Cover Page
Cover Page - shares | 3 Months Ended | |
Nov. 30, 2021 | Dec. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-14063 | |
Entity Registrant Name | JABIL INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-1886260 | |
Entity Address, Address Line One | 10800 Roosevelt Boulevard North | |
Entity Address, City or Town | St. Petersburg | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33716 | |
City Area Code | 727 | |
Local Phone Number | 577-9749 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | JBL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 143,484,377 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000898293 | |
Current Fiscal Year End Date | --08-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,229 | $ 1,567 |
Accounts receivable, net of allowance for doubtful accounts | 3,917 | 3,141 |
Contract assets | 1,133 | 998 |
Inventories, net | 4,681 | 4,414 |
Prepaid expenses and other current assets | 852 | 757 |
Total current assets | 11,812 | 10,877 |
Property, plant and equipment, net of accumulated depreciation of $5,189 as of November 30, 2021 and $5,033 as of August 31, 2021 | 3,976 | 4,075 |
Operating lease right-of-use asset | 470 | 390 |
Goodwill | 713 | 715 |
Intangible assets, net of accumulated amortization of $449 as of November 30, 2021 and $442 as of August 31, 2021 | 173 | 182 |
Deferred income taxes | 176 | 176 |
Other assets | 268 | 239 |
Total assets | 17,588 | 16,654 |
Current liabilities: | ||
Current installments of notes payable and long-term debt | 500 | 0 |
Accounts payable | 7,483 | 6,841 |
Accrued expenses | 3,871 | 3,734 |
Current operating lease liabilities | 111 | 108 |
Total current liabilities | 11,965 | 10,683 |
Notes payable and long-term debt, less current installments | 2,379 | 2,878 |
Other liabilities | 332 | 334 |
Non-current operating lease liabilities | 403 | 333 |
Income tax liabilities | 189 | 178 |
Deferred income taxes | 113 | 111 |
Total liabilities | 15,381 | 14,517 |
Commitments and contingencies | ||
Jabil Inc. stockholders’ equity: | ||
Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and no shares outstanding | 0 | 0 |
Common stock, $0.001 par value, authorized 500,000,000 shares; 269,843,564 and 267,418,092 shares issued and 144,166,009 and 144,496,077 shares outstanding as of November 30, 2021 and August 31, 2021, respectively | 0 | 0 |
Additional paid-in capital | 2,567 | 2,533 |
Retained earnings | 2,917 | 2,688 |
Accumulated other comprehensive loss | (48) | (25) |
Treasury stock at cost, 125,677,555 and 122,922,015 shares as of November 30, 2021 and August 31, 2021, respectively | (3,230) | (3,060) |
Total Jabil Inc. stockholders’ equity | 2,206 | 2,136 |
Noncontrolling interests | 1 | 1 |
Total equity | 2,207 | 2,137 |
Total liabilities and equity | $ 17,588 | $ 16,654 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 5,189 | $ 5,033 |
Intangible assets, accumulated amortization | $ 449 | $ 442 |
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 | 269,843,564 | 267,418,092 |
Common stock, shares outstanding | 144,166,009 | 144,496,077 |
Treasury stock at cost, shares | 125,677,555 | 122,922,015 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 8,567 | $ 7,833 |
Cost of revenue | 7,892 | 7,198 |
Gross profit | 675 | 635 |
Operating expenses: | ||
Selling, general and administrative | 308 | 303 |
Research and development | 9 | 8 |
Amortization of intangibles | 8 | 11 |
Restructuring, severance and related charges | 0 | (1) |
Operating income | 350 | 314 |
Other expense (income) | 1 | (1) |
Interest income | (1) | (2) |
Interest expense | 33 | 32 |
Income before income tax | 317 | 285 |
Income tax expense | 76 | 84 |
Net income | 241 | 201 |
Net income attributable to noncontrolling interests, net of tax | 0 | 1 |
Net income attributable to Jabil Inc. | $ 241 | $ 200 |
Earnings per share attributable to the stockholders of Jabil Inc.: | ||
Basic (in dollars per share) | $ 1.68 | $ 1.33 |
Diluted (in dollars per share) | $ 1.63 | $ 1.31 |
Weighted average shares outstanding: | ||
Basic (in shares) | 144.1 | 150.2 |
Diluted (in shares) | 147.7 | 152.9 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 241 | $ 201 |
Other comprehensive (loss) income: | ||
Change in foreign currency translation | (27) | 11 |
Change in derivative instruments: | ||
Change in fair value of derivatives | 6 | 25 |
Adjustment for net losses (gains) realized and included in net income | 2 | (16) |
Total change in derivative instruments | 8 | 9 |
Actuarial loss | (5) | 0 |
Prior service credit | 1 | 0 |
Total other comprehensive (loss) income | (23) | 20 |
Comprehensive income | 218 | 221 |
Comprehensive income attributable to noncontrolling interests | 0 | 1 |
Comprehensive income attributable to Jabil Inc. | $ 218 | $ 220 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Noncontrolling interests |
Beginning Balance at Aug. 31, 2020 | $ 1,825 | $ 2,414 | $ 2,041 | $ (34) | $ (2,610) | $ 14 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Recognition of stock-based compensation | 31 | ||||||
Declared dividends | (12) | ||||||
Net income | 201 | 200 | 1 | ||||
Other comprehensive income | 20 | 20 | |||||
Purchases of treasury stock under employee stock plans | (21) | ||||||
Treasury shares purchased | (50) | ||||||
Ending Balance at Nov. 30, 2020 | 1,994 | $ 0 | 2,445 | 2,229 | (14) | (2,681) | 15 |
Beginning Balance at Aug. 31, 2021 | 2,137 | 2,533 | 2,688 | (25) | (3,060) | 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Recognition of stock-based compensation | 34 | ||||||
Declared dividends | (12) | ||||||
Net income | 241 | 241 | 0 | ||||
Other comprehensive income | (23) | (23) | |||||
Purchases of treasury stock under employee stock plans | (43) | ||||||
Treasury shares purchased | (127) | ||||||
Ending Balance at Nov. 30, 2021 | $ 2,207 | $ 0 | $ 2,567 | $ 2,917 | $ (48) | $ (3,230) | $ 1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Cash flows (used in) provided by operating activities: | ||
Net income | $ 241 | $ 201 |
Depreciation, amortization, and other, net | 269 | 249 |
Change in operating assets and liabilities, exclusive of net assets acquired | (556) | (385) |
Net cash (used in) provided by operating activities | (46) | 65 |
Cash flows used in investing activities: | ||
Acquisition of property, plant and equipment | (281) | (353) |
Proceeds and advances from sale of property, plant and equipment | 208 | 111 |
Cash paid for business and intangible asset acquisitions, net of cash | 0 | (18) |
Other, net | 0 | (4) |
Net cash used in investing activities | (73) | (264) |
Cash flows used in financing activities: | ||
Borrowings under debt agreements | 550 | 200 |
Payments toward debt agreements | (574) | (202) |
Payments to acquire treasury stock | (127) | (50) |
Dividends paid to stockholders | (14) | (14) |
Treasury stock minimum tax withholding related to vesting of restricted stock | (43) | (21) |
Net cash used in financing activities | (208) | (87) |
Effect of exchange rate changes on cash and cash equivalents | (11) | 0 |
Net decrease in cash and cash equivalents | (338) | (286) |
Cash and cash equivalents at beginning of period | 1,567 | 1,394 |
Cash and cash equivalents at end of period | $ 1,229 | $ 1,108 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. Jabil Inc. (the “Company”) has made certain reclassification adjustments to conform prior periods’ Condensed Consolidated Financial Statements to the current presentation. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in the Annual Report on Form 10-K of Jabil Inc. (the “Company”) for the fiscal year ended August 31, 2021. Results for the three months ended November 30, 2021 are not necessarily an indication of the results that may be expected for the full fiscal year ending August 31, 2022. |
Trade Accounts Receivable Sale
Trade Accounts Receivable Sale Programs | 3 Months Ended |
Nov. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Trade Accounts Receivable Sale Programs | Trade Accounts Receivable Sale Programs The Company regularly sells designated pools of high credit quality trade accounts receivable, at a discount, under uncommitted trade accounts receivable sale programs to unaffiliated financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the respective financial institutions. As of November 30, 2021, the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase specific accounts receivable at any one time up to a: (i) maximum aggregate amount available of $2.0 billion under nine trade accounts receivable sale programs, (ii) maximum amount available of 400 million CNY under one trade accounts receivable sale program and (iii) maximum amount available of 100 million CHF under one trade accounts receivable sale program. The trade accounts receivable sale programs expire on various dates through 2025. The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the trade accounts receivable sale programs. Servicing fees related to the trade accounts receivable sale programs recognized during the three months ended November 30, 2021 and 2020 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended November 30, 2021 November 30, 2020 Trade accounts receivable sold (1) $ 1,968 $ 1,256 Cash proceeds received $ 1,967 $ 1,255 Pre-tax losses on sale of receivables (2) $ 1 $ 1 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) Recorded to other expense within the Condensed Consolidated Statement of Operations. asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. The Company terminated the foreign asset-backed securitization program on June 28, 2021. The Company continues servicing the receivables sold and in exchange receives a servicing fee under the global asset-backed securitization program. Servicing fees related to the asset-backed securitization programs recognized during the three months ended November 30, 2021 and 2020 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. The special purpose entity in the global asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Condensed Consolidated Financial Statements. Certain unsold receivables covering up to the maximum amount of net cash proceeds available under the domestic, or U.S., portion of the global asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of November 30, 2021. The global asset-backed securitization program expires on November 25, 2024 and the maximum amount of net cash proceeds available at any one time is $600 million. As of November 30, 2021, the Company had no available liquidity under its global asset-backed securitization program. In connection with the asset-backed securitization program, the Company recognized the following (in millions): Three months ended November 30, 2021 November 30, 2020 (4) Trade accounts receivable sold (1) $ 1,032 $ 1,173 Cash proceeds received (2) $ 1,030 $ 1,171 Pre-tax losses on sale of receivables (3) $ 2 $ 2 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (3) Recorded to other expense within the Condensed Consolidated Statements of Operations. (4) Activity includes the foreign asset-backed securitization program which terminated on June 28, 2021. |
Inventories
Inventories | 3 Months Ended |
Nov. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in millions): November 30, 2021 August 31, 2021 Raw materials $ 3,709 $ 3,142 Work in process 552 677 Finished goods 508 680 Reserve for excess and obsolete inventory (88) (85) Inventories, net $ 4,681 $ 4,414 |
Leases
Leases | 3 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases During fiscal year 2022, the Company entered into new operating and finance leases. The future minimum lease payments under these new leases as of November 30, 2021 were as follows (in millions): Payments due by period (in millions) Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 118 $ 18 $ 34 $ 28 $ 38 Finance lease obligations (1) $ 48 $ 24 $ 24 $ — $ — (1) Excludes $28 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. |
Leases | Leases During fiscal year 2022, the Company entered into new operating and finance leases. The future minimum lease payments under these new leases as of November 30, 2021 were as follows (in millions): Payments due by period (in millions) Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 118 $ 18 $ 34 $ 28 $ 38 Finance lease obligations (1) $ 48 $ 24 $ 24 $ — $ — (1) Excludes $28 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of November 30, 2021 and August 31, 2021 are summarized below (in millions): Maturity Date November 30, 2021 August 31, 2021 4.700% Senior Notes Sep 15, 2022 $ 500 $ 499 4.900% Senior Notes Jul 14, 2023 300 300 3.950% Senior Notes Jan 12, 2028 496 496 3.600% Senior Notes Jan 15, 2030 495 495 3.000% Senior Notes Jan 15, 2031 591 591 1.700% Senior Notes Apr 15, 2026 496 496 Borrowings under credit facilities (1) Jan 22, 2024 and Jan 22, 2026 — — Borrowings under loans Jul 31, 2026 1 1 Total notes payable and long-term debt 2,879 2,878 Less current installments of notes payable and long-term debt 500 — Notes payable and long-term debt, less current installments $ 2,379 $ 2,878 (1) As of November 30, 2021, the Company has $3.8 billion in available unused borrowing capacity under its revolving credit facilities. The senior unsecured credit agreement dated as of January 22, 2020 and amended on April 28, 2021 (the “Credit Facility”) acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $1.8 billion under its commercial paper program. Debt Covenants Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the revolving credit 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 4.700%, 4.900%, 3.950%, 3.600%, 3.000% or 1.700% Senior Notes upon a change of control. As of November 30, 2021 and August 31, 2021, the Company was in compliance with its debt covenants. Fair Value |
Asset-Backed Securitization Pro
Asset-Backed Securitization Program | 3 Months Ended |
Nov. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Asset-Backed Securitization Program | Trade Accounts Receivable Sale Programs The Company regularly sells designated pools of high credit quality trade accounts receivable, at a discount, under uncommitted trade accounts receivable sale programs to unaffiliated financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the respective financial institutions. As of November 30, 2021, the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase specific accounts receivable at any one time up to a: (i) maximum aggregate amount available of $2.0 billion under nine trade accounts receivable sale programs, (ii) maximum amount available of 400 million CNY under one trade accounts receivable sale program and (iii) maximum amount available of 100 million CHF under one trade accounts receivable sale program. The trade accounts receivable sale programs expire on various dates through 2025. The Company continues servicing the receivables sold and in exchange receives a servicing fee under each of the trade accounts receivable sale programs. Servicing fees related to the trade accounts receivable sale programs recognized during the three months ended November 30, 2021 and 2020 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended November 30, 2021 November 30, 2020 Trade accounts receivable sold (1) $ 1,968 $ 1,256 Cash proceeds received $ 1,967 $ 1,255 Pre-tax losses on sale of receivables (2) $ 1 $ 1 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) Recorded to other expense within the Condensed Consolidated Statement of Operations. asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. The Company terminated the foreign asset-backed securitization program on June 28, 2021. The Company continues servicing the receivables sold and in exchange receives a servicing fee under the global asset-backed securitization program. Servicing fees related to the asset-backed securitization programs recognized during the three months ended November 30, 2021 and 2020 were not material. The Company does not record a servicing asset or liability on the Condensed Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. The special purpose entity in the global asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Condensed Consolidated Financial Statements. Certain unsold receivables covering up to the maximum amount of net cash proceeds available under the domestic, or U.S., portion of the global asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of November 30, 2021. The global asset-backed securitization program expires on November 25, 2024 and the maximum amount of net cash proceeds available at any one time is $600 million. As of November 30, 2021, the Company had no available liquidity under its global asset-backed securitization program. In connection with the asset-backed securitization program, the Company recognized the following (in millions): Three months ended November 30, 2021 November 30, 2020 (4) Trade accounts receivable sold (1) $ 1,032 $ 1,173 Cash proceeds received (2) $ 1,030 $ 1,171 Pre-tax losses on sale of receivables (3) $ 2 $ 2 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (3) Recorded to other expense within the Condensed Consolidated Statements of Operations. (4) Activity includes the foreign asset-backed securitization program which terminated on June 28, 2021. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Nov. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in millions): November 30, 2021 August 31, 2021 Contract liabilities (1) $ 667 $ 559 Accrued compensation and employee benefits 778 827 Inventory deposits 850 711 Other accrued expenses 1,576 1,637 Accrued expenses $ 3,871 $ 3,734 (1) Revenue recognized during the three months ended November 30, 2021 and 2020 that was included in the contract liability balance as of August 31, 2021 and 2020 was $98 million and $170 million , respectively. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 3 Months Ended |
Nov. 30, 2021 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Employee Benefits | Postretirement and Other Employee Benefits Net Periodic Benefit Cost The following table provides information about the net periodic benefit cost for all plans for the three months ended November 30, 2021 and 2020 (in millions): Three months ended November 30, 2021 November 30, 2020 Service cost (1) $ 6 $ 6 Interest cost (2) 1 1 Expected long-term return on plan assets (2) (4) (4) Recognized actuarial gain (2) (3) (1) Amortization of actuarial gain (2)(3) (2) (2) Amortization of prior service cost (2) 1 — Net periodic benefit cost $ (1) $ — (1) Service cost is recognized in cost of revenue in the Condensed Consolidated Statement of Operations. (2) Components are recognized in other expense in the Condensed Consolidated Statement of Operations. (3) Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, where deemed appropriate, uses derivatives as risk management tools to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency risk and interest rate risk. Foreign Currency Risk Management Forward contracts are put in place to manage the foreign currency risk associated with the anticipated foreign currency denominated revenues and expenses. A hedging relationship existed with an aggregate notional amount outstanding of $1.3 billion and $1.5 billion as of November 30, 2021 and August 31, 2021, 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 December 1, 2021 and November 30, 2022. 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 November 30, 2021 and August 31, 2021, was $3.5 billion and $3.6 billion, respectively. Refer to Note 15 – “Fair Value Measurements” for the fair values and classification of the Company’s derivative instruments. The gains and losses recognized in earnings due to the amount excluded from effectiveness testing were not material for all periods presented and are included as components of net revenue, cost of revenue and selling, general and administrative expense, which are the same line items in which the hedged items are recorded. The following table presents the gains from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in millions): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Gain on Derivatives Recognized in Net Income Amount of Gain Recognized in Net Income on Derivatives Three months ended November 30, 2021 November 30, 2020 Forward foreign exchange contracts (1) Cost of revenue $ 38 $ 84 (1) For the three months ended November 30, 2021 and 2020, the Company recognized $27 million and $73 million, respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. 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 The following table presents the interest rate swaps outstanding as of November 30, 2021, which have been designated as hedging instruments and accounted for as cash flow hedges: Interest Rate Swap Summary Hedged Interest Rate Payments Aggregate Notional Amount (in millions) Effective Date Expiration Date (1) Forward Interest Rate Swap Anticipated Debt Issuance Fixed $ 250 November 2, 2020 July 31, 2024 (2) Anticipated Debt Issuance Fixed $ 150 May 24, 2021 July 31, 2024 (2) (1) The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap. (2) If the anticipated debt issuance occurs before July 31, 2024, the contracts will be terminated simultaneously with the debt issuance. Contemporaneously with the issuance of our 3.000% Notes in July 2020, the Company amended interest rate swap agreements with a notional value of $200.0 million, with mandatory termination dates from August 15, 2020 to February 15, 2022 (the “2020 Extended Interest Rate Swaps”). In addition, the Company entered into interest rate swaps to offset future exposures of fluctuations in the fair value of the 2020 Extended Interest Rate Swaps (the “Offsetting Interest Rate Swaps”). The change in fair value of the 2020 Extended Interest Rate Swaps and Offsetting Interest Rate Swaps is recorded in the Consolidated Statements of Income through the maturity date as an adjustment to interest expense. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Nov. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component for the three months ended November 30, 2021 (in millions): Foreign Derivative Actuarial Prior Total Balance as of August 31, 2021 $ (20) $ (36) $ 51 $ (20) $ (25) Other comprehensive (loss) income before reclassifications (27) 6 — — (21) Amounts reclassified from AOCI — 2 (5) 1 (2) Other comprehensive (loss) income (1) (27) 8 (5) 1 (23) Balance as of November 30, 2021 $ (47) $ (28) $ 46 $ (19) $ (48) (1) Amounts are net of tax, which are immaterial. The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in millions): Three months ended Comprehensive Income Components Financial Statement Line Item November 30, 2021 November 30, 2020 Realized losses (gains) on derivative instruments: (1) Foreign exchange contracts Cost of revenue 1 (17) Interest rate contracts Interest expense 1 1 Actuarial gain (2) (5) — Prior service cost (2) 1 — Total amounts reclassified from AOCI (3) $ (2) $ (16) (1) The Company expects to reclassify $7 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (2) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 8 – “Postretirement and Other Employee Benefits” for additional information. (3) Amounts are net of tax, which are immaterial for the three months ended November 30, 2021 and 2020. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Nov. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions): Three months ended November 30, 2021 November 30, 2020 Restricted stock units $ 32 $ 32 Employee stock purchase plan 3 2 Total $ 35 $ 34 As of November 30, 2021, the shares available to be issued under the 2021 Equity Incentive Plan w ere 9,852,269. Restricted Stock Units Certain key employees have been granted time-based, performance-based and market-based restricted stock unit awards (“restricted stock units”). The time-based restricted stock units generally vest on a graded vesting schedule over three years. T he 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 ha ve a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the three months ended November 30, 2021 and 2020, the Company awarded approximately 0.7 million and 1.1 million time-based restricted stock units, respectively, 0.2 million and 0.3 million performance-based restricted stock units, respectively, and 0.2 million and 0.3 million market-based restricted stock units, respectively. The following represents the stock-based compensation information as of the period indicated (in millions): November 30, 2021 Unrecognized stock-based compensation expense—restricted stock units $ 67 Remaining weighted-average period for restricted stock units expense 1.5 years Common Stock Outstanding The following represents the common stock outstanding for the periods indicated: Three months ended November 30, 2021 November 30, 2020 Common stock outstanding: Beginning balances 144,496,077 150,330,358 Vesting of restricted stock 2,425,472 2,217,082 Purchases of treasury stock under employee stock plans (690,555) (601,406) Treasury shares purchased (1) (2,064,985) (1,474,464) Ending balances 144,166,009 150,471,570 |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 3 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Concentration of Risk and Segment Data | Concentration of Risk and Segment Data Concentration of Risk Sales of the Company’s products are concentrated among specific customers. During the three months ended November 30, 2021, the Company’s five largest customers accounted for approximately 49% of its net revenue and 74 customers accounted for approximately 90% of its net revenue. Sales to these customers were reported in the Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”) operating segments. The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. Certain items are excluded from the calculation of segment income. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. The following table sets forth operating segment information (in millions): Three months ended November 30, 2021 November 30, 2020 Segment income and reconciliation of income before income tax EMS $ 147 $ 122 DMS 253 243 Total segment income $ 400 $ 365 Reconciling items: Amortization of intangibles (8) (11) Stock-based compensation expense and related charges (35) (34) Restructuring, severance and related charges — 1 Acquisition and integration charges — (2) Other expense (net of periodic benefit cost) (8) (4) Interest income 1 2 Interest expense (33) (32) Income before income tax $ 317 $ 285 The following table presents the Company’s revenues disaggregated by segment (in millions): Three months ended November 30, 2021 November 30, 2020 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 1,407 $ 2,370 $ 3,777 $ 1,057 $ 2,240 $ 3,297 Over time 2,451 2,339 4,790 2,536 2,000 4,536 Total $ 3,858 $ 4,709 $ 8,567 $ 3,593 $ 4,240 $ 7,833 The Company operates in more than 30 countries worldwide. Sales to unaffiliated customers are based on the Company location that maintains the customer relationship and transacts the external sale. The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended November 30, 2021 November 30, 2020 Foreign source revenue 84.8 % 83.6 % |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Income Tax Rate The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended November 30, 2021 November 30, 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % Effective income tax rate 23.9 % 29.6 % The effective income tax rate decreased for the three months ended November 30, 2021, compared to the three months ended November 30, 2020, primarily due to decreased losses in tax jurisdictions with existing valuation allowances for the three months ended November 30, 2021. |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 3 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Dividends | Earnings Per Share and Dividends Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the period. The Company’s diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities. The difference between the weighted average number of basic shares outstanding and the weighted average number of diluted shares outstanding is primarily due to dilutive unvested restricted stock units. 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 units are considered dilutive when the related performance criteria have been met assuming the end of the reporting period represents the end of the performance period. All potential shares of common stock are antidilutive in periods of net loss. Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended November 30, 2021 November 30, 2020 Restricted stock units 575.8 1,074.2 Dividends The following table sets forth cash dividends declared by the Company to common stockholders during the three months ended November 30, 2021 and 2020 (in millions, except for per share data): Dividend Dividend Total of Cash Date of Record for Dividend Cash Fiscal Year 2022: October 21, 2021 $ 0.08 $ 12 November 15, 2021 December 1, 2021 Fiscal Year 2021: October 15, 2020 $ 0.08 $ 12 November 16, 2020 December 2, 2020 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Measurements on a Recurring Basis The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: (in millions) Fair Value Hierarchy November 30, 2021 August 31, 2021 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 29 $ 36 Prepaid expenses and other current assets: Short-term investments Level 1 18 18 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) 17 9 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 50 20 Other assets: Forward interest rate swap: Derivatives designated as hedging instruments (Note 9) Level 2 (3) 9 9 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) $ 5 $ 6 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 10 9 Interest rate swaps: Derivatives not designated as hedging instruments (Note 9) Level 2 (3) 3 3 Extended interest rate swap not designated as a hedging instrument (Note 9) Level 2 (4) 9 10 Other liabilities: Forward interest rate swap: Derivatives designated as hedging instruments (Note 9) Level 2 (3) 6 7 (1) Consist of investments that are readily convertible to cash with original maturities of 90 days or less. (2) 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. (3) Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. (4) The 2020 Extended Interest Rate Swaps are considered a hybrid instrument and the Company elected the fair value option for reporting. Fair value measurements are based on the contractual terms of the contract and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis of the expected cash flows using observable inputs including interest rate curves and credit spreads. Assets Held for Sale The following table presents the assets held for sale: November 30, 2021 August 31, 2021 (in millions) Carrying Amount Carrying Amount Assets held for sale (1) $ 61 $ 61 (1) The fair value of assets held for sale exceeds the carrying value for $30 million of assets held for sale. For $31 million of assets held for sale, the carrying value approximates the fair value with the asset value measured using Level 2 inputs. Fair Value of Financial Instruments 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. The carrying amounts of borrowings under credit facilities and under loans approximates fair value as interest rates on these instruments approximates current market rates. Notes payable and long-term debt is carried at amortized cost; however, the Company estimates the fair values of notes payable and long-term debt for disclosure purposes. The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated: November 30, 2021 August 31, 2021 (in millions) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 5) 4.700% Senior Notes Level 2 (1) $ 500 $ 515 $ 499 $ 521 4.900% Senior Notes Level 3 (2) $ 300 $ 318 $ 300 $ 322 3.950% Senior Notes Level 2 (1) $ 496 $ 546 $ 496 $ 555 3.600% Senior Notes Level 2 (1) $ 495 $ 541 $ 495 $ 541 3.000% Senior Notes Level 2 (1) $ 591 $ 616 $ 591 $ 618 1.700% Senior Notes Level 2 (1) $ 496 $ 495 $ 496 $ 504 (1) The fair value estimates are based upon observable market data. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. |
New Accounting Guidance
New Accounting Guidance | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | New Accounting Guidance New accounting guidance adopted during the period did not have a material impact to the Company. Recently issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | New accounting guidance adopted during the period did not have a material impact to the Company. Recently issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. |
Trade Accounts Receivable Sal_2
Trade Accounts Receivable Sale Programs (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of Trade Accounts Receivable Sale Programs Amounts Recognized | In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Three months ended November 30, 2021 November 30, 2020 Trade accounts receivable sold (1) $ 1,968 $ 1,256 Cash proceeds received $ 1,967 $ 1,255 Pre-tax losses on sale of receivables (2) $ 1 $ 1 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) Recorded to other expense within the Condensed Consolidated Statement of Operations. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in millions): November 30, 2021 August 31, 2021 Raw materials $ 3,709 $ 3,142 Work in process 552 677 Finished goods 508 680 Reserve for excess and obsolete inventory (88) (85) Inventories, net $ 4,681 $ 4,414 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases | The future minimum lease payments under these new leases as of November 30, 2021 were as follows (in millions): Payments due by period (in millions) Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 118 $ 18 $ 34 $ 28 $ 38 Finance lease obligations (1) $ 48 $ 24 $ 24 $ — $ — (1) Excludes $28 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. |
Schedule of Future Minimum Lease Payments under Finance Leases | The future minimum lease payments under these new leases as of November 30, 2021 were as follows (in millions): Payments due by period (in millions) Total Less than 1 1-3 years 3-5 years After 5 years Operating lease obligations (1) $ 118 $ 18 $ 34 $ 28 $ 38 Finance lease obligations (1) $ 48 $ 24 $ 24 $ — $ — (1) Excludes $28 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Long-term Debt | Notes payable and long-term debt outstanding as of November 30, 2021 and August 31, 2021 are summarized below (in millions): Maturity Date November 30, 2021 August 31, 2021 4.700% Senior Notes Sep 15, 2022 $ 500 $ 499 4.900% Senior Notes Jul 14, 2023 300 300 3.950% Senior Notes Jan 12, 2028 496 496 3.600% Senior Notes Jan 15, 2030 495 495 3.000% Senior Notes Jan 15, 2031 591 591 1.700% Senior Notes Apr 15, 2026 496 496 Borrowings under credit facilities (1) Jan 22, 2024 and Jan 22, 2026 — — Borrowings under loans Jul 31, 2026 1 1 Total notes payable and long-term debt 2,879 2,878 Less current installments of notes payable and long-term debt 500 — Notes payable and long-term debt, less current installments $ 2,379 $ 2,878 |
Asset-Backed Securitization P_2
Asset-Backed Securitization Program (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of Asset-backed Securitization Programs Amounts Recognized | In connection with the asset-backed securitization program, the Company recognized the following (in millions): Three months ended November 30, 2021 November 30, 2020 (4) Trade accounts receivable sold (1) $ 1,032 $ 1,173 Cash proceeds received (2) $ 1,030 $ 1,171 Pre-tax losses on sale of receivables (3) $ 2 $ 2 (1) Receivables sold are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. (2) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (3) Recorded to other expense within the Condensed Consolidated Statements of Operations. (4) Activity includes the foreign asset-backed securitization program which terminated on June 28, 2021. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in millions): November 30, 2021 August 31, 2021 Contract liabilities (1) $ 667 $ 559 Accrued compensation and employee benefits 778 827 Inventory deposits 850 711 Other accrued expenses 1,576 1,637 Accrued expenses $ 3,871 $ 3,734 (1) Revenue recognized during the three months ended November 30, 2021 and 2020 that was included in the contract liability balance as of August 31, 2021 and 2020 was $98 million and $170 million , respectively. |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Information about Net Periodic Benefit Cost for Plans | The following table provides information about the net periodic benefit cost for all plans for the three months ended November 30, 2021 and 2020 (in millions): Three months ended November 30, 2021 November 30, 2020 Service cost (1) $ 6 $ 6 Interest cost (2) 1 1 Expected long-term return on plan assets (2) (4) (4) Recognized actuarial gain (2) (3) (1) Amortization of actuarial gain (2)(3) (2) (2) Amortization of prior service cost (2) 1 — Net periodic benefit cost $ (1) $ — (1) Service cost is recognized in cost of revenue in the Condensed Consolidated Statement of Operations. (2) Components are recognized in other expense in the Condensed Consolidated Statement of Operations. (3) Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Net Gains from Forward Contracts Recorded in Consolidated Statements of Operations | The following table presents the gains from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in millions): Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Gain on Derivatives Recognized in Net Income Amount of Gain Recognized in Net Income on Derivatives Three months ended November 30, 2021 November 30, 2020 Forward foreign exchange contracts (1) Cost of revenue $ 38 $ 84 |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the interest rate swaps outstanding as of November 30, 2021, which have been designated as hedging instruments and accounted for as cash flow hedges: Interest Rate Swap Summary Hedged Interest Rate Payments Aggregate Notional Amount (in millions) Effective Date Expiration Date (1) Forward Interest Rate Swap Anticipated Debt Issuance Fixed $ 250 November 2, 2020 July 31, 2024 (2) Anticipated Debt Issuance Fixed $ 150 May 24, 2021 July 31, 2024 (2) (1) The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap. (2) If the anticipated debt issuance occurs before July 31, 2024, the contracts will be terminated simultaneously with the debt issuance. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income | The following table sets forth the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component for the three months ended November 30, 2021 (in millions): Foreign Derivative Actuarial Prior Total Balance as of August 31, 2021 $ (20) $ (36) $ 51 $ (20) $ (25) Other comprehensive (loss) income before reclassifications (27) 6 — — (21) Amounts reclassified from AOCI — 2 (5) 1 (2) Other comprehensive (loss) income (1) (27) 8 (5) 1 (23) Balance as of November 30, 2021 $ (47) $ (28) $ 46 $ (19) $ (48) (1) Amounts are net of tax, which are immaterial. |
Summary of Reclassification from AOCI | The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in millions): Three months ended Comprehensive Income Components Financial Statement Line Item November 30, 2021 November 30, 2020 Realized losses (gains) on derivative instruments: (1) Foreign exchange contracts Cost of revenue 1 (17) Interest rate contracts Interest expense 1 1 Actuarial gain (2) (5) — Prior service cost (2) 1 — Total amounts reclassified from AOCI (3) $ (2) $ (16) (1) The Company expects to reclassify $7 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. (2) Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 8 – “Postretirement and Other Employee Benefits” for additional information. (3) Amounts are net of tax, which are immaterial for the three months ended November 30, 2021 and 2020. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Recognized Stock-based Compensation Expense | The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions): Three months ended November 30, 2021 November 30, 2020 Restricted stock units $ 32 $ 32 Employee stock purchase plan 3 2 Total $ 35 $ 34 |
Schedule of Share-based Compensation Information | The following represents the stock-based compensation information as of the period indicated (in millions): November 30, 2021 Unrecognized stock-based compensation expense—restricted stock units $ 67 Remaining weighted-average period for restricted stock units expense 1.5 years |
Schedule of Common Stock Outstanding | The following represents the common stock outstanding for the periods indicated: Three months ended November 30, 2021 November 30, 2020 Common stock outstanding: Beginning balances 144,496,077 150,330,358 Vesting of restricted stock 2,425,472 2,217,082 Purchases of treasury stock under employee stock plans (690,555) (601,406) Treasury shares purchased (1) (2,064,985) (1,474,464) Ending balances 144,166,009 150,471,570 |
Concentration of Risk and Seg_2
Concentration of Risk and Segment Data (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Income from Segments to Consolidated | The following table sets forth operating segment information (in millions): Three months ended November 30, 2021 November 30, 2020 Segment income and reconciliation of income before income tax EMS $ 147 $ 122 DMS 253 243 Total segment income $ 400 $ 365 Reconciling items: Amortization of intangibles (8) (11) Stock-based compensation expense and related charges (35) (34) Restructuring, severance and related charges — 1 Acquisition and integration charges — (2) Other expense (net of periodic benefit cost) (8) (4) Interest income 1 2 Interest expense (33) (32) Income before income tax $ 317 $ 285 |
Schedule of Revenues Disaggregated by Segment | The following table presents the Company’s revenues disaggregated by segment (in millions): Three months ended November 30, 2021 November 30, 2020 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 1,407 $ 2,370 $ 3,777 $ 1,057 $ 2,240 $ 3,297 Over time 2,451 2,339 4,790 2,536 2,000 4,536 Total $ 3,858 $ 4,709 $ 8,567 $ 3,593 $ 4,240 $ 7,833 |
Schedule of Revenue from External Customers by Geographic Areas | The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended November 30, 2021 November 30, 2020 Foreign source revenue 84.8 % 83.6 % |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense | The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended November 30, 2021 November 30, 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % Effective income tax rate 23.9 % 29.6 % |
Earnings Per Share and Divide_2
Earnings Per Share and Dividends (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Dilutive Shares Outstanding Not Included in the Computation of EPS | Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands): Three months ended November 30, 2021 November 30, 2020 Restricted stock units 575.8 1,074.2 |
Schedule of Cash Dividends Declared to Common Stockholders | The following table sets forth cash dividends declared by the Company to common stockholders during the three months ended November 30, 2021 and 2020 (in millions, except for per share data): Dividend Dividend Total of Cash Date of Record for Dividend Cash Fiscal Year 2022: October 21, 2021 $ 0.08 $ 12 November 15, 2021 December 1, 2021 Fiscal Year 2021: October 15, 2020 $ 0.08 $ 12 November 16, 2020 December 2, 2020 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated: (in millions) Fair Value Hierarchy November 30, 2021 August 31, 2021 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 29 $ 36 Prepaid expenses and other current assets: Short-term investments Level 1 18 18 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) 17 9 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 50 20 Other assets: Forward interest rate swap: Derivatives designated as hedging instruments (Note 9) Level 2 (3) 9 9 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 9) Level 2 (2) $ 5 $ 6 Derivatives not designated as hedging instruments (Note 9) Level 2 (2) 10 9 Interest rate swaps: Derivatives not designated as hedging instruments (Note 9) Level 2 (3) 3 3 Extended interest rate swap not designated as a hedging instrument (Note 9) Level 2 (4) 9 10 Other liabilities: Forward interest rate swap: Derivatives designated as hedging instruments (Note 9) Level 2 (3) 6 7 (1) Consist of investments that are readily convertible to cash with original maturities of 90 days or less. (2) 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. (3) Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. (4) The 2020 Extended Interest Rate Swaps are considered a hybrid instrument and the Company elected the fair value option for reporting. Fair value measurements are based on the contractual terms of the contract and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis of the expected cash flows using observable inputs including interest rate curves and credit spreads. |
Schedule of Assets Held for Sale | The following table presents the assets held for sale: November 30, 2021 August 31, 2021 (in millions) Carrying Amount Carrying Amount Assets held for sale (1) $ 61 $ 61 (1) The fair value of assets held for sale exceeds the carrying value for $30 million of assets held for sale. For $31 million of assets held for sale, the carrying value approximates the fair value with the asset value measured using Level 2 inputs. |
Schedule of Carrying Amounts and Fair Values of Notes Payable and Long-term Debt | The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated: November 30, 2021 August 31, 2021 (in millions) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 5) 4.700% Senior Notes Level 2 (1) $ 500 $ 515 $ 499 $ 521 4.900% Senior Notes Level 3 (2) $ 300 $ 318 $ 300 $ 322 3.950% Senior Notes Level 2 (1) $ 496 $ 546 $ 496 $ 555 3.600% Senior Notes Level 2 (1) $ 495 $ 541 $ 495 $ 541 3.000% Senior Notes Level 2 (1) $ 591 $ 616 $ 591 $ 618 1.700% Senior Notes Level 2 (1) $ 496 $ 495 $ 496 $ 504 (1) The fair value estimates are based upon observable market data. |
Trade Accounts Receivable Sal_3
Trade Accounts Receivable Sale Programs (Additional Information) (Details) - 3 months ended Nov. 30, 2021 | USD ($)programcustomer | CNY (¥) | CHF (SFr) |
USD | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum amount | $ | $ 2,000,000,000 | ||
Number of programs | 9 | ||
CNY | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum amount | ¥ | ¥ 400,000,000 | ||
Number of programs | 1 | ||
CHF | |||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||
Maximum amount | SFr | SFr 100,000,000 | ||
Number of programs | customer | 1 |
Trade Accounts Receivable Sal_4
Trade Accounts Receivable Sale Programs (Trade Accounts Receivable Sale Programs Amounts Recognized) (Details) - Trade Accounts Receivable Sale Programs - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Trade accounts receivable sold | $ 1,968 | $ 1,256 |
Cash proceeds received | 1,967 | 1,255 |
Pre-tax losses on sale of receivables | $ 1 | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,709 | $ 3,142 |
Work in process | 552 | 677 |
Finished goods | 508 | 680 |
Reserve for excess and obsolete inventory | (88) | (85) |
Inventories, net | $ 4,681 | $ 4,414 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments under Operating and Finance Leases) (Details) $ in Millions | Nov. 30, 2021USD ($) |
Operating Leases | |
Minimum lease payments | $ 118 |
Less than 1 year | 18 |
1-3 years | 34 |
3-5 years | 28 |
After 5 years | 38 |
Finance Leases | |
Minimum lease payments | 48 |
Less than 1 year | 24 |
1-3 years | 24 |
3-5 years | 0 |
After 5 years | 0 |
Leases signed but not yet commenced | $ 28 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt (Schedule of Notes Payable and Long-term Debt) (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,879,000,000 | $ 2,878,000,000 |
Less current installments of notes payable and long-term debt | 500,000,000 | 0 |
Notes payable and long-term debt, less current installments | $ 2,379,000,000 | 2,878,000,000 |
Senior Notes | 4.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 4.70% | |
Long-term debt | $ 500,000,000 | 499,000,000 |
Senior Notes | 4.900% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 4.90% | |
Long-term debt | $ 300,000,000 | 300,000,000 |
Senior Notes | 3.950% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.95% | |
Long-term debt | $ 496,000,000 | 496,000,000 |
Senior Notes | 3.600% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.60% | |
Long-term debt | $ 495,000,000 | 495,000,000 |
Senior Notes | 3.000% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.00% | |
Long-term debt | $ 591,000,000 | 591,000,000 |
Senior Notes | 1.700% Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 1.70% | |
Long-term debt | $ 496,000,000 | 496,000,000 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Unused borrowing capacity | 3,800,000,000 | |
Line of Credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,000,000 | $ 1,000,000 |
Line of Credit | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,800,000,000 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt (Additional Information) (Details) - Senior Notes | Nov. 30, 2021 |
4.900% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, stated interest rate (as a percent) | 4.90% |
4.700% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, stated interest rate (as a percent) | 4.70% |
3.950% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, stated interest rate (as a percent) | 3.95% |
3.600% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, stated interest rate (as a percent) | 3.60% |
3.000% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, stated interest rate (as a percent) | 3.00% |
1.700% Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, stated interest rate (as a percent) | 1.70% |
Asset-Backed Securitization P_3
Asset-Backed Securitization Program (Additional Information) (Details) | Nov. 30, 2021USD ($) |
Transfers and Servicing [Abstract] | |
Maximum amount of net cash proceeds | $ 600,000,000 |
Available liquidity under its asset-backed securitization programs (up to) | $ 0 |
Asset-Backed Securitization P_4
Asset-Backed Securitization Program (Securitization Activity) (Details) - Asset-Backed Securitization Program - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||
Trade accounts receivable sold | $ 1,032 | $ 1,173 |
Cash proceeds received | 1,030 | 1,171 |
Pre-tax losses on sale of receivables | $ 2 | $ 2 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
Accrued Liabilities, Current [Abstract] | |||
Contract liabilities | $ 667 | $ 559 | |
Accrued compensation and employee benefits | 778 | 827 | |
Inventory deposits | 850 | 711 | |
Other accrued expenses | 1,576 | 1,637 | |
Accrued expenses | 3,871 | $ 3,734 | |
Revenue recognized during period that was included in contract liability balance | $ 98 | $ 170 |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 6 | $ 6 | |
Interest cost | 1 | 1 | |
Expected long-term return on plan assets | (4) | (4) | |
Recognized actuarial gain | (3) | (1) | |
Amortization of actuarial gains | (2) | (2) | |
Amortization of prior service credit | 1 | 0 | |
Net periodic benefit cost | $ (1) | $ 0 | |
Gain (loss) corridor | 10.00% | 10.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Additional Information) (Details) - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
3.000% Senior Notes | Senior Notes | ||
Derivative [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.00% | |
Interest rate swaps | Cash flow hedging | 3.000% Senior Notes | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 200,000,000 | |
Forward contracts | Cash flow hedging | ||
Derivative [Line Items] | ||
Aggregate notional amount | 3,500,000,000 | $ 3,600,000,000 |
Forward contracts | Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 1,300,000,000 | $ 1,500,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Fair Value of Derivative Instruments Recorded on Consolidated Statements of Operations) (Details) - Cost of revenue - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency losses | $ 27 | $ 73 |
Forward foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Net Income on Derivatives | $ 38 | $ 84 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Cash Flow Hedges) (Details) - Cash flow hedging - Forward contracts - USD ($) | Nov. 30, 2021 | Aug. 31, 2021 |
Derivative [Line Items] | ||
Aggregate notional amount | $ 3,500,000,000 | $ 3,600,000,000 |
Interest rate swaps | Debt obligation one | ||
Derivative [Line Items] | ||
Aggregate notional amount | 250,000,000 | |
Interest rate swaps | Debt obligation two | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 150,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Change in AOCI, Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 2,137 | $ 1,825 |
Other comprehensive (loss) income before reclassifications | (21) | |
Amounts reclassified from AOCI | (2) | |
Total other comprehensive (loss) income | (23) | 20 |
Ending Balance | 2,207 | 1,994 |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (20) | |
Other comprehensive (loss) income before reclassifications | (27) | |
Amounts reclassified from AOCI | 0 | |
Total other comprehensive (loss) income | (27) | |
Ending Balance | (47) | |
Derivative Instruments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (36) | |
Other comprehensive (loss) income before reclassifications | 6 | |
Amounts reclassified from AOCI | 2 | |
Total other comprehensive (loss) income | 8 | |
Ending Balance | (28) | |
Actuarial Gain (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | 51 | |
Other comprehensive (loss) income before reclassifications | 0 | |
Amounts reclassified from AOCI | (5) | |
Total other comprehensive (loss) income | (5) | |
Ending Balance | 46 | |
Prior Service (Cost) Credit | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (20) | |
Other comprehensive (loss) income before reclassifications | 0 | |
Amounts reclassified from AOCI | 1 | |
Total other comprehensive (loss) income | 1 | |
Ending Balance | (19) | |
AOCI Attributable to Parent | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (25) | (34) |
Total other comprehensive (loss) income | (23) | 20 |
Ending Balance | $ (48) | $ (14) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Reclassification from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of revenue | $ (7,892) | $ (7,198) |
Interest expense | (33) | (32) |
Other expense (income) | (1) | 1 |
Income before income tax | 317 | 285 |
Loss to be reclassified in next 12 months | 7 | |
Reclassification out of AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before income tax | (2) | (16) |
Reclassification out of AOCI | Realized losses (gain) on derivative instruments | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of revenue | 1 | (17) |
Reclassification out of AOCI | Realized losses (gain) on derivative instruments | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Interest expense | 1 | 1 |
Reclassification out of AOCI | Actuarial gain | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other expense (income) | 5 | 0 |
Reclassification out of AOCI | Prior service cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other expense (income) | $ (1) | $ 0 |
Stockholders' Equity (Recognize
Stockholders' Equity (Recognized Stock-Based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 35 | $ 34 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 32 | 32 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3 | $ 2 |
Stockholders' Equity (Additiona
Stockholders' Equity (Additional Information) (Details) - shares | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Time-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock units awarded (in shares) | 700,000 | 1,100,000 |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock units awarded (in shares) | 200,000 | 300,000 |
Performance-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 150.00% | |
Market-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Restricted stock units awarded (in shares) | 200,000 | 300,000 |
Market-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 200.00% | |
2021 EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available to be issued | 9,852,269 |
Stockholders' Equity (Stock-bas
Stockholders' Equity (Stock-based Compensation Information) (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2021USD ($) | |
Share-based Payment Arrangement [Abstract] | |
Unrecognized stock-based compensation expense—restricted stock units | $ 67 |
Remaining weighted-average period for restricted stock units expense | 1 year 6 months |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock Outstanding) (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Jul. 31, 2021 | |
Common stock outstanding: | |||
Common stock outstanding, beginning balances (in shares) | 144,496,077 | ||
Common stock outstanding, ending balance (in shares) | 144,166,009 | ||
2022 Share Repurchase Program | |||
Common stock outstanding: | |||
Share repurchase program, amount authorized | $ 1,000,000,000 | ||
Number of shares repurchased (in shares) | 2,800,000 | ||
Value of shares repurchased | $ 169,000,000 | ||
Share repurchase program, remaining amount available | $ 831,000,000 | ||
Common stock | |||
Common stock outstanding: | |||
Common stock outstanding, beginning balances (in shares) | 144,496,077 | 150,330,358 | |
Vesting of restricted stock (in shares) | 2,425,472 | 2,217,082 | |
Purchases of treasury stock under employee stock plans (in shares) | (690,555) | (601,406) | |
Treasury shares purchased (in shares) | (2,064,985) | (1,474,464) | |
Common stock outstanding, ending balance (in shares) | 144,166,009 | 150,471,570 |
Concentration of Risk and Seg_3
Concentration of Risk and Segment Data (Additional Information) (Details) | 3 Months Ended |
Nov. 30, 2021country | |
Revenue, Major Customer [Line Items] | |
Number of operating countries (more than) | 30 |
Net revenue | Customer concentration | Five largest customers | |
Revenue, Major Customer [Line Items] | |
Concentration risk | 49.00% |
Net revenue | Customer concentration | 74 Customers | |
Revenue, Major Customer [Line Items] | |
Concentration risk | 90.00% |
Concentration of Risk and Seg_4
Concentration of Risk and Segment Data (Segment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income | $ 317 | $ 285 |
Reconciling items: | ||
Amortization of Intangible Assets | (8) | (11) |
Stock-based compensation expense and related charges | (35) | (34) |
Restructuring, severance and related charges | 0 | 1 |
Interest income | 1 | 2 |
Interest Expense | (33) | (32) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income | 400 | 365 |
Operating Segments | EMS | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income | 147 | 122 |
Operating Segments | DMS | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income | 253 | 243 |
Segment Reconciling Items | ||
Reconciling items: | ||
Amortization of Intangible Assets | (8) | (11) |
Stock-based compensation expense and related charges | (35) | (34) |
Restructuring, severance and related charges | 0 | 1 |
Acquisition and integration charges | 0 | (2) |
Other expense (net of periodic benefit cost) | (8) | (4) |
Interest income | 1 | 2 |
Interest Expense | $ (33) | $ (32) |
Concentration of Risk and Seg_5
Concentration of Risk and Segment Data (Revenues Disaggregated by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 8,567 | $ 7,833 |
Point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 3,777 | 3,297 |
Over time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 4,790 | 4,536 |
EMS | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 3,858 | 3,593 |
EMS | Point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 1,407 | 1,057 |
EMS | Over time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 2,451 | 2,536 |
DMS | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 4,709 | 4,240 |
DMS | Point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 2,370 | 2,240 |
DMS | Over time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 2,339 | $ 2,000 |
Concentration of Risk and Seg_6
Concentration of Risk and Segment Data (Foreign Source Revenue) (Details) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Foreign source revenue | Net revenue | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk | 84.80% | 83.60% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 21.00% |
Effective income tax rate | 23.90% | 29.60% |
Earnings Per Share and Divide_3
Earnings Per Share and Dividends (Earnings Per Share) (Details) - shares | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation of diluted earnings per share (in shares) | 575,800 | 1,074,200 |
Earnings Per Share and Divide_4
Earnings Per Share and Dividends (Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 21, 2021 | Oct. 15, 2020 |
Earnings Per Share [Abstract] | ||
Dividend per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 12 | $ 12 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Level 1 | Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 29 | $ 36 |
Level 1 | Prepaid expenses and other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 18 | 18 |
Level 2 | Prepaid expenses and other current assets | Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 17 | 9 |
Level 2 | Prepaid expenses and other current assets | Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 50 | 20 |
Level 2 | Other assets | Designated as Hedging Instruments | Interest rate swaps | Forward contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 9 | 9 |
Level 2 | Accrued expenses | Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 5 | 6 |
Level 2 | Accrued expenses | Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 10 | 9 |
Level 2 | Accrued expenses | Not Designated as Hedging Instruments | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 3 | 3 |
Extended interest rate swap not designated as a hedging instrument | 9 | 10 |
Level 2 | Other liabilities | Designated as Hedging Instruments | Interest rate swaps | Forward contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ 6 | $ 7 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Held For Sale Measured At Fair Value) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held for sale, assets with fair value exceeding carrying value | $ 30 | |
Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held for sale, assets with carrying value approximating fair value | 31 | |
Carrying Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets held for sale | $ 61 | $ 61 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 2,879 | $ 2,878 |
Senior Notes | 4.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 4.70% | |
Carrying Amount | $ 500 | 499 |
Senior Notes | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 4.90% | |
Carrying Amount | $ 300 | 300 |
Senior Notes | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.95% | |
Carrying Amount | $ 496 | 496 |
Senior Notes | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.60% | |
Carrying Amount | $ 495 | 495 |
Senior Notes | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 3.00% | |
Carrying Amount | $ 591 | 591 |
Senior Notes | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, stated interest rate (as a percent) | 1.70% | |
Carrying Amount | $ 496 | 496 |
Senior Notes | Carrying Amount | Level 2 | 4.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 500 | 499 |
Senior Notes | Carrying Amount | Level 2 | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 496 | 496 |
Senior Notes | Carrying Amount | Level 2 | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 495 | 495 |
Senior Notes | Carrying Amount | Level 2 | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 591 | 591 |
Senior Notes | Carrying Amount | Level 2 | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 496 | 496 |
Senior Notes | Carrying Amount | Level 3 | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 300 | 300 |
Senior Notes | Fair Value | Level 2 | 4.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 515 | 521 |
Senior Notes | Fair Value | Level 2 | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 546 | 555 |
Senior Notes | Fair Value | Level 2 | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 541 | 541 |
Senior Notes | Fair Value | Level 2 | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 616 | 618 |
Senior Notes | Fair Value | Level 2 | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 495 | 504 |
Senior Notes | Fair Value | Level 3 | 4.900% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 318 | $ 322 |