Jabil (JBL) 10-K risk factor changes: FY2020 vs FY2019

Increasing consolidation in industries that utilize our services may occur as companies combine to achieve further economies of scale and other synergies, which could result in an increase in excess manufacturing capacity as [removed: companies seek to divest manufacturing operations or eliminate duplicative product lines.]

| [removed: |] • | [removed: |] recessionary periods in our customers’ markets; |

| [removed: |] • | [removed: |] the inability of our customers to adapt to rapidly changing technology and evolving industry standards, which may contribute to short product life cycles or shifts in our customers’ strategies; |

| [removed: |] • | [removed: |] the inability of our customers to develop, market or gain commercial acceptance of their products, some of which are new and untested; |

| [removed: |] • | [removed: |] the potential that our customers’ products become commoditized or obsolete; |

| [removed: |] • | [removed: |] loss of business or a reduction in pricing power experienced by our customers; |

| [removed: |] • | [removed: |] the emergence of new business models or more popular products and shifting patterns of demand; and |

| [removed: |] • | [removed: |] a highly-competitive consumer products industry, which is often subject to shorter product lifecycles, shifting end-user preferences and higher revenue volatility. |

[added: This may result in write downs of] inventories, reduction in the number of products that we sell, delays in payment for inventory that we purchased, and reductions in the use of our manufacturing facilities.

Such adverse effects could include one or more of the following: an increase in our provision for doubtful accounts, a charge for inventory writeoffs, [added: an impairment of contract assets,] a reduction in revenue, and an increase in our working capital requirements due to higher inventory levels and increases in days our accounts receivable are outstanding.

| [removed: |] • | [removed: |] respond more quickly to new or emerging technologies or changes in customer requirements; |

| [removed: |] • | [removed: |] have technological expertise, engineering capabilities and/or manufacturing resources that are greater than ours; |

| [removed: |] • | [removed: |] have greater name recognition, critical mass and geographic market presence; |

| [removed: |] • | [removed: |] be better able to take advantage of acquisition opportunities; |

| [removed: |] • | [removed: |] devote greater resources to the development, promotion and sale of their services and execution of their strategy; |

| [removed: |] • | [removed: |] be better positioned to compete on price for their services; |

| [removed: |] • | [removed: |] have excess capacity, and be better able to utilize such excess capacity; |

| [removed: |] • | [removed: |] have greater direct buying power from component suppliers, distributors and raw material suppliers; |

| [removed: |] • | [removed: |] have lower cost structures as a result of their geographic location or the services they provide; |

| [removed: |] • | [removed: |] be willing or able to make sales or provide services at lower margins than we do; |

| [removed: |] • | [removed: |] have increased vertical capabilities providing them greater cost savings. |

Problems suffered by any of these common carriers, including natural disaster, [added: pandemic,] labor problems, increased energy prices, or criminal activity, could result in shipping delays for products or materials, increased costs or other supply chain disruptions, and could therefore have a negative impact on our ability to receive products from suppliers and deliver products to customers, resulting in a material adverse effect on our operations.

| [removed: |] • | [removed: |] hire, retain and expand our pool of qualified engineering and technical personnel; |

| [removed: |] • | [removed: |] maintain and continually improve our technological expertise; |

| [removed: |] • | [removed: |] develop and market manufacturing services that meet changing customer needs; and |

| [removed: |] • | [removed: |] anticipate and respond to technological changes in manufacturing processes on a cost-effective and timely basis. |

There can be no assurance that we will continue to be able to purchase the [removed: components and materials needed to manufacture customer products at favorable prices.]

| [removed: |] • | [removed: |] difficulties in staffing and managing foreign operations and attempting to ensure compliance with our policies, procedures, and applicable local laws; |

| [removed: |] • | [removed: |] less flexible employee relationships that can be difficult and expensive to terminate due to, among other things, labor laws and regulations; |

| [removed: |] • | [removed: |] rising labor costs (including the introduction or expansion of certain social programs), in particular within the lower-cost regions in which we operate, due to, among other things, demographic changes and economic development in those regions; |

| [removed: |] • | [removed: |] labor unrest and dissatisfaction, including potential labor strikes or claims; |

| [removed: |] • | [removed: |] increased scrutiny by the media and other third parties of labor practices within our industry (including working conditions, compliance with employment and labor laws and compensation) which may result in allegations of violations, more stringent and burdensome labor laws and regulations, higher labor costs and/or loss of revenues if our customers become dissatisfied with our labor practices and diminish or terminate their relationship with us; |

| [removed: |] • | [removed: |] burdens of complying with a wide variety of foreign laws, including those relating to export and import duties, domestic and foreign import and export controls, trade barriers (including tariffs and quotas), environmental policies and privacy issues, and local statutory corporate governance rules; |

| [removed: |] • | [removed: |] risk of non-compliance with the U.S. Foreign Corrupt Practices Act (the “FCPA”) or similar regulations in other jurisdictions; |

| [removed: |] • | [removed: |] less favorable, less predictable, or relatively undefined, intellectual property laws; |

| [removed: |] • | [removed: |] lack of sufficient or available locations from which to operate or inability to renew leases on terms that are acceptable to us or at all; |

| [removed: |] • | [removed: |] unexpected changes in regulatory requirements and laws or government or judicial interpretations of such regulatory requirements and laws and adverse trade policies, and adverse changes to any of the policies of either the U.S. or any of the foreign jurisdictions in which we operate; |

| [removed: |] • | [removed: |] adverse changes in tax rates or accounting rules and the manner in which the U.S. and other countries tax multinational companies or interpret their tax laws or accounting rules or restrictions on the transfer of funds to us from our operations outside the U.S.; |

| [removed: |] • | [removed: |] limitations on imports or exports of components or products, or other trade sanctions; |

| [removed: |] • | [removed: |] political and economic instability and unsafe working conditions; |

Operational Risks

The effect of COVID-19 on our operations and the operations of our customers, suppliers and logistics providers has, and is expected to continue to have, a material and adverse impact on our financial condition and results of operations.

Our global operations expose us to the COVID-19 pandemic, which has had and will continue to have an adverse impact on our employees, operations, supply chain and distribution system.

While we have taken numerous steps to mitigate the impact of the pandemic on our results of operations, there can be no assurance that these efforts will be successful.

To date, COVID-19 has increased our expenses, primarily related to additional labor costs and the procurement of personal protection equipment for our employees globally, and has caused a reduction in factory utilization due to travel disruptions and restrictions.

COVID-19 has now spread across the globe and is impacting worldwide economic activity, including our global manufacturing production sites.

Public and private sector policies and initiatives to reduce the transmission of COVID-19, including travel restrictions and quarantines, are impacting our operations, including affecting the ability of our employees to get to our facilities, reducing capacity utilization levels, causing certain facility or intermittent business closures, and interrupting the movement or increasing the cost of moving components and products through our supply chain.

If additional factory closures are required or reductions in capacity utilization levels occur, we expect to incur additional direct costs and lost revenue.

If our suppliers experience additional closures or reductions in their capacity utilization levels in the future, we may have difficulty sourcing materials necessary to fulfill production requirements.

COVID-19 has also impacted our customers and may create unpredictable reductions or increases in demand for our manufacturing services.

Our ability to continue to manufacture products is highly dependent on our ability to maintain the safety and health of our factory employees.

The ability of our employees to work may be significantly impacted by individuals contracting or being exposed to COVID-19.

While we are following the requirements of governmental authorities and taking preventative and protective measures to prioritize the safety of our employees, these measures may not be successful, and we may be required to temporarily close facilities or take other measures.

In addition, responding to the continuing pandemic could divert management’s attention from our key strategic priorities, cause us to reduce, delay, alter or abandon initiatives that may otherwise increase our long-term value or otherwise disrupt our business operations.

While we are staying in close communication with our sites, employees, customers, suppliers and logistics partners and acting to mitigate the impact of this dynamic and evolving situation, the duration and extent of the effect of COVID-19 on Jabil is not determinable.

We believe COVID-19 will continue to have a material and adverse impact on our consolidated financial position, results of operations and cash flows in the near term.

In addition, the impact of the COVID-19 pandemic could exacerbate the other risks we face.

companies seek to divest manufacturing operations or eliminate duplicative product lines.

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Our operating results may fluctuate due to a number of factors, many of which are beyond our control.

Our annual and quarterly operating results are affected by a number of factors, including:

| | • | | adverse changes in current macro-economic conditions, both in the U.S. and internationally; |

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| | • | | how well we execute on our strategy and operating plans, and the impact of changes in our business model; |

| | • | | the volume and timing of orders placed by our customers; |

| | • | | the level of capacity utilization of our manufacturing facilities and associated fixed costs; |

| | • | | the composition of the costs of revenue among materials, labor and manufacturing overhead; |

| | • | | price competition; |

| | • | | changes in demand for our products or services, as well as the volatility of these changes; |

| | • | | changes in demand in our customers’ end markets, as well as the volatility of these changes; |

| | • | | our exposure to financially-troubled customers; |

| | • | | any potential future termination, or substantial winding down, of significant customer relationships; |

| | • | | our level of experience in manufacturing particular products; |

| | • | | the degree of automation used in our assembly process; |

| | • | | the efficiencies achieved in managing inventories and property, plant and equipment; |

| | • | | significant costs incurred in acquisitions and other transactions; |

| | • | | fluctuations in the cost and availability of materials; |

| | • | | adverse changes in political conditions, both in the U.S. and internationally, including among other things, adverse changes in tax laws and rates (and government interpretations thereof), adverse changes in trade policies and adverse changes in fiscal and monetary policies; |

| | • | | seasonality in customers’ product demand; |

| | • | | the timing of expenditures in anticipation of increased sales, customer product delivery requirements and shortages of components or labor; |

| | • | | changes in stock-based compensation expense due to changes in the expected vesting of performance-based equity awards comprising a portion of such stock-based compensation expense; and |

| | • | | failure to comply with foreign laws, which could result in increased costs and/or taxes. |

Any one or a combination of these factors could adversely affect our annual and quarterly results of operations in the future.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations.”

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In addition, if one of our customers is acquired by another company that does not rely on us to provide services and has its own production facilities or relies on another provider of similar services, we may lose that customer’s business.

This may result in write downs of

settlement of related indemnification claims.

ramifications under certain customer contract provisions) and poor publicity and any of these could adversely affect our financial results.

It is not anticipated that any material tax incentives will expire within the next year.

The U.S. Federal Reserve has begun publishing a Secured Overnight Funding Rate (“SOFR”), which is intended to replace U.S. dollar LIBOR.

Our EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing our [removed: large scale] [added: large-scale] manufacturing infrastructure and our ability to serve a broad range of end markets.

Our EMS segment [removed: 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 automotive and transportation, capital equipment, cloud, [removed: computing] [added: networking] and storage, defense and aerospace, industrial and energy, [removed: networking and telecommunications,] print and retail, and smart home and appliances industries.

Our DMS segment includes customers primarily in the [removed: edge devices and accessories,] [added: connected devices,] healthcare, mobility and packaging industries.

See Note [removed: 12] [added: 13] – “Concentration of Risk and Segment Data” to the Consolidated Financial Statements.

[removed: _Summary] [added: *Summary] of [removed: Results_][added: Results*]

| | [removed: |] Fiscal Year Ended August 31, | | | | | | | | | | |

| | [removed: | 2019] [added: 2020] | | | | [removed: 2018] [added: 2019] | | | | [removed: 2017] [added: 2018] | | |

| Net revenue | [removed: |] $ | [removed: 25,282,320] [added: 27,266,438] | | | $ | [removed: 22,095,416] [added: 25,282,320] | | | $ | [removed: 19,063,121] [added: 22,095,416] | |

| Gross profit | [removed: |] $ | [removed: 1,913,401] [added: 1,930,813] | | | $ | [removed: 1,706,792] [added: 1,913,401] | | | $ | [removed: 1,545,643] [added: 1,706,792] | |

| Operating income | [removed: |] $ | [removed: 701,356] [added: 499,846] | | | $ | [removed: 542,153] [added: 701,356] | | | $ | [removed: 410,230] [added: 542,153] | |

| Net income attributable to Jabil Inc. | [removed: |] $ | [removed: 287,111] [added: 53,912] | | | $ | [removed: 86,330] [added: 287,111] | | | $ | [removed: 129,090] [added: 86,330] | |

| Earnings per share – basic | [removed: |] $ | [removed: 1.85] [added: 0.36] | | | $ | [removed: 0.50] [added: 1.85] | | | $ | [removed: 0.71] [added: 0.50] | |

| Earnings per share – diluted | [removed: |] $ | [removed: 1.81] [added: 0.35] | | | $ | [removed: 0.49] [added: 1.81] | | | $ | [removed: 0.69] [added: 0.49] | |

[removed: _Key] [added: *Key] Performance [removed: Indicators_][added: Indicators*]

| | [removed: |] Three Months Ended | | | | | | | [removed: | | | | | | | |]

| | [removed: |] August 31, 2019 | | [removed: | |] May 31, 2019 | | [removed: | |] February 28, 2019 | | [removed: | |] November 30, 2018 | [removed: | |]

| Sales cycle(1) | [removed: | | 19] [added: 16] days | | [removed: | |] 27 days | | [removed: | | 25] [added: 30] days | | [removed: | | 16] [added: 23] days | [removed: |]

| Inventory turns (annualized)(2) | [removed: | |] 6 turns | | [removed: | | 6] [added: 5] turns | | [removed: | | 6] [added: 5] turns | | [removed: | |] 6 turns | [removed: |]

| Days in accounts receivable(3) | [removed: | | 38] [added: 35] days | | [removed: | | 39] [added: 37] days | | [removed: | | 38] [added: 34] days | | [removed: | | 38] [added: 43] days | [removed: |]

| Days in inventory(4) | [removed: | | 58] [added: 56] days | | [removed: | | 64] [added: 67] days | | [removed: | | 65] [added: 70] days | | [removed: | | 60] [added: 57] days | [removed: |]

| Days in accounts payable(5) | [removed: | | 77] [added: 75] days | | [removed: | | 76] [added: 77] days | | [removed: | | 78] [added: 74] days | | [removed: | | 82] [added: 77] days | [removed: |]

| | [removed: |] August 31, [removed: 2018] [added: 2019] | | | | May 31, [removed: 2018] [added: 2019] | | | | February 28, [removed: 2018] [added: 2019] | | | | November 30, [removed: 2017] [added: 2018] | | |

| Sales cycle(1) | [removed: | | 1 day | | | | 9] [added: 19] days | | [removed: | | 3] [added: 27] days | | [added: 25 days] | | [removed: (2)] [added: 16] days | [removed: |]

| Inventory turns [removed: (annualized) | |] [added: (annualized)(2)] | 6 turns | | [removed: | |] 6 turns | | [removed: | |] 6 turns | | [removed: | |] 6 turns | [removed: |]

| Days in accounts [removed: receivable | |] [added: receivable(3)] | [removed: 26] [added: 38] days | | [removed: | | 26] [added: 39] days | | [removed: | | 26] [added: 38] days | | [removed: | | 25] [added: 38] days | [removed: |]

| Days in inventory(4) | [removed: | |] 58 days | | [removed: | | 60] [added: 64] days | | [removed: | | 62] [added: 65] days | | [removed: | | 58] [added: 60] days | [removed: |]

| Days in accounts payable(5) | [removed: | | 83 days | | | |] 77 days | | [removed: | | 85] [added: 76] days | | [added: 78 days] | | [removed: 85] [added: 82] days | [removed: |]

| (3) | [added: Days in accounts receivable is calculated as accounts receivable, net, divided by net revenue multiplied by 90 days.] During the three months ended [added: May 31, 2020 and] November 30, [removed: 2018,] [added: 2019,] the increase in days in accounts receivable from the prior sequential quarter was primarily due to an increase in accounts receivable, primarily driven by [removed: the amended and new securitization programs and] higher sales and timing of collections. [added: During the three months ended February 29, 2020, the decrease in days in accounts receivable from the prior sequential quarter is primarily driven by lower sales and the timing of collections in the second quarter.] |

| (4) | [removed: In connection with the adoption of ASU 2014-09, days] [added: Days] in inventory [removed: are] [added: is] calculated [removed: based on] [added: as] inventory and contract [removed: asset balances for] [added: assets divided by cost of revenue multiplied by 90 days. During] the three months ended August 31, [removed: 2019,] [added: 2020,] May 31, [removed: 2019, February 28, 2019] [added: 2020] and [removed: November 30, 2018. During the three months ended] August 31, 2019, the decrease in days in inventory from [added: the] prior sequential quarter was primarily due to increased sales activity during the quarter. During the three months ended February [added: 29, 2020, the increase in days in inventory from the prior sequential quarter is primarily driven by idle capacity and supply chain constraints, largely in China due to COVID-19. During the three months ended February] 28, 2019, days in inventory increased from the prior sequential quarter to support anticipated ramps and expected sales levels in the second half of fiscal year 2019 and due to the acquisition of certain assets of Johnson & Johnson Medical Devices Companies (“JJMD”) facilities at the end of February. [removed: During the three months ended November 30, 2018, days in inventory increased from the prior sequential quarter to support expected sales levels in the second quarter of fiscal year 2019. During each of the three months ended August 31, 2018 and May 31, 2018, the decrease in days in inventory from the prior sequential quarter was primarily due to increased sales activity during the quarter. During the three months ended February 28, 2018, the increase in days in inventory from the prior sequential quarter was primarily due to the increase in inventories to support expected sales levels in the third quarter of fiscal year 2018 along with overall increased demand.] |

| (5) | [removed: During the three months ended May 31, 2019, the decrease in days] [added: Days] in accounts payable [removed: from the prior sequential quarter was primarily due to timing of purchases and cash payments for purchases during the quarter. During the three months ended February 28, 2019, the decrease in days in] [added: is calculated as] accounts payable [removed: from the prior sequential quarter was primarily due to lower materials purchases during the quarter and timing] [added: divided by cost] of [removed: purchases and cash payments for purchases during the quarter.] [added: revenue multiplied by 90 days.] During the three months ended [removed: August] [added: May] 31, [removed: 2018,] [added: 2019,] the [removed: increase] [added: decrease] in days in accounts payable from the prior sequential quarter was primarily due to [removed: higher materials purchases during the quarter and the] timing of purchases and cash payments for purchases during the quarter. During the three months ended [removed: May 31, 2018,] [added: February 28, 2019,] the decrease in days in accounts payable from the prior sequential quarter was primarily due [removed: to the timing of purchases and cash payments for purchases during the quarter.] |

[removed: _Revenue Recognition_][added: *Revenue Recognition*]

For further [removed: discussion,] [added: discussion related to our income taxes,] refer to Note [removed: 18—“Revenue”] [added: 15 — “Income Taxes”] to the Consolidated Financial Statements.

Certain contracts with customers include variable consideration, such as [added: periodic cost of materials adjustments,] rebates, discounts, or returns.

[removed: _Allowance] [added: *Allowance] for Doubtful [removed: Accounts_][added: Accounts*]

[removed: _Inventory Valuation_][added: *Inventory Valuation*]

[removed: _Long-Lived Assets_][added: *Long-Lived Assets*]

[removed: The] [added: 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] 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.

[removed: The recoverability] [added: 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 [added: an] indefinite-lived intangible [removed: assets] [added: exceeds the carrying value, the recoverability] is measured by comparing the carrying amount to the fair value.

We completed our annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year [removed: 2019] [added: 2020] and determined that the fair values of our reporting units and the indefinite-lived intangible assets are in excess of the carrying values and that no impairment existed as of the date of the impairment test.

[removed: _Income Taxes_][added: *Income Taxes*]

As of September 1, 2020, certain customers have been realigned within our operating segments.

Our operating segments, which are the reporting segments, continue to consist of the DMS and EMS segments.

Beginning in fiscal year 2021, customers within the automotive and transportation and smart home and appliances industries will be presented within the DMS segment.

*COVID-19*

The COVID-19 pandemic, which began to impact us in January 2020, has continued to affect our business and the businesses of our customers and suppliers into our fiscal fourth quarter.

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

With the exception of certain jurisdictions, essential activity exceptions from these restrictions have allowed us to continue to operate.

Nevertheless, virus containment efforts during the fiscal year ended August 31, 2020, led to a disruption in operations and certain facility or intermittent business closures in areas such as China, Malaysia, India, Mexico and California, which resulted in additional direct costs and a reduction in revenue in certain end markets.

Our first priority has been the health and safety of our employees and so we have incurred additional costs in order to procure the necessary equipment, including face masks, thermometers, hand sanitizers and personal protection equipment, to keep our employees safe.

We have implemented risk-mitigation activities including travel restrictions, social distancing practices, additional cleaning procedures within our facilities, contact tracing, COVID-19 testing, restricting the number of visitors to our sites and requiring employees and visitors to have their temperatures taken and wear masks when they are at our sites.

During the fiscal year ended August 31, 2020, we incurred approximately $141.9 million in direct costs associated with the COVID-19 outbreak, primarily due to incremental and idle labor costs leading to a reduction in factory utilization as a result of the travel disruptions and governmental restrictions and the procurement of personal protection equipment for our employees globally.

This increase in costs was partially offset by governmental subsidies, such as lower payroll taxes or social insurance in certain countries, related to COVID-19 incentives.

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

We have implemented efforts across the organization to enhance our financial position, increase liquidity and reduce costs.

During the fiscal year ended August 31, 2020, we added incremental short-term committed revolving credit agreements of $625.0 million.

We also issued $600.0 million of 10-year Senior Notes in July 2020, which was used to: (i) pay $400.0 million of Senior Notes due in December 2020 and (ii) increase our cash on hand.

In addition, we have taken aggressive steps to reduce expenses, including suspending base salary increases for Fiscal Year 2021.

Our Chief Executive Officer, Chief Financial Officer and other executive vice presidents will reduce their base salaries by 25% from June 1, 2020 through November 30, 2020 and will forego any bonus that would otherwise be due to them under Jabil’s Fiscal Year 2020 short-term incentive program.

Members of Jabil’s Board of Directors will also reduce by 25% their annual cash retainers that would otherwise be payable during the period from June 1, 2020 through November 30, 2020.

In order to further decrease operating expenses and better align with the needs of the business, we have reduced our worldwide workforce and implemented voluntary early retirement programs.

In connection with reducing our worldwide workforce, we incurred $56.6 million of severance and benefit costs during the fiscal year ended August 31, 2020.

Following this reduction in headcount, we expect annual savings beginning in Fiscal Year 2021 of approximately $40.0 million to $50.0 million.

We continue to focus on prioritizing spending related to future business.

We do not expect any material impairments or adjustments to the fair value of our assets as a result of the COVID-19 pandemic.

In addition, we completed our annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2020 and determined there was no impairment of our goodwill, intangible assets or long-lived assets.

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

These current conditions are significantly impacted by COVID-19, have had a negative impact on our results of operations during the fiscal year ended August 31, 2020 and will continue to have a negative impact on our operations over the next fiscal year and likely beyond.

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Changes in our operating assets and liabilities are largely affected by our working capital requirements, which are dependent on the effective management of our sales cycle as well as timing of payments.

Our sales cycle measures how quickly we can convert our manufacturing services into cash through sales.

We believe the metrics set forth below are useful to investors in measuring our liquidity as future liquidity needs will depend on fluctuations in levels of inventory, accounts receivable and accounts payable.

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| | August 31, 2020 | | May 31, 2020 | | February 29, 2020 | | November 30, 2019 |

| | Three Months Ended | | | | | | |

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| (2) | In connection with the adoption of Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue Recognition (Topic 606), inventory turns are calculated based on inventory and contract asset balances for the three months ended August 31, 2019, May 31, 2019, February 28, 2019 and November 30, 2018. |

Effective September 1, 2018, our revenue recognition accounting policies changed in conjunction with the adoption of the new revenue recognition standard.

We derive substantially all of our 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.

We generally enter into manufacturing service contracts with our 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, we consider our 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 our manufacturing service contracts relate to manufactured products which have no alternative use and for which we have an enforceable right to payment for the work completed to date.

As a result, revenue is recognized over time when or as we transfer control of the promised products or services (known as performance obligations) to our 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 our 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.

We also derive 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.

Consolidated Financial Statements.

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The increase is partially offset by a 4% decrease from existing customers within our computing and storage business and our capital equipment business, which we expect to remain weak into the second half of calendar year 2020.

The increase is offset by a 7% decrease in revenue from customers within our mobility business as a result of decreased end user product demand.

Subsequent to adoption, we recognize revenue over time as manufacturing services are performed for the majority of our contracts with customers, which results in revenue being recognized earlier than under the previous guidance.

Revenue for all other contracts with customers will be recognized at a point in time, upon transfer of control of the product to the customer, which is effectively no change to our historical accounting.

For further discussion of the new revenue recognition standard, refer to Note 18—“Revenue” to the Consolidated Financial Statements.

For the fiscal year ended August 31, 2019, gross profit for our DMS segment increased as a percentage of net revenue due to improved profitability across the various businesses.

This increase was offset by a decrease in gross profit as a percentage of net revenue in our EMS segment due to continued weakness in the capital equipment business and ramp costs associated with new business awards.

As a result, gross profit remained relatively consistent as a percentage of net revenue during the fiscal year end August 31, 2019, compared to the fiscal year end August 31, 2018.

The increase is partially offset by an additional $32.4 million of stock-based compensation expense recognized during the fiscal year ended August 31, 2018 as a result of the one-time modification of certain performance-based restricted stock unit awards and a one-time cash-settled award.

Amortization of intangibles decreased during the fiscal year ended August 31, 2019 compared to the fiscal year ended August 31, 2018 primarily due to intangible assets related to the Nypro acquisition, which were fully amortized during fiscal year 2018.

In connection with a strategic shift to further diversify our portfolio, focus on innovation and technology within our healthcare business and as a result of the strategic collaboration with a certain medical device company, we decided to implement a rebranding initiative to Jabil Healthcare.

Management believes the name change better leverages the Jabil brand and the full range of services available to our customers.

As a result of our decision to rebrand, we determined the indefinite-lived trade name should no longer be classified as an indefinite-lived intangible asset.

| (2) | Fiscal year ended August 31, 2017, includes expenses related to the 2017 and 2013 Restructuring Plans. |

On September 15, 2016, our Board of Directors formally approved a restructuring plan to better align our global capacity and administrative support infrastructure to further optimize organizational effectiveness.

This action included headcount reductions across our selling, general and administrative cost base and capacity realignment in higher cost locations (the “2017 Restructuring Plan”).

_2020 Restructuring Plan_

We currently expect to recognize approximately $85.0 million in pre-tax restructuring and other related costs primarily over the course of our fiscal year 2020.

The charges relating to the 2020 Restructuring Plan are currently expected to result in cash expenditures in the range of approximately $30.0 million to $40.0 million that will be payable over the course of our fiscal years 2020 and 2021.

The exact timing of these charges and cash outflows, as well as the estimated cost ranges by category type, have not been finalized.

The forward contracts (both those that are designated and not designated as accounting hedging instruments) will generally expire in less than three months, with 12 months being the maximum term of the contracts outstanding as of August 31, [removed: 2019.][added: 2020.]

[removed: The change in fair value related to contracts not designated as] accounting hedging instruments will be reflected in cost of revenue within our Consolidated Statements of Operations.

The forward contracts are primarily denominated in Chinese yuan renminbi, [removed: Euros and] [added: Euros, Malaysian ringgit,] Mexican [removed: pesos.][added: pesos and Swiss francs.]

Based on our overall currency rate exposures as of August 31, [removed: 2019,] [added: 2020,] including the derivative financial instruments intended to hedge the nonfunctional currency-denominated monetary assets and liabilities, an immediate 10% hypothetical change of foreign currency exchange rates would not have a material effect on our Consolidated Financial Statements.

See Note [removed: 13] [added: 11] — “Derivative Financial Instruments and Hedging Activities” to the Consolidated Financial Statements for additional information.

We are exposed to interest rate risk primarily on variable rate borrowings under the [removed: 2017] Credit [removed: Facility and 2018 Credit] Facility.

There were [removed: $804.9] [added: $349.5] million in borrowings outstanding under debt facilities with variable interest rates as of August 31, [removed: 2019.][added: 2020.]

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” and Note [removed: 8] [added: 7] — “Notes Payable and Long-Term Debt” to the Consolidated Financial Statements for additional information regarding our outstanding debt obligations.

To manage our exposure to market risk, we use derivative financial instruments [added: and hybrid instruments] when deemed appropriate.

See Note [removed: 13] [added: 11] — “Derivative Financial Instruments and Hedging Activities” to the Consolidated Financial Statements for additional information regarding our interest rate swap transactions.

The change in fair value related to contracts not designated as

Primarily due to the current low interest rates, the impact of a hypothetical change of 10.0% in variable interest rates would not have a material effect on our Consolidated Financial Statements.

We have interest rate swap agreements with a notional value of $200.0 million, with mandatory termination dates from August 15, 2020 to February 15, 2022 (the “2020 Extended Interest Rate Swaps”).

In addition, we have entered into interest rate swaps to offset future exposures of fluctuations in the fair value of the 2020 Extended Interest Rate Swaps.

We are monitoring developments related to LIBOR; see “Risk Factors” for additional information.

In connection with our variable interest rate debt, we have interest rate swaps with aggregate notional amounts of $200.0 million and $350.0 million, which expire on August 31, 2020 and August 24, 2020, respectively.

The impact of a hypothetical change of 10.0% in variable interest rates would result in an increase or decrease in interest expense of approximately $4.2 million for fiscal year 2020.

Based on net revenue, for the fiscal year ended August 31, [removed: 2019,] [added: 2020,] our largest customers include Amazon.com, Inc., Apple, Inc., Cisco Systems, Inc., [removed: GoPro, Inc.,] Hewlett-Packard Company, Ingenico Group, [removed: Keysight Technologies,] [added: Johnson and Johnson,] LM Ericsson Telephone Company, NetApp, [added: Inc., SolarEdge Technologies Inc., and Tesla,] Inc. [added: For the fiscal year ended August 31, 2020, we had net revenues of $27.3 billion] and [removed: Nokia Networks.][added: net income attributable to Jabil Inc. of $53.9 million.]

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

Our EMS segment [removed: is a high-volume business that produces products at a quicker rate (i.e. cycle time) and in larger quantities and] includes customers primarily in the automotive and transportation, capital equipment, cloud, [removed: computing] [added: networking] and storage, defense and aerospace, industrial and energy, [removed: networking and telecommunications,] print and retail, and smart home and appliances industries.

Our DMS segment includes customers primarily in the [removed: edge devices and accessories,] [added: connected devices,] healthcare, mobility and packaging industries.

Additional financial information regarding our reportable operating segments is included in Item 7 of this report and Note [removed: 12] [added: 13] – “Concentration of Risk and Segment Data” to the Consolidated Financial Statements.

| [removed: |] • | [removed: | _Efficient Manufacturing._] [added: Efficient Manufacturing.] Manufacturing service providers are often able to manufacture products at a reduced total cost to companies. These cost advantages result from higher utilization of capacity and efficiencies of scale because of diversified product demand and, generally, a greater focus on the components of manufacturing cost. Companies are increasingly seeking to reduce their investment in inventory, facilities and equipment used in manufacturing and prioritizing capital investments in other activities such as sales and marketing and research and development (“R&D”). This strategic shift in capital deployment has contributed to increased demand for and interest in outsourcing to external manufacturing service providers. |

| [removed: |] • | [removed: | _Accelerated] [added: Accelerated] Product Time-to-Market and [removed: Time-to-Volume._] [added: Time-to-Volume.] Manufacturing service providers are often able to deliver accelerated production start-ups and achieve high efficiencies in bringing new products to production. Providers are also able to more rapidly scale production for changing markets and to position themselves in global locations that serve the leading world markets. With increasingly shorter product life cycles, these key services allow new products to be sold in the marketplace in an accelerated time frame. |

| [removed: |] • | [removed: | _Access] [added: Access] to Advanced Design and Manufacturing [removed: Technologies._] [added: Technologies.] By utilizing manufacturing service providers, customers gain access to additional advanced technologies in manufacturing processes, as well as to product and production design, which can offer customers significant improvements in the performance, quality, cost, time-to-market and manufacturability of their products. |

| [removed: |] • | [removed: | _Improved] [added: Improved] Inventory Management and Purchasing [removed: Power._] [added: Power.] Manufacturing service providers are often able to more efficiently manage both procurement and inventory, and have demonstrated proficiency in purchasing components at improved pricing due to the scale of their operations and continuous interaction with the materials marketplace. |

| [removed: |] • | [removed: | _Establish] [added: Establish] and Maintain Long-Term Customer [removed: Relationships._] [added: Relationships.] An important element of our strategy is to establish and maintain long-term relationships with leading companies in expanding industries with size and growth characteristics that can benefit from highly automated, continuous flow manufacturing on a global scale. We focus on maintaining long-term relationships with our customers and seek to expand these relationships to include additional product lines and services. In addition, we focus on identifying and developing relationships with new customers that meet our targeted profile, which includes financial stability, the need for technology-driven turnkey manufacturing, anticipated unit volume and long-term relationship stability. |

| [removed: |] • | [removed: | _Product Diversification._] [added: Product Diversification.] We focus on balancing our portfolio of products and product families to those that align with higher return areas of our business, including manufacturing, supply chain management services, comprehensive electronics design, production and product management services. We have made concentrated efforts to diversify our industry sectors and customer base. Because of these efforts, we have experienced business growth from both existing and new customers as well as from acquisitions. |

| [removed: |] • | [removed: | _Utilize] [added: Utilize] Customer-Centric Business [removed: Units._] [added: Units.] Most of our business units are dedicated to serve one customer each and operate by primarily utilizing dedicated production equipment, production workers, supervisors, buyers, planners and engineers to provide comprehensive manufacturing solutions that are customized to each customer’s needs. We believe our customer-centric business units promote increased responsiveness to our customers’ needs, particularly for customer relationships that extend across multiple production locations. |

| [removed: |] • | [removed: | _Leverage] [added: Leverage] Global [removed: Production._] [added: Production.] We believe that global production is a key strategy to reduce obsolescence risk and secure the lowest possible landed costs while simultaneously supplying products of equivalent or comparable quality throughout the world. Consistent with this strategy, we have established or acquired operations in [added: the Americas,] Europe, [removed: Asia, Latin America] [added: Asia] and Africa. [added: Our extensive global footprint positions us well to implement safe and practical solutions in order to select production locations which best serve the needs of our customers.] |

| [removed: |] • | [removed: | _Offer] [added: Offer] Systems Assembly, Direct-Order Fulfillment and Configure-to-Order [removed: Services._] [added: Services.] Our systems assembly, direct-order fulfillment and configure-to-order services allow our customers to reduce product cost and risk of product obsolescence by reducing total work-in-process and finished goods inventory. These services are available at all of our manufacturing locations. |

| [removed: |] • | [removed: | _Offer] [added: Offer] Design [removed: Services._] [added: Services.] We offer a wide spectrum of value-add design services to achieve improvements in performance, cost, time-to-market and manufacturability. |

| [removed: |] • | [removed: | _Pursue] [added: Pursue] Acquisition Opportunities [removed: Selectively._] [added: Selectively.] Traditionally, electronics manufacturing service companies have acquired manufacturing capacity from their customers to drive growth, expand their footprint and gain new customers. In recent years, our acquisition strategy has expanded to include opportunities to acquire competitors who are focused on our key growth areas, which include specialized manufacturing in key markets, materials technology and design operations, as well as other acquisition opportunities complementary to our services offerings. The primary goals of [removed: our acquisition strategy are to complement our current capabilities, diversify our business into new industry sectors and with new customers and expand the scope of the services we can offer to our customers.] |

| [removed: |] • | [removed: | _Decentralized] [added: Decentralized] Business Unit [removed: Model._] [added: Model.] Most of our business units are dedicated to serve one customer each and are empowered to formulate strategies tailored to individual customer’s needs. Our business units generally have dedicated production lines consisting of equipment, production workers, supervisors, buyers, planners and engineers. Under certain circumstances, a production line may serve more than one business unit to maximize resource utilization. Business units have direct responsibility for manufacturing results and time-to-volume production, thereby promoting a sense of individual commitment and ownership. The business unit approach is modular and enables us to grow incrementally without disrupting the operations of other business units. Business unit management reviews the customer financial information to assess whether the business units are meeting their designated responsibilities and to ensure that the daily execution of manufacturing activities is being effectively managed. The business units aggregate into operating segments based on the economic profiles of the services performed, including manufacturing capabilities, market share strategy, margins, return on capital and risk profiles. |

| [removed: |] • | [removed: | _Automated] [added: Automated] Continuous [removed: Flow._] [added: Flow.] We use a highly automated, continuous flow approach to manufacturing, whereby different pieces of equipment are joined directly or by conveyor to create an in-line assembly process. This process contrasts with a batch approach, whereby individual pieces of assembly equipment are operated as freestanding work-centers. The elimination of waiting time prior to sequential operations results in faster manufacturing, which improves production efficiencies and quality control, and reduces inventory work-in-process. We believe continuous flow manufacturing provides cost reductions and quality improvement when applied to high volumes of product. |

| [removed: |] • | [removed: | _Computerized] [added: Computerized] Control and [removed: Monitoring._] [added: Monitoring.] We support all aspects of our manufacturing activities with advanced computerized control and monitoring systems. Component inspection and vendor quality are monitored electronically in real-time. Materials planning, purchasing, stockroom and shop floor control systems are supported through a computerized manufacturing resource planning system, which provides customers with the ability to continuously monitor material availability and track work-in-process on a real-time basis. In addition, manufacturing processes are supported by a computerized statistical process control system, whereby customers can remotely access our computer systems to monitor real-time yields, inventory positions, work-in-process status and vendor quality data. |

| [removed: |] • | [removed: | _Electronic] [added: Electronic] Supply Chain [removed: Management._] [added: Management.] We make available to our customers and suppliers an electronic commerce system/electronic data interchange and web-based tools to implement a variety of supply chain management programs. Our customers use these tools to share demand and product forecasts and deliver purchase orders, and we use these tools with our suppliers for just-in-time delivery, supplier-managed inventory and consigned supplier-managed inventory. |

| [removed: |] • | [removed: | _Electronic Design._] [added: Electronic Design.] Our Electronic Design team provides electronic circuit design services, including application-specific integrated circuit design, firmware development and rapid prototyping services. These services have been used by our customers for a variety of products including smart phones and accessory products, notebook and personal computers, servers, radio frequency products, video set-top boxes, optical communications products, communication and broadband products, and automotive and consumer appliance controls. |

| [removed: |] • | [removed: | _Industrial Design._] [added: Industrial Design.] Our Industrial Design team designs the “look and feel” of the plastic and metal enclosures that house the products’ electro-mechanics, including the printed circuit board assemblies (“PCBA”). |

| [removed: |] • | [removed: | _Mechanical Design._] [added: Mechanical Design.] Our Mechanical Design team specializes in three-dimensional mechanical design with the analysis of electronic, electro-mechanical and optical assemblies using state of the art modeling and analytical tools. This team has extended Jabil’s product design offering capabilities to include all aspects of industrial design, advance mechanism development and tooling management. |

| [removed: |] • | [removed: | _Computer-Assisted Design._] [added: Computer-Assisted Design.] Our Computer-Assisted Design (“CAD”) team provides PCBA design services using advanced CAD engineering tools, PCBA design validation and verification services, and other consulting services, which include generating a bill of materials, approved vendor list and assembly equipment configuration for a particular PCBA design. We believe that our CAD services result in PCBA designs that are optimized for manufacturability and cost efficiencies and accelerate a product’s time-to-market and time-to-volume production. |

| [removed: |] • | [removed: | _Product Validation._] [added: Product Validation.] Our Product Validation team provides complete product and process validation. This includes product system tests, product safety, regulatory compliance and reliability tests. |

| [removed: |] • | [removed: | _Manufacturing] [added: Manufacturing] Test Solution [removed: Development._] [added: Development.] Our Manufacturing Test Solution Development team provides integral support to the design teams to embed design with testability and to promote efficient capital and resource investment in the manufacturing process. The use of software driven instrumentation and test process design and management has enhanced our product quality and reduced our operating costs relative to human dependent test processes. The full electronic test data-log of customer products has allowed customer product test traceability and visibility throughout the manufacturing test process. |

| [removed: |] • | [removed: |] Automation, including automated tooling |

| [removed: |] • | [removed: |] Electronic interconnection |

| [removed: |] • | [removed: |] Advanced polymer and metal material science |

| [removed: |] • | [removed: |] Single/multi-shot injection molding, stamping and in-mold labeling |

| [removed: |] • | [removed: |] Multi-axis computer numerical control |

| [removed: |] • | [removed: |] Vacuum metallization |

| [removed: |] • | [removed: |] Physical vapor deposition |

| [removed: |] • | [removed: |] Digital printing |

| [removed: |] • | [removed: |] Anodization |

| [removed: |] • | [removed: |] Thermal-plastic composite formation |

| [removed: |] • | [removed: |] Plastic with embedded electronics |

| [removed: |] • | [removed: |] Metal and plastic covers with insert-molded or dies-casting features for assembly |

| [removed: |] • | [removed: |] Display cover with integrated touch sensor |

| [removed: |] • | [removed: |] Material processing research (including plastics, metal, glass and ceramic) |

As of September 1, 2020, certain customers have been realigned within our operating segments.

Our operating segments, which are the reporting segments, continue to consist of the DMS and EMS segments.

Beginning in fiscal year 2021, customers within the automotive and transportation and smart home and appliances industries will be presented within the DMS segment.

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our acquisition strategy are to complement our current capabilities, diversify our business into new industry sectors and with new customers and expand the scope of the services we can offer to our customers.

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For the fiscal year ended August 31, 2019, we had net revenues of $25.3 billion and net income attributable to Jabil Inc. of $287.1 million.

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##### [Table of Contents](#toc)

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Brenda Chamulak (age 48) was named Senior Vice President, Chief Executive Officer, Jabil Packaging Solutions in July 2018.

Prior to joining Jabil, Ms. Chamulak was Vice President and General Manager of Personal Care & Home Care, a business unit of Aptar Inc., a global supplier of dispensing and sealing solutions based in Crystal Lake, Illinois.

Ms. Chamuluk served as the President, Global Market Development for Aptar’s Beauty + Home, Personal Care Business Unit from 2016 to 2017 and served as the General Manager, Aptar Midland from 2013 to 2016.

She joined Aptar in 1992 and held positions of increasing responsibility with Aptar.

Ms. Chamulak has a B.A. in Marketing and International Business from Carthage College and an MBA from Marquette University.

Mr. Johnson joined Jabil in 2015 as Vice President, Human Resources.

Loparco (age 48) was named Executive Vice President, Chief Executive Officer, Engineered Solutions Group in January 2016.

Mr. Mondello joined Jabil in 1992 as a manufacturing supervisor.

Mr. Mondello was promoted to Project Manager in 1993, named Vice President, Business Development in 1997, Senior Vice President, Business Development in 1999 and served as Chief Operating Officer from 2002 to 2013.

Alessandro Parimbelli (age 51) was named Executive Vice President, Chief Executive Officer, Enterprise and Infrastructure in July 2013.

Mr. Parimbelli joined Jabil in 1998 as a Test Engineering Manager.

At Jabil, Mr. Parimbelli served in business management positions in Boise, Idaho and Paris, France before being promoted to Vice President, Global Business Units in 2006.

From 2010 through 2012, Mr. Parimbelli was Senior Vice President, Global Business Units and was responsible for Jabil’s Enterprise and Infrastructure business.

Prior to joining Jabil, Mr. Parimbelli held various engineering positions within Hewlett-Packard and other software engineering companies.

He holds an MBA from Colorado State University and a Software Engineering degree from Politecnico of Milan, Italy.

Courtney J.

Ryan (age 49) was named Executive Vice President, Corporate Development/Chief of Staff in July 2016.

Mr. Ryan joined Jabil in 1993 as a Quality Engineer and worked his way through various operations and business development management positions.

He was named Senior Vice President, Global Business Units in 2007.

Mr. Ryan served as Executive Vice President, Chief Executive Officer, Nypro from July 2013 to June 2016.

Mr. Ryan holds an MBA with a concentration in Decision and Information Science and a Bachelor of Arts in Economics, both from the University of Florida.

He also serves on the University of Florida’s MBA and Supply Chain Advisory Board.

The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (http://www.sec.gov).

[removed: FORM 10-K][added: FORM 10-K]

For the fiscal year [removed: ended August] [added: ended August] 31, [removed: 2019][added: 2020]

For the transition period [removed: from to][added: from to]

Commission file [removed: number 001-14063][added: number 001-14063]

[removed: ][added: ]

10560 Dr. Martin Luther King, Jr. Street [removed: North, St. Petersburg, Florida 33716][added: North, St. Petersburg, Florida 33716]

[removed: (727) 577-9749][added: (727) 577-9749]

| Title of each class | [removed: |] Trading Symbol(s) | [removed: |] Name of each exchange on which registered |

| Common Stock, $0.001 par value per share | [removed: |] JBL | [removed: |] New York Stock Exchange |

| Large accelerated filer | [removed: |] ☒ | | Accelerated filer | [removed: |] ☐ |

| Non-accelerated filer | [removed: |] ☐ | | Smaller reporting company | [removed: |] ☐ |

| | | | [removed: |] Emerging growth company | [removed: |] ☐ |

The aggregate market value of the voting common stock held by non-affiliates of the registrant based on the closing sale price of the Common Stock as reported on the New York Stock Exchange on February [removed: 28, 2019] [added: 29, 2020] was approximately [removed: $4.2] [added: $4.7] billion.

The number of outstanding shares of the registrant’s Common Stock as of the close of business on October 14, [removed: 2019,] [added: 2020,] was [removed: 152,656,443.][added: 149,550,360.]

[removed: The registrant’s definitive] [added: We have incorporated by reference portions of our] Proxy Statement for [removed: the Annual Meeting] [added: our annual meeting] of [removed: Stockholders scheduled] [added: shareholders expected] to be held on January [removed: 23, 2020 is incorporated by reference in] [added: 21, 2021 into] Part III [removed: of this Annual Report on Form 10-K] [added: hereof,] to the extent [removed: stated] [added: indicated] herein.

[removed: 2019 FORM] [added: 2020 FORM] 10-K ANNUAL REPORT

| Part I. | | | [removed: | | | |]

| Item 1. | [removed: | [Business](#toc782178_1) | | | 2] [added: [Business](#s883525FE79E658B492EDEEE928611694)] | [added: [2](#s883525FE79E658B492EDEEE928611694)] |

| Item 1A. | [removed: |] [Risk [removed: Factors](#toc782178_2) | | | 10] [added: Factors](#s69812B3A806E5D70B709C4AEE2CD138C)] | [added: [9](#s69812B3A806E5D70B709C4AEE2CD138C)] |

| Item 1B. | [removed: |] [Unresolved Staff [removed: Comments](#toc782178_3) | | | 23] [added: Comments](#s923DC208268755F69161A8ADACE8DD2E)] | [added: [23](#s923DC208268755F69161A8ADACE8DD2E)] |

| Item 2. | [removed: | [Properties](#toc782178_4) | | | 24] [added: [Properties](#sC83548D13A305EB7859C21D2F0EC0286)] | [added: [23](#sC83548D13A305EB7859C21D2F0EC0286)] |

| Item 3. | [removed: |] [Legal [removed: Proceedings](#toc782178_5) | | | 24] [added: Proceedings](#s0DD0423D78D650F0A9B740560467788A)] | [added: [23](#s0DD0423D78D650F0A9B740560467788A)] |

| Item 4. | [removed: |] [Mine Safety [removed: Disclosures](#toc782178_6) | | | 24] [added: Disclosures](#s35D9B826E2D15CF499CB91CE41E4E5AB)] | [added: [23](#s35D9B826E2D15CF499CB91CE41E4E5AB)] |

| Part II. | | | [removed: | | | |]

| Item 5. | [removed: |] [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#toc782178_7) | | | 25] [added: Securities](#s7125B6E1A8635C53B9F30008BCE123A2)] | [added: [24](#s7125B6E1A8635C53B9F30008BCE123A2)] |

| Item 6. | [removed: |] [Selected Financial [removed: Data](#toc782178_8) | | | 27] [added: Data](#sE813B34618D55A87BE115630A998E077)] | [added: [26](#sE813B34618D55A87BE115630A998E077)] |

| Item 7. | [removed: |] [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#toc782178_9) | | | 28] [added: Operations](#sF31CCCAE92995C3FA69E86FD094F0E5E)] | [added: [27](#sF31CCCAE92995C3FA69E86FD094F0E5E)] |

| Item 7A. | [removed: |] [Quantitative and Qualitative Disclosures About Market [removed: Risk](#toc782178_10) | | | 47] [added: Risk](#s09FC3B52B31A5863A291C44F16537184)] | [added: [44](#s09FC3B52B31A5863A291C44F16537184)] |

| Item 8. | [removed: |] [Financial Statements and Supplementary [removed: Data](#toc782178_11) | | | 47] [added: Data](#s48C4AD95FB21515A904F53F2A2554CF2)] | [added: [45](#s48C4AD95FB21515A904F53F2A2554CF2)] |

| Item 9. | [removed: |] [Changes in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#toc782178_12) | | | 48] [added: Disclosure](#sD54AF7EB018057829DFCFF86B17842A3)] | [added: [45](#sD54AF7EB018057829DFCFF86B17842A3)] |

| Item 9A. | [removed: |] [Controls and [removed: Procedures](#toc782178_13) | | | 48] [added: Procedures](#s02CD06D315AC5926A998FAF427CB1860)] | [added: [46](#s02CD06D315AC5926A998FAF427CB1860)] |

| Item 9B. | [removed: |] [Other [removed: Information](#toc782178_14) | | | 49] [added: Information](#s183B7013F62A594C868494EA7A9ED81D)] | [added: [46](#s183B7013F62A594C868494EA7A9ED81D)] |

| Part III. | | | [removed: | | | |]

| Item 10. | [removed: |] [Directors, Executive Officers and Corporate [removed: Governance](#toc782178_15) | | | 50] [added: Governance](#sE987BD1208025FAA8D7EB0118232017F)] | [added: [48](#sE987BD1208025FAA8D7EB0118232017F)] |

| Item 11. | [removed: |] [Executive [removed: Compensation](#toc782178_16) | | | 50] [added: Compensation](#s56CF7ABED9B45DC489707B1080BE5607)] | [added: [48](#s56CF7ABED9B45DC489707B1080BE5607)] |

| Item 12. | [removed: |] [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#toc782178_17) | | | 50] [added: Matters](#s1A227480AC5C5B7D827A98715DD14372)] | [added: [48](#s1A227480AC5C5B7D827A98715DD14372)] |

| Item 13. | [removed: |] [Certain Relationships and Related Transactions, and Director [removed: Independence](#toc782178_18) | | | 50] [added: Independence](#s051592C1019D5C04931103BB5BE6055B)] | [added: [48](#s051592C1019D5C04931103BB5BE6055B)] |

| Item 14. | [removed: |] [Principal Accounting Fees and [removed: Services](#toc782178_19) | | | 50] [added: Services](#s676FA0410DB6571D8099C399A7864696)] | [added: [48](#s676FA0410DB6571D8099C399A7864696)] |

| Part IV. | | | [removed: | | | |]

| Item 15. | [removed: |] [Exhibits and Financial Statement [removed: Schedules](#toc782178_20) | | | 51] [added: Schedules](#sCEDE56406FD856A6AB72819B316B52AF)] | [added: [49](#sCEDE56406FD856A6AB72819B316B52AF)] |

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JABIL INC.

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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

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| [Signatures](#sB432561E64B15AF1831526ACC33776AD) | | [95](#sB432561E64B15AF1831526ACC33776AD) |

Many of the forward-looking statements are located in Part II, Item 7 of this Form 10-K under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.

Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “should,” “could,” “can,” “may,” and similar terms.

Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements.

Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions.

Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected.

You should bear this in mind as you consider forward-looking statements, and you are cautioned not to put undue reliance on forward-looking statements.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC.

You are advised, however, to consult any further disclosures we make on related subjects.

Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of this Form 10-K under the heading “Risk Factors,” which are incorporated herein by reference.

10-K 1 d782178d10k.htm 10-K

##### [Table of Contents](#toc)

JABIL INC.

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| [Signatures](#toc782178_22) | | | | | 100 | |

These forward-looking statements (such as when we describe what “will,” “may,” or “should” occur, what we “plan,” “intend,” “estimate,” “believe,” “expect” or “anticipate” will occur, and other similar statements) include, but are not limited to, statements regarding future sales and operating results, potential risks pertaining to these future sales and operating results, future prospects, anticipated benefits of proposed (or future) acquisitions, dispositions and new facilities, growth, the capabilities and capacities of business operations, any financial or other guidance, expected capital expenditures and dividends, expected restructuring charges and related savings and all statements that are not based on historical fact, but rather reflect our current expectations concerning future results and events.

We make certain assumptions when making forward-looking statements, any of which could prove inaccurate, including assumptions about our future operating results and business plans.

Therefore, we can give no assurance that the results implied by these forward-looking statements will be realized.

Furthermore, the inclusion of forward-looking information should not be regarded as a representation by the Company or any other person that future events, plans or expectations contemplated by the Company will be achieved.

The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those expressed or implied in our forward-looking statements:_

| | • | | _fluctuation in our operating results;_ |

| --- | --- | --- | --- |

| | • | | _our dependence on a limited number of customers;_ |

| | • | | _our ability to manage growth effectively;_ |

| | • | | _competitive factors affecting our customers’ businesses and ours;_ |

| | • | | _the susceptibility of our production levels to the variability of customer requirements;_ |

| | • | | _our ability to keep pace with technological changes and competitive conditions;_ |

| | • | | _our reliance on a limited number of suppliers for critical components;_ |

| | • | | _exposure to financially troubled customers and suppliers;_ |

| | • | | _our exposure to the risks of a substantial international operation; and_ |

| | • | | _our ability to achieve the expected profitability from our acquisitions._ |

_For a further list and description of various risks, factors and uncertainties that could cause future results or events to differ materially from those expressed or implied in our forward-looking statements, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained in this document, and any subsequent reports on Form 10-Q and Form 8-K, and other filings we make with the Securities and Exchange Commission (“SEC”).

Given these risks and uncertainties, the reader should not place undue reliance on these forward-looking statements._

_All forward-looking statements included in this Annual Report on Form 10-K are made only as of the date of this Annual Report on Form 10-K, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur, or of which we hereafter become aware.

You should read this document completely and with the understanding that our actual future results or events may be materially different from what we expect.

All forward-looking statements attributable to us are expressly qualified by these cautionary statements._

##### [Table of Contents](#toc)

We own or lease facilities located primarily in the [removed: countries] [added: geographies] listed below.

The table below lists the approximate square footage for our facilities as of August 31, [removed: 2019] [added: 2020] (in thousands):

| Location | [removed: |] Approximate Square Footage | [added: |]

| (1) | Approximately [removed: 11%] [added: 14%] of our total square footage is not currently used in business operations. |

| (2) | Consists of [removed: 18.1] [added: 18.2] million square feet in facilities that we own with the remaining [removed: 34.7] [added: 35.7] million square feet in leased facilities. |

| Asia | 33,161 | |

| Americas | 15,645 | |

| Europe | 5,052 | |

| Total as of August 31, 2020 (1)(2) | 53,858 | |

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| Asia | | 32,620 |

| Americas | | 15,425 |

| Europe | | 4,791 |

| Total as of August 31, 2019 (1)(2) | | 52,836 |

##### [Table of Contents](#toc)

Our common stock trades on the New York Stock Exchange under the symbol “JBL.” See discussion of our cash dividends declared to common shareholders in Note [removed: 11—“Stockholders’] [added: 12 - “Stockholders’] Equity” to the Consolidated Financial Statements.

However, the declaration and payment of future dividends are discretionary and will be subject to determination by our Board of Directors each quarter following its review of our financial [removed: performance.][added: performance and global economic conditions.]

On October 14, [removed: 2019,] [added: 2020,] the closing sales price for our common stock as reported on the New York Stock Exchange was [removed: $35.64.][added: $35.63.]

As of October 14, [removed: 2019,] [added: 2020,] there were [removed: 1,313] [added: 1,266] holders of record of our common stock.

The performance graph and table show a comparison of cumulative total stockholder return, assuming the reinvestment of dividends, from a $100 investment in the common stock of Jabil over the five-year period ending August 31, [removed: 2019,] [added: 2020,] with the cumulative stockholder return of the (1) S&P MidCap 400 Index and (2) peer group which includes Celestica Inc., Catcher Technology Co., Ltd, Flex Ltd., Hon-Hai Precision Industry Co. Ltd, Plexus Corp., and Sanmina Corp.

[removed: ][added: ]

| August 31 | [removed: | 2014 | | | |] 2015 | | | | 2016 | | | | 2017 | | | | 2018 | | | | 2019 | | | [added: | 2020 | | |]

| S&P MidCap 400 Index – Total Returns | [removed: | |] 100 | | | | [removed: 100 | | | |] 112 | | | | 126 | | | | 151 | | | | 142 | | [added: | | 148 | | |]

The following table provides information relating to our repurchase of common stock during the three months ended August 31, [removed: 2019:][added: 2020:]

| Period | [removed: |] Total Number of Shares [removed: Purchased(1) |] [added: Purchased(1)] | | | Average Price Paid per Share | | | | Total Number of Shares Purchased as Part of Publicly Announced [removed: Program(2) |] [added: Program(2)] | | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in [removed: thousands)(2)] [added: thousands)(2)] | | |

| (1) | The purchases include amounts that are attributable to [added: 1,319] shares surrendered to us by employees to satisfy, in connection with the vesting of restricted stock units and the exercise of stock options and stock appreciation rights, their tax withholding obligations. |

| (2) | In September 2019, our Board of Directors [removed: (“the Board”)] authorized the repurchase of up to $600.0 million of our common stock as publicly announced in a press release on September 24, 2019 [removed: (“the 2020] [added: (the “2020] Share Repurchase Program”). [removed: From September 24, 2019 through October 14, 2019, we repurchased 874,475 shares, utilizing a total of $30.8 million of the $600.0 million authorized by our Board of Directors.] |

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| Jabil Inc. | $ | 100 | | | $ | 111 | | | $ | 167 | | | $ | 159 | | | $ | 157 | | | $ | 188 | |

| Peer Group | 100 | | | | 104 | | | | 165 | | | | 125 | | | | 94 | | | | 107 | | |

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| June 1, 2020 - June 30, 2020 | 80,750 | | | $ | 31.52 | | | 80,750 | | | $ | 408,525 | |

| July 1, 2020 - July 31, 2020 | 457,212 | | | $ | 32.23 | | | 455,893 | | | $ | 393,829 | |

| August 1, 2020 - August 31, 2020 | 223,628 | | | $ | 34.67 | | | 223,628 | | | $ | 386,076 | |

| Total | 761,590 | | | $ | 32.87 | | | 760,271 | | | | | |

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Comparison of 5 Year Cumulative Total Return

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| Jabil Inc. | | $ | 100 | | | $ | 91 | | | $ | 101 | | | $ | 152 | | | $ | 145 | | | $ | 143 | |

| Peer Group | | | 100 | | | | 88 | | | | 91 | | | | 145 | | | | 110 | | | | 82 | |

##### [Table of Contents](#toc)

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| June 1, 2019 - June 30, 2019 | | | 45 | | | $ | 26.92 | | | | — | | | $ | — | |

| July 1, 2019 - July 31, 2019 | | | 633 | | | $ | 30.92 | | | | — | | | $ | — | |

| August 1, 2019 - August 31, 2019 | | | — | | | $ | — | | | | — | | | $ | — | |

| Total | | | 678 | | | $ | 30.65 | | | | — | | | | | |

| | [removed: |] Fiscal Year Ended August 31, | | | | | | | | | | | | | | | | | | |

| | [added: 2020] | [added: | | |] 2019 | | | | 2018 | | | | 2017 | | | | 2016 | | | [removed: | 2015 | | |]

| | [removed: |] (in thousands, except for per share data) | | | | | | | | | | | | | | | | | | |

| Consolidated Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | [removed: |]

| Net revenue | [removed: |] $ | [removed: 25,282,320] [added: 27,266,438] | | | $ | [removed: 22,095,416] [added: 25,282,320] | | | $ | [removed: 19,063,121] [added: 22,095,416] | | | $ | [removed: 18,353,086] [added: 19,063,121] | | | $ | [removed: 17,899,196] [added: 18,353,086] | |

| Operating income | [added: 499,846] | | [added: | |] 701,356 | | | | 542,153 | | | | 410,230 | | | | 522,833 | | | [removed: | 555,411 | |]

| Income [removed: from continuing operations] before [added: income] tax | [added: 260,738] | | [added: | |] 450,704 | | | | 373,401 | | | | 256,233 | | | | 387,045 | | | [removed: | 431,646 | |]

| [removed: Income from continuing operations, net of tax] [added: Net income] | [added: 56,779] | | [added: | |] 289,474 | | | | 87,541 | | | | 127,167 | | | | 254,896 | | | [removed: | 294,185 | |]

| Net income attributable to Jabil Inc. | [removed: |] $ | [removed: 287,111] [added: 53,912] | | | $ | [removed: 86,330] [added: 287,111] | | | $ | [removed: 129,090] [added: 86,330] | | | $ | [removed: 254,095] [added: 129,090] | | | $ | [removed: 284,019] [added: 254,095] | |

| Earnings per share attributable to the stockholders of Jabil Inc.: | | | | | | | | | | | | | | | | | | | | [removed: |]

| [removed: Net income |] [added: Basic] | $ | [removed: 1.85] [added: 0.36] | | | $ | [removed: 0.50] [added: 1.85] | | | $ | [removed: 0.71] [added: 0.50] | | | $ | [removed: 1.33] [added: 0.71] | | | $ | [removed: 1.47] [added: 1.33] | |

| [removed: Net income |] [added: Diluted] | $ | [removed: 1.81] [added: 0.35] | | | $ | [removed: 0.49] [added: 1.81] | | | $ | [removed: 0.69] [added: 0.49] | | | $ | [removed: 1.32] [added: 0.69] | | | $ | [removed: 1.45] [added: 1.32] | |

| | [removed: |] (in thousands) | | | | | | | | | | | | | | | | | | |

| Consolidated Balance Sheets Data: | | | | | | | | | | | | | | | | | | | | [removed: |]

| Working [removed: capital(2)] [added: capital(1)] | [added: $] | [added: 75,402 | | |] $ | (187,020 | ) | | $ | 319,050 | | | $ | (243,910 | ) | | $ | 280,325 | | [removed: | $ | 191,168 | |]

| Total assets | [removed: |] $ | [removed: 12,970,475] [added: 14,397,416] | | | $ | [removed: 12,045,641] [added: 12,970,475] | | | $ | [removed: 11,095,995] [added: 12,045,641] | | | $ | [removed: 10,322,677] [added: 11,095,995] | | | $ | [removed: 9,591,600] [added: 10,322,677] | |

| Current installments of notes payable and long-term debt | [removed: |] $ | [removed: 375,181] [added: 50,194] | | | $ | [removed: 25,197] [added: 375,181] | | | $ | [removed: 444,255] [added: 25,197] | | | $ | [removed: 44,689] [added: 444,255] | | | $ | [removed: 321,964] [added: 44,689] | |

| Notes payable and long-term debt, less current installments | [removed: |] $ | [removed: 2,121,284] [added: 2,678,288] | | | $ | [removed: 2,493,502] [added: 2,121,284] | | | $ | [removed: 1,606,017] [added: 2,493,502] | | | $ | [removed: 2,046,655] [added: 1,606,017] | | | $ | [removed: 1,308,663] [added: 2,046,655] | |

| Total Jabil Inc. stockholders’ equity | [removed: |] $ | [removed: 1,887,443] [added: 1,811,384] | | | $ | [removed: 1,950,257] [added: 1,887,443] | | | $ | [removed: 2,353,514] [added: 1,950,257] | | | $ | [removed: 2,438,171] [added: 2,353,514] | | | $ | [removed: 2,314,856] [added: 2,438,171] | |

| Common stock shares outstanding | [added: 150,330] | | [added: | |] 153,520 | | | | 164,588 | | | | 177,728 | | | | 186,998 | | | [removed: | 192,068 | |]

| Consolidated Cash Flow Data: | | | | | | | | | | | | | | | | | | | | [removed: |]

| Investing activities: | | | | | | | | | | | | | | | | | | | | [removed: |]

| Acquisition of property, plant and equipment | [removed: |] $ | [removed: (1,005,480] [added: (983,035] | ) | | $ | [removed: (1,036,651] [added: (1,005,480] | ) | | $ | [removed: (716,485] [added: (1,036,651] | ) | | $ | [removed: (924,239] [added: (716,485] | ) | | $ | [removed: (963,145] [added: (924,239] | ) |

| Proceeds and advances from sale of property, plant and equipment | [removed: |] $ | [removed: 218,708] [added: 186,655] | | | $ | [removed: 350,291] [added: 218,708] | | | $ | [removed: 175,000] [added: 350,291] | | | $ | [removed: 26,031] [added: 175,000] | | | $ | [removed: 15,784] [added: 26,031] | |

| Financing activities: | | | | | | | | | | | | | | | | | | | | [removed: |]

| Payments to acquire treasury stock | [removed: |] $ | [removed: (350,323] [added: (214,510] | ) | | $ | [removed: (450,319] [added: (350,323] | ) | | $ | [removed: (306,640] [added: (450,319] | ) | | $ | [removed: (148,340] [added: (306,640] | ) | | $ | [removed: (85,576] [added: (148,340] | ) |

| [removed: (2)] [added: (1)] | Working capital is defined as current assets minus current liabilities. |

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| | Fiscal Year Ended August 31, | | | | | | | | | | | | | | | | | | |

| | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | | | | 2016 | | |

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| | Fiscal Year Ended August 31, | | | | | | | | | | | | | | | | | | |

| | 2020 | | | | 2019 | | | | 2018 | | | | 2017 | | | | 2016 | | |

| | (in thousands) | | | | | | | | | | | | | | | | | | |

| | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Discontinued operations, net of tax(1) | | | — | | | | — | | | | — | | | | — | | | | (8,573 | ) |

| Net income | | | 289,474 | | | | 87,541 | | | | 127,167 | | | | 254,896 | | | | 285,612 | |

| Basic: | | | | | | | | | | | | | | | | | | | | |

| Income from continuing operations, net of tax | | $ | 1.85 | | | $ | 0.50 | | | $ | 0.71 | | | $ | 1.33 | | | $ | 1.51 | |

| Discontinued operations, net of tax(1) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (0.04 | ) |

| Diluted: | | | | | | | | | | | | | | | | | | | | |

| Income from continuing operations, net of tax | | $ | 1.81 | | | $ | 0.49 | | | $ | 0.69 | | | $ | 1.32 | | | $ | 1.49 | |

| | | August 31, | | | | | | | | | | | | | | | | | | |

| (1) | During fiscal year 2014, we sold our Aftermarket Services business for consideration of $725.0 million. |

| --- | --- |

##### [Table of Contents](#toc)

##### [Table of Contents](#toc)

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, [removed: 2019.][added: 2020.]

We assessed the effectiveness of our internal control over financial reporting as of August 31, [removed: 2019.][added: 2020.]

Management’s report on internal control over financial reporting as of August 31, [removed: 2019] [added: 2020] 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, [removed: 2019,] [added: 2020,] which is incorporated herein at Item 15.

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, [removed: 2019.][added: 2020.]

On [removed: February 25, 2019 and April 29,] [added: September 30,] 2019, we completed the [removed: initial] [added: third] closing [removed: and second closing, respectively,] of our acquisition of certain assets of Johnson & Johnson Medical Devices Companies (“JJMD”).

In accordance with the SEC guidance, the scope of our evaluation of internal controls over financial reporting as of August 31, [removed: 2019] [added: 2020] did not include the internal control over financial reporting of these acquired operations.

Assets acquired from JJMD [added: during the third closing] represent [removed: 1.8%] [added: 2.1%] of our total consolidated assets at August 31, [removed: 2019.][added: 2020.]

Net revenue generated by [removed: JJMD] [added: these assets] subsequent to the [removed: dates] [added: date] of acquisition represents [removed: 1.3%] [added: 1.9%] of our consolidated net revenue for the fiscal year ended August 31, [removed: 2019.][added: 2020.]

From the acquisition [removed: dates] [added: date] to August 31, [removed: 2019,] [added: 2020,] the processes and systems of the acquired operations did not significantly impact our internal control over financial reporting.

For our fiscal quarter ended August 31, [removed: 2019,] [added: 2020,] 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.

##### [Table of Contents](#toc)

##### [Table of Contents](#toc)

The other information required by this item is incorporated by reference to the information set forth under the captions “Election of Directors”, “Beneficial Ownership – Delinquent Section 16(a) [removed: Reports” and] [added: Reports”,] “Corporate [removed: Governance” and] [added: Governance”,] “Board of Directors” [added: 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, [removed: 2019] [added: 2020] (“Proxy Statement”).

The information required by this item is incorporated by reference to the information set forth under the captions “Compensation [removed: Matters – Compensation Discussion and Analysis”,] [added: Matters”,] “Board of Directors – Director [removed: Compensation”,] [added: Compensation” and] “Corporate Governance – Compensation Committee Interlocks and Insider Participation” in our Proxy Statement.

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 [removed: ”– Ratification] [added: “Ratification] of Appointment of Independent Registered Public Accounting Firm” in our Proxy Statement.

##### [Table of Contents](#toc)

| [removed: |] (a) | The following documents are filed as part of this Report: |

| 1 | [removed: _Financial Statements._] [added: *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 | [removed: _Financial] [added: *Financial] Statement [removed: Schedule._] [added: 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. |

| 3 | [removed: _Exhibits._] [added: *Exhibits.*] See Item 15(b) below. |

| [removed: |] (b) | [removed: _Exhibits_.] [added: *Exhibits*.] The following exhibits are included as part of, or incorporated by reference into, this Report. |

| | | | | [added: |] Incorporated by Reference Herein | | | | | | |

| Exhibit No. | | [added: |] Description | | Form | | Exhibit | | [added: |] Filing Date/ Period End | | [removed: |]

| 3.1 | | [added: |] [Registrant’s Certificate of Incorporation, as [removed: amended.](http://www.sec.gov/Archives/edgar/data/898293/000119312517219901/d387238dex31.htm)] [added: amended.](https://www.sec.gov/Archives/edgar/data/898293/000119312517219901/d387238dex31.htm)] | | 10-Q | | 3.1 | | | 5/31/2017 | |

| 3.2 | | [added: |] [Registrant’s Bylaws, as [removed: amended.](http://www.sec.gov/Archives/edgar/data/898293/000119312517219901/d387238dex32.htm)] [added: amended.](https://www.sec.gov/Archives/edgar/data/898293/000119312517219901/d387238dex32.htm)] | | 10-Q | | 3.2 | | | 5/31/2017 | |

| 4.1 | | [added: |] Form of Certificate for Shares of the Registrant’s Common Stock. (P) | | S-1 | | 1 | | [removed: |] 3/17/1993 | | [added: |]

| 4.2 | | [added: |] [Indenture, dated January 16, 2008, with respect to Senior Debt Securities of the Registrant, between the Registrant and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as [removed: trustee.](http://www.sec.gov/Archives/edgar/data/898293/000119312508008114/dex42.htm)] [added: trustee.](https://www.sec.gov/Archives/edgar/data/898293/000119312508008114/dex42.htm)] | | 8-K | | 4.2 | | [removed: |] 1/17/2008 | | [added: |]

| 4.3 | | [added: |] [Form of [removed: 5.625%] [added: 4.700%] Registered Senior Notes issued on [removed: November 2, 2010](http://www.sec.gov/Archives/edgar/data/898293/000095012310099512/g25077exv4w1.htm)] [added: August 3, 2012](https://www.sec.gov/Archives/edgar/data/898293/000119312512337903/d391683dex41.htm)] | | 8-K | | 4.1 | | [added: 8/6/2012] | [removed: 11/2/2010] | |

| [removed: 4.5] [added: 4.4] | | [added: |] [Officers’ Certificate of the Registrant pursuant to the Indenture, dated [removed: November 2, 2010](http://www.sec.gov/Archives/edgar/data/898293/000095012310099512/g25077exv4w3.htm)] [added: August 3, 2012.](https://www.sec.gov/Archives/edgar/data/898293/000119312512337903/d391683dex43.htm)] | | 8-K | | 4.3 | | [added: 8/6/2012] | [removed: 11/2/2010] | |

| [removed: 4.7] [added: 4.5] | | [added: |] [Officers’ Certificate, dated as of January 17, 2018, establishing the 3.950% Senior Notes due [removed: 2028.](http://www.sec.gov/Archives/edgar/data/898293/000119312518012295/d460944dex41.htm)] [added: 2028.](https://www.sec.gov/Archives/edgar/data/898293/000119312518012295/d460944dex41.htm)] | | 8-K | | 4.1 | | [removed: |] 1/17/2018 | | [added: |]

| [removed: 4.8*] [added: 4.8] | | [added: |] [Description of Jabil Securities](https://www.sec.gov/Archives/edgar/data/898293/000119312519271646/d782178dex48.htm) | | [added: 10-K] | | [added: 4.8] | | | | [added: 8/31/2019] |

| 10.1† | | [added: |] Restated cash or deferred profit sharing plan under section 401(k). (P) | | S-1 | | | | | [removed: 3/3/1993] | [added: 3/3/1993] |

| 10.2† | | [added: |] Form of Indemnification Agreement between the Registrant and its Officers and Directors. (P) | | S-1 | | | | | [removed: 3/3/1993] | [added: 3/3/1993] |

| [removed: 10.3e] [added: 10.4e] | | [added: |] [Form of Jabil [removed: Circuit,] Inc. Restricted Stock [added: Unit] Award Agreement [removed: (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095012309052410/g20866exv10w5xfy.htm) | | | 10-K |] [added: (TBRSU-ONEU)](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex105.htm)] | | [added: 10-Q] | [removed: 10.5f] | [added: 10.5] | | | [removed: 8/31/2009] | [added: 11/30/2018] |

| 10.3f | | [added: |] [Form of [removed: Jabil Circuit, Inc.] Time-Based Restricted Stock [added: Unit] Award Agreement [removed: (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095012310094969/g24918exv10w5f.htm) | | | 10-K |] [added: (TBRSU DIR).](https://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w4.htm)] | | [added: 10-Q] | [removed: 10.5f] | [added: 10.4] | | | [removed: 8/31/2010] | [added: 5/31/2011] |

| [removed: 10.4†] [added: 10.3†] | | [added: |] [Jabil 2011 Stock Award and Incentive Plan, as Amended and [removed: Restated.](http://www.sec.gov/Archives/edgar/data/898293/000117494716003496/c454477_def14a.htm#a_109) |] [added: Restated.](https://www.sec.gov/Archives/edgar/data/898293/000117494716003496/c454477_def14a.htm#a_109)] | | 14A | | [removed: | |] A | | | | 12/9/2016 | [removed: |]

| [removed: 10.4a] [added: 10.3a] | | [added: |] [Form of Performance-Based Restricted Stock Unit Award Agreement (PBRSU EPS Officer [removed: – EU5).](http://www.sec.gov/Archives/edgar/data/898293/000119312516742815/d126783dex106m.htm) |] [added: - EU5).](https://www.sec.gov/Archives/edgar/data/898293/000119312516742815/d126783dex106m.htm)] | | 10-K | | [removed: | |] 10.6m | | | | 8/31/2016 | [removed: |]

| [removed: 10.4b] [added: 10.3b] | | [added: |] [Form of Performance-Based Restricted Stock Unit Award Agreement (PBRSU EPS Officer [removed: – Non-EU5).](http://www.sec.gov/Archives/edgar/data/898293/000119312516742815/d126783dex106n.htm) |] [added: - Non-EU5).](https://www.sec.gov/Archives/edgar/data/898293/000119312516742815/d126783dex106n.htm)] | | 10-K | | [removed: | |] 10.6n | | | | 8/31/2016 | [removed: |]

| [removed: 10.4c] [added: 10.3c] | | [added: |] [Form of Performance-Based Restricted Stock Unit Award Agreement (PBRSU EPS [removed: Non-Officer5).](http://www.sec.gov/Archives/edgar/data/898293/000119312516742815/d126783dex106o.htm) |] [added: Non-Officer5).](https://www.sec.gov/Archives/edgar/data/898293/000119312516742815/d126783dex106o.htm)] | | 10-K | | [removed: | |] 10.6o | | | | 8/31/2016 | [removed: |]

| [removed: 10.4d] [added: 10.3d] | | [added: |] [Form of Performance-Based Restricted Stock Unit Award Agreement (PBRSU TSR Officer [removed: – EU).](http://www.sec.gov/Archives/edgar/data/898293/000119312515345706/d48937dex106m.htm) |] [added: - EU).](https://www.sec.gov/Archives/edgar/data/898293/000119312515345706/d48937dex106m.htm)] | | 10-K | | [removed: | |] 10.6m | | | | 8/31/2015 | [removed: |]

| [removed: 10.4e] [added: 10.3e] | | [added: |] [Form of Performance-Based Restricted Stock Unit Award Agreement (PBRSU TSR Officer [removed: – Non-EU).](http://www.sec.gov/Archives/edgar/data/898293/000119312515345706/d48937dex106n.htm) |] [added: - Non-EU).](https://www.sec.gov/Archives/edgar/data/898293/000119312515345706/d48937dex106n.htm)] | | 10-K | | [removed: | |] 10.6n | | | | 8/31/2015 | [removed: |]

| [removed: 10.4f] [added: 10.3g] | | [added: |] [Form of Time-Based Restricted Stock Unit Award Agreement (TBRSU [removed: DIR).](http://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w4.htm) |] [added: NON).](https://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w5.htm)] | | 10-Q | | [removed: | | 10.4] [added: 10.5] | | | | 5/31/2011 | [removed: |]

| [removed: 10.4g] [added: 10.3h] | | [added: |] [Form of Time-Based Restricted Stock Unit Award Agreement (TBRSU [removed: NON).](http://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w5.htm) |] [added: OEU).](https://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w6.htm)] | | 10-Q | | [removed: | | 10.5] [added: 10.6] | | | | 5/31/2011 | [removed: |]

| [removed: 10.4h] [added: 10.3i] | | [added: |] [Form of Time-Based Restricted Stock Unit Award Agreement (TBRSU [removed: OEU).](http://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w6.htm) |] [added: ONEU).](https://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w7.htm)] | | 10-Q | | [removed: | | 10.6] [added: 10.7] | | | | 5/31/2011 | [removed: |]

| [removed: 10.4i] [added: 10.3j] | | [added: |] [Form of Time-Based Restricted Stock Unit Award Agreement [removed: (TBRSU ONEU).](http://www.sec.gov/Archives/edgar/data/898293/000095012311063340/g26940exv10w7.htm) |] [added: (ACQ TBRSU).](https://www.sec.gov/Archives/edgar/data/898293/000119312515230422/d931252dex101.htm)] | | 10-Q | | [removed: | | 10.7 |] [added: 10.1] | | | [removed: 5/31/2011] | [added: 5/31/2015] |

| [removed: 10.4j] [added: 10.4f] | | [added: |] [Form of [removed: Time-Based] [added: Jabil Inc.] Restricted Stock Unit Award Agreement [removed: (ACQ TBRSU).](http://www.sec.gov/Archives/edgar/data/898293/000119312515230422/d931252dex101.htm) |] [added: (TBRSU-OEU)](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex106.htm)] | | 10-Q | | [removed: | | 10.1 |] [added: 10.6] | | | [removed: 5/31/2015] | [added: 11/30/2018] |

| [removed: 10.4k] [added: 10.3k] | | [added: |] [Form of Stock Appreciation Right Award Agreement (SAR Officer [removed: –] [added: -] Non [removed: EU).](http://www.sec.gov/Archives/edgar/data/898293/000119312514377410/d768514dex107q.htm) |] [added: EU).](https://www.sec.gov/Archives/edgar/data/898293/000119312514377410/d768514dex107q.htm)] | | 10-K | | [removed: | |] 10.7q | | | | 8/31/2014 | [removed: |]

| [removed: 10.5†] [added: 10.4†] | | [added: |] [Jabil Inc. 2011 Employee Stock Purchase Plan, as [removed: amended](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex108.htm) |] [added: amended](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex108.htm)] | | 10-Q | | [removed: | |] 10.8 | | | | 11/30/2018 | [removed: |]

| [removed: 10.5a] [added: 10.4a] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU EPS [removed: –] [added: -] Executive [removed: – EU)](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex101.htm) |] [added: - EU)](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex101.htm)] | | 10-Q | | [removed: | |] 10.1 | | | | 11/30/2018 | [removed: |]

| [removed: 10.5b] [added: 10.4b] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU EPS [removed: –] [added: -] Executive [removed: – Non-EU)](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex102.htm) |] [added: - Non-EU)](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex102.htm)] | | 10-Q | | [removed: | |] 10.2 | | | | 11/30/2018 | [removed: |]

| [removed: 10.5c] [added: 10.4c] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU TSR [removed: – ONEU).](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex103.htm) |] [added: - ONEU).](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex103.htm)] | | 10-Q | | [removed: | |] 10.3 | | | | 11/30/2018 | [removed: |]

| [removed: 10.5d] [added: 10.4d] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement (PBRSU TSR [removed: – OEU).](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex104.htm) |] [added: - OEU).](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex104.htm)] | | 10-Q | | [removed: | |] 10.4 | | | | 11/30/2018 | [removed: |]

| [removed: 10.5e] [added: 10.4g] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement [removed: (TBRSU-ONEU)](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex105.htm) |] [added: (TBRSU-DIR)](https://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex107.htm)] | | 10-Q | | [removed: | | 10.5] [added: 10.7] | | | | 11/30/2018 | [removed: |]

| [removed: 10.5f] [added: 10.4m] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement [removed: (TBRSU-OEU)](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex106.htm) |] [added: (TBRSU-OEU).](https://www.sec.gov/Archives/edgar/data/898293/000119312520001434/d852870dex106.htm)] | | 10-Q | | [removed: | |] 10.6 | | | | [removed: 11/30/2018 |] [added: 11/30/2019] |

| [removed: 10.5g] [added: 10.4n] | | [added: |] [Form of Jabil Inc. Restricted Stock Unit Award Agreement [removed: (TBRSU-DIR)](http://www.sec.gov/Archives/edgar/data/898293/000119312519005404/d663336dex107.htm) |] [added: (TBRSU-DIR).](https://www.sec.gov/Archives/edgar/data/898293/000119312520001434/d852870dex107.htm)] | | 10-Q | | [removed: | |] 10.7 | | | | [removed: 11/30/2018 |] [added: 11/30/2019] |

| [removed: 10.6†] [added: 10.5†] | | [added: |] [Executive Deferred Compensation [removed: Plan.](http://www.sec.gov/Archives/edgar/data/898293/000095012311018473/g26273exv4w1.htm)] [added: Plan.](https://www.sec.gov/Archives/edgar/data/898293/000095012311018473/g26273exv4w1.htm)] | | S-8 | | 4.1 | | | [removed: 2/25/2011] | [added: 2/25/2011] |

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| 4.6 | | | [Officers’ Certificate, dated as of January 15, 2020, establishing the 3.600% Senior Notes due 2030.](https://www.sec.gov/Archives/edgar/data/898293/000119312520008126/d870866dex41.htm) | | 8-K | | 4.1 | | 1/15/2020 | | |

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| 4.7 | | | [Officers’ Certificate, dated as of July 13, 2020, establishing the 3.000% Senior Notes due 2031.](https://www.sec.gov/Archives/edgar/data/898293/000119312520191916/d924129dex41.htm) | | 8-K | | 4.1 | | | | 7/13/2020 |

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| 4.4 | | [Form of 4.700% Registered Senior Notes issued on August 3, 2012](http://www.sec.gov/Archives/edgar/data/898293/000119312512337903/d391683dex41.htm) | | 8-K | | 4.1 | | | 8/6/2012 | |

| 4.6 | | [Officers’ Certificate of the Registrant pursuant to the Indenture, dated August 3, 2012.](http://www.sec.gov/Archives/edgar/data/898293/000119312512337903/d391683dex43.htm) | | 8-K | | 4.3 | | | 8/6/2012 | |

| 10.3† | | [Jabil 2002 Stock Incentive Plan.](http://www.sec.gov/Archives/edgar/data/898293/000095012310094969/g24918exv10w5.htm) | | 10-K | | 10.5 | | | 8/31/2010 | |

| 10.3a | | [Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan Stock Option Agreement (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095014404010550/g91463exv10w6w1.htm) | | 10-K | | 10.6.1 | | | 8/31/2004 | |

| 10.3b | | [Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan-French Subplan Stock Option Agreement (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095014404010550/g91463exv10w6w2.htm) | | 10-K | | 10.6.2 | | | 8/31/2004 | |

##### [Table of Contents](#toc)

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| 10.3c | | [Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan-UK Subplan CSOP Option Certificate (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095014404010550/g91463exv10w6w3.htm) | | | 10-K | | | | 10.6.3 | | | | 8/31/2004 | |

| 10.3d | | [Form of Jabil Circuit, Inc. 2002 Stock Incentive Plan-UK Subplan Stock Option Agreement (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095014404010550/g91463exv10w6w4.htm) | | | 10-K | | | | 10.6.4 | | | | 8/31/2004 | |

| 10.3g | | [Form of Jabil Circuit, Inc. Performance-Based Restricted Stock Award Agreement (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095012310094969/g24918exv10w5g.htm) | | | 10-K | | | | 10.5g | | | | 8/31/2010 | |

| 10.3h | | [Form of Stock Appreciation Right Agreement (prior form).](http://www.sec.gov/Archives/edgar/data/898293/000095014405010851/g97797exv10w6w6.htm) | | | 10-K | | | | 10.6.6 | | | | 8/31/2005 | |

| 10.3i† | | [Addendum to the Terms and Conditions of the Jabil Circuit, Inc. 2002 Stock Incentive Plan for Grantees Resident in France.](http://www.sec.gov/Archives/edgar/data/898293/000095014403007733/g83382bexv4w2.htm) | | | S-8 | | | | 4.2 | | | | 6/13/2003 | |

| 10.3j† | | [Schedule to the Jabil Circuit, Inc. 2002 Stock Incentive Plan for Grantees Resident in the United Kingdom.](http://www.sec.gov/Archives/edgar/data/898293/000095014402009037/g77728exv4w1.txt) | | | S-8 | | | | 4.1 | | | | 8/16/2002 | |

| 10.7 | | [Amended and Restated Five Year Credit Agreement dated as of July 6, 2015, amoung the Registraint; the intial lenders named therein; Citibank, N.A., as administrative agent; JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-syndication agents; BNP Paribas, Mizuho Bank, Ltd., and The Bank of Nova Scotia as documentation agents; and Citigroup Global Markets Inc., JPMorgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, BNP Paribas Securities Corp., Mizuho Bank, Ltd. and The Bank of Nova Scotia.](http://www.sec.gov/Archives/edgar/data/898293/000119312515345706/d48937dex108.htm) | | 10-K | | 10.8 | | | 8/31/2015 | |

| | XBRL (Extensible Business Reporting Language) Filed Electronically with this report. |

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October 22, 2019

See below for discussion of our related critical audit matter.

As discussed in Note 2 to the consolidated financial statements, the Company changed its classification of cash receipts on the deferred purchase price receivable on asset-backed securitization transactions in 2019 due to the adoption of ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.

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| | | _Adoption of ASU No. 2014-09, Revenue from Contracts with Customers_ |

| _Description of the Matter_ | | As more fully described above and in Note 18 to the consolidated financial statements, effective September 1, 2018, the Company adopted ASU No. 2014-09, _Revenue from Contracts with Customers_, on a modified retrospective basis, which resulted in a $43 million transition adjustment to increase retained earnings. Auditing the Company’s implementation of the new revenue standard was challenging due to the judgment in applying the new standard regarding whether performance obligations within the Company’s contracts with customers are satisfied over time or at a point in time. More specifically, applying the criteria within the new standard for determining the timing of satisfaction of performance obligations, such as whether an enforceable right to payment for performance completed to date exists, was complex. |

| _How We Addressed the Matter in Our Audit_ | | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s implementation of the new revenue standard. We tested controls over management’s contract reviews, including controls over the application of the new standard to contracts to assess whether performance obligations are satisfied over time or at a point in time. To test the Company’s implementation of the new revenue standard, our audit procedures included, among others, assessing whether the Company’s new accounting policy complies with the new standard, evaluating the terms of the Company’s contracts with customers and evaluating management’s application of the new standard to the Company’s contracts. More specifically, we inspected the terms of a sample of the Company’s contracts and evaluated management’s determination of whether performance obligations are satisfied over time or at a point in time based on the criteria within the new standard. We also tested the data and assumptions used in the computation of the Company’s transition adjustment. |

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| | | August 31, | | | | | | |

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| Loss on disposal of subsidiaries | | | — | | | | — | | | | 2,112 | |

| Total stockholders’ equity, beginning balances | | $ | 1,963,380 | | | $ | 2,368,344 | | | $ | 2,457,497 | |

| Purchase of noncontrolling interests | | | — | | | | — | | | | (134 | ) |

| Cash and cash equivalents at beginning of period | | | 1,257,949 | | | | 1,189,919 | | | | 912,059 | |