Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Feb. 28, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Net Gains from Forward Contracts Recorded in Consolidated Statements of Operations

The following table presents the gains from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in millions):

Derivatives Not Designated as Hedging Instruments Under ASC 815	Location of Gain on Derivatives Recognized in Net Income	Amount of Gain Recognized in Net Income on Derivatives
		Three months ended				Six months ended
		February 28, 2022		February 28, 2021		February 28, 2022		February 28, 2021
Forward foreign exchange contracts(1)	Cost of revenue	$	22	$	36	$	60	$	120

(1)For the three months and six months ended February 28, 2022, the Company recognized $9 million and $37 million, respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. For the three months and six months ended February 28, 2021, the Company recognized $26

million and $99 million, respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts.

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table presents the interest rate swaps outstanding as of February 28, 2022, which have been designated as hedging instruments and are accounted for as cash flow hedges:

Interest Rate Swap Summary	Hedged Interest Rate Payments	Aggregate Notional Amount (in millions)		Effective Date	Expiration Date (2)
Forward Interest Rate Swap (1)
Anticipated Debt Issuance	Fixed	$	250	November 2, 2020	July 31, 2024	(3)
Anticipated Debt Issuance	Fixed	$	150	May 24, 2021	July 31, 2024	(3)

(1)During March 2022, the Company entered into new cash flow hedges. These cash flow hedges have an aggregate notional amount totaling $170 million and are related to an anticipated debt issuance.

(2)The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap.

(3)If the anticipated debt issuance occurs before July 31, 2024, the contracts will be terminated simultaneously with the debt issuance.