Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2018 | Jun. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 168,444,744 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 677,492 | $ 1,189,919 |
Accounts receivable, net of allowance for doubtful accounts of $11,084 as of May 31, 2018 and $14,134 as of August 31, 2017 | 1,586,685 | 1,397,424 |
Inventories, net | 3,343,782 | 2,942,083 |
Prepaid expenses and other current assets | 1,124,028 | 1,097,257 |
Total current assets | 6,731,987 | 6,626,683 |
Property, plant and equipment, net of accumulated depreciation of $3,547,148 as of May 31, 2018 and $3,125,390 as of August 31, 2017 | 3,127,083 | 3,228,678 |
Goodwill | 631,482 | 608,184 |
Intangible assets, net of accumulated amortization of $298,925 as of May 31, 2018 and $269,212 as of August 31, 2017 | 288,342 | 284,596 |
Deferred income taxes | 230,751 | 205,722 |
Other assets | 165,865 | 142,132 |
Total assets | 11,175,510 | 11,095,995 |
Current liabilities: | ||
Current installments of notes payable, long-term debt and capital lease obligations | 273,500 | 445,498 |
Accounts payable | 4,327,659 | 4,257,623 |
Accrued expenses | 1,980,266 | 2,167,472 |
Total current liabilities | 6,581,425 | 6,870,593 |
Notes payable, long-term debt and capital lease obligations, less current installments | 2,175,133 | 1,632,592 |
Other liabilities | 66,690 | 74,237 |
Income tax liabilities | 132,338 | 100,902 |
Deferred income taxes | 34,366 | 49,327 |
Total liabilities | 8,989,952 | 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 no shares outstanding | ||
Common stock, $0.001 par value, authorized 500,000,000 shares; 256,590,528 and 253,266,684 shares issued and 168,799,744 and 177,727,653 shares outstanding as of May 31, 2018 and August 31, 2017, respectively | 257 | 253 |
Additional paid-in capital | 2,191,406 | 2,104,203 |
Retained earnings | 1,830,921 | 1,730,893 |
Accumulated other comprehensive income | 25,932 | 54,620 |
Treasury stock at cost, 87,790,784 and 75,539,031 shares as of May 31, 2018 and August 31, 2017, respectively | (1,875,375) | (1,536,455) |
Total Jabil Inc. stockholders’ equity | 2,173,141 | 2,353,514 |
Noncontrolling interests | 12,417 | 14,830 |
Total equity | 2,185,558 | 2,368,344 |
Total liabilities and equity | $ 11,175,510 | $ 11,095,995 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 11,084 | $ 14,134 |
Property, plant and equipment, accumulated depreciation | 3,547,148 | 3,125,390 |
Intangible assets, accumulated amortization | $ 298,925 | $ 269,212 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 256,590,528 | 253,266,684 |
Common stock, shares outstanding | 168,799,744 | 177,727,653 |
Treasury stock, shares | 87,790,784 | 75,539,031 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Income Statement [Abstract] | ||||
Net revenue | $ 5,436,952 | $ 4,489,557 | $ 16,323,585 | $ 14,040,092 |
Cost of revenue | 5,038,725 | 4,163,142 | 15,058,940 | 12,920,267 |
Gross profit | 398,227 | 326,415 | 1,264,645 | 1,119,825 |
Operating expenses: | ||||
Selling, general and administrative | 252,487 | 233,884 | 789,482 | 665,879 |
Research and development | 10,082 | 7,274 | 27,535 | 21,982 |
Amortization of intangibles | 10,040 | 9,174 | 29,909 | 26,262 |
Restructuring and related charges | 12,647 | 32,700 | 29,462 | 113,529 |
Operating income | 112,971 | 43,383 | 388,257 | 292,173 |
Other expense | 10,139 | 15,821 | 26,506 | 23,872 |
Interest income | (4,499) | (3,663) | (13,323) | (8,407) |
Interest expense | 36,178 | 35,443 | 110,220 | 102,087 |
Income (loss) before income tax | 71,153 | (4,218) | 264,854 | 174,621 |
Income tax expense | 28,451 | 21,481 | 120,705 | 93,495 |
Net income (loss) | 42,702 | (25,699) | 144,149 | 81,126 |
Net income (loss) attributable to noncontrolling interests, net of tax | 161 | (418) | 505 | (2,285) |
Net income (loss) attributable to Jabil Inc. | $ 42,541 | $ (25,281) | $ 143,644 | $ 83,411 |
Earnings (loss) per share attributable to the stockholders of Jabil Inc.: | ||||
Basic (in dollars per share) | $ 0.25 | $ (0.14) | $ 0.83 | $ 0.46 |
Diluted (in dollars per share) | $ 0.25 | $ (0.14) | $ 0.81 | $ 0.45 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 170,514 | 181,038 | 174,013 | 182,982 |
Diluted (in shares) | 173,279 | 181,038 | 176,997 | 186,621 |
Cash dividends declared per common share (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 42,702 | $ (25,699) | $ 144,149 | $ 81,126 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | (40,640) | 11,727 | (19,720) | 15,231 |
Changes in fair value of derivative instruments, net of tax | (5,944) | (2,009) | 22,453 | 8,647 |
Reclassification of net (gains) losses realized and included in net income related to derivative instruments, net of tax | (13,890) | 201 | (28,974) | 11,595 |
Unrealized (loss) gain on available for sale securities | (202) | 4,548 | (2,016) | 10,192 |
Actuarial loss, net of tax | 0 | 0 | (431) | 0 |
Reclassification of losses on available for sale securities into net income | 0 | 10,139 | 0 | 10,139 |
Total other comprehensive (loss) income | (60,676) | 24,606 | (28,688) | 55,804 |
Comprehensive (loss) income | (17,974) | (1,093) | 115,461 | 136,930 |
Comprehensive income (loss) attributable to noncontrolling interests | 161 | (418) | 505 | (2,285) |
Comprehensive (loss) income attributable to Jabil Inc. | $ (18,135) | $ (675) | $ 114,956 | $ 139,215 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended May 31, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interests |
Beginning Balance (in shares) at Aug. 31, 2017 | 177,727,653 | 177,727,653 | |||||
Beginning Balance at Aug. 31, 2017 | $ 2,368,344 | $ 253 | $ 2,104,203 | $ 1,730,893 | $ 54,620 | $ (1,536,455) | $ 14,830 |
Shares issued upon exercise of stock options (in shares) | 29,688 | ||||||
Shares issued under employee stock purchase plan (in shares) | 575,777 | ||||||
Shares issued under employee stock purchase plan | 12,845 | $ 1 | 12,844 | ||||
Vesting of restricted stock awards (in shares) | 2,718,379 | ||||||
Vesting of restricted stock awards | $ 3 | (3) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (790,598) | ||||||
Purchases of treasury stock under employee stock plans | (22,526) | (22,526) | |||||
Treasury shares purchased (in shares) | (11,461,155) | ||||||
Treasury shares purchased | (316,394) | (316,394) | |||||
Recognition of stock-based compensation | 74,362 | 74,362 | |||||
Declared dividends | (43,616) | (43,616) | |||||
Comprehensive income | 115,461 | 143,644 | (28,688) | 505 | |||
Declared dividends to noncontrolling interest | (2,920) | (2,920) | |||||
Foreign currency adjustments attributable to noncontrolling interests | $ 2 | 2 | |||||
Ending Balance (in shares) at May. 31, 2018 | 168,799,744 | 168,799,744 | |||||
Ending Balance at May. 31, 2018 | $ 2,185,558 | $ 257 | $ 2,191,406 | $ 1,830,921 | $ 25,932 | $ (1,875,375) | $ 12,417 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 144,149 | $ 81,126 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 583,646 | 570,557 |
Restructuring and related charges | 14,838 | 58,613 |
Recognition of stock-based compensation expense and related charges | 74,977 | 33,377 |
Deferred income taxes | (39,762) | (44,916) |
Provision for allowance for doubtful accounts | 20,577 | 8,524 |
Other, net | (4,059) | 17,766 |
Change in operating assets and liabilities, exclusive of net assets acquired: | ||
Accounts receivable | (186,231) | (85,761) |
Inventories | (379,658) | (216,149) |
Prepaid expenses and other current assets | (32,981) | 100,397 |
Other assets | (21,542) | (28,852) |
Accounts payable, accrued expenses and other liabilities | 20,897 | 38,341 |
Net cash provided by operating activities | 194,851 | 533,023 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (819,167) | (482,739) |
Proceeds and advances from sale of property, plant and equipment | 246,370 | 43,437 |
Cash paid for business and intangible asset acquisitions, net of cash | (109,664) | (36,620) |
Other, net | (2,360) | (1,360) |
Net cash used in investing activities | (684,821) | (477,282) |
Cash flows from financing activities: | ||
Borrowings under debt agreements | 6,847,756 | 5,432,503 |
Payments toward debt agreements | (6,472,728) | (5,370,936) |
Payments to acquire treasury stock | (316,394) | (237,135) |
Dividends paid to stockholders | (44,274) | (45,550) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 12,844 | 11,246 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (22,526) | (11,558) |
Other, net | (11,876) | (1,496) |
Net cash used in financing activities | (7,198) | (222,926) |
Effect of exchange rate changes on cash and cash equivalents | (15,259) | (943) |
Net decrease in cash and cash equivalents | (512,427) | (168,128) |
Cash and cash equivalents at beginning of period | 1,189,919 | 912,059 |
Cash and cash equivalents at end of period | $ 677,492 | $ 743,931 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
May 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. The Company has made certain reclassification adjustments to conform prior periods' Condensed Consolidated Financial Statements to the current presentation. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in the Annual Report on Form 10-K of Jabil Inc. (the “Company”) for the fiscal year ended August 31, 2017 . Results for the nine months ended May 31, 2018 are not necessarily an indication of the results that may be expected for the full fiscal year ending August 31, 2018 . |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 9 Months Ended |
May 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Dividends | Earnings Per Share and Dividends Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to 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 diluted 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 Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Stock appreciation rights — 514 — 334 Restricted stock awards 2,129 9,490 2,136 4,561 Dividends The following table sets forth cash dividends declared by the Company to common stockholders during the nine months ended May 31, 2018 and 2017 (in thousands, except for per share data): Dividend Declaration Date Dividend per Share Total of Cash Dividends Declared Date of Record for Dividend Payment Dividend Cash Payment Date Fiscal Year 2018: October 19, 2017 $ 0.08 $ 14,588 November 15, 2017 December 1, 2017 January 25, 2018 $ 0.08 $ 14,272 February 15, 2018 March 1, 2018 April 19, 2018 $ 0.08 $ 13,991 May 15, 2018 June 1, 2018 Fiscal Year 2017: October 20, 2016 $ 0.08 $ 15,248 November 15, 2016 December 1, 2016 January 26, 2017 $ 0.08 $ 15,051 February 15, 2017 March 1, 2017 April 20, 2017 $ 0.08 $ 14,840 May 15, 2017 June 1, 2017 |
Inventories
Inventories | 9 Months Ended |
May 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): May 31, 2018 August 31, 2017 Raw materials $ 1,886,967 $ 1,574,241 Work in process 832,153 822,628 Finished goods 682,517 591,227 Reserve for excess and obsolete inventory (57,855 ) (46,013 ) Inventories, net $ 3,343,782 $ 2,942,083 |
Stock-Based Compensation and Sh
Stock-Based Compensation and Shares Repurchases | 9 Months Ended |
May 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Shares Repurchases | Stock-Based Compensation and Share Repurchases The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Restricted stock and stock appreciation rights $ 13,457 $ 16,829 $ 69,916 $ 28,539 Employee stock purchase plan 1,581 1,521 5,368 4,838 Other (1) — — 7,538 — Total $ 15,038 $ 18,350 $ 82,822 $ 33,377 (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. As of May 31, 2018 , the shares available to be issued under the 2011 Stock Award and Incentive Plan were 12,777,424 . 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 performance-based restricted stock units have a vesting condition that is based upon the Company's cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200% , depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company's stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the nine months ended May 31, 2018 and 2017 , the Company awarded approximately 1.4 million and 1.8 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 Compensation 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 resulted in approximately $24.9 million of stock-based compensation expense recognized. The following represents the stock-based compensation information for the period indicated (in thousands): May 31, 2018 Unrecognized stock-based compensation expense—restricted stock $ 55,225 Remaining weighted-average period for restricted stock expense 1.5 years Share Repurchases 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 . As of May 31, 2018 , 11.5 million shares had been repurchased for $316.2 million and $133.8 million remains available under the 2017 Share Repurchase Program. In June 2018, the Company's Board of Directors authorized the repurchase of up to $350.0 million of the Company's common stock (the "2018 Share Repurchase Program"). The 2018 Share Repurchase Program expires August 31, 2019. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 9 Months Ended |
May 31, 2018 | |
Segment Reporting [Abstract] | |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the nine months ended May 31, 2018 , the Company’s five largest customers accounted for approximately 50% of its net revenue and 77 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 single source. Segment Data Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. 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 related charges, goodwill impairment charges, business interruption and impairment charges, net, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense, interest income, interest expense, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests. Total segment assets are defined as accounts receivable, inventories, net, customer-related property, plant and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which the Company would transact with third parties. The following tables set forth operating segment information (in thousands): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Net revenue EMS $ 3,161,626 $ 2,819,711 $ 8,894,174 $ 8,205,812 DMS 2,275,326 1,669,846 7,429,411 5,834,280 $ 5,436,952 $ 4,489,557 $ 16,323,585 $ 14,040,092 Segment income and reconciliation of income before income tax EMS $ 121,563 $ 109,783 $ 302,556 $ 297,418 DMS 28,499 4,022 253,322 178,121 Total segment income $ 150,062 $ 113,805 $ 555,878 $ 475,539 Reconciling items: Amortization of intangibles (10,040 ) (9,174 ) (29,909 ) (26,262 ) Stock-based compensation expense and related charges (15,038 ) (18,350 ) (82,822 ) (33,377 ) Restructuring and related charges (12,647 ) (32,700 ) (29,462 ) (113,529 ) Distressed customer charge — (10,198 ) (14,706 ) (10,198 ) Business interruption and impairment charges, net 634 — (10,722 ) — Other expense (10,139 ) (15,821 ) (26,506 ) (23,872 ) Interest income 4,499 3,663 13,323 8,407 Interest expense (36,178 ) (35,443 ) (110,220 ) (102,087 ) Income (loss) before income tax $ 71,153 $ (4,218 ) $ 264,854 $ 174,621 May 31, 2018 August 31, 2017 Total assets EMS $ 3,378,703 $ 2,778,820 DMS 5,144,452 5,290,468 Other non-allocated assets 2,652,355 3,026,707 $ 11,175,510 $ 11,095,995 As of May 31, 2018 , 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 91.2% and 91.8% of net revenue during the three months and nine months ended May 31, 2018 , respectively, compared to 90.6% and 91.3% of net revenue during the three months and nine months ended May 31, 2017 , respectively . |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Capital Lease Obligations | 9 Months Ended |
May 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable, Long-Term Debt and Capital Lease Obligations | Notes Payable, Long-Term Debt and Capital Lease Obligations Notes payable, long-term debt and capital lease obligations outstanding as of May 31, 2018 and August 31, 2017 are summarized below (in thousands): Maturity Date May 31, August 31, 8.250% Senior Notes (1)(2)(3) Mar 15, 2018 $ — $ 399,506 5.625% Senior Notes (1)(2) Dec 15, 2020 397,772 397,104 4.700% Senior Notes (1)(2) Sep 15, 2022 497,187 496,696 4.900% Senior Notes (1) Jul 14, 2023 298,753 298,571 3.950% Senior Notes (1)(2)(3) Jan 12, 2028 494,092 — Borrowings under credit facilities (4) Nov 8, 2022 247,000 — Borrowings under loans (4) Nov 8, 2022 487,016 458,395 Capital lease obligations 26,813 27,818 Total notes payable, long-term debt and capital lease obligations 2,448,633 2,078,090 Less current installments of notes payable, long-term debt and capital lease obligations 273,500 445,498 Notes payable, long-term debt and capital lease obligations, less current installments $ 2,175,133 $ 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 Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. (3) During the second quarter of fiscal year 2018 , the Company issued $500.0 million of publicly registered 3.950% Senior Notes due 2028 (the " 3.950% Senior Notes"). The net proceeds from the offering were used for general corporate purposes, including to redeem $400.0 million of the Company's outstanding 8.250% Senior Notes due 2018 and pay related costs and a "make-whole" premium. (4) On November 8, 2017, the Company entered into an amended and restated senior unsecured five -year credit agreement. The credit agreement provides for: (i) the Revolving Credit Facility in the initial amount of $1.8 billion , which may, subject to the lenders’ discretion, 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 Facility is subject to two whole or partial one -year extensions, at the lenders’ 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 & Poor’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the nine months ended May 31, 2018 , the interest rates 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 3.3% . 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. The 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. The Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of May 31, 2018 , the Company has $1.9 billion in available unused 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 certain covenants requiring the Company to offer to repurchase the 5.625% , 4.700% , 4.900% or 3.950% Senior Notes upon a change of control. As of May 31, 2018 and August 31, 2017 , the Company was in compliance with its debt covenants. Fair Value The estimated fair values of the Company’s publicly traded debt, including the 5.625% , 4.700% and 3.950% S enior N otes, were approximately $419.5 million , $514.1 million and $481.7 million , respectively, as of May 31, 2018 . 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% S enior N otes, was approximately $306.5 million , as of May 31, 2018 . This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows (Level 3 criteria). The carrying amounts of borrowings under credit facilities and under loans approximate fair value as interest rates on these instruments approximate current market rates. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 9 Months Ended |
May 31, 2018 | |
Transfers and Servicing [Abstract] | |
Trade Accounts Receivable Securitization and Sale Programs | Trade Accounts Receivable Securitization and Sale Programs The Company regularly sells designated pools of trade accounts receivable under two asset-backed securitization programs and seven uncommitted trade accounts receivable sale programs (collectively referred to herein as the “programs”). The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the programs. Servicing fees related to each of the programs recognized during the three months and nine months ended May 31, 2018 and 2017 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the programs are accounted for as sales and, accordingly, net receivables sold under the programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. 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”) to 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 significant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, the special purpose entities associated with these asset-backed securitization programs are included in the Company’s Condensed Consolidated Financial Statements. Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of (1) Expiration North American (2) $ 200.0 October 20, 2020 Foreign (3) $ 400.0 September 28, 2018 (1) Maximum amount available at any one time. (2) On November 9, 2017, the program was extended to October 20, 2020. (3) On April 19, 2018, the program was extended to September 28, 2018. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Eligible trade accounts receivable sold $ 1,913 $ 2,069 $ 6,362 $ 6,568 Cash proceeds received (1) $ 1,379 $ 1,565 $ 5,821 $ 6,060 Pre-tax losses on sale of receivables (2) $ 4 $ 3 $ 11 $ 7 Deferred purchase price receivables as of May 31 (3) $ 530 $ 501 $ 530 $ 501 (1) For the three months and nine months ended May 31, 2018 and 2017 , 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) Recorded initially at fair value as prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets and are valued using unobservable inputs (Level 3 inputs), primarily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on the fair value calculations. The asset-backed securitization programs require compliance with several covenants. The North American asset-based securitization program covenants include compliance with the interest ratio and debt to EBITDA ratio of the Credit Facility. The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. As of May 31, 2018 and August 31, 2017 , the Company was in compliance with all covenants under the asset-backed securitization programs. Trade Accounts Receivable Sale Programs The following is a summary of the seven trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase , at a discount, on an ongoing basis: Program Maximum Amount (in millions) (1) Type of Facility Expiration Date A $ 650.0 Uncommitted August 31, 2022 (2) B $ 150.0 Uncommitted August 31, 2018 C 800.0 CNY Uncommitted February 13, 2019 D $ 100.0 Uncommitted May 4, 2023 (3)(4) E $ 50.0 Uncommitted August 25, 2018 F $ 150.0 Uncommitted January 25, 2019 (5)(6) G $ 50.0 Uncommitted February 23, 2023 (2)(6) (1) Maximum amount available at any one time. (2) Any party may elect to terminate the agreement upon 15 days prior notice. (3) On May 4, 2018, the program was extended to May 4, 2023. (4) Any party may elect to terminate the agreement upon 30 days prior notice. (5) The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination. (6) Maximum amount was increased on April 24, 2018. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Trade accounts receivable sold (1) $ 1,301 $ 539 $ 4,035 $ 2,194 Cash proceeds received $ 1,296 $ 538 $ 4,025 $ 2,190 (1) The resulting losses on the sales of trade accounts receivable during the three months and nine months ended May 31, 2018 and 2017 were not material and were recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
May 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component from August 31, 2017 to May 31, 2018 (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 (loss) income before reclassifications (19,720 ) 22,453 (431 ) — (2,016 ) 286 Amounts reclassified from AOCI — (28,974 ) — — — (28,974 ) Other comprehensive (loss) income (19,720 ) (6,521 ) (431 ) — (2,016 ) (28,688 ) Balance as of May 31, 2018 $ 37,862 $ 23,446 $ (33,646 ) $ 889 $ (2,619 ) $ 25,932 (1) There is no tax benefit (expense) related to the foreign currency translation adjustment components of AOCI, including reclassification adjustments, for the three months and nine months ended May 31, 2018 . (2) $10.0 million of AOCI reclassified into earnings during the nine months ended May 31, 2018 for derivative instruments was classified as a reduction of income tax expense. The remaining amount reclassified into earnings was primarily classified as a component of cost of revenue. $4.8 million is expected to be reclassified into earnings during the next three months and will be classified as a 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 and nine months ended May 31, 2018 . (3) There is no tax benefit (expense) related to the available for sale securities components of AOCI, including reclassification adjustments, for the three months and nine months ended May 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
May 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 relate 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 and $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 audits with respect to these types of transactions. At this time, anticipating the amount of any future IRS proposed adjustments, interest and penalties is not practicable. The Company disagrees with the proposed adjustments and intends to vigorously contest these matters through the applicable IRS administrative and judicial procedures, as appropriate. As the final resolution of the proposed adjustments remains uncertain, the Company continues to provide for the uncertain tax positions based on the more likely than not standard. 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 | 9 Months Ended |
May 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, where deemed appropriate, uses derivatives as risk management tools to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency risk and interest rate risk. Foreign Currency Risk Management Forward contracts are put in place to manage the foreign currency risk associated with the anticipated foreign currency denominated revenues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $252.3 million and $314.6 million as of May 31, 2018 and August 31, 2017 , respectively. The related forward foreign exchange contracts have been designated as hedging instruments and are accounted for as cash flow hedges. The forward foreign exchange contract transactions will effectively lock in the value of anticipated foreign currency denominated revenues and expenses against foreign currency fluctuations. The anticipated foreign currency denominated revenues and expenses being hedged are expected to occur between June 1, 2018 and February 28, 2019 . In addition to derivatives that are designated as hedging instruments and qualify for hedge accounting, the Company also enters into forward contracts to economically hedge transactional exposure associated with commitments arising from trade accounts receivable, trade accounts payable, fixed purchase obligations and intercompany transactions denominated in a currency other than the functional currency of the respective operating entity. The aggregate notional amount of these outstanding contracts as of May 31, 2018 and August 31, 2017 , was $2.2 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 as of May 31, 2018 , 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 $ — 13,662 — $ 13,662 Liabilities: Forward foreign exchange contracts — (31,847 ) — (31,847 ) Total $ — (18,185 ) — $ (18,185 ) 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 as of May 31, 2018 and August 31, 2017 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value as of Fair Value as of Balance Sheet Location Fair Value as of Fair Value as of Derivatives designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 7,022 $ 8,380 Accrued expenses $ 9,607 $ 1,408 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 6,640 $ 31,280 Accrued expenses $ 22,240 $ 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 , which are the same line items in which the hedged items are recorded . During the three months and nine months ended May 31 , 2018, the Company recognized $27.2 million and $59.8 million , respectively, in foreign currency losses, which were offset by $41.2 million and $92.2 million of gains, respectively, from related forward contracts. Both the foreign currency losses and gains from forward contracts were recognized in cost of revenue. For the three months and nine months ended May 31 , 2017 , the amounts were immaterial 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 interest rate swap transactions to hedge the fixed interest rate payments for an anticipated debt issuance, which was the issuance of the 3.950% Senior Notes. The swaps were accounted for as a cash flow hedge and had a notional amount of $200.0 million . Concurrently with the pricing of the 3.950% Senior Notes, in the second quarter of fiscal year 2018 the Company settled the swaps. The fair value of the cash received for the swaps at settlement was $17.2 million . The effective portion of the swaps is recorded in the Company’s Consolidated Balance Sheets as a component of AOCI and is amortized as a reduction to interest expense in the Company’s Consolidated Statements of Operations through January 2028. The effective portions of the swaps amortized to interest expense during the three months and nine months ended May 31 , 2018 was not material. During the fourth quarter of fiscal year 2016, the Company entered into interest rate swap transactions to hedge the variable interest rate payments for the Term Loan Facility. In connection with this transaction, the Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receive s variable rate interest payments based on the one-month LIBOR. The interest rate swaps have an aggregate notional amount of $200.0 million and have been designated as hedging instruments and 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 in the Company’s Condensed Consolidated Balance Sheets as a component of AOCI. |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
May 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | Restructuring and Related Charges Following is a summary of the Company’s restructuring and related charges (in thousands): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Employee severance and benefit costs $ 5,058 $ 18,171 $ 11,048 $ 46,654 Lease costs 1,589 1,151 1,596 5,600 Asset write-off costs 5,575 11,838 14,838 58,613 Other related costs 425 1,540 1,980 2,662 Total restructuring and related charges (1)(2) $ 12,647 $ 32,700 $ 29,462 $ 113,529 (1) Includes $4.6 million and $12.4 million recorded in the EMS segment, $5.8 million and $17.8 million recorded in the DMS segment and $2.2 million and $2.5 million of non-allocated charges for the three months ended May 31, 2018 and 2017 , respectively. Includes $12.6 million and $23.8 million recorded in the EMS segment, $13.8 million and $65.8 million recorded to the DMS segment and $3.1 million and $23.9 million of non-allocated charges for the nine months ended May 31, 2018 and 2017 , 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 September 15, 2016, the Company’s Board of Directors formally approved a restructuring plan to better align the Company’s global capacity and administrative support infrastructure to further optimize organizational effectiveness. This action includes headcount reductions across the Company’s selling, general and administrative cost base and capacity realignment in higher cost locations (the “2017 Restructuring Plan”). Upon completion of the 2017 Restructuring Plan, the Company expects to recognize approximately $195.0 million in restructuring and other related costs. The Company has incurred $180.2 million in costs-to-date as of May 31, 2018 . The remaining costs for employee severance and benefit costs, asset write-off costs and other related costs are anticipated to be incurred through the first half of fiscal year 2019 . The tables below summarize the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands): Employee Severance and Benefit Costs Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2017 $ 33,580 $ 1,665 $ — $ 3,143 $ 38,388 Restructuring related charges 11,048 1,596 14,838 1,980 29,462 Asset write-off charge and other non-cash activity (56 ) 525 (14,838 ) 18 (14,351 ) Cash payments (25,512 ) (437 ) — (3,272 ) (29,221 ) Balance as of May 31, 2018 $ 19,060 $ 3,349 $ — $ 1,869 $ 24,278 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
