Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2018 | Oct. 09, 2018 | Feb. 28, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JBL | ||
Entity Registrant Name | JABIL INC | ||
Entity Central Index Key | 898,293 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 161,878,931 | ||
Entity Public Float | $ 4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,257,949 | $ 1,189,919 |
Accounts receivable, net of allowance for doubtful accounts | 1,693,268 | 1,397,424 |
Inventories, net of reserve for excess and obsolete inventory | 3,457,706 | 2,942,083 |
Prepaid expenses and other current assets | 1,141,000 | 1,097,257 |
Total current assets | 7,549,923 | 6,626,683 |
Property, plant and equipment, net of accumulated depreciation | 3,198,016 | 3,228,678 |
Goodwill | 627,745 | 608,184 |
Intangible assets, net of accumulated amortization | 279,131 | 284,596 |
Deferred income taxes | 218,252 | 205,722 |
Other assets | 172,574 | 142,132 |
Total assets | 12,045,641 | 11,095,995 |
Current liabilities: | ||
Current installments of notes payable and long-term debt | 25,197 | 444,255 |
Accounts payable | 4,942,932 | 4,257,623 |
Accrued expenses | 2,262,744 | 2,168,715 |
Total current liabilities | 7,230,873 | 6,870,593 |
Notes payable and long-term debt, less current installments | 2,493,502 | 1,606,017 |
Other liabilities | 94,617 | 100,812 |
Income tax liabilities | 148,884 | 100,902 |
Deferred income taxes | 114,385 | 49,327 |
Total liabilities | 10,082,261 | 8,727,651 |
Commitments and contingencies | ||
Jabil Inc. stockholders’ equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and outstanding | ||
Common stock, $0.001 par value, authorized 500,000,000 shares; 257,130,145 and 253,266,684 shares issued and 164,588,172 and 177,727,653 shares outstanding at August 31, 2018 and August 31, 2017, respectively | 257 | 253 |
Additional paid-in capital | 2,218,673 | 2,104,203 |
Retained earnings | 1,760,097 | 1,730,893 |
Accumulated other comprehensive (loss) income | (19,399) | 54,620 |
Treasury stock at cost, 92,541,973 and 75,539,031 shares as of August 31, 2018 and August 31, 2017, respectively | (2,009,371) | (1,536,455) |
Total Jabil Inc. stockholders’ equity | 1,950,257 | 2,353,514 |
Noncontrolling interests | 13,123 | 14,830 |
Total equity | 1,963,380 | 2,368,344 |
Total liabilities and equity | $ 12,045,641 | $ 11,095,995 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 31, 2018 | Aug. 31, 2017 |
Statement of Financial Position [Abstract] | ||
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 | 257,130,145 | 253,266,684 |
Common stock, shares outstanding | 164,588,172 | 177,727,653 |
Treasury stock, shares | 92,541,973 | 75,539,031 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Income Statement [Abstract] | |||
Net revenue | $ 22,095,416 | $ 19,063,121 | $ 18,353,086 |
Cost of revenue | 20,388,624 | 17,517,478 | 16,825,382 |
Gross profit | 1,706,792 | 1,545,643 | 1,527,704 |
Operating expenses: | |||
Selling, general and administrative | 1,050,716 | 907,702 | 924,427 |
Research and development | 38,531 | 29,680 | 31,954 |
Amortization of intangibles | 38,490 | 35,524 | 37,121 |
Restructuring and related charges | 36,902 | 160,395 | 11,369 |
Loss on disposal of subsidiaries | 0 | 2,112 | 0 |
Operating income | 542,153 | 410,230 | 522,833 |
Other expense | 37,563 | 28,448 | 8,380 |
Interest income | (17,813) | (12,525) | (9,128) |
Interest expense | 149,002 | 138,074 | 136,536 |
Income before income tax | 373,401 | 256,233 | 387,045 |
Income tax expense | 285,860 | 129,066 | 132,149 |
Net income | 87,541 | 127,167 | 254,896 |
Net income (loss) attributable to noncontrolling interests, net of tax | 1,211 | (1,923) | 801 |
Net income attributable to Jabil Inc. | $ 86,330 | $ 129,090 | $ 254,095 |
Earnings per share attributable to the stockholders of Jabil Inc.: | |||
Basic (in dollars per share) | $ 0.50 | $ 0.71 | $ 1.33 |
Diluted (in dollars per share) | $ 0.49 | $ 0.69 | $ 1.32 |
Weighted average shares outstanding: | |||
Basic (in shares) | 172,237 | 181,902 | 190,413 |
Diluted (in shares) | 175,044 | 185,838 | 192,750 |
Cash dividends declared per common share (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 87,541 | $ 127,167 | $ 254,896 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (50,151) | 41,244 | 9,672 |
Derivative instruments | (21,851) | 22,183 | 19,817 |
Available for sale securities | (8,679) | 20,750 | (5,436) |
Actuarial gain (loss) | 8,194 | 10,372 | (12,963) |
Prior service cost | (1,532) | (52) | (113) |
Total other comprehensive (loss) income | (74,019) | 94,497 | 10,977 |
Comprehensive income | 13,522 | 221,664 | 265,873 |
Comprehensive income (loss) attributable to noncontrolling interests | 1,211 | (1,923) | 801 |
Comprehensive income attributable to Jabil Inc. | $ 12,311 | $ 223,587 | $ 265,072 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Noncontrolling Interests |
Beginning Balance at Aug. 31, 2015 | $ 2,335,011 | $ 247 | $ 1,955,104 | $ 1,468,910 | $ (50,854) | $ (1,058,551) | $ 20,155 |
Beginning Balance (in shares) at Aug. 31, 2015 | 192,068,068 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued upon exercise of stock options (in shares) | 19,109 | ||||||
Shares issued under employee stock purchase plan | 20,911 | $ 1 | 20,910 | ||||
Shares issued under employee stock purchase plan (in shares) | 1,246,947 | ||||||
Vesting of restricted stock awards | 0 | $ 2 | (2) | ||||
Vesting of restricted stock awards (in shares) | 1,817,635 | ||||||
Purchases of treasury stock under employee stock plans | (10,656) | (10,656) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (462,900) | ||||||
Treasury shares purchased | (148,340) | (148,340) | |||||
Treasury shares purchased (in shares) | (7,690,387) | ||||||
Recognition of stock-based compensation | 58,997 | 58,997 | |||||
Declared dividends | (62,185) | (62,185) | |||||
Comprehensive income | 265,873 | 254,095 | 10,977 | 801 | |||
Declared dividends to noncontrolling interests | (1,500) | (1,500) | |||||
Purchase of noncontrolling interests | (600) | (484) | (116) | ||||
Foreign currency adjustments attributable to noncontrolling interests | (14) | (14) | |||||
Ending Balance at Aug. 31, 2016 | 2,457,497 | $ 250 | 2,034,525 | 1,660,820 | (39,877) | (1,217,547) | 19,326 |
Ending Balance (in shares) at Aug. 31, 2016 | 186,998,472 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued upon exercise of stock options (in shares) | 172,620 | ||||||
Shares issued under employee stock purchase plan | 21,792 | $ 1 | 21,791 | ||||
Shares issued under employee stock purchase plan (in shares) | 1,228,316 | ||||||
Vesting of restricted stock awards | 0 | $ 2 | (2) | ||||
Vesting of restricted stock awards (in shares) | 2,102,049 | ||||||
Purchases of treasury stock under employee stock plans | (12,268) | (12,268) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (550,096) | ||||||
Treasury shares purchased | (306,640) | (306,640) | |||||
Treasury shares purchased (in shares) | (12,223,708) | ||||||
Recognition of stock-based compensation | 47,889 | 47,889 | |||||
Declared dividends | (59,017) | (59,017) | |||||
Comprehensive income | 221,664 | 129,090 | 94,497 | (1,923) | |||
Declared dividends to noncontrolling interests | (2,293) | (2,293) | |||||
Purchase of noncontrolling interests | (134) | (134) | |||||
Foreign currency adjustments attributable to noncontrolling interests | (146) | (146) | |||||
Ending Balance at Aug. 31, 2017 | $ 2,368,344 | $ 253 | 2,104,203 | 1,730,893 | 54,620 | (1,536,455) | 14,830 |
Ending Balance (in shares) at Aug. 31, 2017 | 177,727,653 | 177,727,653 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued upon exercise of stock options (in shares) | 30,832 | ||||||
Shares issued under employee stock purchase plan | $ 24,866 | $ 1 | 24,865 | ||||
Shares issued under employee stock purchase plan (in shares) | 1,105,400 | ||||||
Vesting of restricted stock awards | $ 3 | (3) | |||||
Vesting of restricted stock awards (in shares) | 2,727,229 | ||||||
Purchases of treasury stock under employee stock plans | (22,597) | (22,597) | |||||
Purchases of treasury stock under employee stock plans (in shares) | (793,052) | ||||||
Treasury shares purchased | (450,319) | (450,319) | |||||
Treasury shares purchased (in shares) | (16,209,890) | ||||||
Recognition of stock-based compensation | 89,608 | 89,608 | |||||
Declared dividends | (57,126) | (57,126) | |||||
Comprehensive income | 13,522 | 86,330 | (74,019) | 1,211 | |||
Declared dividends to noncontrolling interests | (2,920) | (2,920) | |||||
Foreign currency adjustments attributable to noncontrolling interests | 2 | 2 | |||||
Ending Balance at Aug. 31, 2018 | $ 1,963,380 | $ 257 | $ 2,218,673 | $ 1,760,097 | $ (19,399) | $ (2,009,371) | $ 13,123 |
Ending Balance (in shares) at Aug. 31, 2018 | 164,588,172 | 164,588,172 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 87,541 | $ 127,167 | $ 254,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 773,704 | 760,405 | 696,752 |
Restructuring and related charges | 16,264 | 94,346 | 1,170 |
Provision for allowance for doubtful accounts | 38,030 | 10,112 | 919 |
Recognition of stock-based compensation expense and related charges | 90,664 | 48,544 | 58,997 |
Deferred income taxes | 52,705 | (63,001) | (23,155) |
Other, net | (13,600) | 22,109 | 21,369 |
Change in operating assets and liabilities, exclusive of net assets acquired: | |||
Accounts receivable | (316,262) | (31,353) | 122,115 |
Inventories | (499,105) | (445,089) | 67,966 |
Prepaid expenses and other current assets | (76,602) | 19,346 | (194,337) |
Other assets | (34,747) | (30,413) | (4,425) |
Accounts payable, accrued expenses and other liabilities | 815,258 | 744,470 | (86,060) |
Net cash provided by operating activities | 933,850 | 1,256,643 | 916,207 |
Cash flows used in investing activities: | |||
Acquisition of property, plant and equipment | (1,036,651) | (716,485) | (924,239) |
Proceeds and advances from sale of property, plant and equipment | 350,291 | 175,000 | 26,031 |
Cash paid for business and intangible asset acquisitions, net of cash | (109,664) | (36,620) | (242,143) |
Issuance of notes receivable | (6,500) | 0 | (29,380) |
Other, net | 4,140 | (1,360) | (10,250) |
Net cash used in investing activities | (798,384) | (579,465) | (1,179,981) |
Cash flows (used in) provided by financing activities: | |||
Borrowings under debt agreements | 9,677,424 | 7,434,107 | 6,904,215 |
Payments toward debt agreements | (9,206,016) | (7,479,150) | (6,445,922) |
Payments to acquire treasury stock | (450,319) | (306,640) | (148,340) |
Dividends paid to stockholders | (57,833) | (59,959) | (62,436) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 24,865 | 21,791 | 20,910 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (22,597) | (12,268) | (10,656) |
Other, net | (12,568) | (2,427) | (4,259) |
Net cash (used in) provided by financing activities | (47,044) | (404,546) | 253,512 |
Effect of exchange rate changes on cash and cash equivalents | (20,392) | 5,228 | 8,358 |
Net increase (decrease) in cash and cash equivalents | 68,030 | 277,860 | (1,904) |
Cash and cash equivalents at beginning of period | 1,189,919 | 912,059 | 913,963 |
Cash and cash equivalents at end of period | 1,257,949 | 1,189,919 | 912,059 |
Supplemental disclosure information: | |||
Interest paid, net of capitalized interest | 167,278 | 130,635 | 128,013 |
Income taxes paid, net of refunds received | $ 180,423 | $ 187,871 | $ 140,704 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Jabil Inc. (together with its subsidiaries, herein referred to as the “Company”) is one of the leading providers of manufacturing services and solutions. The Company provides comprehensive electronics design, production and product management services to companies in various industries and end markets. The Company’s services combine a highly automated, continuous flow manufacturing approach with advanced electronic design and design for manufacturability technologies. The Company is headquartered in St. Petersburg, Florida and has manufacturing operations in the Americas, Europe, Asia and Africa. Significant accounting policies followed by the Company are as follows: Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts and operations of the Company, and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods' Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation. Use of Accounting Estimates Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates and assumptions. Cash and Cash Equivalents Cash equivalents consist of investments that are readily convertible to cash with original maturities of 90 days or less. As of August 31, 2018 and 2017 , there were $21.4 million and $71.5 million of cash equivalents, respectively. Accounts Receivable Accounts receivable consist of trade receivables and other miscellaneous receivables. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. Allowances of $15.2 million and $14.1 million were recorded as of August 31, 2018 and 2017 , respectively. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for doubtful accounts are made as necessary. Inventories Inventories are stated at the lower of cost (on a first in, first out (FIFO) basis) and net realizable value. Inventory is valued based on current and forecasted usage, customer inventory-related contractual obligations and other lower of cost and net realizable value considerations. If actual market conditions or customer product demands are less favorable than those projected, additional valuation adjustments may be necessary. Property, Plant and Equipment, net Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Certain equipment held under capital leases is classified as property, plant and equipment and the related obligation is recorded as accrued expenses and other liabilities on the Consolidated Balance Sheets. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Operations. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. Goodwill and Other Intangible Assets The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of loss, if any. The recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount to the fair value. The Company determines the fair value of its indefinite-lived intangible assets principally based on a variation of the income approach, known as the relief from royalty method. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, the indefinite-lived intangible asset is considered impaired. Business combinations can also result in other intangible assets being recognized. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful life and include contractual agreements and customer relationships and intellectual property. No significant residual values are estimated for the amortizable intangible assets. Long-lived Assets Long-lived assets, such as property, plant and equipment, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparing its carrying amount to the undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value, which is generally determined as the present value of estimated future cash flows or as the appraised value. Derivative Instruments All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of accumulated other comprehensive income ("AOCI"), net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective portion of the gain or loss is recognized immediately in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. Accumulated Other Comprehensive Income The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2018 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities Total Balance as of August 31, 2016 $ 16,338 $ 7,784 $ (43,587 ) $ 941 $ (21,353 ) $ (39,877 ) Other comprehensive income (loss) before reclassifications 35,297 13,434 (1) 8,443 86 10,611 67,871 Amounts reclassified from AOCI 5,947 8,749 (2) 1,929 (3) (138 ) (3) 10,139 (4) 26,626 Other comprehensive income (loss) (5) 41,244 22,183 10,372 (52 ) 20,750 94,497 Balance as of August 31, 2017 $ 57,582 $ 29,967 $ (33,215 ) $ 889 $ (603 ) $ 54,620 Other comprehensive (loss) income before reclassifications (50,151 ) 1,225 (1) 7,067 (1,444 ) (8,679 ) (51,982 ) Amounts reclassified from AOCI — (23,076 ) (2) 1,127 (3) (88 ) (3) — (22,037 ) Other comprehensive (loss) income (5) (50,151 ) (21,851 ) 8,194 (1,532 ) (8,679 ) (74,019 ) Balance as of August 31, 2018 $ 7,431 $ 8,116 $ (25,021 ) $ (643 ) $ (9,282 ) $ (19,399 ) (1) Represents changes in fair value of derivative instruments. (2) Represents reclassification of net (gains) losses realized and included in net income related to derivative instruments. $14.8 million was classified into net income as a reduction of income tax expense related to derivative instruments for the fiscal year ended August 31, 2018 . The remaining amount for fiscal year 2018 and the amount for fiscal year 2017 was primarily classified as a component of cost of revenue. The Company expects to reclassify $9.0 million into earnings during the next 12 months, which will primarily be classified as a component of cost of revenue. (3) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information. (4) The portion of AOCI reclassified into earnings during the fiscal year ended August 31, 2017 for available for sale securities was due to an other than temporary impairment on securities and was classified as a component of other expense. (5) Amounts are net of tax, which are immaterial. Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. Revenue Recognition The Company derives substantially all of its revenue from production and product management services (collectively referred to as “manufacturing services”), which encompasses the act of producing tangible components that are built to customer specifications, which are then provided to the customer. The Company recognizes manufacturing services revenue when such tangible components are shipped to or the goods are received by the customer, title and risk of ownership have passed, the price to the buyer is fixed or determinable and collectability is reasonably assured (net of estimated returns). The Company also derives revenue to a lesser extent from electronic design services to certain customers. Revenue from electronic design services is generally recognized upon completion and acceptance by the respective customer. Taxes collected from the Company’s customers and remitted to governmental authorities are presented within the Company’s Consolidated Statement of Operations on a net basis. The Company records shipping and handling costs reimbursed by the customer in revenue. Upfront payments from customers are recorded upon receipt as deferred income and are recognized as revenue as the related manufacturing services are provided. Effective September 1, 2018, the Company’s revenue accounting policies will change in conjunction with the adoption of the accounting standard for revenue recognition. See further discussion of this new standard in Note 16 - "New Accounting Guidance" to the Consolidated Financial Statements. Stock-Based Compensation The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The stock-based compensation expense for time-based and performance based restricted stock is measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. For restricted stock awards with performance conditions, stock-based compensation expense is originally based on the number of shares that would vest if the Company achieved 100% of the performance goal, which is the intended outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition. If it becomes probable, based on the Company’s performance, that more or less than the current estimate of the awarded shares will vest, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate in the period that such probability changes. The stock-based compensation expense for market-based restricted stock awards is measured at fair value on the date of grant. The market conditions are considered in the grant date fair value using a Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The Company currently expects to satisfy share-based awards with registered shares available to be issued. See Note 11 – “Stockholders’ Equity” for further discussion of stock-based compensation expense. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company considers future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. 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 shares of common stock 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): Fiscal Year Ended August 31, 2018 2017 2016 Stock appreciation rights — 265 2,381 Restricted stock awards 2,426 4,539 7,599 Fair Value of Financial Instruments The three levels of the fair-value hierarchy include: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. Refer to Note 2 – “Trade Accounts Receivable Securitization and Sale Programs”, Note 8 – “Notes Payable and Long-Term Debt”, Note 9 – “Postretirement and Other Employee Benefits” and Note 13 –“Derivative Financial Instruments and Hedging Activities” for disclosure surrounding the fair value of the Company’s deferred purchase price receivables, debt obligations, pension plan assets and derivative financial instruments, respectively. The Company has $50.0 million in Senior Non-Convertible Cumulative Preferred Stock of iQor Holdings, Inc. that accretes dividends at an annual rate of 8 percent and is redeemable on March 31, 2023 or upon a change in control. The Senior Non-Convertible Cumulative Preferred Stock is valued each reporting period using unobservable inputs (Level 3 inputs) based on an interest rate lattice model and is classified as an available for sale security with an unrealized loss recorded to AOCI. The unobservable inputs have an immaterial impact on the fair value calculation of the Senior Non-Convertible Cumulative Preferred Stock. As of August 31, 2018 and 2017 , the fair value was $47.3 million and $49.8 million , respectively, and is included within other assets on the Consolidated Balance Sheets. |
Trade Accounts Receivable Secur
Trade Accounts Receivable Securitization and Sale Programs | 12 Months Ended |
Aug. 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 nine 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 fiscal years ended August 31, 2018 , 2017 and 2016 were not material. The Company does not record a servicing asset or liability on the 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 Consolidated Balance Sheets and are reflected as cash provided by operating activities on the 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 underlying 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 Consolidated Financial Statements. Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of Net Cash Proceeds (in millions) (1) Expiration Date North American $ 200.0 October 20, 2020 (2) Foreign $ 400.0 September 30, 2021 (3) (1) Maximum amount available at any one time. (2) On October 9, 2018, the North American asset-backed securitization program was terminated and the Company repurchased the outstanding receivables. (3) On September 21, 2018, the foreign asset-backed securitization program terms were amended and the program was extended to September 30, 2021. Under the terms of the amended agreement, the Company continuously sells designated pools of trade accounts receivable to a special purpose entity, which in turn sells a portion of the receivables to an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution. In connection with this amendment, there is no longer a deferred purchase price receivable for the foreign asset-backed securitization program. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Fiscal Year Ended August 31, 2018 2017 2016 Eligible trade accounts receivable sold $ 8,386 $ 8,878 $ 7,870 Cash proceeds received (1) $ 7,838 $ 8,300 $ 7,336 Pre-tax losses on sale of receivables (2) $ 15 $ 9 $ 5 Deferred purchase price receivables as of August 31 (3) $ 533 $ 569 $ 527 (1) Of this amount, $ 0.0 million , $ 0.1 million and $ 8.4 million , respectively, represented new transfers during fiscal years 2018 , 2017 and 2016 , respectively. The remainder represented proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Consolidated Statements of Operations. (3) Recorded initially at fair value as prepaid expenses and other current assets on the 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-backed securitization program covenants include compliance with the interest coverage ratio and debt to EBITDA ratio of the five-year unsecured credit facility amended as of November 8, 2017 (“the 2017 Credit Facility”). The foreign asset-backed securitization program covenants include limitations on certain corporate actions such as mergers and consolidations. As of August 31, 2018 and 2017 , the Company was in compliance with all covenants under the asset-backed securitization programs. Trade Accounts Receivable Sale Programs Following is a summary of the nine 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 $ 875.0 Uncommitted August 31, 2022 (2)(3) B $ 150.0 Uncommitted November 30, 2018 (4) C 800.0 CNY Uncommitted February 13, 2019 D $ 100.0 Uncommitted May 4, 2023 (5) E $ 50.0 Uncommitted August 25, 2019 F $ 150.0 Uncommitted January 25, 2019 (6) G $ 50.0 Uncommitted February 23, 2023 (3) H $ 100.0 Uncommitted August 10, 2019 (7) I $ 100.0 Uncommitted July 21, 2019 (8) (1) Maximum amount available at any one time. (2) The maximum amount under the program will reduce to $650.0 million on February 1, 2019. (3) Any party may elect to terminate the agreement upon 15 days prior notice. (4) The program will automatically extend for one year at each expiration date unless either party provides 10 days notice of termination. (5) Any party may elect to terminate the agreement upon 30 days prior notice. (6) The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination. (7) The program will be automatically extended through August 10, 2023 unless either party provides 30 days notice of termination. (8) The program will be automatically extended through August 21, 2023 unless either party provides 30 days notice of termination. In connection with the trade accounts receivable sale programs, the Company recognized the following for the fiscal years ended August 31 (in millions): 2018 2017 2016 Trade accounts receivable sold $ 5,480 $ 2,968 $ 3,651 Cash proceeds received $ 5,463 $ 2,962 $ 3,647 Loss on sales (1) $ 17 $ 6 $ 4 (1) The resulting losses on the sales of trade accounts receivable during fiscal years 2018 , 2017 and 2016 were recorded to other expense within the Consolidated Statements of Operations. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): August 31, 2018 August 31, 2017 Raw materials $ 2,070,569 $ 1,574,241 Work in process 788,742 822,628 Finished goods 659,335 591,227 Reserve for excess and obsolete inventory (60,940 ) (46,013 ) Inventories, net $ 3,457,706 $ 2,942,083 |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for Income Taxes Income (loss) before income tax expense is summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 U.S. (1) $ (426,897 ) $ (373,690 ) $ (317,427 ) Non-U.S. (1) 800,298 629,923 704,472 $ 373,401 $ 256,233 $ 387,045 (1) The U.S. and non-U.S. components of income (loss) before income tax expense include the elimination of intercompany foreign dividends paid to the U.S. Income tax expense (benefit) is summarized below (in thousands): Fiscal Year Ended August 31, Current Deferred Total 2018: U.S. – Federal $ 69,080 $ (24,342 ) $ 44,738 U.S. – State 134 93 227 Non-U.S. 178,790 62,105 240,895 $ 248,004 $ 37,856 $ 285,860 2017: U.S. – Federal $ 2,436 $ 253 $ 2,689 U.S. – State 12 30 42 Non-U.S. 188,872 (62,537 ) 126,335 $ 191,320 $ (62,254 ) $ 129,066 2016: U.S. – Federal $ (649 ) $ 73 $ (576 ) U.S. – State (166 ) 9 (157 ) Non-U.S. 157,069 (24,187 ) 132,882 $ 156,254 $ (24,105 ) $ 132,149 Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to the actual income tax expense are summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Tax at U.S. federal statutory income tax rate (1) $ 95,852 $ 89,682 $ 135,470 State income taxes, net of federal tax benefit (5,417 ) (8,474 ) (5,121 ) Impact of foreign tax rates (2) (71,889 ) (109,466 ) (144,521 ) Permanent impact of non-deductible cost 21,988 7,336 3,408 Income tax credits (10,405 ) (16,254 ) (5,040 ) Changes in tax rates on deferred tax assets and liabilities (3) 15,048 688 182 Transition tax related to the Tax Act (4) 232,405 — — Change in indefinite reinvestment assertion related to the Tax Act (5) 21,754 — — Valuation allowance (6) (61,186 ) 37,934 11,770 Non-deductible equity compensation 20,443 11,531 18,350 Impact of intercompany charges and dividends (7) 27,442 98,052 94,596 Reclassification of stranded tax effects in AOCI (14,811 ) — — Other, net 14,636 18,037 23,055 Total income tax expense $ 285,860 $ 129,066 $ 132,149 (1) The U.S. federal statutory income tax rate was 25.7% , 35% and 35% for fiscal years ended August 31, 2018, 2017 and 2016, respectively. As a result of the Tax Cuts and Jobs Act of 2017 ("Tax Act"), the Company will be subject to a blended U.S. federal tax rate of 25.7% for the fiscal year ended August 31, 2018 and a 21.0% U.S. federal tax rate for future fiscal years. (2) For the fiscal year ended August 31, 2018, the decrease in the impact of foreign tax rates was primarily due to a decrease in the U.S. federal statutory income tax rate from 35% to 25.7% due to the Tax Act. (3) For the fiscal year ended August 31, 2018, the increase in the changes in tax rates on deferred tax assets and liabilities was primarily due to the Tax Act. This increase excludes the impact of the enacted rate change on the U.S. valuation allowance. (4) The Tax Act introduced a one-time mandatory income inclusion of the historically untaxed foreign earnings of a U.S. company's foreign subsidiaries and will effectively tax such income at reduced tax rates ("transition tax"). For the fiscal year ended August 31, 2018, the transition tax related to the Tax Act reflects the $65.9 million provisional one-time transition tax inclusive of unrecognized tax benefits and the corresponding utilization of U.S. federal net operating losses and tax credits that historically had valuation allowances. (5) For the fiscal year ended August 31, 2018, the change in indefinite reinvestment assertion related to the Tax Act reflects the $85.0 million of foreign taxes that would be incurred upon future remittances of certain foreign earnings less the write off of a previously recorded U.S. deferred tax liability that is no longer taxable due to the Tax Act. (6) For the fiscal year ended August 31, 2018, the valuation allowance decrease was due to utilization of U.S. federal net operating losses and tax credits against the one-time transition tax and the change in enacted tax rate applied to U.S. deferred tax assets and liabilities. The tax benefit from the valuation allowance reversal on U.S. federal net operating losses utilized in the one-time transition tax was $85.0 million . The valuation allowance decrease is partially offset by the current year increase of deferred tax assets in sites with existing valuation allowances. (7) For the fiscal year ended August 31, 2018, the decrease in the impact of intercompany charges and dividends was due to a change in the U.S. taxation of foreign dividends as a result of the Tax Act. On December 22, 2017, the U.S. government enacted comprehensive tax legislation. The Tax Act reduced the corporate tax rate, limited or eliminated certain tax deductions, established the transition tax, and changed the taxation of foreign earnings of U.S. multinational companies. The Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), 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. For the fiscal year ended August 31, 2018, the Company made reasonable estimates related to certain impacts of the Tax Act and, in accordance with SAB 118, recorded a net provisional income tax expense of $142.3 million . This net provisional expense is mainly comprised of $65.9 million related to the one-time transition tax inclusive of unrecognized tax benefits, $(10.5) million related to the re-measurement of the Company’s U.S. deferred tax attributes, and $85.0 million related to a change in the indefinite reinvestment assertion on certain earnings from its foreign subsidiaries. For the three months ended August 31, 2018, the Company recorded $111.4 million associated with the Tax Act, mainly comprised of $24.9 million related to the one-time transition tax to adjust the amount recorded previously through the nine months ended May 31, 2018 and $85.0 million for the change in indefinite reinvestment assertion on certain earnings from the Company's foreign subsidiaries, resulting in a combined net increase of 29.8% to the Company's effective tax rate for the fiscal year ended August 31, 2018. The calculation of the one-time transition tax of $65.9 million for the fiscal year ended August 31, 2018 is based upon preliminary estimates of post-1986 earnings and profits, applicable foreign tax credits and relevant limitations, utilization of U.S. federal net operating losses and tax credits and the amounts of foreign earnings held in cash and non-cash assets. The adjustment to the transition tax of $24.9 million for the three months ended August 31, 2018 was primarily related to further analysis of earnings and profits of the Company's foreign subsidiaries and utilization of foreign tax credits, a revised provisional calculation of foreign earnings held in cash and other specified assets, and the Company's interpretation of additional regulatory guidance issued. The transition tax remains provisional pending additional regulatory guidance that may be issued, changes in interpretations and assumptions, and finalization of calculations of the impact of the Tax Act, including foreign earnings and profits of the Company's foreign subsidiaries and applicable foreign tax credits and relevant limitations for fiscal year 2018. The provisional income tax benefit of $(10.5) million recorded for the fiscal year ended August 31, 2018 relates to the re-measurement of the Company’s deferred tax balances, inclusive of valuation allowances, and is based primarily on the rates at which the deferred tax assets and liabilities are expected to reverse in the current and future fiscal years. The enactment date re-measurement of U.S. deferred tax assets and liabilities is provisional as the final re-measurement cannot be determined until the final calculation of underlying temporary differences is completed, rather than estimated. In addition, the Company is also analyzing the impact of the Tax Act to the existing valuation allowance assessments from both a federal and state tax perspective, which could potentially affect the realizability of the existing deferred tax assets. The change in indefinite reinvestment assertion of $85.0 million recorded during the three months and fiscal year ended August 31, 2018 relates to certain foreign earnings and the foreign taxes that would be incurred upon future remittances of such earnings. This amount remains provisional as the Company completes further analysis of available distributable earnings from its foreign subsidiaries and continued review of its capital structure. 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. This analysis has not been completed due to the complexity of the new GILTI tax rules, which is dependent, in part, on analyzing the Company's global income to determine whether the Company expects to have future U.S. inclusions in taxable income related to GILTI and the associated estimated amount. Because the Company’s expectations around U.S. inclusions in taxable income related to GILTI depend on its estimated future results of global operations and preparation and analysis of information not previously relevant or regularly produced, this accounting election remains open as of August 31, 2018. For the fiscal year ended August 31, 2018, the Company believes $142.3 million is a reasonable net estimate related to the Tax Act based on the analysis, interpretations and guidance available at this time. 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. For the reasons outlined above, the Company has not completed its accounting for any aspect of the Tax Act. The Company has been granted tax incentives for its Brazilian, Chinese, Malaysian, Polish, Singaporean and Vietnamese subsidiaries. The majority of the tax incentive benefits expire at various dates through fiscal year 2028 and are subject to certain conditions with which the Company expects to comply. These subsidiaries generated income from continuing operations during the fiscal years ended August 31, 2018 , 2017 and 2016 , resulting in a tax benefit of approximately $52.1 million ( $0.30 per basic share), $38.6 million ( $0.22 per basic share) and $50.5 million ( $0.27 per basic share), respectively. The benefits of these incentives are classified as the impact of foreign tax rates and income tax credits in the reconciliation of income tax expense table above. Deferred Tax Assets and Liabilities The significant components of the deferred tax assets and liabilities are summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 Deferred tax assets: Net operating loss carry forward $ 119,259 $ 268,853 Receivables 7,111 7,497 Inventories 7,634 11,618 Compensated absences 8,266 10,981 Accrued expenses 81,912 93,413 Property, plant and equipment, principally due to differences in depreciation and amortization 97,420 81,954 U.S. federal and state tax credits 70,153 57,122 Foreign jurisdiction tax credits 25,887 24,641 Equity compensation – U.S. 7,566 16,460 Equity compensation – Non-U.S. 2,401 2,700 Other 18,176 14,573 Total deferred tax assets before valuation allowances 445,785 589,812 Less valuation allowances (223,487 ) (285,559 ) Net deferred tax assets $ 222,298 $ 304,253 Deferred tax liabilities: Unremitted earnings of non-U.S. subsidiaries 74,654 86,202 Intangible assets 39,122 48,229 Cash flow hedges — 8,564 Other 4,655 4,863 Total deferred tax liabilities $ 118,431 $ 147,858 Net deferred tax assets $ 103,867 $ 156,395 As of August 31, 2018 , the Company had state (tax-effected) and foreign income tax net operating loss carry forwards (net of unrecognized tax benefits) of approximately $55.4 million and $318.0 million , respectively, which are available to reduce future taxes, if any. The net operating loss carry forwards in the Company’s major tax jurisdictions expire in fiscal years 2019 through 2038 or have an indefinite carry forward period. The Company has U.S. federal and state tax credit carry forwards of $65.6 million and $4.8 million , respectively, which are available to reduce future taxes, if any. Most of the U.S. federal tax credits expire through fiscal year 2027 . Most of the U.S. state tax credits expire through fiscal year 2027 . As of August 31, 2018 , the foreign jurisdiction tax credits include foreign investment tax credits of $23.3 million that expire predominantly in fiscal year 2027 and are based on the deferral method. Based on the Company’s historical operating income, projection of future taxable income, scheduled reversal of taxable temporary differences, and tax planning strategies, management believes that it is more likely than not that the Company will realize the benefit of its deferred tax assets, net of valuation allowances recorded. The net decreases in the total valuation allowance for the fiscal years ended August 31, 2018 and 2017 were $(62.1) million and $(59.3) million , respectively. The fiscal year ended August 31, 2018 decrease in valuation allowance is primarily related to the decrease of a U.S. federal net operating loss carry forward due to utilization against the one-time transition tax under the Tax Act. This decrease is partially offset by the increase of deferred tax assets in sites with existing valuation allowances. As a result of the one-time transition tax, the Company will have a substantial amount of previously taxed earnings that can be distributed to the U.S. without additional U.S. federal 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. During the fiscal year ended August 31, 2018, the Company recorded liabilities of $85.0 million from a change in the indefinite reinvestment assertion on certain earnings from its foreign subsidiaries, primarily associated with foreign withholding taxes that would be incurred upon such future remittances of cash. Of these liabilities, $74.7 million remained as a deferred tax liability as of August 31, 2018 after current year remittances. The Company intends to indefinitely reinvest the remaining earnings from its foreign subsidiaries for which a deferred tax liability has not already been recorded. The accumulated earnings are the most significant component of the basis difference which is indefinitely reinvested. While the Company has made a reasonable estimate of the impact of the Tax Act on its indefinite reinvestment assertion, the Company continues to evaluate its indefinite reinvestment assertion and may further adjust this estimate during the measurement period. As of August 31, 2018, the indefinitely reinvested earnings in foreign subsidiaries upon which taxes had not been provided were approximately $2.4 billion . Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. Unrecognized Tax Benefits Reconciliations of the unrecognized tax benefits are summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Beginning balance $ 201,355 $ 149,898 $ 154,648 Additions for tax positions of prior years 14,465 2,155 7,974 Reductions for tax positions of prior years (21,045 ) (12,233 ) (20,045 ) Additions for tax positions related to current year 81,866 77,807 25,892 Cash settlements (1,659 ) (2,298 ) (6,553 ) Reductions from lapses in statutes of limitations (7,496 ) (10,446 ) (7,099 ) Reductions from settlements with taxing authorities (5,928 ) (6,061 ) (1,787 ) Foreign exchange rate adjustment (4,853 ) 2,533 (3,132 ) Ending balance $ 256,705 $ 201,355 $ 149,898 Unrecognized tax benefits that would affect the effective tax rate (if recognized) $ 117,455 $ 75,223 $ 72,152 For the fiscal year ended August 31, 2018 , the additions for tax positions related to current year primarily related to the impacts of the Tax Act and U.S. taxation of certain intercompany transactions. It is reasonably possible that the August 31, 2018 unrecognized tax benefits could decrease during the next 12 months by $106.1 million , primarily related to a taxing authority ruling associated with an internal restructuring and a potential audit settlement associated with intercompany transactions. Both of these tax positions were previously offset with valuation allowances. For the fiscal year ended August 31, 2017, the additions for tax positions related to current year primarily related to certain non-U.S. net operating loss carry forwards, previously offset with a valuation allowance, that can no longer be recognized due to an internal restructuring. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company’s accrued interest and penalties were approximately $20.4 million and $27.1 million as of August 31, 2018 and 2017 , respectively. The Company recognized interest and penalties of approximately $(6.7) million , $5.2 million and $1.8 million during the fiscal years ended August 31, 2018 , 2017 and 2016 , respectively. The Company is no longer subject to U.S. federal and state income tax examinations for fiscal years before August 31, 2009. In major non-U.S. jurisdictions, the Company is no longer subject to income tax examinations for fiscal years before August 31, 2008. 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 that are 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. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): August 31, 2018 2017 Land and improvements $ 144,136 $ 120,574 Buildings 849,975 804,861 Leasehold improvements 1,013,428 877,752 Machinery and equipment 3,983,025 3,680,881 Furniture, fixtures and office equipment 192,243 178,603 Computer hardware and software 601,955 583,569 Transportation equipment 17,215 22,080 Construction in progress 42,984 85,748 6,844,961 6,354,068 Less accumulated depreciation and amortization 3,646,945 3,125,390 $ 3,198,016 $ 3,228,678 Depreciation and maintenance and repair expenses were as follows for the periods indicated (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Depreciation expense $ 735,213 $ 724,856 $ 659,542 Maintenance and repair expense $ 266,691 $ 234,332 $ 197,373 As of August 31, 2018 and 2017 , the Company had $253.6 million and $242.2 million , respectively, included in accounts payable for the acquisition of property, plant and equipment, which is considered a non-cash investing activity in the Consolidated Statements of Cash Flows. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Aug. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company completed its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2018 and determined the fair values of the reporting units and the indefinite-lived intangible assets were substantially in excess of the carrying values and that no impairment existed as of the date of the impairment test. The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”), during the fiscal years ended August 31, 2018 and 2017 (in thousands): EMS DMS Total Balance as of August 31, 2016 $ 51,179 $ 543,594 $ 594,773 Acquisitions and adjustments — 8,186 8,186 Change in foreign currency exchange rates 1,395 3,830 5,225 Balance as of August 31, 2017 52,574 555,610 608,184 Acquisitions and adjustments (1) 30,763 (8,186 ) 22,577 Change in foreign currency exchange rates (667 ) (2,349 ) (3,016 ) Balance as of August 31, 2018 $ 82,670 $ 545,075 $ 627,745 (1) Includes $8.2 million of goodwill reallocated between DMS and EMS during fiscal year 2018. The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in thousands): August 31, 2018 August 31, 2017 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Goodwill $ 1,647,567 $ 1,019,822 $ 1,628,006 $ 1,019,822 The following table presents the Company’s total purchased intangible assets as of August 31, 2018 and 2017 (in thousands): Weighted Average Amortization Period (in years) August 31, 2018 August 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contractual agreements and customer relationships 11 $ 289,947 $ (153,415 ) $ 136,532 $ 265,148 $ (132,691 ) $ 132,457 Intellectual property 5 168,181 (148,672 ) 19,509 160,456 (131,407 ) 29,049 Finite-lived trade names Not applicable 5,091 (5,091 ) — 5,114 (5,114 ) — Trade names Indefinite 123,090 — 123,090 123,090 — 123,090 Total intangible assets 9 $ 586,309 $ (307,178 ) $ 279,131 $ 553,808 $ (269,212 ) $ 284,596 Intangible asset amortization for fiscal years 2018 , 2017 and 2016 was approximately $38.5 million , $35.5 million and $37.1 million , respectively. The estimated future amortization expense is as follows (in thousands): Fiscal Year Ended August 31, 2019 $ 30,212 2020 26,645 2021 18,261 2022 17,119 2023 14,704 Thereafter 49,100 Total $ 156,041 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Aug. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): August 31, 2018 August 31, 2017 Deferred income $ 691,365 $ 1,017,144 Accrued compensation and employee benefits 570,400 534,143 Other accrued expenses 1,000,979 617,428 Accrued expenses $ 2,262,744 $ 2,168,715 |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 12 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of August 31, 2018 and 2017 are summarized below (in thousands): Maturity Date August 31, 2018 August 31, 2017 8.250% Senior Notes (1)(2)(3) Mar 15, 2018 $ — $ 399,506 5.625% Senior Notes (1)(2) Dec 15, 2020 397,995 397,104 4.700% Senior Notes (1)(2) Sep 15, 2022 497,350 496,696 4.900% Senior Notes (1) Jul 14, 2023 298,814 298,571 3.950% Senior Notes (1)(2)(3) Jan 12, 2028 494,208 — Borrowings under credit facilities (4)(5) Nov 8, 2022 and Aug 24, 2020 — — Borrowings under loans (4)(5) Nov 8, 2022 and Aug 24, 2020 830,332 458,395 Total notes payable and long-term debt 2,518,699 2,050,272 Less current installments of notes payable and long-term debt 25,197 444,255 Notes payable and long-term debt, less current installments $ 2,493,502 $ 1,606,017 (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 three months ended February 28, 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 for additional working capital to support the continued growth of the business. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $1.8 billion , which may, subject to the lenders’ discretion, potentially be increased up to $2.3 billion ("the 2017 Revolving Credit Facility") and (ii) a $500.0 million Term Loan Facility ("the 2017 Term Loan Facility"), collectively “the 2017 Credit Facility.” The 2017 Credit Facility expires on November 8, 2022. The 2017 Revolving Credit Facility is subject to two whole or partial one -year extensions, at the lender’s discretion. Interest and fees on the 2017 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 fiscal year ended August 31, 2018 , the interest rates on the 2017 Revolving Credit Facility ranged from 2.4% to 5.2% and the 2017 Term Loan Facility ranged from 2.6% to 3.5% . Interest is charged at a rate equal to (a) for the 2017 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 2017 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 prime 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. (5) On August 24, 2018, the Company entered into a senior unsecured two -year credit agreement for additional working capital to support the continued growth of the business. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $150.0 million ("the 2018 Revolving Credit Facility") and (ii) a $350.0 million Term Loan Facility ("the 2018 Term Loan Facility"), collectively “the 2018 Credit Facility.” The 2018 Credit Facility expires on August 24, 2020. During the fiscal year ended August 31, 2018 , no draws were made on the 2018 Revolving Credit Facility and $350.00 million was borrowed against the 2018 Term Loan Facility. During the fiscal year ended August 31, 2018 the interest rate on the 2018 Term Loan Facility was 3.1% . Interest is charged at a rate equal to (a) for the 2018 Revolving Credit Facility, either the base rate or 0.9750% above the Eurocurrency rate and (b) for the 2018 Term Loan Facility, either 0.125% above the base rate or 1.125% above the Eurocurrency rate. The base rate represents the greatest of: (i) Mizuho Bank, Ltd.’s prime 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 for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of August 31, 2018 , the Company has $2.3 billion in available unused borrowing capacity under its revolving credit facilities. Debt Maturities Debt maturities as of August 31, 2018 are as follows (in thousands): Fiscal Year Ended August 31, 2019 $ 25,197 2020 374,369 2021 441,580 2022 49,806 2023 1,133,353 Thereafter 494,394 Total $ 2,518,699 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 2017 and 2018 Revolving Credit Facilities and the 4.900% Senior Notes contain debt leverage and interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 5.625% , 4.700% , 4.900% or 3.950% Senior Notes upon a change of control. As of August 31, 2018 and 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% Senior Notes, were approximately $415.7 million , $503.5 million and $476.0 million respectively, as of August 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% Senior Notes, was approximately $306.5 million , as of August 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 approximates fair value as interest rates on these instruments approximates current market rates. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 12 Months Ended |
Aug. 31, 2018 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Employee Benefits | Postretirement and Other Employee Benefits Postretirement Benefits The Company has a qualified defined benefit pension plan for employees of Jabil Circuit UK Limited (the “UK plan”). The UK plan, which is closed to new participants, provides benefits based on average employee earnings over a three -year service period preceding retirement and length of employee service. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in UK employee benefit and tax laws plus such additional amounts as are deemed appropriate by the Company. Additionally, as a result of acquiring various other operations in Europe and Asia, the Company assumed both qualified and unfunded nonqualified retirement benefits covering eligible employees who meet age and service requirements (the “other plans”). The UK plan and other plans are collectively referred to herein as the “plans.” Benefit Obligation and Plan Assets The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2018 2017 Change in projected benefit obligation Beginning projected benefit obligation $ 167,714 $ 182,278 Service cost 1,063 1,068 Interest cost 3,807 2,942 Actuarial (gain) loss (6,019 ) (10,147 ) Curtailments gain (998 ) — Settlements paid from plan assets — (2,133 ) Total benefits paid (6,211 ) (6,790 ) Plan participants’ contributions 31 27 Amendments 1,864 — Terminations — (106 ) Effect of conversion to U.S. dollars (147 ) 575 Ending projected benefit obligation $ 161,104 $ 167,714 Change in plan assets Beginning fair value of plan assets 146,698 143,702 Actual return on plan assets 8,146 2,582 Settlements paid from plan assets — (2,133 ) Employer contributions 1,811 6,981 Benefits paid from plan assets (4,758 ) (3,759 ) Plan participants’ contributions 31 27 Effect of conversion to U.S. dollars (213 ) (702 ) Ending fair value of plan assets $ 151,715 $ 146,698 Unfunded status $ (9,389 ) $ (21,016 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 428 $ 182 Accrued benefit liability, noncurrent $ 8,961 $ 20,834 Accumulated other comprehensive loss (income) (1) Actuarial loss, before tax $ 22,387 $ 32,247 Prior service cost (credit), before tax $ 719 $ (1,185 ) (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2019 . Net Periodic Benefit Cost The following table provides information about the net periodic benefit cost for the plans for fiscal years 2018 , 2017 and 2016 (in thousands): Pension 2018 2017 2016 Service cost $ 1,063 $ 1,068 $ 883 Interest cost 3,807 2,942 4,844 Expected long-term return on plan assets (5,954 ) (4,206 ) (5,560 ) Recognized actuarial loss 1,127 1,929 1,046 Amortization of prior service credit (88 ) (138 ) (139 ) Net settlement loss 116 1,472 — Net periodic benefit cost $ 71 $ 3,067 $ 1,074 Beginning in the first quarter of fiscal year 2019, the Company will adopt a new accounting standard to improve the presentation of net periodic benefit cost. The Company expects the adoption of this standard to result in reclassifications for the service cost component of net periodic benefit cost from selling, general and administrative expense to cost of revenue and for the other components from selling, general and administrative expense to other expense. Assumptions Weighted-average actuarial assumptions used to determine net periodic benefit cost and projected benefit obligation for the plans for the fiscal years 2018 , 2017 and 2016 were as follows: Pension 2018 2017 2016 Net periodic benefit cost: Expected long-term return on plan assets (1) 3.8 % 3.3 % 4.3 % Rate of compensation increase 3.3 % 2.7 % 2.4 % Discount rate 2.1 % 1.9 % 2.9 % Projected benefit obligation: Expected long-term return on plan assets 3.6 % 4.0 % 3.3 % Rate of compensation increase 4.4 % 4.4 % 4.1 % Discount rate (2) 2.2 % 2.3 % 1.7 % (1) The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan. (2) The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover. Plan Assets The Company has adopted an investment policy for a majority of plan assets, which was set by plan trustees who have the responsibility for making investment decisions related to the plan assets. The plan trustees oversee the investment allocation, including selecting professional investment managers and setting strategic targets. The investment objectives for the assets are (1) to acquire suitable assets that hold the appropriate liquidity in order to generate income and capital growth that, along with new contributions, will meet the cost of current and future benefits under the plan, (2) to limit the risk of the plan assets from failing to meet the plan liabilities over the long-term and (3) to minimize the long-term costs under the plan by maximizing the return on the plan assets. Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives with prudent risk parameters. Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due. Within the equity securities class, the investment policy provides for investments in a broad range of publicly traded securities including both domestic and international stocks. Within the debt securities class, the investment policy provides for investments in corporate bonds as well as fixed and variable interest debt instruments. The Company currently expects to achieve a target mix of 35% equity and 65% debt securities in fiscal year 2019 . Fair Value The fair values of the plan assets held by the Company by asset category are as follows (in thousands): August 31, 2018 August 31, 2017 Fair Value Hierarchy Fair Value Asset Allocation Fair Value Asset Allocation Asset Category Cash and cash equivalents (1) Level 1 $ 6,682 4 % $ 5,760 4 % Equity Securities: Global equity securities (2)(3) Level 2 35,932 24 % 41,971 29 % Debt Securities: Corporate bonds (3) Level 2 41,088 27 % 41,987 29 % Government bonds (3) Level 2 51,597 34 % 41,738 28 % Other Investments: Insurance contracts (4) Level 3 16,416 11 % 15,242 10 % Fair value of plan assets $ 151,715 100 % $ 146,698 100 % (1) Carrying value approximates fair value. (2) Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries. (3) Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics. (4) Consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value and is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. Accumulated Benefit Obligation The following table provides information for the plans with an accumulated benefit obligation for fiscal years 2018 and 2017 (in thousands): August 31, 2018 2017 Projected benefit obligation $ 161,104 $ 167,714 Accumulated benefit obligation $ 152,380 $ 158,971 Fair value of plan assets $ 151,715 $ 146,698 Cash Flows The Company expects to make cash contributions between $0.2 million and $0.4 million to its funded pension plans during fiscal year 2019 . The estimated future benefit payments, which reflect expected future service, are as follows (in thousands): Fiscal Year Ended August 31, Amount 2019 $ 4,687 2020 5,502 2021 5,065 2022 5,390 2023 5,974 2024 through 2028 37,466 Profit Sharing, 401(k) Plan and Defined Contribution Plans The Company provides retirement benefits to its domestic employees who have completed a 30-day period of service through a 401(k) plan that provides a matching contribution by the Company. The Company also has defined contribution benefit plans for certain of its international employees. The Company contributed approximately $40.5 million , $33.6 million and $33.3 million for defined contribution plans for the fiscal years ended August 31, 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Agreements The Company leases certain facilities under non-cancelable operating leases. Lease agreements may contain lease escalation clauses and purchase or renewal options. The Company recognizes scheduled lease escalation clauses over the course of the applicable lease term on a straight-line basis in the Consolidated Statements of Operations. The future minimum lease payments under non-cancelable operating leases as of August 31, 2018 were as follows (in thousands): Fiscal Year Ending August 31, Amount 2019 $ 126,038 2020 97,789 2021 81,286 2022 66,400 2023 49,309 Thereafter 142,089 Total minimum lease payments $ 562,911 Total operating lease expense was approximately $130.2 million , $117.2 million and $120.4 million for fiscal years 2018 , 2017 and 2016 , respectively. Legal Proceedings The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Aug. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Restricted stock and stock appreciation rights (“SARS”) $ 84,082 $ 42,122 $ 52,459 Employee stock purchase plan 6,891 6,334 6,538 Other (1) 7,538 88 — Total $ 98,511 $ 48,544 $ 58,997 (1) For the fiscal year ended August 31, 2018, represents a one-time cash-settled stock award that vested on November 30, 2017. Equity Compensation Plan The 2011 Stock Award and Incentive Plan (the “2011 Plan”) provides for the grant of restricted stock awards, restricted stock unit awards and other stock-based awards. The maximum aggregate number of shares that may be subject to awards under the 2011 Plan is 23,300,000 . Upon adoption of the 2011 Plan, the 2002 Stock Incentive Plan (the “2002 Plan”) was terminated. For any outstanding awards granted under the 2002 Plan that expire, are canceled or forfeited after the termination of the 2002 Plan, the shares are available for issuance under the 2011 Plan. Following is a reconciliation of the shares available to be issued under the 2011 Plan as of August 31, 2018 : Shares Available for Grant Balance as of August 31, 2017 12,228,936 SARS canceled 35,439 Restricted stock awards forfeited, net of grants (1) 572,783 Balance as of August 31, 2018 12,837,158 (1) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. Stock Appreciation Rights (“SARS”) The following table summarizes SARS activity from August 31, 2017 through August 31, 2018 : SARS Outstanding Average Intrinsic Value (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Outstanding as of August 31, 2017 319,241 $ 3,651 $ 19.91 2.10 SARS canceled (35,439 ) $ 21.56 SARS exercised (127,001 ) $ 21.31 Outstanding and exercisable as of August 31, 2018 156,801 $ 1,748 $ 18.41 3.10 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 granted 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. 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 table summarizes restricted stock activity from August 31, 2017 through August 31, 2018 : Shares Weighted- Average Grant-Date Fair Value Outstanding as of August 31, 2017 11,652,319 $ 22.00 Changes during the period Shares granted (1) 2,751,300 $ 29.40 Shares vested (2,727,229 ) $ 22.95 Shares forfeited (3,324,083 ) $ 19.20 Outstanding as of August 31, 2018 8,352,307 $ 24.34 (1) For those shares granted that are based on the achievement of certain performance criteria, the amount represents the maximum number of shares that can vest. During the fiscal year ended August 31, 2018 , the Company awarded approximately 1.4 million time-based restricted stock units, 0.4 million performance-based restricted stock units and 0.4 million market-based restricted stock units based on target performance criteria. The following table represents the restricted stock and SARS stock-based compensation information for the periods indicated (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Intrinsic value of SARS exercised $ 909 $ 5,053 $ 506 Fair value of restricted stock vested $ 62,592 $ 44,010 $ 34,857 Tax benefit (expense) for stock compensation expense (1) $ 1,122 $ 560 $ 991 Unrecognized stock-based compensation expense — restricted stock $ 41,940 Remaining weighted-average period for restricted stock expense 1.4 years (1) Classified as income tax expense within the Consolidated Statements of Operations. Employee Stock Purchase Plan The maximum aggregate number of shares that are available for issuance under the 2011 Employee Stock Purchase Plan (the “ESPP”) is 12,000,000 . Employees are eligible to participate in the ESPP after 90 days of employment with the Company. The ESPP permits eligible employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation, as defined in the ESPP, at a price equal to 85% of the fair value of the common stock at the beginning or end of the offering period, whichever is lower. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. As of August 31, 2018 , 4,679,061 shares remained available for issue under the 2011 ESPP. The fair value of shares issued under the ESPP was estimated on the commencement date of each offering period using the Black-Scholes option pricing model. The following weighted-average assumptions were used in the model for each respective period: Fiscal Year Ended August 31, 2018 2017 2016 Expected dividend yield 0.6 % 0.8 % 0.7 % Risk-free interest rate 1.4 % 0.5 % 0.3 % Expected volatility (1) 23.0 % 33.0 % 28.1 % Expected life 0.5 years 0.5 years 0.5 years (1) The expected volatility was estimated using the historical volatility derived from the Company’s common stock. Dividends The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders during fiscal years 2018 and 2017 : Dividend Dividend Total of Cash Date of Record for Dividend Cash (in thousands, except for per share data) 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 July 18, 2018 $ 0.08 $ 13,677 August 15, 2018 September 4, 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 July 20, 2017 $ 0.08 $ 14,698 August 15, 2017 September 1, 2017 Share Repurchases During fiscal years 2017 and 2016, the Company's Board of Directors authorized the repurchase of $450.0 million and $400.0 million , respectively, of the Company's common stock under share repurchase programs, which were repurchased during fiscal years 2016, 2017 and 2018. In June 2018, the Board 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 on August 31, 2019. As of August 31, 2018, no shares had yet been repurchased under this authorization and $350.0 million remains available under the 2018 Share Repurchase Program. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 12 Months Ended |
Aug. 31, 2018 | |
Segment Reporting [Abstract] | |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalents with various domestic and foreign financial institutions. Deposits held with the financial institutions may exceed the amount of insurance provided on such deposits, but may generally be redeemed upon demand. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. For trade receivables, the Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains an allowance for potential credit losses on trade receivables. Sales of the Company’s products are concentrated among specific customers. For fiscal year 2018 , the Company’s five largest customers accounted for approximately 48% of its net revenue and 80 customers accounted for approximately 90% of its net revenue. As the Company is a provider of manufacturing services and solutions and products are built based on customer specifications, it is impracticable to provide revenues from external customers for each product and service. Sales to the following customer that accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for the customer, were as follows: Percentage of Net Revenue Fiscal Year Ended August 31, Percentage of Accounts Receivable as of August 31, 2018 2017 2016 2018 2017 Apple, Inc. (1) 28 % 24 % 24 % * * * Amount was less than 10% of total. (1) Sales to this customer were reported in the DMS operating segment. The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. The Company derives its revenue from providing comprehensive electronics design, production and product management services. The chief operating decision maker evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportable segments. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital and risk profiles. The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment is typically lower-margin but high volume business that is produced at a quicker rate (i.e. cycle time) and in higher quantities and includes customers primarily in the automotive and transportation, capital equipment, computing and storage, defense and aerospace, digital home, industrial and energy, networking and telecommunications, point of sale and printing industries. The DMS segment is focused on providing engineering solutions, with an emphasis on material sciences and technologies. The DMS segment is typically higher-margin business and includes customers primarily in the consumer wearables, healthcare, mobility and packaging industries. Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. 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 and integration costs, 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 we would transact with third parties. The following tables set forth operating segment information (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Net revenue EMS $ 12,268,600 $ 11,077,622 $ 11,029,132 DMS 9,826,816 7,985,499 7,323,954 $ 22,095,416 $ 19,063,121 $ 18,353,086 Fiscal Year Ended August 31, 2018 2017 2016 Segment income and reconciliation of income before tax EMS $ 451,149 $ 436,110 $ 373,732 DMS 316,998 230,893 256,588 Total segment income $ 768,147 $ 667,003 $ 630,320 Reconciling items: Amortization of intangibles (38,490 ) (35,524 ) (37,121 ) Stock-based compensation expense and related charges (98,511 ) (48,544 ) (58,997 ) Restructuring and related charges (36,902 ) (160,395 ) (11,369 ) Acquisition and integration costs (8,082 ) — — Distressed customer charges (32,710 ) (10,198 ) — Business interruption and impairment charges, net (1) (11,299 ) — — Loss on disposal of subsidiaries — (2,112 ) — Other expense (37,563 ) (28,448 ) (8,380 ) Interest income 17,813 12,525 9,128 Interest expense (149,002 ) (138,074 ) (136,536 ) Income before income tax $ 373,401 $ 256,233 $ 387,045 (1) Charges, net of insurance proceeds of $24.9 million , for the fiscal year ended August 31, 2018 relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted our operations in Cayey, Puerto Rico, which is classified as a component of cost of revenue and selling, general and administrative expenses in the Consolidated Statements of Operations. August 31, 2018 August 31, 2017 Total assets EMS $ 3,456,866 $ 2,778,820 DMS 5,378,436 5,290,468 Other non-allocated assets 3,210,339 3,026,707 $ 12,045,641 $ 11,095,995 The Company operates in 29 countries worldwide. Sales to unaffiliated customers are based on the Company location that maintains the customer relationship and transacts the external sale. The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 External net revenue: Singapore $ 7,193,414 $ 5,585,837 $ 4,983,711 China 4,585,355 4,012,950 3,873,212 Mexico 3,533,437 3,207,059 3,043,609 Malaysia 1,389,851 1,119,384 1,113,456 Hungary 897,033 944,448 1,130,466 Other 2,651,632 2,547,750 2,499,241 Foreign source revenue 20,250,722 17,417,428 16,643,695 U.S. 1,844,694 1,645,693 1,709,391 Total $ 22,095,416 $ 19,063,121 $ 18,353,086 August 31, 2018 2017 Long-lived assets: China $ 1,770,732 $ 1,922,676 Singapore 191,506 204,181 Mexico 256,086 196,218 Taiwan 130,062 136,685 Malaysia 113,011 74,341 Hungary 91,063 89,814 Spain 79,991 83,064 Poland 60,847 55,617 Other 334,466 343,473 Long-lived assets related to foreign operations 3,027,764 3,106,069 U.S. 1,077,128 1,015,389 Total $ 4,104,892 $ 4,121,458 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Aug. 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 fluctuation 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 $293.4 million and $314.6 million as of August 31, 2018 and 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 September 3, 2018 and May 31, 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 August 31, 2018 and 2017 , was $3.4 billion and $2.1 billion , respectively. The following table presents the fair values of the Company’s derivative instruments located on the Consolidated Balance Sheets utilized for foreign currency risk management purposes as of August 31, 2018 and 2017 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value as of August 31, 2018 (1) Fair Value as of August 31, 2017 (1) Balance Sheet Location Fair Value as of August 31, 2018 (1) Fair Value as of August 31, 2017 (1) Derivatives designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 225 $ 8,380 Accrued expenses $ 13,364 $ 1,408 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 10,125 $ 31,280 Accrued expenses $ 46,171 $ 9,131 (1) Classified as Level 2 in the fair-value hierarchy. 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 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, selling, general and administrative expense, which are the same line items in which the hedged items are recorded. During the fiscal year ended August 31, 2018 , the Company recognized $29.6 million in foreign currency losses, which was offset by $48.7 million of gains from related forward contracts. Both the foreign currency losses and gains from forward contracts were recognized in cost of revenue. For the fiscal years ended August 31, 2017 and 2016 , 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 2018, the Company entered into interest rate swap transactions to hedge the variable interest rate payments for the 2018 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 receives variable rate interest payments based on the three-month LIBOR. The interest rate swaps have an aggregate notional amount of $350.0 million and have been designated as hedging instruments and accounted for as cash flow hedges. The interest rate swaps were effective on August 24, 2018 and are scheduled to expire on August 24, 2020. The contracts will be settled with the respective counterparties on a net basis at each settlement date. 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 2017 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 receives 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. 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 (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 Statement of Operations through January 2028. The effective portions of the swaps amortized as a reduction to interest expense during the fiscal year ended August 31, 2018 was not material. |
Restructuring and Related Charg
Restructuring and Related Charges | 12 Months Ended |
Aug. 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): Fiscal Year Ended August 31, 2018(2) 2017(2) 2016(3) Employee severance and benefit costs $ 16,269 $ 56,834 $ 8,845 Lease costs 1,596 3,966 (43 ) Asset write-off costs 16,264 94,346 1,170 Other related costs 2,773 5,249 1,397 Total restructuring and related charges (1) $ 36,902 $ 160,395 $ 11,369 (1) Includes $16.3 million , $51.3 million and $10.7 million recorded in the EMS segment, $16.6 million , $82.4 million and $0.8 million recorded in the DMS segment and $4.0 million , $26.7 million and $(0.1) million of non-allocated charges for the fiscal years ended August 31, 2018 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash settled. (2) Primarily relates to the 2017 Restructuring Plan. (3) Costs relate to the 2013 Restructuring Plan, which was substantially complete in fiscal year 2017. 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 $186.4 million of costs-to-date as of August 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 table below sets forth the cumulative restructuring and related charges incurred through August 31, 2018 for the 2017 Restructuring Plan (in thousands): 2017 Restructuring Plan (1) Employee severance and benefit costs $ 64,420 Lease costs 5,562 Asset write-off costs 110,540 Other related costs 5,892 Total restructuring and related charges $ 186,414 (1) Includes $56.8 million allocated to the EMS segment, $99.0 million allocated to the DMS segment and $30.6 million of unallocated costs. 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, 2016 (1) $ 17,266 $ 21 $ — $ 740 $ 18,027 Restructuring related charges 56,834 3,966 94,346 5,249 160,395 Asset write-off charge and other non-cash activity 1,319 59 (94,346 ) 65 (92,903 ) Cash payments (41,839 ) (2,381 ) — (2,911 ) (47,131 ) Balance as of August 31, 2017 (2) 33,580 1,665 — 3,143 38,388 Restructuring related charges 16,269 1,596 16,264 2,773 36,902 Asset write-off charge and other non-cash activity (127 ) 525 (16,264 ) 25 (15,841 ) Cash payments (31,591 ) (1,102 ) — (5,419 ) (38,112 ) Balance as of August 31, 2018 (2) $ 18,131 $ 2,684 $ — $ 522 $ 21,337 (1) Relates only to the 2013 Restructuring Plan. (2) Primarily relates to the 2017 Restructuring Plan. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Aug. 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Fiscal year 2018 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. Binding offer On July 18, 2018, the Company submitted a binding offer to form a strategic collaboration with Johnson & Johnson Medical Devices Companies that will significantly expand the Company's medical device manufacturing portfolio, diversification and capabilities in the DMS segment. The offer has been accepted with respect to the North American sites and is pending applicable consultative processes for sites in Switzerland and Germany. Completion of this transaction, which is subject to regulatory clearance and customary closing conditions, is expected to occur during fiscal years 2019 and 2020. Fiscal year 2017 Acquisitions On March 1, 2017, the Company completed the acquisition of Lewis Engineering, which was not deemed to be significant. The acquired business expanded the Company’s capabilities in precision machining, manufacturing and design engineering. The aggregate purchase price of the acquisition totaled approximately $ 31.4 million in cash. The acquisition has been accounted for as a business combination using the acquisition method of accounting. Assets acquired of $ 32.3 million , including $ 8.2 million in goodwill and $ 14.6 million in intangible assets, and liabilities assumed of $ 0.9 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 of $ 8.2 million was recorded to goodwill and was fully allocated to the DMS segment. The majority of the goodwill is currently expected to be deductible for income tax purposes. The Company expensed transaction costs in connection with the acquisition of approximately $ 0.8 million during the fiscal year ended August 31, 2017. The results of operations of the acquired business were included in the Company’s consolidated financial results beginning on the date of the acquisition. Pro forma information has not been provided as the acquisition is not deemed to be significant. Fiscal year 2016 Acquisitions On November 25, 2015, the Company entered into a master purchase agreement for certain assets and liabilities of various legal entities, collectively referred to as “Hanson”. On January 13, 2016, the Company completed the acquisition of the assets for approximately $ 139.2 million in cash, plus the assumption of certain liabilities of $ 230.0 million (such liabilities were subsequently paid in February 2016 and classified in our Consolidated Statement of Cash Flows as a component of cash flows from operating activities), with the exception of the real property, which closed on July 7, 2016, for approximately $ 33.3 million . Hanson is engaged in the business of manufacturing certain parts for customers in the DMS segment. The results of operations were included in the Company’s consolidated financial results beginning on January 13, 2016. Pro forma information has not been provided as the acquisition of Hanson is not deemed to be significant. During the first quarter of fiscal year 2016, the Company completed two additional acquisitions (Inala Technologies Limited and various legal entities collectively referred to as “Shemer Companies”) which were not deemed to be significant individually or in the aggregate. The acquired businesses expanded the Company’s capabilities in capital equipment, networking and telecommunications, and printing. The aggregate purchase price of these acquisitions totaled approximately $ 72.3 million in cash. The results of operations of the acquired businesses were included in the Company’s consolidated financial results beginning on the date of the acquisitions. Pro forma information has not been provided as the acquisitions are not deemed to be significant individually or in the aggregate. |
New Accounting Guidance
New Accounting Guidance | 12 Months Ended |
Aug. 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. The new standard will also 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 current accounting standard these costs are typically expensed as incurred. 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 Company currently recognizes the majority of its revenue from contracts with customers at a point in time, which is generally when the goods are shipped to or received by the customer, title and risk of ownership have passed, the price to the buyer is fixed or determinable and collectability is reasonable assured (net of estimated returns). Under the new accounting guidance, the Company will recognize revenue over time as manufacturing services are completed for the majority of its contracts with customers which will result in revenue being recognized earlier than under the historical guidance. Revenue for all other contracts with customers will be recognized at a point in time, upon transfer of control of the product to the customer, which is effectively no change to the Company's historical current accounting. The Company will adopt the new guidance under the modified retrospective approach with a cumulative adjustment increasing the opening balance of retained earnings by $30.0 million to $60.0 million , net of tax. Prior periods will not be retrospectively adjusted. While the Company is substantially complete with the process of quantifying the impacts that will result from applying the new guidance, its assessment will be finalized during the first quarter of fiscal year 2019. The Company has substantially completed the implementation of changes to its processes, policies and internal controls to meet the impact of the new standard and disclosure requirements. 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. In preparation for the adoption, the Company is implementing a new lease accounting system. The adoption of this standard will impact the Company’s Consolidated Balance Sheet. The Company is currently evaluating practical expedients and accounting policy elections, and assessing overall 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 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 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. During the second quarter of fiscal year 2018, the SEC staff issued 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 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 4 – “Income Taxes.” During the second quarter of fiscal year 2018, the FASB issued a new accounting standard which allows a reclassification from AOCI 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. During the fourth quarter of fiscal year 2018, the FASB issued a new accounting standard which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021, 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. |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | 12 Months Ended |
Aug. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | SCHEDULE II JABIL INC. AND SUBSIDIARIES SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period Additions and Adjustments Charged to Costs and Expenses Additions/ (Reductions) Charged to Other Accounts Write-offs Balance at End of Period Allowance for uncollectible accounts receivable: Fiscal year ended August 31, 2018 $ 14,134 $ 12,545 $ — $ (11,498 ) $ 15,181 Fiscal year ended August 31, 2017 $ 11,094 $ 6,255 $ — $ (3,215 ) $ 14,134 Fiscal year ended August 31, 2016 $ 11,663 $ 292 $ — $ (861 ) $ 11,094 Balance at Beginning of Period Additions and Adjustments Charged to Costs and Expenses Additions/ (Reductions) Charged to Other Accounts Write-offs Balance at End of Period Reserve for excess and obsolete inventory: Fiscal year ended August 31, 2018 $ 46,013 $ 35,538 $ — $ (20,611 ) $ 60,940 Fiscal year ended August 31, 2017 $ 32,221 $ 46,030 $ — $ (32,238 ) $ 46,013 Fiscal year ended August 31, 2016 $ 43,477 $ 12,145 $ — $ (23,401 ) $ 32,221 Balance at Beginning of Period Additions Charged to Costs and Expenses (1) Additions/ (Reductions) Charged to Other Accounts (2) Reductions Charged to Costs and Expenses (3) Balance at End of Period Valuation allowance for deferred taxes: Fiscal year ended August 31, 2018 $ 285,559 $ 18,418 $ (886 ) $ (79,604 ) $ 223,487 Fiscal year ended August 31, 2017 $ 344,828 $ 65,300 $ (97,203 ) $ (27,366 ) $ 285,559 Fiscal year ended August 31, 2016 $ 304,820 $ 23,891 $ 28,238 $ (12,121 ) $ 344,828 (1) During the fiscal years ended August 31, 2018 , 2017 and 2016 , the additions charged to costs and expenses primarily relate to the increase of deferred tax assets for sites with existing valuation allowances. (2) During the fiscal year ended August 31, 2017, the reductions charged to other accounts primarily relate to the decrease of net operating loss carry forwards due to non-U.S. unrecognized tax benefits and a non-U.S. tax audit. During the fiscal year ended August 31, 2016, the additions charged to other accounts primarily related to the recognition of excess tax benefits due to the early adoption of the new accounting guidance for share-based payment transactions. (3) During the fiscal year ended August 31, 2018, the reductions charged to costs and expenses primarily relate to the decrease of U.S. net operating loss carry forwards and tax credits due to utilization against the one-time transition tax as a result of the Tax Act. During the fiscal year ended August 31, 2017, the reductions charged to costs and expenses primarily relate to the release of certain non-U.S. valuation allowances. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts and operations of the Company, and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods' Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation. |
Use of Accounting Estimates | Use of Accounting Estimates Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of investments that are readily convertible to cash with original maturities of 90 days or less. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of trade receivables and other miscellaneous receivables. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. Allowances of $15.2 million and $14.1 million were recorded as of August 31, 2018 and 2017 , respectively. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for doubtful accounts are made as necessary. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first in, first out (FIFO) basis) and net realizable value. Inventory is valued based on current and forecasted usage, customer inventory-related contractual obligations and other lower of cost and net realizable value considerations. If actual market conditions or customer product demands are less favorable than those projected, additional valuation adjustments may be necessary. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Certain equipment held under capital leases is classified as property, plant and equipment and the related obligation is recorded as accrued expenses and other liabilities on the Consolidated Balance Sheets. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Operations. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of loss, if any. The recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount to the fair value. The Company determines the fair value of its indefinite-lived intangible assets principally based on a variation of the income approach, known as the relief from royalty method. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, the indefinite-lived intangible asset is considered impaired. Business combinations can also result in other intangible assets being recognized. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful life and include contractual agreements and customer relationships and intellectual property. No significant residual values are estimated for the amortizable intangible assets. |
Long-lived Assets | Long-lived Assets Long-lived assets, such as property, plant and equipment, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparing its carrying amount to the undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value, which is generally determined as the present value of estimated future cash flows or as the appraised value. |
Derivative Instruments | Derivative Instruments All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of accumulated other comprehensive income ("AOCI"), net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective portion of the gain or loss is recognized immediately in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized in earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2018 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities Total Balance as of August 31, 2016 $ 16,338 $ 7,784 $ (43,587 ) $ 941 $ (21,353 ) $ (39,877 ) Other comprehensive income (loss) before reclassifications 35,297 13,434 (1) 8,443 86 10,611 67,871 Amounts reclassified from AOCI 5,947 8,749 (2) 1,929 (3) (138 ) (3) 10,139 (4) 26,626 Other comprehensive income (loss) (5) 41,244 22,183 10,372 (52 ) 20,750 94,497 Balance as of August 31, 2017 $ 57,582 $ 29,967 $ (33,215 ) $ 889 $ (603 ) $ 54,620 Other comprehensive (loss) income before reclassifications (50,151 ) 1,225 (1) 7,067 (1,444 ) (8,679 ) (51,982 ) Amounts reclassified from AOCI — (23,076 ) (2) 1,127 (3) (88 ) (3) — (22,037 ) Other comprehensive (loss) income (5) (50,151 ) (21,851 ) 8,194 (1,532 ) (8,679 ) (74,019 ) Balance as of August 31, 2018 $ 7,431 $ 8,116 $ (25,021 ) $ (643 ) $ (9,282 ) $ (19,399 ) (1) Represents changes in fair value of derivative instruments. (2) Represents reclassification of net (gains) losses realized and included in net income related to derivative instruments. $14.8 million was classified into net income as a reduction of income tax expense related to derivative instruments for the fiscal year ended August 31, 2018 . The remaining amount for fiscal year 2018 and the amount for fiscal year 2017 was primarily classified as a component of cost of revenue. The Company expects to reclassify $9.0 million into earnings during the next 12 months, which will primarily be classified as a component of cost of revenue. (3) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information. (4) The portion of AOCI reclassified into earnings during the fiscal year ended August 31, 2017 for available for sale securities was due to an other than temporary impairment on securities and was classified as a component of other expense. (5) Amounts are net of tax, which are immaterial. |
Foreign Currency Transactions | Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. |
Revenue Recognition | Revenue Recognition The Company derives substantially all of its revenue from production and product management services (collectively referred to as “manufacturing services”), which encompasses the act of producing tangible components that are built to customer specifications, which are then provided to the customer. The Company recognizes manufacturing services revenue when such tangible components are shipped to or the goods are received by the customer, title and risk of ownership have passed, the price to the buyer is fixed or determinable and collectability is reasonably assured (net of estimated returns). The Company also derives revenue to a lesser extent from electronic design services to certain customers. Revenue from electronic design services is generally recognized upon completion and acceptance by the respective customer. Taxes collected from the Company’s customers and remitted to governmental authorities are presented within the Company’s Consolidated Statement of Operations on a net basis. The Company records shipping and handling costs reimbursed by the customer in revenue. Upfront payments from customers are recorded upon receipt as deferred income and are recognized as revenue as the related manufacturing services are provided. Effective September 1, 2018, the Company’s revenue accounting policies will change in conjunction with the adoption of the accounting standard for revenue recognition. See further discussion of this new standard in Note 16 - "New Accounting Guidance" to the Consolidated Financial Statements. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The stock-based compensation expense for time-based and performance based restricted stock is measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. For restricted stock awards with performance conditions, stock-based compensation expense is originally based on the number of shares that would vest if the Company achieved 100% of the performance goal, which is the intended outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition. If it becomes probable, based on the Company’s performance, that more or less than the current estimate of the awarded shares will vest, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate in the period that such probability changes. The stock-based compensation expense for market-based restricted stock awards is measured at fair value on the date of grant. The market conditions are considered in the grant date fair value using a Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The Company currently expects to satisfy share-based awards with registered shares available to be issued. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company considers future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. |
