Leases (Tables)

12 Months Ended

Aug. 31, 2023

Leases [Abstract]

Schedule of Lease Assets and Lease Liabilities included on Consolidated Balance Sheets

The following table sets forth the amount of lease assets and lease liabilities included on the Company's Consolidated Balance Sheets, as of the periods indicated (in millions):

	Financial Statement Line Item	August 31, 2023(1)		August 31, 2022
Assets
Operating lease assets(2)	Operating lease right-of-use assets	$	367	$	500
Finance lease assets(3)	Property, plant and equipment, net	310		368
Total lease assets		$	677	$	868
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	104	$	119
Finance lease liabilities	Accrued expenses	74		120
Non-current
Operating lease liabilities	Non-current operating lease liabilities	269		417
Finance lease liabilities	Other liabilities	212		198
Total lease liabilities		$	659	$	854

(1)Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information.

(2)Net of accumulated amortization of $309 million and $249 million as of August 31, 2023 and 2022, respectively.

(3)Net of accumulated amortization of $199 million and $110 million as of August 31, 2023 and 2022, respectively.

Schedule of Expenses related to Leases included on Consolidated Statements of Operations, Lease Term and Discount Rate and Other Supplemental Information related to Lease Portfolio

The following table is a summary of expenses related to leases included on the Company's Consolidated Statements of Operations, for the periods indicated (in millions):

	Fiscal Year Ended August 31,
	2023		2022
Operating lease cost	$	147	$	143
Finance lease cost
Amortization of leased assets	89		70
Interest on lease liabilities	9		6
Other	15		22
Net lease cost(1)	$	260	$	241

(1)Lease costs are primarily recognized in cost of revenue.

The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases, as of the periods indicated:

	August 31, 2023			August 31, 2022
	Weighted-average remaining lease term	Weighted-average discount rate		Weighted-average remaining lease term	Weighted-average discount rate
Operating leases	5.2 years	3.55	%	5.3 years	3.19	%
Finance leases	2.1 years	3.84	%	2.6 years	2.84	%

The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):

	Fiscal Year Ended August 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases(1)	$	135	$	123
Operating cash flows for finance leases(1)	$	9	$	6
Financing activities for finance leases(2)	$	157	$	120
Non-cash right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	110	$	229
Finance leases	$	131	$	127

(1)Included in accounts payable, accrued expenses and other liabilities in Operating Activities of the Company's Consolidated Statements of Cash Flows.

(2)Included in payments toward debt agreements in Financing Activities of the Company's Consolidated Statements of Cash Flows.

Schedule of Future Minimum Lease Payments Under Operating Leases

The future minimum lease payments under operating and finance leases as of August 31, 2023 were as follows (in millions):

Fiscal Year Ended August 31,	Operating Leases(1)		Finance Leases(1)(2)		Total
2024	$	138	$	93	$	231
2025	101		102		203
2026	77		101		178
2027	58		6		64
2028	42		2		44
Thereafter	116		10		126
Total minimum lease payments	$	532	$	314	$	846
Less: Interest	(56)		(17)		(73)
Present value of lease liabilities	$	476	$	297	$	773

(1)Excludes $214 million of payments related to leases signed but not yet commenced. Of these excluded payments, $163 million relates to a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. This is

also the Company’s maximum exposure to loss related to the VIE. The Company expects the lease related to the VIE to commence in fiscal year 2024. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.

(2)Excludes $194 million of residual value guarantees that could potentially come due in future periods. The Company does not believe it is probable that any amounts will be owed under these guarantees. Therefore, no amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities.

Schedule of Future Minimum Lease Payments Under Finance Leases

The future minimum lease payments under operating and finance leases as of August 31, 2023 were as follows (in millions):

Fiscal Year Ended August 31,	Operating Leases(1)		Finance Leases(1)(2)		Total
2024	$	138	$	93	$	231
2025	101		102		203
2026	77		101		178
2027	58		6		64
2028	42		2		44
Thereafter	116		10		126
Total minimum lease payments	$	532	$	314	$	846
Less: Interest	(56)		(17)		(73)
Present value of lease liabilities	$	476	$	297	$	773

(1)Excludes $214 million of payments related to leases signed but not yet commenced. Of these excluded payments, $163 million relates to a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. This is

also the Company’s maximum exposure to loss related to the VIE. The Company expects the lease related to the VIE to commence in fiscal year 2024. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.

(2)Excludes $194 million of residual value guarantees that could potentially come due in future periods. The Company does not believe it is probable that any amounts will be owed under these guarantees. Therefore, no amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities.