JABIL INC 10-K

Item 9A. Controls and Procedures (a) Evaluation of Disclosure Controls and Procedures We carried out an evaluation required by Rules 13a-15 and 15d-15 under the Exchange Act (the “Evaluation”), under the supervision and with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15 and 15d-15 under the Exchange Act as of August 31, 2024. Based on the Evaluation, our CEO and CFO concluded that the design and operation of our disclosure controls were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and (ii) accumulated and communicated to our senior management, including our CEO and CFO, to allow timely decisions regarding required disclosure. (b) Management’s Report on Internal Control over Financial Reporting We assessed the effectiveness of our internal control over financial reporting as of August 31, 2024. Management’s report on internal control over financial reporting as of August 31, 2024, is incorporated herein at Item 15. Ernst & Young LLP, our independent registered public accounting firm, issued an audit report on the effectiveness of our internal control over financial reporting as of August 31, 2024, which is incorporated herein at Item 15. Our management, including our CEO and CFO, does not expect that our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances 47 Table of Contents of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls may be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. Notwithstanding the foregoing limitations on the effectiveness of controls, we have reached the conclusions set forth in Management’s report on internal control over financial reporting as of August 31, 2024. (c) Changes in Internal Control over Financial Reporting For our fiscal quarter ended August 31, 2024, we did not identify any modifications to our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information Rule 10b5-1 Trading Plans During the three months ended August 31, 2024, no director or executive officer of the Company adopted or terminated a trading arrangement intended to satisfy the affirmative defenses of Rule 10b5-1 under the Securities Exchange Act of 1934 or a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408(a) of Regulation S-K. 48 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance Information regarding our executive officers is included in Item 1 of Part I of this Report under the heading “Information about our Executive Officers.” The other information required by this item is incorporated by reference to the information set forth under the captions “Election of Directors”, “Corporate Governance”, “Board of Directors” and “Audit Committee Matters” in our Proxy Statement for the Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of our fiscal year ended August 31, 2024 (“Proxy Statement”). Item 11. Executive Compensation The information required by this item is incorporated by reference to the information set forth under the captions “Compensation Matters”, “Board of Directors – Director Compensation” and “Corporate Governance – Compensation Committee Interlocks and Insider Participation” in our Proxy Statement. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by this item is incorporated by reference to the information set forth under the captions “Beneficial Ownership – Share Ownership by Principal Stockholders and Management” and “Compensation Matters – Equity Compensation Plan Information” in our Proxy Statement. Item 13. Certain Relationships and Related Transactions, and Director Independence The information required by this item is incorporated by reference to the information set forth under the captions “Corporate Governance – Related Party Transactions – Certain Related Party Transactions”, “Corporate Governance –Determinations of Director Independence” in our Proxy Statement. Item 14. Principal Accounting Fees and Services The information required by this item is incorporated by reference to the information set forth under the captions “Audit Committee Matters – Principal Accounting Fees and Services”, “– Policy on Audit Committee Pre-Approval of Audit, Audit-Related and Permissible Non-Audit Services” and “Ratification of Appointment of Independent Registered Public Accounting Firm” in our Proxy Statement. 49 Table of Contents PART IV Item 15. Exhibits and Financial Statement Schedules (a) The following documents are filed as part of this Report: 1. Financial Statements. Our consolidated financial statements, and related notes thereto, with the independent registered public accounting firm reports thereon are included in Part IV of this report on the pages indicated by the Index to Consolidated Financial Statements and Schedule. 2. Financial Statement Schedule . Our financial statement schedule is included in Part IV of this report on the page indicated by the Index to Consolidated Financial Statements and Schedule. This financial statement schedule should be read in conjunction with our consolidated financial statements, and related notes thereto. Schedules not listed in the Index to Consolidated Financial Statements and Schedule have been omitted because they are not applicable, not required, or the information required to be set forth therein is included in the consolidated financial statements or notes thereto. 3. Exhibits . See Item 15(b) below. (b) Exhibits . The following exhibits are included as part of, or incorporated by reference into, this Report. (c) Financial Statement Schedules . See Item 15(a) above. EXHIBIT LIST Incorporated by Reference Herein Exhibit No. Description Form Exhibit Filing Date/ Period End 3.1 Registrant’s Certificate of Incorporation, as amended. 10-Q 3.1 5/31/2017 3.2 Registrant’s Amended and Restated Bylaws . 8-K 3.1 10/23/2024 4.1 Form of Certificate for Shares of the Registrant’s Common Stock. (P) S-1 1 3/17/1993 4.2 Indenture, dated January 16, 2008, with respect to Senior Debt Securities of the Registrant, between the Registrant and U.S. Bank National Association (as successor in interest to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust) Company, N.A.), as trustee. 8-K 4.2 1/17/2008 4.3 Form of 4.250% Registered Senior Notes due 2027 (included as Exhibit A to the Officers’ Certificate filed herewith as Exhibit 4.9). 8-K 4.1 5/4/2022 4.4 Form of 5.450% Senior Notes due 2029 (included as Exhibit A to the Officers’ Certificate filed herewith as Exhibit 4.10). 8-K 4.1 4/13/2023 4.5 Officers’ Certificate, dated as of January 17, 2018, establishing the 3.950% Senior Notes due 2028. 8-K 4.1 1/17/2018 4.6 Officers’ Certificate, dated as of January 15, 2020, establishing the 3.600% Senior Notes due 2030. 8-K 4.1 1/15/2020 4.7 Officers’ Certificate, dated as of July 13, 2020, establishing the 3.000% Senior Notes due 2031. 8-K 4.1 7/13/2020 4.8 Officers’ Certificate, dated as of April 14, 2021, establishing the 1.700% Senior Notes due 2026. 8-K 4.1 4/14/2021 4.9 Officers’ Certificate, dated as of May 4, 2022, establishing the 4.250% Senior Notes due 2027. 8-K 4.1 5/4/2022 4.10 Officers’ Certificate, dated as of April 13, 2023, establishing the 5.450% Senior Notes due 2029. 8-K 4.1 4/13/2023 4.11 Description of Jabil Securities. 10-K 4.9 8/31/2021 10.1† Restated cash or deferred profit sharing plan under section 401(k). (P) S-1 3/3/1993 50 Table of Contents 10.2† Form of Indemnification Agreement between the Registrant and its Officers and Directors. (P) S-1 3/3/1993 10.3† Jabil Inc. 2011 Employee Stock Purchase Plan, as amended. 14A B 12/9/2020 10.4† Jabil Inc. 2021 Equity Incentive Plan. 14A A 12/9/2020 10.4a†** Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU EPS – Executive). 10-Q 10.1 11/30/2021 10.4b†** Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU TSR – Executive). 10-Q 10.2 11/30/2021 10.4c† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU-NON-Employee Director). 10-Q 10.3 11/30/2021 10.4d† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU Executive). 10-Q 10.5 11/30/2021 10.4e† Form of Jabil Inc. Two-Year Cliff Restricted Stock Unit Award Agreement (TBRSU – Global Executive). 10-Q 10.1 5/31/2022 10.4f†** Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU EPS – Executive). 10-Q 10.1 11/30/2022 10.4g†** Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU TSR – Executive). 10-Q 10.2 11/30/2022 10.4h† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU Executive). 10-Q 10.3 11/30/2022 10.4i† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU-NON-Employee Director). 10-Q 10.4 11/30/2022 10.4j† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU-Cash-Settled-NON-Employee Director). 10-Q 10.5 11/30/2022 10.4k†** Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU EPS – Executive). 10-Q 10.1 11/30/2023 10.4l†** Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU TSR – Executive). 10-Q 10.2 11/30/2023 10.4m† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU Executive). 10-Q 10.3 11/30/2023 10.4n† Form of Jabil Inc. Two-Year Cliff Restricted Stock Unit Award Agreement (TBRSU – Executive). 10-Q 10.4 11/30/2023 10.4o† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU-NON-Employee Director). 10-Q 10.5 11/30/2023 10.4p† Form of Jabil Inc. Restricted Stock Unit Award Agreement (TBRSU-Cash-Settled-NON-Employee Director). 10-Q 10.6 11/30/2023 10.5† Executive Deferred Compensation Plan. S-8 4.1 2/25/2011 10.6 Amendment No. 3 to Credit Agreement dated as of February 23, 2024 among Jabil Inc.; the lenders named therein; Citibank, N.A., as administrative agent; Sumitomo Mitsui Banking Corporation and Citibank, N.A., as sustainability agents; JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-syndication agents; BNP Paribas, Credit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as documentation agents; and Citibank, N.A., JPMorgan Chase Bank, N.A., BofA Securities, Inc., BNP Paribas Securities Corp., Credit Agricole Corporate and Investment Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and U.S. Bank National Association, as joint lead arrangers and joint bookrunners. 8-K 10.1 2/26/2024 10.7*** Agreement for the Sale and Purchase of Shares in Juno Newco Target Holdco Singapore Pte. Ltd. and certain Assets of Jabil Circuit (Singapore) Pte. Ltd., dated as of September 26, 2023, by and between BYD Electronic (International) Company Limited and Jabil Circuit (Singapore) Pte. Ltd., a Singapore private limited company. 10-K 10.9 8/31/2023 10.8†** Mutual Separation Agreement and Release dated as of August 21, 2023, between Jabil Inc. and Steven Borges. 8-K 10.1 8/25/2023 51 Table of Contents 10.9†** Separation, Release and Restrictive Covenants Agreement between Kenneth S. Wilson and Jabil Inc. dated May 19, 2024. 8-K 10.1 5/20/2024 10.10† Amendment to Mutual Separation Agreement and Release dated as of May 19, 2024 between Jabil Inc. and Steven D. Borges. 8-K 10.2 5/20/2024 10.11†** Mutual Separation Agreement and Release dated May 24, 2024, between Jabil Inc. and Gerald (“JJ”) Creadon. 8-K 10.1 5/31/2024 19.1* Insider Trading Policy 21.1* List of Subsidiaries. 23.1* Consent of Independent Registered Public Accounting Firm. 24.1* Power of Attorney (See Signature page). 31.1* Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer of the Registrant. 31.2* Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer of the Registrant. 32.1* Section 1350 Certification by the Chief Executive Officer of the Registrant. 32.2* Section 1350 Certification by the Chief Financial Officer of the Registrant. 97.1* Executive Compensation Recoupment (Clawback) Policy. 101 The following financial information from Jabil’s Annual Report on Form 10-K for the fiscal period ended August 31, 2024, formatted in Inline XBRL: (i) Consolidated Balance Sheets as of August 31, 2024 and August 31, 2023; (ii) Consolidated Statements of Operations for the fiscal years ended August 31, 2024, 2023 and 2022; (iii) Consolidated Statements of Comprehensive Income for the fiscal years ended August 31, 2024, 2023 and 2022; (iv) Consolidated Statements of Comprehensive Stockholders’ Equity for the fiscal years ended August 31, 2024, 2023 and 2022; (v) Consolidated Statements of Cash Flows for the fiscal years ended August 31, 2024, 2023 and 2022; and (vi) Notes to Consolidated Financial Statements. 104 Cover Page Interactive Data File (Embedded within the inline XBRL Document in Exhibit 101). † Indicates management compensatory plan, contract of arrangement. * Filed or furnished herewith. ** Certain portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. Jabil agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon request. *** Portions of the exhibit have been omitted. An unredacted copy of the agreement and a copy of any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request. Certain instruments with respect to long-term debt of the Company and its consolidated subsidiaries are not filed herewith pursuant to Item 601(b)(4)(iii) of Regulation S-K since the total amount of securities authorized under each such instrument does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. The Company agrees to furnish a copy of any such instrument to the SEC upon request. 52 Table of Contents JABIL INC. AND SUBSIDIARIES INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE Management’s Report on Internal Control over Financial Reporting 54 Reports of Independent Registered Public Accounting Firm (Ernst & Young LLP; PCAOB ID : 42 ) 55 Consolidated Financial Statements: Consolidated Balance Sheets – August 31, 2024 and 2023 58 Consolidated Statements of Operations – Fiscal years ended August 31, 2024 , 2023, a nd 2022 59 Consolidated Statements of Comprehensive Income – Fiscal years ended August 31, 2024 , 2023, and 2022 60 Consolidated Statements of Stockholders’ Equity – Fiscal years ended August 31, 2024 , 2023, an d 2022 61 Consolidated Statements of Cash Flows – Fiscal years ended August 31, 2024 , 2023, a nd 2022 62 Notes to Consolidated Financial Statements 63 Financial Statement Schedule: Schedule II – Valuation and Qualifying Accounts 97 53 Table of Contents MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management of Jabil Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as amended. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision of and with the participation of the Chief Executive Officer and the Chief Financial Officer, the Company’s management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting as of August 31, 2024. Management based this assessment on the framework as established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Management’s assessment included an evaluation of the design of the Company’s internal control over financial reporting and testing of the effectiveness of its internal control over financial reporting. Based on this assessment, management has concluded that, as of August 31, 2024, the Company maintained effective internal control over financial reporting. Ernst & Young LLP, the Company’s independent registered public accounting firm, issued an audit report on the effectiveness of the Company’s internal control over financial reporting which follows this report. October 28, 2024 54 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Jabil Inc. Opinion on Internal Control Over Financial Reporting We have audited Jabil Inc. and subsidiaries’ internal control over financial reporting as of August 31, 2024, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Jabil Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of August 31, 2024, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of August 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended August 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a), and our report dated October 28, 2024 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Tampa, Florida October 28, 2024 55 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Jabil Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Jabil Inc. and subsidiaries (the Company) as of August 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended August 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at August 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended August 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of August 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated October 28, 2024 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 56 Table of Contents Uncertain Tax Positions Description of the Matter As disclosed in Note 16 to the consolidated financial statements, the Company operates in a complex multinational tax environment and is subject to laws and regulations in various jurisdictions. Uncertain tax positions may arise from interpretations and judgments made by the Company in the application of the relevant statutes, regulations, tax rulings and case law across various jurisdictions. The Company uses significant judgment in (1) determining whether the technical merits of tax positions taken in various jurisdictions are more-likely-than-not to be sustained based on applicable tax law and (2) measuring the related amount of tax benefit that qualifies for recognition. Auditing the tax positions was challenging because the recognition and measurement of the uncertain tax positions is judgmental and is based on interpretations of statutes, regulations, tax rulings and case law across various jurisdictions. How We Addressed the Matter in Our Audit We identified and tested internal controls over the Company’s process to monitor and assess the technical merits of tax positions taken in various jurisdictions. We also identified and tested controls over the Company’s process to determine the application of the relevant statutes, regulations, tax rulings and case law, including management’s process to recognize and measure the related tax positions. In testing the recognition and measurement criteria, we involved tax professionals to assist in assessing the technical merits of the Company’s tax positions. In addition, we used our knowledge of and experience with the application of domestic and international income tax laws by the relevant tax authorities to evaluate the Company’s accounting for those tax positions. We also assessed the Company’s assumptions and data used to measure the amount of tax benefit that qualifies for recognition and tested the clerical accuracy of the calculations. Lastly, we evaluated the Company’s income tax disclosures included in Note 16 in relation to the Company’s uncertain tax positions. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2010. Tampa, Florida October 28, 2024 57 Table of Contents JABIL INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except for share data) August 31, 2024 August 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,201 $ 1,804 Accounts receivable, net of allowance for credit losses 3,533 3,647 Contract assets 1,071 1,035 Inventories, net of reserve for excess and obsolete inventory 4,276 5,206 Prepaid expenses and other current assets 1,710 1,109 Assets held for sale — 1,929 Total current assets 12,791 14,730 Property, plant and equipment, net of accumulated depreciation 3,024 3,137 Operating lease right-of-use assets 360 367 Goodwill 661 621 Intangible assets, net of accumulated amortization 143 142 Deferred income taxes 96 159 Other assets 276 268 Total assets $ 17,351 $ 19,424 LIABILITIES AND EQUITY Current liabilities: Current installments of notes payable and long-term debt $ — $ — Accounts payable 6,190 5,679 Accrued expenses 5,499 5,515 Current operating lease liabilities 93 104 Liabilities held for sale — 1,397 Total current liabilities 11,782 12,695 Notes payable and long-term debt, less current installments 2,880 2,875 Other liabilities 416 319 Non-current operating lease liabilities 284 269 Income tax liabilities 109 131 Deferred income taxes 143 268 Total liabilities 15,614 16,557 Commitments and contingencies Equity: Jabil Inc. stockholders’ equity: Preferred stock, $ 0.001 par value, authorized 10,000,000 shares; no shares issued and outstanding — — Common stock, $ 0.001 par value, authorized 500,000,000 shares; 276,381,151 and 273,949,811 shares issued and 113,744,167 and 131,294,422 shares outstanding at August 31, 2024 and August 31, 2023, respectively — — Additional paid-in capital 2,841 2,795 Retained earnings 5,760 4,412 Accumulated other comprehensive loss ( 46 ) ( 17 ) Treasury stock at cost, 162,636,984 and 142,655,389 shares as of August 31, 2024 and August 31, 2023, respectively ( 6,818 ) ( 4,324 ) Total Jabil Inc. stockholders’ equity 1,737 2,866 Noncontrolling interests — 1 Total equity 1,737 2,867 Total liabilities and equity $ 17,351 $ 19,424 See accompanying notes to Consolidated Financial Statements. 58 Table of Contents JABIL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except for per share data) Fiscal Year Ended August 31, 2024 2023 2022 Net revenue $ 28,883 $ 34,702 $ 33,478 Cost of revenue 26,207 31,835 30,846 Gross profit 2,676 2,867 2,632 Operating expenses: Selling, general and administrative 1,160 1,206 1,154 Research and development 39 34 33 Amortization of intangibles 40 33 34 Restructuring, severance and related charges 296 57 18 Gain from the divestiture of businesses ( 942 ) — — Acquisition and divestiture related charges 70 — — Operating income 2,013 1,537 1,393 Loss on debt extinguishment — — 4 Other expense 89 69 12 Interest expense, net 173 206 146 Income before income tax 1,751 1,262 1,231 Income tax expense 363 444 235 Net income 1,388 818 996 Net income attributable to noncontrolling interests, net of tax — — — Net income attributable to Jabil Inc. $ 1,388 $ 818 $ 996 Earnings per share attributable to the stockholders of Jabil Inc.: Basic $ 11.34 $ 6.15 $ 7.06 Diluted $ 11.17 $ 6.02 $ 6.90 Weighted average shares outstanding: Basic 122.4 133.0 141.2 Diluted 124.3 135.9 144.4 See accompanying notes to Consolidated Financial Statements. 59 Table of Contents JABIL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Fiscal Year Ended August 31, 2024 2023 2022 Net income $ 1,388 $ 818 $ 996 Other comprehensive (loss) income: Change in foreign currency translation ( 5 ) 25 ( 68 ) Change in derivative instruments ( 2 ) 17 33 Actuarial (loss) gain ( 17 ) ( 19 ) 14 Prior service (cost) credit ( 5 ) 2 4 Total other comprehensive (loss) income ( 29 ) 25 ( 17 ) Comprehensive income $ 1,359 $ 843 $ 979 Comprehensive income attributable to noncontrolling interests — — — Comprehensive income attributable to Jabil Inc. $ 1,359 $ 843 $ 979 See accompanying notes to Consolidated Financial Statements. 60 Table of Contents JABIL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in millions) Fiscal Year Ended August 31, 2024 2023 2022 Total stockholders’ equity, beginning balances $ 2,867 $ 2,452 $ 2,137 Common stock: — — — Additional paid-in capital: Beginning balances 2,795 2,655 2,533 Shares issued under employee stock purchase plan 58 51 45 Purchase of noncontrolling interest ( 2 ) — — Treasury shares purchased ( 96 ) — — Recognition of stock-based compensation 86 89 77 Ending balances 2,841 2,795 2,655 Retained earnings: Beginning balances 4,412 3,638 2,688 Declared dividends ( 40 ) ( 44 ) ( 46 ) Net income attributable to Jabil Inc. 1,388 818 996 Ending balances 5,760 4,412 3,638 Accumulated other comprehensive loss: Beginning balances ( 17 ) ( 42 ) ( 25 ) Total other comprehensive (loss) income ( 29 ) 25 ( 17 ) Ending balances ( 46 ) ( 17 ) ( 42 ) Treasury stock: Beginning balances ( 4,324 ) ( 3,800 ) ( 3,060 ) Purchases of treasury stock under employee stock plans ( 68 ) ( 36 ) ( 44 ) Treasury shares purchased ( 2,404 ) ( 487 ) ( 696 ) Excise taxes related to treasury shares purchased ( 22 ) ( 1 ) — Ending balances ( 6,818 ) ( 4,324 ) ( 3,800 ) Noncontrolling interests: Beginning balances 1 1 1 Net income attributable to noncontrolling interests, net of tax — — — Purchase of noncontrolling interest ( 1 ) — — Ending balances — 1 1 Total stockholders’ equity, ending balances $ 1,737 $ 2,867 $ 2,452 See accompanying notes to Consolidated Financial Statements. 61 Table of Contents JABIL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Fiscal Year Ended August 31, 2024 2023 2022 Cash flows provided by operating activities: Net income $ 1,388 $ 818 $ 996 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 696 924 925 Restructuring and related charges 95 5 ( 1 ) Recognition of stock-based compensation expense and related charges 89 95 81 Deferred income taxes ( 64 ) 85 ( 13 ) Gain from the divestiture of businesses ( 942 ) — — Other, net ( 18 ) 13 10 Change in operating assets and liabilities, exclusive of net assets acquired: Accounts receivable ( 200 ) 267 ( 878 ) Contract assets ( 32 ) 171 ( 214 ) Inventories 1,179 370 ( 1,725 ) Prepaid expenses and other current assets ( 587 ) ( 214 ) ( 367 ) Other assets 6 53 ( 29 ) Accounts payable, accrued expenses and other liabilities 106 ( 853 ) 2,866 Net cash provided by operating activities 1,716 1,734 1,651 Cash flows provided by (used in) investing activities: Acquisition of property, plant and equipment ( 784 ) ( 1,030 ) ( 1,385 ) Proceeds and advances from sale of property, plant and equipment 123 322 544 Cash paid for business and intangible asset acquisitions, net of cash ( 90 ) ( 29 ) ( 18 ) Proceeds from the divestiture of businesses 2,108 50 — Other, net ( 6 ) ( 36 ) 1 Net cash provided by (used in) investing activities 1,351 ( 723 ) ( 858 ) Cash flows used in financing activities: Borrowings under debt agreements 1,992 4,047 3,767 Payments toward debt agreements ( 2,103 ) ( 4,204 ) ( 3,890 ) Payments to acquire treasury stock ( 2,500 ) ( 487 ) ( 696 ) Dividends paid to stockholders ( 42 ) ( 45 ) ( 48 ) Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan 58 51 45 Treasury stock minimum tax withholding related to vesting of restricted stock ( 68 ) ( 36 ) ( 44 ) Other, net ( 5 ) ( 6 ) ( 22 ) Net cash used in financing activities ( 2,668 ) ( 680 ) ( 888 ) Effect of exchange rate changes on cash and cash equivalents ( 2 ) ( 5 ) 6 Net increase (decrease) in cash and cash equivalents 397 326 ( 89 ) Cash and cash equivalents at beginning of period 1,804 1,478 1,567 Cash and cash equivalents at end of period $ 2,201 $ 1,804 $ 1,478 Supplemental disclosure information: Interest paid, net of capitalized interest $ 167 $ 211 $ 150 Income taxes paid, net of refunds received $ 502 $ 319 $ 209 See accompanying notes to Consolidated Financial Statements. 62 Table of Contents JABIL INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements 1. Description of Business and Summary of Significant Accounting Policies Jabil Inc. (together with its subsidiaries, herein referred to as the “Company”) is one of the leading providers of manufacturing services and solutions. The Company provides comprehensive electronics design, production, and product management services to companies in various industries and end markets. The Company’s services combine a highly automated, continuous flow manufacturing approach with advanced electronic design and design for manufacturability technologies. The Company is headquartered in St. Petersburg, Florida and has manufacturing operations principally in the Americas, Europe, and Asia. Significant accounting policies followed by the Company are as follows: Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts and operations of the Company, and its wholly owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation. Use of Accounting Estimates Management is required to make estimates and assumptions during the preparation of the consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates and assumptions. Assets Held for Sale The Company classifies assets and related liabilities as held for sale when: (i) management has committed to a plan to sell the net assets, (ii) the net assets are available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the net assets is probable within one year, (v) the net assets are being actively marketed for sale at price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes will be made to the plan to sell the net assets. Assets and liabilities held for sale are presented separately on our consolidated balance sheets at the lower of cost or fair value, less costs to sell. Depreciation and amortization expense for long-lived assets are not recorded while these assets are classified as held for sale. For each period that assets are classified as being held for sale, they are tested for recoverability. See Note 17 – “Business Acquisitions and Divestitures” for additional information. Cash and Cash Equivalents Cash equivalents consist of investments that are readily convertible to cash with original maturities of 90 days or less. Accounts Receivable Accounts receivable consist of trade receivables and other miscellaneous receivables. The Company maintains an allowance for credit losses based on historical losses, the age of past due receivables, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from customers. Bad debts are charged to this allowance after all attempts to collect the balance are exhausted. As the financial condition and circumstances of the Company’s customers change, adjustments to the allowance for credit losses are made as necessary. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an asset when revenue is recognized prior to invoicing a customer (“contract assets”) while a liability is recognized when a customer provides consideration prior to the Company transferring control of the goods or services (“contract liabilities”). Amounts recognized as contract assets are generally transferred to receivables in the succeeding quarter due to the short-term nature of the manufacturing cycle. Contract assets are classified separately on the Consolidated Balance Sheets and transferred to receivables when right to payment becomes unconditional. 63 Table of Contents The Company maintains an allowance for credit losses related to contract assets based on historical losses, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from our customers. Inventories Inventories are stated at the lower of cost (on a first in, first out (FIFO) basis) and net realizable value. Inventory is valued based on current and forecasted usage, customer inventory-related contractual obligations and other lower of cost and net realizable value considerations. If actual market conditions or customer product demands are less favorable than those projected, additional valuation adjustments may be necessary. Fulfillment Costs The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract or anticipated contracts, ii) are expected to generate or enhance the Company’s resources that will be used to satisfy the performance obligation under the contract, and iii) are expected to be recovered through revenue generated from the contract. Capitalized fulfillment costs are amortized to cost of revenue as the Company satisfies the related performance obligations under the contract with approximate lives ranging from 1 year to 3 years. These costs, which are included in prepaid expenses and other current assets and other assets on the Consolidated Balance Sheets, generally represent upfront costs incurred to prepare for manufacturing activities. The Company assesses the capitalized fulfillment costs for impairment at the end of each reporting period. The Company will recognize an impairment loss to the extent the carrying amount of the capitalized costs exceeds the recoverable amount. Recoverability is assessed by considering the capitalized fulfillment costs in relation to the forecasted profitability of the related manufacturing performance obligations. As of August 31, 2024, and 2023, capitalized costs to fulfill were $ 141 million and $ 203 million, respectively. Amortization of fulfillment costs were $ 80 million, $ 91 million, and $ 74 million during the fiscal years ended August 31, 2024, 2023, and 2022, respectively. Immaterial impairments for fulfillment costs were recognized during the fiscal years ended August 31, 2024, 2023, and 2022, respectively. During the fiscal year ended August 31, 2024, the Company had $ 47 million of capitalized fulfillment costs which were disposed of as part of the divestiture of the Mobility Business. See Note 17 - “Business Acquisitions and Divestitures” for additional information. Property, Plant and Equipment, net Property, plant and equipment is capitalized at cost and depreciated using the straight-line depreciation method over the estimated useful lives of the respective assets. 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 Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold or retired is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Operations as a component of operating income. Leases The Company primarily has leases for buildings, machinery, and equipment with lease terms ranging from 1 year to 32 years. Leases for other classes of assets are not significant. For any leases with an initial term in excess of 12 months, the Company determines whether an arrangement is a lease at contract inception by evaluating if the contract conveys the right to use and control the specific property or equipment. Certain lease agreements contain purchase or renewal options. These options are included in the lease term when it is reasonably certain that the Company will exercise that option. Generally, the Company’s lease agreements do not contain material restrictive covenants. 64 Table of Contents Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized based on the present value of future lease payments over the lease term at the lease commencement date. When determining the present value of future payment, the Company uses the incremental borrowing rate when the implicit rate is not readily determinable. Any payment deemed probable under residual value guarantees is included in lease payments. Any variable payments, other than those that depend on an index or rate, are excluded from right-of-use assets and lease liabilities. Leases with an initial term of 12 months or less are not recorded as right-of-use assets and lease liabilities in the Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term. The Company has elected the practical expedient to combine lease and non-lease components for building and real estate leases. Certain equipment and buildings held under finance leases are classified as property, plant and equipment and the related obligation is recorded as accrued expenses and other liabilities on the Consolidated Balance Sheets. Goodwill and Other Intangible Assets The Company accounts for goodwill in a business combination as the excess of the cost over the fair value of net assets acquired and is assigned to the reporting unit in which the acquired business will operate. The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the Company determines the fair value of its reporting units based on an average weighting of both projected discounted future results and the use of comparative market multiples. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a loss recognized in the amount equal to that excess. The recoverability of indefinite-lived intangible assets is measured by comparing the carrying amount to the fair value. The Company may elect to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible is impaired. If the qualitative assessment is not performed or if the Company determines that it is not more likely than not that the fair value of an indefinite-lived intangible exceeds the carrying value, the Company determines the fair value principally based on a variation of the income approach, known as the relief from royalty method. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, the indefinite-lived intangible asset is considered impaired. Business combinations can also result in other intangible assets being recognized. Finite-lived intangible assets are amortized on either a straight-line or accelerated basis over their estimated useful life and include contractual agreements and customer relationships, tradenames and intellectual property. No significant residual values are estimated for the amortizable intangible assets. Long-lived Assets Long-lived assets, such as property, plant, and equipment, and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of the asset or asset group is measured by comparing its carrying amount to the undiscounted future net cash flows the asset is expected to generate. If the carrying amount of an asset or asset group is not recoverable, the Company recognizes an impairment loss based on the excess of the carrying amount of the long-lived asset or asset group over its respective fair value, which is generally determined as the present value of estimated future cash flows or as the appraised value. Derivative Instruments All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. 65 Table of Contents For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized immediately in current earnings. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of AOCI, net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The ineffective and excluded portions of the gain or loss is recognized immediately in current earnings. For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the gain or loss on the derivative instrument is included in change in foreign currency translation in OCI to offset the change in the carrying value of the net investment being hedged until the complete or substantially complete liquidation of the hedged foreign operation. The ineffective and excluded portions of the gain or loss is recognized immediately in current earnings. For derivative instruments that are not designated as hedging instruments, gains and losses from changes in fair values are recognized immediately in current earnings. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. See Note 11 – “Derivative Financial Instruments and Hedging Activities” for additional information. Foreign Currency Transactions For the Company’s foreign subsidiaries that use a currency other than the U.S. dollar as their functional currency, the assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rate for the period. The effects of these translation adjustments are reported in accumulated other comprehensive income. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in operating income. Revenue Recognition The Company provides comprehensive electronics design, production and product management services to companies in various industries and end markets. The Company derives substantially all of its revenue from production and product management services (collectively referred to as “manufacturing services”), which encompasses the act of producing tangible products that are built to customer specifications, which are then provided to the customer. The Company generally enters into manufacturing service contracts with its customers that provide the framework under which business will be conducted and customer purchase orders will be received for specific quantities and with predominantly fixed pricing. As a result, the Company considers its contract with a customer to be the combination of the manufacturing service contract and the purchase order, or any agreements or other similar documents. The majority of the Company's manufacturing service contracts relate to manufactured products which have no alternative use and for which the Company has an enforceable right to payment for the work completed to date. As a result, revenue is recognized over time when or as the Company transfers control of the promised products or services (known as performance obligations) to its customers. For certain other contracts with customers that do not meet the over time revenue recognition criteria, transfer of control occurs at a point in time which generally occurs upon delivery and transfer of risk and title to the customer. Most of the Company's contracts have a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct and is distinct within the context of the contract. For the majority of customers, performance obligations are satisfied over time based on the continuous transfer of control as manufacturing services are performed and are generally completed in less than one year. The Company also derives revenue to a lesser extent from electronic design services to certain customers. Revenue from electronic design services is generally recognized over time as the services are performed. For the Company’s over time customers, it believes the measure of progress which best depicts the transfer of control is based on costs incurred to date, relative to total estimated cost at completion (i.e., an input method). This method is a faithful depiction of the transfer of goods or services because it results in the recognition of revenue on the basis of the Company's to-date efforts in the satisfaction of a performance obligation relative to the total expected efforts in the satisfaction of the performance obligation. The transaction price of each performance obligation is generally based upon the contractual standalone selling price of the product or service. 66 Table of Contents Certain contracts with customers include variable consideration, such as periodic cost of materials adjustments, rebates, discounts, or returns. The Company recognizes estimates of this variable consideration that are not expected to result in a significant revenue reversal in the future, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. The Company is responsible for procuring certain components from suppliers for the manufacturing of finished goods at the direction of certain customers. If the Company does not obtain control of these components before they are transferred to the customer, the Company accounts for revenue associated with such components on a net basis. Revenue associated with components procured directly from customers is accounted for on a net basis if the components do not constitute a distinct good or service from the customer. As of August 31, 2024, and 2023, the Company had $ 734 million and $ 218 million, respectively, of components included in prepaid expenses and other current assets in the Company’s Consolidated Balance Sheets, related to purchases made to procure components for customers whereby the associated revenue is expected to be accounted for on a net basis once transferred to the customer. Taxes collected from the Company’s customers and remitted to governmental authorities are presented within the Company’s Consolidated Statements of Operations on a net basis and are excluded from the transaction price. The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the goods. Accordingly, the Company records customer payments of shipping and handling costs as a component of net revenue and classifies such costs as a component of cost of revenue. Stock-Based Compensation The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The stock-based compensation expense for time-based and performance-based restricted stock unit awards (“restricted stock units”) is measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock. For restricted stock units with performance conditions, stock-based compensation expense is originally based on the number of shares that would vest if the Company achieved 100 % of the performance goal, which is the intended outcome at the grant date. Throughout the requisite service period, management monitors the probability of achievement of the performance condition. If it becomes probable, based on the Company’s performance, that more or less than the current estimate of the awarded shares will vest, an adjustment to stock-based compensation expense will be recognized as a change in accounting estimate in the period that such probability changes. The stock-based compensation expense for market-based restricted stock units is measured at fair value on the date of grant. The market conditions are considered in the grant date fair value using a Monte Carlo valuation model, which utilizes multiple input variables to determine the probability of the Company achieving the specified market conditions. Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The Company currently expects to satisfy share-based awards with registered shares available to be issued. See Note 13 – “Stockholders’ Equity” for further discussion of stock-based compensation expense. Income Taxes Deferred tax assets (“DTAs”) and liabilities (“DTLs”) are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. DTAs and DTLs are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on DTAs and DTLs of a change in the tax rate is recognized in income in the period that includes the enactment date of the rate change. The Company records a valuation allowance to reduce its DTAs to the amount that is more likely than not to be realized. The Company considers future taxable income and ongoing feasible tax planning strategies in assessing the need for the valuation allowance. The Company records the effects of the Global Intangible Low-Taxed Income (“GILTI”) as a period cost and applies the incremental cash tax savings approach when analyzing the impact GILTI could have on its U.S. valuation allowance. The incremental cash tax savings approach considers the realizable benefit of a net operating loss and deferred tax assets by comparing the incremental cash taxes in the calculation of GILTI with and without the net operating loss and other DTAs. 67 Table of Contents Earnings Per Share The Company calculates its basic earnings per share by dividing net income attributable to Jabil Inc. by the weighted average number of shares of common stock outstanding during the period. The Company’s diluted earnings per share is calculated in a similar manner but includes the effect of dilutive securities. The difference between the weighted average number of basic shares outstanding and the weighted average number of diluted shares outstanding is primarily due to dilutive unvested restricted stock units. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be antidilutive. Performance-based restricted stock units are considered dilutive when the related performance criterion have been met assuming the end of the reporting period represents the end of the performance period. Market-based restricted stock units are considered dilutive when the related market criterion have been met assuming the end of the reporting period represents the end of the performance period. All potential shares of common stock are antidilutive in periods of net loss. 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, 2024 2023 2022 Restricted stock units 343.6 383.1 209.4 Fair Value of Financial Instruments Fair value is categorized in one of three levels based on the lowest level of significant input used. Level 1 – quoted market prices in active markets for identical assets and liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable inputs for the asset or liability. 2. Trade Accounts Receivable Sale Programs The Company regularly sells designated pools of high credit quality trade accounts receivable under uncommitted trade accounts receivable sale programs to unaffiliated financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the respective financial institutions. The Company continues servicing the receivables sold and in exchange receives an immaterial servicing fee under each of the trade accounts receivable sale programs. The Company does not record a servicing asset or liability on the Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. Transfers of the receivables under the trade accounts receivable sale programs are accounted for as sales and, accordingly, net receivables sold under the trade accounts receivable sale programs are excluded from accounts receivable on the Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. 68 Table of Contents The following is a summary of the trade accounts receivable sale programs with unaffiliated financial institutions where the Company may elect to sell receivables and the unaffiliated financial institution may elect to purchase, at a discount, on an ongoing basis (in millions): Program Maximum Amount (1) Type of Facility Expiration Date A $ 350 Uncommitted (2) B $ 120 Uncommitted (2) C 1,900 CNY Uncommitted (2) D $ 150 Uncommitted May 4, 2028 (2) E $ 170 Uncommitted (3) F $ 50 Uncommitted (3) G $ 100 Uncommitted (2) H $ 800 Uncommitted (2) I $ 250 Uncommitted (2) J 8,100 INR Uncommitted (2) K $ 100 Uncommitted (2) L $ 75 Uncommitted January 23, 2025 (2) (1) Maximum amount of trade accounts receivable that may be sold under a facility at any one time. (2) Any party may elect to terminate the agreement upon 30 days prior notice. (3) Any party may elect to terminate the agreement upon 15 days prior notice. In connection with the trade accounts receivable sale programs, the Company recognized the following (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Trade accounts receivable sold $ 8,214 $ 10,784 $ 8,513 Cash proceeds received $ 8,170 $ 10,748 $ 8,504 Pre-tax losses on sale of receivables (1) $ 44 $ 36 $ 9 (1) Recorded to other expense within the Consolidated Statements of Operations. 3. Inventories Inventories consist of the following (in millions): August 31, 2024 August 31, 2023 (1) Raw materials $ 3,903 $ 4,804 Work in process 190 217 Finished goods 246 243 Reserve for excess and obsolete inventory ( 63 ) ( 58 ) Inventories, net $ 4,276 $ 5,206 (1) Excludes $ 559 million of inventories, net classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. 69 Table of Contents 4. Property, Plant and Equipment Property, plant and equipment consists of the following (in millions): August 31, 2024 August 31, 2023 (1) Land and improvements $ 108 $ 107 Buildings 1,451 1,281 Leasehold improvements 681 676 Machinery and equipment 4,278 4,362 Furniture, fixtures and office equipment 218 229 Computer hardware and software 824 840 Transportation equipment 7 7 Construction in progress 193 147 Property, plant and equipment 7,760 7,649 Less accumulated depreciation and amortization 4,736 4,512 Property, plant and equipment, net $ 3,024 $ 3,137 (1) Excludes $ 724 million of property, plant and equipment, net classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. Depreciation and maintenance and repair expenses were as follows for the periods indicated (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Depreciation expense $ 656 $ 891 $ 891 Maintenance and repair expense $ 335 $ 431 $ 395 As of August 31, 2024, and 2023, the Company had $ 122 million and $ 357 million, respectively, included in accounts payable for the acquisition of property, plant, and equipment, which is considered a non-cash investing activity in the Consolidated Statements of Cash Flows. 5. Leases The following table sets forth the amount of lease assets and lease liabilities included on the Company's Consolidated Balance Sheets, as of the periods indicated (in millions): Financial Statement Line Item August 31, 2024 August 31, 2023 (1) Assets Operating lease assets Operating lease right-of-use assets $ 360 $ 367 Finance lease assets (2) Property, plant and equipment, net 378 310 Total lease assets $ 738 $ 677 Liabilities Current Operating lease liabilities Current operating lease liabilities $ 93 $ 104 Finance lease liabilities Accrued expenses 119 74 Non-current Operating lease liabilities Non-current operating lease liabilities 284 269 Finance lease liabilities Other liabilities 235 212 Total lease liabilities $ 731 $ 659 (1) Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. (2) Net of accumulated amortization of $ 162 million and $ 199 million as of August 31, 2024 and 2023, respectively. 70 Table of Contents The following table is a summary of expenses related to leases included on the Company's Consolidated Statements of Operations, for the periods indicated (in millions): Fiscal Year Ended August 31, 2024 2023 Operating lease cost $ 118 $ 147 Finance lease cost Amortization of leased assets 50 89 Interest on lease liabilities 10 9 Net lease cost (1)(2) $ 178 $ 245 (1) Lease costs are primarily recognized in cost of revenue. (2) Excludes immaterial amounts of short term leases, variable lease costs and sublease income. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases, as of the periods indicated: August 31, 2024 August 31, 2023 Weighted-average remaining lease term Weighted-average discount rate Weighted-average remaining lease term Weighted-average discount rate Operating leases 5.7 years 3.80 % 5.2 years 3.55 % Finance leases 5.2 years 4.23 % 2.1 years 3.84 % The following table sets forth other supplemental information related to the Company's lease portfolio (in millions): Fiscal Year Ended August 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases (1) $ 116 $ 135 Operating cash flows for finance leases (1) $ 10 $ 9 Financing activities for finance leases (2) $ 111 $ 157 Non-cash right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 109 $ 110 Finance leases $ 163 $ 131 (1) Included in accounts payable, accrued expenses and other liabilities in Operating Activities of the Company's Consolidated Statements of Cash Flows. (2) Included in payments toward debt agreements in Financing Activities of the Company's Consolidated Statements of Cash Flows. The following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2024 (in millions): Fiscal Year Ended August 31, Operating Leases (1) Finance Leases (1)(2)(3) Total 2025 $ 106 $ 129 $ 235 2026 83 124 207 2027 61 23 84 2028 48 18 66 2029 41 13 54 Thereafter 86 91 177 Total lease payments $ 425 $ 398 $ 823 Less: Imputed interest ( 48 ) ( 44 ) ( 92 ) Present value of lease liabilities $ 377 $ 354 $ 731 (1) Excludes $ 25 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. 71 Table of Contents (2) Includes a $ 94 million lease liability related to a lease with a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. The Company’s maximum exposure to loss related to the VIE is $ 124 million. (3) Excludes $ 274 million of residual value guarantees that could potentially come due in future periods. The Company does not believe it is probable that any amounts will be owed under these guarantees. Therefore, no amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities. 6. Goodwill and Other Intangible Assets The Company completed its annual impairment analysis for goodwill during the fourth quarter of fiscal year 2024. The quantitative assessment was performed, and the Company determined that the fair values of the reporting units exceeded the carrying values and that no impairment existed as of the date of the impairment analysis. In connection with the divestiture of the Company’s Mobility Business, the Company performed an impairment analysis for goodwill recorded within the reporting unit impacted by the divestiture and the indefinite-lived (“Green Point”) trade name during the second quarter of fiscal year 2024. See Note 17 – “Business Acquisitions and Divestitures” for additional information. The following table presents the changes in goodwill allocated to the Company’s reportable segments, Electronics Manufacturing Services (“EMS”) and Diversified Manufacturing Services (“DMS”), during the fiscal years ended August 31, 2024 and 2023 (in millions): EMS DMS Total Balance as of August 31, 2022 $ 79 $ 625 $ 704 Acquisitions and adjustments — 24 24 Change in foreign currency exchange rates 1 9 10 Goodwill classified as held for sale — ( 117 ) ( 117 ) Balance as of August 31, 2023 80 541 621 Acquisitions and adjustments — 34 34 Change in foreign currency exchange rates — 6 6 Balance as of August 31, 2024 $ 80 $ 581 $ 661 The following table is a summary of the Company’s gross goodwill balances and accumulated impairments as of the periods indicated (in millions): August 31, 2024 August 31, 2023 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount (1) Accumulated Impairment Goodwill $ 1,681 $ 1,020 $ 1,641 $ 1,020 (1) Excludes $ 117 million of goodwill classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. The following table presents the Company’s total purchased intangible assets as of August 31, 2024, and 2023 (in millions): Weighted Average Amortization Period (in years) August 31, 2024 August 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contractual agreements and customer relationships 12 $ 361 $ ( 270 ) $ 91 $ 320 $ ( 251 ) $ 69 Intellectual property 9 198 ( 181 ) 17 198 ( 177 ) 21 Finite-lived trade names (1) 2 130 ( 95 ) 35 79 ( 78 ) 1 Trade names (1) Indefinite — — — 51 — 51 Total intangible assets 10 $ 689 $ ( 546 ) $ 143 $ 648 $ ( 506 ) $ 142 (1) In the second quarter of fiscal year 2024 and in connection with the divestiture of the Mobility Business, the Company made a strategic decision that the indefinite-lived (“Green Point”) trade name acquired during the acquisition of Green Point should no longer be classified as an indefinite-lived intangible asset. See Note 17 – “Business Acquisitions and Divestitures” for additional information. 72 Table of Contents Intangible asset amortization for fiscal years 2024, 2023, and 2022 was approximately $ 40 million, $ 33 million, and $ 34 million, respectively. The estimated future amortization expense is as follows (in millions): Fiscal Year Ended August 31, 2025 $ 47 2026 27 2027 18 2028 16 2029 9 Thereafter 26 Total $ 143 7. Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of August 31, 2024, and 2023 are summarized below (in millions): Maturity Date August 31, 2024 August 31, 2023 3.950 % Senior Notes (1)(2) Jan 12, 2028 $ 498 $ 497 3.600 % Senior Notes (1)(2) Jan 15, 2030 497 496 3.000 % Senior Notes (1)(2) Jan 15, 2031 594 593 1.700 % Senior Notes (1)(2) Apr 15, 2026 499 498 4.250 % Senior Notes (1)(2) May 15, 2027 496 495 5.450 % Senior Notes (1)(2)(3) Feb 1, 2029 296 296 Borrowings under credit facilities (4)(5) Jan 22, 2026 and Jan 22, 2028 — — Borrowings under loans Jul 31, 2026 — — Total notes payable and long-term debt 2,880 2,875 Less current installments of notes payable and long-term debt — — Notes payable and long-term debt, less current installments $ 2,880 $ 2,875 (1) The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs. (2) The Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations. (3) On April 13, 2023, the Company issued $ 300 million of publicly registered 5.450 % Senior Notes due 2029 (the “ 5.450 % Senior Notes”). The Company used the net proceeds for general corporate purposes, including, together with available cash, repayment of the $ 300 million aggregate principal amount of the Company’s 4.900 % Senior Notes due in July 2023. (4) On February 23, 2024, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (as amended, the “Credit Facility”). The Amendment, among other things, (i) instituted certain amendments to the sustainability-linked adjustments to the interest rates applicable to borrowings under the Company’s three-year revolving credit facility (the “ Three-Year Revolving Credit Facility”) and the Company’s five-year revolving credit facility (the “ Five-Year Revolving Credit Facility”) and (ii) extended the termination date of the Three-Year Revolving Credit Facility (with respect to the available commitments of the extending lenders) to January 22, 2026, and of the Five-Year Revolving Credit Facility (with respect to the available commitments of the extending lenders) to January 22, 2028, in each case subject to an additional one-year extension at the option of the Company. (5) As of August 31, 2024, the Company has $ 4.0 billion in available unused borrowing capacity under its revolving credit facilities. The Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $ 3.2 billion under its commercial paper program. In the ordinary course of business, the Company has letters of credit and surety bonds with banks and insurance companies outstanding of $ 58 million as of August 31, 2024. Unused letters of credit were $ 60 million as of August 31, 2024. Letters of credit and surety bonds are generally available for draw down in the event the Company does not perform. 73 Table of Contents Debt Maturities Debt maturities as of August 31, 2024 are as follows (in millions): Fiscal Year Ended August 31, 2025 $ — 2026 499 2027 496 2028 498 2029 296 Thereafter 1,091 Total $ 2,880 Debt Covenants Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the revolving credit facilities contain debt leverage and interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 3.950 %, 3.600 %, 3.000 %, 1.700 %, 4.250 % or 5.450 % Senior Notes upon a change of control. As of August 31, 2024, and 2023, the Company was in compliance with its debt covenants. Fair Value Refer to Note 18 – “Fair Value Measurements” for the estimated fair values of the Company’s notes payable and long-term debt. 8. Asset-Backed Securitization Programs Certain Jabil entities participating in the global asset-backed securitization program continuously sell designated pools of trade accounts receivable to a special purpose entity, which in turn sells certain of the receivables at a discount to conduits administered by an unaffiliated financial institution on a monthly basis. In addition, the foreign entity participating in the global asset-backed securitization program sells certain receivables at a discount to conduits administered by an unaffiliated financial institution on a daily basis. The Company continues servicing the receivables sold and in exchange receives an immaterial servicing fee under the global asset-backed securitization programs. The Company does not record a servicing asset or liability on the Consolidated Balance Sheets as the Company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. The special purpose entity in the global asset-backed securitization program is a wholly-owned subsidiary of the Company and is included in the Company’s Consolidated Financial Statements. Certain unsold receivables covering up to the maximum amount of net cash proceeds available under the domestic, or U.S., portion of the global asset-backed securitization program are pledged as collateral to the unaffiliated financial institution as of August 31, 2024. The global asset-backed securitization program expires on November 25, 2024. Effective February 20, 2024, the terms of the global asset-backed securitization program were amended to increase the maximum amount of net cash proceeds available at any one time from $ 600 million to $ 700 million. As of August 31, 2024, the Company had no available liquidity under its global asset-backed securitization program. Transfers of the receivables under the asset-backed securitization programs are accounted for as sales and, accordingly, net receivables sold under the asset-backed securitization programs are excluded from accounts receivable on the Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. 74 Table of Contents In connection with the asset-backed securitization programs, the Company recognized the following (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Trade accounts receivable sold $ 4,000 $ 4,101 $ 3,932 Cash proceeds received (1) $ 3,953 $ 4,061 $ 3,919 Pre-tax losses on sale of receivables (2) $ 47 $ 40 $ 13 (1) The amounts primarily represent proceeds from collections reinvested in revolving-period transfers. (2) Recorded to other expense within the Consolidated Statements of Operations. The global asset-backed securitization program requires compliance with several covenants including compliance with the interest ratio and debt to EBITDA ratio of the Credit Facility. As of August 31, 2024, 2023, and 2022, the Company was in compliance with all covenants under the global asset-backed securitization program. 9. Accrued Expenses Accrued expenses consist of the following (in millions): August 31, 2024 August 31, 2023 (1) Inventory deposits $ 1,582 $ 1,839 Contract liabilities (2) 1,017 886 Accrued compensation and employee benefits 699 743 Other accrued expenses 2,201 2,047 Accrued expenses $ 5,499 $ 5,515 (1) Excludes $ 364 million of accrued expenses classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. (2) Revenue recognized during the fiscal years ended August 31, 2024 and 2023 that was included in the contract liability balance as of August 31, 2023, and 2022 was $ 507 million and $ 539 million, respectively. 10. Postretirement and Other Employee Benefits Postretirement Benefits The Company has a qualified defined benefit pension plan for employees of Jabil Circuit UK Limited (the “UK plan”). The UK plan, which is closed to new participants, provides benefits based on average employee earnings over a three-year service period preceding retirement and length of employee service. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in UK employee benefit and tax laws plus such additional amounts as are deemed appropriate by the Company. The Company also has a qualified defined benefit pension plan for employees in Switzerland (the “Switzerland plan”). The Switzerland plan provides benefits based on average employee earnings over an approximately 8-year service period preceding retirement and length of employee service. The Company’s policy is to contribute amounts sufficient to meet minimum funding requirements as set forth in Switzerland employee benefit and tax laws plus such additional amounts as are deemed appropriate by the Company. Additionally, as a result of acquiring various other operations in Europe, Asia and Mexico the Company assumed both qualified and unfunded nonqualified retirement benefits covering eligible employees who meet age and service requirements (the “other plans”). The UK plan, Switzerland plan, and other plans are collectively referred to herein as the “plans.” 75 Table of Contents Benefit Obligation and Plan Assets The projected benefit obligations (“PBO”) and plan assets, changes to the PBO and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in millions): Fiscal Year Ended August 31, 2024 2023 Change in PBO Beginning PBO $ 461 $ 432 Service cost 21 18 Interest cost 12 12 Actuarial loss (gain) 32 ( 23 ) Settlements paid from plan assets (1) ( 43 ) ( 27 ) Total benefits paid ( 10 ) ( 16 ) Plan participants’ contributions 13 22 Plan amendments 11 — Effect of conversion to U.S. dollars 16 43 Ending PBO $ 513 $ 461 Change in plan assets Beginning fair value of plan assets 486 459 Actual return on plan assets 41 ( 16 ) Settlements paid from plan assets (1) ( 43 ) ( 27 ) Employer contributions 17 18 Benefits paid from plan assets ( 10 ) ( 15 ) Plan participants’ contributions 13 22 Effect of conversion to U.S. dollars 20 45 Ending fair value of plan assets $ 524 $ 486 Funded status $ 11 $ 25 Amounts recognized in the Consolidated Balance Sheets Accrued benefit liability, current $ 2 $ 1 Accrued benefit asset, noncurrent $ 13 $ 26 Accumulated other comprehensive loss (2) Actuarial gain, before tax $ ( 54 ) $ ( 71 ) Prior service cost, before tax $ 23 $ 16 (1) The settlements recognized during fiscal years 2024 and 2023 relate primarily to the Switzerland plan. (2) The Company anticipates amortizing $ 2 million and $ 5 million, before tax, of net actuarial gain and prior service cost balances, respectively, to net periodic cost in fiscal year 2025. Accumulated Benefit Obligation The following table summarizes the total accumulated benefit obligations (“ABO”), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets, and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets for fiscal years 2024 and 2023 (in millions): August 31, 2024 August 31, 2023 ABO $ 495 $ 441 Plans with ABO in excess of plan assets ABO $ 41 $ 41 Fair value of plan assets $ 14 $ 15 Plans with PBO in excess of plan assets PBO $ 50 $ 52 Fair value of plan assets $ 14 $ 15 76 Table of Contents Net Periodic Benefit Cost The following table provides information about the net periodic benefit cost for the plans for fiscal years 2024, 2023 and 2022 (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Service cost (1) $ 21 $ 18 $ 25 Interest cost (2) 12 12 4 Expected long-term return on plan assets (2) ( 17 ) ( 17 ) ( 17 ) Recognized actuarial gain (2) ( 7 ) ( 7 ) ( 6 ) Amortization of actuarial gains (2)(3) ( 3 ) ( 7 ) ( 8 ) Net settlement loss (2) — — 1 Amortization of prior service costs (2) 5 4 4 Net periodic benefit cost $ 11 $ 3 $ 3 (1) Service cost is recognized in cost of revenue in the Consolidated Statements of Operations. (2) Components are recognized in other expense in the Consolidated Statements of Operations. (3) Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. Assumptions Weighted-average actuarial assumptions used to determine net periodic benefit cost and PBO for the plans for the fiscal years 2024, 2023, and 2022 were as follows: Fiscal Year Ended August 31, 2024 2023 2022 Net periodic benefit cost: Expected long-term return on plan assets (1) 3.7 % 3.6 % 3.0 % Rate of compensation increase 1.9 % 2.1 % 2.2 % Discount rate 2.8 % 2.6 % 0.7 % PBO: Expected long-term return on plan assets 3.7 % 3.7 % 3.6 % Rate of compensation increase 1.8 % 1.9 % 2.1 % Discount rate (2) 2.1 % 2.8 % 2.6 % (1) The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan. (2) The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover. Plan Assets The Company has adopted an investment policy for a majority of plan assets, which was set by plan trustees who have the responsibility for making investment decisions related to the plan assets. The plan trustees oversee the investment allocation, including selecting professional investment managers and setting strategic targets. The investment objectives for the assets are (1) to acquire suitable assets that hold the appropriate liquidity in order to generate income and capital growth that, along with new contributions, will meet the cost of current and future benefits under the plan, (2) to limit the risk of the plan assets from failing to meet the plan liabilities over the long-term, and (3) to minimize the long-term costs under the plan by maximizing the return on the plan assets. 77 Table of Contents Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives with prudent risk parameters. Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due. Within the equity securities class, the investment policy provides for investments in a broad range of publicly traded securities including both domestic and international stocks. Within the debt securities class, the investment policy provides for investments in corporate bonds as well as fixed and variable interest debt instruments. The Company currently expects to achieve a target mix of 40 % equity and 60 % debt securities in fiscal year 2025. Fair Value The fair values of the plan assets held by the Company by asset category are as follows (in millions): August 31, 2024 August 31, 2023 Fair Value Hierarchy Fair Value Asset Allocation Fair Value Asset Allocation Asset Category Cash and cash equivalents (1) Level 1 $ 12 2 % $ 17 3 % Equity Securities: Global equity securities (2)(3) Level 2 235 45 % 213 44 % Debt Securities: Corporate bonds (3) Level 2 223 43 % 216 45 % Government bonds (3) Level 2 43 8 % 30 6 % Other Investments: Insurance contracts (4) Level 3 11 2 % 10 2 % Fair value of plan assets $ 524 100 % $ 486 100 % (1) Carrying value approximates fair value. (2) Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries. (3) Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics. (4) Consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value and is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract. Cash Flows The Company expects to make cash contributions between $ 26 million and $ 31 million to its funded pension plans during fiscal year 2025. The estimated future benefit payments, which reflect expected future service, are as follows (in millions): Fiscal Year Ended August 31, Amount 2025 $ 28 2026 $ 26 2027 $ 30 2028 $ 30 2029 $ 30 2030 through 2034 $ 162 78 Table of Contents Profit Sharing, 401(k) Plan and Defined Contribution Plans The Company provides retirement benefits to its domestic employees who have completed a 30 -day period of service through a 401(k) plan that provides a matching contribution by the Company. The Company also has defined contribution benefit plans for certain of its international employees. The Company contributed approximately $ 78 million, $ 74 million and $ 63 million for defined contribution plans for the fiscal years ended August 31, 2024, 2023, and 2022, respectively. 11. Derivative Financial Instruments and Hedging Activities The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, where deemed appropriate, uses derivatives as risk management tools to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency risk and interest rate risk. All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. Changes in fair value of derivative instruments are recorded in the Consolidated Statements of Operations, or as a component of AOCI in the Consolidated Balance Sheets, as discussed below. Foreign Currency Risk Management The Company enters into forward foreign exchange contracts to manage the foreign currency risk associated with the anticipated foreign currency denominated revenues and expenses. Cash Flow Hedges The Company enters into forward foreign exchange contracts to effectively lock in the value of anticipated foreign currency denominated revenues and expenses against foreign currency fluctuations. The related forward foreign exchange contracts have been designated as hedging instruments and are accounted for as cash flow hedges. The effective portion of the gain or loss on cash flow hedges is initially reported as a component of AOCI, net of tax, and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded, in the same period in which the hedged item affects earnings. The gains and losses recognized in earnings due to hedge ineffectiveness and the amount excluded from effectiveness testing are included as components of net revenue, cost of revenue and selling, general and administrative expense, which are the same line items in which the hedged items are recorded. The aggregate notional amount of these outstanding contracts as of August 31, 2024, and 2023, was $ 353 million and $ 491 million, respectively. The anticipated foreign currency denominated revenues and expenses being hedged are expected to occur between September 1, 2024, and August 31, 2025. Net Investment Hedges In addition, the Company has entered into forward foreign exchange contracts to hedge a portion of its net investment in foreign currency denominated operations, which are designated as net investment hedges. The effective portion of the gain or loss is included in change in foreign currency translation in OCI to offset the change in the carrying value of the net investment being hedged until the complete or substantially complete liquidation of the hedged foreign operation. The gains and losses recognized in earnings due to hedge ineffectiveness and the amounts excluded from effectiveness testing are included in interest expense, net. The maturity dates and aggregate notional amount of these outstanding contracts are as follows (in millions): 79 Table of Contents Maturity date August 31, 2024 August 31, 2023 September 2023 $ — $ 34 October 2023 — 96 January 2024 — 96 April 2024 — 68 July 2024 — 102 October 2024 140 — January 2025 106 — July 2025 55 — January 2026 106 — Total $ 407 $ 396 Non-Designated Derivatives In addition to derivatives that are designated as hedging instruments and qualify for hedge accounting, the Company also enters into forward foreign exchange contracts to economically hedge transactional exposure associated with commitments arising from trade accounts receivable, trade accounts payable, fixed purchase obligations and intercompany transactions denominated in a currency other than the functional currency of the respective operating entity. The gains and losses from changes in fair values are recognized immediately in current earnings. The aggregate notional amount of these outstanding contracts as of August 31, 2024, and 2023, was $ 2.6 billion and $ 4.0 billion, respectively. The Effect of Derivative Instruments on AOCI and the Consolidated Statements of Operations The following table sets forth the gains and losses of the Company's derivative instruments designated as cash flow hedges and net investment hedges in OCI, and not designated as hedging instruments in the Consolidated Statements of Operations for the periods presented (in millions): Fiscal Year Ended August 31, Financial Statement Line Item 2024 2023 2022 Derivative instruments designated as cash flow hedges: (Losses) gains recognized in OCI (1) $ ( 21 ) $ ( 25 ) $ 1 Losses (gains) reclassified from AOCI into earnings (1)(2) Forward foreign exchange contracts Cost of revenue $ 22 $ 44 $ 30 Interest rate contracts Interest expense, net $ ( 3 ) $ ( 2 ) $ 2 Derivative instruments designated as net investment hedges: Losses recognized in OCI (1) $ ( 16 ) $ ( 4 ) $ — Gains reclassified from AOCI into earnings (1) Gain from the divestiture of businesses $ ( 4 ) $ — $ — Derivative instruments not designated as hedging instruments: Gains (losses) recognized in earnings from forward foreign exchange contracts Cost of revenue $ 16 $ ( 111 ) $ ( 71 ) (Losses) gains recognized in earnings from changes in foreign currency Cost of revenue $ ( 52 ) $ 58 $ 87 (1) Amounts are net of tax, which are immaterial for the fiscal years ended August 31, 2024, 2023, and 2022. (2) The Company expects to reclassify $ 8 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue. The gains and losses recognized in earnings due to amounts excluded from effectiveness testing were not material for all periods presented. Refer to Note 18 – “Fair Value Measurements” for the fair values and classification of the Company’s derivative instruments. 80 Table of Contents Interest Rate Risk Management The Company periodically enters into interest rate swaps to manage interest rate risk associated with the Company’s borrowings or anticipated debt issuances. Contemporaneously with the issuance of the 5.450 % Senior Notes in April 2023, the Company settled cash flow hedges with an aggregate notional amount of $ 150 million and $ 100 million, with effective dates of May 2021 and August 2022, respectively. The cash received for the cash flow hedges at settlement was $ 15 million. The settled cash flow hedges are recorded in the Consolidated Balance Sheets as a component of AOCI and are amortized to interest expense, net in the Consolidated Statements of Operations. As of August 31, 2024, there are no outstanding interest rate swaps. Contemporaneously with the issuance of the 4.250 % Senior Notes in April 2022, the Company settled cash flow hedges with an aggregate notional amount of $ 250 million and $ 170 million, with effective dates of November 2020 and March 2022, respectively. The cash received for the cash flow hedges at settlement was $ 46 million. The settled cash flow hedges are recorded in the Consolidated Balance Sheets as a component of AOCI and are amortized to interest expense, net in the Statements of Operations. Contemporaneously with the issuance of the 3.000 % Senior Notes in July 2020, the Company amended interest rate swap agreements with a notional amount of $ 200 million, with mandatory termination dates from August 15, 2020, through February 15, 2022 (the “2020 Extended Interest Rate Swaps”). In addition, the Company entered into interest rate swaps to offset future exposures of fluctuations in the fair value of the 2020 Extended Interest Rate Swaps (the “Offsetting Interest Rate Swaps”). The change in fair value of the 2020 Extended Interest Rate Swaps and Offsetting Interest Rate Swaps was recorded in the Consolidated Statements of Operations through the maturity date of February 15, 2022, as an adjustment to interest expense, net. 12. Accumulated Other Comprehensive Income The following table sets forth the changes in AOCI, net of tax, by component during the fiscal year ended August 31, 2024 (in millions): Foreign Currency Translation Adjustment Net Investment Hedges Derivative Instruments Actuarial Gain (Loss) Prior Service (Cost) Credit Total Balance as of August 31, 2023 $ ( 59 ) $ ( 4 ) $ 14 $ 46 $ ( 14 ) $ ( 17 ) Other comprehensive income (loss) before reclassifications 17 ( 16 ) ( 21 ) ( 9 ) ( 9 ) ( 38 ) Amounts reclassified from AOCI ( 2 ) ( 4 ) 19 ( 8 ) 4 9 Other comprehensive income (loss) (1) 15 ( 20 ) ( 2 ) ( 17 ) ( 5 ) ( 29 ) Balance as of August 31, 2024 $ ( 44 ) $ ( 24 ) $ 12 $ 29 $ ( 19 ) $ ( 46 ) (1) Amounts are net of tax, which are immaterial. The following table sets forth the amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in millions): Fiscal Year Ended August 31, (1) Comprehensive Income Components Financial Statement Line Item 2024 2023 2022 Realized gains on foreign currency translation Gain from the divestiture of businesses $ ( 2 ) $ — $ — Realized (gains) losses on pension and postretirement plans: Actuarial gains (2) ( 8 ) ( 14 ) ( 14 ) Prior service costs (2) 4 4 4 (1) Amounts are net of tax, which are immaterial for the fiscal years ended August 31, 2024, 2023 and 2022. (2) Amounts are included in the computation of net periodic benefit cost. Refer to Note 10 – “Postretirement and Other Employee Benefits” for additional information. 81 Table of Contents Refer to Note 11 – “Derivative Financial Instruments and Hedging Activities” for the location of gains and losses on the Company’s derivative instruments that were reclassified from AOCI into the Consolidated Statements of Operations. 13. Stockholders’ Equity The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Restricted stock units (1) $ 70 $ 81 $ 67 Employee stock purchase plan 19 14 14 Total $ 89 $ 95 $ 81 (1) During the fiscal year ended August 31, 2024, the Company recorded a $ 13 million reversal to stock-based compensation expense primarily due to forfeitures of time-based, performance-based and market-based restricted stock awards. Equity Compensation Plan The 2021 Equity Incentive Plan (the “2021 EIP”) provides for the grant of restricted stock awards, restricted stock unit awards and other stock-based awards. The maximum aggregate number of shares that are available for issuance under the 2021 EIP is 11,000,000 . Following is a reconciliation of the shares available to be issued under the 2021 EIP as of August 31, 2024: Shares Available for Grant Balance as of August 31, 2023 8,463,733 Restricted stock units granted, net of forfeitures (1) ( 425,401 ) Balance as of August 31, 2024 8,038,332 (1) Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria. Restricted Stock Units Certain key employees have been granted time-based, performance-based and market-based restricted stock units. The time-based restricted stock units granted generally vest on a graded vesting schedule over three years . The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 150 %, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200 %, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. The following table summarizes restricted stock units activity from August 31, 2023 through August 31, 2024: Shares Weighted-Average Grant-Date Fair Value Outstanding as of August 31, 2023 3,908,753 $ 58.70 Changes during the period Shares granted (1) 809,015 $ 144.79 Shares vested ( 1,802,380 ) $ 46.99 Shares forfeited ( 383,614 ) $ 97.60 Outstanding as of August 31, 2024 2,531,774 $ 91.51 82 Table of Contents (1) For those shares granted that are based on the achievement of certain performance criteria, the amount represents the maximum number of shares that can vest. During the fiscal year ended August 31, 2024, the Company awarded approximately 0.5 million time-based restricted stock units, 0.1 million performance-based restricted stock units and 0.1 million market-based restricted stock units based on target performance criteria. The following table represents the restricted stock units stock-based compensation information for the periods indicated (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Fair value of restricted stock units vested $ 85 $ 93 $ 72 Tax benefit for stock compensation expense (1) $ 3 $ 2 $ 2 Unrecognized stock-based compensation expense — restricted stock units $ 47 Remaining weighted-average period for restricted stock units expense 1.4 years (1) Classified as income tax expense within the Consolidated Statements of Operations. Employee Stock Purchase Plan The maximum aggregate number of shares available for issuance under the 2011 Employee Stock Purchase Plan (the “ESPP”) is 23,000,000 . Employees are eligible to participate in the ESPP after 90 days of employment with the Company. The ESPP permits eligible employees to purchase common stock through payroll deductions, which may not exceed 10 % of an employee’s compensation, as defined in the ESPP, at a price equal to 85 % of the fair value of the common stock at the beginning or end of the offering period, whichever is lower. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. As of August 31, 2024, 9,359,036 shares remained available for issue under the 2011 ESPP. The fair value of shares issued under the ESPP was estimated on the commencement date of each offering period using the Black-Scholes option pricing model. The following weighted-average assumptions were used in the model for each respective period: Fiscal Year Ended August 31, 2024 2023 2022 Expected dividend yield 0.1 % 0.3 % 0.3 % Risk-free interest rate 5.4 % 3.4 % 0.1 % Expected volatility (1) 34.1 % 37.4 % 29.6 % Expected life 0.5 years 0.5 years 0.5 years (1) The expected volatility was estimated using the historical volatility derived from the Company’s common stock. Dividends The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders during fiscal years 2024 and 2023: (in millions, except for per share data) Dividend Declaration Date Dividend per Share Total of Cash Dividends Declared Date of Record for Dividend Payment Dividend Cash Payment Date Fiscal Year 2024 October 19, 2023 $ 0.08 $ 11 November 15, 2023 December 4, 2023 January 25, 2024 $ 0.08 $ 10 February 15, 2024 March 4, 2024 April 17, 2024 $ 0.08 $ 9 May 15, 2024 June 4, 2024 July 18, 2024 $ 0.08 $ 10 August 15, 2024 September 4, 2024 Fiscal Year 2023 October 20, 2022 $ 0.08 $ 12 November 15, 2022 December 2, 2022 January 26, 2023 $ 0.08 $ 10 February 15, 2023 March 2, 2023 April 20, 2023 $ 0.08 $ 11 May 15, 2023 June 2, 2023 July 20, 2023 $ 0.08 $ 11 August 15, 2023 September 5, 2023 83 Table of Contents Common Stock Outstanding The following represents the common stock outstanding for the fiscal year ended: Fiscal Year Ended August 31, 2024 2023 2022 Common stock outstanding: Beginning balances 131,294,422 135,493,980 144,496,077 Shares issued under employee stock purchase plan 628,960 1,043,294 970,480 Vesting of restricted stock 1,802,380 2,014,802 2,503,143 Purchases of treasury stock under employee stock plans ( 537,318 ) ( 571,606 ) ( 713,667 ) Treasury shares purchased ( 19,444,277 ) ( 6,686,048 ) ( 11,762,053 ) Ending balances 113,744,167 131,294,422 135,493,980 Treasury Shares Purchased The Company repurchases shares of its common stock under share repurchase programs authorized by the Company’s Board of Directors. The following Board approved share repurchase programs were executed through a combination of open market transactions and accelerated share repurchase (“ASR”) agreements (in millions): Board Approval Date Amount Authorized Shares Repurchased Total Cash Utilized Remaining Authorization Authorization Completion Date 2022 Share Repurchase Program Q4 FY 2021 $ 1,000 16.5 $ 1,000 $ — Q2 FY 2023 2023 Share Repurchase Program Q1 FY 2023 $ 1,000 2.7 $ 224 (1) Q4 FY 2023 Amended 2023 Share Repurchase Program Q1 FY 2024 $ 2,500 20.4 $ 2,500 $ — Q1 FY 2025 2025 Share Repurchase Program (2) Q1 FY 2025 $ 1,000 0.7 $ 84 $ 916 (1) In September 2023, the Board of Directors amended and increased the 2023 Share Repurchase Program to allow for the repurchase of up to $ 2.5 billion of the Company’s common stock. (2) As of October 21, 2024, 0.7 million shares had been repurchased for $ 84 million and $ 916 million remains available under the 2025 Share Repurchase Program. Under ASR agreements, the Company makes payments to the participating financial institutions and receives an initial delivery of shares of common stock. The final number of shares delivered upon settlement of the ASR agreements is determined based on a discount to the volume weighted average price of the Company’s common stock during the term of the agreements. At the time the shares are received by the Company, the initial delivery and the final receipt of shares upon settlement of the ASR agreements results in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. The terms of ASR agreements, structured as outlined above, were as follows (in millions, except average price): Agreement Execution Date Agreement Settlement Date Agreement Amount Initial Shares Delivered Additional Shares Delivered Total Shares Delivered Average Price Paid Per Share Q1 FY 2024 Q1 FY 2024 $ 500 3.3 0.6 3.9 $ 128.61 Q4 FY 2024 Q1 FY 2025 $ 555 4.2 1.0 5.2 $ 107.08 In addition, the Company repurchased shares of its common stock through the open market as follows (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Shares Cost Shares Cost Shares Cost Open market share repurchases 11.3 $ 1,445 6.7 $ 487 11.8 $ 696 14. Concentration of Risk and Segment Data Concentration of Risk 84 Table of Contents Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company maintains cash and cash equivalents with various domestic and foreign financial institutions. Deposits held with the financial institutions may exceed the amount of insurance provided on such deposits but may generally be redeemed upon demand. The Company performs periodic evaluations of the relative credit standing of the financial institutions and attempts to limit exposure with any one institution. For trade receivables, the Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains an allowance for expected credit losses on trade receivables. Sales of the Company’s products are concentrated among specific customers. For fiscal year 2024, the Company’s five largest customers accounted for approximately 36 % of its net revenue and 88 customers accounted for approximately 90 % of its net revenue. As the Company is a provider of manufacturing services and solutions and products are built based on customer specifications, it is impracticable to provide revenues from external customers for each product and service. Sales to the following customer accounted for 10% or more of the Company’s net revenues, expressed as a percentage of consolidated net revenue: Percentage of Net Revenue Fiscal Year Ended August 31, 2024 2023 2022 Apple, Inc. (1) 11 % 17 % 19 % (1) Sales to this customer were reported in the DMS operating segment. The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to assess the performance of the individual segment and make decisions about resources to be allocated to the segment. The Company derives its revenue from providing comprehensive electronics design, production and product management services. The CODM evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportable segments. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital, and risk profiles. The EMS segment is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment is a high-volume business that produces product at a quicker rate (i.e. cycle time) and in larger quantities and includes customers primarily in the 5G, wireless and cloud, digital print and retail, industrial and semi-capital equipment, and networking and storage industries. The DMS segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies and healthcare. The DMS segment includes customers primarily in the automotive and transportation, connected devices, and healthcare and packaging industries. The DMS segment included the results of the Mobility Business prior to the closing of its sale on December 29, 2023. Beginning September 1, 2024, the Company reorganized its internal structure to focus on speed, precision, and solutions and as a result of the organizational realignment, the Company will report its business in the following three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce. The Regulated Industries segment is focused on regulated markets and includes revenues from customers primarily in the automotive and transportation, healthcare and packaging, and renewable energy infrastructure industries. The Intelligent Infrastructure segment is focused on the modern digital ecosystem including artificial intelligence (“AI”) infrastructure and includes revenues from customers primarily in the capital equipment, cloud and data center infrastructure, and networking and communications industries. The Connected Living and Digital Commerce segment is focused on digitalization and automation, including warehouse automation and robotics, and includes revenues from customers primarily in the connected living and digital commerce industries. 85 Table of Contents Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. Segment income does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, distressed customer charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, gain from the divestiture of businesses, acquisition and divestiture related charges, loss on debt extinguishment, (gain) loss on securities, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense (excluding certain components of net periodic benefit cost), interest expense, net, income tax expense, or adjustment for net income (loss) attributable to noncontrolling interests. Total segment assets are defined as accounts receivable, contract assets, inventories, net, customer-related property, plant and equipment, intangible assets net of accumulated amortization, and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. The following table presents the Company’s revenues disaggregated by segment (in millions): Fiscal Year Ended August 31, 2024 2023 2022 EMS DMS Total EMS DMS Total EMS DMS Total Timing of transfer Point in time $ 4,502 $ 3,908 $ 8,410 $ 5,094 $ 6,453 $ 11,547 $ 6,112 $ 6,818 $ 12,930 Over time 9,303 11,170 20,473 11,655 11,500 23,155 10,625 9,923 20,548 Total $ 13,805 $ 15,078 $ 28,883 $ 16,749 $ 17,953 $ 34,702 $ 16,737 $ 16,741 $ 33,478 The following tables set forth operating segment information (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Segment income and reconciliation of income before income tax EMS $ 719 $ 837 $ 727 DMS 869 896 816 Total segment income $ 1,588 $ 1,733 $ 1,543 Reconciling items: Amortization of intangibles ( 40 ) ( 33 ) ( 34 ) Stock-based compensation expense and related charges ( 89 ) ( 95 ) ( 81 ) Restructuring, severance and related charges (1) ( 296 ) ( 57 ) ( 18 ) Business interruption and impairment charges, net (2) ( 16 ) — — Gain from the divestiture of businesses (3) 942 — — Acquisition and divestiture related charges (3) ( 70 ) — — Loss on debt extinguishment — — ( 4 ) Other expense (net of periodic benefit cost) ( 95 ) ( 80 ) ( 29 ) Interest expense, net ( 173 ) ( 206 ) ( 146 ) Income before income tax $ 1,751 $ 1,262 $ 1,231 (1) Charges recorded during the fiscal year ended August 31, 2024, related to the 2024 Restructuring Plan. Charges recorded during the fiscal year ended August 31, 2023, related to headcount reduction to further optimize the Company’s business activities. (2) Charges recorded during the fiscal year August 31, 2024, related to costs associated with product quality liabilities, which is classified as a component of cost of revenue and selling, general and administrative expenses in the Consolidated Statements of Operations. (3) The Company completed the divestiture of its Mobility Business and recorded a pre-tax gain of $ 942 million, subject to certain post-closing adjustments that are still being finalized. The Company incurred $ 70 million of acquisition and 86 Table of Contents divestiture related charges during the fiscal year ended August 31, 2024, primarily related to the divestiture of its Mobility Business. August 31, 2024 August 31, 2023 Total assets: EMS $ 4,384 $ 4,859 DMS 6,387 6,802 Assets held for sale (1) — 1,929 Other non-allocated assets 6,580 5,834 Total $ 17,351 $ 19,424 (1) Assets held for sale as of August 31, 2023 were reported in the DMS operating segment. The Company operates in more than 30 countries worldwide. For geographical reporting, sales to unaffiliated customers are attributed to the Company location that maintains the customer relationship and transacts the external sale. Long-lived assets consist of property, plant and equipment, net and right-of-use assets and are attributed to the Company location in which they are located. The following tables set forth net revenue and long-lived asset information where individual countries accounted for 10% or more of the total, for the periods indicated (in millions): At and For the Fiscal Year Ended August 31, 2024 2023 2022 Net Revenue Long-Lived Assets Net Revenue Long-Lived Assets Net Revenue Long-Lived Assets Mexico $ 5,872 $ 647 $ 6,083 $ 670 $ 5,630 $ 594 China (1) 4,810 736 5,868 865 5,272 1,956 Singapore (2) 4,486 * 7,385 * 7,916 * Malaysia * 352 * * * * Other 8,668 1,074 10,431 1,338 9,271 1,272 Total Foreign 23,836 2,809 29,767 2,873 28,089 3,822 U.S. 5,047 575 4,935 631 5,389 632 Total $ 28,883 $ 3,384 $ 34,702 $ 3,504 $ 33,478 $ 4,454 * Amount was less than 10% of total. (1) Excludes long-lived assets of $ 836 million classified as held for sale as of August 31, 2023. See Note 17 – “Business Acquisitions and Divestitures” for additional information. (2) Decrease in net revenue for the fiscal year ended August 31, 2024, is driven by the divestiture of the Mobility Business. See Note 17 – “Business Acquisitions and Divestitures” for additional information. 15. Restructuring, Severance and Related Charges Following is a summary of the Company’s restructuring, severance and related charges (in millions): Fiscal Year Ended August 31, 2024 (1) 2023 (2) 2022 (2) Employee severance and benefit costs $ 177 $ 48 $ 18 Lease costs 2 — — Asset write-off costs 79 5 — Other costs 38 4 — Total restructuring, severance and related charges (3) $ 296 $ 57 $ 18 (1) Primarily relates to the 2024 Restructuring Plan. (2) Primarily relates to headcount reduction to further optimize the Company's business activities. (3) Includes $ 76 million, $ 10 million and $ 1 million recorded in the EMS segment, $ 152 million, $ 35 million and $ 10 million recorded in the DMS segment and $ 68 million, $ 12 million and $ 7 million of non-allocated charges for the fiscal years ended August 31, 2024, 2023 and 2022, respectively. Except for asset write-off costs, all restructuring, severance and related charges are cash costs. 87 Table of Contents 2024 Restructuring Plan On September 26, 2023, the Company’s Board of Directors approved a restructuring plan to (i) realign the Company’s cost base for stranded costs associated with the Company’s sale and realignment of its Mobility Business and (ii) optimize the Company’s global footprint. This action includes headcount reductions across our Selling, General and Administrative (“SG&A”) cost base and capacity realignment (the “2024 Restructuring Plan”). The 2024 Restructuring Plan, totaling approximately $ 300 million in pre-tax restructuring and other related costs, is substantially complete as of August 31, 2024. The table below summarizes the Company’s liability activity, primarily associated with the 2024 Restructuring Plan (in millions): Employee Severance and Benefit Costs Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2023 $ — $ — $ — $ — $ — Restructuring related charges 177 2 79 38 296 Asset write-off charge and other non-cash activity 4 — ( 79 ) ( 16 ) ( 91 ) Cash payments ( 115 ) ( 1 ) — ( 17 ) ( 133 ) Balance as of August 31, 2024 $ 66 $ 1 $ — $ 5 $ 72 2025 Restructuring Plan On September 24, 2024, the Company’s Board of Directors approved a restructuring plan to align our support infrastructure to further optimize organizational effectiveness. This action includes headcount reductions across our SG&A and manufacturing cost base and capacity realignment (the “2025 Restructuring Plan”). The 2025 Restructuring Plan reflects the Company’s intention only and restructuring decisions, and the timing of such decisions, at certain locations are still subject to consultation with the Company’s employees and their representatives. The Company currently expects to recognize approximately $ 150 million to $ 200 million in pre-tax restructuring and other related costs over the course of the Company’s 2025 fiscal year. The charges relating to the 2025 Restructuring Plan are currently expected to result in net cash expenditures of approximately $ 100 million to $ 130 million that will be payable over the course of the Company’s fiscal years 2025 and 2026. The exact timing of these charges and cash outflows, as well as the estimated cost ranges by category type, have not been finalized. This information will be subject to the finalization of timetables for the transition of functions, consultation with employees and their representatives as well as the statutory severance requirements of the jurisdictions impacted, and the amount and timing of the actual charges may vary due to a variety of factors. The Company’s estimates for the charges discussed above exclude any potential income tax effects. 16. Income Taxes Provision for Income Taxes Income (loss) before income tax expense is summarized below (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Domestic $ ( 366 ) $ ( 315 ) $ ( 116 ) Foreign 2,117 1,577 1,347 Total $ 1,751 $ 1,262 $ 1,231 88 Table of Contents Income tax expense (benefit) is summarized below (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Current: Domestic - federal $ — $ 1 $ 7 Domestic - state 5 2 2 Foreign 442 350 239 Total current 447 353 248 Deferred: Domestic - federal 12 ( 2 ) ( 25 ) Domestic - state ( 2 ) 4 — Foreign ( 94 ) 89 12 Total deferred ( 84 ) 91 ( 13 ) Total income tax expense $ 363 $ 444 $ 235 Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is summarized below: Fiscal Year Ended August 31, 2024 2023 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit ( 0.3 ) 0.2 0.7 Impact of foreign tax rates (1) 0.1 ( 1.8 ) ( 4.0 ) Permanent differences 0.5 ( 0.5 ) 1.2 Income tax credits (1) ( 0.7 ) ( 0.5 ) ( 0.5 ) Valuation allowance (2) 3.5 1.1 ( 3.3 ) Equity compensation ( 0.4 ) 0.5 ( 0.5 ) Impact of intercompany charges and dividends ( 0.7 ) 2.4 3.6 Global Intangible Low-Taxed Income 1.9 0.8 1.1 Change in indefinite reinvestment assertion (3) 0.4 11.7 — Divestiture of the Mobility Business ( 5.9 ) — — Other, net 1.3 0.3 ( 0.2 ) Effective income tax rate 20.7 % 35.2 % 19.1 % (1) The Company has been granted tax incentives for various subsidiaries in China, Malaysia, Singapore, Vietnam, Brazil, and Israel, which primarily expire at various dates through fiscal year 2030 and are subject to certain conditions with which the Company expects to comply. These tax incentives resulted in a tax benefit of approximately $ 54 million ($ 0.44 per basic weighted average shares outstanding), $ 74 million ($ 0.56 per basic weighted average shares outstanding) and $ 80 million ($ 0.57 per basic weighted average shares outstanding) during the fiscal years ended August 31, 2024, 2023, and 2022, respectively. (2) For the fiscal year ended August 31, 2024, the valuation allowance change was primarily due to the change in deferred tax assets for sites with existing valuation allowances and an income tax expense of $ 27 million for an increase in the U.S. valuation allowance on deferred tax assets previously recognized. This impact was partially offset by a $ 20 million decrease in deferred tax assets with a corresponding valuation allowance due to a non-U.S. unrecognized tax benefit. For the fiscal year ended August 2022, the valuation allowance change was primarily due to an income tax benefit of $ 26 million for the reversal of a portion of the U.S. valuation allowance and decreased deferred tax assets with corresponding valuation allowances due to the liquidation of certain non-U.S. subsidiaries. (3) As a result of certain operations being classified as held for sale, the Company made a change to its indefinite reinvestment assertions for the fiscal year ended August 31, 2023. 89 Table of Contents Deferred Tax Assets and Liabilities Significant components of the deferred tax assets and liabilities are summarized below (in millions): August 31, 2024 August 31, 2023 (1) Deferred tax assets: Net operating loss carryforwards $ 183 $ 196 Receivables 5 4 Inventories 18 16 Compensated absences 14 16 Accrued expenses 109 116 Property, plant and equipment 2 17 Domestic tax credits 45 22 Foreign jurisdiction tax credits 9 4 Equity compensation 11 8 Domestic interest carryforwards 19 10 Capital loss carryforwards 26 19 Revenue recognition 27 29 Operating and finance lease liabilities 40 39 Other 34 24 Total deferred tax assets before valuation allowances 542 520 Less valuation allowances ( 368 ) ( 303 ) Net deferred tax assets $ 174 $ 217 Deferred tax liabilities: Unremitted earnings of foreign subsidiaries $ 83 $ 201 Intangible assets 29 24 Operating lease assets 81 85 Other 28 16 Total deferred tax liabilities $ 221 $ 326 Net deferred tax liabilities $ ( 47 ) $ ( 109 ) (1) Excludes $ 96 million classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. Based on the Company’s historical operating income, projection of future taxable income, scheduled reversal of taxable temporary differences, and tax planning strategies, management believes it is more likely than not that the Company will realize the benefit of its deferred tax assets, net of valuation allowances recorded. The Company’s assessment that led to the $ 27 million change in the U.S. valuation allowance on deferred tax assets previously recognized considered all available positive and negative evidence including, among other evidence, the impact of historical operating results and the impact of projected future taxable income upon application of the incremental cash tax savings approach for Global Intangible Low-Taxed Income. As of August 31, 2024, the Company intends to indefinitely reinvest the remaining earnings from its foreign subsidiaries for which a deferred tax liability has not already been recorded. The accumulated earnings are the most significant component of the basis difference which is indefinitely reinvested. As of August 31, 2024, the indefinitely reinvested earnings in foreign subsidiaries upon which taxes had not been provided were approximately $ 0.8 billion. The estimated amount of the unrecognized deferred tax liability on these reinvested earnings was approximately $ 0.1 billion. 90 Table of Contents Tax Carryforwards The amount and expiration dates of income tax net operating loss carryforwards, tax credit carryforwards, and tax capital loss carryforwards, which are available to reduce future taxes, if any, as of August 31, 2024, are as follows (in millions): Last Fiscal Year of Expiration Amount Income tax net operating loss carryforwards: (1) Domestic - state 2044 or indefinite $ 56 Foreign 2039 or indefinite $ 592 Tax credit carryforwards: (1) Domestic - federal 2044 $ 41 Domestic - state 2038 or indefinite $ 4 Foreign (2) 2026 $ 9 Tax capital loss carryforwards: Domestic - federal 2029 $ 100 (1) Net of unrecognized tax benefits. (2) Calculated based on the deferral method and includes foreign investment tax credits. Unrecognized Tax Benefits Reconciliation of the unrecognized tax benefits is summarized below (in millions): Fiscal Year Ended August 31, 2024 2023 2022 Beginning balance $ 257 $ 253 $ 241 Additions for tax positions of prior years 19 1 22 Reductions for tax positions of prior years ( 21 ) ( 7 ) ( 21 ) Additions for tax positions related to current year (1) 22 23 36 Divestiture of businesses ( 49 ) — — Reductions from lapses in statutes of limitations ( 2 ) ( 8 ) ( 3 ) Settlements (2) ( 58 ) ( 5 ) ( 12 ) Foreign exchange rate adjustment — — ( 10 ) Ending balance $ 168 $ 257 $ 253 Unrecognized tax benefits that would affect the effective tax rate (if recognized) $ 94 $ 150 $ 150 (1) The additions for the fiscal years ended August 31, 2024, 2023 and 2022 are primarily related to taxation of certain intercompany transactions. (2) Settlements for the fiscal year ended August 31, 2024, primarily relates to the settlement of a U.S. audit. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company’s accrued interest and penalties were approximately $ 17 million and $ 31 million as of August 31, 2024, and 2023, respectively. The Company recognized a benefit from the net release of interest and penalties of $ 14 million during the fiscal year ended August 31, 2024. The Company recognized interest and penalties of approximately $ 3 million and $ 0 million during the fiscal years ended August 31, 2023, and 2022, respectively. It is reasonably possible that the August 31, 2024, unrecognized tax benefits could decrease during the next 12 months by $ 50 million, primarily related to lapses in statutes of limitations associated with intercompany transactions. The Company is no longer subject to U.S. federal tax examinations for fiscal years before August 31, 2021. In major non-U.S. and state jurisdictions, the Company is no longer subject to income tax examinations for fiscal years before August 31, 2014, and August 31, 2009, respectively. 91 Table of Contents 17. Business Acquisitions and Divestitures Acquisitions On November 1, 2023, the Company completed the acquisition of ProcureAbility Inc. (“ProcureAbility”) for approximately $ 60 million in cash. ProcureAbility is a procurement services provider specializing in technology-enabled advisory, managed services, digital, staffing, and recruiting solutions. The acquisition of ProcureAbility was accounted for as a business combination using the acquisition method of accounting. Assets acquired of $ 87 million, including $ 40 million in intangible assets and $ 38 million in goodwill, and liabilities assumed of $ 26 million were recorded at their estimated fair values as of the acquisition date. The preliminary estimates and measurements are subject to change during the measurement period for assets acquired, liabilities assumed and tax adjustments. The excess of the purchase price over the fair value of the acquired assets and assumed liabilities was recorded to goodwill and was fully allocated to the DMS segment. The majority of the goodwill is currently not expected to be deductible for income tax purposes. The results of operations were included in the Company’s condensed consolidated financial results beginning on November 1, 2023. Pro forma information has not been provided as the acquisition of ProcureAbility is not deemed to be significant. On October 1, 2024, the Company completed the acquisition of Mikros Technologies LLC for consideration transferred of $ 62 million. Mikros Technologies LLC is a leader in the engineering and manufacturing of liquid cooling solutions for thermal management. The final purchase price is subject to adjustment based on conditions within the purchase agreement. Divestitures The Company announced on September 26, 2023, that, through its indirect subsidiary, Jabil Circuit (Singapore) Pte. Ltd., a Singapore private limited company (“Singapore Seller”), it agreed to sell the Mobility Business to an affiliate of BYDE for cash consideration of approximately $ 2.2 billion, subject to certain customary purchase price adjustments. As of August 31, 2023, the Company determined the Mobility Business met the criteria to be classified as held for sale. Accordingly, the Company presented the assets and liabilities of the Mobility Business as held for sale in the Condensed Consolidated Balance Sheets as of August 31, 2023. Assets and liabilities classified as held for sale had a carrying value less than the estimated fair value less cost to sell and, thus, no adjustment to the carrying value of the disposal group was necessary. Depreciation and amortization expense for long-lived assets was not recorded for the period in which these assets were classified as held for sale. The divestiture did not meet the criteria to be reported as discontinued operations, and the Company continued to report the operating results for the Mobility Business in the Company’s Condensed Consolidated Statement of Operations in the DMS segment until the Closing Date (defined below). Following is a summary of the carrying amounts of the major classes of assets and liabilities that were classified as held for sale as of August 31, 2023 (in millions): August 31, 2023 Assets held for sale: Accounts receivable, net of allowance for credit losses $ 96 Inventories, net of reserve for excess and obsolete inventory 559 Prepaid expenses and other current assets 220 Property, plant and equipment, net of accumulated depreciation 724 Operating lease right-of-use assets 112 Goodwill 117 Deferred income taxes 96 Liabilities held for sale: Accounts payable $ 876 Accrued expenses 364 Non-current operating lease liabilities 83 92 Table of Contents On December 29, 2023 (the “Closing Date”), the Company completed the sale of the Mobility Business. As a result of the transaction, the Company derecognized net assets of approximately $ 1.2 billion, and recorded a pre-tax gain of $ 942 million, subject to certain post-closing adjustments that are still being finalized. In addition, the Company agreed to indemnify BYDE from certain liabilities that may arise post-close that relate to periods prior to the Closing Date. The Company incurred transaction and disposal costs in connection with the sale of approximately $ 67 million during the fiscal year ended August 31, 2024, which are included in continuing operations in the Company’s Consolidated Statements of Operations. The Company performs a goodwill impairment analysis on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In connection with the preparation of the Company’s financial statements for the quarter ended February 29, 2024, the Company completed an impairment analysis for goodwill recorded within the reporting unit impacted by the divestiture of the Mobility Business. The quantitative assessment was used, and the Company determined that the fair value of the impacted reporting unit exceeded the carrying value and that no impairment existed immediately prior to or subsequent to divesting the Mobility Business. The Company allocated goodwill to the disposal group based on the relative fair value of the Mobility Business as compared to the impacted reporting unit. In the second quarter of fiscal year 2024 and in connection with the divestiture of the Mobility Business, the Company made a strategic decision that the indefinite-lived (“Green Point”) trade name valued at $ 51 million acquired during the acquisition of Green Point should no longer be classified as an indefinite-lived intangible asset. Accordingly, prior to reclassifying the trade name to a finite-lived intangible asset, the Company completed a quantitative assessment for impairment and determined the fair value of the asset exceeded the carrying value. The trade name was assigned a two-year estimated useful life and is being amortized on a straight-line basis as of the Closing Date. 18. Fair Value Measurements Fair Value Measurements on a Recurring Basis The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated (in millions): Fair Value Hierarchy August 31, 2024 August 31, 2023 Assets: Cash and cash equivalents: Cash equivalents Level 1 (1) $ 303 $ — Prepaid expenses and other current assets: Short-term investments Level 1 27 25 Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 11) Level 2 (2) 11 4 Derivatives not designated as hedging instruments (Note 11) Level 2 (2) 25 20 Net investment hedges: Derivatives designated as hedging instruments (Note 11) Level 2 (2) — 9 Liabilities: Accrued expenses: Forward foreign exchange contracts: Derivatives designated as hedging instruments (Note 11) Level 2 (2) $ 28 $ 17 Derivatives not designated as hedging instruments (Note 11) Level 2 (2) 22 64 Net investment hedges: Derivatives designated as hedging instruments (Note 11) Level 2 (2) 6 1 Other liabilities: Net investment hedges: Derivatives designated as hedging instruments (Note 11) Level 2 (2) 5 — (1) Consist of time deposits that are readily convertible to cash with original maturities of 90 days or less. (2) The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers. 93 Table of Contents Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. The carrying amounts of borrowings under credit facilities and under loans approximates fair value as interest rates on these instruments approximates current market rates. Notes payable and long-term debt is carried at amortized cost; however, the Company estimates the fair value of notes payable and long-term debt for disclosure purposes. The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated (in millions): August 31, 2024 August 31, 2023 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 7 ) 3.950 % Senior Notes Level 2 (1) $ 498 $ 487 $ 497 $ 468 3.600 % Senior Notes Level 2 (1) $ 497 $ 468 $ 496 $ 448 3.000 % Senior Notes Level 2 (1) $ 594 $ 529 $ 593 $ 502 1.700 % Senior Notes Level 2 (1) $ 499 $ 476 $ 498 $ 452 4.250 % Senior Notes Level 2 (1) $ 496 $ 495 $ 495 $ 478 5.450 % Senior Notes Level 2 (1) $ 296 $ 306 $ 296 $ 297 (1) The fair value estimates are based upon observable market data. Refer to Note 10 - “Postretirement and Other Employee Benefits” for disclosure surrounding the fair value of the Company’s pension plan assets. 19. Commitments and Contingencies Legal Proceedings The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations, or cash flows. 20. New Accounting Guidance New accounting guidance adopted during the period did not have a material impact to the Company. Recently issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company. Item 16. Form 10-K Summary Not applicable. 94 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. JABIL INC. Registrant Date: October 28, 2024 By: /s/ M ICHAEL D ASTOOR Michael Dastoor Chief Executive Officer 95 Table of Contents POWER OF ATTORNEY KNOW ALL THESE PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Michael Dastoor and Gregory B. Hebard and each of them, jointly and severally, his or her attorneys-in-fact, each with full power of substitution, for him or her in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each said attorneys-in-fact or his substitute or substitutes, may do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: Signature Title Date By: /s/ M ARK T. M ONDELLO Chairman of the Board of Directors October 28, 2024 Mark T. Mondello By: /s/ S TEVEN A. R AYMUND Lead Independent Director October 28, 2024 Steven A. Raymund By: /s/ M ICHAEL D ASTOOR Chief Executive Officer and Director (Principal Executive Officer) October 28, 2024 Michael Dastoor By: /s/ G REGORY B. H EBARD Chief Financial Officer (Principal Executive Officer) October 28, 2024 Gregory B. Hebard By: /s/ A NOUSHEH A NSARI Director October 28, 2024 Anousheh Ansari By: /s/ C HRISTOPHER S . H OLLAND Director October 28, 2024 Christopher S. Holland By: /s/ J OHN C. P LANT Director October 28, 2024 John C. Plant By: /s/ J AMES W. S IMINOFF Director October 28, 2024 James W. Siminoff By: /s/ D AVID M. S TOUT Director October 28, 2024 David M. Stout By: /s/ N.V. T YAGARAJAN Director October 28, 2024 N.V. Tyagarajan By: /s/ K ATHLEEN A. W ALTERS Director October 28, 2024 Kathleen A. Walters 96 Table of Contents SCHEDULE II JABIL INC. AND SUBSIDIARIES SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance at Beginning of Period Additions and Adjustments Charged to Costs and Expenses Additions/ (Reductions) Charged to Other Accounts (1) Write-offs Balance at End of Period Reserve for excess and obsolete inventory: Fiscal year ended August 31, 2024 $ 58 $ 40 $ — $ ( 35 ) $ 63 Fiscal year ended August 31, 2023 $ 82 $ 34 $ ( 27 ) $ ( 31 ) $ 58 Fiscal year ended August 31, 2022 $ 85 $ 23 $ — $ ( 26 ) $ 82 (1) During the fiscal year ended August 31, 2023 the reductions charged to other accounts relates to inventory reserves for excess and obsolete inventory classified as held for sale. Balance at Beginning of Period Additions Charged to Costs and Expenses Additions/ (Reductions) Charged to Other Accounts Reductions Charged to Costs and Expenses Balance at End of Period Valuation allowance for deferred taxes: Fiscal year ended August 31, 2024 $ 303 $ 96 $ 3 $ ( 34 ) $ 368 Fiscal year ended August 31, 2023 $ 281 $ 28 $ 9 $ ( 15 ) $ 303 Fiscal year ended August 31, 2022 $ 353 $ 19 $ ( 31 ) $ ( 60 ) $ 281 See accompanying report of independent registered public accounting firm. 97