Accumulated Other Comprehensive Income (Tables)

9 Months Ended

May 31, 2022

The following table sets forth the changes in AOCI, net of tax, by component for the nine months ended May 31, 2022 (in millions):


	Foreign Currency Translation Adjustment		Derivative Instruments		Actuarial Gain (Loss)		Prior Service (Cost) Credit		Total
Balance as of August 31, 2021	$	(20)	$	(36)	$	51	$	(20)	$	(25)
Other comprehensive (loss) income before reclassifications	(20)		31		(1)		—		10
Amounts reclassified from AOCI	—		6		(14)		3		(5)
Other comprehensive (loss) income(1)	(20)		37		(15)		3		5
Balance as of May 31, 2022	$	(40)	$	1	$	36	$	(17)	$	(20)

(1)Amounts are net of tax, which are immaterial.

Summary of Reclassification from AOCI

The following table sets forth the amounts reclassified from AOCI into the Condensed Consolidated Statements of Operations, and the associated financial statement line item, net of tax, for the periods indicated (in millions):


		Three months ended				Nine months ended
Comprehensive Income Components	Financial Statement Line Item	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Realized losses (gains) on derivative instruments:(1)
Foreign exchange contracts	Cost of revenue	$	9	$	(4)	$	4	$	(43)
Interest rate contracts	Interest expense	—		—		2		2

Actuarial gain	(2)	(4)		—		(14)		—
Prior service cost	(2)	1		—		3		—
Total amounts reclassified from AOCI(3)		$	6	$	(4)	$	(5)	$	(41)

(1)The Company expects to reclassify $20 million into earnings during the next twelve months, which will primarily be classified as a component of cost of revenue.

(2)Amounts are included in the computation of net periodic benefit cost (credit). Refer to Note 8 – “Postretirement and Other Employee Benefits” for additional information.

(3)Amounts are net of tax, which are immaterial for the three months and nine months ended May 31, 2022 and 2021.