What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-04-02 compared with 2021-01-08 · 166 added, 97 removed, 253 unchanged (51% of the section changed)

8 unchanged sentences

We conduct our operations in facilities that are located worldwide, including but not limited to, China, Malaysia, Mexico, Singapore, the United States and Vietnam.

We derived a substantial majority, 83.6% of net revenue from our international operations for the three months ended November 30, 2020.

We derived a substantial majority, 84.7% and 84.1%, of net revenue from our international operations for the three months and six months ended February 28, 2021, respectively.

Our global manufacturing production sites allow customers to manufacture products simultaneously in the optimal locations for their products.

14 unchanged sentences

Travel and business operation restrictions arising from virus containment efforts of governments around the world have continued to impact our operations in Asia, Europe and the Americas.

Essential activity exceptions from these restrictions have allowed us to continue to operate.

Nevertheless, virus containment efforts have resulted in additional direct costs and a reduction in revenue in certain end markets.

Additionally, certain of the Company’s suppliers were similarly impacted by the COVID-19 pandemic, leading to supply chain constraints, including difficulty sourcing materials necessary to fulfill customer production requirements and challenges in transporting completed products to our end customers.

Our performance is subject to global economic conditions, as well as their impacts on levels of consumer spending and the production of goods.

These current conditions are impacted by COVID-19 and will continue to have an impact on our operations over the fiscal year and likely beyond.

See “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended August 31, 2020, “The effect of COVID-19 on our operations and the operations of our customers, suppliers and logistics providers has, and is expected to continue to have, a material and adverse impact on our financial condition and results of operations.”

Essential activity exceptions from these restrictions have allowed us to continue to operate but virus containment efforts have resulted in additional direct costs.

The impact on our suppliers has led to supply chain constraints, including difficulty sourcing materials necessary to fulfill customer production requirements and challenges in transporting completed products to our end customers.

Summary of Results

1 unchanged sentence

Three months ended

November 30, 2020

November 30, 2019

Six months ended

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Operating income

Net income attributable to Jabil Inc.

Earnings per share—basic

Earnings per share—diluted

Net income (loss) attributable to Jabil Inc.

Earnings (loss) per share—basic

Earnings (loss) per share—diluted

Key Performance Indicators

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Three months ended

November 30, 2020

August 31, 2020

February 28, 2021

November 30, 2020

February 29, 2020

Sales cycle (1)

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(3) Days in accounts receivable is calculated as accounts receivable, net, divided by net revenue multiplied by 90 days.

During the three months ended November 30, 2020, the increase in days in accounts receivable from the prior sequential quarter was primarily due to an increase in accounts receivable, primarily driven by higher sales and timing of collections.

During the three months ended February 28, 2021, the increase in days in accounts receivable from the three months ended February 29, 2020 was primarily due to an increase in accounts receivable, primarily driven by higher sales and timing of collections.

(4) Days in inventory is calculated as inventory and contract assets divided by cost of revenue multiplied by 90 days.

During the three months ended February 28, 2021, the increase in days in inventory from the prior sequential quarter was to support expected sales levels in the third quarter of fiscal year 2021.

During the three months ended February 28, 2021, the decrease in days in inventory from the three months ended February 29, 2020 was primarily due to idle capacity and supply chain constraints, largely in China due to COVID-19 during the three months ended February 29, 2020.

(5) Days in accounts payable is calculated as accounts payable divided by cost of revenue multiplied by 90 days.

During the three months ended November 30, 2020, the increase in days in accounts payable from the prior sequential quarter was primarily due to an increase for material purchases during the quarter and the timing of payments.

During the three months ended February 28, 2021, the increase in days in accounts payable from the three months ended February 29, 2020 was primarily due to an increase for material purchases and the timing of payments.

Critical Accounting Policies and Estimates

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GAAP”) requires management to make estimates and judgments that affect our reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities.

On an on-going basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and

circumstances.

On an on-going basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and circumstances.

Management believes that our estimates and assumptions are reasonable under the circumstances;

however, actual results may vary from these estimates and assumptions under different future circumstances.

For further discussion of our significant accounting policies, refer to Note 1 — “Description of Business and Summary of Significant Accounting Policies” to the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended August 31, 2020.

Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended August 31, 2020.

Recent Accounting Pronouncements

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Three months ended

Six months ended

(dollars in millions)

November 30, 2020

November 30, 2019

Net revenue increased during the three months ended November 30, 2020, compared to the three months ended November 30, 2019.

Specifically, the DMS segment revenues increased 13% due to (i) a 7% increase in revenues from existing customers within our mobility business, (ii) a 3% increase in revenues from existing customers within our connected devices business, (iii) a 2% increase in revenues from new and existing customers in our healthcare and packaging businesses, and (iv) a 1% increase in revenues from other business.

The EMS segment revenues decreased 4% primarily due to a decrease in revenues from existing customers within our cloud business, which began transitioning to a consignment model in fiscal year 2021.

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Net revenue increased during the three months ended February 28, 2021, compared to the three months ended February 29, 2020.

Specifically, the DMS segment net revenue increased 26% due to:

(i) a 17% increase in revenues from existing customers within our mobility business as our ability to meet customer demand during the three months ended February 29, 2020, was greatly diminished due to COVID-19 containment efforts in China , (ii) a 6% increase in revenues from existing customers within our connected devices business and (iii) a 3% increase in revenues from existing customers in our automotive and transportation business.

The EMS segment net revenue decreased 1% primarily due to a decrease in revenues from existing customers within our cloud business, which began transitioning to a consignment model in fiscal year 2021.

Net revenue increased during the six months ended February 29, 2021, compared to the six months ended February 29, 2020.

Specifically, the DMS segment net revenue increased 19% due to:

(i) a 12% increase in revenues from existing customers within our mobility business as our ability to meet customer demand during the six months ended February 29, 2020, was greatly diminished due to COVID-19 containment efforts in China , (ii) a 5% increase in revenues from existing customers within our connected devices business and (iii) a 2% increase in revenues from existing customers in our automotive and transportation business.

The EMS segment net revenue decreased 3% primarily due to a decrease in revenues from existing customers within our cloud business, which began transitioning to a consignment model in fiscal year 2021.

The following table sets forth, for the periods indicated, revenue by segment expressed as a percentage of net revenue:

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November 30, 2020

November 30, 2019

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February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

The following table sets forth, for the periods indicated, foreign source revenue expressed as a percentage of net revenue:

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November 30, 2019

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February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Foreign source revenue

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(dollars in millions)

November 30, 2020

November 30, 2019

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Percent of net revenue

For the three months ended November 30, 2020, gross profit as a percentage of net revenue increased as compared to the three months ended November 30, 2019.

The increase is primarily due to product mix and improved profitability across the various businesses.

For the three months and six months ended February 28, 2021, gross profit as a percentage of net revenue increased as compared to the three months and six months ended February 29, 2020, primarily due to:

(i) product mix and improved profitability across the various businesses and (ii) a decrease in incremental and idle labor costs associated with travel disruptions and governmental restrictions, largely related to the COVID-19 pandemic.

Selling, General and Administrative

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(dollars in millions)

November 30, 2020

November 30, 2019

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Selling, general and administrative

Selling, general and administrative expenses decreased during the three months ended November 30, 2020, compared to the three months ended November 30, 2019.

The decrease is predominantly due to:

(i) a $24.4 million decrease in salary and salary related expenses due to the fiscal year 2020 worldwide workforce reduction and lower travel expenses related to a decrease in travel due to the COVID-19 pandemic and (ii) a $14.0 million decrease in acquisition and integration charges related to our strategic collaboration with a healthcare company.

The decrease is partially offset by (i) a $9.0 million increase in costs related to the COVID-19 pandemic, including personal protection equipment for our employees globally and (ii) a $3.3 million increase in stock-based compensation expense.

Selling, general and administrative expenses increased during the three months ended February 28, 2021, compared to the three months ended February 29, 2020.

The increase is primarily due to:

(i) a $16.6 million increase due to higher salary and salary related expenses, partially offset by a decrease in travel expenses due to reduced travel as result of the COVID-19 pandemic and (ii) an $8.7 million increase in stock-based compensation expense due to a higher stock price for awards granted during fiscal year 2021 and anticipated achievement levels for certain performance-based stock awards.

The increase is partially offset by a $6.5 million decrease in acquisition and integration charges related to our strategic collaboration with a healthcare company.

Selling, general and administrative expenses decreased during the six months ended February 28, 2021, compared to the six months ended February 29, 2020.

The decrease is primarily due to:

(i) a $20.5 million decrease in acquisition and integration charges related to our strategic collaboration with a healthcare company (ii) a $7.8 million decrease due to lower travel expenses related to a reduction in travel due to the COVID-19 pandemic, partially offset by higher salary and salary related expenses.

The decrease is partially offset by (i) a $12.0 million increase in stock-based compensation expense due to a higher stock price for awards granted during fiscal year 2021 and anticipated achievement levels for certain performance-based stock awards and (ii) an $11.1 million increase in costs related to the COVID-19 pandemic for personal protection equipment for our employees globally.

Research and Development

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(dollars in millions)

November 30, 2020

November 30, 2019

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Research and development

Percent of net revenue

Research and development expenses remained consistent as a percentage of net revenue during the three months ended November 30, 2020, compared to the three months ended November 30, 2019.

Research and development expenses remained relatively consistent as a percentage of net revenue during the three months and six months ended February 28, 2021, compared to the three months and six months ended February 29, 2020.

Amortization of Intangibles

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(dollars in millions)

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November 30, 2019

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February 29, 2020

Amortization of intangibles

Amortization of intangibles decreased during the three months ended November 30, 2020, compared to the three months ended November 30, 2019, primarily due to certain intangible assets that were fully amortized during fiscal year 2020.

Amortization of intangibles decreased during the three months and six months ended February 28, 2021, compared to the three months and six months ended February 29, 2020, primarily due to certain intangible assets that were fully amortized during fiscal year 2020.

Restructuring, Severance and Related Charges

1 unchanged sentence

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November 30, 2019

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February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Employee severance and benefit costs

1 unchanged sentence

Total restructuring, severance and related charges (1)

(1) Primarily relates to the 2020 Restructuring Plan, and includes $(3.0) million and $17.4 million recorded in the EMS segment, $1.0 million and $25.2 million recorded in the DMS segment and $0.3 million and $2.7 million of non-allocated charges for the three months ended November 30, 2020 and 2019, respectively.

(1) Primarily relates to the 2020 Restructuring Plan, and includes $2.5 million and $14.7 million recorded in the EMS segment, $4.0 million and $14.5 million recorded in the DMS segment and $0.1 million and $0.4 million of non-allocated charges for the three months ended February 28, 2021 and February 29, 2020, respectively.

Includes $(0.5) million and $32.1 million recorded in the EMS segment, $5.0 million and $39.7 million recorded in the DMS segment and $0.4 million and $3.1 million of non-allocated charges for the six months ended February 28, 2021 and February 29, 2020, respectively.

Except for asset write-off costs, all restructuring, severance and related charges are cash costs.

See Note 12 – “Restructuring, Severance and Related Charges” to the Condensed Consolidated Financial Statements for further discussion of restructuring, severance and related charges for the 2020 Restructuring Plan.

Impairment on Securities

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(dollars in millions)

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Impairment on securities

The decrease in impairment on securities for the three months and six months ended February 28, 2021, compared to the three months and six months ended February 29, 2020 is due to a non-cash impairment charge in connection with the sale of an investment in the optical networking segment during the three months ended February 29, 2020.

Other (Income) Expense

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November 30, 2019

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February 29, 2020

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February 29, 2020

Other (income) expense

Other (income) expense decreased for the three months ended November 30, 2020, compared to the three months ended November 30, 2019, primarily due to:

Other (income) expense increased for the three months ended February 28, 2021, compared to the three months ended February 29, 2020, primarily due to:

(i) $7.9 million related to a decrease in fees associated with lower utilization of the trade accounts receivable sales programs and (ii) $3.1 million related to lower net periodic benefit costs.

The decrease is partially offset by $0.9 million arising from an increase in other expense.

