Leases

6 Months Ended

Feb. 29, 2024

Leases [Abstract]

[Finance] Leases

Leases

The components of lease cost are presented below:

	Quarter ended				Six months ended
	February 29, 2024		March 2, 2023		February 29, 2024		March 2, 2023
Finance lease cost
Amortization of right-of-use asset	$	37	$	25	$	69	$	49
Interest on lease liability	24		6		30		12
Operating lease cost(1)	35		31		68		67
	$	96	$	62	$	167	$	128

(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented.

Supplemental cash flow information related to leases was as follows:

Six months ended	February 29, 2024		March 2, 2023
Cash flows used for operating activities
Finance leases	$	25	$	11
Operating leases	66		60
Cash flows used for financing activities – Finance leases	60		53
Noncash acquisitions of right-of-use assets
Finance leases	483		225
Operating leases	12		35

Supplemental balance sheet information related to leases was as follows:

As of	February 29, 2024			August 31, 2023
Finance lease right-of-use assets (included in property, plant, and equipment)	$	1,725		$	1,311
Current operating lease liabilities (included in accounts payable and accrued expenses)	65			66
Weighted-average remaining lease term (in years)
Finance leases	11			9
Operating leases	11			11
Weighted-average discount rate
Finance leases	4.48		%	3.86		%
Operating leases	3.27		%	3.21		%

As of February 29, 2024, maturities of lease liabilities by fiscal year were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2024	$	152	$	31
2025	299		83
2026	285		80
2027	277		77
2028	267		74
2029 and thereafter	721		452
Less imputed interest	(297)		(139)
	$	1,704	$	658

The table above excludes obligations for leases that have been executed but have not yet commenced. As of February 29, 2024, excluded obligations consisted of $670 million of finance lease obligations over a weighted-average period of 14 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.

[Operating] Leases

Leases

The components of lease cost are presented below:

	Quarter ended				Six months ended
	February 29, 2024		March 2, 2023		February 29, 2024		March 2, 2023
Finance lease cost
Amortization of right-of-use asset	$	37	$	25	$	69	$	49
Interest on lease liability	24		6		30		12
Operating lease cost(1)	35		31		68		67
	$	96	$	62	$	167	$	128

(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented.

Supplemental cash flow information related to leases was as follows:

Six months ended	February 29, 2024		March 2, 2023
Cash flows used for operating activities
Finance leases	$	25	$	11
Operating leases	66		60
Cash flows used for financing activities – Finance leases	60		53
Noncash acquisitions of right-of-use assets
Finance leases	483		225
Operating leases	12		35

Supplemental balance sheet information related to leases was as follows:

As of	February 29, 2024			August 31, 2023
Finance lease right-of-use assets (included in property, plant, and equipment)	$	1,725		$	1,311
Current operating lease liabilities (included in accounts payable and accrued expenses)	65			66
Weighted-average remaining lease term (in years)
Finance leases	11			9
Operating leases	11			11
Weighted-average discount rate
Finance leases	4.48		%	3.86		%
Operating leases	3.27		%	3.21		%

As of February 29, 2024, maturities of lease liabilities by fiscal year were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2024	$	152	$	31
2025	299		83
2026	285		80
2027	277		77
2028	267		74
2029 and thereafter	721		452
Less imputed interest	(297)		(139)
	$	1,704	$	658

The table above excludes obligations for leases that have been executed but have not yet commenced. As of February 29, 2024, excluded obligations consisted of $670 million of finance lease obligations over a weighted-average period of 14 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.