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Leases (Tables)
6 Months Ended
Feb. 28, 2023
Leases [Abstract]  
Schedule of Supplemental Balance Sheet Information
Supplemental balance sheet information related to leases were as follows (in millions):

Balance Sheet supplemental information:February 28, 2023August 31, 2022
Operating leases:
Operating lease right-of-use assets$22,024 $21,259 
Operating lease obligations - current2,340 2,286 
Operating lease obligations - non-current 22,195 21,517 
Total operating lease obligations$24,534 $23,803 
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net$694 $645 
Lease obligations included in:
Accrued expenses and other liabilities53 37 
Other non-current liabilities931 899 
Total finance lease obligations$984 $936 
Schedule of Supplemental Income Statement and Other Information
Supplemental income statement information related to leases were as follows (in millions):
Three months ended February 28,Six months ended February 28,
Statement of Earnings supplemental information:2023202220232022
Operating lease cost
Fixed$853 $815 $1,667 $1,619 
Variable 1
203 197 395 402 
Finance lease cost
Amortization$11 $11 $21 $22 
Interest12 13 24 26 
Sublease income$28 $26 $57 $51 
Impairment of right-of-use assets71 71 
Gain on sale and leaseback 2
U.S. Retail Pharmacy$211 $148 $384 $235 
International 3
132 — 148 — 
Total gain on sale and leaseback 2
$343 $148 $532 $235 

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.
2Recorded within Selling, general and administrative expenses within the Consolidated Condensed Statements of Earnings.
3Includes gain on sale and leaseback related to Germany wholesale business of $132 million and $148 million for the three and six months ended February 2023, respectively, of which $24 million and $41 million related to the optimization of warehouse locations as part of acquisition integration activities.
Six months ended February 28,
Other supplemental information:20232022
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases$1,720 $1,666 
Operating cash flows from finance leases22 23 
Financing cash flows from finance leases21 21 
Total$1,763 $1,710 
Right-of-use assets obtained in exchange for new lease obligations
Operating leases$1,135 $1,005 
Finance leases18 11 
Total$1,154 $1,016 

Weighted average lease term and discount rate for real estate leases were as follows:
Weighted average lease terms and discount rates:February 28, 2023August 31, 2022
Weighted average remaining lease term in years
Operating leases9.810.0
Finance leases17.719.0
Weighted average discount rate
Operating leases5.26 %4.83 %
Finance leases5.26 %5.19 %
Schedule of Aggregate Future Lease Payments Under Operating Leases
The aggregate future lease payments for operating and finance leases as of February 28, 2023 were as follows (in millions):

Future lease payments (fiscal years):Finance lease
Operating lease 1,2
2023 (Remaining period)$53 $1,805 
2024105 3,555 
2025101 3,450 
202698 3,361 
202797 3,266 
202888 3,108 
Later958 12,980 
Total undiscounted minimum lease payments$1,501 $31,524 
Less: Present value discount516 6,990 
Lease liability$984 $24,534 
Schedule of Aggregate Future Lease Payments Under Finance Leases
The aggregate future lease payments for operating and finance leases as of February 28, 2023 were as follows (in millions):

Future lease payments (fiscal years):Finance lease
Operating lease 1,2
2023 (Remaining period)$53 $1,805 
2024105 3,555 
2025101 3,450 
202698 3,361 
202797 3,266 
202888 3,108 
Later958 12,980 
Total undiscounted minimum lease payments$1,501 $31,524 
Less: Present value discount516 6,990 
Lease liability$984 $24,534