Earnings Per Share | 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 shares of common stock 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The three levels of the fair-value hierarchy include: Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. Refer to Note 2 – “Trade Accounts Receivable Securitization and Sale Programs”, Note 8 – “Notes Payable and Long-Term Debt”, Note 9 – “Postretirement and Other Employee Benefits” and Note 13 –“Derivative Financial Instruments and Hedging Activities” for disclosure surrounding the fair value of the Company’s deferred purchase price receivables, debt obligations, pension plan assets and derivative financial instruments, respectively. The Company has $50.0 million in Senior Non-Convertible Cumulative Preferred Stock of iQor Holdings, Inc. that accretes dividends at an annual rate of 8 percent and is redeemable on March 31, 2023 or upon a change in control. The Senior Non-Convertible Cumulative Preferred Stock is valued each reporting period using unobservable inputs (Level 3 inputs) based on an interest rate lattice model and is classified as an available for sale security with an unrealized loss recorded to AOCI. The unobservable inputs have an immaterial impact on the fair value calculation of the Senior Non-Convertible Cumulative Preferred Stock. As of August 31, 2018 and 2017 , the fair value was $47.3 million and $49.8 million , respectively, and is included within other assets on the Consolidated Balance Sheets. |
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. The new standard will also 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 current accounting standard these costs are typically expensed as incurred. 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 Company currently recognizes the majority of its revenue from contracts with customers at a point in time, which is generally when the goods are shipped to or received by the customer, title and risk of ownership have passed, the price to the buyer is fixed or determinable and collectability is reasonable assured (net of estimated returns). Under the new accounting guidance, the Company will recognize revenue over time as manufacturing services are completed for the majority of its contracts with customers which will result in revenue being recognized earlier than under the historical guidance. Revenue for all other contracts with customers will be recognized at a point in time, upon transfer of control of the product to the customer, which is effectively no change to the Company's historical current accounting. The Company will adopt the new guidance under the modified retrospective approach with a cumulative adjustment increasing the opening balance of retained earnings by $30.0 million to $60.0 million , net of tax. Prior periods will not be retrospectively adjusted. While the Company is substantially complete with the process of quantifying the impacts that will result from applying the new guidance, its assessment will be finalized during the first quarter of fiscal year 2019. The Company has substantially completed the implementation of changes to its processes, policies and internal controls to meet the impact of the new standard and disclosure requirements. 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. In preparation for the adoption, the Company is implementing a new lease accounting system. The adoption of this standard will impact the Company’s Consolidated Balance Sheet. The Company is currently evaluating practical expedients and accounting policy elections, and assessing overall 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 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 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. During the second quarter of fiscal year 2018, the SEC staff issued 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 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 4 – “Income Taxes.” During the second quarter of fiscal year 2018, the FASB issued a new accounting standard which allows a reclassification from AOCI 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. During the fourth quarter of fiscal year 2018, the FASB issued a new accounting standard which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for the Company beginning in the first quarter of fiscal year 2021, 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. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of Property, Plant and Equipment | Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Property, plant and equipment consists of the following (in thousands): August 31, 2018 2017 Land and improvements $ 144,136 $ 120,574 Buildings 849,975 804,861 Leasehold improvements 1,013,428 877,752 Machinery and equipment 3,983,025 3,680,881 Furniture, fixtures and office equipment 192,243 178,603 Computer hardware and software 601,955 583,569 Transportation equipment 17,215 22,080 Construction in progress 42,984 85,748 6,844,961 6,354,068 Less accumulated depreciation and amortization 3,646,945 3,125,390 $ 3,198,016 $ 3,228,678 |
Summary of Changes in AOCI | The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2018 (in thousands): Foreign Currency Translation Adjustment Derivative Instruments Actuarial (Loss) Gain Prior Service Cost Available for Sale Securities Total Balance as of August 31, 2016 $ 16,338 $ 7,784 $ (43,587 ) $ 941 $ (21,353 ) $ (39,877 ) Other comprehensive income (loss) before reclassifications 35,297 13,434 (1) 8,443 86 10,611 67,871 Amounts reclassified from AOCI 5,947 8,749 (2) 1,929 (3) (138 ) (3) 10,139 (4) 26,626 Other comprehensive income (loss) (5) 41,244 22,183 10,372 (52 ) 20,750 94,497 Balance as of August 31, 2017 $ 57,582 $ 29,967 $ (33,215 ) $ 889 $ (603 ) $ 54,620 Other comprehensive (loss) income before reclassifications (50,151 ) 1,225 (1) 7,067 (1,444 ) (8,679 ) (51,982 ) Amounts reclassified from AOCI — (23,076 ) (2) 1,127 (3) (88 ) (3) — (22,037 ) Other comprehensive (loss) income (5) (50,151 ) (21,851 ) 8,194 (1,532 ) (8,679 ) (74,019 ) Balance as of August 31, 2018 $ 7,431 $ 8,116 $ (25,021 ) $ (643 ) $ (9,282 ) $ (19,399 ) (1) Represents changes in fair value of derivative instruments. (2) Represents reclassification of net (gains) losses realized and included in net income related to derivative instruments. $14.8 million was classified into net income as a reduction of income tax expense related to derivative instruments for the fiscal year ended August 31, 2018 . The remaining amount for fiscal year 2018 and the amount for fiscal year 2017 was primarily classified as a component of cost of revenue. The Company expects to reclassify $9.0 million into earnings during the next 12 months, which will primarily be classified as a component of cost of revenue. (3) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information. (4) The portion of AOCI reclassified into earnings during the fiscal year ended August 31, 2017 for available for sale securities was due to an other than temporary impairment on securities and was classified as a component of other expense. (5) Amounts are net of tax, which are immaterial. |
Dilutive Shares Outstanding Not Included in the Computation of Earnings Per Share | Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Stock appreciation rights — 265 2,381 Restricted stock awards 2,426 4,539 7,599 |
Trade Accounts Receivable Sec_2
Trade Accounts Receivable Securitization and Sale Programs (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Asset Backed Securitization Programs Key Terms | Following is a summary of the asset-backed securitization programs and key terms: Maximum Amount of Net Cash Proceeds (in millions) (1) Expiration Date North American $ 200.0 October 20, 2020 (2) Foreign $ 400.0 September 30, 2021 (3) (1) Maximum amount available at any one time. (2) On October 9, 2018, the North American asset-backed securitization program was terminated and the Company repurchased the outstanding receivables. (3) On September 21, 2018, the foreign asset-backed securitization program terms were amended and the program was extended to September 30, 2021. Under the terms of the amended agreement, the Company continuously sells designated pools of trade accounts receivable to a special purpose entity, which in turn sells a portion of the receivables to an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution. In connection with this amendment, there is no longer a deferred purchase price receivable for the foreign asset-backed securitization program. |
Asset Backed Securitization Programs Amounts Recognized | In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Fiscal Year Ended August 31, 2018 2017 2016 Eligible trade accounts receivable sold $ 8,386 $ 8,878 $ 7,870 Cash proceeds received (1) $ 7,838 $ 8,300 $ 7,336 Pre-tax losses on sale of receivables (2) $ 15 $ 9 $ 5 Deferred purchase price receivables as of August 31 (3) $ 533 $ 569 $ 527 (1) Of this amount, $ 0.0 million , $ 0.1 million and $ 8.4 million , respectively, represented new transfers during fiscal years 2018 , 2017 and 2016 , respectively. The remainder represented proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Consolidated Statements of Operations. (3) Recorded initially at fair value as prepaid expenses and other current assets on the 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 | Following is a summary of the nine 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 $ 875.0 Uncommitted August 31, 2022 (2)(3) B $ 150.0 Uncommitted November 30, 2018 (4) C 800.0 CNY Uncommitted February 13, 2019 D $ 100.0 Uncommitted May 4, 2023 (5) E $ 50.0 Uncommitted August 25, 2019 F $ 150.0 Uncommitted January 25, 2019 (6) G $ 50.0 Uncommitted February 23, 2023 (3) H $ 100.0 Uncommitted August 10, 2019 (7) I $ 100.0 Uncommitted July 21, 2019 (8) (1) Maximum amount available at any one time. (2) The maximum amount under the program will reduce to $650.0 million on February 1, 2019. (3) Any party may elect to terminate the agreement upon 15 days prior notice. (4) The program will automatically extend for one year at each expiration date unless either party provides 10 days notice of termination. (5) Any party may elect to terminate the agreement upon 30 days prior notice. (6) The program will be automatically extended through January 25, 2023 unless either party provides 30 days notice of termination. (7) The program will be automatically extended through August 10, 2023 unless either party provides 30 days notice of termination. (8) The program will be automatically extended through August 21, 2023 unless either party provides 30 days notice of termination. |
Trade Accounts Receivable Sale Programs Amounts Recognized | In connection with the trade accounts receivable sale programs, the Company recognized the following for the fiscal years ended August 31 (in millions): 2018 2017 2016 Trade accounts receivable sold $ 5,480 $ 2,968 $ 3,651 Cash proceeds received $ 5,463 $ 2,962 $ 3,647 Loss on sales (1) $ 17 $ 6 $ 4 (1) The resulting losses on the sales of trade accounts receivable during fiscal years 2018 , 2017 and 2016 were recorded to other expense within the Consolidated Statements of Operations. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): August 31, 2018 August 31, 2017 Raw materials $ 2,070,569 $ 1,574,241 Work in process 788,742 822,628 Finished goods 659,335 591,227 Reserve for excess and obsolete inventory (60,940 ) (46,013 ) Inventories, net $ 3,457,706 $ 2,942,083 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Tax Expense | Income (loss) before income tax expense is summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 U.S. (1) $ (426,897 ) $ (373,690 ) $ (317,427 ) Non-U.S. (1) 800,298 629,923 704,472 $ 373,401 $ 256,233 $ 387,045 (1) The U.S. and non-U.S. components of income (loss) before income tax expense include the elimination of intercompany foreign dividends paid to the U.S. |
Income Tax Expense (Benefit) | Income tax expense (benefit) is summarized below (in thousands): Fiscal Year Ended August 31, Current Deferred Total 2018: U.S. – Federal $ 69,080 $ (24,342 ) $ 44,738 U.S. – State 134 93 227 Non-U.S. 178,790 62,105 240,895 $ 248,004 $ 37,856 $ 285,860 2017: U.S. – Federal $ 2,436 $ 253 $ 2,689 U.S. – State 12 30 42 Non-U.S. 188,872 (62,537 ) 126,335 $ 191,320 $ (62,254 ) $ 129,066 2016: U.S. – Federal $ (649 ) $ 73 $ (576 ) U.S. – State (166 ) 9 (157 ) Non-U.S. 157,069 (24,187 ) 132,882 $ 156,254 $ (24,105 ) $ 132,149 |
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense | Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to the actual income tax expense are summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Tax at U.S. federal statutory income tax rate (1) $ 95,852 $ 89,682 $ 135,470 State income taxes, net of federal tax benefit (5,417 ) (8,474 ) (5,121 ) Impact of foreign tax rates (2) (71,889 ) (109,466 ) (144,521 ) Permanent impact of non-deductible cost 21,988 7,336 3,408 Income tax credits (10,405 ) (16,254 ) (5,040 ) Changes in tax rates on deferred tax assets and liabilities (3) 15,048 688 182 Transition tax related to the Tax Act (4) 232,405 — — Change in indefinite reinvestment assertion related to the Tax Act (5) 21,754 — — Valuation allowance (6) (61,186 ) 37,934 11,770 Non-deductible equity compensation 20,443 11,531 18,350 Impact of intercompany charges and dividends (7) 27,442 98,052 94,596 Reclassification of stranded tax effects in AOCI (14,811 ) — — Other, net 14,636 18,037 23,055 Total income tax expense $ 285,860 $ 129,066 $ 132,149 (1) The U.S. federal statutory income tax rate was 25.7% , 35% and 35% for fiscal years ended August 31, 2018, 2017 and 2016, respectively. As a result of the Tax Cuts and Jobs Act of 2017 ("Tax Act"), the Company will be subject to a blended U.S. federal tax rate of 25.7% for the fiscal year ended August 31, 2018 and a 21.0% U.S. federal tax rate for future fiscal years. (2) For the fiscal year ended August 31, 2018, the decrease in the impact of foreign tax rates was primarily due to a decrease in the U.S. federal statutory income tax rate from 35% to 25.7% due to the Tax Act. (3) For the fiscal year ended August 31, 2018, the increase in the changes in tax rates on deferred tax assets and liabilities was primarily due to the Tax Act. This increase excludes the impact of the enacted rate change on the U.S. valuation allowance. (4) The Tax Act introduced a one-time mandatory income inclusion of the historically untaxed foreign earnings of a U.S. company's foreign subsidiaries and will effectively tax such income at reduced tax rates ("transition tax"). For the fiscal year ended August 31, 2018, the transition tax related to the Tax Act reflects the $65.9 million provisional one-time transition tax inclusive of unrecognized tax benefits and the corresponding utilization of U.S. federal net operating losses and tax credits that historically had valuation allowances. (5) For the fiscal year ended August 31, 2018, the change in indefinite reinvestment assertion related to the Tax Act reflects the $85.0 million of foreign taxes that would be incurred upon future remittances of certain foreign earnings less the write off of a previously recorded U.S. deferred tax liability that is no longer taxable due to the Tax Act. (6) For the fiscal year ended August 31, 2018, the valuation allowance decrease was due to utilization of U.S. federal net operating losses and tax credits against the one-time transition tax and the change in enacted tax rate applied to U.S. deferred tax assets and liabilities. The tax benefit from the valuation allowance reversal on U.S. federal net operating losses utilized in the one-time transition tax was $85.0 million . The valuation allowance decrease is partially offset by the current year increase of deferred tax assets in sites with existing valuation allowances. (7) For the fiscal year ended August 31, 2018, the decrease in the impact of intercompany charges and dividends was due to a change in the U.S. taxation of foreign dividends as a result of the Tax Act. |
Deferred Tax Assets and Liabilities | The significant components of the deferred tax assets and liabilities are summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 Deferred tax assets: Net operating loss carry forward $ 119,259 $ 268,853 Receivables 7,111 7,497 Inventories 7,634 11,618 Compensated absences 8,266 10,981 Accrued expenses 81,912 93,413 Property, plant and equipment, principally due to differences in depreciation and amortization 97,420 81,954 U.S. federal and state tax credits 70,153 57,122 Foreign jurisdiction tax credits 25,887 24,641 Equity compensation – U.S. 7,566 16,460 Equity compensation – Non-U.S. 2,401 2,700 Other 18,176 14,573 Total deferred tax assets before valuation allowances 445,785 589,812 Less valuation allowances (223,487 ) (285,559 ) Net deferred tax assets $ 222,298 $ 304,253 Deferred tax liabilities: Unremitted earnings of non-U.S. subsidiaries 74,654 86,202 Intangible assets 39,122 48,229 Cash flow hedges — 8,564 Other 4,655 4,863 Total deferred tax liabilities $ 118,431 $ 147,858 Net deferred tax assets $ 103,867 $ 156,395 |
Reconciliations of Unrecognized Tax Benefits | Reconciliations of the unrecognized tax benefits are summarized below (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Beginning balance $ 201,355 $ 149,898 $ 154,648 Additions for tax positions of prior years 14,465 2,155 7,974 Reductions for tax positions of prior years (21,045 ) (12,233 ) (20,045 ) Additions for tax positions related to current year 81,866 77,807 25,892 Cash settlements (1,659 ) (2,298 ) (6,553 ) Reductions from lapses in statutes of limitations (7,496 ) (10,446 ) (7,099 ) Reductions from settlements with taxing authorities (5,928 ) (6,061 ) (1,787 ) Foreign exchange rate adjustment (4,853 ) 2,533 (3,132 ) Ending balance $ 256,705 $ 201,355 $ 149,898 Unrecognized tax benefits that would affect the effective tax rate (if recognized) $ 117,455 $ 75,223 $ 72,152 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Estimated useful lives for major classes of depreciable assets are as follows: Asset Class Estimated Useful Life Buildings Up to 35 years Leasehold improvements Shorter of lease term or useful life of the improvement Machinery and equipment 2 to 10 years Furniture, fixtures and office equipment 5 years Computer hardware and software 3 to 7 years Transportation equipment 3 years Property, plant and equipment consists of the following (in thousands): August 31, 2018 2017 Land and improvements $ 144,136 $ 120,574 Buildings 849,975 804,861 Leasehold improvements 1,013,428 877,752 Machinery and equipment 3,983,025 3,680,881 Furniture, fixtures and office equipment 192,243 178,603 Computer hardware and software 601,955 583,569 Transportation equipment 17,215 22,080 Construction in progress 42,984 85,748 6,844,961 6,354,068 Less accumulated depreciation and amortization 3,646,945 3,125,390 $ 3,198,016 $ 3,228,678 |
Depreciation and Maintenance and Repair Expenses | Depreciation and maintenance and repair expenses were as follows for the periods indicated (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Depreciation expense $ 735,213 $ 724,856 $ 659,542 Maintenance and repair expense $ 266,691 $ 234,332 $ 197,373 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Allocated to Reportable Segments | The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”), during the fiscal years ended August 31, 2018 and 2017 (in thousands): EMS DMS Total Balance as of August 31, 2016 $ 51,179 $ 543,594 $ 594,773 Acquisitions and adjustments — 8,186 8,186 Change in foreign currency exchange rates 1,395 3,830 5,225 Balance as of August 31, 2017 52,574 555,610 608,184 Acquisitions and adjustments (1) 30,763 (8,186 ) 22,577 Change in foreign currency exchange rates (667 ) (2,349 ) (3,016 ) Balance as of August 31, 2018 $ 82,670 $ 545,075 $ 627,745 (1) Includes $8.2 million of goodwill reallocated between DMS and EMS during fiscal year 2018. |
Schedule of Intangible Assets and Goodwill | The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in thousands): August 31, 2018 August 31, 2017 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Goodwill $ 1,647,567 $ 1,019,822 $ 1,628,006 $ 1,019,822 The following table presents the Company’s total purchased intangible assets as of August 31, 2018 and 2017 (in thousands): Weighted Average Amortization Period (in years) August 31, 2018 August 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contractual agreements and customer relationships 11 $ 289,947 $ (153,415 ) $ 136,532 $ 265,148 $ (132,691 ) $ 132,457 Intellectual property 5 168,181 (148,672 ) 19,509 160,456 (131,407 ) 29,049 Finite-lived trade names Not applicable 5,091 (5,091 ) — 5,114 (5,114 ) — Trade names Indefinite 123,090 — 123,090 123,090 — 123,090 Total intangible assets 9 $ 586,309 $ (307,178 ) $ 279,131 $ 553,808 $ (269,212 ) $ 284,596 |
Estimated Future Amortization Expense | The estimated future amortization expense is as follows (in thousands): Fiscal Year Ended August 31, 2019 $ 30,212 2020 26,645 2021 18,261 2022 17,119 2023 14,704 Thereafter 49,100 Total $ 156,041 |
Accrued Expenses (Table)
Accrued Expenses (Table) | 12 Months Ended |
Aug. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): August 31, 2018 August 31, 2017 Deferred income $ 691,365 $ 1,017,144 Accrued compensation and employee benefits 570,400 534,143 Other accrued expenses 1,000,979 617,428 Accrued expenses $ 2,262,744 $ 2,168,715 |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes payable and long-term debt outstanding as of August 31, 2018 and 2017 are summarized below (in thousands): Maturity Date August 31, 2018 August 31, 2017 8.250% Senior Notes (1)(2)(3) Mar 15, 2018 $ — $ 399,506 5.625% Senior Notes (1)(2) Dec 15, 2020 397,995 397,104 4.700% Senior Notes (1)(2) Sep 15, 2022 497,350 496,696 4.900% Senior Notes (1) Jul 14, 2023 298,814 298,571 3.950% Senior Notes (1)(2)(3) Jan 12, 2028 494,208 — Borrowings under credit facilities (4)(5) Nov 8, 2022 and Aug 24, 2020 — — Borrowings under loans (4)(5) Nov 8, 2022 and Aug 24, 2020 830,332 458,395 Total notes payable and long-term debt 2,518,699 2,050,272 Less current installments of notes payable and long-term debt 25,197 444,255 Notes payable and long-term debt, less current installments $ 2,493,502 $ 1,606,017 (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 three months ended February 28, 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 for additional working capital to support the continued growth of the business. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $1.8 billion , which may, subject to the lenders’ discretion, potentially be increased up to $2.3 billion ("the 2017 Revolving Credit Facility") and (ii) a $500.0 million Term Loan Facility ("the 2017 Term Loan Facility"), collectively “the 2017 Credit Facility.” The 2017 Credit Facility expires on November 8, 2022. The 2017 Revolving Credit Facility is subject to two whole or partial one -year extensions, at the lender’s discretion. Interest and fees on the 2017 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 fiscal year ended August 31, 2018 , the interest rates on the 2017 Revolving Credit Facility ranged from 2.4% to 5.2% and the 2017 Term Loan Facility ranged from 2.6% to 3.5% . Interest is charged at a rate equal to (a) for the 2017 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 2017 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 prime 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. (5) On August 24, 2018, the Company entered into a senior unsecured two -year credit agreement for additional working capital to support the continued growth of the business. The credit agreement provides for: (i) a Revolving Credit Facility in the initial amount of $150.0 million ("the 2018 Revolving Credit Facility") and (ii) a $350.0 million Term Loan Facility ("the 2018 Term Loan Facility"), collectively “the 2018 Credit Facility.” The 2018 Credit Facility expires on August 24, 2020. During the fiscal year ended August 31, 2018 , no draws were made on the 2018 Revolving Credit Facility and $350.00 million was borrowed against the 2018 Term Loan Facility. During the fiscal year ended August 31, 2018 the interest rate on the 2018 Term Loan Facility was 3.1% . Interest is charged at a rate equal to (a) for the 2018 Revolving Credit Facility, either the base rate or 0.9750% above the Eurocurrency rate and (b) for the 2018 Term Loan Facility, either 0.125% above the base rate or 1.125% above the Eurocurrency rate. The base rate represents the greatest of: (i) Mizuho Bank, Ltd.’s prime 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 for the applicable interest period, but not less than zero. Fees include a facility fee based on the revolving credit commitments of the lenders. Additionally, the Company’s foreign subsidiaries had various additional credit facilities that finance their future growth and any corresponding working capital needs. As of August 31, 2018 , the Company has $2.3 billion in available unused borrowing capacity under its revolving credit facilities. |
Debt Maturities | Debt maturities as of August 31, 2018 are as follows (in thousands): Fiscal Year Ended August 31, 2019 $ 25,197 2020 374,369 2021 441,580 2022 49,806 2023 1,133,353 Thereafter 494,394 Total $ 2,518,699 |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Retirement Benefits [Abstract] | |
Reconciliation of Change in Benefit Obligations for Plans | The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2018 2017 Change in projected benefit obligation Beginning projected benefit obligation $ 167,714 $ 182,278 Service cost 1,063 1,068 Interest cost 3,807 2,942 Actuarial (gain) loss (6,019 ) (10,147 ) Curtailments gain (998 ) — Settlements paid from plan assets — (2,133 ) Total benefits paid (6,211 ) (6,790 ) Plan participants’ contributions 31 27 Amendments 1,864 — Terminations — (106 ) Effect of conversion to U.S. dollars (147 ) 575 Ending projected benefit obligation $ 161,104 $ 167,714 Change in plan assets Beginning fair value of plan assets 146,698 143,702 Actual return on plan assets 8,146 2,582 Settlements paid from plan assets — (2,133 ) Employer contributions 1,811 6,981 Benefits paid from plan assets (4,758 ) (3,759 ) Plan participants’ contributions 31 27 Effect of conversion to U.S. dollars (213 ) (702 ) Ending fair value of plan assets $ 151,715 $ 146,698 Unfunded status $ (9,389 ) $ (21,016 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 428 $ 182 Accrued benefit liability, noncurrent $ 8,961 $ 20,834 Accumulated other comprehensive loss (income) (1) Actuarial loss, before tax $ 22,387 $ 32,247 Prior service cost (credit), before tax $ 719 $ (1,185 ) (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2019 . |
Reconciliation of Changes in Pension Plan Assets | The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2018 2017 Change in projected benefit obligation Beginning projected benefit obligation $ 167,714 $ 182,278 Service cost 1,063 1,068 Interest cost 3,807 2,942 Actuarial (gain) loss (6,019 ) (10,147 ) Curtailments gain (998 ) — Settlements paid from plan assets — (2,133 ) Total benefits paid (6,211 ) (6,790 ) Plan participants’ contributions 31 27 Amendments 1,864 — Terminations — (106 ) Effect of conversion to U.S. dollars (147 ) 575 Ending projected benefit obligation $ 161,104 $ 167,714 Change in plan assets Beginning fair value of plan assets 146,698 143,702 Actual return on plan assets 8,146 2,582 Settlements paid from plan assets — (2,133 ) Employer contributions 1,811 6,981 Benefits paid from plan assets (4,758 ) (3,759 ) Plan participants’ contributions 31 27 Effect of conversion to U.S. dollars (213 ) (702 ) Ending fair value of plan assets $ 151,715 $ 146,698 Unfunded status $ (9,389 ) $ (21,016 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 428 $ 182 Accrued benefit liability, noncurrent $ 8,961 $ 20,834 Accumulated other comprehensive loss (income) (1) Actuarial loss, before tax $ 22,387 $ 32,247 Prior service cost (credit), before tax $ 719 $ (1,185 ) (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2019 . |
Schedule of Amounts Recognized in Balance Sheet | The benefit obligations and plan assets, changes to the benefit obligation and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in thousands): Pension 2018 2017 Change in projected benefit obligation Beginning projected benefit obligation $ 167,714 $ 182,278 Service cost 1,063 1,068 Interest cost 3,807 2,942 Actuarial (gain) loss (6,019 ) (10,147 ) Curtailments gain (998 ) — Settlements paid from plan assets — (2,133 ) Total benefits paid (6,211 ) (6,790 ) Plan participants’ contributions 31 27 Amendments 1,864 — Terminations — (106 ) Effect of conversion to U.S. dollars (147 ) 575 Ending projected benefit obligation $ 161,104 $ 167,714 Change in plan assets Beginning fair value of plan assets 146,698 143,702 Actual return on plan assets 8,146 2,582 Settlements paid from plan assets — (2,133 ) Employer contributions 1,811 6,981 Benefits paid from plan assets (4,758 ) (3,759 ) Plan participants’ contributions 31 27 Effect of conversion to U.S. dollars (213 ) (702 ) Ending fair value of plan assets $ 151,715 $ 146,698 Unfunded status $ (9,389 ) $ (21,016 ) Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 428 $ 182 Accrued benefit liability, noncurrent $ 8,961 $ 20,834 Accumulated other comprehensive loss (income) (1) Actuarial loss, before tax $ 22,387 $ 32,247 Prior service cost (credit), before tax $ 719 $ (1,185 ) (1) The Company anticipates amortizing $0.8 million and $0.0 million , before tax, of net actuarial loss and prior service costs balances, respectively, to net periodic cost in fiscal year 2019 . |
Information about Net Periodic Benefit Cost for Plans | The following table provides information about the net periodic benefit cost for the plans for fiscal years 2018 , 2017 and 2016 (in thousands): Pension 2018 2017 2016 Service cost $ 1,063 $ 1,068 $ 883 Interest cost 3,807 2,942 4,844 Expected long-term return on plan assets (5,954 ) (4,206 ) (5,560 ) Recognized actuarial loss 1,127 1,929 1,046 Amortization of prior service credit (88 ) (138 ) (139 ) Net settlement loss 116 1,472 — Net periodic benefit cost $ 71 $ 3,067 $ 1,074 |
Weighted-Average Actuarial Assumptions | Weighted-average actuarial assumptions used to determine net periodic benefit cost and projected benefit obligation for the plans for the fiscal years 2018 , 2017 and 2016 were as follows: Pension 2018 2017 2016 Net periodic benefit cost: Expected long-term return on plan assets (1) 3.8 % 3.3 % 4.3 % Rate of compensation increase 3.3 % 2.7 % 2.4 % Discount rate 2.1 % 1.9 % 2.9 % Projected benefit obligation: Expected long-term return on plan assets 3.6 % 4.0 % 3.3 % Rate of compensation increase 4.4 % 4.4 % 4.1 % Discount rate (2) 2.2 % 2.3 % 1.7 % (1) The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan. (2) The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover. |
Fair Values of Plan Assets by Asset Category | The fair values of the plan assets held by the Company by asset category are as follows (in thousands): August 31, 2018 August 31, 2017 Fair Value Hierarchy Fair Value Asset Allocation Fair Value Asset Allocation Asset Category Cash and cash equivalents (1) Level 1 $ 6,682 4 % $ 5,760 4 % Equity Securities: Global equity securities (2)(3) Level 2 35,932 24 % 41,971 29 % Debt Securities: Corporate bonds (3) Level 2 41,088 27 % 41,987 29 % Government bonds (3) Level 2 51,597 34 % 41,738 28 % Other Investments: Insurance contracts (4) Level 3 16,416 11 % 15,242 10 % Fair value of plan assets $ 151,715 100 % $ 146,698 100 % (1) Carrying value approximates fair value. (2) Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries. (3) Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics. (4) Consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value and is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. |
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets | The following table provides information for the plans with an accumulated benefit obligation for fiscal years 2018 and 2017 (in thousands): August 31, 2018 2017 Projected benefit obligation $ 161,104 $ 167,714 Accumulated benefit obligation $ 152,380 $ 158,971 Fair value of plan assets $ 151,715 $ 146,698 |
Estimated Future Benefit Payments | The Company expects to make cash contributions between $0.2 million and $0.4 million to its funded pension plans during fiscal year 2019 . The estimated future benefit payments, which reflect expected future service, are as follows (in thousands): Fiscal Year Ended August 31, Amount 2019 $ 4,687 2020 5,502 2021 5,065 2022 5,390 2023 5,974 2024 through 2028 37,466 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Non-Cancelable Operating Leases | The future minimum lease payments under non-cancelable operating leases as of August 31, 2018 were as follows (in thousands): Fiscal Year Ending August 31, Amount 2019 $ 126,038 2020 97,789 2021 81,286 2022 66,400 2023 49,309 Thereafter 142,089 Total minimum lease payments $ 562,911 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Recognized Stock-based Compensation Expense | The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Restricted stock and stock appreciation rights (“SARS”) $ 84,082 $ 42,122 $ 52,459 Employee stock purchase plan 6,891 6,334 6,538 Other (1) 7,538 88 — Total $ 98,511 $ 48,544 $ 58,997 (1) For the fiscal year ended August 31, 2018, represents a one-time cash-settled stock award that vested on November 30, 2017. |
Schedule of Shares Available for Issuance | Following is a reconciliation of the shares available to be issued under the 2011 Plan as of August 31, 2018 : Shares Available for Grant Balance as of August 31, 2017 12,228,936 SARS canceled 35,439 Restricted stock awards forfeited, net of grants (1) 572,783 Balance as of August 31, 2018 12,837,158 (1) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. |
Summary of Option Activity | The following table summarizes SARS activity from August 31, 2017 through August 31, 2018 : SARS Outstanding Average Intrinsic Value (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Outstanding as of August 31, 2017 319,241 $ 3,651 $ 19.91 2.10 SARS canceled (35,439 ) $ 21.56 SARS exercised (127,001 ) $ 21.31 Outstanding and exercisable as of August 31, 2018 156,801 $ 1,748 $ 18.41 3.10 |
Restricted Stock Activity | The following table summarizes restricted stock activity from August 31, 2017 through August 31, 2018 : Shares Weighted- Average Grant-Date Fair Value Outstanding as of August 31, 2017 11,652,319 $ 22.00 Changes during the period Shares granted (1) 2,751,300 $ 29.40 Shares vested (2,727,229 ) $ 22.95 Shares forfeited (3,324,083 ) $ 19.20 Outstanding as of August 31, 2018 8,352,307 $ 24.34 (1) For those shares granted that are based on the achievement of certain performance criteria, the amount represents the maximum number of shares that can vest. During the fiscal year ended August 31, 2018 , the Company awarded approximately 1.4 million time-based restricted stock units, 0.4 million performance-based restricted stock units and 0.4 million market-based restricted stock units based on target performance criteria. |
Schedule of Share-based Compensation Information | The following table represents the restricted stock and SARS stock-based compensation information for the periods indicated (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Intrinsic value of SARS exercised $ 909 $ 5,053 $ 506 Fair value of restricted stock vested $ 62,592 $ 44,010 $ 34,857 Tax benefit (expense) for stock compensation expense (1) $ 1,122 $ 560 $ 991 Unrecognized stock-based compensation expense — restricted stock $ 41,940 Remaining weighted-average period for restricted stock expense 1.4 years (1) Classified as income tax expense within the Consolidated Statements of Operations. |
Weighted Average Assumptions used in Black-Scholes Option Pricing Model | The fair value of shares issued under the ESPP was estimated on the commencement date of each offering period using the Black-Scholes option pricing model. The following weighted-average assumptions were used in the model for each respective period: Fiscal Year Ended August 31, 2018 2017 2016 Expected dividend yield 0.6 % 0.8 % 0.7 % Risk-free interest rate 1.4 % 0.5 % 0.3 % Expected volatility (1) 23.0 % 33.0 % 28.1 % Expected life 0.5 years 0.5 years 0.5 years (1) The expected volatility was estimated using the historical volatility derived from the Company’s common stock. |
Cash Dividends Declared to Common Stockholders | The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders during fiscal years 2018 and 2017 : Dividend Dividend Total of Cash Date of Record for Dividend Cash (in thousands, except for per share data) 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 July 18, 2018 $ 0.08 $ 13,677 August 15, 2018 September 4, 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 July 20, 2017 $ 0.08 $ 14,698 August 15, 2017 September 1, 2017 |
Concentration of Risk and Seg_2
Concentration of Risk and Segment Data (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Segment Reporting [Abstract] | |
Sales to Customers Who Accounted for 10 Percent or More of Company's Net Revenues, Expressed as Percentage of Consolidated Net Revenue and Accounts Receivable for Each Customer | Sales to the following customer that accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for the customer, were as follows: Percentage of Net Revenue Fiscal Year Ended August 31, Percentage of Accounts Receivable as of August 31, 2018 2017 2016 2018 2017 Apple, Inc. (1) 28 % 24 % 24 % * * * Amount was less than 10% of total. (1) Sales to this customer were reported in the DMS operating segment. |
Reconciliation of Revenue from Segments to Consolidated | The following tables set forth operating segment information (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 Net revenue EMS $ 12,268,600 $ 11,077,622 $ 11,029,132 DMS 9,826,816 7,985,499 7,323,954 $ 22,095,416 $ 19,063,121 $ 18,353,086 |
Reconciliation of Income from Segments to Consolidated | Fiscal Year Ended August 31, 2018 2017 2016 Segment income and reconciliation of income before tax EMS $ 451,149 $ 436,110 $ 373,732 DMS 316,998 230,893 256,588 Total segment income $ 768,147 $ 667,003 $ 630,320 Reconciling items: Amortization of intangibles (38,490 ) (35,524 ) (37,121 ) Stock-based compensation expense and related charges (98,511 ) (48,544 ) (58,997 ) Restructuring and related charges (36,902 ) (160,395 ) (11,369 ) Acquisition and integration costs (8,082 ) — — Distressed customer charges (32,710 ) (10,198 ) — Business interruption and impairment charges, net (1) (11,299 ) — — Loss on disposal of subsidiaries — (2,112 ) — Other expense (37,563 ) (28,448 ) (8,380 ) Interest income 17,813 12,525 9,128 Interest expense (149,002 ) (138,074 ) (136,536 ) Income before income tax $ 373,401 $ 256,233 $ 387,045 (1) Charges, net of insurance proceeds of $24.9 million , for the fiscal year ended August 31, 2018 relate to business interruption and asset impairment costs associated with damage from Hurricane Maria, which impacted our operations in Cayey, Puerto Rico, which is classified as a component of cost of revenue and selling, general and administrative expenses in the Consolidated Statements of Operations. |
Reconciliation of Assets from Segment to Consolidated | August 31, 2018 August 31, 2017 Total assets EMS $ 3,456,866 $ 2,778,820 DMS 5,378,436 5,290,468 Other non-allocated assets 3,210,339 3,026,707 $ 12,045,641 $ 11,095,995 |
External Net Revenue, Net of Intercompany Eliminations, and Long-Lived Asset Information | The following tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in thousands): Fiscal Year Ended August 31, 2018 2017 2016 External net revenue: Singapore $ 7,193,414 $ 5,585,837 $ 4,983,711 China 4,585,355 4,012,950 3,873,212 Mexico 3,533,437 3,207,059 3,043,609 Malaysia 1,389,851 1,119,384 1,113,456 Hungary 897,033 944,448 1,130,466 Other 2,651,632 2,547,750 2,499,241 Foreign source revenue 20,250,722 17,417,428 16,643,695 U.S. 1,844,694 1,645,693 1,709,391 Total $ 22,095,416 $ 19,063,121 $ 18,353,086 August 31, 2018 2017 Long-lived assets: China $ 1,770,732 $ 1,922,676 Singapore 191,506 204,181 Mexico 256,086 196,218 Taiwan 130,062 136,685 Malaysia 113,011 74,341 Hungary 91,063 89,814 Spain 79,991 83,064 Poland 60,847 55,617 Other 334,466 343,473 Long-lived assets related to foreign operations 3,027,764 3,106,069 U.S. 1,077,128 1,015,389 Total $ 4,104,892 $ 4,121,458 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes | The following table presents the fair values of the Company’s derivative instruments located on the Consolidated Balance Sheets utilized for foreign currency risk management purposes as of August 31, 2018 and 2017 (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value as of August 31, 2018 (1) Fair Value as of August 31, 2017 (1) Balance Sheet Location Fair Value as of August 31, 2018 (1) Fair Value as of August 31, 2017 (1) Derivatives designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 225 $ 8,380 Accrued expenses $ 13,364 $ 1,408 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Prepaid expenses and other current assets $ 10,125 $ 31,280 Accrued expenses $ 46,171 $ 9,131 (1) Classified as Level 2 in the fair-value hierarchy. |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Related Charges | Following is a summary of the Company’s restructuring and related charges (in thousands): Fiscal Year Ended August 31, 2018(2) 2017(2) 2016(3) Employee severance and benefit costs $ 16,269 $ 56,834 $ 8,845 Lease costs 1,596 3,966 (43 ) Asset write-off costs 16,264 94,346 1,170 Other related costs 2,773 5,249 1,397 Total restructuring and related charges (1) $ 36,902 $ 160,395 $ 11,369 (1) Includes $16.3 million , $51.3 million and $10.7 million recorded in the EMS segment, $16.6 million , $82.4 million and $0.8 million recorded in the DMS segment and $4.0 million , $26.7 million and $(0.1) million of non-allocated charges for the fiscal years ended August 31, 2018 , 2017 and 2016 , respectively. Except for asset write-off costs, all restructuring and related charges are cash settled. (2) Primarily relates to the 2017 Restructuring Plan. (3) Costs relate to the 2013 Restructuring Plan, which was substantially complete in fiscal year 2017. |
Cumulative Restructuring and Related Charges Incurred | The table below sets forth the cumulative restructuring and related charges incurred through August 31, 2018 for the 2017 Restructuring Plan (in thousands): 2017 Restructuring Plan (1) Employee severance and benefit costs $ 64,420 Lease costs 5,562 Asset write-off costs 110,540 Other related costs 5,892 Total restructuring and related charges $ 186,414 (1) Includes $56.8 million allocated to the EMS segment, $99.0 million allocated to the DMS segment and $30.6 million of unallocated costs. |
Summary of Liability Activity Associated with 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, 2016 (1) $ 17,266 $ 21 $ — $ 740 $ 18,027 Restructuring related charges 56,834 3,966 94,346 5,249 160,395 Asset write-off charge and other non-cash activity 1,319 59 (94,346 ) 65 (92,903 ) Cash payments (41,839 ) (2,381 ) — (2,911 ) (47,131 ) Balance as of August 31, 2017 (2) 33,580 1,665 — 3,143 38,388 Restructuring related charges 16,269 1,596 16,264 2,773 36,902 Asset write-off charge and other non-cash activity (127 ) 525 (16,264 ) 25 (15,841 ) Cash payments (31,591 ) (1,102 ) — (5,419 ) (38,112 ) Balance as of August 31, 2018 (2) $ 18,131 $ 2,684 $ — $ 522 $ 21,337 (1) Relates only to the 2013 Restructuring Plan. (2) Primarily relates to the 2017 Restructuring Plan. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Aug. 31, 2017 |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 21.4 | $ 71.5 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Aug. 31, 2017 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 15.2 | $ 14.1 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Property, Plant and Equipment, net) (Details) | 12 Months Ended |
Aug. 31, 2018 | |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 35 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Furniture, fixtures and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Transportation equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance as of beginning of period | $ 54,620 | $ (39,877) | |
Other comprehensive (loss) income before reclassifications | (51,982) | 67,871 | |
Amounts reclassified from AOCI | (22,037) | 26,626 | |
Total other comprehensive (loss) income | (74,019) | 94,497 | $ 10,977 |
Balance as of end of period | (19,399) | 54,620 | (39,877) |
Amount expected to be reclassified during the next 12 months | 9,000 | ||
Foreign Currency Translation Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance as of beginning of period | 57,582 | 16,338 | |
Other comprehensive (loss) income before reclassifications | (50,151) | 35,297 | |
Amounts reclassified from AOCI | 0 | 5,947 | |
Total other comprehensive (loss) income | (50,151) | 41,244 | |
Balance as of end of period | 7,431 | 57,582 | 16,338 |
Derivative Instruments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance as of beginning of period | 29,967 | 7,784 | |
Other comprehensive (loss) income before reclassifications | 1,225 | 13,434 | |
Amounts reclassified from AOCI | (23,076) | 8,749 | |
Total other comprehensive (loss) income | (21,851) | 22,183 | |
Balance as of end of period | 8,116 | 29,967 | 7,784 |
Derivative Instruments | Income Tax Expense | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Amounts reclassified from AOCI | (14,800) | ||
Actuarial (Loss) Gain | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance as of beginning of period | (33,215) | (43,587) | |
Other comprehensive (loss) income before reclassifications | 7,067 | 8,443 | |
Amounts reclassified from AOCI | 1,127 | 1,929 | |
Total other comprehensive (loss) income | 8,194 | 10,372 | |
Balance as of end of period | (25,021) | (33,215) | (43,587) |
Prior Service Cost | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance as of beginning of period | 889 | 941 | |
Other comprehensive (loss) income before reclassifications | (1,444) | 86 | |
Amounts reclassified from AOCI | (88) | (138) | |
Total other comprehensive (loss) income | (1,532) | (52) | |
Balance as of end of period | (643) | 889 | 941 |
Available for Sale Securities | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance as of beginning of period | (603) | (21,353) | |
Other comprehensive (loss) income before reclassifications | (8,679) | 10,611 | |
Amounts reclassified from AOCI | 0 | 10,139 | |
Total other comprehensive (loss) income | (8,679) | 20,750 | |
Balance as of end of period | $ (9,282) | $ (603) | $ (21,353) |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies (Earnings Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
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 | 265 | 2,381 |
Restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common shares excluded from computation of diluted earnings per share | 2,426 | 4,539 | 7,599 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) - iQor Holdings, Inc. - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Class of Stock [Line Items] | ||
Senior non-convertible cumulative preferred stock | $ 47.3 | $ 49.8 |
Senior Non-Convertible Cumulative Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock | $ 50 | |
Accretion of dividends, rate | 8.00% |
Trade Accounts Receivable Sec_3
Trade Accounts Receivable Securitization and Sale Programs (Additional Information) (Details) | 12 Months Ended |
Aug. 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 | 9 |
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 Sec_4
Trade Accounts Receivable Securitization and Sale Programs (Securitization Key Terms) (Details) | Aug. 31, 2018USD ($) |
North American | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 200,000,000 |
Foreign | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |
Maximum Amount of Net Cash Proceeds | $ 400,000,000 |
Trade Accounts Receivable Sec_5
Trade Accounts Receivable Securitization and Sale Programs (Securitization Activity) (Details) - Asset-Backed Securitization Programs - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Eligible trade accounts receivable sold | $ 8,386 | $ 8,878 | $ 7,870 |
Cash proceeds received | 7,838 | 8,300 | 7,336 |
Pre-tax losses on sale of receivables | 15 | 9 | 5 |
Deferred purchase price receivables as of August 31 | 533 | 569 | 527 |
Cash proceeds from new transfers | $ 0 | $ 0.1 | $ 8.4 |
Trade Accounts Receivable Sec_6
Trade Accounts Receivable Securitization and Sale Programs (Sales Programs Key Terms) (Details) | 12 Months Ended | ||
Aug. 31, 2018CNY (¥)uncommitted_trade_accounts_receivable_sale_program | Feb. 01, 2019USD ($) | Aug. 31, 2018USD ($)uncommitted_trade_accounts_receivable_sale_program | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Number of uncommitted trade accounts receivable sale programs | uncommitted_trade_accounts_receivable_sale_program | 9 | 9 | |
A | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | $ 875,000,000 | ||
Notice period to cancel receivable sale agreements | 15 days | ||
A | Scenario, Forecast | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | $ 650,000,000 | ||
B | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | 150,000,000 | ||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 10 days | ||
C | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | ¥ | ¥ 800,000,000 | ||
D | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | 100,000,000 | ||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days | ||
E | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | 50,000,000 | ||
F | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | 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 | 50,000,000 | ||
Notice period to cancel receivable sale agreements | 15 days | ||
H | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | 100,000,000 | ||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days | ||
I | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum Amount | $ 100,000,000 | ||
Threshold period to cancel trade accounts receivable sale agreement before automatic extension | 30 days |
Trade Accounts Receivable Sec_7
Trade Accounts Receivable Securitization and Sale Programs (Sales Programs Activity) (Details) - Trade Accounts Receivable Sale Programs - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Trade accounts receivable sold | $ 5,480 | $ 2,968 | $ 3,651 |
Cash proceeds received | 5,463 | 2,962 | 3,647 |
Loss on sales | $ 17 | $ 6 | $ 4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,070,569 | $ 1,574,241 |
Work in process | 788,742 | 822,628 |
Finished goods | 659,335 | 591,227 |
Reserve for excess and obsolete inventory | (60,940) | (46,013) |
Inventories, net | $ 3,457,706 | $ 2,942,083 |
Income Taxes (Income (Loss) Fro
Income Taxes (Income (Loss) From Continuing Operations Before Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (426,897) | $ (373,690) | $ (317,427) |
Non-U.S. | 800,298 | 629,923 | 704,472 |
Income before income tax | $ 373,401 | $ 256,233 | $ 387,045 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Current | |||
U.S. – Federal | $ 69,080 | $ 2,436 | $ (649) |
U.S. – State | 134 | 12 | (166) |
Non-U.S. | 178,790 | 188,872 | 157,069 |
Total current income taxes | 248,004 | 191,320 | 156,254 |
Deferred | |||
U.S. – Federal | (24,342) | 253 | 73 |
U.S. – State | 93 | 30 | 9 |
Non-U.S. | 62,105 | (62,537) | (24,187) |
Total deferred income taxes | 37,856 | (62,254) | (24,105) |
U.S. – Federal | 44,738 | 2,689 | (576) |
U.S. – State | 227 | 42 | (157) |
Non-U.S. | 240,895 | 126,335 | 132,882 |
Total income tax expense | $ 285,860 | $ 129,066 | $ 132,149 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Tax at U.S. federal statutory income tax rate | $ 95,852 | $ 89,682 | $ 135,470 | |
State income taxes, net of federal tax benefit | (5,417) | (8,474) | (5,121) | |
Impact of foreign tax rates | (71,889) | (109,466) | (144,521) | |
Permanent impact of non-deductible cost | 21,988 | 7,336 | 3,408 | |
Income tax credits | (10,405) | (16,254) | (5,040) | |
Changes in tax rates on deferred tax assets and liabilities | 15,048 | 688 | 182 | |
Transition tax related to the Tax Act | 232,405 | 0 | 0 | |
Change in indefinite reinvestment assertion related to the Tax Act | 21,754 | 0 | 0 | |
Valuation allowance | (61,186) | 37,934 | 11,770 | |
Non-deductible equity compensation | 20,443 | 11,531 | 18,350 | |
Impact of intercompany charges and dividends | 27,442 | 98,052 | 94,596 | |
Reclassification of stranded tax effects in AOCI | (14,811) | 0 | 0 | |
Other, net | 14,636 | 18,037 | 23,055 | |
Total income tax expense | $ 285,860 | $ 129,066 | $ 132,149 | |
U.S. federal statutory income tax rate | 25.67% | 35.00% | 35.00% | |
Tax Cuts and Jobs Act, one-time mandatory repatriation tax | $ 24,900 | $ 65,900 | ||
Tax Cuts and Jobs Act, change in indefinite reinvestment assertion on certain earnings from foreign subsidiaries | $ 85,000 | $ 85,000 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018USD ($) | Aug. 31, 2018USD ($)$ / shares | Aug. 31, 2017USD ($)$ / shares | Aug. 31, 2016USD ($)$ / shares | |
Income Tax Disclosure [Abstract] | ||||
Tax Cuts and Jobs Act, provisional income tax expense | $ 111,400 | $ 142,300 | ||
Tax Cuts and Jobs Act, one-time mandatory repatriation tax | 24,900 | 65,900 | ||
Tax Cuts and Jobs Act, re-measurement of deferred taxes | (10,500) | |||
Tax Cuts and Jobs Act, change in indefinite reinvestment assertion on certain earnings from foreign subsidiaries | 85,000 | $ 85,000 | ||
Net increase in effective tax rate | 0.298 | |||
Income Taxes [Line Items] | ||||
Income tax benefit on income from subsidiaries | $ 52,100 | $ 38,600 | $ 50,500 | |
Per basic share income tax benefit on income from subsidiaries (in dollars per share) | $ / shares | $ 0.30 | $ 0.22 | $ 0.27 | |
Net change in the total valuation allowance | $ (62,100) | $ (59,300) | ||
Undistributed foreign earnings upon which taxes had not been provided | 85,000 | 85,000 | ||
Deferred tax liability on undistributed earnings of foreign subsidiaries | 74,654 | 74,654 | 86,202 | |
Undistributed earnings of foreign subsidiaries | 2,400,000 | 2,400,000 | ||
Possible adjustments for transfer pricing and certain inclusions in taxable income | 106,100 | 106,100 | ||
Accrued interest and penalties related to unrecognized tax benefits included in income tax provision | 20,400 | 20,400 | 27,100 | |
Recognized (derecognized) tax benefit, accrued interest and penalties | (6,700) | $ 5,200 | $ 1,800 | |
Fiscal Years 2009 Through 2011 | ||||
Income Taxes [Line Items] | ||||
Potential additional income tax payment due | 28,600 | 28,600 | ||
Fiscal Years 2012 Through 2014 | ||||
Income Taxes [Line Items] | ||||
Potential additional income tax payment due | 5,300 | 5,300 | ||
U.S. | ||||
Income Taxes [Line Items] | ||||
Tax credit carry forwards | 65,600 | 65,600 | ||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry forwards | 55,400 | 55,400 | ||
Tax credit carry forwards | 4,800 | 4,800 | ||
Non U.S. | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry forwards | 318,000 | 318,000 | ||
Non U.S. | Investment Tax Credit | ||||
Income Taxes [Line Items] | ||||
Tax credit carry forwards | $ 23,300 | $ 23,300 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carry forward | $ 119,259 | $ 268,853 |
Receivables | 7,111 | 7,497 |
Inventories | 7,634 | 11,618 |
Compensated absences | 8,266 | 10,981 |
Accrued expenses | 81,912 | 93,413 |
Property, plant and equipment, principally due to differences in depreciation and amortization | 97,420 | 81,954 |
U.S. federal and state tax credits | 70,153 | 57,122 |
Foreign jurisdiction tax credits | 25,887 | 24,641 |
Other | 18,176 | 14,573 |
Total deferred tax assets before valuation allowances | 445,785 | 589,812 |
Less valuation allowances | (223,487) | (285,559) |
Net deferred tax assets | 222,298 | 304,253 |
Deferred tax liabilities: | ||
Unremitted earnings of non-U.S. subsidiaries | 74,654 | 86,202 |
Intangible assets | 39,122 | 48,229 |
Cash flow hedges | 0 | 8,564 |
Other | 4,655 | 4,863 |
Total deferred tax liabilities | 118,431 | 147,858 |
Net deferred tax assets | 103,867 | 156,395 |
U.S. | ||
Deferred tax assets: | ||
Equity compensation | 7,566 | 16,460 |
Non U.S. | ||
Deferred tax assets: | ||
Equity compensation | $ 2,401 | $ 2,700 |
Income Taxes (Reconciliations o
Income Taxes (Reconciliations of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 201,355 | $ 149,898 | $ 154,648 |
Additions for tax positions of prior years | 14,465 | 2,155 | 7,974 |
Reductions for tax positions of prior years | (21,045) | (12,233) | (20,045) |
Additions for tax positions related to current year | 81,866 | 77,807 | 25,892 |
Cash settlements | (1,659) | (2,298) | (6,553) |
Reductions from lapses in statutes of limitations | (7,496) | (10,446) | (7,099) |
Reductions from settlements with taxing authorities | (5,928) | (6,061) | (1,787) |
Foreign exchange rate adjustment | (4,853) | 2,533 | (3,132) |
Ending balance | 256,705 | 201,355 | 149,898 |
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $ 117,455 | $ 75,223 | $ 72,152 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Components) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 6,844,961 | $ 6,354,068 |
Less accumulated depreciation and amortization | 3,646,945 | 3,125,390 |
Property plant and equipment, net | 3,198,016 | 3,228,678 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 144,136 | 120,574 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 849,975 | 804,861 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,013,428 | 877,752 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 3,983,025 | 3,680,881 |
Furniture, fixtures and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 192,243 | 178,603 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 601,955 | 583,569 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 17,215 | 22,080 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 42,984 | $ 85,748 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Depreciation and Maintenance and Repair Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 735,213 | $ 724,856 | $ 659,542 |
Maintenance and repair expense | $ 266,691 | $ 234,332 | $ 197,373 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Acquisition of property, plant and equipment considered a non-cash investing activity | $ 253.6 | $ 242.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Changes in Goodwill Allocated to Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 608,184 | $ 594,773 |
Acquisitions and adjustments | 22,577 | 8,186 |
Change in foreign currency exchange rates | (3,016) | 5,225 |
Ending balance | 627,745 | 608,184 |
EMS | ||
Goodwill [Roll Forward] | ||
Beginning balance | 52,574 | 51,179 |
Acquisitions and adjustments | 30,763 | 0 |
Change in foreign currency exchange rates | (667) | 1,395 |
Ending balance | 82,670 | 52,574 |
Goodwill reallocated | 8,200 | |
DMS | ||
Goodwill [Roll Forward] | ||
Beginning balance | 555,610 | 543,594 |
Acquisitions and adjustments | (8,186) | 8,186 |
Change in foreign currency exchange rates | (2,349) | 3,830 |
Ending balance | 545,075 | $ 555,610 |
Goodwill reallocated | $ (8,200) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Summary of Goodwill) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Carrying Amount | $ 1,647,567 | $ 1,628,006 |
Goodwill, Accumulated Impairment | $ 1,019,822 | $ 1,019,822 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Purchased Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Average Amortization Period (in years) | 9 years | |
Gross Carrying Amount | $ 586,309 | $ 553,808 |
Accumulated Amortization | (307,178) | (269,212) |
Net Carrying Amount | 279,131 | 284,596 |
Trade names | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 123,090 | 123,090 |
Net Carrying Amount | $ 123,090 | 123,090 |
Contractual agreements and customer relationships | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Average Amortization Period (in years) | 11 years | |
Gross Carrying Amount | $ 289,947 | 265,148 |
Accumulated Amortization | (153,415) | (132,691) |
Net Carrying Amount | $ 136,532 | 132,457 |
Intellectual property | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Weighted Average Amortization Period (in years) | 5 years | |
Gross Carrying Amount | $ 168,181 | 160,456 |
Accumulated Amortization | (148,672) | (131,407) |
Net Carrying Amount | 19,509 | 29,049 |
Trade names | ||
Acquired Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 5,091 | 5,114 |
Accumulated Amortization | (5,091) | (5,114) |
Net Carrying Amount | $ 0 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible asset amortization | $ 38,490 | $ 35,524 | $ 37,121 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets (Amortization Expense) (Details) $ in Thousands | Aug. 31, 2018USD ($) |
Fiscal Year Ended August 31, | |
2,019 | $ 30,212 |
2,020 | 26,645 |
2,021 | 18,261 |
2,022 | 17,119 |
2,023 | 14,704 |
Thereafter | 49,100 |
Total | $ 156,041 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Deferred income | $ 691,365 | $ 1,017,144 |
Accrued compensation and employee benefits | 570,400 | 534,143 |
Other accrued expenses | 1,000,979 | 617,428 |
Accrued expenses | $ 2,262,744 | $ 2,168,715 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt (Summary) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2017 | Aug. 31, 2016 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,518,699 | $ 2,050,272 | ||
Less current installments of notes payable and long-term debt | 25,197 | 444,255 | ||
Notes payable and long-term debt, less current installments | $ 2,493,502 | 1,606,017 | ||
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 | ||
Senior Notes | 5.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 5.625% | |||
Long-term debt | $ 397,995 | 397,104 | ||
Senior Notes | 4.700% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 4.70% | |||
Long-term debt | $ 497,350 | 496,696 | ||
Senior Notes | 4.900% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 4.90% | |||
Long-term debt | $ 298,814 | 298,571 | ||
Senior Notes | 3.950% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, stated interest rate | 3.95% | 3.95% | 3.95% | |
Long-term debt | $ 494,208 | 0 | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 0 | ||
Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 830,332 | $ 458,395 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt (Summary, Footnotes) (Details) | Aug. 24, 2018USD ($) | Nov. 08, 2017USD ($)extension_option | Feb. 28, 2018USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2016 |
Senior Notes | 3.950% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt issuance | $ 500,000,000 | ||||
Senior Notes, stated interest rate | 3.95% | 3.95% | 3.95% | ||
Senior Notes | 8.250% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Notes, stated interest rate | 8.25% | 8.25% | |||
Redemption of debt outstanding | $ 400,000,000 | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit agreement term | 2 years | 5 years | |||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Unused borrowing capacity under revolving credit facilities, net of letters of credit | $ 2,300,000,000 | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
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 | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 2.40% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 5.20% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.00% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.575% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Eurodollar | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.975% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Eurodollar | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.575% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.50% | ||||
Line of Credit | Revolving Credit Facility | the 2017 Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.00% | ||||
Line of Credit | Revolving Credit Facility | the 2018 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Line of Credit | Revolving Credit Facility | the 2018 Revolving Credit Facility | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.975% | ||||
Line of Credit | Revolving Credit Facility | the 2018 Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.50% | ||||
Line of Credit | Revolving Credit Facility | the 2018 Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.00% | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 2.60% | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instruments | 3.50% | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.125% | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.875% | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | Eurodollar | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.125% | ||||
Line of Credit | Term Loan Facility | the 2017 Term Loan Facility | Eurodollar | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.875% | ||||
Line of Credit | Term Loan Facility | the 2018 Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | ||||
Interest rate on debt instruments | 3.10% | ||||
Proceeds from borrowings | $ 350,000,000 | ||||
Line of Credit | Term Loan Facility | the 2018 Term Loan Facility | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 0.125% | ||||
Line of Credit | Term Loan Facility | the 2018 Term Loan Facility | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Interest rate above base rate | 1.125% |
Notes Payable and Long-Term D_5
Notes Payable and Long-Term Debt (Debt Maturities) (Details) $ in Thousands | Aug. 31, 2018USD ($) |
Fiscal Year Ended August 31, | |
2,019 | $ 25,197 |
2,020 | 374,369 |
2,021 | 441,580 |
2,022 | 49,806 |
2,023 | 1,133,353 |
Thereafter | 494,394 |
Total | $ 2,518,699 |
(Additional Information) (Detai
(Additional Information) (Details) - Senior Notes - USD ($) $ in Millions | Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2016 |
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 | $ 415.7 | ||
4.700% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes, stated interest rate | 4.70% | ||
Estimated fair value of senior notes | $ 503.5 | ||
3.950% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes, stated interest rate | 3.95% | 3.95% | 3.95% |
Estimated fair value of senior notes | $ 476 |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Company contributions | $ 40.5 | $ 33.6 | $ 33.3 |
Minimum | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contributions expected to funded pension plans during fiscal year 2018 | 0.2 | ||
Maximum | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Contributions expected to funded pension plans during fiscal year 2018 | $ 0.4 | ||
Global equity securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Target allocation percentage | 35.00% | ||
Debt securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Target allocation percentage | 65.00% | ||
United Kingdom | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Service period | 3 years |
Postretirement and Other Empl_4
Postretirement and Other Employee Benefits (Benefit Obligations and Plan Assets, Changes in Benefit Obligation and Plan Assets and Funded Status of Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Change in projected benefit obligation | |||
Beginning projected benefit obligation | $ 167,714 | $ 182,278 | |
Service cost | 1,063 | 1,068 | $ 883 |
Interest cost | 3,807 | 2,942 | 4,844 |
Actuarial (gain) loss | (6,019) | (10,147) | |
Curtailments gain | (998) | 0 | |
Settlements paid from plan assets | 0 | (2,133) | |
Total benefits paid | (6,211) | (6,790) | |
Plan participants’ contributions | 31 | 27 | |
Amendments | 1,864 | 0 | |
Terminations | 0 | (106) | |
Effect of conversion to U.S. dollars | (147) | 575 | |
Ending projected benefit obligation | 161,104 | 167,714 | 182,278 |
Change in plan assets | |||
Beginning fair value of plan assets | 146,698 | 143,702 | |
Actual return on plan assets | 8,146 | 2,582 | |
Settlements paid from plan assets | 0 | (2,133) | |
Employer contributions | 1,811 | 6,981 | |
Benefits paid from plan assets | (4,758) | (3,759) | |
Plan participants’ contributions | 31 | 27 | |
Effect of conversion to U.S. dollars | (213) | (702) | |
Ending fair value of plan assets | 151,715 | 146,698 | $ 143,702 |
Unfunded status | (9,389) | (21,016) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Accrued benefit liability, current | 428 | 182 | |
Accrued benefit liability, noncurrent | 8,961 | 20,834 | |
Accumulated other comprehensive loss (income) | |||
Actuarial loss, before tax | 22,387 | 32,247 | |
Prior service cost (credit), before tax | 719 | $ (1,185) | |
Net actuarial loss expected to be amortized to net period benefit cost in next fiscal year | 800 | ||
Prior service credit expected to be amortized to net periodic benefit cost in next fiscal year | $ 0 |
Postretirement and Other Empl_5
Postretirement and Other Employee Benefits (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,063 | $ 1,068 | $ 883 |
Interest cost | 3,807 | 2,942 | 4,844 |
Expected long-term return on plan assets | (5,954) | (4,206) | (5,560) |
Recognized actuarial loss | 1,127 | 1,929 | 1,046 |
Amortization of prior service credit | (88) | (138) | (139) |
Net settlement loss | 116 | 1,472 | 0 |
Net periodic benefit cost | $ 71 | $ 3,067 | $ 1,074 |
Postretirement and Other Empl_6
Postretirement and Other Employee Benefits (Weighted-Average Actuarial Assumptions) (Details) | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Net periodic benefit cost: | |||
Expected long-term return on plan assets | 3.80% | 3.30% | 4.30% |
Rate of compensation increase | 3.30% | 2.70% | 2.40% |
Discount rate | 2.10% | 1.90% | 2.90% |
Projected benefit obligation: | |||
Expected long-term return on plan assets | 3.60% | 4.00% | 3.30% |
Rate of compensation increase | 4.40% | 4.40% | 4.10% |
Discount rate | 2.20% | 2.30% | 1.70% |
Postretirement and Other Empl_7
Postretirement and Other Employee Benefits (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 151,715 | $ 146,698 | $ 143,702 |
Asset Allocation (as a percent) | 100.00% | 100.00% | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 6,682 | $ 5,760 | |
Asset Allocation (as a percent) | 4.00% | 4.00% | |
Global equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 35,932 | $ 41,971 | |
Asset Allocation (as a percent) | 24.00% | 29.00% | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 41,088 | $ 41,987 | |
Asset Allocation (as a percent) | 27.00% | 29.00% | |
Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 51,597 | $ 41,738 | |
Asset Allocation (as a percent) | 34.00% | 28.00% | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value | $ 16,416 | $ 15,242 | |
Asset Allocation (as a percent) | 11.00% | 10.00% |
Postretirement and Other Empl_8
Postretirement and Other Employee Benefits (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 161,104 | $ 167,714 |
Accumulated benefit obligation | 152,380 | 158,971 |
Fair value of plan assets | $ 151,715 | $ 146,698 |
Postretirement and Other Empl_9
Postretirement and Other Employee Benefits (Estimated Future Benefit Payments) (Details) $ in Thousands | Aug. 31, 2018USD ($) |
Fiscal Year Ended August 31, | |
2,019 | $ 4,687 |
2,020 | 5,502 |
2,021 | 5,065 |
2,022 | 5,390 |
2,023 | 5,974 |
2024 through 2028 | $ 37,466 |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Aug. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 126,038 |
2,020 | 97,789 |
2,021 | 81,286 |
2,022 | 66,400 |
2,023 | 49,309 |
Thereafter | 142,089 |
Total minimum lease payments | $ 562,911 |
Commitments and Contingencies_3
Commitments and Contingencies (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total operating lease expense | $ 130.2 | $ 117.2 | $ 120.4 |
Stockholders' Equity (Recognize
Stockholders' Equity (Recognized Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 98,511 | $ 48,544 | $ 58,997 |
Restricted stock and stock appreciation rights (“SARS”) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 84,082 | 42,122 | 52,459 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 6,891 | 6,334 | 6,538 |
Other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 7,538 | $ 88 | $ 0 |
Stockholders' Equity (Equity Co
Stockholders' Equity (Equity Compensation Plan, Additional Information) (Details) - shares | Aug. 31, 2018 | Aug. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum aggregate number of shares subject to awards | 12,837,158 | 12,228,936 |
the 2011 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum aggregate number of shares subject to awards | 23,300,000 |
Stockholders' Equity (Shares Av
Stockholders' Equity (Shares Available for Grant) (Details) | 12 Months Ended |
Aug. 31, 2018shares | |
Reconciliation of Shares Available to be Issued [Roll Forward] | |
Balance as of beginning of period | 12,228,936 |
SARS canceled | 35,439 |
Restricted stock awards forfeited, net of grants | 572,783 |
Balance as of end of period | 12,837,158 |
Stockholders' Equity (SARs Acti
Stockholders' Equity (SARs Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
SARS Outstanding | ||
SARS canceled (in shares) | (35,439) | |
SARs | ||
SARS Outstanding | ||
SARS Outstanding as of beginning of period (in shares) | 319,241 | |
SARS canceled (in shares) | (35,439) | |
SARS exercised (in shares) | (127,001) | |
SARS Outstanding as of end of period (in shares) | 156,801 | 319,241 |
SARS, Exercisable (in shares) | 319,241 | |
Aggregate Intrinsic Value, Outstanding | $ 1,748 | $ 3,651 |
Aggregate Intrinsic Value, Exercisable | $ 3,651 | |
Weighted- Average Exercise Price | ||
Weighted-Average Exercise Price, Outstanding as of beginning of period (in dollars per share) | $ 19.91 | |
Weighted-Average Exercise Price, SARS canceled (in dollars per share) | 21.56 | |
Weighted-Average Exercise Price, SARS exercised (in dollars per share) | 21.31 | |
Weighted-Average Exercise Price, Outstanding as of end of period (in dollars per share) | 18.41 | $ 19.91 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 18.41 | |
Weighted- Average Remaining Contractual Life, Outstanding | 3 years 1 month 6 days | 2 years 1 month 6 days |
Weighted- Average Remaining Contractual Life, Exercisable | 2 years 1 month 6 days |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Awards, Additional Information) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 24.9 | |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 0.8 | |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 150.00% | |
Time-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Market-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Award vesting percentage | 200.00% |
Stockholders' Equity (Restric_2
Stockholders' Equity (Restricted Stock Activity) (Details) | 12 Months Ended |
Aug. 31, 2018$ / sharesshares | |
Shares | |
Outstanding as of beginning of period (in shares) | 11,652,319 |
Changes during the period | |
Shares granted (in shares) | 2,751,300 |
Shares vested (in shares) | (2,727,229) |
Shares forfeited (in shares) | (3,324,083) |
Outstanding as of end of period (in shares) | 8,352,307 |
Weighted- Average Grant-Date Fair Value | |
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 22 |
Changes during the period | |
Shares granted (in dollars per share) | $ / shares | 29.40 |
Shares vested (in dollars per share) | $ / shares | 22.95 |
Shares forfeited (in dollars per share) | $ / shares | 19.20 |
Outstanding as of end of period (in dollars per share) | $ / shares | $ 24.34 |
Time-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units awarded | 1,400,000 |
Performance-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units awarded | 400,000 |
Market-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units awarded | 400,000 |
(Restricted Stock and SARS Info
(Restricted Stock and SARS Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of SARS exercised | $ 909 | $ 5,053 | $ 506 |
Fair value of restricted stock vested | 62,592 | 44,010 | 34,857 |
Tax benefit (expense) for stock compensation expense | 1,122 | $ 560 | $ 991 |
Unrecognized stock-based compensation expense — restricted stock | $ 41,940 | ||
Remaining weighted-average period for restricted stock expense | 1 year 4 months 24 days |
Stockholders' Equity (Employee
Stockholders' Equity (Employee Stock Purchase Plan, Additional Information) (Details) - shares | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance under share based compensation plan | 12,837,158 | 12,228,936 |
the ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum aggregate number of shares subject to awards | 12,000,000 | |
Shares available for issuance under share based compensation plan | 4,679,061 | |
Eligibility period for employees to participate in ESPP | 90 days | |
the ESPP | Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum percentage of an employees salary that can be used to purchase shares under the ESPP | 10.00% | |
Percentage for fair market value fixed for pricing | 85.00% |
Stockholders' Equity (Black-Sch
Stockholders' Equity (Black-Scholes Option Pricing Model) (Details) | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield (as a percent) | 0.60% | 0.80% | 0.70% |
Risk-free interest rate | 1.40% | 0.50% | 0.30% |
Expected volatility | 23.00% | 33.00% | 28.10% |
Expected life | 6 months | 6 months | 6 months |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 13,677 | $ 13,991 | $ 14,272 | $ 14,588 | $ 14,698 | $ 14,840 | $ 15,051 | $ 15,248 |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Aug. 31, 2018 | Jun. 30, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
2016 Share Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share repurchase program, amount authorized | $ 400,000,000 | |||
2017 Share Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share repurchase program, amount authorized | $ 450,000,000 | |||
2018 Share Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share repurchase program, amount authorized | $ 350,000,000 | |||
Shares repurchased (in shares) | 0 | |||
Share repurchase program, remaining authorized repurchase amount | $ 350,000,000 |
Concentration of Risk and Seg_3
Concentration of Risk and Segment Data (Additional Information) (Details) | 12 Months Ended |
Aug. 31, 2018CountrySegmentCustomer | |
Revenue, Major Customer [Line Items] | |
Number of operating segments | Segment | 2 |
Number of operating countries | Country | 29 |
Customer Concentration Risk | Net Revenue | Group of Customers that Account for 90% of Net Revenue | |
Revenue, Major Customer [Line Items] | |
Concentration of risk percentage | 90.00% |
Top customers that comprise revenue | Customer | 80 |
Customer Concentration Risk | Net Revenue | Five Largest Customers that Account for a Percentage of Net Revenue | |
Revenue, Major Customer [Line Items] | |
Concentration of risk percentage | 48.00% |
Concentration of Risk and Seg_4
Concentration of Risk and Segment Data (Concentration of Risk) (Details) - Apple, Inc. | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Net Revenue | |||
Revenue, Major Customer [Line Items] | |||
Concentration of risk percentage | 28.00% | 24.00% | 24.00% |
Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration of risk percentage |
Concentration of Risk and Seg_5
Concentration of Risk and Segment Data (Segment Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 22,095,416 | $ 19,063,121 | $ 18,353,086 |
EMS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | 12,268,600 | 11,077,622 | 11,029,132 |
DMS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenue | $ 9,826,816 | $ 7,985,499 | $ 7,323,954 |
Concentration of Risk and Seg_6
Concentration of Risk and Segment Data (Segment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Reconciling items: | |||
Amortization of intangibles | $ (38,490) | $ (35,524) | $ (37,121) |
Stock-based compensation expense and related charges | (98,511) | (48,544) | (58,997) |
Restructuring and related charges | (36,902) | (160,395) | (11,369) |
Loss on disposal of subsidiaries | 0 | (2,112) | 0 |
Other expense | (37,563) | (28,448) | (8,380) |
Interest income | 17,813 | 12,525 | 9,128 |
Interest expense | (149,002) | (138,074) | (136,536) |
Income before income tax | 373,401 | 256,233 | 387,045 |
Cayey, Puerto Rico | |||
Reconciling items: | |||
Insurance proceeds from Hurricane Maria | 24,900 | ||
Operating Segments | |||
Reconciling items: | |||
Income before income tax | 768,147 | 667,003 | 630,320 |
Segment Reconciling Items | |||
Reconciling items: | |||
Stock-based compensation expense and related charges | (98,511) | (48,544) | (58,997) |
Acquisition and integration costs | (8,082) | 0 | 0 |
Distressed customer charges | (32,710) | (10,198) | 0 |
Business interruption and impairment charges, net (1) | (11,299) | 0 | 0 |
EMS | |||
Reconciling items: | |||
Restructuring and related charges | (16,300) | (51,300) | (10,700) |
EMS | Operating Segments | |||
Reconciling items: | |||
Income before income tax | 451,149 | 436,110 | 373,732 |
DMS | |||
Reconciling items: | |||
Restructuring and related charges | (16,600) | (82,400) | (800) |
DMS | Operating Segments | |||
Reconciling items: | |||
Income before income tax | $ 316,998 | $ 230,893 | $ 256,588 |
Concentration of Risk and Seg_7
Concentration of Risk and Segment Data (Segment Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 12,045,641 | $ 11,095,995 |
EMS | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,456,866 | 2,778,820 |
DMS | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 5,378,436 | 5,290,468 |
Other non-allocated assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 3,210,339 | $ 3,026,707 |
Concentration of Risk and Seg_8
Concentration of Risk and Segment Data (External Net Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | $ 22,095,416 | $ 19,063,121 | $ 18,353,086 |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 7,193,414 | 5,585,837 | 4,983,711 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 4,585,355 | 4,012,950 | 3,873,212 |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 3,533,437 | 3,207,059 | 3,043,609 |
Malaysia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 1,389,851 | 1,119,384 | 1,113,456 |
Hungary | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 897,033 | 944,448 | 1,130,466 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 2,651,632 | 2,547,750 | 2,499,241 |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | 20,250,722 | 17,417,428 | 16,643,695 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External net revenue | $ 1,844,694 | $ 1,645,693 | $ 1,709,391 |
Concentration of Risk and Seg_9
Concentration of Risk and Segment Data (Long-lived Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 4,104,892 | $ 4,121,458 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,770,732 | 1,922,676 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 191,506 | 204,181 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 256,086 | 196,218 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 130,062 | 136,685 |
Malaysia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 113,011 | 74,341 |
Hungary | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 91,063 | 89,814 |
Spain | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 79,991 | 83,064 |
Poland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 60,847 | 55,617 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 334,466 | 343,473 |
Foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,027,764 | 3,106,069 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,077,128 | $ 1,015,389 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Foreign Currency Risk Management) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cost of revenue | ||
Derivative [Line Items] | ||
Foreign currency losses | $ 29.6 | |
Forward foreign exchange contracts | Cost of revenue | ||
Derivative [Line Items] | ||
Gain recognized due to changes in fair value of derivatives | 48.7 | |
Forward contracts | Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | 3,400 | $ 2,100 |
Forward contracts | Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 293.4 | $ 314.6 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Fair Value of Derivative Instruments) (Details) - Forward foreign exchange contracts - USD ($) $ in Thousands | Aug. 31, 2018 | Aug. 31, 2017 |
Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 225 | $ 8,380 |
Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 13,364 | 1,408 |
Not Designated as Hedging Instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 10,125 | 31,280 |
Not Designated as Hedging Instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 46,171 | $ 9,131 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Cash Flow Hedges) (Details) - USD ($) | 3 Months Ended | ||
Feb. 28, 2018 | Aug. 31, 2018 | Aug. 31, 2016 | |
Senior Notes | 3.950% Senior Notes | |||
Derivative [Line Items] | |||
Stated interest rate | 3.95% | 3.95% | 3.95% |
Cash Flow Hedges | Anticipated Debt Issuance | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 200,000,000 | ||
Fair value of cash received for settlement of swaps | $ 17,200,000 | ||
Cash Flow Hedges | Term Loan Facility | |||
Derivative [Line Items] | |||
Aggregate notional amount | 200,000,000 | ||
Interest Rate Swaps | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 350,000,000 |
Restructuring and Related Cha_3
Restructuring and Related Charges (Summary) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 36,902 | $ 160,395 | $ 11,369 |
EMS | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 16,300 | 51,300 | 10,700 |
DMS | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 16,600 | 82,400 | 800 |
Non-allocated charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 4,000 | 26,700 | (100) |
Employee severance and benefit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 16,269 | 56,834 | 8,845 |
Lease costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 1,596 | 3,966 | (43) |
Asset write-off costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | 16,264 | 94,346 | 1,170 |
Other related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 2,773 | $ 5,249 | $ 1,397 |
Restructuring and Related Cha_4
Restructuring and Related Charges (Additional Information) (Details) $ in Thousands | Aug. 31, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | $ 195,000 |
2017 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring related charges to date | $ 186,414 |
Restructuring and Related Cha_5
Restructuring and Related Charges (Cumulative Charges) (Details) - 2017 Restructuring Plan $ in Thousands | Aug. 31, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | $ 186,414 |
EMS | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 56,800 |
DMS | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 99,000 |
Unallocated costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 30,600 |
Employee severance and benefit costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 64,420 |
Lease costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 5,562 |
Asset write-off costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | 110,540 |
Other related costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring and related charges | $ 5,892 |
Restructuring and Related Cha_6
Restructuring and Related Charges (Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | $ 38,388 | $ 18,027 | |
Restructuring and related charges | 36,902 | 160,395 | $ 11,369 |
Asset write-off charge and other non-cash activity | (15,841) | (92,903) | |
Cash payments | (38,112) | (47,131) | |
Balance as of end of period | 21,337 | 38,388 | 18,027 |
Employee severance and benefit costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 33,580 | 17,266 | |
Restructuring and related charges | 16,269 | 56,834 | 8,845 |
Asset write-off charge and other non-cash activity | (127) | 1,319 | |
Cash payments | (31,591) | (41,839) | |
Balance as of end of period | 18,131 | 33,580 | 17,266 |
Lease costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 1,665 | 21 | |
Restructuring and related charges | 1,596 | 3,966 | (43) |
Asset write-off charge and other non-cash activity | 525 | 59 | |
Cash payments | (1,102) | (2,381) | |
Balance as of end of period | 2,684 | 1,665 | 21 |
Asset write-off costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 0 | 0 | |
Restructuring and related charges | 16,264 | 94,346 | 1,170 |
Asset write-off charge and other non-cash activity | (16,264) | (94,346) | |
Cash payments | 0 | 0 | |
Balance as of end of period | 0 | 0 | 0 |
Other Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of beginning of period | 3,143 | 740 | |
Restructuring and related charges | 2,773 | 5,249 | |
Asset write-off charge and other non-cash activity | 25 | 65 | |
Cash payments | (5,419) | (2,911) | |
Balance as of end of period | $ 522 | $ 3,143 | $ 740 |
Business Acquisitions (Fiscal Y
Business Acquisitions (Fiscal Year 2018) (Details) - USD ($) $ in Thousands | Sep. 01, 2017 | Aug. 31, 2018 | Aug. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 22,577 | $ 8,186 | |
True-Tech | |||
Business Acquisition [Line Items] | |||
Amount of cash paid for business acquisitions | $ 95,900 | ||
Assets acquired | 114,700 | ||
Intangible assets acquired | 25,900 | ||
Goodwill | 22,600 | ||
Liabilities assumed | $ 18,800 |
Business Acquisitions (Fiscal_2
Business Acquisitions (Fiscal Year 2017) (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Aug. 31, 2018 | Aug. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 22,577 | $ 8,186 | |
DMS | |||
Business Acquisition [Line Items] | |||
Goodwill | $ (8,186) | $ 8,186 | |
Lewis Engineering | |||
Business Acquisition [Line Items] | |||
Amount of cash paid for business acquisitions | $ 31,400 | ||
Assets acquired | 32,300 | ||
Goodwill | 8,200 | ||
Intangible assets acquired | 14,600 | ||
Liabilities assumed | 900 | ||
Transaction costs | 800 | ||
Lewis Engineering | DMS | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 8,200 |
Business Acquisitions (Fiscal_3
Business Acquisitions (Fiscal Year 2016) (Details) - USD ($) $ in Millions | Jan. 13, 2016 | Nov. 30, 2015 |
Hanson | ||
Business Acquisition [Line Items] | ||
Amount of cash paid for business acquisitions | $ 139.2 | |
Liabilities assumed | 230 | |
Real property | $ 33.3 | |
Shemer Companies | ||
Business Acquisition [Line Items] | ||
Amount of cash paid for business acquisitions | $ 72.3 |
New Accounting Guidance (Detail
New Accounting Guidance (Details) - Scenario, Forecast - Retained Earnings - Accounting Standards Update 2014-09 $ in Millions | Sep. 01, 2018USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment in opening balance of retained earnings | $ 30 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment in opening balance of retained earnings | $ 60 |
Schedule of Valuation and Qua_2
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2016 | |
Allowance for uncollectible accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 14,134 | $ 11,094 | $ 11,663 |
Additions and Adjustments Charged to Costs and Expenses | 12,545 | 6,255 | 292 |
Additions/ (Reductions) Charged to Other Accounts | 0 | 0 | 0 |
Write-offs/Reductions Charged to Costs and Expenses | (11,498) | (3,215) | (861) |
Balance at End of Period | 15,181 | 14,134 | 11,094 |
Reserve for excess and obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 46,013 | 32,221 | 43,477 |
Additions and Adjustments Charged to Costs and Expenses | 35,538 | 46,030 | 12,145 |
Additions/ (Reductions) Charged to Other Accounts | 0 | 0 | 0 |
Write-offs/Reductions Charged to Costs and Expenses | (20,611) | (32,238) | (23,401) |
Balance at End of Period | 60,940 | 46,013 | 32,221 |
Valuation allowance for deferred taxes | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 285,559 | 344,828 | 304,820 |
Additions and Adjustments Charged to Costs and Expenses | 18,418 | 65,300 | 23,891 |
Additions/ (Reductions) Charged to Other Accounts | (886) | (97,203) | 28,238 |
Write-offs/Reductions Charged to Costs and Expenses | (79,604) | (27,366) | (12,121) |
Balance at End of Period | $ 223,487 | $ 285,559 | $ 344,828 |