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Concentration of Risk and Segment Data
 12 Months Ended
Aug. 31, 2023
Segment Reporting [Abstract]  
Concentration of Risk and Segment Data Concentration of Risk and Segment Data
Concentration of Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalents with various domestic and foreign financial institutions. Deposits held with the financial institutions may exceed the amount of insurance provided on such deposits, but may generally be redeemed upon demand. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. For trade receivables, the Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains an allowance for expected credit losses on trade receivables.
Sales of the Company’s products are concentrated among specific customers. For fiscal year 2023, the Company’s five largest customers accounted for approximately 42% of its net revenue and 84 customers accounted for approximately 90% of its net revenue. As the Company is a provider of manufacturing services and solutions and products are built based on customer specifications, it is impracticable to provide revenues from external customers for each product and service. Sales to the following customers that accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue, and the percentage of accounts receivable for the customers, were as follows:
  Percentage of Net Revenue
Fiscal Year Ended August 31,		 Percentage of Accounts Receivable
as of August 31,
  2023 2022 2021 2023 2022
Apple, Inc.(1)
 17  % 19  % 22  % * *
*  Amount was less than 10% of total.
(1)Sales to this customer were reported in the DMS operating segment.
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
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to assess the performance of the individual segment and make decisions about resources to be allocated to the segment.
The Company derives its revenue from providing comprehensive electronics design, production and product management services. The CODM evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportable segments. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital and risk profiles.
The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment is a high volume business that produces product at a quicker rate (i.e. cycle time) and in larger quantities and includes customers primarily in the 5G, wireless and cloud, digital print and retail, industrial and semi-capital equipment, and networking and storage industries.
The DMS segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies and healthcare. The DMS segment includes customers primarily in the automotive and transportation, connected devices, healthcare and packaging, and mobility industries.
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. Segment income does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, loss on debt extinguishment, (gain) loss on securities, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense (excluding certain components of net periodic benefit cost), interest expense, net, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests.
Total segment assets are defined as accounts receivable, contract assets, inventories, net, customer-related property, plant and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties.
The following table presents the Company’s revenues disaggregated by segment (in millions):
Fiscal Year Ended August 31,
2023 2022 2021
EMS DMS Total EMS DMS Total EMS DMS Total
Timing of transfer
Point in time $ 5,094  $ 6,453  $ 11,547  $ 6,112  $ 6,818  $ 12,930  $ 4,464  $ 7,183  $ 11,647 
Over time 11,655  11,500  23,155  10,625  9,923  20,548  9,440  8,198  17,638 
Total $ 16,749  $ 17,953  $ 34,702  $ 16,737  $ 16,741  $ 33,478  $ 13,904  $ 15,381  $ 29,285 
The following tables set forth operating segment information (in millions):
  Fiscal Year Ended August 31,
  2023 2022 2021
Segment income and reconciliation of income before income tax
EMS $ 837  $ 727  $ 509 
DMS 896  816  732 
Total segment income $ 1,733  $ 1,543  $ 1,241 
Reconciling items:
Amortization of intangibles (33) (34) (47)
Stock-based compensation expense and related charges (95) (81) (102)
Restructuring, severance and related charges (57) (18) (10)
Business interruption and impairment charges, net
—  —  1 
Acquisition and integration charges —  —  (4)
Loss on debt extinguishment —  (4) — 
Gain on securities
 —  —  2 
Other expense (net of periodic benefit cost) (80) (29) (13)
Interest expense, net (206) (146) (124)
Income before income tax $ 1,262  $ 1,231  $ 944 
August 31, 2023 August 31, 2022
Total assets:
EMS $ 4,859  $ 5,402 
DMS 6,802  8,881 
Assets held for sale(1)
 1,929  — 
Other non-allocated assets 5,834  5,434 
Total $ 19,424  $ 19,717 
(1)Assets held for sale were reported in the DMS operating segment.
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 tables set forth external net revenue, net of intercompany eliminations, and long-lived asset information where individual countries represent a material portion of the total (in millions):
  Fiscal Year Ended August 31,
  2023 2022 2021
External net revenue:
Singapore
 $ 7,385  $ 7,916  $ 7,943 
Mexico
 6,083  5,630  4,323 
China
 5,868  5,272  4,666 
Malaysia
 2,779  2,709  2,121 
India
 1,596  591  549 
Other
 6,056  5,971  4,868 
Foreign source revenue 29,767  28,089  24,470 
U.S. 4,935  5,389  4,815 
Total $ 34,702  $ 33,478  $ 29,285 
    
  August 31, 2023 August 31, 2022
Long-lived assets:
China(1)
 $ 684  $ 1,758 
Mexico
 574  492 
Malaysia
 358  328 
Switzerland
 238  208 
Singapore
 131  138 
Hungary
 109  114 
Taiwan
 97  101 
Vietnam
 88  104 
Other
 628  553 
Long-lived assets related to foreign operations 2,907  3,796 
U.S.
 993  1,020 
Total $ 3,900  $ 4,816 
(1)Excludes long-lived assets of $841 million classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information.