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Fair value measurements
 12 Months Ended
Aug. 31, 2024
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):
 August 31, 2024Level 1Level 2Level 3
Assets:    
Money market funds 1
$1,790 $1,790 $— $— 
Cross currency interest rate swaps 2
6 — 6 — 
Foreign currency forwards 3
3 — 3 — 
Investments in equity securities 4
19 19 — — 
Investment in debt securities 5
98 — 98 — 
Total return swaps11 — 11 — 
Liabilities:
Variable prepaid forward 6
$3,919 $— $— $3,919 
Foreign currency forwards 3
67 — 67 — 
Cross currency interest rate swaps 2
5 — 5 — 

 August 31, 2023Level 1Level 2Level 3
Assets:    
Money market funds 1
$11 $11 $— $— 
Cross currency interest rate swaps 2
28 — 28 — 
Foreign currency forwards 3
6 — 6 — 
Investments in equity securities 4
17 17 — — 
Investments in debt securities 5
15 — 15 — 
Total return swaps1 — 1 — 
Liabilities:
    
Variable prepaid forward 6
$2,548 $— $— $2,548 
Foreign currency forwards 3
5 — 5 — 
Total return swaps1 — 1 — 
Cross currency interest rate swaps 2
2 — 2 — 

1.Money market funds are valued at the closing price reported by the fund sponsor and classified as Marketable securities on the Consolidated Balance Sheets.
2.The fair value of cross currency interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 8. Financial instruments, for further information.
3.The 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 8. Financial instruments, for further information.
4.Fair values of quoted investments are based on current bid prices as of August 31, 2024 and August 31, 2023.
5.Includes investments in Treasury debt securities.
6.The fair value of the derivative was derived from a Black-Scholes valuation. The inputs used in valuing the derivative included observable inputs such as the floor and cap prices of the VPF, dividend yield of Cencora shares, risk free interest rate, and contractual term of the instrument, as well as unobservable inputs such as implied volatility of Cencora shares. The implied volatility ranged from 24.5% - 34.5% for the lower strike and 19.6% - 22.7% for the upper strike as of August 31, 2024, and 23.2% - 24.7% for the lower strike and 18.1% - 19.1% for the upper strike as of August 31, 2023. See Note 8. Financial instruments, for further information.

There were no transfers between Levels in fiscal 2024 or 2023.

The roll forward of the fair value of the VPF derivatives associated with the forward sale of shares of Cencora common stock, classified as Level 3, for fiscal 2024 and 2023 is as follows (in millions):

20242023
Opening balance$(2,548)$— 
VPF derivative additions(424)(2,568)
Unrealized (losses) gains recorded in Other income, net(946)19 
Ending balance$(3,919)$(2,548)

The carrying value of the Company’s credit facilities approximated their respective fair values due to their short-term nature.

The Company reports its debt instruments under the guidance of ASC Topic 825, Financial Instruments, which requires disclosure of the fair value of the Company’s debt in the footnotes to the Consolidated Financial Statements. As of August 31, 2024, the carrying amounts and estimated fair values of long term notes outstanding including the current portion were $7.2 billion and $6.4 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 August 31, 2024 rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of August 31, 2024. The carrying value 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.