XML 56 R41.htm IDEA: XBRL DOCUMENT
v3.23.3

Postretirement and Other Employee Benefits (Tables) | 12 Months Ended
--- | ---
Aug. 31, 2023
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,
| 2023 |  | 2022
Change in PBO |  |  |
Beginning PBO | $ | 432 |  |  | $ | 587 |
Service cost | 18 |  |  | 25 |
Interest cost | 12 |  |  | 4 |
Actuarial gain | (23) |  |  | (119) |
Settlements paid from plan assets(1) | (27) |  |  | (28) |
Total benefits paid | (16) |  |  | (13) |
Plan participants’ contributions | 22 |  |  | 21 |
Effect of conversion to U.S. dollars | 43 |  |  | (45) |
Ending PBO | $ | 461 |  |  | $ | 432 |
Change in plan assets |  |  |
Beginning fair value of plan assets | 459 |  |  | 576 |
Actual return on plan assets | (16) |  |  | (68) |
Settlements paid from plan assets(1) | (27) |  |  | (28) |
Employer contributions | 18 |  |  | 16 |
Benefits paid from plan assets | (15) |  |  | (12) |
Plan participants’ contributions | 22 |  |  | 21 |
Effect of conversion to U.S. dollars | 45 |  |  | (46) |
Ending fair value of plan assets | $ | 486 |  |  | $ | 459 |
Funded status | $ | 25 |  |  | $ | 27 |
Amounts recognized in the Consolidated Balance Sheets |  |  |
Accrued benefit liability, current | $ | 1 |  |  | $ | 1 |
Accrued benefit asset, noncurrent | $ | 26 |  |  | $ | 28 |
Accumulated other comprehensive loss(2) |  |  |
Actuarial gain, before tax | $ | (71) |  |  | $ | (85) |
Prior service cost, before tax | $ | 16 |  |  | $ | 18 |
(1)The settlements recognized during fiscal years 2023 and 2022 relate primarily to the Switzerland plan. (2)The Company anticipates amortizing $10 million and $4 million, before tax, of net actuarial gain and prior service costs balances, respectively, to net periodic cost in fiscal year 2024.
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,
| 2023 |  | 2022
Change in PBO |  |  |
Beginning PBO | $ | 432 |  |  | $ | 587 |
Service cost | 18 |  |  | 25 |
Interest cost | 12 |  |  | 4 |
Actuarial gain | (23) |  |  | (119) |
Settlements paid from plan assets(1) | (27) |  |  | (28) |
Total benefits paid | (16) |  |  | (13) |
Plan participants’ contributions | 22 |  |  | 21 |
Effect of conversion to U.S. dollars | 43 |  |  | (45) |
Ending PBO | $ | 461 |  |  | $ | 432 |
Change in plan assets |  |  |
Beginning fair value of plan assets | 459 |  |  | 576 |
Actual return on plan assets | (16) |  |  | (68) |
Settlements paid from plan assets(1) | (27) |  |  | (28) |
Employer contributions | 18 |  |  | 16 |
Benefits paid from plan assets | (15) |  |  | (12) |
Plan participants’ contributions | 22 |  |  | 21 |
Effect of conversion to U.S. dollars | 45 |  |  | (46) |
Ending fair value of plan assets | $ | 486 |  |  | $ | 459 |
Funded status | $ | 25 |  |  | $ | 27 |
Amounts recognized in the Consolidated Balance Sheets |  |  |
Accrued benefit liability, current | $ | 1 |  |  | $ | 1 |
Accrued benefit asset, noncurrent | $ | 26 |  |  | $ | 28 |
Accumulated other comprehensive loss(2) |  |  |
Actuarial gain, before tax | $ | (71) |  |  | $ | (85) |
Prior service cost, before tax | $ | 16 |  |  | $ | 18 |
(1)The settlements recognized during fiscal years 2023 and 2022 relate primarily to the Switzerland plan. (2)The Company anticipates amortizing $10 million and $4 million, before tax, of net actuarial gain and prior service costs balances, respectively, to net periodic cost in fiscal year 2024.
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,
| 2023 |  | 2022
Change in PBO |  |  |
Beginning PBO | $ | 432 |  |  | $ | 587 |
Service cost | 18 |  |  | 25 |
Interest cost | 12 |  |  | 4 |
Actuarial gain | (23) |  |  | (119) |
Settlements paid from plan assets(1) | (27) |  |  | (28) |
Total benefits paid | (16) |  |  | (13) |
Plan participants’ contributions | 22 |  |  | 21 |
Effect of conversion to U.S. dollars | 43 |  |  | (45) |
Ending PBO | $ | 461 |  |  | $ | 432 |
Change in plan assets |  |  |
Beginning fair value of plan assets | 459 |  |  | 576 |
Actual return on plan assets | (16) |  |  | (68) |
Settlements paid from plan assets(1) | (27) |  |  | (28) |
Employer contributions | 18 |  |  | 16 |
Benefits paid from plan assets | (15) |  |  | (12) |
Plan participants’ contributions | 22 |  |  | 21 |
Effect of conversion to U.S. dollars | 45 |  |  | (46) |
Ending fair value of plan assets | $ | 486 |  |  | $ | 459 |
Funded status | $ | 25 |  |  | $ | 27 |
Amounts recognized in the Consolidated Balance Sheets |  |  |
Accrued benefit liability, current | $ | 1 |  |  | $ | 1 |
Accrued benefit asset, noncurrent | $ | 26 |  |  | $ | 28 |
Accumulated other comprehensive loss(2) |  |  |
Actuarial gain, before tax | $ | (71) |  |  | $ | (85) |
Prior service cost, before tax | $ | 16 |  |  | $ | 18 |
(1)The settlements recognized during fiscal years 2023 and 2022 relate primarily to the Switzerland plan. (2)The Company anticipates amortizing $10 million and $4 million, before tax, of net actuarial gain and prior service costs balances, respectively, to net periodic cost in fiscal year 2024.
Schedule of Accumulated 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 2023 and 2022 (in millions):
| August 31, 2023 |  | August 31, 2022
ABO | $ | 441 |  |  | $ | 417 |
Plans with ABO in excess of plan assets |  |  |
ABO | $ | 41 |  |  | $ | 41 |
Fair value of plan assets | $ | 15 |  |  | $ | 19 |
Plans with PBO in excess of plan assets |  |  |
PBO | $ | 52 |  |  | $ | 51 |
Fair value of plan assets | $ | 15 |  |  | $ | 19 |
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 2023, 2022 and 2021 (in millions):
| Fiscal Year Ended August 31,
| 2023 |  | 2022 |  | 2021
Service cost(1) | $ | 18 |  |  | $ | 25 |  |  | $ | 25 |
Interest cost(2) | 12 |  |  | 4 |  |  | 5 |
Expected long-term return on plan assets(2) | (17) |  |  | (17) |  |  | (16) |
Recognized actuarial gain(2) | (7) |  |  | (6) |  |  | (10) |
Amortization of actuarial gains(2)(3) | (7) |  |  | (8) |  |  | (6) |
Net settlement loss(2) | — |  |  | 1 |  |  | 1 |
Amortization of prior service costs(2) | 4 |  |  | 4 |  |  | 1 |
Net periodic benefit cost | $ | 3 |  |  | $ | 3 |  |  | $ | — |
(1)Service cost is recognized in cost of revenue in the Consolidated Statements of Operations. (2)Components are recognized in other expense in the Consolidated Statements of Operations. (3)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 2023, 2022 and 2021 were as follows:
| Fiscal Year Ended August 31,
| 2023 |  | 2022 |  | 2021
Net periodic benefit cost: |  |  |  |  |
Expected long-term return on plan assets(1) | 3.6 | % |  | 3.0 | % |  | 2.9 | %
Rate of compensation increase | 2.1 | % |  | 2.2 | % |  | 2.1 | %
Discount rate | 2.6 | % |  | 0.7 | % |  | 0.8 | %
PBO: |  |  |  |  |
Expected long-term return on plan assets | 3.7 | % |  | 3.6 | % |  | 3.0 | %
Rate of compensation increase | 1.9 | % |  | 2.1 | % |  | 2.2 | %
Discount rate(2) | 2.8 | % |  | 2.6 | % |  | 0.7 | %
(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, 2023 |  | August 31, 2022
| Fair Value Hierarchy |  | Fair Value |  | Asset Allocation |  | Fair Value |  | Asset Allocation
Asset Category |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) | Level 1 |  | $ | 17 |  |  | 3 | % |  | $ | 13 |  |  | 3 | %
Equity Securities: |  |  |  |  |  |  |  |  |
Global equity securities(2)(3) | Level 2 |  | 213 |  |  | 44 | % |  | 197 |  |  | 43 | %
Debt Securities: |  |  |  |  |  |  |  |  |
Corporate bonds(3) | Level 2 |  | 216 |  |  | 45 | % |  | 203 |  |  | 44 | %
Government bonds(3) | Level 2 |  | 30 |  |  | 6 | % |  | 34 |  |  | 7 | %
Other Investments: |  |  |  |  |  |  |  |  |
Insurance contracts(4) | Level 3 |  | 10 |  |  | 2 | % |  | 12 |  |  | 3 | %
Fair value of plan assets |  |  | $ | 486 |  |  | 100 | % |  | $ | 459 |  |  | 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 $25 million and $30 million to its funded pension plans during fiscal year 2024. The estimated future benefit payments, which reflect expected future service, are as follows (in millions):
Fiscal Year Ended August 31, | Amount
2024 | $ | 34 |
2025 | $ | 29 |
2026 | $ | 29 |
2027 | $ | 33 |
2028 | $ | 31 |
2029 through 2033 | $ | 156 |

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of benefit obligations including accumulated benefit obligation and projected benefit obligation. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -SubTopic 20 -Subparagraph (e) -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfAccumulatedAndProjectedBenefitObligationsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfAmountsRecognizedInBalanceSheetTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assumption used to determine benefit obligation and net periodic benefit cost of defined benefit plan. Includes, but is not limited to, discount rate, rate of compensation increase, expected long-term rate of return on plan assets and interest crediting rate. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (k) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfAssumptionsUsedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of beginning and ending balances of the fair value of plan assets of pension plans and/or other employee benefit plans showing separately, if applicable, the effects during the period attributable to each of the following: actual return on plan assets, foreign currency exchange rate changes, contributions by the employer, contributions by plan participants, benefits paid, business combinations, divestitures, and settlements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -SubTopic 20 -Subparagraph (b) -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfChangesInFairValueOfPlanAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in the benefit obligation of pension plans and/or other employee benefit plans from the beginning to the end of the period, showing separately, if applicable, the effects of the following: service cost, interest cost, contributions by plan participants, actuarial gains and losses, foreign currency exchange rate changes, benefits paid, plan amendments, business combinations, divestitures, curtailments, settlements, and special and contractual termination benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -SubTopic 20 -Subparagraph (a) -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfChangesInProjectedBenefitObligationsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 20 -Topic 715 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480482/715-20-55-17 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-4 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-2 + Details
Name: | us-gaap_ScheduleOfDefinedBenefitPlansDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of benefits expected to be paid by pension plans and/or other employee benefit plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -SubTopic 20 -Subparagraph (f) -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfExpectedBenefitPaymentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net benefit costs for pension plans and/or other employee benefit plans including service cost, interest cost, expected return on plan assets, gain (loss), prior service cost or credit, transition asset or obligation, and gain (loss) recognized due to settlements or curtailments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -SubTopic 20 -Subparagraph (h) -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_ScheduleOfNetBenefitCostsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration