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Debt
 9 Months Ended
May 30, 2024
Debt Disclosure [Abstract]  
Debt
As of May 30, 2024As of August 31, 2023
Net Carrying AmountNet Carrying Amount
Stated RateEffective RateCurrentLong-TermTotalCurrentLong-TermTotal
2026 Term Loan A6.791 %6.93 %$49 $884 $933 $49 $921 $970 
2027 Term Loan A6.916 %7.05 %57 1,021 1,078 57 1,063 1,120 
2026 Notes
4.975 %5.07 %— 499 499 — 499 499 
2027 Notes(1)
4.185 %4.27 %— 800 800 — 798 798 
2028 Notes5.375 %5.52 %— 597 597 — 596 596 
2029 A Notes5.327 %5.40 %— 698 698 — 697 697 
2029 B Notes6.750 %6.54 %— 1,262 1,262 — 1,263 1,263 
2030 Notes
4.663 %4.73 %— 847 847 — 846 846 
2031 Notes
5.300 %5.41 %— 994 994 — — — 
2032 Green Bonds2.703 %2.77 %— 995 995 — 995 995 
2033 A Notes5.875 %5.96 %— 745 745 — 745 745 
2033 B Notes5.875 %6.01 %— 891 891 — 890 890 
2041 Notes3.366 %3.41 %— 497 497 — 497 497 
2051 Notes3.477 %3.52 %— 496 496 — 496 496 
2024 Term Loan AN/AN/A— — — — 587 587 
2025 Term Loan AN/AN/A— — — — 1,050 1,050 
Finance lease obligations
N/A4.78 %292 1,634 1,926 172 1,109 1,281 
 
$398 $12,860 $13,258 $278 $13,052 $13,330 
(1) In 2021, we entered into fixed-to-floating interest rate swaps on the 2027 Notes with an aggregate $900 million notional amount equal to the principal amount of the 2027 Notes. The resulting variable interest paid is at a rate equal to SOFR plus approximately 3.33%. The fixed-to-floating interest rate swaps are accounted for as fair value hedges, and as a result, the carrying values of our 2027 Notes reflect adjustments in fair value.

Debt Activity

The table below presents the effects of debt financing and prepayment activities in the first nine months of 2024:
Transaction DateIncrease (Decrease) in PrincipalIncrease (Decrease) in Carrying ValueIncrease (Decrease) in Cash
Issuance
2031 NotesJanuary 12, 2024$1,000 $993 $993 
Prepayments
2024 Term Loan AJanuary 12, 2024(588)(587)(588)
2025 Term Loan AJanuary 12, 2024(402)(401)(402)
2025 Term Loan A
May 29, 2024
(650)(649)(650)
$(640)$(644)$(647)

2031 Notes

On January 12, 2024, we issued $1.00 billion principal amount of senior unsecured 2031 Notes in a public offering. The 2031 Notes bear interest at a rate of 5.300% per year and will mature on January 15, 2031. Issuance costs and debt discount for the 2031 Notes were $7 million.
We may redeem the 2031 Notes, in whole or in part, at our option prior to their maturity dates at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the present value of the remaining scheduled payments of principal and interest, plus accrued interest in each case. We may also redeem the 2031 Notes, in whole or in part, at a price equal to par two months prior to maturity in accordance with the terms of the 2031 Notes.

The 2031 Notes contain covenants that, among other things, limit, in certain circumstances, our ability and/or the ability of our restricted subsidiaries (which are generally domestic subsidiaries in which we own at least 80% of the voting stock and which own principal property, as defined in the indenture governing the 2031 Notes) to (1) create or incur certain liens; (2) enter into certain sale and lease-back transactions; and (3) consolidate with or merge with or into, or convey, transfer, or lease all or substantially all of our properties and assets, to another entity. These covenants are subject to a number of limitations and exceptions. Additionally, if a change of control triggering event occurs, as defined in the indenture governing the 2031 Notes, we will be required to offer to purchase the 2031 Notes at 101% of the outstanding aggregate principal amount plus accrued interest up to the purchase date.

Revolving Credit Facility

As of May 30, 2024, no amounts were outstanding under the Revolving Credit Facility and $2.50 billion was available to us. Under the Revolving Credit Facility, borrowings would generally bear interest at a rate equal to adjusted term SOFR plus 1.00% to 1.75%, depending on our corporate credit ratings. Adjusted term SOFR for the Revolving Credit Facility agreement is the SOFR benchmark plus a credit spread adjustment ranging from approximately 0.11% to 0.43% depending on the applicable interest period selected. Any amounts outstanding under the Revolving Credit Facility would mature in May 2026 and amounts borrowed may be prepaid without penalty.

The Revolving Credit Facility requires us to maintain, on a consolidated basis, a leverage ratio of total indebtedness to adjusted EBITDA, as defined in the Revolving Credit Facility and calculated as of the last day of each fiscal quarter, not to exceed 3.25 to 1.00. On March 27, 2023, we amended the Revolving Credit Facility to provide that in lieu of the foregoing leverage ratio, during the fourth quarter of 2023 and each quarter of 2024, we will be required to maintain, on a consolidated basis, a net leverage ratio of total net indebtedness to adjusted EBITDA, as defined in the Revolving Credit Facility and calculated as of the last day of each fiscal quarter, not to exceed 3.25 to 1.00. Alternatively, for up to three of such five quarters, we may elect to comply with a requirement of minimum liquidity, as defined in the Revolving Credit Facility, of not less than $5.0 billion. Each of the leverage ratio and net leverage ratio maximums, as applicable, is subject to a temporary four quarter increase in such ratio to 3.75 to 1.00 following certain material acquisitions. Through the third quarter of 2024, we complied with these requirements under the Revolving Credit Facility.

Maturities of Notes Payable

As of May 30, 2024, maturities of notes payable by fiscal year were as follows:
Remainder of 2024
$27 
2025107 
2026607 
20271,780 
20281,493 
2029 and thereafter7,450 
Unamortized issuance costs, discounts, and premium, net(34)
Hedge accounting fair value adjustment(98)
$11,332