Equity method and other investments

9 Months Ended

May 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Equity method investments were as follows (in millions, except percentages):


	May 31, 2025			August 31, 2024
	Carrying value		Ownership percentage	Carrying value		Ownership percentage
Cencora	$	848	5%	$	1,563	10%
Others	411		8% - 50%	705		8% - 50%
Total	$	1,259		$	2,269

Cencora investment

During the three months ended May 31, 2025, the Company settled certain variable prepaid forward (“VPF”) derivative contracts by delivering an aggregate of 2.2 million shares of Cencora, Inc, (“Cencora”) common stock to financial institutions. As part of the settlement, the Company received cash proceeds of $103 million. See Note 7. Financial instruments for further information. During the three months ended May 31, 2024, the Company sold shares of Cencora common stock for total consideration of approximately $400 million, resulting in pre-tax gains inclusive of equity method basis difference adjustments of $88 million in Other income (expense), net in the Consolidated Condensed Statements of Earnings.

During the nine months ended May 31, 2025, the Company sold shares of Cencora common stock and settled VPF derivative contracts for total net consideration of approximately $398 million. This included the early settlement of certain VPF derivative contracts in the second quarter, originally scheduled to mature in the third and fourth quarters of fiscal 2026, through the delivery of 6.1 million shares of Cencora common stock and a cash payment of $20 million to fulfill the Company’s obligations under the contracts, retaining 1.3 million unencumbered shares. See Note 7. Financial instruments for further information. Concurrent with the early settlement of VPF derivative contracts in the second quarter, the Company executed a sale of 1.3 million shares of Cencora common stock for total consideration of approximately $315 million, including an approximate $50 million share repurchase by Cencora, resulting in pre-tax gains of $204 million in Other income (expense), net in the Consolidated Condensed Statements of Earnings. During the nine months ended May 31, 2024, the Company sold shares of Cencora common stock for total consideration of approximately $1.6 billion resulting in pre-tax gains of $847 million in Other income (expense), net in the Consolidated Condensed Statements of Earnings.

As a result of the VPF settlements and share sale, the Company’s ownership in Cencora decreased from approximately 10% as of August 31, 2024, to 5% as of May 31, 2025. As of May 31, 2025, the Company continued to account for its remaining investment in Cencora under the equity method of accounting due to its ability to exercise significant influence over Cencora through board representation.

From June 3, 2025, to June 25, 2025, the Company settled certain VPF derivative contracts through the delivery of an aggregate of 2.4 million shares of Cencora common stock to financial institutions. As part of the settlement, the Company received cash proceeds of $109 million and will recognize a pre-tax gain within Other income (expense), net, the amount of which has not yet been determined. On June 9, 2025, as a result of the VPF settlements, the Company’s ownership in Cencora common stock fell below 5% and the Company was no longer entitled to designate a director to the Cencora Board of Directors. As a result, the Company reclassified its investment from an equity method investment to an investment in equity securities at fair value, recognizing a pre-tax gain of $1.9 billion in Other income (expense), net. Transactions with Cencora will no longer be reported as related party transactions after June 9, 2025.

As of May 31, 2025 and August 31, 2024, the Company has pledged 10.4 million and 20.0 million shares, respectively, of Cencora common stock as collateral under the remaining VPF derivative contracts. See Note 7. Financial instruments for further information.

Other investments

During the three months ended May 31, 2025, the Company sold its remaining shares of BrightSpring Health Services (“BrightSpring”) common stock for total consideration of approximately $227 million, and recognized a pre-tax gain of $30 million resulting from final fair value adjustments recorded in Other income (expense), net within the Consolidated Condensed Statements of Earnings. During the nine months ended May 31, 2025, the Company sold shares of BrightSpring common stock for total consideration of approximately $610 million and recognized pre-tax gains of $322 million, inclusive of gains from sales of shares in fiscal 2025, the reclassification of the investment to equity securities measured at fair value, and subsequent fair value adjustments. These amounts were recorded in Other income (expense), net within the Consolidated Condensed Statements of Earnings. As of May 31, 2025, the Company no longer has an investment in BrightSpring.