XML 46 R31.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Aug. 31, 2017
Income Taxes [Abstract] |
Income (Loss) from Continuing Operations Before Income Taxes and Noncontrolling Interests |
5. Income Taxes
Provision for Income Taxes
|  | Income (loss) from continuing operations before income tax expense is summarized below (in thousands):
|  |  |  |  | Fiscal Year Ended August 31, |
|  |  |  |  | 2017 |  | 2016 |  | 2015 |
|  |  |  | U.S.(1) | $ | (373,690) |  | $ | (317,427) |  | $ | (295,521) |
|  |  |  | Non-U.S.(1) |  | 629,923 |  |  | 704,472 |  |  | 727,167 |
|  |  |  |  | $ | 256,233 |  | $ | 387,045 |  | $ | 431,646 |
| (1) | The U.S. and non-U.S. components of income (loss) from continuing operations before income tax expense include
|  | the elimination of intercompany foreign dividends paid to the U.S. |
Income Tax Expense (Benefit) |
| Income tax expense (benefit) is summarized below (in thousands):
|  |  | Fiscal Year Ended August 31, |  | Current |  | Deferred |  | Total |
|  |  | 2017: | U.S. – Federal |  | $ | 2,436 |  | $ | 253 |  | $ | 2,689 |
|  |  |  | U.S. – State |  |  | 12 |  |  | 30 |  |  | 42 |
|  |  |  | Non-U.S. |  |  | 188,872 |  |  | (62,537) |  |  | 126,335 |
|  |  |  |  |  | $ | 191,320 |  | $ | (62,254) |  | $ | 129,066 |
|  |  | 2016: | U.S. – Federal |  | $ | (649) |  | $ | 73 |  | $ | (576) |
|  |  |  | U.S. – State |  |  | (166) |  |  | 9 |  |  | (157) |
|  |  |  | Non-U.S. |  |  | 157,069 |  |  | (24,187) |  |  | 132,882 |
|  |  |  |  |  | $ | 156,254 |  | $ | (24,105) |  | $ | 132,149 |
|  |  | 2015: | U.S. – Federal |  | $ | 1,169 |  | $ | (1,653) |  | $ | (484) |
|  |  |  | U.S. – State |  |  | 164 |  |  | (300) |  |  | (136) |
|  |  |  | Non-U.S. |  |  | 147,199 |  |  | (9,118) |  |  | 138,081 |
|  |  |  |  |  | $ | 148,532 |  | $ | (11,071) |  | $ | 137,461 |
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense |
| Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to the actual income tax
expense are summarized below (in thousands):
|  |  |  | Fiscal Year Ended August 31, |
|  |  |  | 2017 |  | 2016 |  | 2015 |
|  |  | Tax at U.S. federal statutory income tax rate (35%) | $ | 89,682 |  | $ | 135,470 |  | $ | 151,076 |
|  |  | State income taxes, net of federal tax benefit |  | (8,474) |  |  | (5,121) |  |  | (4,474) |
|  |  | Impact of foreign tax rates |  | (109,466) |  |  | (144,521) |  |  | (157,827) |
|  |  | Permanent impact of non-deductible cost |  | 7,336 |  |  | 3,408 |  |  | 8,951 |
|  |  | Income tax credits |  | (16,254) |  |  | (5,040) |  |  | (12,773) |
|  |  | Changes in tax rates on deferred tax assets and liabilities |  | 688 |  |  | 182 |  |  | (1,206) |
|  |  | Valuation allowance |  | 37,934 |  |  | 11,770 |  |  | 72,604 |
|  |  | Non-deductible equity compensation |  | 11,531 |  |  | 18,350 |  |  | 11,600 |
|  |  | Impact of intercompany charges and dividends |  | 98,052 |  |  | 94,596 |  |  | 49,843 |
|  |  | Other, net |  | 18,037 |  |  | 23,055 |  |  | 19,667 |
|  |  | Total income tax expense | $ | 129,066 |  | $ | 132,149 |  | $ | 137,461 |
Deferred Tax Assets and Liabilities |
Deferred Tax Assets and Liabilities
| The significant components of the deferred tax assets and liabilities are summarized below (in thousands):
|  |  |  | Fiscal Year Ended August 31, |
|  |  |  | 2017 |  | 2016 |
| Deferred tax assets: |  |  |  |  |  |
|  | Net operating loss carry forward | $ | 268,853 |  | $ | 319,685 |
|  | Receivables |  | 7,497 |  |  | 8,643 |
|  | Inventories |  | 11,618 |  |  | 6,970 |
|  | Compensated absences |  | 10,981 |  |  | 9,080 |
|  | Accrued expenses |  | 93,413 |  |  | 75,749 |
|  | Property, plant and equipment, principally due to differences in |  |  |  |  |  |
|  |  | depreciation and amortization |  | 81,954 |  |  | 52,088 |
|  | U.S. federal and state tax credits |  | 57,122 |  |  | 58,725 |
|  | Foreign jurisdiction tax credits |  | 24,641 |  |  | 14,464 |
|  | Equity compensation – U.S. |  | 16,460 |  |  | 17,641 |
|  | Equity compensation – Non-U.S. |  | 2,700 |  |  | 3,873 |
|  | Cash flow hedges |  | ― |  |  | 2,055 |
|  | Other |  | 14,573 |  |  | 18,767 |
|  | Total deferred tax assets before valuation allowances |  | 589,812 |  |  | 587,740 |
|  | Less valuation allowances |  | (285,559) |  |  | (344,828) |
|  | Net deferred tax assets | $ | 304,253 |  | $ | 242,912 |
| Deferred tax liabilities: |  |  |  |  |  |
|  | Unremitted earnings of non-U.S. subsidiaries |  | 86,202 |  |  | 88,445 |
|  | Intangible assets |  | 48,229 |  |  | 54,130 |
|  | Cash flow hedges |  | 8,564 |  |  | ― |
|  | Other |  | 4,863 |  |  | 5,768 |
|  | Total deferred tax liabilities | $ | 147,858 |  | $ | 148,343 |
| Net deferred tax assets | $ | 156,395 |  | $ | 94,569 |
Reconciliations of Unrecognized Tax Benefits |
Unrecognized Tax Benefits
| Reconciliations of the unrecognized tax benefits are summarized below (in thousands):
|  |  |  | Fiscal Year Ended August 31, |
|  |  |  | 2017 |  | 2016 |  | 2015 |
|  | Beginning balance | $ | 149,898 |  | $ | 154,648 |  | $ | 229,684 |
|  | Additions for tax positions of prior years |  | 2,155 |  |  | 7,974 |  |  | 4,189 |
|  | Reductions for tax positions of prior years |  | (12,233) |  |  | (20,045) |  |  | (7,919) |
|  | Additions for tax positions related to current year |  | 77,807 |  |  | 25,892 |  |  | 21,541 |
|  | Adjustments for tax positions related to acquired entities |  | ― |  |  | ― |  |  | 1,687 |
|  | Cash settlements |  | (2,298) |  |  | (6,553) |  |  | (11,806) |
|  | Reductions from lapses in statutes of limitations |  | (10,446) |  |  | (7,099) |  |  | (1,843) |
|  | Reductions from settlements with taxing authorities |  | (6,061) |  |  | (1,787) |  |  | (72,812) |
|  | Foreign exchange rate adjustment |  | 2,533 |  |  | (3,132) |  |  | (8,073) |
|  | Ending balance | $ | 201,355 |  | $ | 149,898 |  | $ | 154,648 |
|  | Unrecognized tax benefits that would affect the |  |  |  |  |  |  |  |  |
|  |  | effective tax rate (if recognized) | $ | 75,223 |  | $ | 72,152 |  | $ | 80,094 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=75116239&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration