XML 55 R38.htm IDEA: XBRL DOCUMENT v3.24.3
Leases (Tables)
 12 Months Ended
Aug. 31, 2024
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 ItemAugust 31, 2024
August 31, 2023(1)
Assets
Operating lease assetsOperating lease right-of-use assets$360 $367 
Finance lease assets(2)
Property, plant and equipment, net378 310 
Total lease assets$738 $677 
Liabilities
Current
Operating lease liabilitiesCurrent operating lease liabilities$93 $104 
Finance lease liabilitiesAccrued expenses119 74 
Non-current
Operating lease liabilitiesNon-current operating lease liabilities284 269 
Finance lease liabilitiesOther liabilities235 212 
Total lease liabilities$731 $659 
(1)Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information.
(2)Net of accumulated amortization of $162 million and $199 million as of August 31, 2024 and 2023, 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,
 20242023
Operating lease cost$118 $147 
Finance lease cost
Amortization of leased assets50 89 
Interest on lease liabilities10 9 
Net lease cost(1)(2)
$178 $245 
(1)Lease costs are primarily recognized in cost of revenue.
(2)Excludes immaterial amounts of short term leases, variable lease costs and sublease income.
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, 2024August 31, 2023
Weighted-average remaining lease termWeighted-average discount rateWeighted-average remaining lease termWeighted-average discount rate
Operating leases5.7 years3.80 %5.2 years3.55 %
Finance leases5.2 years4.23 %2.1 years3.84 %
The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):
Fiscal Year Ended August 31,
 20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases(1)
$116 $135 
Operating cash flows for finance leases(1)
$10 $9 
Financing activities for finance leases(2)
$111 $157 
Non-cash right-of-use assets obtained in exchange for lease liabilities:
Operating leases$109 $110 
Finance leases$163 $131 
(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 following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2024 (in millions):
Fiscal Year Ended August 31,
Operating Leases(1)
Finance Leases(1)(2)(3)
Total
2025
$106 $129 $235 
2026
83 124 207 
2027
61 23 84 
2028
48 18 66 
2029
41 13 54 
Thereafter86 91 177 
Total lease payments$425 $398 $823 
Less: Imputed interest(48)(44)(92)
Present value of lease liabilities$377 $354 $731 
(1)Excludes $25 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.
(2)Includes a $94 million lease liability related to a lease with a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. The Company’s maximum exposure to loss related to the VIE is $124 million.
(3)Excludes $274 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 following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2024 (in millions):
Fiscal Year Ended August 31,
Operating Leases(1)
Finance Leases(1)(2)(3)
Total
2025
$106 $129 $235 
2026
83 124 207 
2027
61 23 84 
2028
48 18 66 
2029
41 13 54 
Thereafter86 91 177 
Total lease payments$425 $398 $823 
Less: Imputed interest(48)(44)(92)
Present value of lease liabilities$377 $354 $731 
(1)Excludes $25 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.
(2)Includes a $94 million lease liability related to a lease with a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. The Company’s maximum exposure to loss related to the VIE is $124 million.
(3)Excludes $274 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.