Income taxes (Tables)

12 Months Ended

Aug. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

The components of (Loss) earnings before income tax provision (benefit) were (in millions):

	2024		2023		2022
U.S.	$	(15,599)	$	(7,553)	$	2,998
Non–U.S.	1,380		2,134		987
Total	$	(14,219)	$	(5,419)	$	3,985

Provisions for income taxes

The Income tax provision (benefit) consists of the following (in millions):

	2024		2023		2022
Current provision
Federal	$	91	$	242	$	39
State	52		(13)		37
Non–U.S.	185		283		260
	$	328	$	512	$	336
Deferred provision
Federal	$	910	$	(1,886)	$	(78)
State	259		(364)		(20)
Non–U.S.	(251)		(120)		(268)
	918		(2,370)		(366)
Income tax provision (benefit)	$	1,246	$	(1,858)	$	(30)

Difference between the statutory federal income tax rate and the effective tax rate

The difference between the statutory federal income tax rate and the effective tax rate is as follows:

	2024		2023		2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	(1.8)		5.8		0.4
Foreign income taxed at non-U.S. rates	(0.3)		(3.0)		(3.0)
Non-taxable income	0.3		2.5		(2.7)
Non-deductible expenses	(0.9)		(4.9)		3.0
Change in valuation allowance 1	(13.2)		6.0		(9.0)
Tax benefits from restructuring	—		1.1		—
Uncertain tax positions	(0.4)		(0.5)		1.3
Non-controlling interest	(10.1)		(2.9)		1.2
Goodwill impairment	(7.2)		—		—
Tax credits	0.5		2.8		(1.0)
Conversion of equity investment	—		—		(11.8)
Change in tax basis in foreign assets2	2.2		—		—
Change in outside basis difference	1.4		1.9		—
Change in measurement of prior year tax positions	—		3.5		—
Other	(0.3)		1.0		(0.2)
Effective income tax rate 3	(8.8)	%	34.3	%	(0.8)	%

1Net of changes in related tax attributes and tax benefits from capital losses generated and utilized.

2Represents the initial recognition of tax basis in intangible assets in foreign jurisdiction and the related valuation allowance.

3Effective tax rate for fiscal 2024 represents a tax expense on a pre-tax loss.

Deferred tax assets and liabilities included in the consolidated balance sheet

The deferred tax assets and liabilities included in the Consolidated Balance Sheets consist of the following (in millions):

	August 31, 2024		August 31, 2023
Deferred tax assets:
Compensation and benefits	$	100	$	98
Insurance	125		131
Accrued rent & lease obligations	4,969		5,265
Legal liability	1,477		1,551
Allowance for doubtful accounts	36		23
Tax attributes	7,894		7,784
Stock compensation	62		74
Derivatives	225		—
Deferred income	5		8
Equity method investment	29		76
Intangible assets	499		—
Post retirement benefit	91		—
Other	86		143
Total deferred tax assets	$	15,598	$	15,153
Less: valuation allowance	9,642		7,360
Total deferred tax assets, net	$	5,956	$	7,793
Deferred tax liabilities:
Accelerated depreciation	$	341	$	254
Inventory	371		403
Intangible assets	1,008		1,024
Lease right-of-use asset	4,392		4,690
Outside basis difference	340		1,045
Post retirement benefit	196		—
Other	82		180
Total deferred tax liabilities	$	6,730	$	7,596
Net deferred tax (liabilities) assets	$	(774)	$	197

Schedule of Unrecognized Tax Benefits Roll Forward

The following table provides a reconciliation of the total amounts of unrecognized tax benefits (in millions):

	2024		2023		2022
Balance at beginning of year	$	1,106	$	1,110	$	1,098
Gross increases related to tax positions in a prior period	91		12		63
Gross decreases related to tax positions in a prior period	(443)		(19)		(51)
Gross increases related to tax positions in the current period	273		12		21
Settlements with taxing authorities	(12)		(7)		(19)
Lapse of statute of limitations	(3)		(2)		(2)
Balance at end of year	$	1,012	$	1,106	$	1,110