Leases (Tables)

12 Months Ended

Aug. 31, 2017

Leases [Abstract]

Schedule of future minimum rental payments for operating leases

Annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below (in millions):

	Finance lease obligation		Capital lease		Operating lease1
2018	$	18	$	62	$	3,210
2019	18		60		3,045
2020	18		59		2,844
2021	18		58		2,605
2022	18		56		2,371
Later	235		915		18,736
Total minimum lease payments	$	325	$	1,210	$	32,811

¹ Includes $1,370 million of annual minimum rental commitments on closed locations for which a reserve for facility closings has been recognized

Schedule of future minimum lease payments for capital leases

Annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below (in millions):

	Finance lease obligation		Capital lease		Operating lease1
2018	$	18	$	62	$	3,210
2019	18		60		3,045
2020	18		59		2,844
2021	18		58		2,605
2022	18		56		2,371
Later	235		915		18,736
Total minimum lease payments	$	325	$	1,210	$	32,811

¹ Includes $1,370 million of annual minimum rental commitments on closed locations for which a reserve for facility closings has been recognized

Reserve for facility closings and related lease termination charges

The changes in reserve for facility closings and related lease termination charges include the following (in millions):

	2017			2016
Balance at beginning of period	$	466		$	446
Provision for present value of non-cancellable lease payments on closed facilities	344			134
Assumptions about future sublease income, terminations and changes in interest rates	13			(34		)
Interest accretion	37			27
Cash payments, net of sublease income	(142		)	(107		)
Balance at end of period	$	718		$	466

Schedule of rental expense

Rental expense, which includes common area maintenance, insurance and taxes, where appropriate, was as follows (in millions):

	2017			2016			2015
Minimum rentals	$	3,259		$	3,355		$	3,176
Contingent rentals	59			60			38
Less: sublease rental income	(55		)	(49		)	(46		)
	$	3,263		$	3,366		$	3,168