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Postretirement and Other Employee Benefits (Tables) | 12 Months Ended
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Aug. 31, 2021
Retirement Benefits [Abstract] |
Schedule of Reconciliation of Change in Benefit Obligations for Plans | The projected benefit obligations (“PBO”) and plan assets, changes to the PBO and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in millions):
| Fiscal Year Ended August 31,
| 2021 |  | 2020
Change in PBO |  |  |
Beginning PBO | $ | 559 |  |  | $ | 175 |
Service cost | 25 |  |  | 25 |
Interest cost | 5 |  |  | 3 |
Actuarial (gain) loss | 2 |  |  | (81) |
Settlements paid from plan assets(1) | (44) |  |  | (26) |
Total benefits paid | (17) |  |  | (6) |
Plan participants’ contributions | 25 |  |  | 14 |
Plan amendments | 24 |  |  | — |
Acquisitions | 8 |  |  | 404 |
Effect of conversion to U.S. dollars | — |  |  | 51 |
Ending PBO | $ | 587 |  |  | $ | 559 |
Change in plan assets |  |  |
Beginning fair value of plan assets | 538 |  |  | 158 |
Actual return on plan assets | 55 |  |  | 7 |
Acquisitions | — |  |  | 331 |
Settlements paid from plan assets(1) | (44) |  |  | (26) |
Employer contributions | 17 |  |  | 10 |
Benefits paid from plan assets | (15) |  |  | (6) |
Plan participants’ contributions | 25 |  |  | 14 |
Effect of conversion to U.S. dollars | — |  |  | 50 |
Ending fair value of plan assets | $ | 576 |  |  | $ | 538 |
Unfunded status | $ | (11) |  |  | $ | (21) |
Amounts recognized in the Consolidated Balance Sheets |  |  |
Accrued benefit liability, current | $ | 1 |  |  | $ | 1 |
Accrued benefit liability, noncurrent | $ | 10 |  |  | $ | 20 |
Accumulated other comprehensive loss(2) |  |  |
Actuarial (gain) loss, before tax | $ | (69) |  |  | $ | (49) |
Prior service cost, before tax | $ | 23 |  |  | $ | 1 |
(1)The settlements recognized during fiscal years 2021 and 2020 relate primarily to the Switzerland plan. (2)The Company anticipates amortizing $19 million and $4 million, before tax, of net actuarial gain and prior service costs balances, respectively, to net periodic cost in fiscal year 2022.
Schedule of Reconciliation of Changes in Pension Plan Assets | The projected benefit obligations (“PBO”) and plan assets, changes to the PBO and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in millions):
| Fiscal Year Ended August 31,
| 2021 |  | 2020
Change in PBO |  |  |
Beginning PBO | $ | 559 |  |  | $ | 175 |
Service cost | 25 |  |  | 25 |
Interest cost | 5 |  |  | 3 |
Actuarial (gain) loss | 2 |  |  | (81) |
Settlements paid from plan assets(1) | (44) |  |  | (26) |
Total benefits paid | (17) |  |  | (6) |
Plan participants’ contributions | 25 |  |  | 14 |
Plan amendments | 24 |  |  | — |
Acquisitions | 8 |  |  | 404 |
Effect of conversion to U.S. dollars | — |  |  | 51 |
Ending PBO | $ | 587 |  |  | $ | 559 |
Change in plan assets |  |  |
Beginning fair value of plan assets | 538 |  |  | 158 |
Actual return on plan assets | 55 |  |  | 7 |
Acquisitions | — |  |  | 331 |
Settlements paid from plan assets(1) | (44) |  |  | (26) |
Employer contributions | 17 |  |  | 10 |
Benefits paid from plan assets | (15) |  |  | (6) |
Plan participants’ contributions | 25 |  |  | 14 |
Effect of conversion to U.S. dollars | — |  |  | 50 |
Ending fair value of plan assets | $ | 576 |  |  | $ | 538 |
Unfunded status | $ | (11) |  |  | $ | (21) |
Amounts recognized in the Consolidated Balance Sheets |  |  |
Accrued benefit liability, current | $ | 1 |  |  | $ | 1 |
Accrued benefit liability, noncurrent | $ | 10 |  |  | $ | 20 |
Accumulated other comprehensive loss(2) |  |  |
Actuarial (gain) loss, before tax | $ | (69) |  |  | $ | (49) |
Prior service cost, before tax | $ | 23 |  |  | $ | 1 |
(1)The settlements recognized during fiscal years 2021 and 2020 relate primarily to the Switzerland plan. (2)The Company anticipates amortizing $19 million and $4 million, before tax, of net actuarial gain and prior service costs balances, respectively, to net periodic cost in fiscal year 2022.
