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Fair value measurements (Tables)
 9 Months Ended
May 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):
 May 31, 2025Level 1Level 2Level 3
Assets:
    
Money market funds 1
$64 $64 $— $— 
Foreign currency forwards 3
2 — 2 — 
Investments in equity securities 4
28 28 — — 
Investments in debt securities 5
110 — 110 — 
Total return swaps 7
6 — 6 — 
Liabilities:
    
Variable prepaid forward 6
$2,535 $— $— $2,535 
Foreign currency forwards 3
39 — 39 — 
Cross currency interest rate swaps 2
7 — 7 — 
 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 — — 
Investments in debt securities 5
98 — 98 — 
Total return swaps 7
11 — 11 — 
Liabilities:
Variable prepaid forward 6
$3,919 $— $— $3,919 
Foreign currency forwards 3
67 — 67 — 
Cross currency interest rate swaps 2
5 — 5 — 

1Money market funds are valued at the closing price reported by the fund sponsor and classified as Marketable securities within the Consolidated Condensed Balance Sheets.
2The 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 7. Financial instruments for further information.
3The 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 7. Financial instruments, for further information.
4Fair values of quoted investments are based on current bid prices as of May 31, 2025 and August 31, 2024.
5Includes investments in Treasury debt securities.
6The 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 between 34.2% and 78.4% for the lower strike and between 25.0% and 56.7% for the upper strike as of May 31, 2025, and between 24.5% and 34.5% for the lower strike and between 19.6% and 22.7% for the upper strike as of August 31, 2024.
7The fair value of total return swaps is calculated based on the change in the price of the underlying equity index, less a SOFR-based financing cost. See Note 7. Financial instruments for further information.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
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, is as follows (in millions):
Three months ended May 31,Nine months ended May 31,
2025202420252024
Opening balance$(2,610)$(3,861)$(3,919)$(2,548)
VPF derivative additions— — — (424)
Unrealized gains (losses) recorded in Other income (expense), net
(389)155 (567)(733)
Realized gains recorded in Other income (expense), net
378 — 1,333 — 
Settlements86 — 618 — 
Ending balance$(2,535)$(3,705)$(2,535)$(3,705)