Fair Value Measurements (Tables)

3 Months Ended

Nov. 30, 2014

Assets measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis were as follows (In millions):

	November 30, 2014		Level 1		Level 2		Level 3
Assets:
Money market and other cash equivalents	$	11,605	$	11,605	$	-	$	-
Interest rate swaps⁽¹⁾		26		-		26		-
Investment in AmerisourceBergen ⁽²⁾		1,044		1,044		-		-
Warrants ⁽³⁾		844		-		844		-
Liabilities:
Foreign currency forwards⁽⁴⁾		96		96		-		-

	August 31, 2014		Level 1		Level 2		Level 3
Assets:
Money market funds	$	1,879	$	1,879	$	-	$	-
Interest rate swaps⁽¹⁾		16		-		16		-
Investment in AmerisourceBergen ⁽²⁾		887		887		-		-
Warrants ⁽³⁾		553		-		553		-
Liabilities:
Forward interest rate swaps⁽⁵⁾		44		-		44		-

	November 30, 2013		Level 1		Level 2		Level 3
Assets:
Money market funds	$	360	$	360	$	-	$	-
Interest rate swaps⁽¹⁾		23		-		23		-
Investment in AmerisourceBergen ⁽²⁾		599		599		-		-
Warrants ⁽³⁾		408		-		408		-

⁽¹⁾	Interest rate swaps are valued using six-month and one-month LIBOR in arrears rates. See Note 9 for additional disclosure regarding financial instruments.

⁽²⁾	The investment in AmerisourceBergen is valued using the closing stock price of AmerisourceBergen as of the balance sheet dates. See Note 6 for additional disclosures on available-for-sale investments.

⁽³⁾

Warrants were valued using a Monte Carlo simulation. Key assumptions used in the valuation include risk-free interest rates using constant maturity treasury rates; the dividend yield for AmerisourceBergen’s common stock; AmerisourceBergen’s common stock price at the valuation date; AmerisourceBergen’s equity volatility; the number of shares of AmerisourceBergen’s common stock outstanding; the number of AmerisourceBergen employee stock options and the exercise price; and the details specific to the warrants.

⁽⁴⁾	Foreign currency forwards are valued using published exchange rates on the respective balance sheet dates.

⁽⁵⁾	Forward interest rate swaps are valued using three-month LIBOR in arrears rates. See Note 9 for additional disclosure regarding financial instruments.