Notes Payable and Long-Term Debt

12 Months Ended

Aug. 31, 2021

Debt Disclosure [Abstract]

Notes Payable and Long-Term Debt

Notes Payable and Long-Term Debt

Notes payable and long-term debt outstanding as of August 31, 2021 and 2020 are summarized below (in millions):

	Maturity Date	August 31, 2021		August 31, 2020
4.700% Senior Notes(1)(2)	Sep 15, 2022	$	499	$	499
4.900% Senior Notes(1)	Jul 14, 2023	300		299
3.950% Senior Notes(1)(2)	Jan 12, 2028	496		495
3.600% Senior Notes(1)(2)	Jan 15, 2030	495		495
3.000% Senior Notes(1)(2)	Jan 15, 2031	591		590
1.700% Senior Notes(1)(2)(3)	Apr 15, 2026	496		—
Borrowings under credit facilities(4)(5)	Jan 22, 2024 and Jan 22, 2026	—		—
Borrowings under loans(3)	Jul 31, 2026	1		350
Total notes payable and long-term debt		2,878		2,728
Less current installments of notes payable and long-term debt		—		50
Notes payable and long-term debt, less current installments		$	2,878	$	2,678

(1)The notes are carried at the principal amount of each note, less any unamortized discount and unamortized debt issuance costs.

(2)The Senior Notes are the Company’s senior unsecured obligations and rank equally with all other existing and future senior unsecured debt obligations.

(3)On April 14, 2021, the Company issued $500 million of publicly registered 1.700% Senior Notes due 2026 (the “1.700% Senior Notes”). The Company used the net proceeds for general corporate purposes, including repayment of the prior $300 million Term Loan Facility.

(4)On April 28, 2021, the Company entered into an amendment (the “Amendment”) to its senior unsecured credit agreement dated as of January 22, 2020 (the “Credit Facility”). The Amendment, among other things, (i) increased the commitments available under the three-year revolving credit facility (the “Three-Year Revolving Credit Facility”) from $700 million to $1.2 billion, (ii) instituted certain sustainability-linked adjustments to the interest rates applicable to borrowings under the Credit Facility and (iii) extended the termination date of the Three-Year Revolving Credit Facility to January 22, 2024, and of the Five-Year Revolving Credit Facility of $2.0 billion to January 22, 2026.

(5)As of August 31, 2021, the Company has $3.8 billion in available unused borrowing capacity under its revolving credit facilities. The Credit Facility acts as the back-up facility for commercial paper outstanding, if any. The Company has a borrowing capacity of up to $1.8 billion under its commercial paper program.

In the ordinary course of business, the Company has letters of credit and surety bonds with banks and insurance companies outstanding of $75 million as of August 31, 2021. Unused letters of credit were $76 million as of August 31, 2021. Letters of credit and surety bonds are generally available for draw down in the event the Company does not perform.

Debt Maturities

Debt maturities as of August 31, 2021 are as follows (in millions):

Fiscal Year Ended August 31,
2022	$	—
2023	799
2024	—
2025	—
2026	496
Thereafter	1,583
Total	$	2,878

Debt Covenants

Borrowings under the Company’s debt agreements are subject to various covenants that limit the Company’s ability to: incur additional indebtedness, sell assets, effect mergers and certain transactions, and effect certain transactions with subsidiaries and affiliates. In addition, the revolving credit facilities and the 4.900% Senior Notes contain debt leverage and

interest coverage covenants. The Company is also subject to certain covenants requiring the Company to offer to repurchase the 4.700%, 4.900%, 3.950%, 3.600%, 3.000% or 1.700% Senior Notes upon a change of control. As of August 31, 2021 and 2020, the Company was in compliance with its debt covenants.

Fair Value

Refer to Note 17 – “Fair Value Measurements” for the estimated fair values of the Company’s notes payable and long-term debt.