May 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On September 1, 2017 , the Company completed the acquisition of True-Tech Corporation (“True-Tech”) for approximately $95.9 million in cash. True-Tech is a manufacturer specializing in aerospace, semiconductor and medical machined components. The acquisition of True-Tech assets has been accounted for as a business combination using the acquisition method of accounting. Assets acquired of $114.7 million , including $25.9 million in intangible assets and $22.6 million in goodwill, and liabilities assumed of $18.8 million were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired assets and assumed liabilities was recorded to goodwill and was fully allocated to the EMS segment. The majority of the goodwill is currently expected to be deductible for income tax purposes. The results of operations were included in the Company’s 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 | 9 Months Ended |
May 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | 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 recognition guidance under current U.S. GAAP. The new standard is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The accounting standard is effective for the Company in the first quarter of fiscal year 2019. Companies may use either a full retrospective or a modified retrospective approach to adopt this standard. 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. Additionally, 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 Company 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. During fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 , and must be applied by means of a cumulative-effect adjustment to the Consolidated Balance Sheet as of the beginning of the fiscal year of adoption and applied prospectively to equity investments that exist as of the date of adoption of the standard. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2016, the FASB issued a new accounting standard revising lease accounting. The new guidance requires organizations to recognize lease assets and lease liabilities on the Consolidated Balance Sheet and disclose key information regarding leasing arrangements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early application of the new standard is permitted and the standard must be adopted using a modified retrospective approach. The adoption of this standard will impact the Company’s Consolidated Balance Sheet. The Company is currently assessing any other impacts this new standard will have on its Consolidated Financial Statements. During fiscal year 2016, the FASB issued an accounting standard, which replaces the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 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 presentation of certain transactions within the statement of cash flows with the objective of reducing the existing diversity in practice. Adoption of this standard will be required on a retrospective basis and will result in a reclassification of cash flows from operating activities to investing activities in the Company’s Consolidated Statement of Cash Flows for cash receipts for the deferred purchase price receivable on asset-backed securitization transactions. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019. While the Company is still quantifying the impact of this standard, it expects a material increase in cash flow from investing activities with a corresponding decrease to cash flow from operating activities upon adoption of the standard. During fiscal year 2017, the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 . This guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2017, the FASB issued a new accounting standard which clarifies the scope of accounting for asset derecognition and adds further guidance for recognizing gains and losses from the transfer of non-financial assets in contracts with non-customers. This guidance 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 the related disclosures in its financial statements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The guidance must be applied using a modified retrospective approach. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect the Company’s fiscal year ending August 31, 2018. The Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company has applied SAB 118, recorded a provisional estimate related to certain effects of the Tax Act, and provided required disclosures in Note 14 – “Income Taxes.” During the second quarter of fiscal year 2018, the FASB issued a new accounting standard which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. Recently issued accounting guidance not discussed above is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Income Taxes
Income Taxes | 9 Months Ended |
May 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Act, enacted December 22, 2017, reduced the corporate tax rate, limited or eliminated certain tax deductions, and changed the taxation of foreign earnings of U.S. multinational companies. The enacted changes include a mandatory income inclusion of the historically untaxed foreign earnings of a U.S. company’s foreign subsidiaries and will tax such income at reduced tax rates (“mandatory deemed repatriation tax”). During the second quarter of 2018, the Company made reasonable estimates related to certain impacts of the Tax Act and, in accordance with SAB 118, recorded a provisional income tax expense of $30.9 million . This provisional expense is mainly comprised of the one-time mandatory deemed repatriation tax that will be paid over eight years as well as the re-measurement of the Company’s U.S. deferred tax attributes. The calculation of the mandatory deemed repatriation tax is based upon preliminary estimates of post-1986 earnings and profits and tax pools, utilization of U.S. federal net operating losses and tax credits , and the amounts of foreign earnings held in cash and non-cash assets. As of May 31, 2018, the Company continues to believe $30.9 million is a reasonable estimate related to Tax Reform based on the analys e s, interpretations and guidance available at this time. As a result of the mandatory deemed repatriation tax, the Company will have a substantial amount of previously taxed earnings that can be distributed to the U.S. without additional U.S. taxation. Additionally, the Tax Act provides for a 100% dividends received deduction for dividends received by U.S. corporations from 10-percent or more owned foreign corporations. Therefore, the Company is analyzing its indefinite reinvestment assertion and cash repatriation plan. The Company has made no adjustments to its financial statements in the current quarter with respect to its indefinite reinvestment assertion, but may do so during the measurement period. A change in assertion could result in a material deferred tax liability associated with foreign withholding taxes that would be incurred upon such future remittances of cash. Additionally, the Company is still evaluating the Global Intangible Low-Taxed Income ("GILTI") provisions and the associated election to record its effects as a period cost or a component of deferred taxes. The final impact of the Tax Act may differ from the Company’s estimates due to, among other items, additional regulatory guidance that may be issued, changes in interpretations and assumptions, and finalization of calculations of the impact of the Tax Act, including the on-going analysis of U.S. tax attributes, re-measurement of the Company's U.S. deferred tax attributes and the computation of earnings and profits and tax pools of the Company’s foreign subsidiaries. The Company also continues to evaluate its indefinite reinvestment assertion regarding undistributed earnings and profits as a result of the Tax Act. As the Company finalizes the accounting for the tax effects of the enactment of the Tax Act during the measurement period, the Company will reflect adjustments to the provisional amounts recorded and record additional tax effects in the periods such adjustments are identified. The Company has not completed its accounting for any aspect of the Tax Act. As a result of the Tax Act, the Company will be subject to a blended U.S. federal tax rate of 25.7% for the current fiscal year and a 21.0% U.S. federal tax rate for future years. The effective tax rate differed from the blended U.S. federal statutory rate of 25.7% during the nine months ended May 31, 2018 primarily due to the Tax Act, including the one-time mandatory deemed repatriation tax and the re-measurement of the Company’s U.S. deferred tax attributes of $30.9 million , partially offset by a reduction in unrecognized tax benefits of $16.1 million for the lapse of statute in a non-U.S. jurisdiction. Other primary drivers for the difference between the effective tax rate and the blended U.S. federal statutory rate of 25.7% during the three months and nine months ended May 31 , 2018 and 2017 are: (i ) tax incentives granted to sites in Brazil, China, Malaysia, Singapore and Vietnam; and (ii ) losses in tax jurisdictions with existing valuation allowances, including losses from stock-based compensation for the nine months ended May 31 , 2018 and losses from restructuring costs for the three months and nine months ended May 31, 2017. |
Subsequent Events
Subsequent Events | 9 Months Ended |
May 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events that occurred through the date of the filing of the Company’s third quarter of fiscal year 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 Guidance (Polici
New Accounting Guidance (Policies) | 9 Months Ended |
May 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued 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 recognition guidance under current U.S. GAAP. The new standard is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The accounting standard is effective for the Company in the first quarter of fiscal year 2019. Companies may use either a full retrospective or a modified retrospective approach to adopt this standard. 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. Additionally, 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 Company 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. During fiscal year 2016, the FASB issued a new accounting standard to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 , and must be applied by means of a cumulative-effect adjustment to the Consolidated Balance Sheet as of the beginning of the fiscal year of adoption and applied prospectively to equity investments that exist as of the date of adoption of the standard. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2016, the FASB issued a new accounting standard revising lease accounting. The new guidance requires organizations to recognize lease assets and lease liabilities on the Consolidated Balance Sheet and disclose key information regarding leasing arrangements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early application of the new standard is permitted and the standard must be adopted using a modified retrospective approach. The adoption of this standard will impact the Company’s Consolidated Balance Sheet. The Company is currently assessing any other impacts this new standard will have on its Consolidated Financial Statements. During fiscal year 2016, the FASB issued an accounting standard, which replaces the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021 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 presentation of certain transactions within the statement of cash flows with the objective of reducing the existing diversity in practice. Adoption of this standard will be required on a retrospective basis and will result in a reclassification of cash flows from operating activities to investing activities in the Company’s Consolidated Statement of Cash Flows for cash receipts for the deferred purchase price receivable on asset-backed securitization transactions. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019. While the Company is still quantifying the impact of this standard, it expects a material increase in cash flow from investing activities with a corresponding decrease to cash flow from operating activities upon adoption of the standard. During fiscal year 2017, the FASB issued a new accounting standard to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard eliminates the exception for an intra-entity transfer of an asset other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. This guidance is effective for the Company beginning in the first quarter of fiscal year 2019 . This guidance should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. During fiscal year 2017, the FASB issued a new accounting standard which clarifies the scope of accounting for asset derecognition and adds further guidance for recognizing gains and losses from the transfer of non-financial assets in contracts with non-customers. This guidance 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 the related disclosures in its financial statements. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The guidance must be applied using a modified retrospective approach. The adoption of this standard is not expected to have a material impact on the Company's Consolidated Financial Statements; however, the impact on future periods will depend on the facts and circumstances of future transactions. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect the Company’s fiscal year ending August 31, 2018. The Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company has applied SAB 118, recorded a provisional estimate related to certain effects of the Tax Act, and provided required disclosures in Note 14 – “Income Taxes.” During the second quarter of fiscal year 2018, the FASB issued a new accounting standard which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. This guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently assessing the impact this new standard may have on its Consolidated Financial Statements. Recently issued accounting guidance not discussed above is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Earnings Per Share and Divide24
Earnings Per Share and Dividends (Tables) | 9 Months Ended |
May 31, 2018 | |
Earnings Per Share [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 Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Stock appreciation rights — 514 — 334 Restricted stock awards 2,129 9,490 2,136 4,561 |
Cash dividends declared to common stockholders | The following table sets forth cash dividends declared by the Company to common stockholders during the nine months ended May 31, 2018 and 2017 (in thousands, except for per share data): Dividend Declaration Date Dividend per Share Total of Cash Dividends Declared Date of Record for Dividend Payment Dividend Cash Payment Date Fiscal Year 2018: October 19, 2017 $ 0.08 $ 14,588 November 15, 2017 December 1, 2017 January 25, 2018 $ 0.08 $ 14,272 February 15, 2018 March 1, 2018 April 19, 2018 $ 0.08 $ 13,991 May 15, 2018 June 1, 2018 Fiscal Year 2017: October 20, 2016 $ 0.08 $ 15,248 November 15, 2016 December 1, 2016 January 26, 2017 $ 0.08 $ 15,051 February 15, 2017 March 1, 2017 April 20, 2017 $ 0.08 $ 14,840 May 15, 2017 June 1, 2017 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
May 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): May 31, 2018 August 31, 2017 Raw materials $ 1,886,967 $ 1,574,241 Work in process 832,153 822,628 Finished goods 682,517 591,227 Reserve for excess and obsolete inventory (57,855 ) (46,013 ) Inventories, net $ 3,343,782 $ 2,942,083 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
May 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Recognized stock-based compensation expense within selling, general and administrative expense | The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Restricted stock and stock appreciation rights $ 13,457 $ 16,829 $ 69,916 $ 28,539 Employee stock purchase plan 1,581 1,521 5,368 4,838 Other (1) — — 7,538 — Total $ 15,038 $ 18,350 $ 82,822 $ 33,377 (1) Represents a one-time cash-settled stock award that vested on November 30, 2017. |
Share-based compensation information | The following represents the stock-based compensation information for the period indicated (in thousands): May 31, 2018 Unrecognized stock-based compensation expense—restricted stock $ 55,225 Remaining weighted-average period for restricted stock expense 1.5 years |
Concentration of Risk and Seg27
Concentration of Risk and Segment Data (Tables) | 9 Months Ended |
May 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of revenue from segments to consolidated | The following tables set forth operating segment information (in thousands): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Net revenue EMS $ 3,161,626 $ 2,819,711 $ 8,894,174 $ 8,205,812 DMS 2,275,326 1,669,846 7,429,411 5,834,280 $ 5,436,952 $ 4,489,557 $ 16,323,585 $ 14,040,092 |
Reconciliation of operating profit (loss) from segments to consolidated | Segment income and reconciliation of income before income tax EMS $ 121,563 $ 109,783 $ 302,556 $ 297,418 DMS 28,499 4,022 253,322 178,121 Total segment income $ 150,062 $ 113,805 $ 555,878 $ 475,539 Reconciling items: Amortization of intangibles (10,040 ) (9,174 ) (29,909 ) (26,262 ) Stock-based compensation expense and related charges (15,038 ) (18,350 ) (82,822 ) (33,377 ) Restructuring and related charges (12,647 ) (32,700 ) (29,462 ) (113,529 ) Distressed customer charge — (10,198 ) (14,706 ) (10,198 ) Business interruption and impairment charges, net 634 — (10,722 ) — Other expense (10,139 ) (15,821 ) (26,506 ) (23,872 ) Interest income 4,499 3,663 13,323 8,407 Interest expense (36,178 ) (35,443 ) (110,220 ) (102,087 ) Income (loss) before income tax $ 71,153 $ (4,218 ) $ 264,854 $ 174,621 |
Reconciliation of assets from segment to consolidated | May 31, 2018 August 31, 2017 Total assets EMS $ 3,378,703 $ 2,778,820 DMS 5,144,452 5,290,468 Other non-allocated assets 2,652,355 3,026,707 $ 11,175,510 $ 11,095,995 |
Notes Payable, Long-Term Debt28
Notes Payable, Long-Term Debt and Capital Lease Obligations (Tables) | 9 Months Ended |
May 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes payable, long-term debt and capital lease obligations outstanding | Notes payable, long-term debt and capital lease obligations outstanding as of May 31, 2018 and August 31, 2017 are summarized below (in thousands): Maturity Date May 31, August 31, 8.250% Senior Notes (1)(2)(3) Mar 15, 2018 $ — $ 399,506 5.625% Senior Notes (1)(2) Dec 15, 2020 397,772 397,104 4.700% Senior Notes (1)(2) Sep 15, 2022 497,187 496,696 4.900% Senior Notes (1) Jul 14, 2023 298,753 298,571 3.950% Senior Notes (1)(2)(3) Jan 12, 2028 494,092 — Borrowings under credit facilities (4) Nov 8, 2022 247,000 — Borrowings under loans (4) Nov 8, 2022 487,016 458,395 Capital lease obligations 26,813 27,818 Total notes payable, long-term debt and capital lease obligations 2,448,633 2,078,090 Less current installments of notes payable, long-term debt and capital lease obligations 273,500 445,498 Notes payable, long-term debt and capital lease obligations, less current installments $ 2,175,133 $ 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 Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. (3) During the second quarter of fiscal year 2018 , the Company issued $500.0 million of publicly registered 3.950% Senior Notes due 2028 (the " 3.950% Senior Notes"). The net proceeds from the offering were used for general corporate purposes, including to redeem $400.0 million of the Company's outstanding 8.250% Senior Notes due 2018 and pay related costs and a "make-whole" premium. (4) On November 8, 2017, the Company entered into an amended and restated senior unsecured five -year credit agreement. The credit agreement provides for: (i) the Revolving Credit Facility in the initial amount of $1.8 billion , which may, subject to the lenders’ discretion, 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 Facility is subject to two whole or partial one -year extensions, at the lenders’ 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 & Poor’s Ratings Service, Moody’s Investors Service and Fitch Ratings. During the nine months ended May 31, 2018 , the interest rates 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 3.3% . 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. The 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. The Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders and a letter of credit fee based on the amount of outstanding letters of credit. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of May 31, 2018 , the Company has $1.9 billion in available unused borrowing capacity under its revolving credit facilities. |
