Fair Value Measurements (Tables)

9 Months Ended

May 31, 2016

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

	May 31, 2016		Level 1		Level 2		Level 3
Assets:
Restricted cash ⁽¹⁾	$	174	$	174	$	-	$	-
Money market funds ⁽²⁾		2,363		2,363		-		-
Available-for-sale investments ⁽³⁾		35		35		-		-
Interest rate swaps ⁽⁴⁾		4		-		4		-
Foreign currency forwards ⁽⁵⁾		17		-		17		-
Warrants ⁽⁶⁾		498		-		498		-
Liabilities:
Basis swaps ⁽⁵⁾		1		-		1		-

	August 31, 2015		Level 1		Level 2		Level 3
Assets:
Restricted cash ⁽¹⁾	$	184	$	184	$	-	$	-
Money market funds ⁽²⁾		2,043		2,043		-		-
Available-for-sale investments ⁽³⁾		1,183		1,183		-		-
Interest rate swaps ⁽⁴⁾		2		-		2		-
Foreign currency forwards ⁽⁵⁾		34		-		34		-
Warrants ⁽⁶⁾		2,140		-		2,140		-
Liabilities:
Foreign currency forwards ⁽⁵⁾		9		-		9		-

⁽¹⁾	Restricted cash consists of deposits restricted under agency agreements and cash restricted by law and other obligations.

⁽²⁾	Money market funds are valued at the closing price reported by the fund sponsor.

⁽³⁾	Fair values of quoted investments are based on current bid prices as of the balance sheet dates. See Note 6, Available-for-Sale Investments for additional information.

⁽⁴⁾	The fair value of interest rate swaps is calculated by discounting the estimated cash flows received and paid based on the applicable observable yield curves. See Note 10, Financial Instruments for additional information.

⁽⁵⁾	The fair value of basis swaps and forward currency contracts is estimated by discounting the difference between the contractual forward price and the current available forward price for the residual maturity of the contract using observable market rates.

⁽⁶⁾

Warrants were valued using the contingent claims option pricing method. 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.