Revenue (Tables)

6 Months Ended

Feb. 28, 2019

Revenue from Contract with Customer [Abstract]

Effect of adoption of new revenue guidance

The following table presents the effect of the adoption of the new revenue guidance on the Condensed Consolidated Balance Sheets as of February 28, 2019 (in thousands):



	February 28, 2019
	As reported		Balance without the adoption of ASU 2014-09
Assets
Contract assets⁽¹⁾	$	832,889	$	—
Inventories, net ⁽¹⁾	$	3,248,273	$	3,943,077
Prepaid expenses and other current assets ⁽¹⁾⁽²⁾	$	532,223	$	537,801
Deferred income taxes ⁽¹⁾⁽²⁾	$	194,015	$	198,444

Liabilities
Contract liabilities⁽²⁾⁽³⁾	$	583,300	$	—
Deferred income^(2)(3)(4)	$	—	$	571,149
Other accrued expenses⁽³⁾⁽⁴⁾	$	1,620,683	$	1,616,750
Deferred income taxes⁽¹⁾	$	117,547	$	113,426

Equity
Retained earnings ⁽¹⁾⁽²⁾	$	1,966,100	$	1,858,227


⁽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 Consolidated Statement of Operations for the three months and six months ended February 28, 2019 (in thousands):



	Three months ended				Six months ended
	February 28, 2019				February 28, 2019
	As reported		Balance without the adoption of ASU 2014-09		As reported		Balance without the adoption of ASU 2014-09
Net revenue ⁽¹⁾	$	6,066,990	$	5,985,439	$	12,573,265	$	12,229,174
Cost of revenue ⁽²⁾	$	5,612,116	$	5,556,714	$	11,598,741	$	11,317,170
Operating income	$	153,983	$	127,835	$	370,693	$	308,174
Income tax expense	$	33,219	$	36,867	$	74,032	$	76,783
Net income	$	67,607	$	37,811	$	191,681	$	126,411


⁽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.

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⁾	$	—	$	690,142		$	690,142
Deferred income^(2)(3)(4)	$	691,365	$	(691,365	)	$	—
Other accrued expenses ⁽³⁾⁽⁴⁾	$	1,000,979	$	40,392		$	1,041,371
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.

Revenues disaggregated by segment

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



	Three months ended						Six months ended
	February 28, 2019						February 28, 2019
	EMS		DMS		Total		EMS		DMS		Total
Timing of transfer
Point in time	$	836,863	$	1,464,832	$	2,301,695	$	1,257,524	$	3,566,483	$	4,824,007
Over time	$	2,967,864	$	797,431	$	3,765,295	$	6,050,306	$	1,698,952	$	7,749,258
Total	$	3,804,727	$	2,262,263	$	6,066,990	$	7,307,830	$	5,265,435	$	12,573,265