Financial instruments (Tables)

12 Months Ended

Aug. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional amounts of derivative instruments outstanding

The notional amounts and fair value of derivative instruments outstanding were as follows (in millions):

August 31, 2020	Notional		Fair value		Location in Consolidated Balance Sheets
Derivatives designated as hedges:
Cross currency interest rate swaps	$	722	$	16	Other non-current assets
Foreign currency forwards	100		1		Other current assets
Cross currency interest rate swaps	50		—		Other current assets
Foreign currency forwards	49		1		Other non-current liabilities
Cross currency interest rate swaps	318		13		Other non-current liabilities
Interest rate swaps	1,000		10		Other non-current liabilities
Foreign currency forwards	671		23		Other current liabilities
Cross currency interest rate swaps	103		3		Other current liabilities
Derivatives not designated as hedges:
Foreign currency forwards	1,930		19		Other current assets
Foreign currency forwards	2,934		56		Other current liabilities
Total return swap	205		1		Other current liabilities

August 31, 2019	Notional		Fair value		Location in Consolidated Balance Sheets
Derivatives designated as hedges:
Cross currency interest rate swaps	$	800	$	73	Other non-current assets
Foreign currency forwards	18		1		Other current assets
Derivatives not designated as hedges:
Foreign currency forwards	3,485		87		Other current assets
Foreign currency forwards	707		6		Other current liabilities

Gains and losses due to changes in fair value recognized in earnings

These derivative instruments are economic hedges of foreign currency risks. The Company also utilizes total return swaps to economically hedge variability in compensation charges related to certain deferred compensation obligations. The income and (expense) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions):

	Location in Consolidated Statements of Earnings	2020		2019		2018
Foreign currency forwards	Selling, general and administrative expense	$	(63)	$	139	$	17
Total return swap	Selling, general and administrative expense	24		—		—
Foreign currency forwards	Other income (expense)	11		(18)		22