Leases (Tables)

9 Months Ended

May 31, 2024

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

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

Balance sheet supplemental information:	May 31, 2024		August 31, 2023
Operating leases:
Operating lease right-of-use assets	$	21,020	$	21,667
Operating lease obligations - current	$	2,384	$	2,347
Operating lease obligations - non-current	21,379		22,124
Total operating lease obligations	$	23,763	$	24,472
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	675	$	678
Lease obligations included in:
Accrued expenses and other liabilities	$	71	$	57
Other non-current liabilities	917		919
Total finance lease obligations	$	988	$	976

Schedule of Supplemental Income Statement and Other Information

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

	Three months ended May 31,				Nine months ended May 31,
Statement of earnings supplemental information:	2024		2023		2024		2023
Operating lease cost
Fixed	$	866	$	879	$	2,605	$	2,545
Variable 1	228		218		653		613
Finance lease cost
Amortization	$	13	$	15	$	45	$	36
Interest	12		14		38		38
Sublease income 2	$	29	$	29	$	84	$	87
Impairment of right-of-use assets	13		38		194		109
Gain on sale-leaseback transactions 2
U.S. Retail Pharmacy	$	10	$	263	$	268	$	647
International 3	—		30		—		178
Total gain on sale-leaseback 2	$	10	$	293	$	268	$	825

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

2Recorded in Selling, general and administrative expenses within the Consolidated Condensed Statements of Earnings.

3Includes gain on sale-leaseback related to the Germany wholesale business of $30 million and $178 million for the three and nine months ended May 31, 2023, of which $6 million and $47 million, respectively, related to the optimization of warehouse locations as part of acquisition integration activities.

Other supplemental information was as follows (in millions):

	Nine months ended May 31,
Other supplemental information:	2024		2023
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	2,779	$	2,668
Operating cash flows from finance leases	37		35
Financing cash flows from finance leases	52		38
Total	$	2,867	$	2,741
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	1,235	$	1,773
Finance leases	55		23
Total	$	1,290	$	1,796

Weighted average lease term and discount rate for real estate leases were as follows:

Weighted average lease terms and discount rates:	May 31, 2024		August 31, 2023
Weighted average remaining lease term in years
Operating leases	9.3		9.6
Finance leases	17.7		17.4
Weighted average discount rate
Operating leases	5.55	%	5.35	%
Finance leases	5.18	%	5.25	%

Schedule of Aggregate Future Lease Payments Under Operating Leases

The aggregate future lease payments for operating and finance leases as of May 31, 2024 were as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease 1,2
2024 (Remaining period)	$	32	$	915
2025	122		3,667
2026	119		3,594
2027	116		3,508
2028	95		3,374
2029	85		3,125
Later	882		12,608
Total undiscounted minimum lease payments	$	1,452	$	30,791
Less: Present value discount	464		7,029
Lease liability	$	988	$	23,763

1.Total undiscounted minimum lease payments include approximately $3.6 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised.

2.Total undiscounted minimum lease payments exclude sublease rental income of approximately $597 million due to the Company under non-cancelable sublease terms.

Schedule of Aggregate Future Lease Payments Under Finance Leases

The aggregate future lease payments for operating and finance leases as of May 31, 2024 were as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease 1,2
2024 (Remaining period)	$	32	$	915
2025	122		3,667
2026	119		3,594
2027	116		3,508
2028	95		3,374
2029	85		3,125
Later	882		12,608
Total undiscounted minimum lease payments	$	1,452	$	30,791
Less: Present value discount	464		7,029
Lease liability	$	988	$	23,763

1.Total undiscounted minimum lease payments include approximately $3.6 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised.

2.Total undiscounted minimum lease payments exclude sublease rental income of approximately $597 million due to the Company under non-cancelable sublease terms.