Income Taxes (Tables)

12 Months Ended

Aug. 31, 2012

Income (Loss) Before Income Taxes and Noncontrolling Interests

Income (loss) before income taxes and noncontrolling interests is summarized below (in thousands):

	Fiscal Year Ended August 31,
	2012			2011			2010
U.S.	$	(147,567	)	$	(112,705	)	$	(115,657	)
Non-U.S.		656,467			593,892			362,924
	$	508,900		$	481,187		$	247,267

Income Tax Expense (Benefit)

Income tax expense (benefit) is summarized below (in thousands):

Fiscal Year Ended August 31,	Current			Deferred			Total
2012: U.S. — Federal	$	2,240		$	2,172		$	4,412
U.S. — State		279			462			741
Non-U.S.		125,646			(17,988	)		107,658
	$	128,165		$	(15,354	)	$	112,811
2011: U.S. — Federal	$	(8,937	)	$	4,123		$	(4,814	)
U.S. — State		1,103			97			1,200
Non-U.S.		102,826			(983	)		101,843
	$	94,992		$	3,237		$	98,229
2010: U.S. — Federal	$	5,845		$	(2,273	)	$	3,572
U.S. — State		2,040			97			2,137
Non-U.S.		66,285			4,507			70,792
	$	74,170		$	2,331		$	76,501

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,
	2012			2011			2010
Tax at U.S. federal statutory income tax rate (35%)	$	178,115		$	168,416		$	86,543
State income taxes, net of federal tax benefit		(4,013	)		(2,688	)		(1,342	)
Impact of foreign tax rates		(116,198	)		(94,392	)		(63,450	)
Permanent impact of non-deductible cost		2,147			4,639			9,116
Income tax credits		(13,125	)		(38,707	)		(7,863	)
Changes in tax rates on deferred tax assets and liabilities		(9,048	)		10,147			5,020
Valuation allowance		57,743			17,277			19,474
Non-deductible equity compensation		6,655			7,581			9,317
Impact of intercompany charges		1,742			12,658			25,748
Other, net		8,793			13,298			(6,062	)
Total income tax expense	$	112,811		$	98,229		$	76,501

Current and Noncurrent Net Deferred Tax Assets

The current and noncurrent net deferred tax assets are summarized below (in thousands):

	Fiscal Year Ended August 31,
	2012			2011
Current deferred tax assets	$	27,833		$	15,737
Current deferred tax liabilities		(3,955	)		(5,182	)
Noncurrent deferred tax assets		73,411			74,989
Noncurrent deferred tax liabilities		(24,245	)		(15,761	)
Total net deferred tax assets	$	73,044		$	69,783

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,
	2012			2011
Deferred tax assets:
Net operating loss carry forward	$	280,196		$	269,686
Receivables		3,275			5,584
Inventories		10,909			5,798
Compensated absences		7,957			6,566
Accrued expenses		49,318			24,858
Property, plant and equipment, principally due to differences in depreciation and amortization		12,644			12,932
U.S. foreign tax credits		18,708			10,394
Foreign jurisdiction tax credits		13,587			20,044
Equity compensation — U.S.		65,800			60,634
Equity compensation — Non-U.S.		8,807			8,187
Cash flow hedges		8,616			10,165
Intangible assets		69,885			101,783
Other		21,207			17,884
Total deferred tax assets before valuation allowances		570,909			554,515
Less valuation allowances		(487,745	)		(469,067	)
Net deferred tax assets	$	83,164		$	85,448
Deferred tax liabilities:
Other		10,120			15,665
Total deferred tax liabilities	$	10,120		$	15,665
Net deferred tax assets	$	73,044		$	69,783

Reconciliations of Unrecognized Tax Benefits

Reconciliations of the unrecognized tax benefits are summarized below (in thousands):

	Fiscal Year Ended August 31,
	2012			2011			2010
Beginning balance	$	84,942		$	78,140		$	79,576
Additions for tax positions of prior years		48,986			2,979			4,931
Reductions for tax positions of prior years		(10,446	)		(12,631	)		(11,669	)
Additions for tax positions related to current year		12,316			18,431			18,249
Additions for tax positions related to acquired entities		3,275			3,648			—
Cash settlements		(7,880	)		(1,667	)		(3,103	)
Reductions from lapses in statutes of limitations		(2,521	)		(2,840	)		(4,184	)
Reductions from settlements with taxing authorities		(9,680	)		(5,349	)		(4,450	)
Foreign exchange rate adjustment		(2,331	)		4,231			(1,210	)
Ending balance	$	116,661		$	84,942		$	78,140
Unrecognized tax benefits that would affect the effective tax rate (if recognized)	$	68,924		$	68,859		$	71,456