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Leases | 12 Months Ended
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Aug. 31, 2024
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, 2024 |  | August 31, 2023(1)
Assets |  |  |  |  |  |
Operating lease assets |  | Operating lease right-of-use assets |  | $ | 360 |  |  | $ | 367 |
Finance lease assets(2) |  | Property, plant and equipment, net |  | 378 |  |  | 310 |
Total lease assets |  |  |  | $ | 738 |  |  | $ | 677 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 93 |  |  | $ | 104 |
Finance lease liabilities |  | Accrued expenses |  | 119 |  |  | 74 |
Non-current |  |  |  |  |  |
Operating lease liabilities |  | Non-current operating lease liabilities |  | 284 |  |  | 269 |
Finance lease liabilities |  | Other liabilities |  | 235 |  |  | 212 |
Total lease liabilities |  |  |  | $ | 731 |  |  | $ | 659 |
(1)Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. (2)Net of accumulated amortization of $162 million and $199 million as of August 31, 2024 and 2023, 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,
| 2024 |  | 2023
Operating lease cost | $ | 118 |  |  | $ | 147 |
Finance lease cost |  |  |
Amortization of leased assets | 50 |  |  | 89 |
Interest on lease liabilities | 10 |  |  | 9 |
Net lease cost(1)(2) | $ | 178 |  |  | $ | 245 |
(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, 2024 |  | August 31, 2023
| Weighted-average remaining lease term |  | Weighted-average discount rate |  | Weighted-average remaining lease term |  | Weighted-average discount rate
Operating leases | 5.7 years |  | 3.80 | % |  | 5.2 years |  | 3.55 | %
Finance leases | 5.2 years |  | 4.23 | % |  | 2.1 years |  | 3.84 | %
The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):
| Fiscal Year Ended August 31,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for operating leases(1) | $ | 116 |  |  | $ | 135 |
Operating cash flows for finance leases(1) | $ | 10 |  |  | $ | 9 |
Financing activities for finance leases(2) | $ | 111 |  |  | $ | 157 |
Non-cash right-of-use assets obtained in exchange for lease liabilities: |  |  |
Operating leases | $ | 109 |  |  | $ | 110 |
Finance leases | $ | 163 |  |  | $ | 131 |
(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 following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2024 (in millions):
Fiscal Year Ended August 31, | Operating Leases(1) |  | Finance Leases(1)(2)(3) |  | Total
2025 | $ | 106 |  |  | $ | 129 |  |  | $ | 235 |
2026 | 83 |  |  | 124 |  |  | 207 |
2027 | 61 |  |  | 23 |  |  | 84 |
2028 | 48 |  |  | 18 |  |  | 66 |
2029 | 41 |  |  | 13 |  |  | 54 |
Thereafter | 86 |  |  | 91 |  |  | 177 |
Total lease payments | $ | 425 |  |  | $ | 398 |  |  | $ | 823 |
Less: Imputed interest | (48) |  |  | (44) |  |  | (92) |
Present value of lease liabilities | $ | 377 |  |  | $ | 354 |  |  | $ | 731 |
(1)Excludes $25 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)Includes a $94 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 $124 million. (3)Excludes $274 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, 2024 |  | August 31, 2023(1)
Assets |  |  |  |  |  |
Operating lease assets |  | Operating lease right-of-use assets |  | $ | 360 |  |  | $ | 367 |
Finance lease assets(2) |  | Property, plant and equipment, net |  | 378 |  |  | 310 |
Total lease assets |  |  |  | $ | 738 |  |  | $ | 677 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 93 |  |  | $ | 104 |
Finance lease liabilities |  | Accrued expenses |  | 119 |  |  | 74 |
Non-current |  |  |  |  |  |
Operating lease liabilities |  | Non-current operating lease liabilities |  | 284 |  |  | 269 |
Finance lease liabilities |  | Other liabilities |  | 235 |  |  | 212 |
Total lease liabilities |  |  |  | $ | 731 |  |  | $ | 659 |
(1)Excludes operating lease and finance lease assets and liabilities classified as held for sale. See Note 17 – “Business Acquisitions and Divestitures” for additional information. (2)Net of accumulated amortization of $162 million and $199 million as of August 31, 2024 and 2023, 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,
| 2024 |  | 2023
Operating lease cost | $ | 118 |  |  | $ | 147 |
Finance lease cost |  |  |
Amortization of leased assets | 50 |  |  | 89 |
Interest on lease liabilities | 10 |  |  | 9 |
Net lease cost(1)(2) | $ | 178 |  |  | $ | 245 |
(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, 2024 |  | August 31, 2023
| Weighted-average remaining lease term |  | Weighted-average discount rate |  | Weighted-average remaining lease term |  | Weighted-average discount rate
Operating leases | 5.7 years |  | 3.80 | % |  | 5.2 years |  | 3.55 | %
Finance leases | 5.2 years |  | 4.23 | % |  | 2.1 years |  | 3.84 | %
The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):
| Fiscal Year Ended August 31,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for operating leases(1) | $ | 116 |  |  | $ | 135 |
Operating cash flows for finance leases(1) | $ | 10 |  |  | $ | 9 |
Financing activities for finance leases(2) | $ | 111 |  |  | $ | 157 |
Non-cash right-of-use assets obtained in exchange for lease liabilities: |  |  |
Operating leases | $ | 109 |  |  | $ | 110 |
Finance leases | $ | 163 |  |  | $ | 131 |
(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 following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2024 (in millions):
Fiscal Year Ended August 31, | Operating Leases(1) |  | Finance Leases(1)(2)(3) |  | Total
2025 | $ | 106 |  |  | $ | 129 |  |  | $ | 235 |
2026 | 83 |  |  | 124 |  |  | 207 |
2027 | 61 |  |  | 23 |  |  | 84 |
2028 | 48 |  |  | 18 |  |  | 66 |
2029 | 41 |  |  | 13 |  |  | 54 |
Thereafter | 86 |  |  | 91 |  |  | 177 |
Total lease payments | $ | 425 |  |  | $ | 398 |  |  | $ | 823 |
Less: Imputed interest | (48) |  |  | (44) |  |  | (92) |
Present value of lease liabilities | $ | 377 |  |  | $ | 354 |  |  | $ | 731 |
(1)Excludes $25 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)Includes a $94 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 $124 million. (3)Excludes $274 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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