Financial Instruments (Tables)

6 Months Ended

Feb. 29, 2016

Notional Amounts of Derivative Instruments Outstanding

The notional amounts, fair value and balance sheet presentation of derivative instruments outstanding as of February 29, 2016, excluding warrants which are presented separately in this footnote, were as follows (in millions):

	Notional⁽¹⁾		Fair Value		Location in Consolidated Condensed Balance Sheets
Derivatives designated as fair value hedges:
Interest rate swaps	$	250	$	5	Other non-current assets
Derivatives not designated as hedges:
Foreign currency forwards		465		1	Other current assets
Foreign currency forwards		768		16	Other current liabilities
Basis swap		2		1	Other current liabilities

⁽¹⁾	Amounts are presented in U.S. dollar equivalents.

The notional amounts, fair value and balance sheet presentation of derivative instruments outstanding as of August 31, 2015, excluding warrants which are presented separately in this footnote, are as follows (in millions):

	Notional⁽¹⁾		Fair Value		Location in Consolidated Condensed Balance Sheets
Derivatives designated as fair value hedges:
Interest rate swaps	$	250	$	2	Other non-current assets
Derivatives not designated as hedges:
Foreign currency forwards		1,205		34	Other current assets
Foreign currency forwards		495		9	Other current liabilities
Basis swap		1		-	Other current assets

⁽¹⁾	Amounts are presented in U.S. dollar equivalents.

Schedule of Derivative Assets at Fair Value

The Company reports the Warrants at fair value. The fair value and balance sheet presentation of the Warrants was as follows (in millions):

	Location in Consolidated Condensed Balance Sheets	February 29, 2016		August 31, 2015
Asset derivatives not designated as hedges:
Warrants	Other non-current assets	$	1,546	$	2,140

Designated as Hedging Instrument [Member]

Derivative [Line Items]

Gains and Losses due to Changes in Fair Value Recognized in Earnings

The gains and losses due to changes in fair value on the swaps and on the hedged notes attributable to interest rate risk were recognized as follows (in millions):

	Location in Consolidated	Three Months Ended						Six Months Ended
	Condensed Statements of Earnings	February 29, 2016			February 28, 2015			February 29, 2016			February 28, 2015
Interest rate swaps	Interest expense, net	$	(2	)	$	4		$	(3	)	$	(6	)
Notes	Interest expense, net		2			(4	)		3			6

Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

Gains and Losses due to Changes in Fair Value Recognized in Earnings

The gains and losses due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions):

	Location in Consolidated	Three Months Ended						Six Months Ended
	Condensed Statements of Earnings	February 29, 2016			February 28, 2015			February 29, 2016			February 28, 2015
Interest rate swaps	Interest expense, net	$	-		$	(1	)	$	-		$	(1	)
Foreign currency forwards	Selling, general and administrative expenses		(23	)		(28	)		(25	)		(28	)
Second Step Transaction foreign currency forwards	Other income (expense)		-			(70	)		-			(166	)
Foreign currency forwards	Other income (expense)		33			-			33			-

Warrant [Member] | Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

Gains and Losses due to Changes in Fair Value Recognized in Earnings

The gains and losses due to changes in fair value of the Warrants recognized in earnings were as follows (in millions):

		Three Months Ended					Six Months Ended
	Location in Consolidated Condensed Statements of Earnings	February 29, 2016			February 28, 2015		February 29, 2016			February 28, 2015
Warrants	Other income (expense)	$	(532	)	$	559	$	(594	)	$	849