Other (income) expense increased during the six months ended February 28, 2021, compared to the six months ended February 29, 2020, primarily due to:

(i) $15.5 million related to a decrease in fees associated with lower utilization of the trade accounts receivable sales programs, (ii) $7.0 million related to lower net periodic benefit costs and (iii) $0.7 million arising from a reduction in other expense.

1 unchanged sentence

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(dollars in millions)

November 30, 2020

November 30, 2019

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Interest income

Interest income decreased during the three months ended November 30, 2020, compared to the three months ended November 30, 2019, primarily due to lower interest rates on cash equivalents (investments that are readily convertible to cash with maturity dates of 90 days or less).

Interest income decreased during the three months and six months ended February 28, 2021, compared to the three months and six months ended February 29, 2020, primarily due to lower interest rates on cash equivalents (investments that are readily convertible to cash with maturity dates of 90 days or less).

Interest Expense

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November 30, 2019

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February 29, 2020

February 28, 2021

February 29, 2020

Interest expense

Interest expense decreased during the three months ended November 30, 2020, compared to the three months ended November 30, 2019 due to lower interest rates and lower borrowings on our credit facilities and commercial paper program.

Interest expense decreased during the three months and six months ended February 28, 2021, compared to the three months and six months ended February 29, 2020 due to lower interest rates and lower borrowings on our credit facilities and commercial paper program.

Income Tax Expense

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November 30, 2019

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February 29, 2020

February 28, 2021

February 29, 2020

Effective income tax rate

The effective income tax rate decreased for the three months ended November 30, 2020, compared to the three months ended November 30, 2019, primarily due to increased income for the three months ended November 30, 2020, driven in part by decreased restructuring charges in tax jurisdictions with minimal related income tax benefit.

The effective income tax rate decreased for the three months and six months ended February 28, 2021, compared to the three months and six months ended February 29, 2020, primarily due to increased income for the three months and six months ended February 28, 2021, driven in part by decreased restructuring charges in tax jurisdictions with minimal related income tax benefit.

Non-GAAP (Core) Financial Measures

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We encourage you to consider these matters when evaluating the utility of these non-GAAP financial measures.

Adjusted free cash flow is defined as net cash provided by (used in) operating activities plus cash receipts on sold receivables less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from the sale of property, plant and equipment).

of property, plant and equipment).

We report adjusted free cash flow as we believe this non-GAAP financial measure is useful to investors in measuring our ability to generate cash internally and fund future growth and to provide a return to shareholders.

4 unchanged sentences

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Six months ended

(in thousands, except for per share data)

November 30, 2020

November 30, 2019

February 28, 2021

February 29, 2020

February 28, 2021

February 29, 2020

Operating income (U.S.

4 unchanged sentences

Net periodic benefit cost (2)

Business interruption and impairment charges, net

Acquisition and integration charges (3)

1 unchanged sentence

Core operating income (Non-GAAP)

Net income attributable to Jabil Inc.

Net income (loss) attributable to Jabil Inc.

Adjustments to operating income

Impairment on securities

Net periodic benefit cost (2)

1 unchanged sentence

Core earnings (Non-GAAP)

Diluted earnings per share (U.S.

Diluted earnings (loss) per share (U.S.

Diluted core earnings per share (Non-GAAP)

Diluted weighted average shares outstanding (U.S.

GAAP and Non-GAAP)

(1) Relates to accounts receivable and inventory charges for certain distressed customers in the renewable energy sector during the three months ended November 30, 2019.

Diluted weighted average shares outstanding (Non-GAAP)

(1) Relates to accounts receivable and inventory charges for certain distressed customers in the renewable energy sector during the six months ended February 29, 2020.

(2) Following the adoption of Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715) (“ASU 2017-07”), pension service cost is recognized in cost of revenue and all other components of net periodic benefit cost, including return on plan assets, are presented in other expense.

3 unchanged sentences

Adjusted Free Cash Flow

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(in thousands)

November 30, 2020

November 30, 2019

February 28, 2021

February 29, 2020

Net cash provided by operating activities (U.S.

9 unchanged sentences

The acquisition of the JJMD assets was accounted for as a business combination using the acquisition method of accounting.

The Company is currently evaluating the fair values of the assets and liabilities related to the fourth closing.

We are currently evaluating the fair value of the assets and liabilities related to the fourth closing.