Trade Accounts Receivable Sec29
Trade Accounts Receivable Securitization and Sale Programs (Tables) | 9 Months Ended |
May 31, 2018 | |
Transfers and Servicing [Abstract] | |
Asset-backed securitization programs and key terms | Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of (1) Expiration North American (2) $ 200.0 October 20, 2020 Foreign (3) $ 400.0 September 28, 2018 (1) Maximum amount available at any one time. (2) On November 9, 2017, the program was extended to October 20, 2020. (3) On April 19, 2018, the program was extended to September 28, 2018. |
Asset-backed securitization programs amounts recognized | In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Eligible trade accounts receivable sold $ 1,913 $ 2,069 $ 6,362 $ 6,568 Cash proceeds received (1) $ 1,379 $ 1,565 $ 5,821 $ 6,060 Pre-tax losses on sale of receivables (2) $ 4 $ 3 $ 11 $ 7 Deferred purchase price receivables as of May 31 (3) $ 530 $ 501 $ 530 $ 501 (1) For the three months and nine months ended May 31, 2018 and 2017 , 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) Recorded initially at fair value as prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets and are valued using unobservable inputs (Level 3 inputs), primarily discounted cash flows, and due to their credit quality and short-term maturity the fair values approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on the fair value calculations. |
Trade accounts receivable sale programs key terms | The following is a summary of the seven trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase , at a discount, on an ongoing basis: Program Maximum Amount (in millions) (1) Type of Facility Expiration Date A $ 650.0 Uncommitted August 31, 2022 (2) B $ 150.0 Uncommitted August 31, 2018 C 800.0 CNY Uncommitted February 13, 2019 D $ 100.0 Uncommitted May 4, 2023 (3)(4) E $ 50.0 Uncommitted August 25, 2018 F $ 150.0 Uncommitted January 25, 2019 (5)(6) G $ 50.0 Uncommitted February 23, 2023 (2)(6) (1) Maximum amount available at any one time. (2) Any party may elect to terminate the agreement upon 15 days prior notice. (3) On May 4, 2018, the program was extended to May 4, 2023. (4) Any party may elect to terminate the agreement upon 30 days prior notice. (5) The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination. (6) Maximum amount was increased on April 24, 2018. |
Trade accounts receivable sale programs amounts recognized | In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Trade accounts receivable sold (1) $ 1,301 $ 539 $ 4,035 $ 2,194 Cash proceeds received $ 1,296 $ 538 $ 4,025 $ 2,190 (1) The resulting losses on the sales of trade accounts receivable during the three months and nine months ended May 31, 2018 and 2017 were not material and were recorded to other expense within the Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
May 31, 2018 | |
Equity [Abstract] | |
Summary of changes in accumulated other comprehensive income | The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component from August 31, 2017 to May 31, 2018 (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 (loss) income before reclassifications (19,720 ) 22,453 (431 ) — (2,016 ) 286 Amounts reclassified from AOCI — (28,974 ) — — — (28,974 ) Other comprehensive (loss) income (19,720 ) (6,521 ) (431 ) — (2,016 ) (28,688 ) Balance as of May 31, 2018 $ 37,862 $ 23,446 $ (33,646 ) $ 889 $ (2,619 ) $ 25,932 (1) There is no tax benefit (expense) related to the foreign currency translation adjustment components of AOCI, including reclassification adjustments, for the three months and nine months ended May 31, 2018 . (2) $10.0 million of AOCI reclassified into earnings during the nine months ended May 31, 2018 for derivative instruments was classified as a reduction of income tax expense. The remaining amount reclassified into earnings was primarily classified as a component of cost of revenue. $4.8 million is expected to be reclassified into earnings during the next three months and will be classified as a 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 and nine months ended May 31, 2018 . (3) There is no tax benefit (expense) related to the available for sale securities components of AOCI, including reclassification adjustments, for the three months and nine months ended May 31, 2018 . |
Derivative Financial Instrume31
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
May 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [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 as of May 31, 2018 , 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 $ — 13,662 — $ 13,662 Liabilities: Forward foreign exchange contracts — (31,847 ) — (31,847 ) Total $ — (18,185 ) — $ (18,185 ) |
Fair value of derivative instruments located on consolidated balance sheets | The following table presents the fair values of the Company’s derivative instruments recorded in the Condensed Consolidated Balance Sheets as of May 31, 2018 and August 31, 2017 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value as of Fair Value as of Balance Sheet Location Fair Value as of Fair Value as of Derivatives designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 7,022 $ 8,380 Accrued expenses $ 9,607 $ 1,408 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 6,640 $ 31,280 Accrued expenses $ 22,240 $ 9,131 |
Restructuring and Related Cha32
Restructuring and Related Charges (Tables) | 9 Months Ended |
May 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Following is a summary of the Company’s restructuring and related charges (in thousands): Three months ended Nine months ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Employee severance and benefit costs $ 5,058 $ 18,171 $ 11,048 $ 46,654 Lease costs 1,589 1,151 1,596 5,600 Asset write-off costs 5,575 11,838 14,838 58,613 Other related costs 425 1,540 1,980 2,662 Total restructuring and related charges (1)(2) $ 12,647 $ 32,700 $ 29,462 $ 113,529 (1) Includes $4.6 million and $12.4 million recorded in the EMS segment, $5.8 million and $17.8 million recorded in the DMS segment and $2.2 million and $2.5 million of non-allocated charges for the three months ended May 31, 2018 and 2017 , respectively. Includes $12.6 million and $23.8 million recorded in the EMS segment, $13.8 million and $65.8 million recorded to the DMS segment and $3.1 million and $23.9 million of non-allocated charges for the nine months ended May 31, 2018 and 2017 , respectively. Except for asset write-off costs, all restructuring and related charges are cash costs. (2) Primarily relates to the 2017 Restructuring Plan. |
Liability activity, primarily associated with 2017 restructuring plan | The tables below summarize the Company’s liability activity, primarily associated with the 2017 Restructuring Plan (in thousands): Employee Severance and Benefit Costs Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2017 $ 33,580 $ 1,665 $ — $ 3,143 $ 38,388 Restructuring related charges 11,048 1,596 14,838 1,980 29,462 Asset write-off charge and other non-cash activity (56 ) 525 (14,838 ) 18 (14,351 ) Cash payments (25,512 ) (437 ) — (3,272 ) (29,221 ) Balance as of May 31, 2018 $ 19,060 $ 3,349 $ — $ 1,869 $ 24,278 |
Earnings Per Share and Divide33
Earnings Per Share and Dividends - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of diluted earnings per share | 2,129 | 9,490 | 2,136 | 4,561 |
Stock appreciation rights | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares excluded from computation of diluted earnings per share | 0 | 514 | 0 | 334 |
Earnings Per Share and Divide34
Earnings Per Share and Dividends - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2018 | May 31, 2017 |
Quarter One | ||
Dividends Payable [Line Items] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 14,588 | $ 15,248 |
Quarter Two | ||
Dividends Payable [Line Items] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 14,272 | $ 15,051 |
Quarter Three | ||
Dividends Payable [Line Items] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 13,991 | $ 14,840 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,886,967 | $ 1,574,241 |
Work in process | 832,153 | 822,628 |
Finished goods | 682,517 | 591,227 |
Reserve for excess and obsolete inventory | (57,855) | (46,013) |
Inventories, net | $ 3,343,782 | $ 2,942,083 |
Stock-Based Compensation and 36
Stock-Based Compensation and Shares Repurchases - Recognized Stock-Based Compensation Expense within Selling, General and Administrative Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Restricted stock and stock appreciation rights | $ 13,457 | $ 16,829 | $ 69,916 | $ 28,539 |
Employee stock purchase plan | 1,581 | 1,521 | 5,368 | 4,838 |
Other | 0 | 0 | 7,538 | 0 |
Total | $ 15,038 | $ 18,350 | $ 82,822 | $ 33,377 |
Stock-Based Compensation and 37
Stock-Based Compensation and Shares Repurchases - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 11 Months Ended | |||
Nov. 30, 2017 | May 31, 2018 | May 31, 2017 | May 31, 2018 | Jun. 28, 2018 | Jul. 31, 2017 | |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Stock-based compensation recognized for modification | $ 24,900,000 | |||||
2017 Share Repurchase Program | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Share repurchase program, amount authorized (up to) | $ 450,000,000 | |||||
Shares repurchased | 11,500,000 | |||||
Shares repurchased, value | $ 316,200,000 | $ 316,200,000 | ||||
Share repurchase program, remaining authorized repurchase amount | $ 133,800,000 | $ 133,800,000 | ||||
Time-based restricted stock units | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted stock units awarded (in shares) | 1,400,000 | 1,800,000 | ||||
Performance-based restricted stock units | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted stock units awarded (in shares) | 400,000 | 600,000 | ||||
Performance-based restricted stock units | Maximum | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Award vesting percentage | 150.00% | |||||
Market based restricted stock units | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Award vesting period | 3 years | |||||
Award vesting percentage | 200.00% | |||||
Restricted stock units awarded (in shares) | 400,000 | 400,000 | ||||
Restricted stock awards | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Awards vested (in shares) | 800,000 | |||||
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 | 12,777,424 | 12,777,424 | ||||
Subsequent Event | 2018 Share Repurchase Program | ||||||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||||||
Share repurchase program, amount authorized (up to) | $ 350,000,000 |
Stock-Based Compensation and 38
Stock-Based Compensation and Shares Repurchases - Stock-Based Compensation Information (Details) $ in Thousands | 9 Months Ended |
May 31, 2018USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized stock-based compensation expense—restricted stock | $ 55,225 |
Remaining weighted-average period for restricted stock expense | 1 year 6 months |
Concentration of Risk and Seg39
Concentration of Risk and Segment Data - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
May 31, 2018Country | May 31, 2017 | May 31, 2018CustomerCountry | May 31, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Number of operating countries | Country | 29 | 29 | ||
Net Revenue | Geographic Concentration Risk | Foreign | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 91.20% | 90.60% | 91.80% | 91.30% |
Five Largest Customers That Account for a Percentage of Net Revenue | Net Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Top customers that comprise revenue | 5 | |||
Concentration risk, percentage | 50.00% | |||
Group of Customers That Account for 90% of Net Revenue | Net Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Top customers that comprise revenue | 77 | |||
Concentration risk, percentage | 90.00% |
Concentration of Risk and Seg40
Concentration of Risk and Segment Data - Segment Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 5,436,952 | $ 4,489,557 | $ 16,323,585 | $ 14,040,092 |
EMS | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 3,161,626 | 2,819,711 | 8,894,174 | 8,205,812 |
DMS | Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | $ 2,275,326 | $ 1,669,846 | $ 7,429,411 | $ 5,834,280 |
Concentration of Risk and Seg41
Concentration of Risk and Segment Data - Segment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Reconciling items: | ||||
Amortization of intangibles | $ (10,040) | $ (9,174) | $ (29,909) | $ (26,262) |
Stock-based compensation expense and related charges | (15,038) | (18,350) | (82,822) | (33,377) |
Restructuring and related charges | (12,647) | (32,700) | (29,462) | (113,529) |
Other expense | (10,139) | (15,821) | (26,506) | (23,872) |
Interest income | 4,499 | 3,663 | 13,323 | 8,407 |
Interest expense | (36,178) | (35,443) | (110,220) | (102,087) |
Income (loss) before income tax | 71,153 | (4,218) | 264,854 | 174,621 |
Operating Segments | ||||
Reconciling items: | ||||
Income (loss) before income tax | 150,062 | 113,805 | 555,878 | 475,539 |
Segment Reconciling Items | ||||
Reconciling items: | ||||
Distressed customer charge | 0 | (10,198) | (14,706) | (10,198) |
Stock-based compensation expense and related charges | (15,038) | (18,350) | (82,822) | (33,377) |
Business interruption and impairment charges, net | 634 | 0 | (10,722) | 0 |
EMS | ||||
Reconciling items: | ||||
Restructuring and related charges | (4,600) | (12,400) | (12,600) | (23,800) |
EMS | Operating Segments | ||||
Reconciling items: | ||||
Income (loss) before income tax | 121,563 | 109,783 | 302,556 | 297,418 |
DMS | ||||
Reconciling items: | ||||
Restructuring and related charges | (5,800) | (17,800) | (13,800) | (65,800) |
DMS | Operating Segments | ||||
Reconciling items: | ||||
Income (loss) before income tax | $ 28,499 | $ 4,022 | $ 253,322 | $ 178,121 |
Concentration of Risk and Seg42
Concentration of Risk and Segment Data - Segment Assets (Details) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 11,175,510 | $ 11,095,995 |
Other non-allocated assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 2,652,355 | 3,026,707 |
EMS | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,378,703 | 2,778,820 |
DMS | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 5,144,452 | $ 5,290,468 |
Notes Payable, Long-Term Debt43
Notes Payable, Long-Term Debt and Capital Lease Obligations - Amounts Outstanding (Details) | Nov. 08, 2017USD ($)extension_option | Feb. 28, 2018USD ($) | May 31, 2018USD ($) | Aug. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Capital lease obligations | $ 26,813,000 | $ 27,818,000 | ||
Total notes payable, long-term debt and capital lease obligations | 2,448,633,000 | 2,078,090,000 | ||
Less current installments of notes payable, long-term debt and capital lease obligations | 273,500,000 | 445,498,000 | ||
Notes payable, long-term debt and capital lease obligations, less current installments | $ 2,175,133,000 | 1,632,592,000 | ||
Senior Notes | 8.250% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 8.25% | 8.25% | ||
Long-term debt | $ 0 | 399,506,000 | ||
Redemption of debt outstanding | $ 400,000,000 | |||
Senior Notes | 5.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 5.625% | |||
Long-term debt | $ 397,772,000 | 397,104,000 | ||
Senior Notes | 4.700% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 4.70% | |||
Long-term debt | $ 497,187,000 | 496,696,000 | ||
Senior Notes | 4.900% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 4.90% | |||
Long-term debt | $ 298,753,000 | 298,571,000 | ||
Senior Notes | 3.950% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 3.95% | 3.95% | ||
Long-term debt | $ 494,092,000 | 0 | ||
Debt issuance | $ 500,000,000 | |||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 247,000,000 | 0 | ||
Credit agreement term | 5 years | |||
Maximum borrowing capacity | $ 1,800,000,000 | |||
Revolving credit facility, accordion feature, increase limit | $ 2,300,000,000 | |||
Number of extension options | extension_option | 2 | |||
Extension term, maximum | 1 year | |||
Unused borrowing capacity | $ 1,900,000,000 | |||
Revolving Credit Facility | Minimum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate on debt instrument | 2.40% | |||
Revolving Credit Facility | Maximum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate on debt instrument | 4.40% | |||
Term Loan Facility | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 487,016,000 | $ 458,395,000 | ||
Maximum borrowing capacity | $ 500,000,000 | |||
Term Loan Facility | Minimum | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate on debt instrument | 2.60% | |||
Term Loan Facility | Maximum | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate on debt instrument | 3.30% | |||
Base Rate | Revolving Credit Facility | Minimum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 0.00% | |||
Base Rate | Revolving Credit Facility | Maximum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 0.575% | |||
Base Rate | Term Loan Facility | Minimum | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 0.125% | |||
Base Rate | Term Loan Facility | Maximum | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 0.875% | |||
Eurodollar | Revolving Credit Facility | Minimum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 0.975% | |||
Eurodollar | Revolving Credit Facility | Maximum | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 1.575% | |||
Eurodollar | Term Loan Facility | Minimum | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 1.125% | |||
Eurodollar | Term Loan Facility | Maximum | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 1.875% | |||
Federal Funds Effective Swap Rate | Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate above base rate | 1.00% |
Notes Payable, Long-Term Debt44
Notes Payable, Long-Term Debt and Capital Lease Obligations - Narrative (Details) - Senior Notes - USD ($) $ in Millions | May 31, 2018 | Feb. 28, 2018 |
4.900% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 4.90% | |
Estimated fair value of senior notes | $ 306.5 | |
5.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 5.625% | |
Estimated fair value of senior notes | $ 419.5 | |
4.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 4.70% | |
Estimated fair value of senior notes | $ 514.1 | |
3.950% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, stated interest rate | 3.95% | 3.95% |
Estimated fair value of senior notes | $ 481.7 |
Trade Accounts Receivable Sec45
Trade Accounts Receivable Securitization and Sale Programs - Narrative (Details) | 9 Months Ended |
May 31, 2018asset-backed_securitization_programuncommitted_trade_accounts_receivable_sale_program | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Number of asset-backed securitization programs | asset-backed_securitization_program | 2 |
Number of uncommitted trade accounts receivable sale programs | uncommitted_trade_accounts_receivable_sale_program | 7 |
Asset-Backed Securitization Programs | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Percentage of trade accounts receivable sold to conduits by special purpose entities | 100.00% |
Trade Accounts Receivable Sec46
Trade Accounts Receivable Securitization and Sale Programs - Asset-Backed Securitization Programs and Key Terms (Details) $ in Millions | May 31, 2018USD ($) |
North American | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 200 |
Foreign | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 400 |
Trade Accounts Receivable Sec47
Trade Accounts Receivable Securitization and Sale Programs - Asset-Backed Securitization Programs Amounts Recognized (Details) - Asset-Backed Securitization Programs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Eligible trade accounts receivable sold | $ 1,913 | $ 2,069 | $ 6,362 | $ 6,568 |
Cash proceeds received | 1,379 | 1,565 | 5,821 | 6,060 |
Pre-tax losses on sale of receivables | 4 | 3 | 11 | 7 |
Deferred purchase price receivables as of May 31 | $ 530 | $ 501 | $ 530 | $ 501 |
Trade Accounts Receivable Sec48
Trade Accounts Receivable Securitization and Sale Programs - Trade Accounts Receivable Sale Programs Key Terms (Details) - 9 months ended May 31, 2018 | CNY (¥) | USD ($) |
A | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | $ 650,000,000 | |
Notice period to cancel receivable sale agreements | 15 days | |
B | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | 150,000,000 | |
C | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | ¥ | ¥ 800,000,000 | |
D | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | 100,000,000 | |
Notice period to cancel receivable sale agreements | 30 days | |
E | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | 50,000,000 | |
F | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | 150,000,000 | |
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days | |
G | ||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Maximum Amount of Net Cash Proceeds | $ 50,000,000 | |
Notice period to cancel receivable sale agreements | 15 days |
Trade Accounts Receivable Sec49
Trade Accounts Receivable Securitization and Sale Programs - Trade Accounts Receivable Sale Programs Amounts Recognized (Details) - Trade Accounts Receivable Sale Programs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 1,301 | $ 539 | $ 4,035 | $ 2,194 |
Cash proceeds received | $ 1,296 | $ 538 | $ 4,025 | $ 2,190 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | Aug. 31, 2018 | May 31, 2018 | May 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ 2,368,344,000 | ||||
Other comprehensive (loss) income before reclassifications | 286,000 | ||||
Amounts reclassified from AOCI | (28,974,000) | ||||
Total other comprehensive (loss) income | $ (60,676,000) | $ 24,606,000 | (28,688,000) | $ 55,804,000 | |
Ending Balance | 2,185,558,000 | 2,185,558,000 | |||
Net tax benefit (expense) of foreign currency translation adjustment component of accumulated other comprehensive income | 0 | 0 | |||
Net tax benefit (expense) of available for sale securities component of accumulated other comprehensive income | 0 | 0 | |||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 57,582,000 | ||||
Other comprehensive (loss) income before reclassifications | (19,720,000) | ||||
Amounts reclassified from AOCI | 0 | ||||
Total other comprehensive (loss) income | (19,720,000) | ||||
Ending Balance | 37,862,000 | 37,862,000 | |||
Derivative Instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 29,967,000 | ||||
Other comprehensive (loss) income before reclassifications | 22,453,000 | ||||
Amounts reclassified from AOCI | (28,974,000) | ||||
Total other comprehensive (loss) income | (6,521,000) | ||||
Ending Balance | 23,446,000 | 23,446,000 | |||
Actuarial (Loss) Gain | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (33,215,000) | ||||
Other comprehensive (loss) income before reclassifications | (431,000) | ||||
Amounts reclassified from AOCI | 0 | ||||
Total other comprehensive (loss) income | (431,000) | ||||
Ending Balance | (33,646,000) | (33,646,000) | |||
Prior Service Cost | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 889,000 | ||||
Other comprehensive (loss) income before reclassifications | 0 | ||||
Amounts reclassified from AOCI | 0 | ||||
Total other comprehensive (loss) income | 0 | ||||
Ending Balance | 889,000 | 889,000 | |||
Available for Sale Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (603,000) | ||||
Other comprehensive (loss) income before reclassifications | (2,016,000) | ||||
Amounts reclassified from AOCI | 0 | ||||
Total other comprehensive (loss) income | (2,016,000) | ||||
Ending Balance | (2,619,000) | (2,619,000) | |||
AOCI Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 54,620,000 | ||||
Ending Balance | $ 25,932,000 | 25,932,000 | |||
Income Tax Expense | Derivative Instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Amounts reclassified from AOCI | $ 10,000,000 | ||||
Scenario, Forecast | Income Tax Expense | Derivative Instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Amounts reclassified from AOCI | $ 4,800,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | May 31, 2018USD ($) |
Fiscal Years 2009 Through 2011 | |
Loss Contingencies Line Items | |
Potential additional income tax payment due | $ 28.6 |
Fiscal Years 2012 through 2014 | |
Loss Contingencies Line Items | |
Potential additional income tax payment due | $ 5.3 |
Derivative Financial Instrume52
Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
May 31, 2018 | Feb. 28, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | Aug. 31, 2017 | Aug. 31, 2016 | |
Forward contracts | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount | $ 2,200 | $ 2,200 | $ 2,100 | ||||
Forward contracts | Forward foreign exchange contracts | Cash flow hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount | $ 252.3 | $ 252.3 | $ 314.6 | ||||
Anticipated debt issuance | Cash flow hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount | $ 200 | ||||||
Fair value of cash received for settlement of swaps | $ 17.2 | ||||||
Term Loan Facility | Cash flow hedging | |||||||
Derivative [Line Items] | |||||||
Aggregate notional amount | $ 200 | ||||||
Senior Notes | 3.950% Senior Notes | |||||||
Derivative [Line Items] | |||||||
Senior Notes, stated interest rate | 3.95% | 3.95% | 3.95% | ||||
Cost of revenue | |||||||
Derivative [Line Items] | |||||||
Foreign currency losses | $ 27.2 | $ 59.8 | |||||
Cost of revenue | Forward foreign exchange contracts | |||||||
Derivative [Line Items] | |||||||
Gain recognized due to changes in fair value of derivatives | $ 41.2 | $ 92.2 |
Derivative Financial Instrume53
Derivative Financial Instruments and Hedging Activities - Fair Value of Assets and Liabilities Related to Foreign Forward Exchange Contracts Measured on Recurring Basis (Details) - Recurring $ in Thousands | May 31, 2018USD ($) |
Assets: | |
Forward foreign exchange contracts, Assets | $ 13,662 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (31,847) |
Total | (18,185) |
Level 1 | |
Assets: | |
Forward foreign exchange contracts, Assets | 0 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | 0 |
Total | 0 |
Level 2 | |
Assets: | |
Forward foreign exchange contracts, Assets | 13,662 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | (31,847) |
Total | (18,185) |
Level 3 | |
Assets: | |
Forward foreign exchange contracts, Assets | 0 |
Liabilities: | |
Forward foreign exchange contracts, Liabilities | 0 |
Total | $ 0 |
Derivative Financial Instrume54
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Instruments Located on Consolidated Balance Sheets (Details) - Forward foreign exchange contracts - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | $ 7,022 | $ 8,380 |
Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | 9,607 | 1,408 |
Not Designated as Hedging Instrument | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Asset Derivatives | 6,640 | 31,280 |
Not Designated as Hedging Instrument | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Forward foreign exchange contracts, Liability Derivatives | $ 22,240 | $ 9,131 |
Restructuring and Related Cha55
Restructuring and Related Charges - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 12,647 | $ 32,700 | $ 29,462 | $ 113,529 |
Employee severance and benefit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 5,058 | 18,171 | 11,048 | 46,654 |
Lease costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 1,589 | 1,151 | 1,596 | 5,600 |
Asset write-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 5,575 | 11,838 | 14,838 | 58,613 |
Other related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 425 | 1,540 | 1,980 | 2,662 |
EMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 4,600 | 12,400 | 12,600 | 23,800 |
DMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 5,800 | 17,800 | 13,800 | 65,800 |
Non-allocated charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 2,200 | $ 2,500 | $ 3,100 | $ 23,900 |
Restructuring and Related Cha56
Restructuring and Related Charges - Narrative (Details) - 2017 Restructuring Plan $ in Millions | May 31, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | $ 195 |
Restructuring related charges to date | $ 180.2 |
Restructuring and Related Cha57
Restructuring and Related Charges - Liability Activity, Primarily Associated with 2017 Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | $ 38,388 | |||
Restructuring and related charges | $ 12,647 | $ 32,700 | 29,462 | $ 113,529 |
Asset write-off charge and other non-cash activity | (14,351) | |||
Cash payments | (29,221) | |||
Liability, Ending Balance | 24,278 | 24,278 | ||
Employee severance and benefit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 33,580 | |||
Restructuring and related charges | 5,058 | 18,171 | 11,048 | 46,654 |
Asset write-off charge and other non-cash activity | (56) | |||
Cash payments | (25,512) | |||
Liability, Ending Balance | 19,060 | 19,060 | ||
Lease costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 1,665 | |||
Restructuring and related charges | 1,589 | 1,151 | 1,596 | 5,600 |
Asset write-off charge and other non-cash activity | 525 | |||
Cash payments | (437) | |||
Liability, Ending Balance | 3,349 | 3,349 | ||
Asset write-off costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 0 | |||
Restructuring and related charges | 5,575 | $ 11,838 | 14,838 | $ 58,613 |
Asset write-off charge and other non-cash activity | (14,838) | |||
Cash payments | 0 | |||
Liability, Ending Balance | 0 | 0 | ||
Other Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability, Beginning Balance | 3,143 | |||
Restructuring and related charges | 1,980 | |||
Asset write-off charge and other non-cash activity | 18 | |||
Cash payments | (3,272) | |||
Liability, Ending Balance | $ 1,869 | $ 1,869 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - True-Tech $ in Millions | Sep. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Amount of cash paid for business acquisitions | $ 95.9 |
Assets acquired | 114.7 |
Intangible assets acquired | 25.9 |
Goodwill | 22.6 |
Liabilities assumed | $ 18.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
May 31, 2018 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax Cuts and Jobs Act, provisional income tax expense | $ 30.9 | |
Subsequent Event [Line Items] | ||
U.S. federal statutory rate | 25.70% | |
Reduction in unrecognized tax benefits for the period | $ 16.1 | |
Scenario, Forecast | ||
Subsequent Event [Line Items] | ||
U.S. federal statutory rate | 25.70% |