Revenue (Tables)

3 Months Ended

Nov. 30, 2018

Revenue from Contract with Customer [Abstract]

Effect of adoption of new revenue guidance

Following is a summary of the cumulative effect adjustment (in thousands):



	Balance as of August 31, 2018		Adjustments due to adoption of ASU 2014-09			Balance as of September 1, 2018
	Balance as of August 31, 2018		Adjustments due to adoption of ASU 2014-09			Balance as of September 1, 2018
Assets
Contract assets ⁽¹⁾	$	—	$	591,616		$	591,616
Inventories, net⁽¹⁾	$	3,457,706	$	(461,271	)	$	2,996,435
Prepaid expenses and other current assets⁽¹⁾⁽²⁾	$	1,141,000	$	(37,271	)	$	1,103,729
Deferred income taxes ⁽¹⁾⁽²⁾	$	218,252	$	(8,325	)	$	209,927

Liabilities
Contract liabilities⁽²⁾⁽³⁾	$	—	$	852,102		$	852,102
Deferred income^(2)(3)(4)	$	691,365	$	(691,365	)	$	—
Other accrued expenses ⁽³⁾⁽⁴⁾	$	1,000,979	$	(121,568	)	$	879,411
Deferred income taxes⁽¹⁾	$	114,385	$	2,977		$	117,362

Equity
Retained earnings⁽¹⁾⁽²⁾	$	1,760,097	$	42,602		$	1,802,699


⁽¹⁾	Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications.


⁽²⁾	Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications.


⁽³⁾	Included within accrued expenses on the Condensed Consolidated Balance Sheets.


⁽⁴⁾	Differences included in contract liabilities as of September 1, 2018.

The following table presents the effect of the adoption of the new revenue guidance on the Condensed Consolidated Balance Sheets as of November 30, 2018 (in thousands):



	As of November 30, 2018
	As reported		Balance without the adoption of ASU 2014-09
Assets
Contract assets⁽¹⁾	$	761,405	$	—
Inventories, net ⁽¹⁾	$	3,214,513	$	3,860,306
Prepaid expenses and other current assets ⁽¹⁾⁽²⁾	$	662,811	$	666,992
Deferred income taxes ⁽¹⁾⁽²⁾	$	216,209	$	223,949

Liabilities
Contract liabilities⁽²⁾⁽³⁾	$	709,258	$	—
Deferred income^(2)(3)(4)	$	—	$	526,496
Other accrued expenses⁽³⁾⁽⁴⁾	$	1,256,877	$	1,418,483
Deferred income taxes⁽¹⁾	$	116,804	$	112,346

Equity
Retained earnings ⁽¹⁾⁽²⁾	$	1,911,451	$	1,833,374


⁽¹⁾	Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications.


⁽²⁾	Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications.


⁽³⁾	Included within accrued expenses on the Condensed Consolidated Balances Sheets.


⁽⁴⁾	Differences included in contract liabilities as of September 1, 2018.

The following table presents the effect of the adoption of the new revenue guidance on the Consolidated Statement of Operations for the three months ended November 30, 2018 (in thousands):



	Three months ended November 30, 2018
	As reported		Balance without the adoption of ASU 2014-09

Net revenue ⁽¹⁾	$	6,506,275	$	6,243,735

Cost of revenue ⁽²⁾	$	5,986,625	$	5,760,456

Operating income	$	216,710	$	180,339

Income tax expense	$	40,813	$	39,916

Net income	$	124,074	$	88,600


⁽¹⁾	Differences primarily relate to the timing of revenue recognition for over-time customers and to the recovery of fulfillment costs.


⁽²⁾	Differences primarily relate to the timing of cost recognition for over-time customers and the recognition of fulfillment costs.

Revenues disaggregated by segment

The following table presents the Company’s revenues disaggregated by segment (in thousands):



	Three months ended
	November 30, 2018
	EMS		DMS		Total
Timing of transfer
Point in time	$	420,661	$	2,101,651	$	2,522,312
Over time	$	3,082,442	$	901,521	$	3,983,963
Total	$	3,503,103	$	3,003,172	$	6,506,275