Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2019

Components of Property, Plant and Equipment

Estimated useful lives for major classes of depreciable assets are as follows:



Asset Class	Estimated Useful Life
Buildings	Up to 35 years
Leasehold improvements	Shorter of lease term or useful life of the improvement
Machinery and equipment	2 to 10 years
Furniture, fixtures and office equipment	5 years
Computer hardware and software	3 to 7 years
Transportation equipment	3 years

Property, plant and equipment consists of the following (in thousands):



	August 31,
	2019		2018
Land and improvements	$	146,719	$	144,136
Buildings	962,559		849,975
Leasehold improvements	1,092,787		1,013,428
Machinery and equipment	4,262,015		3,983,025
Furniture, fixtures and office equipment	209,257		192,243
Computer hardware and software	671,252		601,955
Transportation equipment	16,423		17,215
Construction in progress	83,234		42,984
	7,444,246		6,844,961
Less accumulated depreciation and amortization	4,110,496		3,646,945
	$	3,333,750	$	3,198,016

Summary of Changes in AOCI

The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2019 (in thousands):



	Foreign Currency Translation Adjustment			Derivative Instruments			Actuarial (Loss) Gain			Prior Service (Cost) Credit			Available for Sale Securities			Total
Balance as of August 31, 2018	$	7,431		$	8,116		$	(25,021	)	$	(643	)	$	(9,282	)	$	(19,399	)
Other comprehensive (loss) income before reclassifications	(21,729		)	(67,773		)	(3,753		)	79			(24,508		)	(117,684		)
Amounts reclassified from AOCI	—			20,259			741			(44		)	33,333			54,289
Other comprehensive (loss) income⁽¹⁾	(21,729		)	(47,514		)	(3,012		)	35			8,825			(63,395		)
Balance as of August 31, 2019	$	(14,298	)	$	(39,398	)	$	(28,033	)	$	(608	)	$	(457	)	$	(82,794	)


⁽¹⁾	Amounts are net of tax, which are immaterial.

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following table sets forth the amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in thousands):



		Fiscal Year Ended August 31,
Comprehensive Income Components	Financial Statement Line Item	2019			2018			2017
Foreign currency translation adjustment	Operating income	$	—		$	—		$	5,947
Realized losses (gains) on derivative instruments:⁽³⁾
Foreign exchange contracts	Cost of revenue	21,982			(9,379		)	4,799
Interest rate contracts	Interest expense	(1,723		)	(13,697		)	3,950
Actuarial loss	⁽¹⁾	741			1,127			1,929
Prior service credit	⁽¹⁾	(44		)	(88		)	(138		)
Available for sale securities	⁽²⁾	33,333			—			10,139
Total amounts reclassified from AOCI⁽⁴⁾		$	54,289		$	(22,037	)	$	26,626


⁽¹⁾	Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information.


⁽²⁾	The portions of AOCI reclassified into earnings during the fiscal years ended August 31, 2019 and 2017 for available for sale securities were due to a restructuring of securities loss and an other than temporary impairments on securities, respectively, and were recorded to restructuring of securities loss and other expense, respectively.


⁽³⁾	The Company expects to reclassify $17.0 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue.


⁽⁴⁾	Amounts are net of tax, which are immaterial for the fiscal years ended August 31, 2019 and 2017. The amount for the fiscal year ended August 31, 2018 includes a reduction to income tax expense related to derivative instruments of $14.8 million.

Dilutive Shares Outstanding Not Included in the Computation of Earnings Per Share

Potential shares of common stock not included in the computation of earnings per share because their effect would have been antidilutive or because the performance criterion was not met were as follows (in thousands):



	Fiscal Year Ended August 31,
	2019	2018	2017
Stock appreciation rights	—	—	265
Restricted stock units	796	2,426	4,539