Income Taxes (Tables)

12 Months Ended

Aug. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Tax Expense

Income (loss) before income tax expense is summarized below (in millions):

	Fiscal Year Ended August 31,
	2023		2022		2021
Domestic	$	(315)	$	(116)	$	(271)
Foreign	1,577		1,347		1,215
Total	$	1,262	$	1,231	$	944

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is summarized below (in millions):

	Fiscal Year Ended August 31,
	2023		2022		2021
Current:
Domestic - federal	$	1	$	7	$	7
Domestic - state	2		2		3
Foreign	350		239		252
Total current	353		248		262
Deferred:
Domestic - federal	(2)		(25)		2
Domestic - state	4		—		—
Foreign	89		12		(18)
Total deferred	91		(13)		(16)
Total income tax expense	$	444	$	235	$	246

Schedule of Reconciliations of Income Tax Expense at U.S. Federal Statutory Income Tax Rate

Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is summarized below:

	Fiscal Year Ended August 31,
	2023		2022		2021
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	0.2		0.7		0.2
Impact of foreign tax rates(1)	(1.8)		(4.0)		(4.6)
Permanent differences	(0.5)		1.2		(0.4)
Income tax credits(1)	(0.5)		(0.5)		(0.4)
Valuation allowance(2)	1.1		(3.3)		1.3
Equity compensation	0.5		(0.5)		0.6
Impact of intercompany charges and dividends	2.4		3.6		4.4
Global Intangible Low-Taxed Income	0.8		1.1		3.0
Change in indefinite reinvestment assertion(3)	11.7		—		—
Other, net	0.3		(0.2)		0.9
Effective income tax rate	35.2	%	19.1	%	26.0	%

(1)The Company has been granted tax incentives for various subsidiaries in China, Malaysia, Singapore, Vietnam and Israel, which primarily expire at various dates through fiscal year 2031 and are subject to certain conditions with which

the Company expects to comply. These tax incentives resulted in a tax benefit of approximately $74 million ($0.56 per basic weighted average shares outstanding), $80 million ($0.57 per basic weighted average shares outstanding) and $51 million ($0.34 per basic weighted average shares outstanding) during the fiscal years ended August 31, 2023, 2022 and 2021, respectively.

(2)For the fiscal year ended August 31, 2022, the valuation allowance change was primarily due to an income tax benefit of $26 million for the reversal of a portion of the U.S. valuation allowance and decreased deferred tax assets with corresponding valuation allowances due to the liquidation of certain non-U.S. subsidiaries.

(3)As a result of certain operations being classified as held for sale, the Company made a change to its indefinite reinvestment assertions for the fiscal year ended August 31, 2023.

Schedule of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities are summarized below (in millions):

	August 31, 2023(1)		August 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$	196	$	176
Receivables	4		4
Inventories	16		16
Compensated absences	16		13
Accrued expenses	116		106
Property, plant and equipment	17		66
Domestic tax credits	22		11
Foreign jurisdiction tax credits	4		4
Equity compensation	8		10
Domestic interest carryforwards	10		4
Capital loss carryforwards	19		20
Revenue recognition	29		32
Operating and finance lease liabilities	39		72
Other	24		27
Total deferred tax assets before valuation allowances	520		561
Less valuation allowances	(303)		(281)
Net deferred tax assets	$	217	$	280
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries	$	201	$	57
Intangible assets	24		25
Operating lease assets	85		111
Other	16		10
Total deferred tax liabilities	$	326	$	203
Net deferred tax (liabilities) assets	$	(109)	$	77

(1)Excludes $96 million classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information.

Schedule of Tax Carryforwards

The amount and expiration dates of income tax net operating loss carryforwards, tax credit carryforwards, and tax capital loss carryforwards, which are available to reduce future taxes, if any, as of August 31, 2023 are as follows (in millions):

	Last Fiscal Year of Expiration	Amount
Income tax net operating loss carryforwards:(1)
Domestic - federal	2038 or indefinite	$	11
Domestic - state	2042 or indefinite	$	55
Foreign	2038 or indefinite	$	646
Tax credit carryforwards:(1)
Domestic - federal	2043	$	18
Domestic - state	2027 or indefinite	$	4
Foreign(2)	Indefinite	$	4
Tax capital loss carryforwards:
Domestic - federal	2028	$	75

(1)Net of unrecognized tax benefits.

(2)Calculated based on the deferral method and includes foreign investment tax credits.

Schedule of Operating Loss Carryforwards

The amount and expiration dates of income tax net operating loss carryforwards, tax credit carryforwards, and tax capital loss carryforwards, which are available to reduce future taxes, if any, as of August 31, 2023 are as follows (in millions):

	Last Fiscal Year of Expiration	Amount
Income tax net operating loss carryforwards:(1)
Domestic - federal	2038 or indefinite	$	11
Domestic - state	2042 or indefinite	$	55
Foreign	2038 or indefinite	$	646
Tax credit carryforwards:(1)
Domestic - federal	2043	$	18
Domestic - state	2027 or indefinite	$	4
Foreign(2)	Indefinite	$	4
Tax capital loss carryforwards:
Domestic - federal	2028	$	75

(1)Net of unrecognized tax benefits.

(2)Calculated based on the deferral method and includes foreign investment tax credits.

Schedule of Reconciliations of Unrecognized Tax Benefits

Reconciliation of the unrecognized tax benefits is summarized below (in millions):

	Fiscal Year Ended August 31,
	2023		2022		2021
Beginning balance	$	253	$	241	$	190
Additions for tax positions of prior years	1		22		15
Reductions for tax positions of prior years	(7)		(21)		(3)
Additions for tax positions related to current year(1)	23		36		36
Cash settlements	(3)		(3)		—
Reductions from lapses in statutes of limitations	(8)		(3)		(2)
Reductions from non-cash settlements with taxing authorities	(2)		(9)		—
Foreign exchange rate adjustment	—		(10)		5
Ending balance	$	257	$	253	$	241
Unrecognized tax benefits that would affect the effective tax rate (if recognized)	$	150	$	150	$	139

(1)The additions for the fiscal years ended August 31, 2023, 2022 and 2021 are primarily related to taxation of certain intercompany transactions.