Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2017 | Jan. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | JBL | |
Entity Registrant Name | JABIL 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 | 175,235,660 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 746,258 | $ 1,189,919 |
Accounts receivable, net of allowance for doubtful accounts of $13,787 as of November 30, 2017 and $14,134 as of August 31, 2017 | 1,534,754 | 1,397,424 |
Inventories, net of reserve for excess and obsolete inventory | 3,283,215 | 2,942,083 |
Prepaid expenses and other current assets | 1,357,901 | 1,097,257 |
Total current assets | 6,922,128 | 6,626,683 |
Property, plant and equipment, net of accumulated depreciation of $3,273,964 as of November 30, 2017 and $3,125,390 as of August 31, 2017 | 3,289,754 | 3,228,678 |
Goodwill | 630,539 | 608,184 |
Intangible assets, net of accumulated amortization of $275,565 as of November 30, 2017 and $269,212 as of August 31, 2017 | 300,950 | 284,596 |
Deferred income taxes | 216,830 | 205,722 |
Other assets | 159,364 | 142,132 |
Total assets | 11,519,565 | 11,095,995 |
Current liabilities: | ||
Current installments of notes payable, long-term debt and capital lease obligations | 427,019 | 445,498 |
Accounts payable | 4,803,194 | 4,257,623 |
Accrued expenses | 2,019,511 | 2,167,472 |
Total current liabilities | 7,249,724 | 6,870,593 |
Notes payable, long-term debt and capital lease obligations, less current installments | 1,693,433 | 1,632,592 |
Other liabilities | 75,627 | 74,237 |
Income tax liabilities | 106,488 | 100,902 |
Deferred income taxes | 49,601 | 49,327 |
Total liabilities | 9,174,873 | 8,727,651 |
Commitments and contingencies | ||
Jabil Inc. stockholders' equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and outstanding | ||
Common stock, $0.001 par value, authorized 500,000,000 shares; 255,770,343 and 253,266,684 shares issued and 176,305,660 and 177,727,653 shares outstanding at November 30, 2017 and August 31, 2017, respectively | 256 | 253 |
Additional paid-in capital | 2,149,173 | 2,104,203 |
Retained earnings | 1,779,335 | 1,730,893 |
Accumulated other comprehensive income | 51,484 | 54,620 |
Treasury stock at cost, 79,464,683 and 75,539,031 shares at November 30, 2017 and August 31, 2017, respectively | (1,650,509) | (1,536,455) |
Total Jabil Inc. stockholders' equity | 2,329,739 | 2,353,514 |
Noncontrolling interests | 14,953 | 14,830 |
Total equity | 2,344,692 | 2,368,344 |
Total liabilities and equity | $ 11,519,565 | $ 11,095,995 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 13,787 | $ 14,134 |
Property, plant and equipment, accumulated depreciation | 3,273,964 | 3,125,390 |
Intangible assets, accumulated amortization | $ 275,565 | $ 269,212 |
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 | 255,770,343 | 253,266,684 |
Common stock, shares outstanding | 176,305,660 | 177,727,653 |
Treasury stock, shares | 79,464,683 | 75,539,031 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Income Statement [Abstract] | |||
Net revenue | $ 5,585,532 | $ 5,104,898 | |
Cost of revenue | 5,116,247 | 4,673,392 | |
Gross profit | 469,285 | 431,506 | |
Operating expenses: | |||
Selling, general and administrative | 293,055 | 214,052 | |
Research and development | 9,109 | 7,623 | |
Amortization of intangibles | 9,979 | 8,322 | |
Restructuring and related charges | [1],[2] | 11,388 | 35,902 |
Operating income | 145,754 | 165,607 | |
Other expense | 5,882 | 4,680 | |
Interest income | (3,813) | (2,455) | |
Interest expense | 36,246 | 32,844 | |
Income before income tax | 107,439 | 130,538 | |
Income tax expense | 43,520 | 43,837 | |
Net income | 63,919 | 86,701 | |
Net income (loss) attributable to noncontrolling interests, net of tax | 124 | (1,326) | |
Net income attributable to Jabil Inc. | $ 63,795 | $ 88,027 | |
Basic: | |||
Net income | $ 0.36 | $ 0.48 | |
Diluted: | |||
Net income | $ 0.35 | $ 0.47 | |
Weighted average shares outstanding: | |||
Basic | 176,936 | 185,292 | |
Diluted | 180,203 | 187,856 | |
Cash dividends declared per share | $ 0.08 | $ 0.08 | |
[1] | (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. | ||
[2] | (2) Primarily relates to the 2017 Restructuring Plan. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 63,919 | $ 86,701 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (3,801) | (23,619) |
Changes in fair value of derivative instruments, net of tax | 7,744 | 8,234 |
Reclassification of net (gains) losses realized and included in net income related to derivative instruments, net of tax | (5,191) | 3,597 |
Unrealized loss on available for sale securities, net of tax | (1,465) | (1,250) |
Actuarial loss, net of tax | (423) | |
Other comprehensive income (loss) | (3,136) | (13,038) |
Comprehensive income | 60,783 | 73,663 |
Comprehensive income (loss) attributable to noncontrolling interests | 124 | (1,326) |
Comprehensive income attributable to Jabil Inc. | $ 60,659 | $ 74,989 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 3 months ended Nov. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interests |
Beginning Balance at Aug. 31, 2017 | $ 2,368,344 | $ 253 | $ 2,104,203 | $ 1,730,893 | $ 54,620 | $ (1,536,455) | $ 14,830 |
Beginning Balance (in shares) at Aug. 31, 2017 | 177,727,653 | 177,727,653 | |||||
Shares issued upon exercise of stock options (in shares) | 29,534 | ||||||
Vesting of restricted stock awards | $ 3 | (3) | |||||
Vesting of restricted stock awards (in shares) | 2,474,125 | ||||||
Purchases of treasury stock under employee stock plans | $ (20,745) | (20,745) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (724,323) | ||||||
Treasury shares purchased | (93,309) | (93,309) | |||||
Treasury shares purchased (in shares) | (3,201,329) | ||||||
Recognition of stock-based compensation | 44,973 | 44,973 | |||||
Declared dividends | (15,353) | (15,353) | |||||
Comprehensive income | 60,783 | 63,795 | (3,136) | 124 | |||
Foreign currency adjustments attributable to noncontrolling interests | (1) | (1) | |||||
Ending Balance at Nov. 30, 2017 | $ 2,344,692 | $ 256 | $ 2,149,173 | $ 1,779,335 | $ 51,484 | $ (1,650,509) | $ 14,953 |
Ending Balance (in shares) at Nov. 30, 2017 | 176,305,660 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 63,919 | $ 86,701 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 194,633 | 188,901 |
Restructuring and related charges | 6,812 | 12,640 |
Recognition of stock-based compensation expense and related charges | 44,974 | (291) |
Deferred income taxes | (11,507) | (16,495) |
Other, net | 3,812 | 4,421 |
Change in operating assets and liabilities, exclusive of net assets acquired: | ||
Accounts receivable | (125,627) | (170,932) |
Inventories | (320,814) | (32,520) |
Prepaid expenses and other current assets | (250,857) | (218,379) |
Other assets | (13,549) | (34,987) |
Accounts payable, accrued expenses and other liabilities | 354,617 | 332,881 |
Net cash (used in) provided by operating activities | (53,587) | 151,940 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (218,617) | (163,866) |
Proceeds and advances from sale of property, plant and equipment | 20,330 | 1,472 |
Cash paid for business and intangible asset acquisitions, net of cash | (95,858) | |
Other, net | (1,067) | (2,033) |
Net cash used in investing activities | (295,212) | (164,427) |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 1,792,000 | 1,676,000 |
Payments toward debt agreements | (1,748,599) | (1,685,151) |
Payments to acquire treasury stock | (93,309) | (114,165) |
Dividends paid to stockholders | (16,231) | (16,059) |
Treasury stock minimum tax withholding related to vesting of restricted stock | (20,745) | (9,119) |
Other, net | (3,912) | |
Net cash used in financing activities | (90,796) | (148,494) |
Effect of exchange rate changes on cash and cash equivalents | (4,066) | (3,663) |
Net decrease in cash and cash equivalents | (443,661) | (164,644) |
Cash and cash equivalents at beginning of period | 1,189,919 | 912,059 |
Cash and cash equivalents at end of period | $ 746,258 | $ 747,415 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Nov. 30, 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 for complet e financial statements. In the opinion of management, all adjustments ( consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes inc luded in the Annual Report on Form 10-K of Jabil Inc. (the “Company”) for the fiscal year ended August 31, 2017 . Results for the three month s ended November 30, 2017 are not necessarily an indication of the results that may be e xpected for the full fiscal year ending August 31, 2018 . |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 3 Months Ended |
Nov. 30, 2017 | |
Earnings Per Share and Dividends [Abstract] | |
Earnings Per Share And Dividends | 2 . Earnings Per Share and Dividends Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to Jabil Inc. by the weighted average number of common shares outstanding during the period. The Company’s diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities. The difference between the weighted average number of basic shares outstanding and the weighted average number of dilut ed shares outstanding is primarily due to dilutive unvested restricted stock awards and dilutive stock appreciation rights . Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be antidilutive. Performance-based restricted stock awards are considered dilutive when the related performance criterion have been met assuming the end of the reporting period represents the end of the performance period. All potential shares of common stock are antidilutive in periods of net loss. Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended November 30, 2017 November 30, 2016 Stock appreciation rights ― 1,406 Restricted stock awards 2,549 5,028 Dividends The following table sets forth cash dividends declared by the Company to common stockholders during the three months ended November 30, 2017 and 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 2018: October 19, 2017 $ 0.08 $ 14,588 November 15, 2017 December 1, 2017 Fiscal Year 2017: October 20, 2016 $ 0.08 $ 15,248 November 15, 2016 December 1, 2016 |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2017 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following (in thousands): November 30, 2017 August 31, 2017 Raw materials $ 1,739,411 $ 1,574,241 Work in process 919,036 822,628 Finished goods 676,352 591,227 Reserve for excess and obsolete inventory (51,584) (46,013) Inventories, net $ 3,283,215 $ 2,942,083 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Nov. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-based Compensation | 4 . Stock-Based Compensation The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Three months ended November 30, 2017 November 30, 2016 Restricted stock and stock appreciation rights $ 43,507 $ (2,041) Employee stock purchase plan 1,700 1,750 Other (1) 7,538 ― Total $ 52,745 $ (291) (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. As of November 30, 2017 , the shares available to be issued under the 2011 Stock Award and Incentive Plan were 12,327,622 . Restricted Stock Awards Certain key employees have been granted time-based, performance-based and market-based restricted stock unit awards. The time-based restricted stock units generally vest on a graded vesting schedule over three years. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 150 %, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200 %, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s stock performance in relation to the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index. During the three months ended November 30, 2017 and 2016 , the Company awarded approximately 1.3 million and 1.0 million time-based restricted stock units, respectively, 0.4 million and 0.6 million performance-based restricted stock units, respectively and 0.4 million and 0.4 million market-based stock units, respectively. On October 6, 2017, the Company’s Compensati on Committee approved the modification of vesting criteria for certain performance-based restricted stock awards granted in fiscal year 2015. As a result of the modification, 0.8 million awards vested during the first quarter of fiscal year 2018, which res ulted in approximately $ 24.9 million of stock-based compensation expense recognized for the three months ended November 30, 2017. The following represents the stock-based compensation information for the period indicated (in thousands): Three months ended November 30, 2017 Unrecognized stock-based compensation expense - restricted stock $ 81,829 Remaining weighted-average period for restricted stock expense 1.5 years Share R epurchases In July 2017, the Company’s Board of Directors authorized the repurchase of up to $ 450.0 million of the Company’s common stock (the “2017 Share Repurchase Program”). The 2017 Share Repurchase Program expires on August 31, 2018 . A s of November 30, 2017 , 3.2 million shares had been repurchased for $ 93.2 million and $ 356. 7 million remains available under the 2017 Share Repurchase Program . |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 3 Months Ended |
Nov. 30, 2017 | |
Concentration of Risk and Segment Data [Abstract] | |
Concentration of Risk and Segment Data | 5 . Concentration of Risk and Segment Data Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the three months ended November 30, 2017 , the Company’s five largest custom ers accounted for approximately 51 % of its net revenue and 74 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. Segment Data Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses . Segment income does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and rela ted charges, goodwill impairment charges, business interruption and impairment charges , net , income (loss) from discontinued operations, gain (loss) on sale of discontin ued 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 pr operty, 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 approxima te those at which we would transact with third parties . The following tables set forth operating segment information (in thousands): Three months ended November 30, 2017 November 30, 2016 Net revenue EMS $ 2,862,060 $ 2,703,290 DMS 2,723,472 2,401,608 $ 5,585,532 $ 5,104,898 Segment income and reconciliation of income before income tax EMS $ 85,710 $ 89,546 DMS 141,510 119,994 Total segment income $ 227,220 $ 209,540 Reconciling items: Amortization of intangibles (9,979) (8,322) Stock-based compensation expense and related charges (52,745) 291 Restructuring and related charges (11,388) (35,902) Business interruption and impairment charges, net (7,354) ― Other expense (5,882) (4,680) Interest income 3,813 2,455 Interest expense (36,246) (32,844) Income before income tax $ 107,439 $ 130,538 November 30, 2017 August 31, 2017 Total assets EMS $ 3,156,266 $ 2,778,820 DMS 5,490,658 5,290,468 Other non-allocated assets 2,872,641 3,026,707 $ 11,519,565 $ 11,095,995 As of November 30, 2017 , the Company operated in 29 countries worldwide. Sales to unaffiliated customers are based on the Company’s location that maintains the customer relationship and transacts the external sale. Total foreign net revenue represented 92.3 % of net revenue during both the three months ended November 30, 2017 and 2016 . |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Capital Lease Obligations | 3 Months Ended |
Nov. 30, 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 as of November 30, 2017 and August 31, 2017 are summarized below (in thousands): Maturity November 30, August 31, Date 2017 2017 8.250% Senior Notes (1)(2) March 15, 2018 $ 399,745 $ 399,506 5.625% Senior Notes (1)(2) Dec. 15, 2020 397,326 397,104 4.700% Senior Notes (1)(2) Sept. 15, 2022 496,860 496,696 4.900% Senior Notes (1) July 14, 2023 298,632 298,571 Borrowings under credit facilities (3) Nov. 8, 2022 ― ― Borrowings under loans (3) Nov. 8, 2022 500,360 458,395 Capital lease obligations 27,529 27,818 Total notes payable, long-term debt and capital lease obligations 2,120,452 2,078,090 Less current installments of notes payable, long-term debt and capital lease obligations 427,019 445,498 Notes payable, long-term debt and capital lease obligations, less current installments $ 1,693,433 $ 1,632,592 ( 1 ) The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs. ( 2 ) The S enior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. ( 3 ) On November 8, 2017, the Company entered into an amended and restated senior unsecured five-year credit agreement. The credit agreement provides for: (i) the Revolving Credit Facility in the initial amount of $ 1. 8 b illion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2. 3 billion and (ii) a $ 500.0 million Term Loan Facility (collectively the “Credit Facility”). The Credit Facility expires on November 8, 2022. The Revolving Credit Faci lity is subject to two whole or partial one-year extensions, at the lender s’ discretion. Interest and fees on the Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poo r’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the three months ended November 30, 2017 , the interest rate s on the Revolving Credit Facility ranged from 2.4 % to 4.4 % and the interest rates on the Term Loan Facility ranged from 2.6 % to 2.7 %. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000 % to 0. 575 % above the base rate or 0.975 % to 1. 575 % above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125 % to 0.875 % above the base rate or 1.125 % to 1.875 % above the Eurocurrency rate . T he base rate represents the greatest of : (i) Citibank, N.A.’s base rate, (ii) 0.50 % above the federal funds rate, and (iii) 1.0 % above one-month LIBOR, but not less than zero . T he Eurocu rrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of November 30, 2017 , the Company has $ 2.2 billion in available unu sed borrowing capacity under its revolving credit facilities . Debt Covenants Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the Revolving Credit Facility and 4.900% Senior Notes contain debt leverage and interest coverage covenants. The Company is also subject to a covenant requiring the repurchase of the 8.250%, 5.625%, or 4.700% Senior Notes upon a c hange of control. As of November 30, 2017 and 2016 , the Company was in compliance with its debt covenants. Fair Value The estimated fair values of the Company's publicly traded debt, including the 8.250 %, 5.625 % and 4.700 % senior notes, we re approximately $ 405.6 million , $ 431.2 million and $ 525.3 million , respectively, as of November 30, 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 $ 311.7 million , as of November 30, 2017 . This fair value estim ate is based on the Company's indicative borrowing cost derived from discounted cash flows (Level 3 criteria). The carrying amounts of borro wings under credit facilities and under loans approximate fair value as interest rates on these instruments approximate current market rates. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 3 Months Ended |
Nov. 30, 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 five 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 ended November 30, 2017 and 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 th e 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 . 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 and its foreign asset-backed securitization program (collectively referred to herein as the “asset-backed securitization programs”) t o special purpose entities, which in turn sell 100 % of the receivables to : ( i ) conduits administered by unaffiliated financial institutions for the North American asset-backed securitization program and (ii) to an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution for the foreign asset-backed securitization program . Any portion of the purchase price for the receivables not paid in cash upon the sale occurring is recorded as a deferred purchase price receivable, which is paid from available cash as payments on the receivables are collected. The special purpose entity in the North American asset-backed securitization program is a wholly-owned subsidiary of the Company. The special purpose entity in the foreign asset-backed securitization program is a separate bankruptcy-remote entity whose assets would be first available to satisfy the creditor claims of the unaffiliated financial institution. The Company is deemed the primary beneficiary of this special purpose entity as the Company has both the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be sig nificant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, the special purpose entities associated with these asset-backed securitization programs are included in the Company’s Condensed Consolidated Financial Statements . Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of Expiration Net Cash Proceeds (in millions) (1) Date North American $ 200.0 October 20, 2020 (2) Foreign $ 400.0 May 7, 2018 (1) Maximum amount available at any one time. (2) On November 9, 2017, the program was extended to October 20, 2020. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): November 30, 2017 November 30, 2016 Eligible trade accounts receivable sold during the three months ended $ 2,392 $ 2,343 Cash proceeds received during the three months ended (1) $ 1,628 $ 1,575 Pre-tax losses on sale of receivables during the three months ended (2) $ 4 $ 2 Deferred purchase price receivables as of November 30 (3) $ 760 $ 766 (1) For the three months ended November 30, 2017 and 2016 , the amount represented proceeds from collections reinvested in revolving-period transfers as there were no new transfers during the period. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. (3) R ecorded 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), primar ily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on th e fair value calculation s. Trade Accounts Receivable Sale Programs The f ollowing is a summary of the five trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables, at a discount, on an ongoing basis: Maximum Type of Expiration Program Amount (in millions) (1) Facility Date A $756.5 (2) Uncommitted August 31, 2022 (3) B $150.0 Uncommitted August 31, 2018 C 800.0 CNY Uncommitted February 15, 2018 D $100.0 Uncommitted November 1, 2018 (3) E $50.0 Uncommitted August 25, 2018 (1) Maximum amount available at any one time. (2) The maximum amount under the program will be reduced to $650.0 million on February 1, 2018. (3) Any party may elect to terminate the agreement upon 15 days prior notice. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended November 30, 2017 November 30, 2016 Trade accounts receivable sold (1) $ 1,095 $ 944 Cash proceeds received $ 1,092 $ 943 (1) The resulting losses on the sales of trade accounts receivable during the three months ended November 30, 2017 and 2016 were not material and were recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Nov. 30, 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, 2017 to November 30, 2017 (in thousands): Foreign Currency Translation Adjustment (1) Derivative Instruments (2) Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities (3) Total Balance as of August 31, 2017 $ 57,582 $ 29,967 $ (33,215) $ 889 $ (603) $ 54,620 Other comprehensive income (loss) before reclassifications (3,801) 7,744 (423) ― (1,465) 2,055 Amounts reclassified from AOCI ― (5,191) ― ― ― (5,191) Other comprehensive (loss) income (3,801) 2,553 (423) ― (1,465) (3,136) Balance as of November 30, 2017 $ 53,781 $ 32,520 $ (33,638) $ 889 $ (2,068) $ 51,484 (1) There is no tax benefit (expense) related to the foreign currency translation adjustment components of AOCI, including reclassification adjustments, for the three months ended November 30, 2017 . (2) $ 3.5 million of AOCI reclassified into earnings during the three months ended November 30, 2017 for derivative instruments was classified as a component reduction of income tax expense . The remaining amount reclassified into earnings was primarily classified as a component of cost of re venue. $ 11.3 million e xpected to be reclassified into earnings during the next 12 months will be classified as a component reduction of income tax expense . The remaining amount expected to be reclassified into earnings will be classified as a component of cost of revenue. The annual tax benefit (expense) for unrealized gains on derivative instruments is not material for the three months ended November 30, 2017 . (3) There is no tax benefit (expense) related to the available for sale securities components of AOCI, including reclassification adjustments, for the three months ended November 30, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9 . Commitments and Contingencies The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Internal Revenue Service (“IRS”) completed its field examination of the Company’s tax returns for fiscal years 2009 through 2011 and issued a Revenue Agent’s Report (“RAR”) on May 27, 2015, which was updated on June 22, 2016. The IRS completed its field examination of the Company’s tax returns for fiscal years 2012 through 2014 and issued an RAR on April 19, 2017. The proposed adjustments in the RAR from both examination periods re late primarily to U.S. taxation of certain intercompany transactions. If the IRS ultimately prevails in its positions, the Company’s income tax payment due for the fiscal years 2009 through 2011 and 2012 through 2014 would be approximately $ 28.6 million an d $ 5.3 million, respectively, after utilization of tax loss carry forwards available through fiscal year 2014. Also, the IRS has proposed interest and penalties with respect to fiscal years 2009 through 2011. The IRS may make similar claims in future audit s 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 vigorously contest these matters through the applicable IRS administrative and judicial procedures, as appropriate. As the final resolution of the proposed adjustments remains uncertain, the Company continues to provide for the uncertain tax positions based on the more like ly than not standard. While the resolution of the issues may result in tax liabilities, interest and penalties, which may be significantly higher than the amounts accrued 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. However, there can be no assurance that management’s beliefs will be realized. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Nov. 30, 2017 | |
Derivative Financial Instruments and Hedging Activities [Abstract] | |
Derivative Financial Instruments and Hedging Activities | 10 . 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 risk and interest rate risk. Foreign Currency Risk Management Forward contracts are put in place to manage the foreign currency risk associated with the anticipated foreign currency denominated reven ues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $ 480.7 million and $ 314.6 million as of November 30, 2017 and August 31, 2017 , respectively. The related forward foreign ex change contracts have been designated as hedging instruments and are accounted for as cash flow hedges. The forward foreign exchange contract transactions will effectively lock in the value of anticipated foreign currency denominated revenues and expenses against foreign currency fluctuations. The anticipated foreign currency denominated revenues and expenses being hedged are expected to occur between December 1, 2017 and August 31, 2018 . In addition to derivatives that ar e designated as hedging instruments and qualify for hedge accounting, the Company also enters into forward contracts to economically hedge transactional exposure associated with commitments arising from trade accounts receivable, trade accounts payable, fi xed purchase obligations and intercompany transactions denominated in a currency other than the functional currency of the respective operating entity. The aggregate notional amount of these outstanding contracts as of November 30, 2017 and Augus t 31, 2017 , was $ 2.4 billion and $ 2.1 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 basis a s of November 30, 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 $ ― 18,731 ― $ 18,731 Liabilities: Forward foreign exchange contracts ― (9,640) ― (9,640) Total $ ― 9,091 ― $ 9,091 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 recorded in the Condensed Consolidated Balance Sheets a s of November 30, 2017 and August 31, 2017 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Fair Value as of Fair Value as of Balance Sheet Fair Value as of Fair Value as of Location November 30, 2017 August 31, 2017 Location November 30, 2017 August 31, 2017 Derivatives designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 6,403 $ 8,380 expenses $ 252 $ 1,408 Derivatives not designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 12,328 $ 31,280 expenses $ 9,388 $ 9,131 The gains and losses recognized in earnings due to hedge ineffectiveness and the amount excluded from effectiveness testing were not material for all periods presented and are included as components of net revenue, cost of revenue and selling, general and administrative expense. 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 ended November 30, 2017 and 2016 . These amounts were not material and were recognized as components of cost of revenue. 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 2016, the Company entered into forward 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 cash 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 contrac ts will be terminated simultaneously with the debt issuance. The contracts will be settled with the 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 r ecorded 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 Fa cility. In connection with this transaction, the Company will pay interest based upon a fixed rate 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 a ggregate notional amount of $200.0 million and have been designated as hedging instruments and accounted 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 | 3 Months Ended |
Nov. 30, 2017 | |
Restructuring and Related Charges [Abstract] | |
Restructuring and Related Charges | 12 . Restructuring and Related Charges Following is a summary of the Company’s restructuring and related charges (in thousands): Three months ended November 30, 2017 November 30, 2016 Employee severance and benefit costs $ 3,977 $ 19,386 Lease costs ― 3,291 Asset write-off costs 6,812 12,640 Other related costs 599 585 Total restructuring and related charges (1)(2) $ 11,388 $ 35,902 (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. (2) Primarily relates to the 2017 Restructuring Plan. 2017 Restructuring Plan On S eptember 15, 2016 , the Company’s Board of Directors formally approved a restructuring plan to better align the Company’s global capacity and administrative support infrastructure to further optimize organizational effectiveness. This action includes headcount reductions across the Company’s s elling, g eneral and a dministrative cost base and capacity realignment in higher cost locations (the “2017 Restructuring Plan”). Upon completion of the 2017 Restructuring Plan, t he Company expects to recognize approximately $ 195.0 million in restructuring and other related costs . The Company has incurred $ 164.6 million in costs-to- date as of November 30, 2017. The remaining costs for employee severance and benefit costs, asset write-off costs and other related costs are anticipated to be incurred during the remainder of fisca l year 2018. The tables below summarize the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands): Employee Severance Asset Write-off Other and Benefit Costs Lease Costs Costs Related Costs Total Balance as of August 31, 2017 $ 33,580 $ 1,665 $ ― $ 3,143 $ 38,388 Restructuring related charges 3,977 ― 6,812 599 11,388 Asset write-off charge and other non-cash activity (123) ― (6,812) ― (6,935) Cash payments (9,856) (69) ― (1,364) (11,289) Balance as of November 30, 2017 $ 27,578 $ 1,596 $ ― $ 2,378 $ 31,552 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Nov. 30, 2017 | |
Business Acquisitions [Abstract] | |
Business Acquisitions | 12 . Business Acquisitions On September 1, 2017, the Company completed the acquisition of True-Tech Corporation (“True-Tech”) for approximately $ 95.9 million in cash , which remains subject to adjustment based on review of the actual net assets of the acquisition as of the closing date . True-Tech is a manufacturer specializing in aerospace, semiconductor and medical machined components. The acquisition of True-Tech assets has been accounted for as a business combination using the acquisiti on method of accounting. Assets acquired of $ 114.4 million , including $ 25 .9 million in intangible assets and $ 22.3 million in goodwill , and liabilities assumed of $ 18.5 million were recorded at their estimated fair values as of the acquisition date. The Company is currently evaluating the fair values of the assets related to this business combination. The preliminary estimates and measurements are, therefore, subject to change during the measurement period for inventory, property, plant and equipment, int angible assets , goodwill and tax adjustments. The excess of the purchase price over the fair value of the acquired assets and assumed liabilities was recorded to goodwill and was fully allocated to the EMS segment . The majority of the goodwill is currently expected to be deductible for income tax purposes. The results of operations were included in the Company’s condensed consolidated financial results beginning on September 1, 2017. Pro forma information has not been provided as the acquisition of True-Tech is not deemed to be significant. |
New Accounting Guidance
New Accounting Guidance | 3 Months Ended |
Nov. 30, 2017 | |
New Accounting Guidance [Abstract] | |
New Accounting Guidance | 13 . New Accounting Guidance Recently Issued Accounting Guidance During fiscal year 2014, the Financial Accounting Standards Board (“ 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. The accounting standard is effective for the Company in the first quarter of fiscal year 201 9 . Companies may use either a full retrospective or a modified retrospective approach to adopt this stan dard . The Company has determined that the new standard will result in a change to the timing of the Company's revenue recognition policy for certain customer contracts to an “ over time” model as opposed to a “point in time” model upon delivery. Additiona lly, the Company anticipates the new standard will impact the Company's accounting for certain fulfillment costs, which include up-front costs to prepare for manufacturing activities that are expected to be recovered. Under the new standard, such up-front costs would be recognized as an asset and amortized on a systematic basis consistent with the pattern of the transfer of the goods to which the asset relates. The financial impacts of the new standard cannot be reasonably estimated at this time. The Compa ny is in the process of implementing changes to its processes, policies and internal controls to meet the impact of the new standard and disclosure requirements. The Company expects to adopt the new guidance under the modified retrospective approach. Dur ing fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for the Company beginning in the first quarter of fisca l 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 Consolidated B alance S heet as of the beginning of the fiscal year of adoption and applied prospectivel y 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 Consolidated Financial Statements. During 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 l easing arrangements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. E arly application of the new standard is permitted and the standard must be adopted using a modified retrospective approach . The adoption of this standar d will impact the Company’s Consolidated Balance Sheet. The Company is currently assessing any other impact s this new standard will have on its Consolidated Financial Statements. During fiscal year 2016, the FASB issued an accounting standard, which replac es the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 and early adoption is permitted beginning in the first quarter of fiscal year 2020. This guidance must be applied using a modified retrospective or prospective transition method, depending on the area covered by this accounting standard. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2016 , the FASB issued a new accounting standard to address the presentat ion of certain transactions within the statement of cash flows with the objective 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 Co nsolidated Financial Statements . During fiscal year 2017 , the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entit y 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 e ffective 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 be ginning of the period of adoption. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2017, the FASB issued a new accounting standard 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 Consolidated Financial Statements will depend on the facts and circumstances of an y specific future transactions . During f iscal 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 current 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 the first quarter of fi scal 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 Consolidated Financial Statements. During fiscal year 2017, the FASB iss ued a new accounting standard which clarifies the scope of accounting for asset derecognition and adds further guidance for recognizing gains and losses from the transfer of non-financial assets in contracts with non-customers . This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 coincident with the new revenue recognition guidance. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2017, the FASB issued a new accounting standard to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities by simplifying the application of hedge accounting and improving t he related disclosures in its financial statements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The guidance must be applied using a modified retrospective approach. The Comp any is currently assessing the impact this new standard may have on its Consolidated Financial Statements. Recently issued accounting guidance not discussed above is not applicable or did not have, or is not expected to have, a material impact to the Compa ny. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 14 . Income Taxes The effective tax rate differed from the U.S. federal statutory rate of 35 % during the three months ended November 30, 2017 and 2016 primarily due to: (a) income in tax jurisdictions with lower statutory tax rates than the U.S.; (b) tax incentives granted to sites in Brazil, China, Malaysia, Singapore and Vietnam; and (c) losses in tax jurisdictions with existing valuation allowances, including losses from stock-based compensation for the three months end ed November 30, 2017. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15 . Subsequent Events The Company has evaluated subsequent events that occurred through the date of the filing of the Company’s first quarter of fiscal year 2018 Form 10-Q . No significant events occurred subsequent to the balance sheet date and prior to the filing date of this report that would have a material impact on the Condensed Consolidated Financial Statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Nov. 30, 2017 | |
New Accounting Guidance [Abstract] | |
New Accounting Guidance | Recently Issued Accounting Guidance During fiscal year 2014, the Financial Accounting Standards Board (“ 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. The accounting standard is effective for the Company in the first quarter of fiscal year 201 9 . Companies may use either a full retrospective or a modified retrospective approach to adopt this stan dard . The Company has determined that the new standard will result in a change to the timing of the Company's revenue recognition policy for certain customer contracts to an “ over time” model as opposed to a “point in time” model upon delivery. Additiona lly, the Company anticipates the new standard will impact the Company's accounting for certain fulfillment costs, which include up-front costs to prepare for manufacturing activities that are expected to be recovered. Under the new standard, such up-front costs would be recognized as an asset and amortized on a systematic basis consistent with the pattern of the transfer of the goods to which the asset relates. The financial impacts of the new standard cannot be reasonably estimated at this time. The Compa ny is in the process of implementing changes to its processes, policies and internal controls to meet the impact of the new standard and disclosure requirements. The Company expects to adopt the new guidance under the modified retrospective approach. Dur ing fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for the Company beginning in the first quarter of fisca l 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 Consolidated B alance S heet as of the beginning of the fiscal year of adoption and applied prospectivel y 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 Consolidated Financial Statements. During 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 l easing arrangements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. E arly application of the new standard is permitted and the standard must be adopted using a modified retrospective approach . The adoption of this standar d will impact the Company’s Consolidated Balance Sheet. The Company is currently assessing any other impact s this new standard will have on its Consolidated Financial Statements. During fiscal year 2016, the FASB issued an accounting standard, which replac es the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 and early adoption is permitted beginning in the first quarter of fiscal year 2020. This guidance must be applied using a modified retrospective or prospective transition method, depending on the area covered by this accounting standard. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2016 , the FASB issued a new accounting standard to address the presentat ion of certain transactions within the statement of cash flows with the objective 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 Co nsolidated Financial Statements . During fiscal year 2017 , the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entit y 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 e ffective 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 be ginning of the period of adoption. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2017, the FASB issued a new accounting standard 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 Consolidated Financial Statements will depend on the facts and circumstances of an y specific future transactions . During f iscal 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 current 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 the first quarter of fi scal 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 Consolidated Financial Statements. During fiscal year 2017, the FASB iss ued a new accounting standard which clarifies the scope of accounting for asset derecognition and adds further guidance for recognizing gains and losses from the transfer of non-financial assets in contracts with non-customers . This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 coincident with the new revenue recognition guidance. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. During fiscal year 2017, the FASB issued a new accounting standard to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities by simplifying the application of hedge accounting and improving t he related disclosures in its financial statements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The guidance must be applied using a modified retrospective approach. The Comp any is currently assessing the impact this new standard may have on its Consolidated Financial Statements. Recently issued accounting guidance not discussed above is not applicable or did not have, or is not expected to have, a material impact to the Compa ny. |
Earnings Per Share and Divide24
Earnings Per Share and Dividends (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Earnings Per Share and Dividends [Abstract] | |
Dilutive shares outstanding not included in the computation of EPS | Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended November 30, 2017 November 30, 2016 Stock appreciation rights ― 1,406 Restricted stock awards 2,549 5,028 |
Cash Dividends Declared to Common Stockholders | The following table sets forth cash dividends declared by the Company to common stockholders during the three months ended November 30, 2017 and 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 2018: October 19, 2017 $ 0.08 $ 14,588 November 15, 2017 December 1, 2017 Fiscal Year 2017: October 20, 2016 $ 0.08 $ 15,248 November 15, 2016 December 1, 2016 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following (in thousands): November 30, 2017 August 31, 2017 Raw materials $ 1,739,411 $ 1,574,241 Work in process 919,036 822,628 Finished goods 676,352 591,227 Reserve for excess and obsolete inventory (51,584) (46,013) Inventories, net $ 3,283,215 $ 2,942,083 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Schedule Of Recognized Stock Based Compensation Expense [Table Text Block] | The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Three months ended November 30, 2017 November 30, 2016 Restricted stock and stock appreciation rights $ 43,507 $ (2,041) Employee stock purchase plan 1,700 1,750 Other (1) 7,538 ― Total $ 52,745 $ (291) (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. |
Schedule Of Share Based Compensation Information [TableTextBlock] | The following represents the stock-based compensation information for the period indicated (in thousands): Three months ended November 30, 2017 Unrecognized stock-based compensation expense - restricted stock $ 81,829 Remaining weighted-average period for restricted stock expense 1.5 years |
Concentration of Risk and Seg27
Concentration of Risk and Segment Data (Tables) | 3 Months Ended |
Nov. 30, 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 November 30, 2017 November 30, 2016 Net revenue EMS $ 2,862,060 $ 2,703,290 DMS 2,723,472 2,401,608 $ 5,585,532 $ 5,104,898 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment income and reconciliation of income before income tax EMS $ 85,710 $ 89,546 DMS 141,510 119,994 Total segment income $ 227,220 $ 209,540 Reconciling items: Amortization of intangibles (9,979) (8,322) Stock-based compensation expense and related charges (52,745) 291 Restructuring and related charges (11,388) (35,902) Business interruption and impairment charges, net (7,354) ― Other expense (5,882) (4,680) Interest income 3,813 2,455 Interest expense (36,246) (32,844) Income before income tax $ 107,439 $ 130,538 |
Reconciliation of Assets from Segment to Consolidated | November 30, 2017 August 31, 2017 Total assets EMS $ 3,156,266 $ 2,778,820 DMS 5,490,658 5,290,468 Other non-allocated assets 2,872,641 3,026,707 $ 11,519,565 $ 11,095,995 |
Notes Payable, Long-Term Debt28
Notes Payable, Long-Term Debt and Capital Lease Obligations (Tables) | 3 Months Ended |
Nov. 30, 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 as of November 30, 2017 and August 31, 2017 are summarized below (in thousands): Maturity November 30, August 31, Date 2017 2017 8.250% Senior Notes (1)(2) March 15, 2018 $ 399,745 $ 399,506 5.625% Senior Notes (1)(2) Dec. 15, 2020 397,326 397,104 4.700% Senior Notes (1)(2) Sept. 15, 2022 496,860 496,696 4.900% Senior Notes (1) July 14, 2023 298,632 298,571 Borrowings under credit facilities (3) Nov. 8, 2022 ― ― Borrowings under loans (3) Nov. 8, 2022 500,360 458,395 Capital lease obligations 27,529 27,818 Total notes payable, long-term debt and capital lease obligations 2,120,452 2,078,090 Less current installments of notes payable, long-term debt and capital lease obligations 427,019 445,498 Notes payable, long-term debt and capital lease obligations, less current installments $ 1,693,433 $ 1,632,592 ( 1 ) The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs. ( 2 ) The S enior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. ( 3 ) On November 8, 2017, the Company entered into an amended and restated senior unsecured five-year credit agreement. The credit agreement provides for: (i) the Revolving Credit Facility in the initial amount of $ 1. 8 b illion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2. 3 billion and (ii) a $ 500.0 million Term Loan Facility (collectively the “Credit Facility”). The Credit Facility expires on November 8, 2022. The Revolving Credit Faci lity is subject to two whole or partial one-year extensions, at the lender s’ discretion. Interest and fees on the Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poo r’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the three months ended November 30, 2017 , the interest rate s on the Revolving Credit Facility ranged from 2.4 % to 4.4 % and the interest rates on the Term Loan Facility ranged from 2.6 % to 2.7 %. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000 % to 0. 575 % above the base rate or 0.975 % to 1. 575 % above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125 % to 0.875 % above the base rate or 1.125 % to 1.875 % above the Eurocurrency rate . T he base rate represents the greatest of : (i) Citibank, N.A.’s base rate, (ii) 0.50 % above the federal funds rate, and (iii) 1.0 % above one-month LIBOR, but not less than zero . T he Eurocu rrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of November 30, 2017 , the Company has $ 2.2 billion in available unu sed borrowing capacity under its revolving credit facilities . |
Trade Accounts Receivable Sec29
Trade Accounts Receivable Securitization and Sale Programs (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Trade Accounts Receivable Securitization and Sale Programs [Abstract] | |
Asset Backed Securitization Programs Key Terms [TableTextBlock] | Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of Expiration Net Cash Proceeds (in millions) (1) Date North American $ 200.0 October 20, 2020 (2) Foreign $ 400.0 May 7, 2018 (1) Maximum amount available at any one time. (2) On November 9, 2017, the program was extended to October 20, 2020. |
Asset Backed Securitization Programs Amounts Recognized [Table Text Block] | In connection with the asset-backed securitization programs, the Company recognized the following (in millions): November 30, 2017 November 30, 2016 Eligible trade accounts receivable sold during the three months ended $ 2,392 $ 2,343 Cash proceeds received during the three months ended (1) $ 1,628 $ 1,575 Pre-tax losses on sale of receivables during the three months ended (2) $ 4 $ 2 Deferred purchase price receivables as of November 30 (3) $ 760 $ 766 (1) For the three months ended November 30, 2017 and 2016 , the amount represented proceeds from collections reinvested in revolving-period transfers as there were no new transfers during the period. (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. (3) R ecorded 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), primar ily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on th e fair value calculation s. |
Trade Accounts Receivable Sale Programs Key Terms [Table Text Block] | The f ollowing is a summary of the five trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables, at a discount, on an ongoing basis: Maximum Type of Expiration Program Amount (in millions) (1) Facility Date A $756.5 (2) Uncommitted August 31, 2022 (3) B $150.0 Uncommitted August 31, 2018 C 800.0 CNY Uncommitted February 15, 2018 D $100.0 Uncommitted November 1, 2018 (3) E $50.0 Uncommitted August 25, 2018 (1) Maximum amount available at any one time. (2) The maximum amount under the program will be reduced to $650.0 million on February 1, 2018. (3) Any party may elect to terminate the agreement upon 15 days prior notice. |
Trade Accounts Receivable Sale Programs Amounts Recognized [Table Text Block] | In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended November 30, 2017 November 30, 2016 Trade accounts receivable sold (1) $ 1,095 $ 944 Cash proceeds received $ 1,092 $ 943 (1) The resulting losses on the sales of trade accounts receivable during the three months ended November 30, 2017 and 2016 were not material and were recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Summary of Changes in AOCI | The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component from August 31, 2017 to November 30, 2017 (in thousands): Foreign Currency Translation Adjustment (1) Derivative Instruments (2) Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities (3) Total Balance as of August 31, 2017 $ 57,582 $ 29,967 $ (33,215) $ 889 $ (603) $ 54,620 Other comprehensive income (loss) before reclassifications (3,801) 7,744 (423) ― (1,465) 2,055 Amounts reclassified from AOCI ― (5,191) ― ― ― (5,191) Other comprehensive (loss) income (3,801) 2,553 (423) ― (1,465) (3,136) Balance as of November 30, 2017 $ 53,781 $ 32,520 $ (33,638) $ 889 $ (2,068) $ 51,484 (1) There is no tax benefit (expense) related to the foreign currency translation adjustment components of AOCI, including reclassification adjustments, for the three months ended November 30, 2017 . (2) $ 3.5 million of AOCI reclassified into earnings during the three months ended November 30, 2017 for derivative instruments was classified as a component reduction of income tax expense . The remaining amount reclassified into earnings was primarily classified as a component of cost of re venue. $ 11.3 million e xpected to be reclassified into earnings during the next 12 months will be classified as a component reduction of income tax expense . The remaining amount expected to be reclassified into earnings will be classified as a component of cost of revenue. The annual tax benefit (expense) for unrealized gains on derivative instruments is not material for the three months ended November 30, 2017 . (3) There is no tax benefit (expense) related to the available for sale securities components of AOCI, including reclassification adjustments, for the three months ended November 30, 2017 . |
Derivative Financial Instrume31
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Nov. 30, 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 basis a s of November 30, 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 $ ― 18,731 ― $ 18,731 Liabilities: Forward foreign exchange contracts ― (9,640) ― (9,640) Total $ ― 9,091 ― $ 9,091 |
Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes | The following table presents the fair values of the Company’s derivative instruments recorded in the Condensed Consolidated Balance Sheets a s of November 30, 2017 and August 31, 2017 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Fair Value as of Fair Value as of Balance Sheet Fair Value as of Fair Value as of Location November 30, 2017 August 31, 2017 Location November 30, 2017 August 31, 2017 Derivatives designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 6,403 $ 8,380 expenses $ 252 $ 1,408 Derivatives not designated as hedging instruments: Prepaid expenses Forward foreign exchange and other current Accrued contracts assets $ 12,328 $ 31,280 expenses $ 9,388 $ 9,131 |
Restructuring and Related Cha32
Restructuring and Related Charges (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Restructuring and Related Charges [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Following is a summary of the Company’s restructuring and related charges (in thousands): Three months ended November 30, 2017 November 30, 2016 Employee severance and benefit costs $ 3,977 $ 19,386 Lease costs ― 3,291 Asset write-off costs 6,812 12,640 Other related costs 599 585 Total restructuring and related charges (1)(2) $ 11,388 $ 35,902 (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. (2) Primarily relates to the 2017 Restructuring Plan. |
Significant Components and Activity in Restructuring Plan [Table Text Block] | The tables below summarize the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands): Employee Severance Asset Write-off Other and Benefit Costs Lease Costs Costs Related Costs Total Balance as of August 31, 2017 $ 33,580 $ 1,665 $ ― $ 3,143 $ 38,388 Restructuring related charges 3,977 ― 6,812 599 11,388 Asset write-off charge and other non-cash activity (123) ― (6,812) ― (6,935) Cash payments (9,856) (69) ― (1,364) (11,289) Balance as of November 30, 2017 $ 27,578 $ 1,596 $ ― $ 2,378 $ 31,552 |
Earnings Per Share and Divide33
Earnings Per Share and Dividends (Earnings Per Share) (Details 1) - shares shares in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted earnings per share | 2,549 | 5,028 |
Stock Appreciation Rights [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted earnings per share | 0 | 1,406 |
Earnings Per Share and Divide34
Earnings Per Share and Dividends (Dividends) (Details 2) - Quarter One [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Dividends Payable [Line Items] | ||
Dividend Declaration Date | Oct. 19, 2017 | Oct. 20, 2016 |
Dividend per Share | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 14,588 | $ 15,248 |
Date of Record for Dividend Payment | Nov. 15, 2017 | Nov. 15, 2016 |
Dividend Cash Payment Date | Dec. 1, 2017 | Dec. 1, 2016 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Inventories [Abstract] | ||
Raw materials | $ 1,739,411 | $ 1,574,241 |
Work in process | 919,036 | 822,628 |
Finished goods | 676,352 | 591,227 |
Reserve for excess and obsolete inventory | (51,584) | (46,013) |
Inventories, net | $ 3,283,215 | $ 2,942,083 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Stock-Based Compensation [Abstract] | |||
Restricted stock and stock appreciation rights ("SARS") | $ 43,507 | $ (2,041) | |
Employee stock purchase plan | 1,700 | 1,750 | |
Other stock based compensation expense | [1] | 7,538 | 0 |
Total | $ 52,745 | $ (291) | |
[1] | (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Share repurchase program, remaining authorized repurchase amount | $ 356.7 | |
Stock-based compensation recognized for modification | 24.9 | |
2017 Share Repurchase Program [Member] | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Share repurchase program, amount authorized | $ 450 | |
Shares repurchased | 3,200,000 | |
Shares repurchased, value | $ 93.2 | |
Restricted Stock Awards [Member] | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Awards vested | 800,000 | |
Performance-based restricted stock units [Member] | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Restricted stock units awarded | 400,000 | 600,000 |
Award vesting period | 3 years | |
Performance-based restricted stock units [Member] | Maximum | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Award vesting percentage | 150.00% | |
Time-based restricted stock units [Member] | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Restricted stock units awarded | 1,300,000 | 1,000,000 |
Award vesting period | 3 years | |
Market based restricted stock units [Member] | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Restricted stock units awarded | 400,000 | 400,000 |
Award vesting percentage | 200.00% | |
Award vesting period | 3 years | |
Plan 2,011 | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Shares available for issuance under share based compensation plan | 12,327,622 |
Stock-Based Compensation (Det38
Stock-Based Compensation (Details 3) $ in Thousands | 3 Months Ended |
Nov. 30, 2017USD ($) | |
Stock-Based Compensation [Abstract] | |
Unrecognized stock-based compensation - restricted stock | $ 81,829 |
Remaining weighted-average period for restricted stock expense | 1 year 6 months |
Concentration of Risk and Seg39
Concentration of Risk and Segment Data (Additional Information) (Details 1) | 3 Months Ended | |
Nov. 30, 2017CountryCustomerSegment | Nov. 30, 2016 | |
Revenue, Major Customer [Line Items] | ||
Number of operating segments | Segment | 2 | |
Number of operating countries | Country | 29 | |
Geographic Concentration Risk [Member] | Net Revenue | Foreign | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 92.30% | 92.30% |
Customer Concentration Risk [Member] | Net Revenue | Group of Customers That Account for 90% of Net Revenue [Member] | ||
Revenue, Major Customer [Line Items] | ||
Top customers that comprise revenue | 74 | |
Concentration Risk, Percentage | 90.00% | |
Customer Concentration Risk [Member] | Net Revenue | Five Largest Customers That Account For A Percentage Of Net Revenue [Member] | ||
Revenue, Major Customer [Line Items] | ||
Top customers that comprise revenue | 5 | |
Concentration Risk, Percentage | 51.00% |
Concentration of Risk and Seg40
Concentration of Risk and Segment Data (Segment Revenue) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenue | $ 5,585,532 | $ 5,104,898 |
EMS [Member] | Operating Segments [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenue | 2,862,060 | 2,703,290 |
DMS [Member] | Operating Segments [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenue | $ 2,723,472 | $ 2,401,608 |
Concentration of Risk and Seg41
Concentration of Risk and Segment Data (Segment Income) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Reconciling items: | |||
Amortization of intangibles | $ (9,979) | $ (8,322) | |
Stock-based compensation expense and related charges | (52,745) | 291 | |
Restructuring and related charges | [1],[2] | (11,388) | (35,902) |
Business interruption and impairment charges, net | (7,354) | ||
Other expense | (5,882) | (4,680) | |
Interest income | 3,813 | 2,455 | |
Interest expense | (36,246) | (32,844) | |
Income before income tax | 107,439 | 130,538 | |
Operating Segments [Member] | |||
Reconciling items: | |||
Income before income tax | 227,220 | 209,540 | |
DMS [Member] | |||
Reconciling items: | |||
Restructuring and related charges | (4,600) | (11,500) | |
Income before income tax | 141,510 | 119,994 | |
EMS [Member] | |||
Reconciling items: | |||
Restructuring and related charges | (5,900) | (7,400) | |
Income before income tax | $ 85,710 | $ 89,546 | |
[1] | (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. | ||
[2] | (2) Primarily relates to the 2017 Restructuring Plan. |
Concentration of Risk and Seg42
Concentration of Risk and Segment Data (Segment Assets) (Details 4) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 11,519,565 | $ 11,095,995 |
EMS [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,156,266 | 2,778,820 |
DMS [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 5,490,658 | 5,290,468 |
Other non-allocated assets | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 2,872,641 | $ 3,026,707 |
Notes Payable, Long-Term Debt43
Notes Payable, Long-Term Debt and Capital Lease Obligations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Aug. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Borrowings under credit facilities | [1] | $ 0 | $ 0 |
Borrowings under loans | [1] | 500,360 | 458,395 |
Capital lease obligations | 27,529 | 27,818 | |
Total notes payable, long-term debt and capital lease obligations | 2,120,452 | 2,078,090 | |
Less current installments of notes payable, long-term debt and capital lease obligations | 427,019 | 445,498 | |
Notes payable, long-term debt and capital lease obligations, less current installments | $ 1,693,433 | 1,632,592 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 8, 2022 | ||
Term loan facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Nov. 8, 2022 | ||
8.250% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | [2],[3] | $ 399,745 | 399,506 |
Maturity Date | Mar. 15, 2018 | ||
5.625% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | [2],[3] | $ 397,326 | 397,104 |
Maturity Date | Dec. 15, 2020 | ||
4.700% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | [2],[3] | $ 496,860 | 496,696 |
Maturity Date | Sep. 15, 2022 | ||
4.900% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | [2],[3] | $ 298,632 | $ 298,571 |
Maturity Date | Jul. 14, 2023 | ||
[1] | ( 3 ) On November 8, 2017, the Company entered into an amended and restated senior unsecured five-year credit agreement. The credit agreement provides for: (i) the Revolving Credit Facility in the initial amount of $ 1. 8 b illion, which may, subject to the lenders’ discretion, potentially be increased up to $ 2. 3 billion and (ii) a $ 500.0 million Term Loan Facility (collectively the “Credit Facility”). The Credit Facility expires on November 8, 2022. The Revolving Credit Faci lity is subject to two whole or partial one-year extensions, at the lender s’ discretion. Interest and fees on the Credit Facility advances are based on the Company’s non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poo r’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the three months ended November 30, 2017 , the interest rate s on the Revolving Credit Facility ranged from 2.4 % to 4.4 % and the interest rates on the Term Loan Facility ranged from 2.6 % to 2.7 %. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000 % to 0. 575 % above the base rate or 0.975 % to 1. 575 % above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125 % to 0.875 % above the base rate or 1.125 % to 1.875 % above the Eurocurrency rate . T he base rate represents the greatest of : (i) Citibank, N.A.’s base rate, (ii) 0.50 % above the federal funds rate, and (iii) 1.0 % above one-month LIBOR, but not less than zero . T he Eurocu rrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of November 30, 2017 , the Company has $ 2.2 billion in available unu sed borrowing capacity under its revolving credit facilities . | ||
[2] | ( 1 ) The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs. | ||
[3] | ( 2 ) The S enior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. |
Notes Payable, Long-Term Debt44
Notes Payable, Long-Term Debt and Capital Lease Obligations (Details 2) - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Notes Payable, Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Total notes payable, long-term debt and capital lease obligations | $ 2,120,452 | $ 2,078,090 |
Current installments of notes payable, long-term debt and capital lease obligations | 427,019 | 445,498 |
Notes payable, long-term debt and capital lease obligations, less current installments | $ 1,693,433 | $ 1,632,592 |
Notes Payable, Long-Term Debt45
Notes Payable, Long-Term Debt and Capital Lease Obligations (Additional Information) (Details 3) $ in Millions | 3 Months Ended |
Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Interest rate above federal funds rate | 0.50% |
Interest rate above one month LIBOR rate | 1.00% |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Revolving credit facility initiation amount | $ 1,800 |
Revolving credit facility maximum borrowing capacity | 2,300 |
Unused borrowing capacity under revolving credit facilities, net of letters of credit | 2,200 |
Term loan facility [Member] | |
Debt Instrument [Line Items] | |
Term loan facility maximum borrowing capacity | $ 500 |
8.250% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 8.25% |
5.625% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 5.625% |
4.700% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 4.70% |
4.900% Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, stated interest rate | 4.90% |
Minimum | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Interest rate above base rate | 0.00% |
Interest rate above Eurocurrency rate | 0.975% |
Interest rate on debt instruments | 2.40% |
Minimum | Term loan facility [Member] | |
Debt Instrument [Line Items] | |
Interest rate above base rate | 0.125% |
Interest rate above Eurocurrency rate | 1.125% |
Interest rate on debt instruments | 2.60% |
Maximum | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Interest rate above base rate | 0.575% |
Interest rate above Eurocurrency rate | 1.575% |
Interest rate on debt instruments | 4.40% |
Maximum | Term loan facility [Member] | |
Debt Instrument [Line Items] | |
Interest rate above base rate | 0.875% |
Interest rate above Eurocurrency rate | 1.875% |
Interest rate on debt instruments | 2.70% |
Notes Payable, Long-Term Debt46
Notes Payable, Long-Term Debt and Capital Lease Obligations (Additional Information) (Fair Value) (Details 4) $ in Millions | Nov. 30, 2017USD ($) |
8.250% Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | $ 405.6 |
5.625% Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | 431.2 |
4.700% Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | 525.3 |
4.900% Senior Notes | |
Debt Instrument [Line Items] | |
Estimated fair value of senior notes | $ 311.7 |
Trade Accounts Receivable Sec47
Trade Accounts Receivable Securitization and Sale Programs (Additional Information) (Details 1) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2017 | Feb. 01, 2018 | ||
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% | ||
756.5 Million Dollar Trade Accounts Receivable Sale Program | |||
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 | [1],[2] | $ 756.5 | |
Minimum number of days notice required to cancel receivable sale agreements | 15 days | ||
756.5 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 | $ 650 | ||
100.0 Million Dollar Trade Accounts Receivable Sale Program | |||
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 | [1] | $ 100 | |
Minimum number of days notice required to cancel receivable sale agreements | 15 days | ||
[1] | (1) Maximum amount available at any one time. | ||
[2] | (2) The maximum amount under the program will be reduced to $650.0 million on February 1, 2018. |
Trade Accounts Receivable Sec48
Trade Accounts Receivable Securitization and Sale Programs (Securitization Key Terms) (Details 2) $ in Millions | 3 Months Ended | |
Nov. 30, 2017USD ($) | ||
North American Asset Backed Securitization Program [Member] | ||
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 | $ 200 | [1] |
Trade accounts receivable sale agreement expiration date | Oct. 20, 2020 | [2] |
Foreign Asset Backed Securitization Program [Member] | ||
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 | [1] |
Trade accounts receivable sale agreement expiration date | May 7, 2018 | |
[1] | (1) Maximum amount available at any one time. | |
[2] | (2) On November 9, 2017, the program was extended to October 20, 2020. |
Trade Accounts Receivable Sec49
Trade Accounts Receivable Securitization and Sale Programs (Securitization Activity) (Details 3) - Asset Backed Securitizations [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Eligible trade accounts receivable sold during the three months ended | $ 2,392 | $ 2,343 | |
Cash proceeds received during the three months ended | [1] | 1,628 | 1,575 |
Pre-tax loss on sale of receivables during the three months ended | [2] | 4 | 2 |
Deferred purchases price receivables as of November 30 | [3] | $ 760 | $ 766 |
[1] | (1) For the three months ended November 30, 2017 and 2016 , the amount represented proceeds from collections reinvested in revolving-period transfers as there were no new transfers during the period. | ||
[2] | (2) Recorded to other expense within the Condensed Consolidated Statements of Operations. | ||
[3] | (3) R ecorded 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), primar ily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on th e fair value calculation s. |
Trade Accounts Receivable Sec50
Trade Accounts Receivable Securitization and Sale Programs (Sales Programs Key Terms) (Details 4) - 3 months ended Nov. 30, 2017 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) | |
756.5 Million Dollar Trade Accounts Receivable Sale Program | |||
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 | [1],[2] | $ 756.5 | |
Trade accounts receivable sale agreement expiration date | [3] | Aug. 31, 2022 | |
150.0 Million Dollar Trade Accounts Receivable Sale Program | |||
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 | [1] | 150 | |
Trade accounts receivable sale agreement expiration date | Aug. 31, 2018 | ||
800.0 Million CNY Trade Accounts Receivable Sale Program | |||
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 | ¥ | [1] | ¥ 800 | |
Trade accounts receivable sale agreement expiration date | Feb. 15, 2018 | ||
100.0 Million Dollar Trade Accounts Receivable Sale Program | |||
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 | [1] | 100 | |
Trade accounts receivable sale agreement expiration date | [3] | Nov. 1, 2018 | |
50.0 Million Dollar Trade Accounts Receivable Sale Program [Member] | |||
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 | [1] | $ 50 | |
Trade accounts receivable sale agreement expiration date | Aug. 25, 2018 | ||
[1] | (1) Maximum amount available at any one time. | ||
[2] | (2) The maximum amount under the program will be reduced to $650.0 million on February 1, 2018. | ||
[3] | (3) Any party may elect to terminate the agreement upon 15 days prior notice. |
Trade Accounts Receivable Sec51
Trade Accounts Receivable Securitization and Sale Programs (Sales Programs Activity) (Details 5) - Trade Accounts Receivable Sale Programs [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sold | [1] | $ 1,095 | $ 944 |
Cash proceeds received | $ 1,092 | $ 943 | |
[1] | (1) The resulting losses on the sales of trade accounts receivable during the three months ended November 30, 2017 and 2016 were not material and were recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 54,620 | ||
Other comprehensive income (loss) before reclassifications | 2,055 | ||
Amounts reclassified from AOCI | (5,191) | ||
Other comprehensive income (loss) | (3,136) | $ (13,038) | |
Ending balance | 51,484 | ||
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | [1] | 57,582 | |
Other comprehensive income (loss) before reclassifications | [1] | (3,801) | |
Amounts reclassified from AOCI | [1] | 0 | |
Other comprehensive income (loss) | [1] | (3,801) | |
Ending balance | [1] | 53,781 | |
Derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | [2] | 29,967 | |
Other comprehensive income (loss) before reclassifications | [2] | 7,744 | |
Amounts reclassified from AOCI | [2] | (5,191) | |
Other comprehensive income (loss) | [2] | 2,553 | |
Ending balance | [2] | 32,520 | |
Actuarial loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (33,215) | ||
Other comprehensive income (loss) before reclassifications | (423) | ||
Amounts reclassified from AOCI | 0 | ||
Other comprehensive income (loss) | (423) | ||
Ending balance | (33,638) | ||
Prior service cost | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 889 | ||
Other comprehensive income (loss) before reclassifications | 0 | ||
Amounts reclassified from AOCI | 0 | ||
Other comprehensive income (loss) | 0 | ||
Ending balance | 889 | ||
Available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | [3] | (603) | |
Other comprehensive income (loss) before reclassifications | [3] | (1,465) | |
Amounts reclassified from AOCI | [3] | 0 | |
Other comprehensive income (loss) | [3] | (1,465) | |
Ending balance | [3] | $ (2,068) | |
[1] | (1) There is no tax benefit (expense) related to the foreign currency translation adjustment components of AOCI, including reclassification adjustments, for the three months ended November 30, 2017 . | ||
[2] | (2) $ 3.5 million of AOCI reclassified into earnings during the three months ended November 30, 2017 for derivative instruments was classified as a component reduction of income tax expense . The remaining amount reclassified into earnings was primarily classified as a component of cost of re venue. $ 11.3 million e xpected to be reclassified into earnings during the next 12 months will be classified as a component reduction of income tax expense . The remaining amount expected to be reclassified into earnings will be classified as a component of cost of revenue. The annual tax benefit (expense) for unrealized gains on derivative instruments is not material for the three months ended November 30, 2017 . | ||
[3] | (3) There is no tax benefit (expense) related to the available for sale securities components of AOCI, including reclassification adjustments, for the three months ended November 30, 2017 . |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Income (Additional Information) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net tax benefit (expense) of foreign currency translation adjustment component of accumulated other comprehensive income | $ 0 | ||
Amounts reclassified from AOCI | (5,191) | ||
Net tax benefit (expense) of available for sale securities component of AOCI | 0 | ||
Derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | [1] | (5,191) | |
Income Tax Expense [Member] | Derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | $ (3,500) | ||
Income Tax Expense [Member] | Derivative instruments | Expected over next twelve months | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from AOCI | $ (11,300) | ||
[1] | (2) $ 3.5 million of AOCI reclassified into earnings during the three months ended November 30, 2017 for derivative instruments was classified as a component reduction of income tax expense . The remaining amount reclassified into earnings was primarily classified as a component of cost of re venue. $ 11.3 million e xpected to be reclassified into earnings during the next 12 months will be classified as a component reduction of income tax expense . The remaining amount expected to be reclassified into earnings will be classified as a component of cost of revenue. The annual tax benefit (expense) for unrealized gains on derivative instruments is not material for the three months ended November 30, 2017 . |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Details 1) $ in Millions | Nov. 30, 2017USD ($) |
Fiscal Years 2009 Through 2011 [Member] | |
Loss Contingencies Line Items | |
Potential additional income tax payment due | $ 28.6 |
Fiscal Years 2012 through 2014 [Member] | |
Loss Contingencies Line Items | |
Potential additional income tax payment due | $ 5.3 |
Derivative Financial Instrume55
Derivative Financial Instruments and Hedging Activities (Additional Information) (Details 1) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Aug. 31, 2017 | |
Forward contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 2,400,000,000 | $ 2,100,000,000 |
Forward contracts | Forward foreign exchange contracts | Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | 480,700,000 | $ 314,600,000 |
Anticipated debt issuance [Member] | Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 200,000,000 | |
Expiry date | Mar. 15, 2018 | |
Term loan facility [Member] | Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 200,000,000 | |
Expiry date | Jun. 30, 2019 |
Derivative Financial Instrume56
Derivative Financial Instruments and Hedging Activities (Details 2) - Recurring [Member] $ in Thousands | Nov. 30, 2017USD ($) |
Assets: | |
Forward foreign exchange contracts, Assets | $ 18,731 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (9,640) |
Total | 9,091 |
Level 2 | |
Assets: | |
Forward foreign exchange contracts, Assets | 18,731 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (9,640) |
Total | $ 9,091 |
Derivative Financial Instrume57
Derivative Financial Instruments and Hedging Activities (Details 3) - Prepaid expenses and other current assets - Forward foreign exchange contracts - USD ($) $ in Thousands | Nov. 30, 2017 | Aug. 31, 2017 |
Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | $ 6,403 | $ 8,380 |
Forward foreign exchange contracts, Liability Derivatives | 252 | 1,408 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | 12,328 | 31,280 |
Forward foreign exchange contracts, Liability Derivatives | $ 9,388 | $ 9,131 |
Restructuring and Related Cha58
Restructuring and Related Charges (Summary) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | [1],[2] | $ 11,388 | $ 35,902 |
Employee severance and benefit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 3,977 | 19,386 | |
Lease costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 3,291 | ||
Asset write-off costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 6,812 | 12,640 | |
Other related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 599 | $ 585 | |
[1] | (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. | ||
[2] | (2) Primarily relates to the 2017 Restructuring Plan. |
Restructuring and Related Cha59
Restructuring and Related Charges (Additional Information) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | [1],[2] | $ 11,388 | $ 35,902 |
2017 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Total pre-tax restructuring and other related costs expected to be recognized | 195,000 | ||
Restructuring related charges to date | 164,600 | ||
EMS [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 5,900 | 7,400 | |
DMS [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 4,600 | 11,500 | |
Non-allocated charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 900 | $ 17,000 | |
[1] | (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. | ||
[2] | (2) Primarily relates to the 2017 Restructuring Plan. |
Restructuring and Related Cha60
Restructuring and Related Charges (Liability Activity) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning Balance | $ 38,388 | ||
Restructuring and related charges | [1],[2] | 11,388 | $ 35,902 |
Asset write-off charge and other non-cash activity | (6,935) | ||
Cash payments | (11,289) | ||
Liability, Ending Balance | 31,552 | ||
Employee severance and benefit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning Balance | 33,580 | ||
Restructuring and related charges | 3,977 | 19,386 | |
Asset write-off charge and other non-cash activity | (123) | ||
Cash payments | (9,856) | ||
Liability, Ending Balance | 27,578 | ||
Lease costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning Balance | 1,665 | ||
Restructuring and related charges | 3,291 | ||
Cash payments | (69) | ||
Liability, Ending Balance | 1,596 | ||
Asset write-off costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning Balance | 0 | ||
Restructuring and related charges | 6,812 | $ 12,640 | |
Cash payments | (6,812) | ||
Liability, Ending Balance | 0 | ||
Other Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, Beginning Balance | 3,143 | ||
Restructuring and related charges | 599 | ||
Cash payments | (1,364) | ||
Liability, Ending Balance | $ 2,378 | ||
[1] | (1 ) Includes $ 5.9 million and $ 7.4 million recorded in the EMS segment, $ 4.6 million and $ 11.5 million recorded in the DMS segment and $ 0.9 million and $ 17.0 million of non-allocated charges for the three months ended November 30 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. | ||
[2] | (2) Primarily relates to the 2017 Restructuring Plan. |
Business Acquisitions (Addition
Business Acquisitions (Additional Information) (Details 1) - True-Tech [Member] - USD ($) $ in Millions | Sep. 02, 2017 | Sep. 01, 2017 |
Business Acquisition [Line Items] | ||
Amount of cash paid for business acquisitions | $ 95.9 | |
Assets acquired | $ 114.4 | |
Intangible assets acquired | 25.9 | |
Liabilities assumed | $ 18.5 | |
Goodwill assumed | $ 22.3 | |
Date of acquisition | Sep. 1, 2017 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) | 3 Months Ended |
Nov. 30, 2017 | |
Income Taxes [Abstract] | |
U.S. federal statutory rate | 35.00% |