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Income Taxes (Tables)
 12 Months Ended
Aug. 31, 2018
Income Tax Disclosure [Abstract]  
Income (Loss) Before Income Tax Expense
Income (loss) before income tax expense is summarized below (in thousands):
 
Fiscal Year Ended August 31,
 
2018
 
2017
 
2016
U.S.(1)
$
(426,897
)
 
$
(373,690
)
 
$
(317,427
)
Non-U.S.(1)
800,298

 
629,923

 
704,472

 
$
373,401

 
$
256,233

 
$
387,045

 
(1) 
The U.S. and non-U.S. components of income (loss) before income tax expense include the elimination of intercompany foreign dividends paid to the U.S.
Income Tax Expense (Benefit)
Income tax expense (benefit) is summarized below (in thousands):
 
Fiscal Year Ended August 31,
Current
 
Deferred
 
Total
2018:
U.S. – Federal
$
69,080

 
$
(24,342
)
 
$
44,738

 
U.S. – State
134

 
93

 
227

 
Non-U.S.
178,790

 
62,105

 
240,895

 
 
$
248,004

 
$
37,856

 
$
285,860

2017:
U.S. – Federal
$
2,436

 
$
253

 
$
2,689

 
U.S. – State
12

 
30

 
42

 
Non-U.S.
188,872

 
(62,537
)
 
126,335

 
 
$
191,320

 
$
(62,254
)
 
$
129,066

2016:
U.S. – Federal
$
(649
)
 
$
73

 
$
(576
)
 
U.S. – State
(166
)
 
9

 
(157
)
 
Non-U.S.
157,069

 
(24,187
)
 
132,882

 
 
$
156,254

 
$
(24,105
)
 
$
132,149
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,
 
2018
 
2017
 
2016
Tax at U.S. federal statutory income tax rate(1)
$
95,852

 
$
89,682

 
$
135,470

State income taxes, net of federal tax benefit
(5,417
)
 
(8,474
)
 
(5,121
)
Impact of foreign tax rates(2)
(71,889
)
 
(109,466
)
 
(144,521
)
Permanent impact of non-deductible cost
21,988

 
7,336

 
3,408

Income tax credits
(10,405
)
 
(16,254
)
 
(5,040
)
Changes in tax rates on deferred tax assets and liabilities(3)
15,048

 
688

 
182

Transition tax related to the Tax Act(4)
232,405

 
—

 
—

Change in indefinite reinvestment assertion related to the Tax Act(5)
21,754

 
—

 
—

Valuation allowance(6)
(61,186
)
 
37,934

 
11,770

Non-deductible equity compensation
20,443

 
11,531

 
18,350

Impact of intercompany charges and dividends(7)
27,442

 
98,052

 
94,596

Reclassification of stranded tax effects in AOCI
(14,811
)
 
—

 
—

Other, net
14,636

 
18,037

 
23,055

Total income tax expense
$
285,860

 
$
129,066

 
$
132,149

 
(1) 
The U.S. federal statutory income tax rate was 25.7%, 35% and 35% for fiscal years ended August 31, 2018, 2017 and 2016, respectively. As a result of the Tax Cuts and Jobs Act of 2017 ("Tax Act"), the Company will be subject to a blended U.S. federal tax rate of 25.7% for the fiscal year ended August 31, 2018 and a 21.0% U.S. federal tax rate for future fiscal years.
(2) 
For the fiscal year ended August 31, 2018, the decrease in the impact of foreign tax rates was primarily due to a decrease in the U.S. federal statutory income tax rate from 35% to 25.7% due to the Tax Act.
(3) 
For the fiscal year ended August 31, 2018, the increase in the changes in tax rates on deferred tax assets and liabilities was primarily due to the Tax Act. This increase excludes the impact of the enacted rate change on the U.S. valuation allowance.
(4) 
The Tax Act introduced a one-time mandatory income inclusion of the historically untaxed foreign earnings of a U.S. company's foreign subsidiaries and will effectively tax such income at reduced tax rates ("transition tax"). For the fiscal year ended August 31, 2018, the transition tax related to the Tax Act reflects the $65.9 million provisional one-time transition tax inclusive of unrecognized tax benefits and the corresponding utilization of U.S. federal net operating losses and tax credits that historically had valuation allowances.
(5) 
For the fiscal year ended August 31, 2018, the change in indefinite reinvestment assertion related to the Tax Act reflects the $85.0 million of foreign taxes that would be incurred upon future remittances of certain foreign earnings less the write off of a previously recorded U.S. deferred tax liability that is no longer taxable due to the Tax Act.
(6) 
For the fiscal year ended August 31, 2018, the valuation allowance decrease was due to utilization of U.S. federal net operating losses and tax credits against the one-time transition tax and the change in enacted tax rate applied to U.S. deferred tax assets and liabilities. The tax benefit from the valuation allowance reversal on U.S. federal net operating losses utilized in the one-time transition tax was $85.0 million. The valuation allowance decrease is partially offset by the current year increase of deferred tax assets in sites with existing valuation allowances.
(7) 
For the fiscal year ended August 31, 2018, the decrease in the impact of intercompany charges and dividends was due to a change in the U.S. taxation of foreign dividends as a result of the Tax Act.
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,
 
2018
 
2017
Deferred tax assets:
 
 
 
Net operating loss carry forward
$
119,259

 
$
268,853

Receivables
7,111

 
7,497

Inventories
7,634

 
11,618

Compensated absences
8,266

 
10,981

Accrued expenses
81,912

 
93,413

Property, plant and equipment, principally due to differences in depreciation and amortization
97,420

 
81,954

U.S. federal and state tax credits
70,153

 
57,122

Foreign jurisdiction tax credits
25,887

 
24,641

Equity compensation – U.S.
7,566

 
16,460

Equity compensation – Non-U.S.
2,401

 
2,700

Other
18,176

 
14,573

Total deferred tax assets before valuation allowances
445,785

 
589,812

Less valuation allowances
(223,487
)
 
(285,559
)
Net deferred tax assets
$
222,298

 
$
304,253

Deferred tax liabilities:
 
 
 
Unremitted earnings of non-U.S. subsidiaries
74,654

 
86,202

Intangible assets
39,122

 
48,229

Cash flow hedges
—

 
8,564

Other
4,655

 
4,863

Total deferred tax liabilities
$
118,431

 
$
147,858

Net deferred tax assets
$
103,867

 
$
156,395
Reconciliations of Unrecognized Tax Benefits
Reconciliations of the unrecognized tax benefits are summarized below (in thousands):
 
Fiscal Year Ended August 31,
 
2018
 
2017
 
2016
Beginning balance
$
201,355

 
$
149,898

 
$
154,648

Additions for tax positions of prior years
14,465

 
2,155

 
7,974

Reductions for tax positions of prior years
(21,045
)
 
(12,233
)
 
(20,045
)
Additions for tax positions related to current year
81,866

 
77,807

 
25,892

Cash settlements
(1,659
)
 
(2,298
)
 
(6,553
)
Reductions from lapses in statutes of limitations
(7,496
)
 
(10,446
)
 
(7,099
)
Reductions from settlements with taxing authorities
(5,928
)
 
(6,061
)
 
(1,787
)
Foreign exchange rate adjustment
(4,853
)
 
2,533

 
(3,132
)
Ending balance
$
256,705

 
$
201,355

 
$
149,898

Unrecognized tax benefits that would affect the effective tax rate (if recognized)
$
117,455

 
$
75,223

 
$
72,152