denominator for basic and diluted earnings per share: | ||||
Denominator for basic earnings per share | 191,206 | 193,785 | 190,841 | 193,617 |
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights | 31 | 221 | 130 | 95 |
Dilutive unvested restricted stock awards | 1,832 | 2,298 | 2,087 | 2,081 |
Denominator for diluted earnings per share | 193,069 | 196,304 | 193,058 | 195,793 |
Basic: | ||||
Income from continuing operations, net of tax [per share] | $ 0.03 | $ 0.37 | $ 1.13 | $ 1.05 |
Discontinued operations, net of tax [per share] | 0 | 0 | 0 | (0.03) |
Net income [per share] | 0.03 | 0.37 | 1.13 | 1.01 |
Diluted: | ||||
Income from continuing operations, net of tax [per share] | 0.03 | 0.37 | 1.12 | 1.03 |
Discontinued operations, net of tax [per share] | 0 | 0 | 0 | (0.03) |
Net income [per share] | $ 0.03 | $ 0.37 | $ 1.12 | $ 1 |
Earnings Per Share and Divide38
Earnings Per Share and Dividends (Additional Information) (Details 2) - shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of diluted earnings per share | 290,881 | |||
Stock Appreciation Rights (SARs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of diluted earnings per share | 2,124,084 | 2,514,276 | 2,454,562 | 2,707,912 |
Earnings Per Share and Divide39
Earnings Per Share and Dividends (Dividends) (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Quarter One [Member] | ||
Dividends Payable [Line Items] | ||
Dividend Declaration Date | Oct. 14, 2015 | Oct. 16, 2014 |
Dividend per Share | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 15,906 | $ 15,973 |
Date of Record for Dividend Payment | Nov. 16, 2015 | Nov. 14, 2014 |
Dividend Cash Payment Date | Dec. 1, 2015 | Dec. 1, 2014 |
Quarter Two [Member] | ||
Dividends Payable [Line Items] | ||
Dividend Declaration Date | Jan. 21, 2016 | Jan. 21, 2015 |
Dividend per Share | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 15,947 | $ 16,020 |
Date of Record for Dividend Payment | Feb. 16, 2016 | Feb. 13, 2015 |
Dividend Cash Payment Date | Mar. 1, 2016 | Mar. 2, 2015 |
Quarter Three [Member] | ||
Dividends Payable [Line Items] | ||
Dividend Declaration Date | Apr. 21, 2016 | Apr. 15, 2015 |
Dividend per Share | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 15,940 | $ 15,988 |
Date of Record for Dividend Payment | May 16, 2016 | May 15, 2015 |
Dividend Cash Payment Date | Jun. 1, 2016 | Jun. 1, 2015 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 |
Inventories [Abstract] | ||
Raw materials | $ 1,315,789 | $ 1,300,559 |
Work in process | 531,958 | 714,237 |
Finished goods | 444,603 | 492,468 |
Total inventories | $ 2,292,350 | $ 2,507,264 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details 1) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognition of stock-based compensation expense and related charges | $ 13,445 | $ 20,094 | $ 58,505 | $ 53,101 |
Stock-based compensation expense, tax benefits | 100 | $ 100 | $ 800 | $ 600 |
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 | 2.6 | 2.8 | ||
Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units awarded | 1.3 | 1.7 | ||
Performance-based restricted stock units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Performance-based restricted stock units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Performance-based restricted stock units | Maximum | Possibility One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 100.00% | |||
Performance-based restricted stock units | Maximum | Possibility Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 150.00% | |||
Market Based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units awarded | 0.4 | 0 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation related to share-based compensation costs | $ 76,900 | $ 76,900 | ||
Unrecognized compensation related to share-based compensation costs, weighted average period of recognition | 1 year 6 months |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option and SARs Activity) (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
May 31, 2016 | Aug. 31, 2015 | ||
Stock-Based Compensation [Abstract] | |||
Shares Available for Grant, Beginning Balance | 8,376,072 | ||
Shares Available for Grant, SARS canceled | 1,155,298 | ||
Shares Available for Grant, Restricted stock awards granted, net of forfeitures | [1] | (4,749,623) | |
Shares Available for Grant, Ending Balance | 4,781,747 | 8,376,072 | |
SARS Outstanding, beginning balance | 3,760,871 | ||
SARS Outstanding, SARS canceled | (1,155,298) | ||
SARS Outstanding, SARS exercised | (135,910) | ||
SARS Outstanding, ending balance | 2,469,663 | 3,760,871 | |
SARS Outstanding, exercisable ending balance | 2,469,663 | ||
Aggregate Intrinsic Value, beginning balance | $ 492,060 | ||
Aggregate Intrinsic Value, ending balance | 342 | $ 492,060 | |
Aggregate Intrinsic Value, Exercisable ending balance | $ 342 | ||
Weighted-Average Exercise Price, beginning balance | $ 26.6 | ||
Weighted-Average Exercise Price, SARS canceled | 30 | ||
Weighted-Average Exercise Price, SARS exercised | 20.92 | ||
Weighted-Average Exercise Price, ending balance | 25.31 | $ 26.6 | |
Weighted-Average Exercise Price, exercisable ending balance | $ 25.31 | ||
Weighted-Average Remaining Contractual Life | 1 year 4 months 13 days | 1 year 6 months 11 days | |
Weighted-Average Remaining Contractual Life, Exercisable ending balance | 1 year 4 months 13 days | ||
[1] | Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Activity) (Details 3) | 9 Months Ended | |
May 31, 2016$ / sharesshares | ||
Number of unvested shares | ||
Shares, unvested beginning balance | shares | 11,931,585 | |
Shares, unvested ending balance | shares | 14,892,045 | |
Changes during the period | ||
Shares granted | shares | 5,364,030 | [1] |
Shares vested | shares | (1,789,163) | |
Shares forfeited | shares | (614,407) | |
Weighted-Average Grant-Date Fair Value | ||
Weighted-Average Grant-Date Fair Value, beginning balance | $ / shares | $ 19.44 | |
Weighted-Average Grant-Date Fair Value, ending balance | $ / shares | 21.1 | |
Changes during the period | ||
Weighted-Average Grant-Date Fair Value, Shares granted | $ / shares | 24.02 | [1] |
Weighted-Average Grant-Date Fair Value, Shares vested | $ / shares | 19.15 | |
Weighted-Average Grant-Date Fair Value, Shares forfeited | $ / shares | $ 20.35 | |
[1] | For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest. |
Concentration of Risk and Seg44
Concentration of Risk and Segment Data (Details 1) | 3 Months Ended | 9 Months Ended | ||
May 31, 2016Country | May 31, 2015 | May 31, 2016CountryCustomerSegment | May 31, 2015 | |
Entity Wide Revenue Major Customer [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Number of operating countries | Country | 28 | 28 | ||
Geographic Concentration Risk [Member] | Net revenue [Member] | Foreign [Member] | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 90.40% | 86.60% | 91.00% | 87.10% |
Customer Concentration Risk [Member] | Net revenue [Member] | Group Of Customers That Account For 90 Percent Of Total Net Revenue [Member] | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Top customers that comprise revenue | 81 | |||
Concentration Risk, Percentage | 90.00% | |||
Customer Concentration Risk [Member] | Net revenue [Member] | Five Largest Customers That Account For A Percentage Of Net Revenue [Member] | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Top customers that comprise revenue | 5 | |||
Concentration Risk, Percentage | 51.00% |
Concentration of Risk and Seg45
Concentration of Risk and Segment Data (Segment Revenue) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 4,310,752 | $ 4,358,641 | $ 13,922,323 | $ 13,218,382 |
EMS [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 2,846,919 | 2,741,910 | 8,228,595 | 8,001,299 |
DMS [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 1,463,833 | $ 1,616,731 | $ 5,693,728 | $ 5,217,083 |
Concentration of Risk and Seg46
Concentration of Risk and Segment Data (Segment Income) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Reconciling items: | ||||
Amortization of intangibles | $ 9,711 | $ 5,724 | $ 26,150 | $ 17,097 |
Stock-based compensation expense and related charges | 13,445 | 20,094 | 58,505 | 53,101 |
Restructuring and related charges | 4,460 | (782) | 8,349 | 31,833 |
Other expense | 2,412 | 1,880 | 6,346 | 5,238 |
Interest income | (2,302) | (2,836) | (6,653) | (6,452) |
Interest expense | 35,212 | 31,997 | 102,509 | 95,884 |
Income (loss) from continuing operations before tax | 24,273 | 104,381 | 326,826 | 310,358 |
Continuing Operations [Member] | ||||
Reconciling items: | ||||
Stock-based compensation expense and related charges | 53,106 | |||
EMS [Member] | ||||
Reconciling items: | ||||
Restructuring and related charges | 4,460 | (1,107) | 7,454 | 30,743 |
Income (loss) from continuing operations before tax | 99,758 | 95,349 | 267,717 | 212,664 |
DMS [Member] | ||||
Reconciling items: | ||||
Restructuring and related charges | 1,014 | 424 | ||
Income (loss) from continuing operations before tax | (12,547) | 65,109 | 254,315 | 294,400 |
Operating Segments [Member] | ||||
Reconciling items: | ||||
Income (loss) from continuing operations before tax | $ 87,211 | $ 160,458 | $ 522,032 | $ 507,064 |
Concentration of Risk and Seg47
Concentration of Risk and Segment Data (Segment Assets) (Details 4) - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | $ 9,906,074 | $ 9,603,207 |
EMS [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 2,631,139 | 2,865,172 |
DMS [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 4,615,292 | 4,241,699 |
Other non-allocated assets | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | $ 2,659,643 | $ 2,496,336 |
Notes Payable, Long-Term Debt48
Notes Payable, Long-Term Debt and Capital Lease Obligations (Details 1) - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 | |
Debt Instrument [Line Items] | |||
Borrowings under credit facilities | $ 64 | $ 323 | |
Borrowings under loans | [1] | 510,794 | 30,410 |
Capital lease obligations | 28,758 | 28,156 | |
Fair value adjustment related to terminated interest rate swaps on the 7.750% Senior Notes | 297 | 2,077 | |
Total notes payable, long-term debt and capital lease obligations | 2,150,913 | 1,670,391 | |
Less current installments of notes payable, long-term debt and capital lease obligations | 359,885 | 323,833 | |
Notes payable, long-term debt and capital lease obligations, less current installments | 1,791,028 | 1,346,558 | |
7.750% Senior Notes Due 2016 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 311,667 | 310,378 | |
8.250% Senior Notes Due 2018 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 399,333 | 399,047 | |
5.625% Senior Notes Due 2020 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 400,000 | 400,000 | |
4.700% Senior Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 500,000 | $ 500,000 | |
[1] | On July 6, 2015, the Company entered into an amended and restated senior unsecured five year credit agreement. The credit agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in the initial amount of $ 1.5 billion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2.0 billion and a $ 500.0 million five year delayed draw term loan facility (the “Term Loan Facility” and, together with the Revolving Credit Facility, the “Credit Faci lity”). On September 22, 2015, the Company borrowed $ 500.0 million against the Term Loan Facility. During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sel ls to and subsequently leases back from the VIE up to $ 60.0 million in certain machinery and equipment for a period of up to five years . In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both t he power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consoli dates t he financial statements of the VIE and eliminates all intercompany transactions. At May 31, 2016 , the VIE had approximately $ 21.3 million of total assets, of which approximately $ 21.0 million was comprised of a note receivable due from the Company, and approximately $ 20.9 million of total liabilities, of which approximately $ 20.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $ 20.9 million of the $6 0.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used o nly to settle the obligations of the VIE. |
Notes Payable, Long-Term Debt49
Notes Payable, Long-Term Debt and Capital Lease Obligations (Details 2) - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 |
Notes Payable, Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Total notes payable, long-term debt and capital lease obligations | $ 2,150,913 | $ 1,670,391 |
Less current installments of notes payable, long-term debt and capital lease obligations | 359,885 | 323,833 |
Notes payable, long-term debt and capital lease obligations, less current installments | $ 1,791,028 | $ 1,346,558 |
Notes Payable, Long-Term Debt50
Notes Payable, Long-Term Debt and Capital Lease Obligations (Additional Information) (Details 3) - USD ($) $ in Thousands | May 19, 2016 | Jul. 06, 2015 | May 31, 2012 | May 31, 2016 | Sep. 22, 2015 | Aug. 31, 2015 | |
Debt Instrument [Line Items] | |||||||
Debt obligation utilized | [1] | $ 510,794 | $ 30,410 | ||||
Total assets | 9,906,074 | 9,603,207 | |||||
Total liabilities | 7,394,817 | $ 7,268,196 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 5 years | ||||||
Revolving credit facility initiation amount | $ 1,500,000 | ||||||
Revolving credit facility maximum borrowing capacity | $ 2,000,000 | ||||||
Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 5 years | ||||||
Term loan facility maximum borrowing capacity | $ 500,000 | ||||||
Debt obligation utilized | $ 500,000 | ||||||
4.900% Senior Notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Private Placement Borrowing Amount | $ 300,000 | ||||||
Private Placement Interest Rate | 4.90% | ||||||
Debt Instrument, Maturity Date | Jul. 14, 2023 | ||||||
Variable Interest Entity | |||||||
Debt Instrument [Line Items] | |||||||
VIE credit capacity | $ 60,000 | ||||||
Total assets | 21,300 | ||||||
Notes receivable | 21,000 | ||||||
Total liabilities | $ 20,900 | ||||||
Maximum | Variable Interest Entity | |||||||
Debt Instrument [Line Items] | |||||||
Lease agreement period | 5 years | ||||||
[1] | On July 6, 2015, the Company entered into an amended and restated senior unsecured five year credit agreement. The credit agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in the initial amount of $ 1.5 billion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2.0 billion and a $ 500.0 million five year delayed draw term loan facility (the “Term Loan Facility” and, together with the Revolving Credit Facility, the “Credit Faci lity”). On September 22, 2015, the Company borrowed $ 500.0 million against the Term Loan Facility. During the third quarter of fiscal year 2012, the Company entered into a master lease agreement with a variable interest entity (the “VIE”) whereby it sel ls to and subsequently leases back from the VIE up to $ 60.0 million in certain machinery and equipment for a period of up to five years . In connection with this transaction, the Company holds a variable interest in the VIE, which was designed to hold debt obligations payable to third-party creditors. The proceeds from such debt obligations are utilized to finance the purchase of the machinery and equipment that is then leased by the Company. The Company is the primary beneficiary of the VIE as it has both t he power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Therefore, the Company consoli dates t he financial statements of the VIE and eliminates all intercompany transactions. At May 31, 2016 , the VIE had approximately $ 21.3 million of total assets, of which approximately $ 21.0 million was comprised of a note receivable due from the Company, and approximately $ 20.9 million of total liabilities, of which approximately $ 20.9 million were debt obligations to the third-party creditors (as the VIE has utilized approximately $ 20.9 million of the $6 0.0 million debt obligation capacity). The third-party creditors have recourse to the Company’s general credit only in the event that the Company defaults on its obligations under the terms of the master lease agreement. In addition, the assets held by the VIE can be used o nly to settle the obligations of the VIE. |
Notes Payable, Long-Term Debt51
Notes Payable, Long-Term Debt and Capital Lease Obligations (Fair Value) (Details 4) $ in Millions | May 31, 2016USD ($) |
7.750% Senior Notes Due 2016 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | $ 313.9 |
8.250% Senior Notes Due 2018 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | 439.1 |
5.625% Senior Notes Due 2020 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | 426 |
4.700% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | $ 500.5 |
Trade Accounts Receivable Sec52
Trade Accounts Receivable Securitization and Sale Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Trade Accounts Receivable Sale Programs | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 700 | $ 500 | $ 3,000 | $ 1,500 |
Cash proceeds for the sale of trade accounts receivable | 700 | 500 | $ 2,900 | 1,500 |
Asset-Backed Securitization Programs | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Percentage of trade accounts receivable sold to conduits by special purpose entities | 100.00% | |||
Trade accounts receivable sold | 2,000 | 1,900 | $ 5,800 | 5,600 |
Cash proceeds for the sale of trade accounts receivable | 1,500 | 1,500 | 5,300 | 5,200 |
Cash proceeds from new transfers | 3 | 5.9 | ||
Deferred purchases price receivable | 517.3 | 438.5 | 517.3 | 438.5 |
Pretax losses on sale of trade accounts receivable | 1.3 | $ 1.2 | $ 3.5 | $ 2.8 |
North American Asset-Backed Securitization Program | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Expiration date | Oct. 20, 2017 | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 200 | $ 200 | ||
Foreign Asset-Backed Securitization Program | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Expiration date | May 1, 2018 | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 275 | $ 275 | ||
Foreign Asset-Backed Securitization Program | Before amendment | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 175 | 175 | ||
Foreign Asset-Backed Securitization Program | After amendment | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 275 | $ 275 | ||
650.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Expiration date | Nov. 1, 2016 | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 650 | $ 650 | ||
Minimum number of days notice required to cancel receivable sale agreements | 15 days | |||
Agreement extension date | Aug. 31, 2017 | |||
Minimum number of days notice required to not automatically extend receivable sale agreements | 30 days | |||
650.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | Before amendment | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 450 | $ 450 | ||
650.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | After amendment | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 650 | $ 650 | ||
150.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Expiration date | Aug. 31, 2016 | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 150 | $ 150 | ||
100.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | ||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Expiration date | Nov. 1, 2016 | |||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | $ 100 | $ 100 | ||
Minimum number of days notice required to cancel receivable sale agreements | 15 days | |||
Agreement extension date | Nov. 1, 2018 | |||
Minimum number of days notice required to not automatically extend receivable sale agreements | 30 days |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Summary of Changes in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (50,854) | |||
Other comprehensive (loss) income before reclassifications | (25,015) | |||
Amounts reclassified from AOCI | 29,762 | |||
Other comprehensive income (loss) | $ 22,904 | $ (8,666) | 4,747 | $ (96,206) |
Ending balance | (46,107) | (46,107) | ||
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 6,666 | |||
Other comprehensive (loss) income before reclassifications | (5,433) | |||
Other comprehensive income (loss) | (5,433) | |||
Ending balance | 1,233 | 1,233 | ||
Derivative instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (12,033) | |||
Other comprehensive (loss) income before reclassifications | (15,834) | |||
Amounts reclassified from AOCI | 29,762 | |||
Other comprehensive income (loss) | 13,928 | |||
Ending balance | 1,895 | 1,895 | ||
Actuarial loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (30,624) | |||
Ending balance | (30,624) | (30,624) | ||
Prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 1,054 | |||
Ending balance | 1,054 | 1,054 | ||
Unrealized (loss) gain on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (15,917) | |||
Other comprehensive (loss) income before reclassifications | (3,748) | |||
Other comprehensive income (loss) | (3,748) | |||
Ending balance | $ (19,665) | $ (19,665) |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Additional Information) (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended |
May 31, 2016 | May 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $ 0 | $ 0 |
Postretirement and Other Empl55
Postretirement and Other Employee Benefits (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Postretirement and Other Employee Benefits [Abstract] | ||||
Service cost | $ 222 | $ 256 | $ 662 | $ 803 |
Interest cost | 1,208 | 1,384 | 3,693 | 4,267 |
Expected long-term return on plan assets | (1,383) | (1,440) | (4,243) | (4,431) |
Recognized actuarial loss | 264 | 479 | 790 | 1,491 |
Amortization of prior service cost | (35) | (35) | (104) | (114) |
Net periodic benefit cost | $ 276 | $ 644 | $ 798 | $ 2,016 |
Postretirement and Other Empl56
Postretirement and Other Employee Benefits (Details 2) $ in Millions | 9 Months Ended |
May 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions to defined benefit pension plans | $ 2.6 |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected cash contributions to funded pension plans during the fiscal year ended August 31, 2016 | 3 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected cash contributions to funded pension plans during the fiscal year ended August 31, 2016 | $ 3.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | May 31, 2016USD ($) |
Commitments and Contingencies [Abstract] | |
Potential additional income tax payment due | $ 34.6 |
Derivative Financial Instrume58
Derivative Financial Instruments and Hedging Activities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
May 31, 2016 | Aug. 31, 2007 | May 31, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | Aug. 31, 2011 | Feb. 28, 2011 | |
Derivative [Line Items] | |||||||
Hedge accounting adjustment related to terminated interest rate swaps | $ 297 | $ 297 | $ 2,077 | ||||
Forward foreign exchange contracts | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding | 1,300,000 | 1,300,000 | 1,800,000 | ||||
Forward foreign exchange contracts | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding | 245,100 | 245,100 | $ 615,100 | ||||
7.750% Senior Notes Due 2016 | Interest rate swap | Fair value hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding | $ 200,000 | ||||||
Fair value of interest rate swap including accrued interest on interest rate swap | $ 12,200 | ||||||