The preliminary estimates and measurements are, therefore, subject to change during the measurement period for assets acquired, liabilities assumed and tax adjustments.

The results of operations were included in our consolidated financial results beginning on October 26, 2020 for the fourth closing.

The results of operations were included in our condensed consolidated financial results beginning on October 26, 2020 for the fourth closing.

We believe it is impracticable to provide pro forma information for the acquisition of the JJMD assets.

3 unchanged sentences

Cash and Cash Equivalents

As of November 30, 2020, we had approximately $1.1 billion in cash and cash equivalents.

As of February 28, 2021, we had approximately $838.1 million in cash and cash equivalents.

As our growth remains predominantly outside of the United States, a significant portion of such cash and cash equivalents are held by our foreign subsidiaries.

Most of our cash and cash equivalents as of November 30, 2020 could be repatriated to the United States without potential tax expense.

Most of our cash and cash equivalents as of February 28, 2021 could be repatriated to the United States without potential tax expense.

Notes Payable and Credit Facilities

5 unchanged sentences

Balance as of August 31, 2020

Balance as of November 30, 2020

Balance as of February 28, 2021

Maturity Date

8 unchanged sentences

$351.9 million

(1) As of November 30, 2020, we had $3.8 billion in available unused borrowing capacity under our revolving credit facilities.

(1) As of February 28, 2021, we had $3.8 billion in available unused borrowing capacity under our revolving credit facilities.

The Revolving Credit Facility under the Credit Facility acts as the back-up facility for commercial paper outstanding, if any.

3 unchanged sentences

A violation of these covenants could negatively impact our liquidity by restricting our ability to borrow under the notes payable and credit facilities and potentially causing acceleration of amounts due under these notes payable and credit facilities.

As of November 30, 2020 and August 31, 2020, we were in compliance with our debt covenants.

As of February 28, 2021 and August 31, 2020, we were in compliance with our debt covenants.

Refer to Note 4 – “Notes Payable and Long-Term Debt” to the Condensed Consolidated Financial Statements for further details.

2 unchanged sentences

The foreign asset-backed securitization program contains a guarantee of payment by the special purpose entity, in an amount approximately equal to the net cash proceeds under the program.

No liability has been recorded for obligations under the guarantee as of November 30, 2020.

Certain unsold receivables covering the maximum amount of net cash proceeds available under the North American asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of November 30, 2020.

No liability has been recorded for obligations under the guarantee as of February 28, 2021.

Following is a summary of our asset-backed securitization programs and key terms:

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(1) Maximum amount available at any one time.

In connection with our asset-backed securitization programs, during the three months ended November 30, 2020, we sold accounts receivable of and received cash proceeds of $1.2 billion.

As of November 30, 2020, we had up to $6.3 million in available liquidity under our asset-backed securitization programs.

In connection with our asset-backed securitization programs, during the three months and six months ended February 28, 2021, we sold $1.1 billion and $2.3 billion, respectively, of trade accounts receivable and we received cash proceeds of $1.1 billion and $2.3 billion, respectively.

As of February 28, 2021, we had up to $53.3 million in available liquidity under our asset-backed securitization programs.

Our asset-backed securitization programs contain various financial and nonfinancial covenants.

As of November 30, 2020 and August 31, 2020, we were in compliance with all covenants under our asset-backed securitization programs.

Refer to Note

5 – “Asset-Backed Securitization Programs” to the Condensed Consolidated Financial Statements for further details on the programs.

As of February 28, 2021 and August 31, 2020, we were in compliance with all covenants under our asset-backed securitization programs.

Refer to Note 5 – “Asset-Backed Securitization Programs” to the Condensed Consolidated Financial Statements for further details on the programs.

Trade Accounts Receivable Sale Programs

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(9) The program will be automatically extended through April 11, 2025 unless either party provides 30 days notice of termination.

During the three months ended November 30, 2020, we sold accounts receivable of and received cash proceeds of $1.3 billion of trade accounts receivable under these programs.

As of November 30, 2020, we had up to $1.8 billion in available liquidity under our trade accounts receivable sale programs.

