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Discontinued Operations
 9 Months Ended
May. 31, 2015
Discontinued Operations [Abstract]  
Discontinued Operations

2. Discontinued Operations

On December 17, 2013, the Company announced that it entered into a stock purchase agreement with iQor Holdings, Inc. (“iQor”) for the sale of Jabil’s Aftermarket Services (“AMS”) business for consideration of $725.0 million, which consists of $675.0 million in cash and an aggregate liquidation preference value of $50.0 million in Senior Non-Convertible Cumulative Preferred Stock of iQor that accretes dividends at an annual rate of 8 percent and is redeemable in nine years or upon a change in control. The final purchase price was reduced by $100.2 million for cash, indebtedness, taxes, interest and certain working capital accounts of the Company’s AMS business, and this adjustment is subject to final reconciliation in relation to the purchase price for the Malaysian operations. Also, as part of this transaction, the Company is subject to a limited covenant not to compete. On April 1, 2014, the Company completed the sale of the AMS business except for the Malaysian operations, for which the sale was completed on December 31, 2014. In connection with the AMS transaction, the Company entered into a transition services agreement effective April 1, 2014 to provide certain administrative services to facilitate the orderly transfer of the business operations to iQor. This agreement is not material and the continuing cash flows are not significant. As of May 31, 2015, AMS continues to meet the criteria for discontinued operations reporting because the Company does not have any significant continuing involvement in the operations of AMS after the disposal transaction and the operations and cash flows of AMS have been eliminated from the ongoing operations of the Company as a result of the disposal transaction.

For all periods presented, the operating results associated with this business have been reclassified into (loss) income from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations. The following table provides a summary of AMS amounts included in discontinued operations (in thousands):

Three months endedNine months ended
May 31,May 31,May 31,May 31,
2015201420152014
Net revenue$―$82,821$14,624$575,592
(Loss) income from discontinued operations, before tax$(1,514)3,378$(5,222)27,164
Income tax expense―67925,649
(Loss) income from discontinued operations, net of tax$(1,514)$2,699$(5,224)$21,515
Gain (loss) on sale of discontinued operations, before tax$1,681$248,275$(300)$239,320
Income tax expense―9,7785759,778
Gain (loss) on sale of discontinued operations, net of tax$1,681$238,497$(875)$229,542
Discontinued operations, net of tax$167$241,196$(6,099)$251,057