Schedule of Amounts Recognized in Balance Sheet | The projected benefit obligations (“PBO”) and plan assets, changes to the PBO and plan assets and the funded status of the plans as of and for the fiscal years ended August 31 are as follows (in millions):
| Fiscal Year Ended August 31,
| 2021 |  | 2020
Change in PBO |  |  |
Beginning PBO | $ | 559 |  |  | $ | 175 |
Service cost | 25 |  |  | 25 |
Interest cost | 5 |  |  | 3 |
Actuarial (gain) loss | 2 |  |  | (81) |
Settlements paid from plan assets(1) | (44) |  |  | (26) |
Total benefits paid | (17) |  |  | (6) |
Plan participants’ contributions | 25 |  |  | 14 |
Plan amendments | 24 |  |  | — |
Acquisitions | 8 |  |  | 404 |
Effect of conversion to U.S. dollars | — |  |  | 51 |
Ending PBO | $ | 587 |  |  | $ | 559 |
Change in plan assets |  |  |
Beginning fair value of plan assets | 538 |  |  | 158 |
Actual return on plan assets | 55 |  |  | 7 |
Acquisitions | — |  |  | 331 |
Settlements paid from plan assets(1) | (44) |  |  | (26) |
Employer contributions | 17 |  |  | 10 |
Benefits paid from plan assets | (15) |  |  | (6) |
Plan participants’ contributions | 25 |  |  | 14 |
Effect of conversion to U.S. dollars | — |  |  | 50 |
Ending fair value of plan assets | $ | 576 |  |  | $ | 538 |
Unfunded status | $ | (11) |  |  | $ | (21) |
Amounts recognized in the Consolidated Balance Sheets |  |  |
Accrued benefit liability, current | $ | 1 |  |  | $ | 1 |
Accrued benefit liability, noncurrent | $ | 10 |  |  | $ | 20 |
Accumulated other comprehensive loss(2) |  |  |
Actuarial (gain) loss, before tax | $ | (69) |  |  | $ | (49) |
Prior service cost, before tax | $ | 23 |  |  | $ | 1 |
(1)The settlements recognized during fiscal years 2021 and 2020 relate primarily to the Switzerland plan. (2)The Company anticipates amortizing $19 million and $4 million, before tax, of net actuarial gain and prior service costs balances, respectively, to net periodic cost in fiscal year 2022.
Schedule of Accumulated and Projected Benefit Obligations | The following table summarizes the total accumulated benefit obligations (“ABO”), the ABO and fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets, and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets for fiscal years 2021 and 2020 (in millions):
| August 31, 2021 |  | August 31, 2020
ABO | $ | 563 |  |  | $ | 536 |
Plans with ABO in excess of plan assets |  |  |
ABO | $ | 59 |  |  | $ | 54 |
Fair value of plan assets | $ | 26 |  |  | $ | 27 |
Plans with PBO in excess of plan assets |  |  |
PBO | $ | 74 |  |  | $ | 437 |
Fair value of plan assets | $ | 26 |  |  | $ | 396 |
Schedule of Information About Net Periodic Benefit Cost for Plans | The following table provides information about the net periodic benefit cost for the plans for fiscal years 2021, 2020 and 2019 (in millions):
| Fiscal Year Ended August 31,
| 2021 |  | 2020 |  | 2019
Service cost | $ | 25 |  |  | $ | 25 |  |  | $ | 1 |
Interest cost | 5 |  |  | 3 |  |  | 3 |
Expected long-term return on plan assets | (16) |  |  | (15) |  |  | (5) |
Recognized actuarial (gain) loss | (10) |  |  | (3) |  |  | 1 |
Amortization of actuarial gains (1) | (6) |  |  | — |  |  | — |
Net settlement loss | 1 |  |  | — |  |  | 1 |
Amortization of prior service costs | 1 |  |  | — |  |  | — |
Net periodic benefit cost | $ | — |  |  | $ | 10 |  |  | $ | 1 |
(1)Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants.
Schedule of Weighted-Average Actuarial Assumptions | Weighted-average actuarial assumptions used to determine net periodic benefit cost and PBO for the plans for the fiscal years 2021, 2020 and 2019 were as follows:
| Fiscal Year Ended August 31,
| 2021 |  | 2020 |  | 2019
Net periodic benefit cost: |  |  |  |  |
Expected long-term return on plan assets(1) | 2.9 | % |  | 3.0 | % |  | 3.6 | %
Rate of compensation increase | 2.1 | % |  | 2.0 | % |  | 4.4 | %
Discount rate | 0.8 | % |  | 0.5 | % |  | 2.2 | %
PBO: |  |  |  |  |
Expected long-term return on plan assets | 3.0 | % |  | 2.9 | % |  | 2.0 | %
Rate of compensation increase | 2.2 | % |  | 2.1 | % |  | 4.3 | %
Discount rate(2) | 0.7 | % |  | 0.8 | % |  | 1.7 | %
(1)The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan. (2)The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover.
Schedule of Fair Values of Plan Assets by Asset Category | The fair values of the plan assets held by the Company by asset category are as follows (in millions):
|  |  | August 31, 2021 |  | August 31, 2020
| Fair Value Hierarchy |  | Fair Value |  | Asset Allocation |  | Fair Value |  | Asset Allocation
Asset Category |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) | Level 1 |  | $ | 15 |  |  | 3 | % |  | $ | 15 |  |  | 3 | %
Equity Securities: |  |  |  |  |  |  |  |  |
Global equity securities(2)(3) | Level 2 |  | 222 |  |  | 39 | % |  | 208 |  |  | 38 | %
Debt Securities: |  |  |  |  |  |  |  |  |
Corporate bonds(3) | Level 2 |  | 262 |  |  | 45 | % |  | 238 |  |  | 44 | %
Government bonds(3) | Level 2 |  | 58 |  |  | 10 | % |  | 58 |  |  | 11 | %
Other Investments: |  |  |  |  |  |  |  |  |
Insurance contracts(4) | Level 3 |  | 19 |  |  | 3 | % |  | 19 |  |  | 4 | %
Fair value of plan assets |  |  | $ | 576 |  |  | 100 | % |  | $ | 538 |  |  | 100 | %
(1)Carrying value approximates fair value. (2)Investments in equity securities by companies incorporated, listed or domiciled in developed and/or emerging market countries. (3)Investments in global equity securities, corporate bonds, government securities and government bonds are valued using the quoted prices of securities with similar characteristics. (4)Consist of an insurance contract that guarantees the payment of the funded pension entitlements, as well as provides a profit share to the Company. The profit share in this contract is not based on actual investments, but, instead on a notional investment portfolio that is expected to return a pre-defined rate. Insurance contract assets are recorded at fair value and is determined based on the cash surrender value of the insured benefits which is the present value of the guaranteed funded benefits. Insurance contracts are valued using unobservable inputs (Level 3 inputs), primarily by discounting expected future cash flows relating to benefits paid from a notional investment portfolio in order to determine the cash surrender value of the policy. The unobservable inputs consist of estimated future benefits to be paid throughout the duration of the policy and estimated discount rates, which both have an immaterial impact on the fair value estimate of the contract.
Schedule of Estimated Future Benefit Payments | The Company expects to make cash contributions between $24 million and $30 million to its funded pension plans during fiscal year 2022. The estimated future benefit payments, which reflect expected future service, are as follows (in millions):
Fiscal Year Ended August 31, | Amount
2022 | $ | 34 |
2023 | $ | 29 |
2024 | $ | 28 |
2025 | $ | 30 |
2026 | $ | 29 |
2027 through 2031 | $ | 143 |

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