Leases

3 Months Ended

Nov. 30, 2024

Leases [Abstract]

Leases

Leases

The Company leases certain retail stores, clinics, warehouses, distribution centers, office space, land, and equipment. Initial terms for leased premises in the U.S. are typically 10 to 25 years, followed by additional terms containing renewal options at five-year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options. Lease commencement is the date the Company has the right to control the property. The Company recognizes operating lease rent expense on a straight line basis over the lease term. In addition to minimum fixed rentals, some leases provide for contingent rentals based on sales volume.

Selected supplemental information was as follows (in millions):

	Three months ended November 30,
Statement of earnings supplemental information1:	2024		2023
Sublease income	$	28	$	28
Impairment of right-of-use assets	136		49
Gain on sale-leaseback transactions	—		160

1Recorded in Selling, general and administrative expenses within the Consolidated Condensed Statements of Earnings.

	Three months ended November 30,
Statement of cash flow supplemental information:	2024		2023
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	893	$	924
Operating cash flows from finance leases	13		13
Financing cash flows from finance leases	21		14
Total	$	927	$	951
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	75	$	679
Finance leases	12		5
Total	$	87	$	685

Leases

Leases

The Company leases certain retail stores, clinics, warehouses, distribution centers, office space, land, and equipment. Initial terms for leased premises in the U.S. are typically 10 to 25 years, followed by additional terms containing renewal options at five-year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options. Lease commencement is the date the Company has the right to control the property. The Company recognizes operating lease rent expense on a straight line basis over the lease term. In addition to minimum fixed rentals, some leases provide for contingent rentals based on sales volume.

Selected supplemental information was as follows (in millions):

	Three months ended November 30,
Statement of earnings supplemental information1:	2024		2023
Sublease income	$	28	$	28
Impairment of right-of-use assets	136		49
Gain on sale-leaseback transactions	—		160

1Recorded in Selling, general and administrative expenses within the Consolidated Condensed Statements of Earnings.

	Three months ended November 30,
Statement of cash flow supplemental information:	2024		2023
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	893	$	924
Operating cash flows from finance leases	13		13
Financing cash flows from finance leases	21		14
Total	$	927	$	951
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	75	$	679
Finance leases	12		5
Total	$	87	$	685