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Leases

12 Months Ended

Aug. 31, 2026

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


	Financial Statement Line Item	August 31, 2026		August 31, 2025
Assets
Operating lease assets	Operating lease right-of-use assets	$	614	$	462
Finance lease assets(1)	Property, plant and equipment, net	325		391
Total lease assets		$	939	$	853
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	111	$	93
Finance lease liabilities	Accrued expenses	88		199
Non-current
Operating lease liabilities	Non-current operating lease liabilities	530		388
Finance lease liabilities	Other liabilities	231		166
Total lease liabilities		$	960	$	846

(1) Net of accumulated amortization of $140 million and $136 million as of August 31, 2026 and 2025, respectively.

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


	Fiscal Year Ended August 31,
	2026		2025
Operating lease cost	$	126	$	119
Finance lease cost
Amortization of leased assets	41		42
Interest on lease liabilities	11		11

Net lease cost(1)(2)	$	178	$	172

(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, 2026			August 31, 2025
	Weighted-average remaining lease term	Weighted-average discount rate		Weighted-average remaining lease term	Weighted-average discount rate
Operating leases	7.5 years	4.68	%	7.7 years	4.39	%
Finance leases	7.7 years	4.03	%	6.5 years	3.57	%

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


	Fiscal Year Ended August 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases(1)	$	109	$	104
Operating cash flows for finance leases(1)	$	11	$	11
Financing activities for finance leases(2)	$	253	$	142
Non-cash right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	257	$	208
Finance leases	$	208	$	136

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

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

The following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2026 (in millions):


Fiscal Year Ended August 31,	Operating Leases(1)(2)		Finance Leases(1)(2)(3)		Total
2027	$	138	$	99	$	237
2028	118		75		193
2029	110		41		151
2030	93		30		123
2031	74		22		96
Thereafter	252		110		362
Total lease payments	$	785	$	377	$	1,162
Less: Imputed interest	(144)		(58)		(202)
Present value of lease liabilities	$	641	$	319	$	960

(1)Excludes $149 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)Excludes $452 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.

(3)Includes a $96 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 $135 million.

Leases