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Leases | 12 Months Ended
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Aug. 31, 2023
Leases [Abstract] |
Leases | Leases 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 Item |  | August 31, 2023(1) |  | August 31, 2022
Assets |  |  |  |  |  |
Operating lease assets(2) |  | Operating lease right-of-use assets |  | $ | 367 |  |  | $ | 500 |
Finance lease assets(3) |  | Property, plant and equipment, net |  | 310 |  |  | 368 |
Total lease assets |  |  |  | $ | 677 |  |  | $ | 868 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 104 |  |  | $ | 119 |
Finance lease liabilities |  | Accrued expenses |  | 74 |  |  | 120 |
Non-current |  |  |  |  |  |
Operating lease liabilities |  | Non-current operating lease liabilities |  | 269 |  |  | 417 |
Finance lease liabilities |  | Other liabilities |  | 212 |  |  | 198 |
Total lease liabilities |  |  |  | $ | 659 |  |  | $ | 854 |
(1)Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information. (2)Net of accumulated amortization of $309 million and $249 million as of August 31, 2023 and 2022, respectively. (3)Net of accumulated amortization of $199 million and $110 million as of August 31, 2023 and 2022, respectively. 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,
| 2023 |  | 2022
Operating lease cost | $ | 147 |  |  | $ | 143 |
Finance lease cost |  |  |
Amortization of leased assets | 89 |  |  | 70 |
Interest on lease liabilities | 9 |  |  | 6 |
Other | 15 |  |  | 22 |
Net lease cost(1) | $ | 260 |  |  | $ | 241 |
(1)Lease costs are primarily recognized in cost of revenue. 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, 2023 |  | August 31, 2022
| Weighted-average remaining lease term |  | Weighted-average discount rate |  | Weighted-average remaining lease term |  | Weighted-average discount rate
Operating leases | 5.2 years |  | 3.55 | % |  | 5.3 years |  | 3.19 | %
Finance leases | 2.1 years |  | 3.84 | % |  | 2.6 years |  | 2.84 | %
The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):
| Fiscal Year Ended August 31,
| 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for operating leases(1) | $ | 135 |  |  | $ | 123 |
Operating cash flows for finance leases(1) | $ | 9 |  |  | $ | 6 |
Financing activities for finance leases(2) | $ | 157 |  |  | $ | 120 |
Non-cash right-of-use assets obtained in exchange for new lease liabilities: |  |  |
Operating leases | $ | 110 |  |  | $ | 229 |
Finance leases | $ | 131 |  |  | $ | 127 |
(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. The future minimum lease payments under operating and finance leases as of August 31, 2023 were as follows (in millions):
Fiscal Year Ended August 31, | Operating Leases(1) |  | Finance Leases(1)(2) |  | Total
2024 | $ | 138 |  |  | $ | 93 |  |  | $ | 231 |
2025 | 101 |  |  | 102 |  |  | 203 |
2026 | 77 |  |  | 101 |  |  | 178 |
2027 | 58 |  |  | 6 |  |  | 64 |
2028 | 42 |  |  | 2 |  |  | 44 |
Thereafter | 116 |  |  | 10 |  |  | 126 |
Total minimum lease payments | $ | 532 |  |  | $ | 314 |  |  | $ | 846 |
Less: Interest | (56) |  |  | (17) |  |  | (73) |
Present value of lease liabilities | $ | 476 |  |  | $ | 297 |  |  | $ | 773 |
(1)Excludes $214 million of payments related to leases signed but not yet commenced. Of these excluded payments, $163 million relates to a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. This is also the Company’s maximum exposure to loss related to the VIE. The Company expects the lease related to the VIE to commence in fiscal year 2024. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. (2)Excludes $194 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.
Leases | Leases 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 Item |  | August 31, 2023(1) |  | August 31, 2022
Assets |  |  |  |  |  |
Operating lease assets(2) |  | Operating lease right-of-use assets |  | $ | 367 |  |  | $ | 500 |
Finance lease assets(3) |  | Property, plant and equipment, net |  | 310 |  |  | 368 |
Total lease assets |  |  |  | $ | 677 |  |  | $ | 868 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 104 |  |  | $ | 119 |
Finance lease liabilities |  | Accrued expenses |  | 74 |  |  | 120 |
Non-current |  |  |  |  |  |
Operating lease liabilities |  | Non-current operating lease liabilities |  | 269 |  |  | 417 |
Finance lease liabilities |  | Other liabilities |  | 212 |  |  | 198 |
Total lease liabilities |  |  |  | $ | 659 |  |  | $ | 854 |
(1)Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 16 – “Business Acquisitions and Divestitures” for additional information. (2)Net of accumulated amortization of $309 million and $249 million as of August 31, 2023 and 2022, respectively. (3)Net of accumulated amortization of $199 million and $110 million as of August 31, 2023 and 2022, respectively. 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,
| 2023 |  | 2022
Operating lease cost | $ | 147 |  |  | $ | 143 |
Finance lease cost |  |  |
Amortization of leased assets | 89 |  |  | 70 |
Interest on lease liabilities | 9 |  |  | 6 |
Other | 15 |  |  | 22 |
Net lease cost(1) | $ | 260 |  |  | $ | 241 |
(1)Lease costs are primarily recognized in cost of revenue. 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, 2023 |  | August 31, 2022
| Weighted-average remaining lease term |  | Weighted-average discount rate |  | Weighted-average remaining lease term |  | Weighted-average discount rate
Operating leases | 5.2 years |  | 3.55 | % |  | 5.3 years |  | 3.19 | %
Finance leases | 2.1 years |  | 3.84 | % |  | 2.6 years |  | 2.84 | %
The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):
| Fiscal Year Ended August 31,
| 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for operating leases(1) | $ | 135 |  |  | $ | 123 |
Operating cash flows for finance leases(1) | $ | 9 |  |  | $ | 6 |
Financing activities for finance leases(2) | $ | 157 |  |  | $ | 120 |
Non-cash right-of-use assets obtained in exchange for new lease liabilities: |  |  |
Operating leases | $ | 110 |  |  | $ | 229 |
Finance leases | $ | 131 |  |  | $ | 127 |
(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. The future minimum lease payments under operating and finance leases as of August 31, 2023 were as follows (in millions):
Fiscal Year Ended August 31, | Operating Leases(1) |  | Finance Leases(1)(2) |  | Total
2024 | $ | 138 |  |  | $ | 93 |  |  | $ | 231 |
2025 | 101 |  |  | 102 |  |  | 203 |
2026 | 77 |  |  | 101 |  |  | 178 |
2027 | 58 |  |  | 6 |  |  | 64 |
2028 | 42 |  |  | 2 |  |  | 44 |
Thereafter | 116 |  |  | 10 |  |  | 126 |
Total minimum lease payments | $ | 532 |  |  | $ | 314 |  |  | $ | 846 |
Less: Interest | (56) |  |  | (17) |  |  | (73) |
Present value of lease liabilities | $ | 476 |  |  | $ | 297 |  |  | $ | 773 |
(1)Excludes $214 million of payments related to leases signed but not yet commenced. Of these excluded payments, $163 million relates to a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. This is also the Company’s maximum exposure to loss related to the VIE. The Company expects the lease related to the VIE to commence in fiscal year 2024. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. (2)Excludes $194 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.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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