Cover Page
Cover Page - shares | 6 Months Ended | |
Feb. 29, 2024 | Mar. 28, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 29, 2024 | |
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, $0.001 par value per share | |
Trading Symbol | JBL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 120,597,316 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000898293 | |
Current Fiscal Year End Date | --08-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 2,566 | $ 1,804 |
Accounts receivable, net of allowance for credit losses | 2,648 | 3,647 |
Contract assets | 1,086 | 1,035 |
Inventories, net of reserve for excess and obsolete inventory | 4,821 | 5,206 |
Prepaid expenses and other current assets | 1,349 | 1,109 |
Assets held for sale | 0 | 1,929 |
Total current assets | 12,470 | 14,730 |
Property, plant and equipment, net of accumulated depreciation of $4,655 as of February 29, 2024 and $4,512 as of August 31, 2023 | 3,045 | 3,137 |
Operating lease right-of-use asset | 363 | 367 |
Goodwill | 656 | 621 |
Intangible assets, net of accumulated amortization | 167 | 142 |
Deferred income taxes | 131 | 159 |
Other assets | 291 | 268 |
Total assets | 17,123 | 19,424 |
Current liabilities: | ||
Current installments of notes payable and long-term debt | 0 | 0 |
Accounts payable | 5,041 | 5,679 |
Accrued expenses | 5,548 | 5,515 |
Current operating lease liabilities | 102 | 104 |
Liabilities held for sale | 0 | 1,397 |
Total current liabilities | 10,691 | 12,695 |
Notes payable and long-term debt, less current installments | 2,878 | 2,875 |
Other liabilities | 374 | 319 |
Non-current operating lease liabilities | 272 | 269 |
Income tax liabilities | 110 | 131 |
Deferred income taxes | 140 | 268 |
Total liabilities | 14,465 | 16,557 |
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; 276,057,643 and 273,949,811 shares issued and 122,440,607 and 131,294,422 shares outstanding as of February 29, 2024 and August 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 2,877 | 2,795 |
Retained earnings | 5,512 | 4,412 |
Accumulated other comprehensive loss | (17) | (17) |
Treasury stock at cost, 153,617,036 and 142,655,389 shares as of February 29, 2024 and August 31, 2023, respectively | (5,714) | (4,324) |
Total Jabil Inc. stockholders’ equity | 2,658 | 2,866 |
Noncontrolling interests | 0 | 1 |
Total equity | 2,658 | 2,867 |
Total liabilities and equity | $ 17,123 | $ 19,424 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 4,655 | $ 4,512 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 276,057,643 | 273,949,811 |
Common stock, shares outstanding (in shares) | 122,440,607 | 131,294,422 |
Treasury stock at cost, shares (in shares) | 153,617,036 | 142,655,389 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Income Statement [Abstract] | ||||
Net revenue | $ 6,767 | $ 8,134 | $ 15,154 | $ 17,769 |
Cost of revenue | 6,137 | 7,473 | 13,749 | 16,365 |
Gross profit | 630 | 661 | 1,405 | 1,404 |
Operating expenses: | ||||
Selling, general and administrative | 308 | 285 | 622 | 604 |
Research and development | 10 | 8 | 20 | 17 |
Amortization of intangibles | 9 | 9 | 15 | 17 |
Restructuring, severance and related charges | 70 | 0 | 197 | 45 |
Gain from the divestiture of businesses | (944) | 0 | (944) | 0 |
Acquisition and divestiture related charges | 46 | 0 | 61 | 0 |
Operating income | 1,131 | 359 | 1,434 | 721 |
Other expense | 22 | 17 | 43 | 32 |
Interest expense, net | 47 | 55 | 94 | 103 |
Income before income tax | 1,062 | 287 | 1,297 | 586 |
Income tax expense | 135 | 80 | 176 | 156 |
Net income | 927 | 207 | 1,121 | 430 |
Net income attributable to noncontrolling interests, net of tax | 0 | 0 | 0 | 0 |
Net income attributable to Jabil Inc. | $ 927 | $ 207 | $ 1,121 | $ 430 |
Earnings per share attributable to the stockholders of Jabil Inc.: | ||||
Basic (in usd per share) | $ 7.41 | $ 1.55 | $ 8.80 | $ 3.21 |
Diluted (in usd per share) | $ 7.31 | $ 1.52 | $ 8.66 | $ 3.14 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 125.2 | 133.6 | 127.4 | 134.2 |
Diluted (in shares) | 126.9 | 136.3 | 129.5 | 137.1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 927 | $ 207 | $ 1,121 | $ 430 |
Other comprehensive (loss) income: | ||||
Change in foreign currency translation | (7) | 14 | (7) | 18 |
Change in derivative instruments: | ||||
Change in fair value of derivatives | (1) | 18 | (4) | (7) |
Adjustment for net (gains) losses realized and included in net income | (2) | 1 | 14 | 44 |
Total change in derivative instruments | (3) | 19 | 10 | 37 |
Actuarial loss | (2) | (2) | (5) | (5) |
Prior service credit | 1 | 0 | 2 | 1 |
Total other comprehensive (loss) income | (11) | 31 | 0 | 51 |
Comprehensive income | 916 | 238 | 1,121 | 481 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Jabil Inc. | $ 916 | $ 238 | $ 1,121 | $ 481 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Additional paid-in capital: | Retained earnings: | Accumulated other comprehensive (loss) income: | Treasury stock: | Noncontrolling interests: |
Beginning Balance at Aug. 31, 2022 | $ 2,452 | $ 2,655 | $ 3,638 | $ (42) | $ (3,800) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock purchase plan | 27 | |||||
Treasury shares purchased | (288) | |||||
Recognition of stock-based compensation | 60 | |||||
Declared dividends | (22) | |||||
Net income attributable to Jabil Inc. | 430 | 430 | ||||
Total other comprehensive (loss) income | 51 | 51 | ||||
Purchases of treasury stock under employee stock plans | (36) | |||||
Ending Balance at Feb. 28, 2023 | 2,674 | 2,742 | 4,046 | 9 | (4,124) | 1 |
Beginning Balance at Nov. 30, 2022 | 2,530 | 2,696 | 3,849 | (22) | (3,994) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock purchase plan | 27 | |||||
Treasury shares purchased | (127) | |||||
Recognition of stock-based compensation | 19 | |||||
Declared dividends | (10) | |||||
Net income attributable to Jabil Inc. | 207 | 207 | ||||
Total other comprehensive (loss) income | 31 | 31 | ||||
Purchases of treasury stock under employee stock plans | (3) | |||||
Ending Balance at Feb. 28, 2023 | 2,674 | 2,742 | 4,046 | 9 | (4,124) | 1 |
Beginning Balance at Aug. 31, 2023 | 2,867 | 2,795 | 4,412 | (17) | (4,324) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock purchase plan | 31 | |||||
Purchase of noncontrolling interest | (2) | (1) | ||||
Treasury shares purchased | (13) | (1,312) | ||||
Recognition of stock-based compensation | 66 | |||||
Declared dividends | (21) | |||||
Net income attributable to Jabil Inc. | 1,121 | 1,121 | ||||
Total other comprehensive (loss) income | 0 | |||||
Purchases of treasury stock under employee stock plans | (67) | |||||
Excise taxes related to treasury shares purchased | (11) | |||||
Ending Balance at Feb. 29, 2024 | 2,658 | 2,877 | 5,512 | (17) | (5,714) | |
Beginning Balance at Nov. 30, 2023 | 2,536 | 2,827 | 4,595 | (6) | (4,881) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock purchase plan | 31 | |||||
Purchase of noncontrolling interest | (2) | $ (1) | ||||
Treasury shares purchased | (825) | |||||
Recognition of stock-based compensation | 21 | |||||
Declared dividends | (10) | |||||
Net income attributable to Jabil Inc. | 927 | 927 | ||||
Total other comprehensive (loss) income | (11) | (11) | ||||
Excise taxes related to treasury shares purchased | (8) | |||||
Ending Balance at Feb. 29, 2024 | $ 2,658 | $ 2,877 | $ 5,512 | $ (17) | $ (5,714) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Cash flows provided by operating activities: | ||
Net income | $ 1,121 | $ 430 |
Depreciation, amortization, and other, net | 356 | 514 |
Gain from the divestiture of businesses | (944) | 0 |
Change in operating assets and liabilities, exclusive of net assets acquired | 133 | (364) |
Net cash provided by operating activities | 666 | 580 |
Cash flows provided by (used in) investing activities: | ||
Acquisition of property, plant and equipment | (554) | (637) |
Proceeds and advances from sale of property, plant and equipment | 109 | 169 |
Cash paid for business and intangible asset acquisitions, net of cash | (93) | 0 |
Proceeds from the divestiture of businesses, net of cash | 2,108 | 0 |
Other, net | (12) | (16) |
Net cash provided by (used in) investing activities | 1,558 | (484) |
Cash flows used in financing activities: | ||
Borrowings under debt agreements | 1,799 | 2,021 |
Payments toward debt agreements | (1,866) | (2,070) |
Payments to acquire treasury stock | (1,325) | (288) |
Dividends paid to stockholders | (22) | (23) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 31 | 27 |
Treasury stock minimum tax withholding related to vesting of restricted stock | (67) | (36) |
Other, net | (5) | (2) |
Net cash used in financing activities | (1,455) | (371) |
Effect of exchange rate changes on cash and cash equivalents | (7) | (3) |
Net increase (decrease) in cash and cash equivalents | 762 | (278) |
Cash and cash equivalents at beginning of period | 1,804 | 1,478 |
Cash and cash equivalents at end of period | $ 2,566 | $ 1,200 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the information set forth therein have been included. The 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, 2023. Results for the six months ended February 29, 2024 are not necessarily an indication of the results that may be expected for the full fiscal year ending August 31, 2024. |
Trade Accounts Receivable Sale
Trade Accounts Receivable Sale Programs | 6 Months Ended |
Feb. 29, 2024 | |
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 February 29, 2024, the Company may elect to sell receivables and the unaffiliated financial institutions may elect to purchase specific accounts receivable at any one time, at a discount, on an ongoing basis up to a: (i) maximum aggregate amount available of $2.1 billion under nine trade accounts receivable sale programs, (ii) maximum amount available of 100 million CHF under one trade accounts receivable sale program, (iii) maximum amount available of 8.1 billion INR under one trade accounts receivable sale program, and (iv) maximum amount available of 1.4 billion CNY under one trade accounts receivable sale program. The trade accounts receivable sale programs either expire on various dates through 2028 or do not have expiration dates and may be terminated upon election of the Company or the unaffiliated financial institutions. In April 2024, the Company terminated its $700 million trade accounts receivable sale program which was set to expire on December 5, 2025 and entered into a new trade accounts receivable sale program with a maximum amount available of $200 million. 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 and six months ended February 29, 2024 and February 28, 2023 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Trade accounts receivable sold (1) $ 1,818 $ 2,922 $ 3,854 $ 6,450 Cash proceeds received $ 1,809 $ 2,914 $ 3,834 $ 6,432 Pre-tax losses on sale of receivables (2) $ 9 $ 8 $ 20 $ 18 (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 Statements of Operations. Certain Jabil entities participating in the global asset-backed securitization program continuously sell designated pools of trade accounts receivable to a special purpose entity, which in turn sells certain of the receivables at a discount to conduits administered by an unaffiliated financial institution on a monthly basis. In addition, a foreign entity participating in the global asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. 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 global asset-backed securitization program recognized during the three months and six months ended February 29, 2024 and February 28, 2023 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 February 29, 2024. The global asset-backed securitization program expires on November 25, 2024. Effective February 20, 2024, the terms of the global asset-backed securitization program were amended to increase the maximum amount of net cash proceeds available at any one time from $600 million to $700 million. As of February 29, 2024, the Company had up to $15 million in available liquidity under its global asset-backed securitization program. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Trade accounts receivable sold (1) $ 968 $ 998 $ 1,957 $ 2,064 Cash proceeds received (2) $ 955 $ 989 $ 1,934 $ 2,047 Pre-tax losses on sale of receivables (3) $ 13 $ 9 $ 23 $ 17 (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. |
Inventories
Inventories | 6 Months Ended |
Feb. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in millions): February 29, 2024 August 31, 2023 (1) Raw materials $ 4,445 $ 4,804 Work in process 232 217 Finished goods 198 243 Reserve for excess and obsolete inventory (54) (58) Inventories, net $ 4,821 $ 5,206 (1) Excludes $559 million of inventories, net classified as held for sale as of August 31, 2023. See Note 15 – “Business Acquisitions and Divestitures” for additional information. |
Notes Payable and Long-Term Deb
Notes Payable and Long-Term Debt | 6 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of February 29, 2024 and August 31, 2023 are summarized below (in millions): Maturity Date February 29, 2024 August 31, 2023 3.950% Senior Notes Jan 12, 2028 498 497 3.600% Senior Notes Jan 15, 2030 497 496 3.000% Senior Notes Jan 15, 2031 593 593 1.700% Senior Notes Apr 15, 2026 498 498 4.250% Senior Notes May 15, 2027 496 495 5.450% Senior Notes Feb 1, 2029 296 296 Borrowings under credit facilities (1)(2) Jan 22, 2026 and Jan 22, 2028 — — Borrowings under loans Jul 31, 2026 — — Total notes payable and long-term debt 2,878 2,875 Less current installments of notes payable and long-term debt — — Notes payable and long-term debt, less current installments $ 2,878 $ 2,875 (1) On February 23, 2024, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (as amended, the “Credit Facility”). The Amendment, among other things, (i) instituted certain amendments to the sustainability-linked adjustments to the interest rates applicable to borrowings under the Company’s three-year revolving credit facility (the “Three-Year Revolving Credit Facility”) and the Company’s five-year revolving credit facility (the “Five-Year Revolving Credit Facility”) and (ii) extended the termination date of the Three-Year Revolving Credit Facility (with respect to the available commitments of the extending lenders) to January 22, 2026, and of the Five-Year Revolving Credit Facility (with respect to the available commitments of the extending lenders) to January 22, 2028, in each case subject to an additional one-year extension at the option of the Company. (2) As of February 29, 2024, the Company has $3.9 billion in available unused borrowing capacity under its revolving credit facilities. The Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $3.2 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 contain debt leverage and interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 3.950%, 3.600%, 3.000%, 1.700%, 4.250% or 5.450% Senior Notes upon a change of control. As of February 29, 2024 and August 31, 2023, the Company was in compliance with its debt covenants. Fair Value |
Asset-Backed Securitization Pro
Asset-Backed Securitization Program | 6 Months Ended |
Feb. 29, 2024 | |
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 February 29, 2024, the Company may elect to sell receivables and the unaffiliated financial institutions may elect to purchase specific accounts receivable at any one time, at a discount, on an ongoing basis up to a: (i) maximum aggregate amount available of $2.1 billion under nine trade accounts receivable sale programs, (ii) maximum amount available of 100 million CHF under one trade accounts receivable sale program, (iii) maximum amount available of 8.1 billion INR under one trade accounts receivable sale program, and (iv) maximum amount available of 1.4 billion CNY under one trade accounts receivable sale program. The trade accounts receivable sale programs either expire on various dates through 2028 or do not have expiration dates and may be terminated upon election of the Company or the unaffiliated financial institutions. In April 2024, the Company terminated its $700 million trade accounts receivable sale program which was set to expire on December 5, 2025 and entered into a new trade accounts receivable sale program with a maximum amount available of $200 million. 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 and six months ended February 29, 2024 and February 28, 2023 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Trade accounts receivable sold (1) $ 1,818 $ 2,922 $ 3,854 $ 6,450 Cash proceeds received $ 1,809 $ 2,914 $ 3,834 $ 6,432 Pre-tax losses on sale of receivables (2) $ 9 $ 8 $ 20 $ 18 (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 Statements of Operations. Certain Jabil entities participating in the global asset-backed securitization program continuously sell designated pools of trade accounts receivable to a special purpose entity, which in turn sells certain of the receivables at a discount to conduits administered by an unaffiliated financial institution on a monthly basis. In addition, a foreign entity participating in the global asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. 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 global asset-backed securitization program recognized during the three months and six months ended February 29, 2024 and February 28, 2023 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 February 29, 2024. The global asset-backed securitization program expires on November 25, 2024. Effective February 20, 2024, the terms of the global asset-backed securitization program were amended to increase the maximum amount of net cash proceeds available at any one time from $600 million to $700 million. As of February 29, 2024, the Company had up to $15 million in available liquidity under its global asset-backed securitization program. In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Trade accounts receivable sold (1) $ 968 $ 998 $ 1,957 $ 2,064 Cash proceeds received (2) $ 955 $ 989 $ 1,934 $ 2,047 Pre-tax losses on sale of receivables (3) $ 13 $ 9 $ 23 $ 17 (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. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Feb. 29, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in millions): February 29, 2024 August 31, 2023 (2) Inventory deposits $ 1,699 $ 1,839 Contract liabilities (1) 976 886 Accrued compensation and employee benefits 573 743 Other accrued expenses 2,300 2,047 Accrued expenses $ 5,548 $ 5,515 (1) Revenue recognized during the three months and six months ended February 29, 2024 that was included in the contract liability balance as of August 31, 2023 was $114 million and $275 million, respectively. Revenue recognized during the three months and six months ended February 28, 2023 that was included in the contract liability balance as of August 31, 2022 was $115 million and $254 million, respectively. (2) Excludes $364 million of accrued expenses classified as held for sale as of August 31, 2023. See Note 15 – “Business Acquisitions and Divestitures” for additional information. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 6 Months Ended |
Feb. 29, 2024 | |
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 and six months ended February 29, 2024 and February 28, 2023 (in millions): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Service cost (1) $ 5 $ 4 $ 10 $ 8 Interest cost (2) 3 3 6 6 Expected long-term return on plan assets (2) (5) (3) (9) (8) Recognized actuarial gain (2) (1) (2) (3) (4) Amortization of actuarial gain (2)(3) (1) (2) (2) (3) Amortization of prior service cost (2) 1 1 2 2 Net periodic benefit cost $ 2 $ 1 $ 4 $ 1 (1) Service cost is recognized in cost of revenue in the Condensed Consolidated Statements of Operations. (2) Components are recognized in other expense in the Condensed Consolidated Statements 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 | 6 Months Ended |
Feb. 29, 2024 | |
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 $167 million and $491 million as of February 29, 2024 and August 31, 2023, 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 March 1, 2024 and November 30, 2024. 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 February 29, 2024 and August 31, 2023, was $2.4 billion and $4.0 billion, respectively. The gains and losses on cash flow hedges recognized in earnings due to amounts 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. In addition, the Company has entered into forward foreign currency exchange contracts to hedge a portion of its net investment in foreign currency denominated operations, which are designated as net investment hedges. The maturity dates and aggregate notional amount outstanding of net investment hedges are as follows (in millions): Maturity date February 29, 2024 August 31, 2023 September 2023 $ — $ 34 October 2023 — 96 January 2024 — 96 April 2024 103 68 July 2024 178 102 October 2024 96 — Total $ 377 $ 396 The gains and losses on net investment hedges are included in change in foreign currency translation in OCI to offset the change in the carrying value of the net investment being hedged until the complete or substantially complete liquidation of the hedged foreign operation. The amounts excluded from effectiveness testing were not material for all periods presented and are recognized in interest expense, net. Refer to Note 16 – “Fair Value Measurements” for the fair values and classification of the Company’s derivative instruments. The following table presents the net (losses) 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 (Loss) Gain on Derivatives Recognized in Net Income Amount of (Loss) Gain Recognized in Net Income on Derivatives Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Forward foreign exchange contracts (1) Cost of revenue $ (11) $ 30 $ 7 $ (16) (1) For the three months ended February 29, 2024, the Company recognized $3 million of foreign currency gains in cost of revenue, which are offset by the losses from the forward foreign exchange contracts. For the six months ended February 29, 2024, the Company recognized $35 million of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. For the three months ended February 28, 2023, the Company recognized $53 million of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. For the six months ended February 28, 2023, the Company recognized $4 million of foreign currency losses in cost of revenue, in addition to losses from the forward foreign exchange contracts. Interest Rate Risk Management |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table sets forth the changes in AOCI, net of tax, by component for the six months ended February 29, 2024 (in millions): Foreign Currency Net Investment Hedges Derivative Actuarial Gain (Loss) Prior Service (Cost) Credit Total Balance as of August 31, 2023 $ (59) $ (4) $ 14 $ 46 $ (14) $ (17) Other comprehensive loss before reclassifications (1) — (4) — — (5) Amounts reclassified from AOCI (2) (4) 14 (5) 2 5 Other comprehensive (loss) income (1) (3) (4) 10 (5) 2 — Balance as of February 29, 2024 $ (62) $ (8) $ 24 $ 41 $ (12) $ (17) (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 Six months ended Comprehensive Income Components Financial Statement Line Item February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Realized gains on foreign currency translation Gain from the divestiture of businesses $ (2) $ — $ (2) $ — Realized gains on net investment hedges Gain from the divestiture of businesses (4) — (4) — Realized (gains) losses on derivative instruments: (1) Foreign exchange contracts Cost of revenue (2) 1 15 44 Interest rate contracts Interest expense, net — — (1) — Realized (gains) losses on pension and postretirement plans: Actuarial gains (2) (2) (4) (5) (7) Prior service costs (2) 1 1 2 2 Total amounts reclassified from AOCI (3) $ (9) $ (2) $ 5 $ 39 (1) The Company expects to reclassify $2 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 cost. Refer to Note 7 – “Postretirement and Other Employee Benefits” for additional information. (3) Amounts are net of tax, which are immaterial for the three months and six months ended February 29, 2024 and February 28, 2023. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Feb. 29, 2024 | |
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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Restricted stock units $ 18 $ 16 $ 60 $ 54 Employee stock purchase plan 5 4 9 8 Total $ 23 $ 20 $ 69 $ 62 As of February 29, 2024 , the shares available to be issued under t he 2021 Equity Incentive Plan were 7,813,996. 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. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 150%, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the six months ended February 29, 2024 and February 28, 2023, the Company awarded approximately 0.4 million and 0.9 million time-based restricted stock units, respectively, 0.1 million and 0.2 million performance-based restricted stock units, respectively, and 0.1 million and 0.2 million market-based restricted stock units, respectively. The following represents the stock-based compensation information as of the period indicated (in millions): February 29, 2024 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Common stock outstanding: Beginning balances 128,647,431 134,231,300 131,294,422 135,493,980 Shares issued under employee stock purchase plan 338,316 629,336 338,316 629,336 Vesting of restricted stock 2,741 148,718 1,769,516 2,010,396 Purchases of treasury stock under employee stock plans (795) (47,242) (526,823) (570,649) Treasury shares purchased (1)(2) (6,547,086) (1,723,744) (10,434,824) (4,324,695) Ending balances 122,440,607 133,238,368 122,440,607 133,238,368 (1) In July 2021, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2022 Share Repurchase Program”). As of February 28, 2023, 16.5 million shares had been repurchased for $1.0 billion and no authorization remained under the 2022 Share Repurchase Program. (2) In September 2022, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2023 Share Repurchase Program”). As of August 31, 2023, 2.7 million shares had been repurchased for $224 million, excluding excise tax. In September 2023, the Board of Directors amended and increased the 2023 Share Repurchase Program to allow for the repurchase of up to $2.5 billion of the Company’s common stock. As part of the amended 2023 Share Repurchase Program, the Company entered into an accelerated share repurchase (“ASR”) agreement with a bank in September 2023 to repurchase $500 million of the Company’s common stock. During the first quarter of 2024, the ASR transaction was completed, and 3.9 million shares were delivered under the ASR agreement at an average price of $128.61. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume weighted average price of the Company’s common stock during the term of the agreement. As of February 29, 2024, 10.4 million shares had been repurchased for $1.3 billion, excluding excise tax, and $1.2 billion remains available under the amended 2023 Share Repurchase Program. |
Concentration of Risk and Segme
Concentration of Risk and Segment Data | 6 Months Ended |
Feb. 29, 2024 | |
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 six months ended February 29, 2024, the Company’s five largest customers accounted for approximately 39% of its net revenue and 82 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 DMS segment included the results of the Company’s mobility business prior to the closing of its sale on December 29, 2023. 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Segment income and reconciliation of income before income tax EMS $ 145 $ 205 $ 310 $ 403 DMS 193 186 527 449 Total segment income $ 338 $ 391 $ 837 $ 852 Reconciling items: Amortization of intangibles (9) (9) (15) (17) Stock-based compensation expense and related charges (23) (20) (69) (62) Restructuring, severance and related charges (70) — (197) (45) Gain from the divestiture of businesses 944 — 944 — Acquisition and divestiture related charges (46) — (61) — Other expense (net of periodic benefit cost) (25) (20) (48) (39) Interest expense, net (47) (55) (94) (103) Income before income tax $ 1,062 $ 287 $ 1,297 $ 586 The following table presents the Company’s revenues disaggregated by segment (in millions): Three months ended February 29, 2024 February 28, 2023 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 1,206 $ 773 $ 1,979 $ 1,267 $ 1,416 $ 2,683 Over time 2,125 2,663 4,788 2,784 2,667 5,451 Total $ 3,331 $ 3,436 $ 6,767 $ 4,051 $ 4,083 $ 8,134 Six months ended February 29, 2024 February 28, 2023 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 2,301 $ 2,787 $ 5,088 $ 2,805 $ 3,696 $ 6,501 Over time 4,622 5,444 10,066 5,792 5,476 11,268 Total $ 6,923 $ 8,231 $ 15,154 $ 8,597 $ 9,172 $ 17,769 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Foreign source revenue 82.5 % 84.0 % 84.7 % 85.0 % |
Restructuring, Severance and Re
Restructuring, Severance and Related Charges | 6 Months Ended |
Feb. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Severance and Related Charges | Restructuring, Severance and Related Charges Following is a summary of the Company’s restructuring, severance and related charges (in millions): Three months ended Six months ended February 29, 2024 (1) February 28, 2023 (2) February 29, 2024 (1) February 28, 2023 (2) Employee severance and benefit costs $ 28 $ (4) $ 123 $ 36 Lease costs 1 — 1 — Asset write-off costs 33 4 55 5 Other costs 8 — 18 4 Total restructuring, severance and related charges (3) $ 70 $ — $ 197 $ 45 (1) Primarily relates to the 2024 Restructuring Plan. (2) Primarily relates to headcount reduction to further optimize the Company’s business activities. (3) Includes $11 million and $0 million recorded in the EMS segment, $35 million and $0 million recorded in the DMS segment and $24 million and $0 million of non-allocated charges for the three months ended February 29, 2024 and February 28, 2023, respectively. Includes $40 million and $4 million recorded in the EMS segment, $114 million and $33 million recorded in the DMS segment and $43 million and $8 million of non-allocated charges for the six months ended February 29, 2024 and February 28, 2023, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs. 2024 Restructuring Plan On September 26, 2023, the Company’s Board of Directors approved a restructuring plan to (i) realign the Company’s cost base for stranded costs associated with the Company’s sale and realignment of its mobility business and (ii) optimize the Company’s global footprint. This action includes headcount reductions across our Selling, General and Administrative (“SG&A”) cost base and capacity realignment (the “2024 Restructuring Plan”). The 2024 Restructuring Plan reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain locations, are still subject to consultation with the Company’s employees and their representatives. The Company currently expects to recognize approximately $300 million in pre-tax restructuring and other related costs over the course of the Company’s 2024 fiscal year. The restructuring and other related charges are expected to include $150 million to $180 million of employee severance and benefit costs; $80 million to $120 million of asset write-off costs; and $30 million to $40 million of contract termination costs and other related costs. The amount and timing of the actual charges may vary due to a variety of factors, including the finalization of timetables for the transition of functions, consultation with employees and their representatives, as well as the impact of jurisdictional statutory severance requirements. The Company’s estimates for the charges discussed above exclude any potential income tax effects. The table below summarizes the Company’s liability activity, primarily associated with the 2024 Restructuring Plan (in millions): Employee Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2023 $ — $ — $ — $ — $ — Restructuring related charges 123 1 55 18 197 Asset write-off charge and other non-cash activity — — (55) (5) (60) Cash payments (57) (1) — (4) (62) Balance as of February 29, 2024 $ 66 $ — $ — $ 9 $ 75 |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 29, 2024 | |
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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective income tax rate 12.7 % 27.6 % 13.6 % 26.6 % The effective income tax rate differed for the three months and six months ended February 29, 2024, compared to the three months and six months ended February 28, 2023, primarily due to: (i) a change in the jurisdictional mix of earnings, driven in part by restructuring charges and (ii) the gain from the divestiture of the mobility business and corresponding $58 million of income tax expense during the three months ended February 29, 2024. The effective income tax rate differed from the U.S. federal statutory income tax rate of 21.0% during the three months and six months ended February 29, 2024 and February 28, 2023, primarily due to: (i) the jurisdictional mix of earnings, (ii) losses in tax jurisdictions with existing valuation allowances, (iii) tax incentives granted to sites in China, Malaysia, Singapore and Vietnam, and (iv) the gain from the divestiture of the mobility business and corresponding $58 million of income tax expense during the three months ended February 29, 2024. |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 6 Months Ended |
Feb. 29, 2024 | |
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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Restricted stock units 293.5 363.7 309.5 363.7 Dividends The following table sets forth cash dividends declared by the Company to common stockholders during the six months ended February 29, 2024 and February 28, 2023 (in millions, except for per share data): Dividend Dividend Total of Cash Date of Record for Dividend Cash Fiscal Year 2024: October 19, 2023 $ 0.08 $ 11 November 15, 2023 December 4, 2023 January 25, 2024 $ 0.08 $ 10 February 15, 2024 March 4, 2024 Fiscal Year 2023: October 20, 2022 $ 0.08 $ 12 November 15, 2022 December 2, 2022 January 26, 2023 $ 0.08 $ 10 February 15, 2023 March 2, 2023 |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 6 Months Ended |
Feb. 29, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions and Divestitures | Business Acquisitions and Divestitures Acquisitions On November 1, 2023, the Company completed the acquisition of ProcureAbility Inc. (“ProcureAbility”) for approximately $60 million in cash. ProcureAbility is a procurement services provider specializing in technology-enabled advisory, managed services, digital, staffing, and recruiting solutions. The acquisition of ProcureAbility was accounted for as a business combination using the acquisition method of accounting. Assets acquired of $87 million, including $40 million in intangible assets and $38 million in goodwill, and liabilities assumed of $26 million were recorded at their estimated fair values as of the acquisition date. The allocation of the purchase price is considered preliminary pending final valuation for the Company. 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 DMS segment. The majority of the goodwill is currently not expected to be deductible for income tax purposes. The results of operations were included in the Company’s condensed consolidated financial results beginning on November 1, 2023. Pro forma information has not been provided as the acquisition of ProcureAbility is not deemed to be significant. Divestitures The Company announced on September 26, 2023 that, through its indirect subsidiary, Jabil Circuit (Singapore) Pte. Ltd., a Singapore private limited company (“Singapore Seller”), it agreed to sell to an affiliate of BYD Electronic (International) Co. Ltd., a Hong Kong limited liability company (“Purchaser” or “BYDE”), its product manufacturing business in Chengdu, including its supporting component manufacturing in Wuxi (the “Business”) for cash consideration of approximately $2.2 billion, subject to certain customary purchase price adjustments. As of August 31, 2023, the Company determined the Business met the criteria to be classified as held for sale. Accordingly, the Company presented the assets and liabilities of the Business as held for sale in the Condensed Consolidated Balance Sheets as of November 30, 2023 and August 31, 2023. Assets and liabilities classified as held for sale had a carrying value less than the estimated fair value less cost to sell and, thus, no adjustment to the carrying value of the disposal group was necessary. Depreciation and amortization expense for long-lived assets was not recorded for the period in which these assets were classified as held for sale. The divestiture did not meet the criteria to be reported as discontinued operations and the Company continued to report the operating results for the Business in the Company’s Condensed Consolidated Statement of Operations in the DMS segment until the Closing Date. On December 29, 2023 (the “Closing Date”), the Company completed the sale. As a result of the transaction, the Company derecognized net assets of approximately $1.2 billion, and recorded a pre-tax gain of $944 million, subject to certain post-closing adjustments that are expected to be finalized in the third quarter of fiscal year 2024. In addition, the Company agreed to indemnify the Purchaser from certain liabilities that may arise post-close that relate to periods prior to the Closing Date. The Company incurred transaction and disposal costs in connection with the sale of approximately $46 million and $61 million during the three months and six months ended February 29, 2024, respectively, which are included in continuing operations in the Company’s Condensed Consolidated Statement of Operations. The Company performs a goodwill impairment analysis on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In connection with the preparation of the Company’s financial statements for the quarter ended February 29, 2024, the Company completed an impairment analysis for goodwill recorded within the reporting unit impacted by the divestiture of the Business. The quantitative assessment was used, and the Company determined that it is more likely than not that the fair value of the impacted reporting unit is in excess of the carrying value and that no impairment existed subsequent to the closing of the Business. The Company allocated goodwill to the disposal group based on the relative fair value of the Business as compared to the impacted reporting unit. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 29, 2024 | |
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 February 29, 2024 August 31, 2023 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 572 $ — Prepaid expenses and other current assets: Short-term investments Level 1 26 25 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 8) Level 2 (2) 9 4 Derivatives not designated as hedging instruments (Note 8) Level 2 (2) 12 20 Net investment hedges: Derivatives designated as hedging instruments (Note 8) Level 2 (2) 7 9 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 8) Level 2 (2) $ 7 $ 17 Derivatives not designated as hedging instruments (Note 8) Level 2 (2) 8 64 Net investment hedges: Derivatives designated as hedging instruments (Note 8) Level 2 (2) 1 1 (1) Consist of time deposits that are readily convertible to cash with original maturities of 90 days or less. (2) The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges 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. 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 approximate fair value as interest rates on these instruments approximate 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 (in millions): February 29, 2024 August 31, 2023 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 4) 3.950% Senior Notes Level 2 (1) $ 498 $ 473 $ 497 $ 468 3.600% Senior Notes Level 2 (1) $ 497 $ 451 $ 496 $ 448 3.000% Senior Notes Level 2 (1) $ 593 $ 512 $ 593 $ 502 1.700% Senior Notes Level 2 (1) $ 498 $ 463 $ 498 $ 452 4.250% Senior Notes Level 2 (1) $ 496 $ 483 $ 495 $ 478 5.450% Senior Notes Level 2 (1) $ 296 $ 300 $ 296 $ 297 (1) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 29, 2024 | |
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 | 6 Months Ended |
Feb. 29, 2024 | |
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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 927 | $ 207 | $ 1,121 | $ 430 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Feb. 29, 2024 shares | Feb. 29, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mr. Kenneth Wilson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On January 15, 2024, Mr. Kenneth Wilson, our Chief Executive Officer and Director ("Seller"), entered into a Rule 10b5-1 Trading Plan (the “Plan”) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934. The Plan terminates on the earlier to occur of (i) the close of trading on December 31, 2025, (ii) promptly after termination of the Plan by Seller, (iii) determination by a party that the Plan does not comply with Rule 10b5-1, (iv) promptly after the broker is notified of the death, dissolution, bankruptcy or insolvency of Seller, (v) immediately if stock is not delivered as required under the Plan or (vi) the date that the aggregate number of shares of stock sold under the Plan reaches 32,440. | |
Name | Mr. Kenneth Wilson | |
Title | Chief Executive Officer and Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | January 15, 2024 | |
Arrangement Duration | 716 days | |
Aggregate Available | 32,440 | 32,440 |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 6 Months Ended |
Feb. 29, 2024 | |
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) | 6 Months Ended |
Feb. 29, 2024 | |
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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Trade accounts receivable sold (1) $ 1,818 $ 2,922 $ 3,854 $ 6,450 Cash proceeds received $ 1,809 $ 2,914 $ 3,834 $ 6,432 Pre-tax losses on sale of receivables (2) $ 9 $ 8 $ 20 $ 18 (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 Statements of Operations. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in millions): February 29, 2024 August 31, 2023 (1) Raw materials $ 4,445 $ 4,804 Work in process 232 217 Finished goods 198 243 Reserve for excess and obsolete inventory (54) (58) Inventories, net $ 4,821 $ 5,206 (1) Excludes $559 million of inventories, net classified as held for sale as of August 31, 2023. See Note 15 – “Business Acquisitions and Divestitures” for additional information. |
Notes Payable and Long-Term D_2
Notes Payable and Long-Term Debt (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Long-term Debt | Notes payable and long-term debt outstanding as of February 29, 2024 and August 31, 2023 are summarized below (in millions): Maturity Date February 29, 2024 August 31, 2023 3.950% Senior Notes Jan 12, 2028 498 497 3.600% Senior Notes Jan 15, 2030 497 496 3.000% Senior Notes Jan 15, 2031 593 593 1.700% Senior Notes Apr 15, 2026 498 498 4.250% Senior Notes May 15, 2027 496 495 5.450% Senior Notes Feb 1, 2029 296 296 Borrowings under credit facilities (1)(2) Jan 22, 2026 and Jan 22, 2028 — — Borrowings under loans Jul 31, 2026 — — Total notes payable and long-term debt 2,878 2,875 Less current installments of notes payable and long-term debt — — Notes payable and long-term debt, less current installments $ 2,878 $ 2,875 (1) On February 23, 2024, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (as amended, the “Credit Facility”). The Amendment, among other things, (i) instituted certain amendments to the sustainability-linked adjustments to the interest rates applicable to borrowings under the Company’s three-year revolving credit facility (the “Three-Year Revolving Credit Facility”) and the Company’s five-year revolving credit facility (the “Five-Year Revolving Credit Facility”) and (ii) extended the termination date of the Three-Year Revolving Credit Facility (with respect to the available commitments of the extending lenders) to January 22, 2026, and of the Five-Year Revolving Credit Facility (with respect to the available commitments of the extending lenders) to January 22, 2028, in each case subject to an additional one-year extension at the option of the Company. (2) As of February 29, 2024, the Company has $3.9 billion in available unused borrowing capacity under its revolving credit facilities. The Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $3.2 billion under its commercial paper program. |
Asset-Backed Securitization P_2
Asset-Backed Securitization Program (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule of Asset-backed Securitization Programs Amounts Recognized | In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Trade accounts receivable sold (1) $ 968 $ 998 $ 1,957 $ 2,064 Cash proceeds received (2) $ 955 $ 989 $ 1,934 $ 2,047 Pre-tax losses on sale of receivables (3) $ 13 $ 9 $ 23 $ 17 (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. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in millions): February 29, 2024 August 31, 2023 (2) Inventory deposits $ 1,699 $ 1,839 Contract liabilities (1) 976 886 Accrued compensation and employee benefits 573 743 Other accrued expenses 2,300 2,047 Accrued expenses $ 5,548 $ 5,515 (1) Revenue recognized during the three months and six months ended February 29, 2024 that was included in the contract liability balance as of August 31, 2023 was $114 million and $275 million, respectively. Revenue recognized during the three months and six months ended February 28, 2023 that was included in the contract liability balance as of August 31, 2022 was $115 million and $254 million, respectively. (2) Excludes $364 million of accrued expenses classified as held for sale as of August 31, 2023. See Note 15 – “Business Acquisitions and Divestitures” for additional information. |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Information about Net Periodic Benefit Cost | The following table provides information about the net periodic benefit cost for all plans for the three months and six months ended February 29, 2024 and February 28, 2023 (in millions): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Service cost (1) $ 5 $ 4 $ 10 $ 8 Interest cost (2) 3 3 6 6 Expected long-term return on plan assets (2) (5) (3) (9) (8) Recognized actuarial gain (2) (1) (2) (3) (4) Amortization of actuarial gain (2)(3) (1) (2) (2) (3) Amortization of prior service cost (2) 1 1 2 2 Net periodic benefit cost $ 2 $ 1 $ 4 $ 1 (1) Service cost is recognized in cost of revenue in the Condensed Consolidated Statements of Operations. (2) Components are recognized in other expense in the Condensed Consolidated Statements 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) | 6 Months Ended |
Feb. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Maturity Date and Aggregate Notional Amount Outstanding of Net Investment Hedges | The maturity dates and aggregate notional amount outstanding of net investment hedges are as follows (in millions): Maturity date February 29, 2024 August 31, 2023 September 2023 $ — $ 34 October 2023 — 96 January 2024 — 96 April 2024 103 68 July 2024 178 102 October 2024 96 — Total $ 377 $ 396 |
Schedule of Net Gains (Losses) from Forward Contracts Recorded in Consolidated Statements of Operations | The following table presents the net (losses) 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 (Loss) Gain on Derivatives Recognized in Net Income Amount of (Loss) Gain Recognized in Net Income on Derivatives Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Forward foreign exchange contracts (1) Cost of revenue $ (11) $ 30 $ 7 $ (16) (1) For the three months ended February 29, 2024, the Company recognized $3 million of foreign currency gains in cost of revenue, which are offset by the losses from the forward foreign exchange contracts. For the six months ended February 29, 2024, the Company recognized $35 million of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. For the three months ended February 28, 2023, the Company recognized $53 million of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. For the six months ended February 28, 2023, the Company recognized $4 million of foreign currency losses in cost of revenue, in addition to losses from the forward foreign exchange contracts. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Schedule of Changes in AOCI | The following table sets forth the changes in AOCI, net of tax, by component for the six months ended February 29, 2024 (in millions): Foreign Currency Net Investment Hedges Derivative Actuarial Gain (Loss) Prior Service (Cost) Credit Total Balance as of August 31, 2023 $ (59) $ (4) $ 14 $ 46 $ (14) $ (17) Other comprehensive loss before reclassifications (1) — (4) — — (5) Amounts reclassified from AOCI (2) (4) 14 (5) 2 5 Other comprehensive (loss) income (1) (3) (4) 10 (5) 2 — Balance as of February 29, 2024 $ (62) $ (8) $ 24 $ 41 $ (12) $ (17) (1) Amounts are net of tax, which are immaterial. |
Schedule 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 Six months ended Comprehensive Income Components Financial Statement Line Item February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Realized gains on foreign currency translation Gain from the divestiture of businesses $ (2) $ — $ (2) $ — Realized gains on net investment hedges Gain from the divestiture of businesses (4) — (4) — Realized (gains) losses on derivative instruments: (1) Foreign exchange contracts Cost of revenue (2) 1 15 44 Interest rate contracts Interest expense, net — — (1) — Realized (gains) losses on pension and postretirement plans: Actuarial gains (2) (2) (4) (5) (7) Prior service costs (2) 1 1 2 2 Total amounts reclassified from AOCI (3) $ (9) $ (2) $ 5 $ 39 (1) The Company expects to reclassify $2 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 cost. Refer to Note 7 – “Postretirement and Other Employee Benefits” for additional information. (3) Amounts are net of tax, which are immaterial for the three months and six months ended February 29, 2024 and February 28, 2023. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Restricted stock units $ 18 $ 16 $ 60 $ 54 Employee stock purchase plan 5 4 9 8 Total $ 23 $ 20 $ 69 $ 62 |
Schedule of Share-based Compensation Information | The following represents the stock-based compensation information as of the period indicated (in millions): February 29, 2024 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Common stock outstanding: Beginning balances 128,647,431 134,231,300 131,294,422 135,493,980 Shares issued under employee stock purchase plan 338,316 629,336 338,316 629,336 Vesting of restricted stock 2,741 148,718 1,769,516 2,010,396 Purchases of treasury stock under employee stock plans (795) (47,242) (526,823) (570,649) Treasury shares purchased (1)(2) (6,547,086) (1,723,744) (10,434,824) (4,324,695) Ending balances 122,440,607 133,238,368 122,440,607 133,238,368 (1) In July 2021, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2022 Share Repurchase Program”). As of February 28, 2023, 16.5 million shares had been repurchased for $1.0 billion and no authorization remained under the 2022 Share Repurchase Program. (2) In September 2022, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2023 Share Repurchase Program”). As of August 31, 2023, 2.7 million shares had been repurchased for $224 million, excluding excise tax. In September 2023, the Board of Directors amended and increased the 2023 Share Repurchase Program to allow for the repurchase of up to $2.5 billion of the Company’s common stock. As part of the amended 2023 Share Repurchase Program, the Company entered into an accelerated share repurchase (“ASR”) agreement with a bank in September 2023 to repurchase $500 million of the Company’s common stock. During the first quarter of 2024, the ASR transaction was completed, and 3.9 million shares were delivered under the ASR agreement at an average price of $128.61. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume weighted average price of the Company’s common stock during the term of the agreement. As of February 29, 2024, 10.4 million shares had been repurchased for $1.3 billion, excluding excise tax, and $1.2 billion remains available under the amended 2023 Share Repurchase Program. |
Concentration of Risk and Seg_2
Concentration of Risk and Segment Data (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Income | The following table sets forth operating segment information (in millions): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Segment income and reconciliation of income before income tax EMS $ 145 $ 205 $ 310 $ 403 DMS 193 186 527 449 Total segment income $ 338 $ 391 $ 837 $ 852 Reconciling items: Amortization of intangibles (9) (9) (15) (17) Stock-based compensation expense and related charges (23) (20) (69) (62) Restructuring, severance and related charges (70) — (197) (45) Gain from the divestiture of businesses 944 — 944 — Acquisition and divestiture related charges (46) — (61) — Other expense (net of periodic benefit cost) (25) (20) (48) (39) Interest expense, net (47) (55) (94) (103) Income before income tax $ 1,062 $ 287 $ 1,297 $ 586 |
Schedule of Revenues Disaggregated by Segment | The following table presents the Company’s revenues disaggregated by segment (in millions): Three months ended February 29, 2024 February 28, 2023 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 1,206 $ 773 $ 1,979 $ 1,267 $ 1,416 $ 2,683 Over time 2,125 2,663 4,788 2,784 2,667 5,451 Total $ 3,331 $ 3,436 $ 6,767 $ 4,051 $ 4,083 $ 8,134 Six months ended February 29, 2024 February 28, 2023 EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 2,301 $ 2,787 $ 5,088 $ 2,805 $ 3,696 $ 6,501 Over time 4,622 5,444 10,066 5,792 5,476 11,268 Total $ 6,923 $ 8,231 $ 15,154 $ 8,597 $ 9,172 $ 17,769 |
Schedule of Foreign Source Revenue | The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue: Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Foreign source revenue 82.5 % 84.0 % 84.7 % 85.0 % |
Restructuring, Severance and _2
Restructuring, Severance and Related Charges (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring, Severance and Related Charges and Liability Activity | Following is a summary of the Company’s restructuring, severance and related charges (in millions): Three months ended Six months ended February 29, 2024 (1) February 28, 2023 (2) February 29, 2024 (1) February 28, 2023 (2) Employee severance and benefit costs $ 28 $ (4) $ 123 $ 36 Lease costs 1 — 1 — Asset write-off costs 33 4 55 5 Other costs 8 — 18 4 Total restructuring, severance and related charges (3) $ 70 $ — $ 197 $ 45 (1) Primarily relates to the 2024 Restructuring Plan. (2) Primarily relates to headcount reduction to further optimize the Company’s business activities. (3) Includes $11 million and $0 million recorded in the EMS segment, $35 million and $0 million recorded in the DMS segment and $24 million and $0 million of non-allocated charges for the three months ended February 29, 2024 and February 28, 2023, respectively. Includes $40 million and $4 million recorded in the EMS segment, $114 million and $33 million recorded in the DMS segment and $43 million and $8 million of non-allocated charges for the six months ended February 29, 2024 and February 28, 2023, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs. The table below summarizes the Company’s liability activity, primarily associated with the 2024 Restructuring Plan (in millions): Employee Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2023 $ — $ — $ — $ — $ — Restructuring related charges 123 1 55 18 197 Asset write-off charge and other non-cash activity — — (55) (5) (60) Cash payments (57) (1) — (4) (62) Balance as of February 29, 2024 $ 66 $ — $ — $ 9 $ 75 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule 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 Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective income tax rate 12.7 % 27.6 % 13.6 % 26.6 % |
Earnings Per Share and Divide_2
Earnings Per Share and Dividends (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule 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): Three months ended Six months ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Restricted stock units 293.5 363.7 309.5 363.7 |
Schedule of Cash Dividends Declared by the Company to Common Stockholders | The following table sets forth cash dividends declared by the Company to common stockholders during the six months ended February 29, 2024 and February 28, 2023 (in millions, except for per share data): Dividend Dividend Total of Cash Date of Record for Dividend Cash Fiscal Year 2024: October 19, 2023 $ 0.08 $ 11 November 15, 2023 December 4, 2023 January 25, 2024 $ 0.08 $ 10 February 15, 2024 March 4, 2024 Fiscal Year 2023: October 20, 2022 $ 0.08 $ 12 November 15, 2022 December 2, 2022 January 26, 2023 $ 0.08 $ 10 February 15, 2023 March 2, 2023 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
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 February 29, 2024 August 31, 2023 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 572 $ — Prepaid expenses and other current assets: Short-term investments Level 1 26 25 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 8) Level 2 (2) 9 4 Derivatives not designated as hedging instruments (Note 8) Level 2 (2) 12 20 Net investment hedges: Derivatives designated as hedging instruments (Note 8) Level 2 (2) 7 9 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 8) Level 2 (2) $ 7 $ 17 Derivatives not designated as hedging instruments (Note 8) Level 2 (2) 8 64 Net investment hedges: Derivatives designated as hedging instruments (Note 8) Level 2 (2) 1 1 (1) Consist of time deposits that are readily convertible to cash with original maturities of 90 days or less. (2) The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges 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. |
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 (in millions): February 29, 2024 August 31, 2023 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 4) 3.950% Senior Notes Level 2 (1) $ 498 $ 473 $ 497 $ 468 3.600% Senior Notes Level 2 (1) $ 497 $ 451 $ 496 $ 448 3.000% Senior Notes Level 2 (1) $ 593 $ 512 $ 593 $ 502 1.700% Senior Notes Level 2 (1) $ 498 $ 463 $ 498 $ 452 4.250% Senior Notes Level 2 (1) $ 496 $ 483 $ 495 $ 478 5.450% Senior Notes Level 2 (1) $ 296 $ 300 $ 296 $ 297 (1) |
Trade Accounts Receivable Sal_3
Trade Accounts Receivable Sale Programs - Additional Information (Details) | 6 Months Ended | ||||
Feb. 29, 2024 USD ($) program | Apr. 05, 2024 USD ($) | Feb. 29, 2024 CHF (SFr) | Feb. 29, 2024 INR (₨) | Feb. 29, 2024 CNY (¥) | |
USD | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Maximum amount | $ | $ 2,100,000,000 | ||||
Number of programs | 9 | ||||
CHF | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Maximum amount | SFr | SFr 100,000,000 | ||||
Number of programs | 1 | ||||
INR | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Maximum amount | ₨ | ₨ 8,100,000,000 | ||||
Number of programs | 1 | ||||
CNY | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Maximum amount | ¥ | ¥ 1,400,000,000 | ||||
Number of programs | 1 | ||||
Terminated | Subsequent event | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Maximum amount | $ | $ 700,000,000 | ||||
New | Subsequent event | |||||
Trade Accounts Receivable Securitization and Sale Program [Line Items] | |||||
Maximum amount | $ | $ 200,000,000 |
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 | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 1,818 | $ 2,922 | $ 3,854 | $ 6,450 |
Cash proceeds received | 1,809 | 2,914 | 3,834 | 6,432 |
Pre-tax losses on sale of receivables | $ 9 | $ 8 | $ 20 | $ 18 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,445 | $ 4,804 |
Work in process | 232 | 217 |
Finished goods | 198 | 243 |
Reserve for excess and obsolete inventory | (54) | (58) |
Inventories, net | $ 4,821 | 5,206 |
Product Manufacturing Business | Held for sale | ||
Inventory [Line Items] | ||
Inventories, net classified as held for sale | $ 559 |
Notes Payable and Long-Term D_3
Notes Payable and Long-Term Debt - Schedule of Notes Payable and Long-term Debt (Details) - USD ($) | Feb. 23, 2024 | Feb. 29, 2024 | Aug. 31, 2023 |
Debt Instrument [Line Items] | |||
Total notes payable and long-term debt | $ 2,878,000,000 | $ 2,875,000,000 | |
Less current installments of notes payable and long-term debt | 0 | 0 | |
Notes payable and long-term debt, less current installments | $ 2,878,000,000 | 2,875,000,000 | |
Senior Notes | 3.950% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.95% | ||
Total notes payable and long-term debt | $ 498,000,000 | 497,000,000 | |
Senior Notes | 3.600% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.60% | ||
Total notes payable and long-term debt | $ 497,000,000 | 496,000,000 | |
Senior Notes | 3.000% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3% | ||
Total notes payable and long-term debt | $ 593,000,000 | 593,000,000 | |
Senior Notes | 1.700% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.70% | ||
Total notes payable and long-term debt | $ 498,000,000 | 498,000,000 | |
Senior Notes | 4.250% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.25% | ||
Total notes payable and long-term debt | $ 496,000,000 | 495,000,000 | |
Senior Notes | 5.450% Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.45% | ||
Total notes payable and long-term debt | $ 296,000,000 | 296,000,000 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total notes payable and long-term debt | 0 | 0 | |
Available unused borrowing capacity | 3,900,000,000 | ||
Line of Credit | Revolving Credit Facility | Credit Facility Due | |||
Debt Instrument [Line Items] | |||
Debt term | 1 year | ||
Line of Credit | Revolving Credit Facility | Credit Facility Due January 2026 | |||
Debt Instrument [Line Items] | |||
Debt term | 3 years | ||
Line of Credit | Revolving Credit Facility | Credit Facility Due January 2028 | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Line of Credit | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total notes payable and long-term debt | 0 | $ 0 | |
Line of Credit | Commercial Paper | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 3,200,000,000 |
Notes Payable and Long-Term D_4
Notes Payable and Long-Term Debt - Additional Information (Details) - Senior Notes | Feb. 29, 2024 |
3.950% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.95% |
3.600% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.60% |
3.000% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 3% |
1.700% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 1.70% |
4.250% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.25% |
5.450% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 5.45% |
Asset-Backed Securitization P_3
Asset-Backed Securitization Program - Additional Information (Details) - USD ($) | Feb. 29, 2024 | Feb. 20, 2024 | Feb. 19, 2024 |
Transfers and Servicing [Abstract] | |||
Maximum amount of net cash proceeds | $ 700,000,000 | $ 600,000,000 | |
Available liquidity under its asset-backed securitization programs (up to) | $ 15,000,000 |
Asset-Backed Securitization P_4
Asset-Backed Securitization Program - Securitization Activity (Details) - Asset-Backed Securitization Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Trade Accounts Receivable Securitization and Sale Program [Line Items] | ||||
Trade accounts receivable sold | $ 968 | $ 998 | $ 1,957 | $ 2,064 |
Cash proceeds received | 955 | 989 | 1,934 | 2,047 |
Pre-tax losses on sale of receivables | $ 13 | $ 9 | $ 23 | $ 17 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Aug. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |||||
Inventory deposits | $ 1,699 | $ 1,699 | $ 1,839 | ||
Contract liabilities | 976 | 976 | 886 | ||
Accrued compensation and employee benefits | 573 | 573 | 743 | ||
Other accrued expenses | 2,300 | 2,300 | 2,047 | ||
Accrued expenses | 5,548 | 5,548 | 5,515 | ||
Revenue recognized during period that was included in contract liability balance | $ 114 | $ 115 | $ 275 | $ 254 | |
Held for sale | Product Manufacturing Business | |||||
Supplier Finance Program [Line Items] | |||||
Accrued expenses classified as held for sale | $ 364 |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 5 | $ 4 | $ 10 | $ 8 |
Interest cost | 3 | 3 | 6 | 6 |
Expected long-term return on plan assets | (5) | (3) | (9) | (8) |
Recognized actuarial gain | (1) | (2) | (3) | (4) |
Amortization of actuarial gains | (1) | (2) | (2) | (3) |
Amortization of prior service cost | 1 | 1 | 2 | 2 |
Net periodic benefit cost | $ 2 | $ 1 | $ 4 | $ 1 |
Percentage of gain (loss) corridor | 10% | 10% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Additional Information (Details) - Forward Contracts - Forward foreign exchange contracts - Cash flow hedging - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
Designated as hedging instruments | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 167 | $ 491 |
Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 2,400 | $ 4,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Schedule of Maturity Date and Aggregate Notional Amount Outstanding of Net Investment Hedges (Details) - Net investment hedges - Forward Contracts - Designated as hedging instruments - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
September 2023 | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 0 | $ 34 |
October 2023 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 0 | 96 |
January 2024 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 0 | 96 |
April 2024 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 103 | 68 |
July 2024 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 178 | 102 |
October 2024 | ||
Derivative [Line Items] | ||
Aggregate notional amount | 96 | 0 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 377 | $ 396 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Fair Value of Derivative Instruments Recorded on Consolidated Statements of Operations (Details) - Forward foreign exchange contracts - Cost of revenue - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Net Income on Derivatives | $ (11) | $ 30 | $ 7 | $ (16) |
Foreign currency gains (losses) | $ 3 | $ (53) | $ (35) | $ (4) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Change in AOCI, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 2,536 | $ 2,530 | $ 2,867 | $ 2,452 |
Other comprehensive loss before reclassifications | (5) | |||
Amounts reclassified from AOCI | 5 | |||
Total other comprehensive (loss) income | (11) | 31 | 0 | 51 |
Ending Balance | 2,658 | 2,674 | 2,658 | 2,674 |
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6) | (22) | (17) | (42) |
Total other comprehensive (loss) income | (11) | 31 | 51 | |
Ending Balance | (17) | $ 9 | (17) | $ 9 |
Foreign Currency Translation Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (59) | |||
Other comprehensive loss before reclassifications | (1) | |||
Amounts reclassified from AOCI | (2) | |||
Total other comprehensive (loss) income | (3) | |||
Ending Balance | (62) | (62) | ||
Net Investment Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (4) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from AOCI | (4) | |||
Total other comprehensive (loss) income | (4) | |||
Ending Balance | (8) | (8) | ||
Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 14 | |||
Other comprehensive loss before reclassifications | (4) | |||
Amounts reclassified from AOCI | 14 | |||
Total other comprehensive (loss) income | 10 | |||
Ending Balance | 24 | 24 | ||
Actuarial Gain (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 46 | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from AOCI | (5) | |||
Total other comprehensive (loss) income | (5) | |||
Ending Balance | 41 | 41 | ||
Prior Service (Cost) Credit | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (14) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from AOCI | 2 | |||
Total other comprehensive (loss) income | 2 | |||
Ending Balance | $ (12) | $ (12) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gain from the divestiture of businesses | $ (944) | $ 0 | $ (944) | $ 0 |
Cost of revenue | 6,137 | 7,473 | 13,749 | 16,365 |
Other expense (income) | 22 | 17 | 43 | 32 |
Total amounts reclassified from AOCI | (927) | (207) | (1,121) | (430) |
Reclassified in next 12 months (less than) | 2 | |||
Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total amounts reclassified from AOCI | (9) | (2) | 5 | 39 |
Reclassification out of AOCI | Foreign Currency Translation Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gain from the divestiture of businesses | (2) | 0 | (2) | 0 |
Reclassification out of AOCI | Net Investment Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Gain from the divestiture of businesses | (4) | 0 | (4) | 0 |
Reclassification out of AOCI | Realized (gains) losses on derivative instruments | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | (2) | 1 | 15 | 44 |
Reclassification out of AOCI | Realized (gains) losses on derivative instruments | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | 0 | 0 | (1) | 0 |
Reclassification out of AOCI | Actuarial gains | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other expense (income) | (2) | (4) | (5) | (7) |
Reclassification out of AOCI | Prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other expense (income) | $ 1 | $ 1 | $ 2 | $ 2 |
Stockholders' Equity - Recogniz
Stockholders' Equity - Recognized Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | $ 23 | $ 20 | $ 69 | $ 62 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | 18 | 16 | 60 | 54 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | $ 5 | $ 4 | $ 9 | $ 8 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - shares | 6 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
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) | 400,000 | 900,000 |
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) | 100,000 | 200,000 |
Performance-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 150% | |
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) | 100,000 | 200,000 |
Market-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 200% | |
2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available to be issued (in shares) | 7,813,996 |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation Information (Details) $ in Millions | 6 Months Ended |
Feb. 29, 2024 USD ($) | |
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 S
Stockholders' Equity - Common Stock Outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 20 Months Ended | ||||||
Feb. 29, 2024 | Nov. 30, 2023 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Aug. 31, 2023 | Feb. 28, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Jul. 31, 2021 | |
Common stock outstanding: | ||||||||||
Common stock outstanding, beginning balances (in shares) | 131,294,422 | 131,294,422 | ||||||||
Common stock outstanding, ending balance (in shares) | 122,440,607 | 122,440,607 | 131,294,422 | |||||||
2022 Share Repurchase Program | ||||||||||
Common stock outstanding: | ||||||||||
Share repurchase program, amount authorized | $ 1,000,000,000 | |||||||||
Number of shares repurchased (in shares) | 16,500,000 | |||||||||
Value of shares repurchased | $ 1,000,000,000 | |||||||||
Share repurchase program, remaining amount available | $ 0 | $ 0 | $ 0 | |||||||
2023 Share Repurchase Program | ||||||||||
Common stock outstanding: | ||||||||||
Share repurchase program, amount authorized | $ 2,500,000,000 | $ 1,000,000,000 | ||||||||
Number of shares repurchased (in shares) | 10,400,000 | 2,700,000 | ||||||||
Value of shares repurchased | $ 1,300,000,000 | $ 224,000,000 | ||||||||
Share repurchase program, remaining amount available | $ 1,200,000,000 | $ 1,200,000,000 | ||||||||
Accelerated Share Repurchase Program | ||||||||||
Common stock outstanding: | ||||||||||
Share repurchase program, amount authorized | $ 500,000,000 | |||||||||
Number of shares repurchased (in shares) | 3,900,000 | |||||||||
Average price (in usd per share) | $ 128.61 | |||||||||
Common stock: | ||||||||||
Common stock outstanding: | ||||||||||
Common stock outstanding, beginning balances (in shares) | 128,647,431 | 131,294,422 | 134,231,300 | 131,294,422 | 135,493,980 | 135,493,980 | ||||
Shares issued under employee stock purchase plan (in shares) | 338,316 | 629,336 | 338,316 | 629,336 | ||||||
Vesting of restricted stock (in shares) | 2,741 | 148,718 | 1,769,516 | 2,010,396 | ||||||
Purchases of treasury stock under employee stock plans (in shares) | (795) | (47,242) | (526,823) | (570,649) | ||||||
Treasury shares purchased (in shares) | (6,547,086) | (1,723,744) | (10,434,824) | (4,324,695) | ||||||
Common stock outstanding, ending balance (in shares) | 122,440,607 | 128,647,431 | 133,238,368 | 122,440,607 | 133,238,368 | 131,294,422 | 133,238,368 |
Concentration of Risk and Seg_3
Concentration of Risk and Segment Data - Additional Information (Details) | 6 Months Ended |
Feb. 29, 2024 country | |
Revenue, Major Customer [Line Items] | |
Number of operating countries (more than) | 30 |
Five Largest Customers | Net revenue | Customer concentration | |
Revenue, Major Customer [Line Items] | |
Concentration risk | 39% |
Eighty Two Customers | Net revenue | Customer concentration | |
Revenue, Major Customer [Line Items] | |
Concentration risk | 90% |
Concentration of Risk and Seg_4
Concentration of Risk and Segment Data - Segment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | $ 1,062 | $ 287 | $ 1,297 | $ 586 |
Reconciling items: | ||||
Amortization of intangibles | (9) | (9) | (15) | (17) |
Stock-based compensation expense and related charges | (23) | (20) | (69) | (62) |
Restructuring, severance and related charges | (70) | 0 | (197) | (45) |
Gain from the divestiture of businesses | 944 | 0 | 944 | 0 |
Acquisition and divestiture related charges | (46) | 0 | (61) | 0 |
Interest expense, net | (47) | (55) | (94) | (103) |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | 338 | 391 | 837 | 852 |
Operating Segments | EMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | 145 | 205 | 310 | 403 |
Reconciling items: | ||||
Restructuring, severance and related charges | (11) | 0 | (40) | (4) |
Operating Segments | DMS | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income | 193 | 186 | 527 | 449 |
Reconciling items: | ||||
Restructuring, severance and related charges | (35) | 0 | (114) | (33) |
Segment Reconciling Items | ||||
Reconciling items: | ||||
Amortization of intangibles | (9) | (9) | (15) | (17) |
Stock-based compensation expense and related charges | (23) | (20) | (69) | (62) |
Restructuring, severance and related charges | (70) | 0 | (197) | (45) |
Gain from the divestiture of businesses | 944 | 0 | 944 | 0 |
Acquisition and divestiture related charges | (46) | 0 | (61) | 0 |
Other expense (net of periodic benefit cost) | (25) | (20) | (48) | (39) |
Interest expense, net | $ (47) | $ (55) | $ (94) | $ (103) |
Concentration of Risk and Seg_5
Concentration of Risk and Segment Data - Revenues Disaggregated by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 6,767 | $ 8,134 | $ 15,154 | $ 17,769 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,979 | 2,683 | 5,088 | 6,501 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 4,788 | 5,451 | 10,066 | 11,268 |
EMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 3,331 | 4,051 | 6,923 | 8,597 |
EMS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,206 | 1,267 | 2,301 | 2,805 |
EMS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 2,125 | 2,784 | 4,622 | 5,792 |
DMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 3,436 | 4,083 | 8,231 | 9,172 |
DMS | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 773 | 1,416 | 2,787 | 3,696 |
DMS | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 2,663 | $ 2,667 | $ 5,444 | $ 5,476 |
Concentration of Risk and Seg_6
Concentration of Risk and Segment Data - Foreign Source Revenue (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Foreign source revenue | Net revenue | Foreign source revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 82.50% | 84% | 84.70% | 85% |
Restructuring, Severance and _3
Restructuring, Severance and Related Charges - Schedule of Restructuring, Severance and Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | $ 70 | $ 0 | $ 197 | $ 45 |
Operating Segments | EMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 11 | 0 | 40 | 4 |
Operating Segments | DMS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 35 | 0 | 114 | 33 |
Non-allocated charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 24 | 0 | 43 | 8 |
Employee severance and benefit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 28 | (4) | 123 | 36 |
Asset write-off costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | 33 | 4 | 55 | 5 |
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, severance and related charges | $ 8 | $ 0 | $ 18 | $ 4 |
Restructuring, Severance and _4
Restructuring, Severance and Related Charges - Additional Information (Details) - 2024 Restructuring Plan $ in Millions | Feb. 29, 2024 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | $ 300 |
Employee severance and benefit costs | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | 150 |
Employee severance and benefit costs | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | 180 |
Asset write-off costs | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | 80 |
Asset write-off costs | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | 120 |
Contract Termination | Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | 30 |
Contract Termination | Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Total pre-tax restructuring and other related costs expected to be recognized | $ 40 |
Restructuring, Severance and _5
Restructuring, Severance and Related Charges - Liability Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring related charges | $ 70 | $ 0 | $ 197 | $ 45 |
Employee Severance and Benefit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring related charges | 28 | (4) | 123 | 36 |
Lease Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring related charges | 1 | 0 | 1 | 0 |
Asset Write-off Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring related charges | 33 | 4 | 55 | 5 |
Other Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring related charges | 8 | $ 0 | 18 | $ 4 |
2024 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Restructuring related charges | 197 | |||
Asset write-off charge and other non-cash activity | (60) | |||
Cash payments | (62) | |||
Ending balance | 75 | 75 | ||
2024 Restructuring Plan | Employee Severance and Benefit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Restructuring related charges | 123 | |||
Asset write-off charge and other non-cash activity | 0 | |||
Cash payments | (57) | |||
Ending balance | 66 | 66 | ||
2024 Restructuring Plan | Lease Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Restructuring related charges | 1 | |||
Asset write-off charge and other non-cash activity | 0 | |||
Cash payments | (1) | |||
Ending balance | 0 | 0 | ||
2024 Restructuring Plan | Asset Write-off Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Restructuring related charges | 55 | |||
Asset write-off charge and other non-cash activity | (55) | |||
Cash payments | 0 | |||
Ending balance | 0 | 0 | ||
2024 Restructuring Plan | Other Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Restructuring related charges | 18 | |||
Asset write-off charge and other non-cash activity | (5) | |||
Cash payments | (4) | |||
Ending balance | $ 9 | $ 9 |
Income Taxes - Schedule of U.S.
Income Taxes - Schedule of U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 21% | 21% | 21% | 21% |
Effective income tax rate | 12.70% | 27.60% | 13.60% | 26.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Feb. 29, 2024 | Feb. 29, 2024 | |
Income Tax Disclosure [Abstract] | ||
Gain on divestiture of the mobility business | $ 58 | $ 58 |
Earnings Per Share and Divide_3
Earnings Per Share and Dividends - Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
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) | 293,500 | 363,700 | 309,500 | 363,700 |
Earnings Per Share and Divide_4
Earnings Per Share and Dividends - Cash Dividends Declared by the Company to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 25, 2024 | Oct. 19, 2023 | Jan. 26, 2023 | Oct. 20, 2022 |
Earnings Per Share [Abstract] | ||||
Dividends per Share (in usd per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 |
Total of Cash Dividends Declared | $ 10 | $ 11 | $ 10 | $ 12 |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Dec. 29, 2023 | Nov. 01, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Sep. 26, 2023 | Aug. 31, 2023 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 656 | $ 656 | $ 621 | |||||
Gain from the divestiture of businesses | 944 | $ 0 | 944 | $ 0 | ||||
Trade Names | ||||||||
Business Acquisition [Line Items] | ||||||||
Indefinite-lived intangible asset | $ 51 | 51 | ||||||
Estimated useful life | 2 years | |||||||
Held for sale | Product Manufacturing Business | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration for the sale of a business | $ 2,200 | |||||||
Derecognized net assets | $ 1,200 | |||||||
Gain from the divestiture of businesses | $ 944 | |||||||
Transaction, exit and disposal costs | $ 46 | $ 61 | ||||||
ProcureAbility Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Amount of cash paid for business acquisitions | $ 60 | |||||||
Assets acquired | 87 | |||||||
Intangible assets | 40 | |||||||
Goodwill | 38 | |||||||
Liabilities assumed | $ 26 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 572 | $ 0 |
Short-term investments | 26 | 25 |
Level 2 | Designated as hedging instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 9 | 4 |
Derivative liability | 7 | 17 |
Level 2 | Designated as hedging instruments | Net investment hedges | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 7 | 9 |
Derivative liability | 1 | 1 |
Level 2 | Not designated as hedging instruments | Foreign exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 12 | 20 |
Derivative liability | $ 8 | $ 64 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Aug. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 2,878 | $ 2,875 |
Senior Notes | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3.95% | |
Carrying Amount | $ 498 | 497 |
Senior Notes | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3.60% | |
Carrying Amount | $ 497 | 496 |
Senior Notes | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3% | |
Carrying Amount | $ 593 | 593 |
Senior Notes | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 1.70% | |
Carrying Amount | $ 498 | 498 |
Senior Notes | 4.250% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 4.25% | |
Carrying Amount | $ 496 | 495 |
Senior Notes | 5.450% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 5.45% | |
Carrying Amount | $ 296 | 296 |
Senior Notes | Carrying Amount | Level 2 | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 498 | 497 |
Senior Notes | Carrying Amount | Level 2 | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 497 | 496 |
Senior Notes | Carrying Amount | Level 2 | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 593 | 593 |
Senior Notes | Carrying Amount | Level 2 | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 498 | 498 |
Senior Notes | Carrying Amount | Level 2 | 4.250% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 496 | 495 |
Senior Notes | Carrying Amount | Level 2 | 5.450% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 296 | 296 |
Senior Notes | Fair Value | Level 2 | 3.950% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 473 | 468 |
Senior Notes | Fair Value | Level 2 | 3.600% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 451 | 448 |
Senior Notes | Fair Value | Level 2 | 3.000% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 512 | 502 |
Senior Notes | Fair Value | Level 2 | 1.700% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 463 | 452 |
Senior Notes | Fair Value | Level 2 | 4.250% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 483 | 478 |
Senior Notes | Fair Value | Level 2 | 5.450% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 300 | $ 297 |