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

12 Months Ended

Aug. 31, 2018

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,
	2018		2017
Land and improvements	$	144,136	$	120,574
Buildings	849,975		804,861
Leasehold improvements	1,013,428		877,752
Machinery and equipment	3,983,025		3,680,881
Furniture, fixtures and office equipment	192,243		178,603
Computer hardware and software	601,955		583,569
Transportation equipment	17,215		22,080
Construction in progress	42,984		85,748
	6,844,961		6,354,068
Less accumulated depreciation and amortization	3,646,945		3,125,390
	$	3,198,016	$	3,228,678

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, 2018 (in thousands):



	Foreign Currency Translation Adjustment			Derivative Instruments				Actuarial (Loss) Gain				Prior Service Cost				Available for Sale Securities				Total
Balance as of August 31, 2016	$	16,338		$	7,784			$	(43,587	)		$	941			$	(21,353	)		$	(39,877	)
Other comprehensive income (loss) before reclassifications	35,297			13,434			⁽¹⁾	8,443				86				10,611				67,871
Amounts reclassified from AOCI	5,947			8,749			⁽²⁾	1,929			⁽³⁾	(138		)	⁽³⁾	10,139			⁽⁴⁾	26,626
Other comprehensive income (loss)⁽⁵⁾	41,244			22,183				10,372				(52		)		20,750				94,497
Balance as of August 31, 2017	$	57,582		$	29,967			$	(33,215	)		$	889			$	(603	)		$	54,620
Other comprehensive (loss) income before reclassifications	(50,151		)	1,225			⁽¹⁾	7,067				(1,444		)		(8,679		)		(51,982		)
Amounts reclassified from AOCI	—			(23,076		)	⁽²⁾	1,127			⁽³⁾	(88		)	⁽³⁾	—				(22,037		)
Other comprehensive (loss) income⁽⁵⁾	(50,151		)	(21,851		)		8,194				(1,532		)		(8,679		)		(74,019		)
Balance as of August 31, 2018	$	7,431		$	8,116			$	(25,021	)		$	(643	)		$	(9,282	)		$	(19,399	)


⁽¹⁾	Represents changes in fair value of derivative instruments.

⁽²⁾

Represents reclassification of net (gains) losses realized and included in net income related to derivative instruments. $14.8 million was classified into net income as a reduction of income tax expense related to derivative instruments for the fiscal year ended August 31, 2018. The remaining amount for fiscal year 2018 and the amount for fiscal year 2017 was primarily classified as a component of cost of revenue. The Company expects to reclassify $9.0 million into earnings during the next 12 months, which will primarily be classified as a component of cost of revenue.


⁽³⁾	Amounts are included in the computation of net periodic benefit pension cost. Refer to Note 9 – “Postretirement and Other Employee Benefits” for additional information.


⁽⁴⁾	The portion of AOCI reclassified into earnings during the fiscal year ended August 31, 2017 for available for sale

securities was due to an other than temporary impairment on securities and was classified as a component of other

expense.


⁽⁵⁾	Amounts are net of tax, which are immaterial.

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,
	2018	2017	2016
Stock appreciation rights	—	265	2,381
Restricted stock awards	2,426	4,539	7,599