Leases

12 Months Ended

Aug. 31, 2022

Leases [Abstract]

Leases

Leases

Supplemental balance sheet information related to leases were as follows (in millions):

Balance sheet supplemental information:	August 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,259	$	21,893
Operating lease obligations - current	$	2,286	$	2,259
Operating lease obligations - non-current	21,517		22,153
Total operating lease obligations	$	23,803	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	645	$	725
Lease obligations included in:
Accrued expenses and other liabilities	$	37	$	37
Other non-current liabilities	899		974
Total finance lease obligations	$	936	$	1,010

Supplemental income statement information related to leases were as follows (in millions):

Statement of earnings supplemental information:	2022		2021		2020
Operating lease cost
Fixed	$	3,240	$	3,219	$	3,252
Variable 1	825		664		750
Finance lease cost
Amortization	$	44	$	45	$	40
Interest	50		52		54
Sublease income	$	105	$	84	$	75
Impairment of right-of-use assets	218		86		213
Impairment of finance lease assets	—		—		24
Gains on sale-leaseback transactions 2	619		367		308

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.

2Recorded within Selling, general and administrative expenses.

Other supplemental information was as follows (in millions):

Other supplemental information:	2022		2021		2020
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	3,351	$	3,414	$	3,251
Operating cash flows from finance leases	47		48		48
Financing cash flows from finance leases	43		42		47
Total	$	3,441	$	3,503	$	3,346
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	2,078	$	2,765	$	2,443
Finance leases	11		—		65
Total	$	2,089	$	2,765	$	2,508

Weighted average lease term and discount rate for real estate leases as of August 31, 2022 were as follows:

Weighted average lease terms and discount rates:	August 31, 2022		August 31, 2021
Weighted average remaining lease term in years
Operating leases	10.0		10.3
Finance leases	19.0		20.2
Weighted average discount rate
Operating leases	4.83	%	4.77	%
Finance leases	5.19	%	5.18	%

The aggregate future lease payments for operating and finance leases as of August 31, 2022 are as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease
2023	$	87	$	3,440
2024	87		3,342
2025	86		3,236
2026	86		3,136
2027	86		3,038
Later	1,041		14,140
Total undiscounted minimum lease payments	$	1,471	$	30,333
Less: Present value discount	(536)		(6,530)
Lease liability	$	936	$	23,803

Leases

Leases

Supplemental balance sheet information related to leases were as follows (in millions):

Balance sheet supplemental information:	August 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,259	$	21,893
Operating lease obligations - current	$	2,286	$	2,259
Operating lease obligations - non-current	21,517		22,153
Total operating lease obligations	$	23,803	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	645	$	725
Lease obligations included in:
Accrued expenses and other liabilities	$	37	$	37
Other non-current liabilities	899		974
Total finance lease obligations	$	936	$	1,010

Supplemental income statement information related to leases were as follows (in millions):

Statement of earnings supplemental information:	2022		2021		2020
Operating lease cost
Fixed	$	3,240	$	3,219	$	3,252
Variable 1	825		664		750
Finance lease cost
Amortization	$	44	$	45	$	40
Interest	50		52		54
Sublease income	$	105	$	84	$	75
Impairment of right-of-use assets	218		86		213
Impairment of finance lease assets	—		—		24
Gains on sale-leaseback transactions 2	619		367		308

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.

2Recorded within Selling, general and administrative expenses.

Other supplemental information was as follows (in millions):

Other supplemental information:	2022		2021		2020
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	3,351	$	3,414	$	3,251
Operating cash flows from finance leases	47		48		48
Financing cash flows from finance leases	43		42		47
Total	$	3,441	$	3,503	$	3,346
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	2,078	$	2,765	$	2,443
Finance leases	11		—		65
Total	$	2,089	$	2,765	$	2,508

Weighted average lease term and discount rate for real estate leases as of August 31, 2022 were as follows:

Weighted average lease terms and discount rates:	August 31, 2022		August 31, 2021
Weighted average remaining lease term in years
Operating leases	10.0		10.3
Finance leases	19.0		20.2
Weighted average discount rate
Operating leases	4.83	%	4.77	%
Finance leases	5.19	%	5.18	%

The aggregate future lease payments for operating and finance leases as of August 31, 2022 are as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease
2023	$	87	$	3,440
2024	87		3,342
2025	86		3,236
2026	86		3,136
2027	86		3,038
Later	1,041		14,140
Total undiscounted minimum lease payments	$	1,471	$	30,333
Less: Present value discount	(536)		(6,530)
Lease liability	$	936	$	23,803