Accrued interest on interest rate swaps | $ 600 | ||||||
Amortization of interest rate swaps | $ 1,800 | ||||||
8.250% Senior Notes Due 2018 | Interest rate swap | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding | $ 400,000 | ||||||
Payment to settle interest rate swaps | $ 43,100 | ||||||
Anticipated Debt Issuance [Member] | Treasury Lock [Member] | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding | $ 200,000 | ||||||
Positive cash settlement | $ 100 | ||||||
Anticipated Debt Issuance [Member] | Treasury Lock [Member] | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount outstanding | $ 200,000 |
Derivative Financial Instrume59
Derivative Financial Instruments and Hedging Activities (Fair Value of Assets and Liabilities Related to Recurring Foreign Forward Exchange Contracts) (Details 2) - Recurring $ in Thousands | May 31, 2016USD ($) |
Assets: | |
Forward foreign exchange contracts, Assets | $ 5,320 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (15,348) |
Total | (10,028) |
Level 2 | |
Assets: | |
Forward foreign exchange contracts, Assets | 5,320 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (15,348) |
Total | $ (10,028) |
Derivative Financial Instrume60
Derivative Financial Instruments and Hedging Activities (Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets for Foreign Currency Risk Management Purposes) (Details 3) - Forward foreign exchange contracts - USD ($) $ in Thousands | May 31, 2016 | Aug. 31, 2015 |
Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | $ 4,914 | $ 16,509 |
Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | 1,377 | 267 |
Not Designated as Hedging Instrument | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | 10,434 | 29,529 |
Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | $ 3,943 | $ 5,525 |
Restructuring and Related Cha61
Restructuring and Related Charges (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 4,460 | $ (782) | $ 8,349 | $ 31,833 |
Total pre-tax restructuring and other related costs expected to be recognized | 179,000 | 179,000 | ||
Restructuring related charges to date | 158,900 | 158,900 | ||
2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 33,327 | |||
EMS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 4,460 | (1,107) | 7,454 | 30,743 |
Restructuring related charges to date | 121,000 | 121,000 | ||
DMS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,014 | 424 | ||
Restructuring related charges to date | 29,000 | 29,000 | ||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 325 | (119) | 2,160 | |
Restructuring related charges to date | 8,900 | 8,900 | ||
Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 157,400 | 157,400 | ||
Charges Not Yet Recognized [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 20,100 | 20,100 | ||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 4,197 | (1,847) | 7,743 | 23,355 |
Employee Severance | Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 4,197 | (1,847) | 7,743 | 23,355 |
Asset Write-Off Cost | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 701 | 5,688 | ||
Lease Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | (43) | (43) | 2,777 | |
Lease Costs | Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 2,777 | |||
Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 306 | 364 | 649 | 1,507 |
Other Related Costs | Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 306 | $ 364 | $ 649 | $ 1,507 |
Restructuring and Related Cha62
Restructuring and Related Charges (Significant Components and Activity) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | $ 19,050 | $ 39,465 | $ 30,957 | $ 45,521 |
Restructuring Related Charges | 4,460 | (782) | 8,349 | 31,833 |
Asset Write off Charge and Other Non- Cash Activity | 429 | (1,534) | (404) | (10,521) |
Cash Payments | (3,544) | (3,119) | (18,507) | (34,297) |
Liability, Ending Balance | 20,395 | 34,030 | 20,395 | 34,030 |
2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Related Charges | 33,327 | |||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 18,115 | 36,156 | 30,047 | 45,246 |
Restructuring Related Charges | 4,197 | (1,847) | 7,743 | 23,355 |
Asset Write off Charge and Other Non- Cash Activity | 407 | (803) | (404) | (4,714) |
Cash Payments | (3,234) | (2,586) | (17,901) | (32,967) |
Liability, Ending Balance | 19,485 | 30,920 | 19,485 | 30,920 |
Lease Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 64 | 2,403 | 64 | 18 |
Restructuring Related Charges | (43) | (43) | 2,777 | |
Asset Write off Charge and Other Non- Cash Activity | 0 | (26) | ||
Cash Payments | (53) | (419) | ||
Liability, Ending Balance | 21 | 2,350 | 21 | 2,350 |
Asset Write-Off Cost | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Related Charges | 701 | 5,688 | ||
Asset Write off Charge and Other Non- Cash Activity | (701) | (5,688) | ||
Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 871 | 906 | 846 | 257 |
Restructuring Related Charges | 306 | 364 | 649 | 1,507 |
Asset Write off Charge and Other Non- Cash Activity | 22 | (30) | 0 | (93) |
Cash Payments | (310) | (480) | (606) | (911) |
Liability, Ending Balance | $ 889 | $ 760 | $ 889 | $ 760 |
Restructuring and Related Cha63
Restructuring and Related Charges (Significant Components and Activity by Reportable Segment) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | $ 19,050 | $ 39,465 | $ 30,957 | $ 45,521 |
Restructuring Related Charges | 4,460 | (782) | 8,349 | 31,833 |
Asset Write off Charge and Other Non- Cash Activity | 429 | (1,534) | (404) | (10,521) |
Cash Payments | (3,544) | (3,119) | (18,507) | (34,297) |
Liability, Ending Balance | 20,395 | 34,030 | 20,395 | 34,030 |
2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Related Charges | 33,327 | |||
EMS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 17,115 | 35,358 | 28,834 | 35,504 |
Restructuring Related Charges | 4,460 | (1,107) | 7,454 | 30,743 |
Asset Write off Charge and Other Non- Cash Activity | 429 | (1,534) | (395) | (10,375) |
Cash Payments | (2,858) | (1,897) | (16,747) | (25,052) |
Liability, Ending Balance | 19,146 | 30,820 | 19,146 | 30,820 |
DMS [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 1,935 | 3,701 | 1,960 | 8,268 |
Restructuring Related Charges | 1,014 | 424 | ||
Asset Write off Charge and Other Non- Cash Activity | 0 | 0 | (9) | (146) |
Cash Payments | (686) | (910) | (1,716) | (5,755) |
Liability, Ending Balance | 1,249 | 2,791 | 1,249 | 2,791 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 406 | 163 | 1,749 | |
Restructuring Related Charges | 325 | (119) | 2,160 | |
Cash Payments | (312) | (44) | (3,490) | |
Liability, Ending Balance | $ 0 | $ 419 | $ 0 | $ 419 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Millions | Jul. 01, 2015 | Aug. 31, 2015 | May 31, 2016 | Aug. 31, 2015 |
Plasticos [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Jul. 1, 2015 | |||
Amount of cash paid for business acquisitions | $ 111 | |||
Assets acquired | $ 168.5 | $ 168.5 | ||
Goodwill | 41.7 | |||
Intangible assets acquired | 32.1 | 32.1 | ||
Liabilities assumed | 49.7 | 49.7 | ||
Percentage of equity interest acquired | 100.00% | |||
Step acquisition gain | 6.2 | |||
Previously held equity interest | 1.6 | |||
Plasticos [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 24.4 | $ 24.4 | ||
Plasticos [Member] | Customer Relationships [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life of intangible assets | 10 years | |||
Plasticos [Member] | Intellectual Property [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 6.5 | $ 6.5 | ||
Plasticos [Member] | Intellectual Property [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life of intangible assets | 5 years | |||
Plasticos [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 1.2 | $ 1.2 | ||
Plasticos [Member] | Trade Names [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life of intangible assets | 1 year | |||
Five Additional Acquisitions Completed In Fiscal Year 2015 [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount of cash paid for business acquisitions | $ 117 | |||
Assets acquired | 167.8 | 167.8 | ||
Goodwill | 42.4 | |||
Intangible assets acquired | 31.7 | 31.7 | ||
Liabilities assumed | $ 50.8 | $ 50.8 | ||
Two Acquisitions (Inala & Shemer) Completed In Fiscal Year 2016 [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount of cash paid for business acquisitions | $ 72.3 | |||
Assets acquired | 92.2 | |||
Goodwill | 19.3 | |||
Intangible assets acquired | 31.4 | |||
Liabilities assumed | 19.9 | |||
Transaction costs | 1.1 | |||
Two Acquisitions (Inala & Shemer) Completed In Fiscal Year 2016 [Member] | EMS [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 19.3 | |||
Hanson [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Jan. 13, 2016 | |||
Amount of cash paid for business acquisitions | $ 139.2 | |||
Assets acquired | 373.3 | |||
Property, plant and equipment acquired | 248 | |||
Intangible assets and goodwill acquired | 125.3 | |||
Liabilities assumed | 230 | |||
Deferred tax liabilities assumed | 4.1 | |||
Transaction costs | 2.1 | |||
Hanson [Member] | Scenario, Forecast [Member] | ||||
Business Acquisition [Line Items] | ||||
Real property | $ 33.3 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended |
May 31, 2016 | |
Income Taxes [Abstract] | |
U.S federal statutory rate | 35.00% |