INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2026

Schedule of Current and Deferred Income Taxes Expense


	Fiscal
	2026		2025		2024
Current taxes
U.S. federal	$	515,474	$	238,115	$	408,281
U.S. state and local	158,711		88,612		173,024
Non-U.S.	2,050,077		1,753,918		1,792,809
Total current tax expense	2,724,262		2,080,645		2,374,114
Deferred taxes
U.S. federal	(24,245)		53,095		(154,553)
U.S. state and local	30,676		33,112		(55,141)
Non-U.S.	118,640		271,141		115,706
Total deferred tax (benefit) expense	125,071		357,348		(93,988)
Total income tax expense
U.S. federal	491,229		291,210		253,728
U.S. state and local	189,387		121,724		117,883
Non-U.S.	2,168,717		2,025,059		1,908,515
Total income tax expense	$	2,849,333	$	2,437,993	$	2,280,126

Schedule of Components of Income Before Income Taxes

The components of Income before income taxes are as follows:


	Fiscal
	2026		2025		2024
U.S. sources	$	1,964,490	$	1,071,581	$	1,628,818
Non-U.S. sources	9,407,725		9,198,812		8,070,505
Total	$	11,372,215	$	10,270,393	$	9,699,323

Reconciliation of the U.S. federal statutory income tax rate to effective tax rate

The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for fiscal 2026, pursuant to the requirements of ASU 2023-09, is as follows:


	Fiscal 2026
U.S. federal statutory income tax rate	$	2,388,165	21.0	%
U.S. federal

Effect of cross-border tax laws
Foreign-derived intangible income deduction	(157,732)		(1.4)
Other	65,908		0.6


Nontaxable or nondeductible items	48,736		0.4
Other adjustments, net	49,782		0.4
U.S. state and local income tax, net of federal effect (1)	141,174		1.2
Non-U.S. tax effects
Ireland
Statutory income tax rate difference	(357,958)		(3.1)
Other	(36,393)		(0.3)
India	150,052		1.3



Other non-U.S. jurisdictions	493,570		4.4
Worldwide changes in unrecognized tax benefits	64,029		0.6
Effective income tax rate	$	2,849,333	25.1 %

(1)For fiscal 2026, state and local taxes in California, Illinois, New York, New York City, Pennsylvania and Virginia made up the majority (greater than 50 percent) of the tax effect in this category.

The reconciliations of the U.S. federal statutory income tax rate to our effective income tax rate for fiscal 2025 and 2024, as previously disclosed prior to adoption of ASU 2023-09, were as follows:


	Fiscal
	2025		2024
U.S. federal statutory income tax rate	21.0	%	21.0	%
U.S. state and local taxes, net	0.7		0.9
Non-U.S. operations taxed at other rates	—		1.0
Final determinations (1)	(1.5)		(1.2)
Other net activity in unrecognized tax benefits	3.0		2.7

Excess tax benefits from share based payments	(0.6)		(1.0)

Foreign-derived intangible income deduction	(1.4)		(1.5)
Other, net	2.5		1.6
Effective income tax rate	23.7	%	23.5	%

(1)Final determinations include final agreements with tax authorities and expirations of statutes of limitations.

Schedule of Components of Deferred Tax Assets and Liabilities

The components of our deferred tax assets and liabilities included the following:


	August 31, 2026		August 31, 2025 (1)
Deferred tax assets
Pensions	$	491,045	$	494,346

Compensation and benefits	1,054,353		902,451
Share-based compensation	614,239		603,195
Tax credit carryforwards	1,537,225		1,544,834
Net operating loss carryforwards	279,892		266,770

Deferred amortization deductions	512,145		649,143
Indirect effects of unrecognized tax benefits	412,081		369,406
Licenses and other intangibles	441,204		651,160
Leases	766,092		725,001

Other	1,536,065		1,472,502
Total deferred tax assets	7,644,341		7,678,808
Valuation allowance	(1,674,836)		(1,689,015)
Deferred tax assets, net of valuation allowance	5,969,505		5,989,793
Deferred tax liabilities
Pensions	(278,136)		(156,872)

Investments in subsidiaries	(195,275)		(226,901)
Intangibles	(955,086)		(813,876)
Leases	(694,218)		(635,331)
Revenue recognition	(270,838)		(255,333)
Other	(618,452)		(582,196)
Total deferred tax liabilities	(3,012,005)		(2,670,509)
Net deferred tax assets	$	2,957,500	$	3,319,284

(1)Prior period amounts have been reclassified to conform with the current period presentation.

Schedule of Income Taxes Paid (Net of Refunds Received)

Income taxes paid (net of refunds received) in fiscal 2026, pursuant to the disclosure requirements of ASU 2023-09, were as follows:


	Fiscal 2026
U.S. federal	$	368,304
U.S. state and local	124,800
Non-U.S.
India	584,037
Japan - national	354,682
Ireland	141,637
Other	1,064,658
Total non-U.S.	2,145,014
Total income taxes paid, net of refunds	$	2,638,118

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:


	Fiscal
	2026		2025
Balance, beginning of year	$	2,409,655	$	1,904,867
Additions for tax positions related to the current year	382,980		430,312
Additions for tax positions related to prior years	115,880		501,497
Reductions for tax positions related to prior years	(263,775)		(314,740)
Statute of limitations expirations	(73,481)		(99,001)
Settlements with tax authorities	(10,389)		(12,396)
Cumulative translation adjustment	(31,042)		(884)
Balance, end of year	$	2,529,828	$	2,409,655