Fair value measurements (Tables)

6 Months Ended

Feb. 29, 2020

Fair Value Disclosures [Abstract]

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):

	February 29, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds1	$	146	$	146	$	—	$	—
Investments in equity securities2	4		4		—		—
Foreign currency forwards3	59		—		59		—
Cross currency interest rate swaps4	43		—		43		—
Liabilities:
Foreign currency forwards3	9		—		9		—
Cross currency interest rate swaps4	4		—		4		—

	August 31, 2019		Level 1		Level 2		Level 3
Assets:
Money market funds1	$	217	$	217	$	—	$	—
Investments in equity securities2	5		5		—		—
Foreign currency forwards3	88		—		88		—
Cross currency interest rate swaps4	73		—		73		—
Liabilities:
Foreign currency forwards3	6		—		6		—

¹Money market funds are valued at the closing price reported by the fund sponsor.

²Fair values of quoted investments are based on current bid prices as of February 29, 2020 and August 31, 2019.

³The fair value of 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. See note 8, financial instruments, for additional information.

⁴The fair value of cross currency interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See note 8, financial instruments, for additional information.