v3.24.3
Income taxes (Tables)
 12 Months Ended
Aug. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of income before income tax, domestic and foreign
The components of (Loss) earnings before income tax provision (benefit) were (in millions):
 202420232022
U.S.$(15,599)$(7,553)$2,998 
Non–U.S.1,380 2,134 987 
Total$(14,219)$(5,419)$3,985 
Provisions for income taxes
The Income tax provision (benefit) consists of the following (in millions):
 202420232022
Current provision   
Federal$91 $242 $39 
State52 (13)37 
Non–U.S.185 283 260 
 $328 $512 $336 
Deferred provision   
Federal$910 $(1,886)$(78)
State259 (364)(20)
Non–U.S. (251)(120)(268)
 918 (2,370)(366)
Income tax provision (benefit)$1,246 $(1,858)$(30)
Difference between the statutory federal income tax rate and the effective tax rate
The difference between the statutory federal income tax rate and the effective tax rate is as follows:

 202420232022
Federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit(1.8)5.8 0.4 
Foreign income taxed at non-U.S. rates(0.3)(3.0)(3.0)
Non-taxable income0.3 2.5 (2.7)
Non-deductible expenses(0.9)(4.9)3.0 
Change in valuation allowance 1
(13.2)6.0 (9.0)
Tax benefits from restructuring— 1.1 — 
Uncertain tax positions(0.4)(0.5)1.3 
Non-controlling interest(10.1)(2.9)1.2 
Goodwill impairment(7.2)— — 
Tax credits0.5 2.8 (1.0)
Conversion of equity investment— — (11.8)
Change in tax basis in foreign assets2
2.2 — — 
Change in outside basis difference1.4 1.9 — 
Change in measurement of prior year tax positions— 3.5 — 
Other(0.3)1.0 (0.2)
Effective income tax rate 3
(8.8)%34.3 %(0.8)%

1Net of changes in related tax attributes and tax benefits from capital losses generated and utilized.
2Represents the initial recognition of tax basis in intangible assets in foreign jurisdiction and the related valuation allowance.
3Effective tax rate for fiscal 2024 represents a tax expense on a pre-tax loss.
Deferred tax assets and liabilities included in the consolidated balance sheet
The deferred tax assets and liabilities included in the Consolidated Balance Sheets consist of the following (in millions):
 August 31, 2024August 31, 2023
Deferred tax assets:  
Compensation and benefits$100 $98 
Insurance125 131 
Accrued rent & lease obligations4,969 5,265 
Legal liability 1,477 1,551 
Allowance for doubtful accounts36 23 
Tax attributes7,894 7,784 
Stock compensation62 74 
Derivatives225 — 
Deferred income5 8 
Equity method investment29 76 
Intangible assets499 — 
Post retirement benefit91 — 
Other86 143 
 Total deferred tax assets$15,598 $15,153 
Less: valuation allowance9,642 7,360 
Total deferred tax assets, net$5,956 $7,793 
Deferred tax liabilities:  
Accelerated depreciation$341 $254 
Inventory371 403 
Intangible assets1,008 1,024 
Lease right-of-use asset4,392 4,690 
Outside basis difference 340 1,045 
Post retirement benefit196 — 
Other82 180 
Total deferred tax liabilities$6,730 $7,596 
Net deferred tax (liabilities) assets$(774)$197 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table provides a reconciliation of the total amounts of unrecognized tax benefits (in millions):
 202420232022
Balance at beginning of year$1,106 $1,110 $1,098 
Gross increases related to tax positions in a prior period91 12 63 
Gross decreases related to tax positions in a prior period(443)(19)(51)
Gross increases related to tax positions in the current period273 12 21 
Settlements with taxing authorities(12)(7)(19)
Lapse of statute of limitations(3)(2)(2)
Balance at end of year$1,012 $1,106 $1,110