XML 62 R31.htm IDEA: XBRL DOCUMENT
v3.19.3

Income Taxes (Tables) | 12 Months Ended
--- | ---
Aug. 31, 2019
Income Tax Disclosure [Abstract] |
Income (Loss) Before Income Tax Expense | Income (loss) before income tax expense is summarized below (in thousands):
| Fiscal Year Ended August 31,
| 2019 |  | 2018 |  | 2017
Domestic(1) | $ | (415,707 | ) |  | $ | (426,897 | ) |  | $ | (373,690 | )
Foreign(1) | 866,411 |  |  | 800,298 |  |  | 629,923 |
| $ | 450,704 |  |  | $ | 373,401 |  |  | $ | 256,233 |
(1) | Includes 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,
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Domestic - federal | $ | (23,675 | ) |  | $ | 69,080 |  |  | $ | 2,436 |
Domestic - state | 1,383 |  |  | 134 |  |  | 12 |
Foreign | 175,993 |  |  | 178,790 |  |  | 188,872 |
Total current | 153,701 |  |  | 248,004 |  |  | 191,320 |
Deferred: |  |  |  |  |
Domestic - federal | (8,000 | ) |  | (24,342 | ) |  | 253 |
Domestic - state | (2,202 | ) |  | 93 |  |  | 30 |
Foreign | 17,731 |  |  | 62,105 |  |  | (62,537 | )
Total deferred | 7,529 |  |  | 37,856 |  |  | (62,254 | )
Total income tax expense | $ | 161,230 |  |  | $ | 285,860 |  |  | $ | 129,066 |
Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate Compared to Actual Income Tax Expense | Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is summarized below:
| Fiscal Year Ended August 31,
| 2019 |  | 2018 |  | 2017
U.S. federal statutory income tax rate | 21.0 | % |  | 25.7 | % |  | 35.0 | %
State income taxes, net of federal tax benefit | (1.7 | ) |  | (1.5 | ) |  | (3.3 | )
Impact of foreign tax rates(1)(2) | (9.9 | ) |  | (19.3 | ) |  | (42.7 | )
Permanent impact of non-deductible cost | 1.8 |  |  | 5.9 |  |  | 2.9 |
Income tax credits(1) | (3.1 | ) |  | (2.8 | ) |  | (6.3 | )
Changes in tax rates on deferred tax assets and liabilities(3) | 0.2 |  |  | 4.0 |  |  | 0.3 |
One-time transition tax related to the Tax Act(4) | (0.5 | ) |  | 62.2 |  |  | — |
Indefinite reinvestment assertion impact(4) | 0.9 |  |  | 5.8 |  |  | — |
Valuation allowance(5) | 1.3 |  |  | (16.4 | ) |  | 14.8 |
Non-deductible equity compensation | 1.4 |  |  | 5.5 |  |  | 4.5 |
Impact of intercompany charges and dividends(6) | 10.4 |  |  | 7.3 |  |  | 38.3 |
Reclassification of stranded tax effects in AOCI | — |  |  | (4.0 | ) |  | — |
Global Intangible Low-Taxed Income(7) | 10.4 |  |  | — |  |  | — |
Other, net | 3.6 |  |  | 4.2 |  |  | 6.9 |
Effective income tax rate | 35.8 | % |  | 76.6 | % |  | 50.4 | %
(1) | The Company has been granted tax incentives for various subsidiaries in Brazil, China, Malaysia, Poland, Singapore and Vietnam, which expire at various dates through fiscal year 2031 and are subject to certain conditions with which the Company expects to comply. These tax incentives resulted in a tax benefit of approximately $67.3 million ($0.43 per basic share), $52.1 million ($0.30 per basic share) and $38.6 million ($0.22 per basic share) during the fiscal years ended August 31, 2019, 2018 and 2017, respectively.
(2) | For the fiscal years ended August 31, 2019 and 2018, the decrease in the impact of foreign tax rates was primarily due to a decrease in the U.S. federal statutory income tax rate due to the Tax Act.
(3) | For the fiscal year ended August 31, 2018, the increase in the changes in tax rates on deferred tax assets and liabilities was primarily due to the Tax Act, excluding the impact of the enacted rate change on the U.S. valuation allowance.
(4) | The indefinite reinvestment assertion impact for the fiscal year ended August 31, 2018 is related to the Tax Act as further discussed below.
(5) | The valuation allowance change for the fiscal years ended August 31, 2019 and 2018 was primarily due to utilization of domestic federal net operating losses and tax credits against the one-time transition tax and the change in enacted tax rate applied to U.S. deferred tax assets and liabilities for the fiscal year ended August 31, 2018. The increase for the fiscal year ended August 31, 2019 was partially offset by an income tax benefit of $17.5 million for the reversal of a U.S. valuation allowance due to an intangible asset reclassification from indefinite-life to finite-life.
(6) | For the fiscal year ended August 31, 2018, the decrease in the impact of intercompany charges and dividends was due to a change in the U.S. taxation of foreign dividends as a result of the Tax Act.
(7) | GILTI applied beginning in the fiscal year ended August 31, 2019 and primarily related to the utilization of current year U.S. federal operating losses.
Summary of Tax Act Impact | The following table summarizes the tax expense (benefit) related to the Tax Act recognized during the SAB 118 measurement period (in millions):
| One-time transition tax, inclusive of unrecognized tax benefits (1) |  | Re-measurement of the Company's U.S. deferred tax attributes |  | Change in indefinite reinvestment assertion (2) |  | Other |  | Income tax expense (benefit)
Provisional income tax expense (benefit) - recognized in fiscal year 2018 | $ | 65.9 |  |  | $ | (10.5 | ) |  | $ | 85.0 |  |  | $ | 1.9 |  |  | $ | 142.3 |
Income tax (benefit) expense adjustment - recognized in fiscal year 2019 | $ | (19.7 | ) |  | $ | 1.6 |  |  | $ | — |  |  | $ | (0.3 | ) |  | $ | (18.4 | )
Income tax expense (benefit) related to the Tax Act | $ | 46.2 |  |  | $ | (8.9 | ) |  | $ | 85.0 |  |  | $ | 1.6 |  |  | $ | 123.9 |
(1) | The calculation of the one-time transition tax is based upon post-1986 earnings and profits, applicable foreign tax credits and relevant limitations, utilization of U.S. federal net operating losses and tax credits and the amount of foreign earnings held in cash and non-cash assets. The adjustments during the fiscal year ended August 31, 2019 were primarily related to further analysis of the Company’s utilization of foreign tax credits and applicable limitations.
(2) | The liability recorded for a change in the indefinite reinvestment assertion on certain earnings from the Company's foreign subsidiaries is primarily associated with foreign withholding taxes that would be incurred upon such future remittances of cash.
Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities are summarized below (in thousands):
| Fiscal Year Ended August 31,
| 2019 |  | 2018
Deferred tax assets: |  |  |
Net operating loss carry forward | $ | 183,297 |  |  | $ | 119,259 |
Receivables | 6,165 |  |  | 7,111 |
Inventories | 9,590 |  |  | 7,634 |
Compensated absences | 10,401 |  |  | 8,266 |
Accrued expenses | 81,731 |  |  | 81,912 |
Property, plant and equipment, principally due to differences in depreciation and amortization | 66,268 |  |  | 97,420 |
Domestic federal and state tax credits | 42,464 |  |  | 70,153 |
Foreign jurisdiction tax credits | 15,345 |  |  | 25,887 |
Equity compensation – Domestic | 7,617 |  |  | 7,566 |
Equity compensation – Foreign | 2,179 |  |  | 2,401 |
Domestic federal interest carry forward | 5,853 |  |  | — |
Cash flow hedges | 9,878 |  |  | — |
Unrecognized capital loss carry forward | 7,799 |  |  | — |
Revenue recognition | 19,195 |  |  | — |
Other | 21,907 |  |  | 18,176 |
Total deferred tax assets before valuation allowances | 489,689 |  |  | 445,785 |
Less valuation allowances | (287,604 | ) |  | (223,487 | )
Net deferred tax assets | $ | 202,085 |  |  | $ | 222,298 |
Deferred tax liabilities: |  |  |
Unremitted earnings of foreign subsidiaries | 75,387 |  |  | 74,654 |
Intangible assets | 39,242 |  |  | 39,122 |
Other | 4,447 |  |  | 4,655 |
Total deferred tax liabilities | $ | 119,076 |  |  | $ | 118,431 |
Net deferred tax assets | $ | 83,009 |  |  | $ | 103,867 |
Summary of Tax Credit Carryforwards | The amount and expiration dates of income tax net operating loss carryforwards and tax credit carryforwards, which are available to reduce future taxes, if any, as of August 31, 2019 are as follows:
(dollars in thousands) | Last Fiscal Year of Expiration |  | Amount
Income tax net operating loss carryforwards:(1) |  |  |
Domestic - state | 2039 |  | $ | 57,299 |
Foreign | 2039 or indefinite |  | $ | 565,609 |
Tax credit carryforwards:(1) |  |  |
Domestic - federal | 2029 |  | $ | 39,784 |
Domestic - state | 2027 |  | $ | 3,313 |
Foreign(2) | 2027 or indefinite |  | $ | 15,345 |
(1) | Net of unrecognized tax benefits.
(2) | Calculated based on the deferral method and includes foreign investment tax credits.
Summary of Operating Loss Carryforwards | The amount and expiration dates of income tax net operating loss carryforwards and tax credit carryforwards, which are available to reduce future taxes, if any, as of August 31, 2019 are as follows:
(dollars in thousands) | Last Fiscal Year of Expiration |  | Amount
Income tax net operating loss carryforwards:(1) |  |  |
Domestic - state | 2039 |  | $ | 57,299 |
Foreign | 2039 or indefinite |  | $ | 565,609 |
Tax credit carryforwards:(1) |  |  |
Domestic - federal | 2029 |  | $ | 39,784 |
Domestic - state | 2027 |  | $ | 3,313 |
Foreign(2) | 2027 or indefinite |  | $ | 15,345 |
(1) | Net of unrecognized tax benefits.
(2) | Calculated based on the deferral method and includes foreign investment tax credits.
Reconciliations of Unrecognized Tax Benefits | Reconciliation of the unrecognized tax benefits is summarized below (in thousands):
| Fiscal Year Ended August 31,
| 2019 |  | 2018 |  | 2017
Beginning balance | $ | 256,705 |  |  | $ | 201,355 |  |  | $ | 149,898 |
Additions for tax positions of prior years | 20,158 |  |  | 14,465 |  |  | 2,155 |
Reductions for tax positions of prior years(1) | (106,252 | ) |  | (21,045 | ) |  | (12,233 | )
Additions for tax positions related to current year(2) | 35,769 |  |  | 81,866 |  |  | 77,807 |
Cash settlements | — |  |  | (1,659 | ) |  | (2,298 | )
Reductions from lapses in statutes of limitations | (2,570 | ) |  | (7,496 | ) |  | (10,446 | )
Reductions from settlements with taxing authorities(3) | (35,582 | ) |  | (5,928 | ) |  | (6,061 | )
Foreign exchange rate adjustment | (3,845 | ) |  | (4,853 | ) |  | 2,533 |
Ending balance | $ | 164,383 |  |  | $ | 256,705 |  |  | $ | 201,355 |
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $ | 93,237 |  |  | $ | 117,455 |  |  | $ | 75,223 |
(1) | The reductions for tax positions of prior years for the fiscal year ended August 31, 2019 are primarily related to a non-U.S. taxing authority ruling related to certain non-U.S. net operating loss carry forwards, offset with a valuation allowance and the impacts of the Tax Act.
(2) | The additions for the fiscal years ended August 31, 2019 and 2018 are primarily related to the impacts of the Tax Act and taxation of certain intercompany transactions. The additions for the fiscal year ended August 31, 2017 are primarily related to certain non-U.S. net operating loss carry forwards, previously offset with a valuation allowance, that can no longer be recognized due to an internal restructuring.
(3) | The reductions from settlements with taxing authorities for the fiscal year ended August 31, 2019 are primarily related to the settlement of a U.S. audit.

X
- Definition [Table Text Block] for Summary of Tax Act Impact [Table] + References No definition available. + Details
Name: | jbl_SummaryofTaxActImpactTableTextBlock
Namespace Prefix: | jbl_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&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://fasb.org/us-gaap/role/ref/legacyRef -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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration