Inventories

3 Months Ended

Nov. 30, 2025

Inventories consist of the following (in millions):


	November 30, 2025		August 31, 2025
Raw materials	$	3,879	$	3,905
Work in process	274		335
Finished goods	599		508
Reserve for excess and obsolete inventory	(71)		(67)
Inventories, net	$	4,681	$	4,681

The Company is responsible for procuring certain components from suppliers for the manufacturing of finished goods at the direction of certain customers. If the Company does not obtain control of these components before they are transferred to the customer, the Company accounts for revenue and cost of revenue associated with such components on a net basis. Revenue and cost of revenue associated with components procured directly from customers is accounted for on a net basis if the components do not constitute a distinct good or service from the customer. As of November 30, 2025, and August 31, 2025, the Company had $1.6 billion and $1.1 billion, respectively, of components included in prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets, related to purchases made to procure components for customers whereby the associated revenue is expected to be accounted for on a net basis once transferred to the customer.