Leases

6 Months Ended

Feb. 28, 2025

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				Six months ended
Statement of earnings supplemental information1:	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Sublease income	$	30	$	27	$	59	$	55
Impairment of right-of-use assets	19		132		156		181
Gain on sale-leaseback transactions	—		98		—		258

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

	Six months ended
Statement of cash flow supplemental information:	February 28, 2025		February 29, 2024
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	1,798	$	1,849
Operating cash flows from finance leases	25		25
Financing cash flows from finance leases	41		33
Total	$	1,864	$	1,906
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	170	$	993
Finance leases	18		57
Total	$	189	$	1,049

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				Six months ended
Statement of earnings supplemental information1:	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Sublease income	$	30	$	27	$	59	$	55
Impairment of right-of-use assets	19		132		156		181
Gain on sale-leaseback transactions	—		98		—		258

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

	Six months ended
Statement of cash flow supplemental information:	February 28, 2025		February 29, 2024
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	1,798	$	1,849
Operating cash flows from finance leases	25		25
Financing cash flows from finance leases	41		33
Total	$	1,864	$	1,906
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	170	$	993
Finance leases	18		57
Total	$	189	$	1,049