Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Feb. 28, 2017 | Mar. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Feb. 28, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 182,290,457 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 755,098 | $ 912,059 |
Accounts receivable, net of allowance for doubtful accounts of $12,635 at February 28, 2017 and $11,094 at August 31, 2016 | 1,433,676 | 1,359,610 |
Inventories | 2,498,137 | 2,456,612 |
Prepaid expenses and other current assets | 949,610 | 1,120,100 |
Total current assets | 5,636,521 | 5,848,381 |
Property, plant and equipment, net of accumulated depreciation of $2,904,556 at February 28, 2017 and $2,721,972 at August 31, 2016 | 3,177,728 | 3,331,879 |
Goodwill | 591,682 | 594,773 |
Intangible assets, net of accumulated amortization of $249,618 at February 28, 2017 and $232,618 at August 31, 2016 | 285,414 | 296,954 |
Deferred income taxes | 175,300 | 148,859 |
Other assets | 148,183 | 101,831 |
Total assets | 10,014,828 | 10,322,677 |
Current liabilities: | ||
Current installments of notes payable, long-term debt and capital lease obligations | 47,324 | 45,810 |
Accounts payable | 3,301,826 | 3,593,195 |
Accrued expenses | 1,952,056 | 1,929,051 |
Total current liabilities | 5,301,206 | 5,568,056 |
Notes payable, long-term debt and capital lease obligations, less current installments | 2,055,545 | 2,074,012 |
Other liabilities | 85,301 | 78,018 |
Income tax liabilities | 96,080 | 90,804 |
Deferred income taxes | 49,598 | 54,290 |
Total liabilities | 7,587,730 | 7,865,180 |
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; 252,553,308 and 249,763,699 shares issued and 182,349,673 and 186,998,472 shares outstanding at February 28, 2017 and August 31, 2016, respectively | 253 | 250 |
Additional paid-in capital | 2,060,742 | 2,034,525 |
Retained earnings | 1,738,823 | 1,660,820 |
Accumulated other comprehensive loss | (8,679) | (39,877) |
Treasury stock at cost, 70,203,635 and 62,765,227 shares at February 28, 2017 and August 31, 2016, respectively | (1,379,831) | (1,217,547) |
Total Jabil Circuit, Inc. stockholders' equity | 2,411,308 | 2,438,171 |
Noncontrolling interests | 15,790 | 19,326 |
Total equity | 2,427,098 | 2,457,497 |
Total liabilities and equity | $ 10,014,828 | $ 10,322,677 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 12,635 | $ 11,094 |
Property, plant and equipment, accumulated depreciation | 2,904,556 | 2,721,972 |
Intangible assets, accumulated amortization | $ 249,618 | $ 232,618 |
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 | 252,553,308 | 249,763,699 |
Common stock, shares outstanding | 182,349,673 | 186,998,472 |
Treasury stock, shares | 70,203,635 | 62,765,227 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Income Statement [Abstract] | ||||
Net revenue | $ 4,445,637 | $ 4,403,594 | $ 9,550,535 | $ 9,611,571 |
Cost of revenue | 4,083,733 | 4,004,161 | 8,757,125 | 8,728,603 |
Gross profit | 361,904 | 399,433 | 793,410 | 882,968 |
Operating expenses: | ||||
Selling, general and administrative | 217,943 | 224,905 | 431,995 | 476,451 |
Research and development | 7,085 | 8,465 | 14,708 | 16,757 |
Amortization of intangibles | 8,766 | 8,599 | 17,088 | 16,439 |
Restructuring and related charges | 44,927 | 2,535 | 80,829 | 3,888 |
Operating income | 83,183 | 154,929 | 248,790 | 369,433 |
Other expense | 3,371 | 2,167 | 8,051 | 3,933 |
Interest income | (2,289) | (2,287) | (4,744) | (4,351) |
Interest expense | 33,800 | 34,262 | 66,644 | 67,297 |
Income before income tax | 48,301 | 120,787 | 178,839 | 302,554 |
Income tax expense | 28,177 | 42,354 | 72,014 | 92,206 |
Discontinued operations: | ||||
Net income | 20,124 | 78,433 | 106,825 | 210,348 |
Net loss attributable to noncontrolling interests, net of tax | (541) | (497) | (1,867) | (467) |
Net income attributable to Jabil Circuit, Inc. | $ 20,665 | $ 78,930 | $ 108,692 | $ 210,815 |
Basic: | ||||
Net income [per share] | $ 0.11 | $ 0.41 | $ 0.59 | $ 1.11 |
Diluted: | ||||
Net income [per share] | $ 0.11 | $ 0.41 | $ 0.58 | $ 1.09 |
Weighted average shares outstanding: | ||||
Basic | 182,632 | 190,957 | 183,970 | 190,656 |
Diluted | 185,010 | 193,294 | 186,463 | 193,429 |
Cash dividends declared per common share | $ 0.08 | $ 0.08 | $ 0.16 | $ 0.16 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20,124 | $ 78,433 | $ 106,825 | $ 210,348 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 27,123 | (3,625) | 3,504 | (24,167) |
Changes in fair value of derivative instruments, net of tax | 2,423 | (12,904) | 10,656 | (13,813) |
Reclassification of net losses realized and included in net income related to derivative instruments, net of tax | 7,797 | 11,886 | 11,394 | 22,950 |
Unrealized gain (loss) on available for sale securities | 6,893 | (4,836) | 5,644 | (3,127) |
Total other comprehensive income (loss) | 44,236 | (9,479) | 31,198 | (18,157) |
Comprehensive income | 64,360 | 68,954 | 138,023 | 192,191 |
Comprehensive (loss) income attributable to noncontrolling interests | (541) | (497) | (1,867) | (467) |
Comprehensive income attributable to Jabil Circuit, Inc. | $ 64,901 | $ 69,451 | $ 139,890 | $ 192,658 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Feb. 28, 2017 - 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, 2016 | $ 2,457,497 | $ 250 | $ 2,034,525 | $ 1,660,820 | $ (39,877) | $ (1,217,547) | $ 19,326 |
Balance (in shares) at Aug. 31, 2016 | 186,998,472 | 186,998,472 | |||||
Shares issued upon exercise of stock options (in shares) | 38,707 | ||||||
Shares issued under employee stock purchase plan | $ 11,251 | $ 1 | 11,250 | ||||
Shares issued under employee stock purchase plan (in shares) | 710,761 | ||||||
Vesting of restricted stock awards | $ 2 | (2) | |||||
Vesting of restricted stock awards (in shares) | 2,040,141 | ||||||
Purchases of treasury stock under employee stock plans | (10,796) | (10,796) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (499,803) | ||||||
Treasury shares purchased | (151,488) | (151,488) | |||||
Treasury shares purchased (in shares) | (6,938,605) | ||||||
Recognition of stock-based compensation | 14,969 | 14,969 | |||||
Declared dividends | (30,689) | (30,689) | |||||
Comprehensive income | 138,023 | 108,692 | 31,198 | (1,867) | |||
Declared dividends to noncontrolling interests | (1,500) | (1,500) | |||||
Foreign currency adjustments attributable to noncontrolling interests | (169) | (169) | |||||
Balance at Feb. 28, 2017 | $ 2,427,098 | $ 253 | $ 2,060,742 | $ 1,738,823 | $ (8,679) | $ (1,379,831) | $ 15,790 |
Balance (in shares) at Feb. 28, 2017 | 182,349,673 | 182,349,673 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 106,825 | $ 210,348 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 380,317 | 329,301 |
Restructuring and related charges | 46,775 | |
Recognition of stock-based compensation expense and related charges | 15,027 | 45,060 |
Deferred income taxes | (31,680) | (22,940) |
Loss on sale of property, plant and equipment | 852 | 11,633 |
Other, net | 8,831 | 4,334 |
Changes in operating assets and liabilities, exclusive of net assets acquired: | ||
Accounts receivable | (77,649) | 20,027 |
Inventories | (19,521) | 223,140 |
Prepaid expenses and other current assets | 145,527 | (17,010) |
Other assets | (41,971) | (3,486) |
Accounts payable, accrued expenses and other liabilities | (187,130) | (727,749) |
Net cash provided by operating activities | 346,203 | 72,658 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (320,674) | (456,028) |
Proceeds from sale of property, plant and equipment | 18,963 | 7,196 |
Cash paid for business and intangible asset acquisitions, net of cash | (5,256) | (206,670) |
Issuance of notes receivable | (28,500) | |
Other, net | (1,360) | (5,250) |
Net cash used in investing activities | (308,327) | (689,252) |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 3,453,390 | 3,404,241 |
Payments toward debt agreements | (3,471,329) | (2,726,027) |
Payments to acquire treasury stock | (151,488) | (54,567) |
Dividends paid to stockholders | (30,940) | (31,795) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 11,250 | 10,660 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (10,796) | (10,329) |
Other, net | (1,499) | (1,500) |
Net cash (used in) provided by financing activities | (201,412) | 590,683 |
Effect of exchange rate changes on cash and cash equivalents | 6,575 | (4,834) |
Net decrease in cash and cash equivalents | (156,961) | (30,745) |
Cash and cash equivalents at beginning of period | 912,059 | 913,963 |
Cash and cash equivalents at end of period | $ 755,098 | $ 883,218 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 28, 2017 | |
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, 2016 . Results for the six month s ended February 28, 2017 are not necessarily an indication of the res ults that may be expected for the full fiscal year ending August 31, 2017 . |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 6 Months Ended |
Feb. 28, 2017 | |
Earnings Per Share and Dividends [Abstract] | |
Earnings Per Share and Dividends | 2 . 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. For the three months and six months ended February 28, 2017 , 3,130 and 499,243 stock appreciation rights, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. For the three months and six months ended February 29, 2016 , 2,157,753 and 1,823,162 stock appreciation rights, respectively, were excluded from the computation of diluted earnings per share as their effect would have been ant i-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 six months ended February 28, 2017 and February 29, 2016 (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 2017: October 20, 2016 $ 0.08 $ 15,248 November 15, 2016 December 1, 2016 January 26, 2017 $ 0.08 $ 15,051 February 15, 2017 March 1, 2017 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 |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2017 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following (in thousands): February 28, 2017 August 31, 2016 Raw materials $ 1,458,375 $ 1,302,481 Work in process 658,689 675,867 Finished goods 424,557 510,485 Reserve for inventory obsolescence (43,484) (32,221) Total inventories, net $ 2,498,137 $ 2,456,612 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Feb. 28, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 4 . 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 $ 15.3 million and $ 15.0 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 six months ended February 28, 2017 , respectively. During the first quarter of fiscal year 2017, the Company recorded a $ 21.0 million reversal to stock-based compensation expense due to decreased expectation s for the vesting of certain performance-based restricted stock awards. The Company recorded tax benefits related to the stock-based compensation expense of $0.2 million and $0.3 million , which is included in income tax expense within th e Condensed Consolidated Statements of Operations for three months and six months ended February 28, 2017 , respectively. The Company recorded $ 20.3 million and $ 45.1 million of stock-based compensation 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 six months ended February 29, 2016 , respectively. The Company recorded tax benefits related to the stock-based compensation expense of $0.3 million and $0.6 million , which is included in income tax expense within the Condensed Consolidated Statements of Operations for the three months and six months ended February 29, 2016 , respectively. 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 restricted awards generally vest on a cliff vesting schedule over three years and provide a range of vesting possibilities of up to a maximum of 200 % . The market-based 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 using a Monte Carlo valuation model, which utilizes multiple input variables to determine t he probability of the Company achieving the specified market conditions. During the six months ended February 28, 2017 and February 29, 2016 , the Company awarded approximately 1.8 million and 2.6 million time-based re stricted stock units, respectively, 0.6 million and 1.3 million performance-based restricted stock units, respectively and 0.4 million and 0.4 million market-based stock units, respectively. At February 28, 2017 , there was $ 76.1 million of total unrecognized stock-based compensation expense related to restricted stock awards. This expense is expected to be recognized over a weighted-average period of 1.5 years. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 6 Months Ended |
Feb. 28, 2017 | |
Concentration of Risk and Segment Data [Abstract] | |
Concentration of Risk and Segment Data | 5 . Concentration of Risk and Segment Data a. Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the six months ended February 28, 2017 , the Company’s five largest custom ers accounted for approximately 48 % of its net revenue and 76 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 o f end markets. The EMS segment includes customers primarily in the automotive and transportation , capital equipment, computing and storage, digital home, industrial and energy, networking and telecommunications, point of sale and printing industries . The D MS segment is focused 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, healthcar e, mobility and packaging industries . Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Seg ment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expens es, and does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of s ubsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment 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 wit h third parties . The following tables set forth operating segment information (in thousands): Three months ended Six months ended February 28, February 29, February 28, February 29, 2017 2016 2017 2016 Net revenue EMS $ 2,682,811 $ 2,657,262 $ 5,386,100 $ 5,381,676 DMS 1,762,826 1,746,332 4,164,435 4,229,895 $ 4,445,637 $ 4,403,594 $ 9,550,535 $ 9,611,571 Segment income and reconciliation of income before income tax EMS $ 98,089 $ 84,692 $ 187,635 $ 167,957 DMS 54,105 101,639 174,099 266,863 Total segment income $ 152,194 $ 186,331 $ 361,734 $ 434,820 Reconciling items: Amortization of intangibles 8,766 8,599 17,088 16,439 Stock-based compensation expense and related charges 15,318 20,268 15,027 45,060 Restructuring and related charges 44,927 2,535 80,829 3,888 Other expense 3,371 2,167 8,051 3,933 Interest income (2,289) (2,287) (4,744) (4,351) Interest expense 33,800 34,262 66,644 67,297 Income before income tax $ 48,301 $ 120,787 $ 178,839 $ 302,554 February 28, 2017 August 31, 2016 Total assets EMS $ 2,797,581 $ 2,615,237 DMS 4,773,662 5,012,798 Other non-allocated assets 2,443,585 2,694,642 $ 10,014,828 $ 10,322,677 As of February 28, 2017 , 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 90.9 % and 91.7 % of net revenue during the three months and six months ended February 28, 2017 , respectively, compared to 90.3 % and 91.3 % of net revenue during the three months and six months ended February 29, 2016 , respectively. |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Capital Lease Obligations | 6 Months Ended |
Feb. 28, 2017 | |
Notes Payable, Long-Term Debt and Capital Lease Obligations [Abstract] | |
Notes Payable, Long-Term Debt and Capital Lease Obligations | 6 . Notes Payable, Long-Term Debt and Capital Lease Obligations Notes payable, long-term debt and capital lease obligations outstanding at February 28, 2017 and August 31, 2016 are summarized below (in thousands): February 28, August 31, 2017 2016 8.250% Senior Notes due 2018 $ 399,029 $ 398,552 5.625% Senior Notes due 2020 396,658 396,212 4.700% Senior Notes due 2022 496,369 496,041 4.900% Senior Notes due 2023 298,450 298,329 Borrowings under loans 484,801 502,210 Capital lease obligations 27,562 28,478 Total notes payable, long-term debt and capital lease obligations 2,102,869 2,119,822 Less current installments of notes payable, long-term debt and capital lease obligations 47,324 45,810 Notes payable, long-term debt and capital lease obligations, less current installments $ 2,055,545 $ 2,074,012 The $400.0 million of 8.250% senior unsecured notes, $400.0 million of 5.625% senior unsecured notes , $500.0 million of 4.700% senior unsecured notes and $300.0 million of 4.900% senior unsecured notes outstanding are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs . The estimated fair values of the Company's publicly traded debt, including the 8.250%, 5.625% and 4.700% senior notes, were approximately $ 425.6 million , $ 433.4 million and $ 524.6 million re spectively, at February 28, 2017 . The fair value estimates are based upon observable market data (Level 2 criteria). The estimated fair value of the Company's private debt, the 4.900% senior notes, was approximately $ 307.9 million , at February 28, 2017 . This fair value estimate is based on the Company's indicative borrowing cost derived from discounted cash flows (Level 3 criteria). The carrying amounts of borrowings under credit facilities and under loans approximates fair value as int erest rates on these instruments approximates current market rates. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 6 Months Ended |
Feb. 28, 2017 | |
Trade Accounts Receivable Securitization and Sale Programs [Abstract] | |
Trade Accounts Receivable Securitization and Sale Programs | 7 . Trade Accounts Receivable Securitization and Sale Programs The Company regularly sells designated pools of trade accounts receivable under two asset-backed securitization programs and four 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 eac h of the programs recognized during the three months and six months ended February 28, 2017 and February 29, 2016 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the programs are accounted for as sales and, accordingly, net receivables sold under the programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows . a. Asset-Backed Securitization Programs The Company continuously sells designated pools of trade accounts receivable , at a discount, 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”) t o special purpose entities, which in turn sell 100 % of the receivables to conduits administered by unaffiliated financial institutions (for the North American asset-backed securitization program) and to an unaffiliated financial institution and a conduit a dministered by an unaffiliated financial institution (for the foreign asset-backed securitization program). The special purpose entity in the North American asset-backed securitization program is a wholly-owned subsidiary of the Company. The special purpos e 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 po tentially be significant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, the special purpose entities associated with these asset-backed securitization programs are included in the Company’s 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 $ 400 .0 million for the North American and foreign asset-backed securitization programs, respectively, are available at any one time. The foreign asset-backed securitization program was amended to increase the facility lim it from $ 275.0 million to $ 400.0 million, effective February 13, 2017. In connection with the asset- backed securitization programs, the Company sold $ 2.2 billion and $ 4.5 billion of eligible trade accounts receivable during the three months and six months ended February 28, 2017 , respectively. In exchange, the Company received cash proceeds of $ 1.7 billion and $ 4.0 billion during the three months and six months ended February 28, 2017 , respectively, ( which represented proceeds from collections reinvested in revolving-period transfers as there were no new transfers duri ng these periods ) and a deferred purchase pr ice receivable. The Company sold $ 1.9 billion and $ 3.8 billion of eligible trade accounts receivable during the three months and six months ended February 29, 2016 , respectively. In exchange, the Company received cash proceeds of $ 1.4 billion and $ 3.4 billion during the three months and six months ended February 29, 2016 , respectively, (of which approximately $ 3.0 million represented new transfers and the remainder represented proceeds from collections reinvested in revolving-period transfers) and a deferred purchase price receivable. At February 28, 2017 and February 29, 2016 , the deferred purchase price receivables recorded in connection with the asset-backed securitization programs t otaled approximately $ 467.2 million and $ 437.7 million , respectively. The Company recognized pretax losses on the sales of receivables under the asset-backed securitization programs of approximately $ 2.3 million and $ 4.1 million during the three months and six months ended February 28, 2017 , respectively, and approximately $ 1.2 million and $ 2.2 million during the three months and six months ended February 29, 2016 , respectively, which are recorded to other expense within the Conde nsed 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 four 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 $650.0 million, $150.0 million, 800 .0 million Chinese yuan renminbi (“CNY”) 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 w ill expire on August 31 , 2017 ( as the agreement was automatically extended on October 31, 2016), although any party may elect to terminate the agreement upon 15 days prior notice. The $150.0 million trade accounts receivable sale program is an uncommitted facility that will expire on August 31, 2017 unless renewed . The 800.0 million CNY trade accounts receivable sale program is an uncommitted facility that was entered into on February 15, 2017 and is scheduled to expire on February 15, 2018 unless renewed . The $100.0 million trade accounts receivable sale program is an uncommitted facility that is scheduled to expire on October 3 1, 201 7 (as the agreement was automatically extended on October 31, 2016 ), 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 until November 1, 2018, unless any party gives no less than 30 days prior notice that the agreement should not be extended. During the three months and six months ended February 28, 2017 , the Company sold $ 0.7 billion and $ 1.7 billion of trade accounts receivable under these programs, respectively, compared to $0.9 billion and $2.3 billion during the three months and six months ended February 29, 2016 , respectively. In exchange, the Company received cash proceeds of $ 0.7 billion and $ 1.7 billion during the three months and six months ended February 28, 2017 , respectively, compared to $0.9 billion and $2.3 billion during the three months and six months ended February 29, 2016 , respectively. The resulting losses on the sales of trade accounts receivable were approximately $ 1.4 million and $ 2.6 million during the three months and six months ended February 28, 2017 , respectively, compared to approximately $ 1.0 million and $ 2.0 million during the three months and six months ended February 29, 2016 , respectively, and were recorded to other expense within the Condensed Consolidated Statemen ts of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Feb. 28, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 8 . 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, 2016 to February 28, 2017 (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, 2016 $ 16,338 $ 7,784 $ (43,587) $ 941 $ (21,353) $ (39,877) Other comprehensive income (loss) before reclassifications (2,365) 10,656 ― ― 5,644 13,935 Amounts reclassified from AOCI 5,869 11,394 ― ― ― 17,263 Other comprehensive income 3,504 22,050 ― ― 5,644 31,198 Balance at February 28, 2017 $ 19,842 $ 29,834 $ (43,587) $ 941 $ (15,709) $ (8,679) The portion of AOCI reclassified into earnings during the six months ended February 28, 2017 for foreign currency translation adjustments was not material . The portion of AOCI reclassified into earnings during the six months ended February 28, 2017 for derivative instruments was primarily classified as a component of cost of revenue. The tax benefit (expense) on the derivative instruments component of AOCI, including reclassification a djustments, is not material for the three months and six months ended February 28, 2017 . There was no tax benefit (expense) on the foreign currency translation adjustment and the unrealized (loss) gain on available for sale securities components of AOCI, includin g reclassification adjustments, for the three months and six months ended February 28, 2017 . |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 6 Months Ended |
Feb. 28, 2017 | |
Postretirement and Other Employee Benefits [Abstract] | |
Postretirement and Other Employee Benefits | 9 . 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 , Fra nce, 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 six months ended February 28, 2017 and February 29, 2016 (in thousands): Three months ended Six months ended February 28, February 29, February 28, February 29, 2017 2016 2017 2016 Service cost $ 253 $ 218 $ 512 $ 440 Interest cost 732 1,217 1,478 2,485 Expected long-term return on plan assets (1,109) (1,397) (2,238) (2,860) Recognized actuarial loss 467 260 943 526 Amortization of prior service credit (33) (34) (67) (69) Net periodic benefit cost $ 310 $ 264 $ 628 $ 522 During the six months ended February 28, 2017 , the Company made contributions of approximately $ 1.5 million to its defined benefit pension plans. The Company expects to make total cash contributions of between $ 2.6 million and $ 3.4 million to its funded pension plans during the fiscal year ended August 31, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10 . 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 , which was updated on June 22, 2016, 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 201 1 would be approximately $ 28.6 million 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 fut ure audits with respect to these types 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 vigorous ly 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. While the resolution of the issues may result in tax liabilities, interest and penalties, which are significantly higher than the amounts accrue d for these matters, management currently believes that the resolution will not have a material adverse effect on the 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 adv erse effect on the Company’s results of operations and financial condition. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Feb. 28, 2017 | |
Derivative Financial Instruments and Hedging Activities [Abstract] | |
Derivative Financial Instruments and Hedging Activities | 11 . 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 . a. Foreign Currency Risk Management Forward contracts are put in place to manage the foreign currency risk associated with the anticipated foreign currency denominate d revenues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $ 207.7 million and $ 323.3 million at February 28, 2017 and August 31, 2016 , respectively. The related forward foreig n exchange contracts have been designated as hedging instruments and are accounted for as cash flow hedges. The forward foreign exchange contract transactions will effectively lock in the value of anticipated foreign currency denominated revenues and expen ses against foreign currency fluctuations. The anticipated foreign currency denominated revenues and expenses being hedged are expected to occur between March 1, 2017 and November 30, 2017 . In addition to derivatives that are designated as hedging instruments and qualify for hedge accounting, the Company also enters into forward contracts to economically hedge transactional exposure associated with commitments arising from trade accounts receivable, trade accounts paya ble, fixed purchase obligations and intercompany transactions denominated in a currency other than the functional currency of the respective operating entity. The aggregate notional amount of these outstanding contracts at February 28, 2017 and A ugust 31, 2016 , was $ 1.6 billion and $ 1.7 billion , respectively. The following table presents the Company’s assets and liabilities related to forward foreign exchange contracts measured at fair value on a recurring bas is as of February 28, 2017 , aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands): Level 1 Level 2 Level 3 Total Assets: Forward foreign exchange contracts $ ― 11,503 ― $ 11,503 Liabilities: Forward foreign exchange contracts ― (9,945) ― (9,945) Total $ ― 1,558 ― $ 1,558 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 February 28, 2017 and August 31, 2016 (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 February 28, 2017 August 31, 2016 Location February 28, 2017 August 31, 2016 Derivatives designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 2,916 $ 420 expenses $ 2,012 $ 1,986 Derivatives not designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 8,587 $ 3,850 expenses $ 7,933 $ 10,801 As of February 28, 2017 and August 31, 2016 , 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 six months ended February 28, 2017 and February 29, 2016 . 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. 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 six months ended February 28, 2017 and February 29, 2016 were not mater ial. Existing losses related 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 fourth quarter of fiscal year 2016, the Company entered into forwar d starting swap transactions to hedge the fixed interest rate payments for an anticipated debt issuance. The forward starting swaps have an aggregate notional amount of $200.0 million and have been designated as hedging instruments and accounted for as cas h flow hedges. The forward starting swaps are scheduled to expire on March 15, 2018. If the anticipated debt issuance occurs before March 15, 2018, the contracts will be terminated simultaneously with the debt issuance. The contracts will be settled with t he respective counterparties on a net basis at the time of termination or expiration. Changes in the fair value of the forward starting swap transactions are recorded on the Company’s Condensed Consolidated Balance Sheets as a component of AOCI. During the fourth quarter of fiscal year 2016, the Company entered into interest rate swap transactions to hedge the variable interest rate payments for the Term Loan Facility. In connection with this transaction, the Company will pay interest based upon a fixed rat e as agreed upon with the respective counterparties and receive variable rate interest payments based on the one-month LIBOR. The interest rate swaps have an aggregate notional amount of $200.0 million and have been designated as hedging instruments and ac counted for as cash flow hedges. The interest rate swaps were effective on September 30, 2016 and are scheduled to expire on June 30, 2019. The contracts will be settled with the respective counterparties on a net basis at each settlement date. Changes in the fair value of the interest rate swap transactions are recorded on the Company’s Condensed Consolidated Balance Sheets as a component of AOCI. |
Restructuring and Related Charg
Restructuring and Related Charges | 6 Months Ended |
Feb. 28, 2017 | |
Restructuring and Related Charges [Abstract] | |
Restructuring and Related Charges | 12 . Restructuring and Related Charges a. 201 7 Restructuring Plan In conjunction with the restructuring plan that was approved by the Company’s Board of Directors on S eptember 15, 2016 (the “2017 Restructuring Plan”), the Company charged $ 43.4 million and $ 77.5 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and six months ended February 28, 2017 , respectively. The 2017 Restructuring Plan is intended to better align the Company’s global capacity a nd administrative support infrastructure in order to further optimize organizational effectiveness. This action includes headcount reductions across the Company’s Selling, General and Administrative cost base and capacity realignment in higher cost locati ons. The restructuring and related charges during the three months and six months ended February 28, 2017 include cash costs of $ 8.1 million and $ 26.0 million related to employee severance and benefit costs, respectively, $ 1.1 million and $ 4.5 million related to lease costs, respectively, $ 0.1 million and $ 0.3 million of other related costs , respectively, as well as non-cash costs of $ 34.1 million and $ 46.7 million related to asset write -off costs, respectively. The Company currently expects to recognize approximately $ 195.0 million in pr e-tax restructuring and other related costs over the course of the Company’s fiscal years 2017 and 2018. The restructuring and related charges are expected to include $ 55.0 million to $ 75.0 million of employee severance and benefit costs; $ 110.0 million to $ 130.0 million of asset write-off costs; and $ 10.0 million of contract termination costs and other related costs. Since the inception of the 2017 Restructuring Plan, a total of $77.5 million of restructuring and related costs have been recognized. Of the $77.5 million recognized to date, $8.1 million was allocated to the EMS segment, $48.0 million was allocated to the DMS segment and $21.4 million was not allocated to a segment. The remaining $ 117.5 million of the restructuring and related costs expected t o 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 timetables for the transition of functions and consultation with the Company’s e mployees and their representatives. The tables below set forth the significant components and activity in the 2017 Restructuring Plan during the three months and six months ended February 28, 2017 (in thousands): 2017 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ 9,894 $ 8,090 $ 15 $ (7,662) $ 10,337 Lease costs 2,524 1,158 ― (110) 3,572 Asset write-off costs ― 34,065 (34,065) ― ― Other related costs 89 104 ― (143) 50 Total $ 12,507 $ 43,417 $ (34,050) $ (7,915) $ 13,959 2017 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31,2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ ― $ 25,986 $ ― $ (15,649) $ 10,337 Lease costs ― 4,449 ― (877) 3,572 Asset write-off costs ― 46,705 (46,705) ― ― Other related costs ― 339 ― (289) 50 Total $ ― $ 77,479 $ (46,705) $ (16,815) $ 13,959 The tables below set forth the significant components and activity in the 201 7 Restructuring Plan by reportable segment during the three months and six months ended February 28, 2017 (in thousands): 2017 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ 125 $ 2,536 $ (1,653) $ (537) $ 471 DMS 2,783 36,502 (32,172) (3,474) 3,639 Other 9,599 4,379 (225) (3,904) 9,849 Total $ 12,507 $ 43,417 $ (34,050) $ (7,915) $ 13,959 2017 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ ― $ 8,057 $ (6,723) $ (863) $ 471 DMS ― 48,006 (39,749) (4,618) 3,639 Other ― 21,416 (233) (11,334) 9,849 Total $ ― $ 77,479 $ (46,705) $ (16,815) $ 13,959 b. 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 $ 1.5 million and $ 3.3 million of restructuring and related charges to the Condensed Consolidated Statement of Operations during the three months and six months ended February 28, 2017 , respectively, compared to $ 2.5 million and $ 3.9 million during the three months and six months ended February 29, 2016 , 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 expenses. The restructuring and related charges during the three months and six months ended February 28, 2017 include cash costs of $1.0 million and $2.4 million related to employee severance and benefit costs , respectively, and $0.4 million and $ 0.8 million of other related costs, respectively , as well as non-cash costs of $ 0.1 million and $ 0.1 million related to asset write-off costs, respectively . The restructuring an d related charges during the three months and six months ended February 29, 2016 include cash costs of $ 2.5 million and $ 3.6 million related to employee severance and benefit costs , respectively, and $0.0 million and $0.3 million of other related costs , respectively. The Company currently expects to recognize approximately $ 179.0 million 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 Restructuring Plan, a total of $ 165.2 million of restructuring and related costs have been recognized. Of the $ 165.2 million rec ognized to date , $ 127.4 million was allocated to the EMS segment, $ 28.9 million was allocated to the DMS segment and $ 8.9 million was not allocated to a segment. A majority of the total restructuring costs ar e related to employee severance and benefit arrangements. The charges related to the 2013 Restructuring Plan, excluding asset write-off costs, are currently expected to result in cash expenditures of approximately $ 157.4 million that have been or will be payable over the course of the Company’s fiscal years 2013 through 2017. The remaining $ 13.8 million of the restructuring and related costs expected to be recognized reflects the Company’s intention only and restructuring dec isions, and the timing of such decisions, at certain plants are still subject to the finalization of timetables for the transition of functions and consultation with the Company’s employees and their representatives. The tables below set forth the signifi cant components and activity in the 2013 Restructuring Plan during the three months and six months ended February 28, 2017 and February 29, 2016 (in thousands): 2013 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ 15,204 $ 1,007 $ (53) $ (4,402) $ 11,756 Lease costs 21 ― ― ― 21 Asset write-off costs ― 70 (70) ― ― Other related costs 720 433 (3) (321) 829 Total $ 15,945 $ 1,510 $ (126) $ (4,723) $ 12,606 2013 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ 17,266 $ 2,497 $ (722) $ (7,285) $ 11,756 Lease costs 21 ― ― ― 21 Asset write-off costs ― 70 (70) ― ― Other related costs 740 783 (35) (659) 829 Total $ 18,027 $ 3,350 $ (827) $ (7,944) $ 12,606 2013 Restructuring Plan – Three Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2015 Charges Non-Cash Activity Payments February 29, 2016 Employee severance and benefit costs $ 20,775 $ 2,467 $ 586 $ (5,713) $ 18,115 Lease costs 64 ― ― ― 64 Other related costs 856 68 27 (80) 871 Total $ 21,695 $ 2,535 $ 613 $ (5,793) $ 19,050 2013 Restructuring Plan – Six Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments February 29, 2016 Employee severance and benefit costs $ 30,047 $ 3,545 $ (810) $ (14,667) $ 18,115 Lease costs 64 ― ― ― 64 Other related costs 846 343 (22) (296) 871 Total $ 30,957 $ 3,888 $ (832) $ (14,963) $ 19,050 The tables below set forth the significant components and activity in the 2013 Restructuring Plan by reportable segment during the three months and six months ended February 28, 2017 and February 29, 2016 (in thousands): 2013 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ 15,388 $ 1,440 $ (55) $ (4,604) $ 12,169 DMS 557 70 (71) (119) 437 Total $ 15,945 $ 1,510 $ (126) $ (4,723) $ 12,606 2013 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ 17,338 3,280 (744) (7,705) $ 12,169 DMS 689 70 (83) (239) 437 Total $ 18,027 $ 3,350 $ (827) $ (7,944) $ 12,606 2013 Restructuring Plan – Three Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2015 Charges Non-Cash Activity Payments February 29, 2016 EMS $ 20,079 $ 1,757 $ 603 $ (5,324) $ 17,115 DMS 1,616 778 10 (469) 1,935 Total $ 21,695 $ 2,535 $ 613 $ (5,793) $ 19,050 2013 Restructuring Plan – Six Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments February 29, 2016 EMS $ 28,834 $ 2,993 $ (823) $ (13,889) $ 17,115 DMS 1,960 1,014 (9) (1,030) 1,935 Other 163 (119) ― (44) ― Total $ 30,957 $ 3,888 $ (832) $ (14,963) $ 19,050 |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Feb. 28, 2017 | |
Business Acquisitions [Abstract] | |
Business Acquisitions [Text Block] | 13 . 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 Conden sed Consolidated State ment of Cash Flows as a component of cash flows from operating activities), with the exception of the real property, which closed on July 7, 2016, for approximately $ 33.3 million. Hanson is engaged in the business of manufacturing certain parts for custome rs 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 $ 406.4 million, including $ 276.8 million in property, plant and equipment, $ 129.6 million in goodwill and intangible assets assigned to customer relationships, liabilities assumed of $230.0 million and $ 3.9 million of deferred tax liabilities were recorded at their estimated fair values as of the acquisition date. The excess of th e purchase price over the fair value of the acquired assets was recorded to goodwill and was fully allocated to the DMS segment . None of the goodwill is currently expected to be deductible for income tax purposes. A customer relationship was valued using t he multi-period excess earnings method under the income approach. 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 acquisitio n 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 referred 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 app roximately $ 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 ass ets, 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 assumed liabilities of $ 19.3 million was recorded to g oodwill and was fully allocated to the EMS segment. None of the goodwill is currently expected to be deductible for income tax purposes. 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 individually or in the aggregate. |
New Accounting Guidance
New Accounting Guidance | 6 Months Ended |
Feb. 28, 2017 | |
New Accounting Guidance [Abstract] | |
New Accounting Guidance | 14 . New Accounting Guidance Recently Issued Accounting Guidance During the third quarter of fiscal year 2014, the FASB issued an accounting standard which will supersede existing revenue recogni tion 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 issued an accounting standard deferring the effective date of this accounting guidance by one year. Therefore, the accounting standard is ef fective for the Company in the first quarter of fiscal year 201 9 . Companies may use either a full retrospective or a modified 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 fourth quarter of fiscal year 2015, the FASB issued a new accounting standard intended to simplify the subsequent measurement of inventory, exc luding inventory accounted for under the last-in, first-out or the retail inventory methods. The new standard 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 margin. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal an d 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 does not expect the adoption of this guidance to have a significant impact on its Condensed Consolidated Financial Statements . During the second quarter of fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guid ance is effective for the Company beginning in the first quarter of fiscal year 2019 . Early application is permitted only for certain provisions, and the update must be applied by means of a cumulative-effect adjustment to the Condensed Consolidated B alanc e S heet 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 Cons olidated 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 beginning in the first quarter of fiscal year 2020. E arly application of the new st andard is permitted and must be adopted using a modified retrospective approach . The adoption of this standard will impact the Company’s Condensed Consolidated Balance Sheet. The Company is currently assessing any other impact s this new standard will have on its Condensed Consolidated Financial Statements. During the fourth quarter of fiscal year 2016, the FASB issued an accounting standard, which replaces the existing incurred loss impairment methodology with a methodology that reflects expected credit los ses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 and early adoption is permitted begin ning in the first quarter of fiscal year 2020. This guidance must be applied using a modified retrospective or prospective transition method, depending on the area covered by this accounting standard. The Company is currently assessing the impact this new standard may have on its Condensed Consolidated Financial Statements. During the fourth quarter of fiscal year 2016 , the FASB issued a new accounting standard to address the presentation of certain transactions within the statement of cash flows with the o bjective of reducing the existing diversity in practice. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 and early adoption is permitted. The Company is currently assessing the impact this new standard may have on its Condensed Co nsolidated Financial Statements . During the first quarter of fiscal year 2017 , the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory . The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 and early adoption is permitted. This guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Com pany is currently assessing the impact this new standard may have on its Condensed Consolidated Financial Statements. During the second quarter of fiscal year 2017, the FASB issued a new accounting standard that clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses . This guidance is effective for the Company beginning in the first quarter of fiscal year 2 019 and will be applied on a prospective basis. E arly application is permitted for certain transactions . The impact on the Company’ s Condensed Consolidated Financial Statements will depend on the facts and circumstances of an y specific future transactions . During t he second quarter of fiscal year 2017, the FASB issued a new accounting standard t o simplify how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the curre nt goodwill impairment test) to measure a goodwill impairment charge . Goodwill will be considered impaired when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. This guidance is effective for the Company beginning in t he first quarter of fiscal year 20 21 , with early application permitted. The guidance will be applied on a prospective basis. The Company is currently assessing the impact this new standard may have on its Condensed Consolidated Financial Statements. |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 28, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 15 . Income Taxes The effective tax rate differed from the U.S. federal statutory rate of 35 % during the three months and six months ended February 28, 2017 and February 29, 2016 primarily due to: (a) restructuring costs with minimal related tax benefit; ( b ) income in tax jurisdictions with lower statutory tax rates than the U.S.; ( c ) tax incentives granted to sites in Brazil, China, Malaysia, Singapore and Vietnam; and ( d ) losses in tax jurisdictions with existing valuation allowances. The m aterial tax incentives expire at various dates through fiscal year 2021. Such tax incentives are subject to conditions with which the Company expects to continue to comply . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Feb. 28, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16 . Subsequent Events The Company has evaluated subsequent events that occurred through the date of the filing of the Company’s second quarter of fiscal year 2017 Form 10-Q. No significant events occurr ed 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. |
Earnings Per Share and Divide24
Earnings Per Share and Dividends (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Earnings Per Share and Dividends [Abstract] | |
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 six months ended February 28, 2017 and February 29, 2016 (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 2017: October 20, 2016 $ 0.08 $ 15,248 November 15, 2016 December 1, 2016 January 26, 2017 $ 0.08 $ 15,051 February 15, 2017 March 1, 2017 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 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following (in thousands): February 28, 2017 August 31, 2016 Raw materials $ 1,458,375 $ 1,302,481 Work in process 658,689 675,867 Finished goods 424,557 510,485 Reserve for inventory obsolescence (43,484) (32,221) Total inventories, net $ 2,498,137 $ 2,456,612 |
Concentration of Risk and Seg26
Concentration of Risk and Segment Data (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
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 Six months ended February 28, February 29, February 28, February 29, 2017 2016 2017 2016 Net revenue EMS $ 2,682,811 $ 2,657,262 $ 5,386,100 $ 5,381,676 DMS 1,762,826 1,746,332 4,164,435 4,229,895 $ 4,445,637 $ 4,403,594 $ 9,550,535 $ 9,611,571 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment income and reconciliation of income before income tax EMS $ 98,089 $ 84,692 $ 187,635 $ 167,957 DMS 54,105 101,639 174,099 266,863 Total segment income $ 152,194 $ 186,331 $ 361,734 $ 434,820 Reconciling items: Amortization of intangibles 8,766 8,599 17,088 16,439 Stock-based compensation expense and related charges 15,318 20,268 15,027 45,060 Restructuring and related charges 44,927 2,535 80,829 3,888 Other expense 3,371 2,167 8,051 3,933 Interest income (2,289) (2,287) (4,744) (4,351) Interest expense 33,800 34,262 66,644 67,297 Income before income tax $ 48,301 $ 120,787 $ 178,839 $ 302,554 |
Reconciliation of Assets from Segment to Consolidated | February 28, 2017 August 31, 2016 Total assets EMS $ 2,797,581 $ 2,615,237 DMS 4,773,662 5,012,798 Other non-allocated assets 2,443,585 2,694,642 $ 10,014,828 $ 10,322,677 |
Notes Payable, Long-Term Debt27
Notes Payable, Long-Term Debt and Capital Lease Obligations (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
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 February 28, 2017 and August 31, 2016 are summarized below (in thousands): February 28, August 31, 2017 2016 8.250% Senior Notes due 2018 $ 399,029 $ 398,552 5.625% Senior Notes due 2020 396,658 396,212 4.700% Senior Notes due 2022 496,369 496,041 4.900% Senior Notes due 2023 298,450 298,329 Borrowings under loans 484,801 502,210 Capital lease obligations 27,562 28,478 Total notes payable, long-term debt and capital lease obligations 2,102,869 2,119,822 Less current installments of notes payable, long-term debt and capital lease obligations 47,324 45,810 Notes payable, long-term debt and capital lease obligations, less current installments $ 2,055,545 $ 2,074,012 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
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, 2016 to February 28, 2017 (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, 2016 $ 16,338 $ 7,784 $ (43,587) $ 941 $ (21,353) $ (39,877) Other comprehensive income (loss) before reclassifications (2,365) 10,656 ― ― 5,644 13,935 Amounts reclassified from AOCI 5,869 11,394 ― ― ― 17,263 Other comprehensive income 3,504 22,050 ― ― 5,644 31,198 Balance at February 28, 2017 $ 19,842 $ 29,834 $ (43,587) $ 941 $ (15,709) $ (8,679) |
Postretirement and Other Empl29
Postretirement and Other Employee Benefits (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
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 six months ended February 28, 2017 and February 29, 2016 (in thousands): Three months ended Six months ended February 28, February 29, February 28, February 29, 2017 2016 2017 2016 Service cost $ 253 $ 218 $ 512 $ 440 Interest cost 732 1,217 1,478 2,485 Expected long-term return on plan assets (1,109) (1,397) (2,238) (2,860) Recognized actuarial loss 467 260 943 526 Amortization of prior service credit (33) (34) (67) (69) Net periodic benefit cost $ 310 $ 264 $ 628 $ 522 |
Derivative Financial Instrume30
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
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 measured at fair value on a recurring bas is as of February 28, 2017 , aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands): Level 1 Level 2 Level 3 Total Assets: Forward foreign exchange contracts $ ― 11,503 ― $ 11,503 Liabilities: Forward foreign exchange contracts ― (9,945) ― (9,945) Total $ ― 1,558 ― $ 1,558 |
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 February 28, 2017 and August 31, 2016 (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 February 28, 2017 August 31, 2016 Location February 28, 2017 August 31, 2016 Derivatives designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 2,916 $ 420 expenses $ 2,012 $ 1,986 Derivatives not designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 8,587 $ 3,850 expenses $ 7,933 $ 10,801 |
Restructuring and Related Cha31
Restructuring and Related Charges (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
2013 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Significant Components and Activity in Restructuring Plan | The tables below set forth the signifi cant components and activity in the 2013 Restructuring Plan during the three months and six months ended February 28, 2017 and February 29, 2016 (in thousands): 2013 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ 15,204 $ 1,007 $ (53) $ (4,402) $ 11,756 Lease costs 21 ― ― ― 21 Asset write-off costs ― 70 (70) ― ― Other related costs 720 433 (3) (321) 829 Total $ 15,945 $ 1,510 $ (126) $ (4,723) $ 12,606 2013 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ 17,266 $ 2,497 $ (722) $ (7,285) $ 11,756 Lease costs 21 ― ― ― 21 Asset write-off costs ― 70 (70) ― ― Other related costs 740 783 (35) (659) 829 Total $ 18,027 $ 3,350 $ (827) $ (7,944) $ 12,606 2013 Restructuring Plan – Three Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2015 Charges Non-Cash Activity Payments February 29, 2016 Employee severance and benefit costs $ 20,775 $ 2,467 $ 586 $ (5,713) $ 18,115 Lease costs 64 ― ― ― 64 Other related costs 856 68 27 (80) 871 Total $ 21,695 $ 2,535 $ 613 $ (5,793) $ 19,050 2013 Restructuring Plan – Six Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments February 29, 2016 Employee severance and benefit costs $ 30,047 $ 3,545 $ (810) $ (14,667) $ 18,115 Lease costs 64 ― ― ― 64 Other related costs 846 343 (22) (296) 871 Total $ 30,957 $ 3,888 $ (832) $ (14,963) $ 19,050 |
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 six months ended February 28, 2017 and February 29, 2016 (in thousands): 2013 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ 15,388 $ 1,440 $ (55) $ (4,604) $ 12,169 DMS 557 70 (71) (119) 437 Total $ 15,945 $ 1,510 $ (126) $ (4,723) $ 12,606 2013 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ 17,338 3,280 (744) (7,705) $ 12,169 DMS 689 70 (83) (239) 437 Total $ 18,027 $ 3,350 $ (827) $ (7,944) $ 12,606 2013 Restructuring Plan – Three Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2015 Charges Non-Cash Activity Payments February 29, 2016 EMS $ 20,079 $ 1,757 $ 603 $ (5,324) $ 17,115 DMS 1,616 778 10 (469) 1,935 Total $ 21,695 $ 2,535 $ 613 $ (5,793) $ 19,050 2013 Restructuring Plan – Six Months Ended February 29, 2016 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2015 Charges Non-Cash Activity Payments February 29, 2016 EMS $ 28,834 $ 2,993 $ (823) $ (13,889) $ 17,115 DMS 1,960 1,014 (9) (1,030) 1,935 Other 163 (119) ― (44) ― Total $ 30,957 $ 3,888 $ (832) $ (14,963) $ 19,050 |
2017 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Significant Components and Activity in Restructuring Plan | The tables below set forth the significant components and activity in the 2017 Restructuring Plan during the three months and six months ended February 28, 2017 (in thousands): 2017 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ 9,894 $ 8,090 $ 15 $ (7,662) $ 10,337 Lease costs 2,524 1,158 ― (110) 3,572 Asset write-off costs ― 34,065 (34,065) ― ― Other related costs 89 104 ― (143) 50 Total $ 12,507 $ 43,417 $ (34,050) $ (7,915) $ 13,959 2017 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31,2016 Charges Non-Cash Activity Payments February 28, 2017 Employee severance and benefit costs $ ― $ 25,986 $ ― $ (15,649) $ 10,337 Lease costs ― 4,449 ― (877) 3,572 Asset write-off costs ― 46,705 (46,705) ― ― Other related costs ― 339 ― (289) 50 Total $ ― $ 77,479 $ (46,705) $ (16,815) $ 13,959 |
Significant Components and Activity in Restructuring Plan by Reportable Segment | The tables below set forth the significant components and activity in the 201 7 Restructuring Plan by reportable segment during the three months and six months ended February 28, 2017 (in thousands): 2017 Restructuring Plan – Three Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at November 30, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ 125 $ 2,536 $ (1,653) $ (537) $ 471 DMS 2,783 36,502 (32,172) (3,474) 3,639 Other 9,599 4,379 (225) (3,904) 9,849 Total $ 12,507 $ 43,417 $ (34,050) $ (7,915) $ 13,959 2017 Restructuring Plan – Six Months Ended February 28, 2017 Restructuring Asset Write-off Liability Balance at Related Charge and Other Cash Liability Balance at August 31, 2016 Charges Non-Cash Activity Payments February 28, 2017 EMS $ ― $ 8,057 $ (6,723) $ (863) $ 471 DMS ― 48,006 (39,749) (4,618) 3,639 Other ― 21,416 (233) (11,334) 9,849 Total $ ― $ 77,479 $ (46,705) $ (16,815) $ 13,959 |
Earnings Per Share and Divide32
Earnings Per Share and Dividends (Additional Information) (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
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 | 3,130 | 2,157,753 | 499,243 | 1,823,162 |
Earnings Per Share and Divide33
Earnings Per Share and Dividends (Dividends) (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Quarter One [Member] | ||
Dividends Payable [Line Items] | ||
Dividend Declaration Date | Oct. 20, 2016 | Oct. 14, 2015 |
Dividend per Share | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 15,248 | $ 15,906 |
Date of Record for Dividend Payment | Nov. 15, 2016 | Nov. 16, 2015 |
Dividend Cash Payment Date | Dec. 1, 2016 | Dec. 1, 2015 |
Quarter Two [Member] | ||
Dividends Payable [Line Items] | ||
Dividend Declaration Date | Jan. 26, 2017 | Jan. 21, 2016 |
Dividend per Share | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 15,051 | $ 15,947 |
Date of Record for Dividend Payment | Feb. 15, 2017 | Feb. 16, 2016 |
Dividend Cash Payment Date | Mar. 1, 2017 | Mar. 1, 2016 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Inventories [Abstract] | ||
Raw materials | $ 1,458,375 | $ 1,302,481 |
Work in process | 658,689 | 675,867 |
Finished goods | 424,557 | 510,485 |
Reserve for inventory obsolescence | (43,484) | (32,221) |
Total inventories | $ 2,498,137 | $ 2,456,612 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details 1) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognition of stock-based compensation expense and related charges | $ 15,318 | $ 20,268 | $ 15,027 | $ 45,060 |
Stock-based compensation expense, tax benefits | 200 | $ 300 | 300 | $ 600 |
Reversal of stock-based compensation expense | $ 21,000 | |||
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 | 1.8 | 2.6 | ||
Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units awarded | 0.6 | 1.3 | ||
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] | ||||
Award vesting period | 3 years | |||
Restricted stock units awarded | 0.4 | 0.4 | ||
Market Based Restricted Stock Units [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 200.00% | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation related to share-based compensation costs | $ 76,100 | $ 76,100 | ||
Unrecognized compensation related to share-based compensation costs, weighted average period of recognition | 1 year 6 months |
Concentration of Risk and Seg36
Concentration of Risk and Segment Data (Details 1) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017Country | Feb. 29, 2016 | Feb. 28, 2017CountryCustomerSegment | Feb. 29, 2016 | |
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 | 90.90% | 90.30% | 91.70% | 91.30% |
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 | 76 | |||
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 | 48.00% |
Concentration of Risk and Seg37
Concentration of Risk and Segment Data (Segment Revenue) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 4,445,637 | $ 4,403,594 | $ 9,550,535 | $ 9,611,571 |
EMS [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 2,682,811 | 2,657,262 | 5,386,100 | 5,381,676 |
DMS [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 1,762,826 | $ 1,746,332 | $ 4,164,435 | $ 4,229,895 |
Concentration of Risk and Seg38
Concentration of Risk and Segment Data (Segment Income) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Reconciling items: | ||||
Amortization of intangibles | $ 8,766 | $ 8,599 | $ 17,088 | $ 16,439 |
Stock-based compensation expense and related charges | 15,318 | 20,268 | 15,027 | 45,060 |
Restructuring and related charges | 44,927 | 2,535 | 80,829 | 3,888 |
Other expense | 3,371 | 2,167 | 8,051 | 3,933 |
Interest income | (2,289) | (2,287) | (4,744) | (4,351) |
Interest expense | 33,800 | 34,262 | 66,644 | 67,297 |
Income before income tax | 48,301 | 120,787 | 178,839 | 302,554 |
EMS [Member] | ||||
Reconciling items: | ||||
Income before income tax | 98,089 | 84,692 | 187,635 | 167,957 |
DMS [Member] | ||||
Reconciling items: | ||||
Income before income tax | 54,105 | 101,639 | 174,099 | 266,863 |
Operating Segments [Member] | ||||
Reconciling items: | ||||
Income before income tax | $ 152,194 | $ 186,331 | $ 361,734 | $ 434,820 |
Concentration of Risk and Seg39
Concentration of Risk and Segment Data (Segment Assets) (Details 4) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | $ 10,014,828 | $ 10,322,677 |
EMS [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 2,797,581 | 2,615,237 |
DMS [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 4,773,662 | 5,012,798 |
Other non-allocated assets | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | $ 2,443,585 | $ 2,694,642 |
Notes Payable, Long-Term Debt40
Notes Payable, Long-Term Debt and Capital Lease Obligations (Details 1) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Debt Instrument [Line Items] | ||
Borrowings under loans | $ 484,801 | $ 502,210 |
Capital lease obligations | 27,562 | 28,478 |
Total notes payable, long-term debt and capital lease obligations | 2,102,869 | 2,119,822 |
Less current installments of notes payable, long-term debt and capital lease obligations | 47,324 | 45,810 |
Notes payable, long-term debt and capital lease obligations, less current installments | 2,055,545 | 2,074,012 |
8.250% Senior Notes Due 2018 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 399,029 | 398,552 |
5.625% Senior Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 396,658 | 396,212 |
4.700% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Senior Notes | 496,369 | 496,041 |
4.900% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 298,450 | $ 298,329 |
Notes Payable, Long-Term Debt41
Notes Payable, Long-Term Debt and Capital Lease Obligations (Details 2) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Notes Payable, Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Total notes payable, long-term debt and capital lease obligations | $ 2,102,869 | $ 2,119,822 |
Less current installments of notes payable, long-term debt and capital lease obligations | 47,324 | 45,810 |
Notes payable, long-term debt and capital lease obligations, less current installments | $ 2,055,545 | $ 2,074,012 |
Notes Payable, Long-Term Debt42
Notes Payable, Long-Term Debt and Capital Lease Obligations (Additional Information) (Details 3) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt obligation utilized | $ 484,801 | $ 502,210 |
Total assets | 10,014,828 | 10,322,677 |
Total liabilities | $ 7,587,730 | $ 7,865,180 |
Notes Payable, Long-Term Debt43
Notes Payable, Long-Term Debt and Capital Lease Obligations (Fair Value) (Details 4) | Feb. 28, 2017USD ($) |
8.250% Senior Notes Due 2018 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | $ 425,600,000 |
5.625% Senior Notes Due 2020 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | 433,400,000 |
4.700% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | 524,600,000 |
4.900% Senior Notes due 2023 | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | $ 307,900,000 |
Trade Accounts Receivable Sec44
Trade Accounts Receivable Securitization and Sale Programs (Details) ¥ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2017USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2017USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2017CNY (¥) | Feb. 28, 2017USD ($) | |
Trade Accounts Receivable Sale Programs | ||||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||||
Trade accounts receivable sold | $ 700 | $ 900 | $ 1,700 | $ 2,300 | ||
Cash proceeds for the sale of trade accounts receivable | 700 | 900 | 1,700 | 2,300 | ||
Pretax losses on sale of trade accounts receivable | 1.4 | 1 | $ 2.6 | 2 | ||
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 | 2,200 | 1,900 | $ 4,500 | 3,800 | ||
Cash proceeds for the sale of trade accounts receivable | 1,700 | 1,400 | 4,000 | 3,400 | ||
Cash proceeds from new transfers | 3 | 3 | ||||
Deferred purchases price receivable | 437.7 | 437.7 | $ 467.2 | |||
Pretax losses on sale of trade accounts receivable | $ 2.3 | $ 1.2 | $ 4.1 | $ 2.2 | ||
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 | |||||
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 | 400 | |||||
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 | 275 | |||||
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 | 400 | |||||
650.0 Million Dollar Trade Accounts Receivable Sale Program | ||||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||||
Expiration date | Aug. 31, 2017 | |||||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | 650 | |||||
Minimum number of days notice required to cancel receivable sale agreements | 15 days | |||||
150.0 Million Dollar Trade Accounts Receivable Sale Program | ||||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||||
Expiration date | Aug. 31, 2017 | |||||
150.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | ||||||
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 | 150 | |||||
800.0 Million CNY Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | ||||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||||
Expiration date | Feb. 15, 2018 | |||||
Maximum net cash proceeds available at any one time under asset-backed securitization program and sales program | ¥ | ¥ 800 | |||||
100.0 Million Dollar Trade Accounts Receivable Sale Program | ||||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||||
Expiration date | Oct. 31, 2017 | |||||
100.0 Million Dollar Trade Accounts Receivable Sale Program | Trade Accounts Receivable Sale Programs | ||||||
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 | $ 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 Comprehensi45
Accumulated Other Comprehensive Income (Summary of Changes in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (39,877) | |||
Other comprehensive income (loss) before reclassifications | 13,935 | |||
Amounts reclassified from AOCI | 17,263 | |||
Total other comprehensive income (loss) | $ 44,236 | $ (9,479) | 31,198 | $ (18,157) |
Ending balance | (8,679) | (8,679) | ||
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 16,338 | |||
Other comprehensive income (loss) before reclassifications | (2,365) | |||
Amounts reclassified from AOCI | 5,869 | |||
Total other comprehensive income (loss) | 3,504 | |||
Ending balance | 19,842 | 19,842 | ||
Derivative instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 7,784 | |||
Other comprehensive income (loss) before reclassifications | 10,656 | |||
Amounts reclassified from AOCI | 11,394 | |||
Total other comprehensive income (loss) | 22,050 | |||
Ending balance | 29,834 | 29,834 | ||
Actuarial loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (43,587) | |||
Ending balance | (43,587) | (43,587) | ||
Prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 941 | |||
Ending balance | 941 | 941 | ||
Unrealized (loss) gain on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (21,353) | |||
Other comprehensive income (loss) before reclassifications | 5,644 | |||
Total other comprehensive income (loss) | 5,644 | |||
Ending balance | $ (15,709) | $ (15,709) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Additional Information) (Details 2) | 6 Months Ended |
Feb. 28, 2017USD ($) | |
Accumulated Other Comprehensive Income [Abstract] | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $ 0 |
Postretirement and Other Empl47
Postretirement and Other Employee Benefits (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Postretirement and Other Employee Benefits [Abstract] | ||||
Service cost | $ 253 | $ 218 | $ 512 | $ 440 |
Interest cost | 732 | 1,217 | 1,478 | 2,485 |
Expected long-term return on plan assets | (1,109) | (1,397) | (2,238) | (2,860) |
Recognized actuarial loss | 467 | 260 | 943 | 526 |
Amortization of prior service cost | (33) | (34) | (67) | (69) |
Net periodic benefit cost | $ 310 | $ 264 | $ 628 | $ 522 |
Postretirement and Other Empl48
Postretirement and Other Employee Benefits (Details 2) $ in Millions | 6 Months Ended |
Feb. 28, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions to defined benefit pension plans | $ 1.5 |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected cash contributions to funded pension plans during the fiscal year ended August 31, 2017 | 2.6 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected cash contributions to funded pension plans during the fiscal year ended August 31, 2017 | $ 3.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Feb. 28, 2017USD ($) |
Commitments and Contingencies [Abstract] | |
Potential additional income tax payment due | $ 28.6 |
Derivative Financial Instrume50
Derivative Financial Instruments and Hedging Activities (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2007 | Aug. 31, 2016 | Feb. 28, 2017 | |
Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding | $ 1,700 | $ 1,600 | |
Forward foreign exchange contracts | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding | 323.3 | $ 207.7 | |
8.250% Senior Notes Due 2018 | Interest rate swap | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding | $ 400 | ||
Payment to settle interest rate swaps | $ 43.1 | ||
Expiry date | Mar. 15, 2018 | ||
Anticipated Debt Issuance [Member] | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding | $ 200 | ||
Expiry date | Mar. 15, 2018 | ||
Term Loan Facility [Member] | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount outstanding | $ 200 | ||
Expiry date | Jun. 30, 2019 |
Derivative Financial Instrume51
Derivative Financial Instruments and Hedging Activities (Fair Value of Assets and Liabilities Related to Recurring Foreign Forward Exchange Contracts) (Details 2) - Recurring $ in Thousands | Feb. 28, 2017USD ($) |
Assets: | |
Forward foreign exchange contracts, Assets | $ 11,503 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (9,945) |
Total | 1,558 |
Level 2 | |
Assets: | |
Forward foreign exchange contracts, Assets | 11,503 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (9,945) |
Total | $ 1,558 |
Derivative Financial Instrume52
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 | Feb. 28, 2017 | Aug. 31, 2016 |
Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | $ 2,012 | $ 1,986 |
Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | 2,916 | 420 |
Not Designated as Hedging Instrument | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | 7,933 | 10,801 |
Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | $ 8,587 | $ 3,850 |
Restructuring and Related Cha53
Restructuring and Related Charges (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 44,927 | $ 2,535 | $ 80,829 | $ 3,888 |
2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,510 | 2,535 | 3,350 | 3,888 |
Total pre-tax restructuring and other related costs expected to be recognized | 179,000 | 179,000 | ||
Restructuring related charges to date | 165,200 | 165,200 | ||
2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 43,417 | 77,479 | ||
Total pre-tax restructuring and other related costs expected to be recognized | 195,000 | 195,000 | ||
Restructuring related charges to date | 77,479 | 77,479 | ||
EMS [Member] | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,440 | 1,757 | 3,280 | 2,993 |
Restructuring related charges to date | 127,400 | 127,400 | ||
EMS [Member] | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 2,536 | 8,057 | ||
Restructuring related charges to date | 8,057 | 8,057 | ||
DMS [Member] | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 70 | 778 | 70 | 1,014 |
Restructuring related charges to date | 28,900 | 28,900 | ||
DMS [Member] | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 36,502 | 48,006 | ||
Restructuring related charges to date | 48,006 | 48,006 | ||
Other | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | (119) | |||
Restructuring related charges to date | 8,900 | 8,900 | ||
Other | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 4,379 | 21,416 | ||
Restructuring related charges to date | 21,416 | 21,416 | ||
Restructuring Charges Cash | 2013 Restructuring Plan | ||||
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] | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 13,800 | 13,800 | ||
Charges Not Yet Recognized [Member] | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 117,500 | 117,500 | ||
Employee Severance | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,007 | 2,467 | 2,497 | 3,545 |
Employee Severance | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 8,090 | 25,986 | ||
Employee Severance | Minimum | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 55,000 | 55,000 | ||
Employee Severance | Maximum | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 75,000 | 75,000 | ||
Employee Severance | Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 2,497 | 3,545 | ||
Employee Severance | Restructuring Charges Cash | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,007 | 2,467 | 2,497 | 3,545 |
Employee Severance | Restructuring Charges Cash | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 8,090 | 25,986 | ||
Asset Write-Off Cost | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 70 | 70 | ||
Asset Write-Off Cost | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 34,065 | 46,705 | ||
Asset Write-Off Cost | Minimum | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 110,000 | 110,000 | ||
Asset Write-Off Cost | Maximum | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pre-tax restructuring and other related costs expected to be recognized | 130,000 | 130,000 | ||
Lease Costs | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0 | |||
Lease Costs | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,158 | 4,449 | ||
Lease Costs | Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0 | 0 | ||
Lease Costs | Restructuring Charges Cash | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,158 | 4,449 | ||
Other Related Costs | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 433 | 68 | 783 | 343 |
Other Related Costs | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 104 | 339 | ||
Total pre-tax restructuring and other related costs expected to be recognized | 10,000 | 10,000 | ||
Other Related Costs | Restructuring Charges Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 783 | 343 | ||
Other Related Costs | Restructuring Charges Cash | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 433 | $ 68 | 783 | $ 343 |
Other Related Costs | Restructuring Charges Cash | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 104 | $ 339 |
Restructuring and Related Cha54
Restructuring and Related Charges (Significant Components and Activity) (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Related Charges | $ 44,927,000 | $ 2,535,000 | $ 80,829,000 | $ 3,888,000 |
2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 15,945,000 | 21,695,000 | 18,027,000 | 30,957,000 |
Restructuring Related Charges | 1,510,000 | 2,535,000 | 3,350,000 | 3,888,000 |
Asset Write off Charge and Other Non- Cash Activity | (126,000) | 613,000 | (827,000) | (832,000) |
Cash Payments | (4,723,000) | (5,793,000) | (7,944,000) | (14,963,000) |
Liability, Ending Balance | 12,606,000 | 19,050,000 | 12,606,000 | 19,050,000 |
2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 12,507,000 | |||
Restructuring Related Charges | 43,417,000 | 77,479,000 | ||
Asset Write off Charge and Other Non- Cash Activity | (34,050,000) | (46,705,000) | ||
Cash Payments | (7,915,000) | (16,815,000) | ||
Liability, Ending Balance | 13,959,000 | 13,959,000 | ||
Employee Severance | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 15,204,000 | 20,775,000 | 17,266,000 | 30,047,000 |
Restructuring Related Charges | 1,007,000 | 2,467,000 | 2,497,000 | 3,545,000 |
Asset Write off Charge and Other Non- Cash Activity | (53,000) | 586,000 | (722,000) | (810,000) |
Cash Payments | (4,402,000) | (5,713,000) | (7,285,000) | (14,667,000) |
Liability, Ending Balance | 11,756,000 | 18,115,000 | 11,756,000 | 18,115,000 |
Employee Severance | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 9,894,000 | |||
Restructuring Related Charges | 8,090,000 | 25,986,000 | ||
Asset Write off Charge and Other Non- Cash Activity | 15,000 | |||
Cash Payments | (7,662,000) | (15,649,000) | ||
Liability, Ending Balance | 10,337,000 | 10,337,000 | ||
Lease Costs | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 21,000 | 64,000 | 21,000 | 64,000 |
Restructuring Related Charges | 0 | |||
Asset Write off Charge and Other Non- Cash Activity | 0 | |||
Cash Payments | 0 | |||
Liability, Ending Balance | 21,000 | 64,000 | 21,000 | 64,000 |
Lease Costs | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 2,524,000 | |||
Restructuring Related Charges | 1,158,000 | 4,449,000 | ||
Cash Payments | (110,000) | (877,000) | ||
Liability, Ending Balance | 3,572,000 | 3,572,000 | ||
Asset Write-Off Cost | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 0 | 0 | 0 | |
Restructuring Related Charges | 70,000 | 70,000 | ||
Asset Write off Charge and Other Non- Cash Activity | (70,000) | (70,000) | ||
Liability, Ending Balance | 0 | 0 | ||
Asset Write-Off Cost | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Related Charges | 34,065,000 | 46,705,000 | ||
Asset Write off Charge and Other Non- Cash Activity | (34,065,000) | (46,705,000) | ||
Other Related Costs | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 720,000 | 856,000 | 740,000 | 846,000 |
Restructuring Related Charges | 433,000 | 68,000 | 783,000 | 343,000 |
Asset Write off Charge and Other Non- Cash Activity | (3,000) | 27,000 | (35,000) | 22,000 |
Cash Payments | (321,000) | (80,000) | (659,000) | 296,000 |
Liability, Ending Balance | 829,000 | $ 871,000 | 829,000 | $ 871,000 |
Other Related Costs | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 89,000 | |||
Restructuring Related Charges | 104,000 | 339,000 | ||
Cash Payments | (143,000) | (289,000) | ||
Liability, Ending Balance | $ 50,000 | $ 50,000 |
Restructuring and Related Cha55
Restructuring and Related Charges (Significant Components and Activity by Reportable Segment) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Related Charges | $ 44,927 | $ 2,535 | $ 80,829 | $ 3,888 |
2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 15,945 | 21,695 | 18,027 | 30,957 |
Restructuring Related Charges | 1,510 | 2,535 | 3,350 | 3,888 |
Asset Write off Charge and Other Non- Cash Activity | (126) | 613 | (827) | (832) |
Cash Payments | (4,723) | (5,793) | (7,944) | (14,963) |
Liability, Ending Balance | 12,606 | 19,050 | 12,606 | 19,050 |
2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 12,507 | |||
Restructuring Related Charges | 43,417 | 77,479 | ||
Asset Write off Charge and Other Non- Cash Activity | (34,050) | (46,705) | ||
Cash Payments | (7,915) | (16,815) | ||
Liability, Ending Balance | 13,959 | 13,959 | ||
EMS [Member] | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 15,388 | 20,079 | 17,338 | 28,834 |
Restructuring Related Charges | 1,440 | 1,757 | 3,280 | 2,993 |
Asset Write off Charge and Other Non- Cash Activity | (55) | 603 | (744) | (823) |
Cash Payments | (4,604) | (5,324) | (7,705) | (13,889) |
Liability, Ending Balance | 12,169 | 17,115 | 12,169 | 17,115 |
EMS [Member] | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 125 | |||
Restructuring Related Charges | 2,536 | 8,057 | ||
Asset Write off Charge and Other Non- Cash Activity | (1,653) | (6,723) | ||
Cash Payments | (537) | (863) | ||
Liability, Ending Balance | 471 | 471 | ||
DMS [Member] | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 557 | 1,616 | 689 | 1,960 |
Restructuring Related Charges | 70 | 778 | 70 | 1,014 |
Asset Write off Charge and Other Non- Cash Activity | (71) | 10 | (83) | (9) |
Cash Payments | (119) | (469) | (239) | (1,030) |
Liability, Ending Balance | 437 | $ 1,935 | 437 | 1,935 |
DMS [Member] | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 2,783 | |||
Restructuring Related Charges | 36,502 | 48,006 | ||
Asset Write off Charge and Other Non- Cash Activity | (32,172) | (39,749) | ||
Cash Payments | (3,474) | (4,618) | ||
Liability, Ending Balance | 3,639 | 3,639 | ||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Write off Charge and Other Non- Cash Activity | 0 | |||
Other | 2013 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 0 | 163 | ||
Restructuring Related Charges | (119) | |||
Cash Payments | $ (44) | |||
Other | 2017 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability, Beginning Balance | 9,599 | |||
Restructuring Related Charges | 4,379 | 21,416 | ||
Asset Write off Charge and Other Non- Cash Activity | (225) | (233) | ||
Cash Payments | (3,904) | (11,334) | ||
Liability, Ending Balance | $ 9,849 | $ 9,849 |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Millions | 12 Months Ended |
Aug. 31, 2016USD ($) | |
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 |
Intangible assets acquired | 31.4 |
Liabilities assumed | 19.9 |
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 |
Real property | 33.3 |
Assets acquired | 406.4 |
Property, plant and equipment acquired | 276.8 |
Intangible assets and goodwill acquired | 129.6 |
Liabilities assumed | 230 |
Deferred tax liabilities assumed | $ 3.9 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended |
Feb. 28, 2017 | |
Income Taxes [Abstract] | |
U.S federal statutory rate | 35.00% |