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Fair value measurements
 6 Months Ended
Feb. 28, 2021
Fair Value Disclosures [Abstract]  
Fair value measurements Fair value measurements
The Company measures certain assets and liabilities in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, which defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In addition, it establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
Level 2 - Observable inputs other than quoted prices in active markets.
Level 3 - Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):
 February 28, 2021Level 1Level 2Level 3
Assets:
    
Money market funds1
$337 $337 $— $— 
Investments in equity securities2
13 13 — — 
Investments in debt securities3
520 — — 520 
Foreign currency forwards4
11 — 11 — 
Interest rate swaps5
7 — 7 — 
Warrants2 — 2 — 
Liabilities:
    
Foreign currency forwards4
$58 $— $58 $— 
Cross currency interest rate swaps5
56 — 56 — 
Total return swap4 — 4 — 

 August 31, 2020Level 1Level 2Level 3
Assets:
    
Money market funds1
$6 $6 $— $— 
Investments in equity securities2
1 1 — — 
Foreign currency forwards4
20 — 20 — 
Cross currency interest rate swaps5
16 — 16 — 
Liabilities:
    
Foreign currency forwards4
$80 $— $80 $— 
Cross currency interest rate swaps5
16 — 16 — 
Interest rate swaps5
10— 10— 
Total return swap1— 1— 

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 28, 2021 and August 31, 2020.
3Level 3 debt securities are valued using standard valuation techniques based on income and market approach.
4The 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 9 Financial instruments, for additional information.
5The fair value of cross currency interest rate swaps and interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 9 Financial instruments, for additional information.

There were no transfers between Levels for the three and six months ended February 28, 2021.

As of February 28, 2021, the carrying amounts and estimated fair values of long-term notes outstanding including the current portion were $12.2 billion and $13.3 billion, respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the February 28, 2021 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of February 28, 2021. See Note 8 Debt, for further information.

The carrying values of the Company's commercial paper, credit facilities, accounts receivable and trade accounts payable approximated their respective fair values due to their short-term nature.