INCOME TAXES (Tables)
| 12 Months Ended |
|---|
Aug. 31, 2011 |
|---|
| Components of current and deferred income taxes by period |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fiscal |
|
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
Current taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. federal
|
|
$ |
334,400 |
|
|
$ |
302,500 |
|
|
$ |
256,379 |
|
|
U.S. state and
local
|
|
|
46,878 |
|
|
|
42,562 |
|
|
|
30,187 |
|
|
Non-U.S.
|
|
|
747,762 |
|
|
|
437,150 |
|
|
|
511,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current tax
expense
|
|
|
1,129,040 |
|
|
|
782,212 |
|
|
|
798,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. federal
|
|
|
(8,229 |
) |
|
|
(56,848 |
) |
|
|
22,437 |
|
|
U.S. state and
local
|
|
|
(1,140 |
) |
|
|
(8,123 |
) |
|
|
2,383 |
|
|
Non-U.S.
|
|
|
(160,889 |
) |
|
|
136,669 |
|
|
|
(83,686 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax
(benefit) expense
|
|
|
(170,258 |
) |
|
|
71,698 |
|
|
|
(58,866 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
958,782 |
|
|
$ |
853,910 |
|
|
$ |
739,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Components of Income Before Income Taxes |
The components of Income before income taxes were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fiscal |
|
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
U.S. sources
|
|
$ |
719,315 |
|
|
$ |
526,721 |
|
|
$ |
689,076 |
|
|
Non-U.S. sources
|
|
|
2,792,707 |
|
|
|
2,387,648 |
|
|
|
1,988,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
3,512,022 |
|
|
$ |
2,914,369 |
|
|
$ |
2,677,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of the U.S. federal statutory income tax rate to effective tax rate |
The reconciliation of the U.S. federal statutory income tax
rate to the Company’s effective income tax rate was as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fiscal |
|
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
U.S. federal statutory
income tax rate
|
|
|
35.0 |
% |
|
|
35.0 |
% |
|
|
35.0 |
% |
|
U.S. state and local taxes,
net
|
|
|
0.9 |
|
|
|
0.9 |
|
|
|
1.2 |
|
|
Non-U.S. operations taxed
at lower rates
|
|
|
(14.6 |
) |
|
|
(10.1 |
) |
|
|
(10.0 |
) |
|
Final
determinations(1)
|
|
|
(0.6 |
) |
|
|
(1.1 |
) |
|
|
(4.1 |
) |
|
Other net activity in
unrecognized tax benefits
|
|
|
4.8 |
|
|
|
2.5 |
|
|
|
3.4 |
|
|
Other, net
|
|
|
1.8 |
|
|
|
2.1 |
|
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax
rate
|
|
|
27.3 |
% |
|
|
29.3 |
% |
|
|
27.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Final determinations include final agreements with tax
authorities and expirations of statutes of limitations.
|
|
| Components of Deferred Tax Assets And Liabilities |
The components of the Company’s deferred tax assets and
liabilities included the following:
|
|
|
|
|
|
|
|
|
| |
|
August 31, |
|
| |
|
2011 |
|
|
2010 |
|
|
Deferred tax
assets:
|
|
|
|
|
|
|
|
|
|
Pensions
|
|
$ |
229,963 |
|
|
$ |
224,331 |
|
|
Revenue
recognition
|
|
|
96,930 |
|
|
|
84,110 |
|
|
Compensation and
benefits
|
|
|
379,597 |
|
|
|
336,572 |
|
|
Share-based
compensation
|
|
|
232,508 |
|
|
|
280,509 |
|
|
Tax credit
carryforwards
|
|
|
165,451 |
|
|
|
149,905 |
|
|
Net operating loss
carryforwards
|
|
|
181,892 |
|
|
|
158,302 |
|
|
Depreciation and
amortization
|
|
|
169,200 |
|
|
|
56,865 |
|
|
Indirect effects of
unrecognized tax benefits
|
|
|
254,101 |
|
|
|
121,464 |
|
|
Other
|
|
|
54,106 |
|
|
|
54,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,763,748 |
|
|
|
1,466,543 |
|
|
Valuation
allowance
|
|
|
(246,667 |
) |
|
|
(233,260 |
) |
|
|
|
|
|
|
|
|
|
|
Total deferred tax
assets
|
|
|
1,517,081 |
|
|
|
1,233,283 |
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities:
|
|
|
|
|
|
|
|
|
|
Revenue
recognition
|
|
|
(29,689 |
) |
|
|
(34,415 |
) |
|
Depreciation and
amortization
|
|
|
(75,230 |
) |
|
|
(44,866 |
) |
|
Investments in
subsidiaries
|
|
|
(161,474 |
) |
|
|
(137,229 |
) |
|
Other
|
|
|
(43,353 |
) |
|
|
(26,167 |
) |
|
|
|
|
|
|
|
|
|
|
Total deferred tax
liabilities
|
|
|
(309,746 |
) |
|
|
(242,677 |
) |
|
|
|
|
|
|
|
|
|
|
Net deferred tax
assets
|
|
$ |
1,207,335 |
|
|
$ |
990,606 |
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amounts of
unrecognized tax benefits was as follows:
|
|
|
|
|
|
|
|
|
| |
|
Fiscal |
|
| |
|
2011 |
|
|
2010 |
|
|
Balance, at beginning of
period
|
|
$ |
1,254,468 |
|
|
$ |
1,053,426 |
|
|
Additions for tax positions
related to the current year
|
|
|
316,550 |
|
|
|
151,008 |
|
|
Additions for tax positions
related to prior years
|
|
|
132,407 |
|
|
|
115,975 |
|
|
Reductions for tax
positions related to prior years
|
|
|
(77,072 |
) |
|
|
(39,772 |
) |
|
Statute of limitations
expirations
|
|
|
(8,056 |
) |
|
|
(7,611 |
) |
|
Settlements with tax
authorities
|
|
|
(7,000 |
) |
|
|
(5,038 |
) |
|
Cumulative translation
adjustments
|
|
|
34,534 |
|
|
|
(13,520 |
) |
|
|
|
|
|
|
|
|
|
|
Balance, at end of
period
|
|
$ |
1,645,831 |
|
|
$ |
1,254,468 |
|
|
|
|
|
|
|
|
|
|
|