During the three months and six months ended February 28, 2021, we sold $1.3 billion and $2.6 billion, respectively, of trade accounts receivable under these programs and we received cash proceeds of $1.3 billion and $2.6 billion, respectively.

As of February 28, 2021, we had up to $2.0 billion in available liquidity under our trade accounts receivable sale programs.

Capital Expenditures

3 unchanged sentences

The following table sets forth selected consolidated cash flow information (in thousands):

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November 30, 2020

November 30, 2019

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February 28, 2021

February 29, 2020

Net cash provided by operating activities

Net cash used in investing activities

Net cash used in financing activities

Net cash (used in) provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

1 unchanged sentence

Operating Activities

Net cash provided by operating activities during the three months ended November 30, 2020 was primarily due to an increase in accounts payable, accrued expenses and other liabilities, partially offset by increased accounts receivable, inventories and prepaid expenses and other current assets.

The increase in accounts payable, accrued expenses and other liabilities is primarily due to an increase in material purchases and the timing of purchases and cash payments.

Net cash provided by operating activities during the six months ended February 28, 2021 was primarily due to net income and a decrease in contract assets, partially offset by:

(i) an increase in inventories, accounts receivable and prepaid expenses and other current assets and (ii) a decrease in accounts payable, accrued expenses and other liabilities.

The decrease in contract assets is primarily due to timing of revenue recognition for over time customers.

The increase in inventories is primarily to support expected sales levels in the third quarter of fiscal year 2021.

The increase in accounts receivable is primarily driven by higher sales and the timing of collections.

The increase in inventories is primarily to support expected sales levels in the second quarter of fiscal year 2021.

The increase in prepaid expenses and other current assets is primarily due to an increase in forward contract assets driven by normal hedging activity.

The decrease in accounts payable, accrued expenses and other liabilities is primarily due the timing of purchases and cash payments.

Investing Activities

Net cash used in investing activities during the three months ended November 30, 2020 consisted primarily of capital expenditures principally to support ongoing business in the DMS and EMS segments, partially offset by proceeds and advances from the sale of property, plant and equipment.

Net cash used in investing activities during the six months ended February 28, 2021 consisted primarily of capital expenditures, principally to support ongoing business in the DMS and EMS segments and expenditures in connection with the acquisition of certain assets of JJMD and the acquisition of Ecologic, partially offset by proceeds and advances from the sale of property, plant and equipment.

Financing Activities

Net cash used in financing activities during the three months ended November 30, 2020 was primarily due to (i) payments for debt agreements, (ii) the repurchase of our common stock, (iii) treasury stock minimum tax withholding related to vesting of restricted stock and (iv) dividend payments.

Net cash used in financing activities was partially offset by borrowings under debt agreements.

Net cash used in financing activities during the six months ended February 28, 2021 was primarily due to (i) payments for debt agreements, (ii) the repurchase of our common stock under our share repurchase authorization and (iii) the purchase of treasury stock under employee stock plans.

Net cash used in financing activities was partially offset by (i) borrowings under debt agreements and (ii) net proceeds from the exercise of stock options and issuance of common stock under the employee stock purchase plan.

Contractual Obligations

During the three months ended November 30, 2020, we assumed $80.1 million in additional contractual obligations related to new finance leases entered into during the period that are due in fiscal year 2023.

During the first quarter of fiscal year 2021, we entered into new finance leases that are primarily due in fiscal year 2023.

As of February 28, 2021, we have $95.3 million of contractual obligations related to these new leases.

As of the date of this report, there were no other material changes outside the ordinary course of business since August 31, 2020 to our contractual obligations and commitments.

3 unchanged sentences

In September 2019, the Board of Directors authorized the repurchase of up to $600.0 million of our common stock as a part of a two-year capital allocation framework (the “2020 Share Repurchase Program”).

As of November 30, 2020, 7.5 million shares had been repurchased for $263.9 million and $336.1 million remains available under the 2020 Share Repurchase Program.

As of February 28, 2021, 9.4 million shares had been repurchased for $345.9 million and $254.1 million remains available under the 2020 Share Repurchase Program.

The 2020 Share Repurchase Program expires at the end of fiscal year 2021.

Quantitative and Qualitative Disclosures About Market Risk

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis