Cover Page
Cover Page - shares | 3 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36759 | |
Entity Registrant Name | WALGREENS BOOTS ALLIANCE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1758322 | |
Entity Address, Address Line One | 108 Wilmot Road | |
Entity Address, City or Town | Deerfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60015 | |
City Area Code | 847 | |
Local Phone Number | 315-3700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 864,041,635 | |
Entity Central Index Key | 0001618921 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, $0.01 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | WBA | |
Security Exchange Name | NASDAQ | |
3.600% Walgreens Boots Alliance, Inc. notes due 2025 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 3.600% Walgreens Boots Alliance, Inc. notes due 2025 | |
Trading Symbol | WBA25 | |
Security Exchange Name | NASDAQ | |
2.125% Walgreens Boots Alliance, Inc. notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.125% Walgreens Boots Alliance, Inc. notes due 2026 | |
Trading Symbol | WBA26 | |
Security Exchange Name | NASDAQ |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,111 | $ 516 |
Accounts receivable, net | 7,869 | 7,132 |
Inventories | 11,180 | 9,451 |
Other current assets | 924 | 974 |
Total current assets | 21,084 | 18,073 |
Non-current assets: | ||
Property, plant and equipment, net | 13,277 | 13,342 |
Operating lease right-of-use assets | 21,951 | 21,724 |
Goodwill | 15,299 | 15,268 |
Intangible assets, net | 10,706 | 10,753 |
Equity method investments (see note 5) | 6,019 | 7,338 |
Other non-current assets | 831 | 677 |
Total non-current assets | 68,083 | 69,101 |
Total assets | 89,167 | 87,174 |
Current liabilities: | ||
Short-term debt | 5,245 | 3,538 |
Trade accounts payable (see note 16) | 16,212 | 14,458 |
Operating lease obligation | 2,435 | 2,426 |
Accrued expenses and other liabilities | 6,320 | 6,539 |
Income taxes | 167 | 110 |
Total current liabilities | 30,379 | 27,070 |
Non-current liabilities: | ||
Long-term debt | 10,973 | 12,203 |
Operating lease obligation | 22,166 | 21,973 |
Deferred income taxes | 1,277 | 1,498 |
Other non-current liabilities | 3,631 | 3,294 |
Total non-current liabilities | 38,047 | 38,968 |
Commitments and contingencies (see note 10) | ||
Total Liabilities | 68,426 | 66,038 |
Redeemable noncontrolling interest | 178 | 0 |
Equity: | ||
Preferred stock $.01 par value; authorized 32 million shares, none issued | 0 | 0 |
Common stock $.01 par value; authorized 3.2 billion shares; issued 1,172,513,618 at November 30, 2020 and August 31, 2020 | 12 | 12 |
Paid-in capital | 10,876 | 10,761 |
Retained earnings | 33,495 | 34,210 |
Accumulated other comprehensive loss | (3,682) | (3,771) |
Treasury stock, at cost; 308,611,801 shares at November 30, 2020 and 306,910,099 shares at August 31, 2020 | (20,642) | (20,575) |
Total Walgreens Boots Alliance, Inc. shareholders’ equity | 20,059 | 20,637 |
Noncontrolling interests | 506 | 498 |
Total equity | 20,563 | 21,136 |
Total liabilities, redeemable noncontrolling interest and equity | $ 89,167 | $ 87,174 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Nov. 30, 2020 | Aug. 31, 2020 |
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 32,000,000 | 32,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 3,200,000,000 | 3,200,000,000 |
Common stock, issued (in shares) | 1,172,513,618 | 1,172,513,618 |
Treasury stock, at cost (in shares) | 308,611,801 | 306,910,099 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Treasury stock amount | Paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Noncontrolling interests | Noncontrolling interestsCumulative Effect, Period of Adoption, Adjustment |
Beginning Balance (in shares) at Aug. 31, 2019 | 895,387,502 | |||||||||
Beginning Balance at Aug. 31, 2019 | $ 24,152 | $ (442) | $ 12 | $ (19,057) | $ 10,639 | $ (3,897) | $ 35,815 | $ (442) | $ 641 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 842 | 845 | (3) | |||||||
Other comprehensive income (loss), net of tax | 600 | 585 | 15 | |||||||
Dividends declared | (407) | (407) | ||||||||
Treasury stock purchases (in shares) | (8,464,066) | |||||||||
Treasury stock purchases | (473) | (473) | ||||||||
Employee stock purchase and option plans (in shares) | 1,166,309 | |||||||||
Employee stock purchase and option plans | 14 | 35 | (20) | |||||||
Stock-based compensation | 28 | 28 | ||||||||
Ending Balance (in shares) at Nov. 30, 2019 | 888,089,754 | |||||||||
Ending Balance at Nov. 30, 2019 | 24,314 | $ 12 | (19,496) | 10,648 | (3,313) | 35,810 | 653 | |||
Beginning Balance (in shares) at Aug. 31, 2020 | 865,603,519 | |||||||||
Beginning Balance at Aug. 31, 2020 | 21,136 | $ (5) | $ 12 | (20,575) | 10,761 | (3,771) | 34,210 | $ (3) | 498 | $ (3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (299) | (308) | 9 | |||||||
Other comprehensive income (loss), net of tax | 90 | 88 | 2 | |||||||
Dividends declared | (405) | (405) | ||||||||
Treasury stock purchases (in shares) | (3,000,000) | |||||||||
Treasury stock purchases | (110) | (110) | ||||||||
Employee stock purchase and option plans (in shares) | 1,298,298 | |||||||||
Employee stock purchase and option plans | 4 | 43 | (39) | |||||||
Stock-based compensation | 36 | 36 | ||||||||
Business combination | 117 | 117 | ||||||||
Other | 1 | 1 | ||||||||
Ending Balance (in shares) at Nov. 30, 2020 | 863,901,817 | |||||||||
Ending Balance at Nov. 30, 2020 | $ 20,563 | $ 12 | $ (20,642) | $ 10,876 | $ (3,682) | $ 33,495 | $ 506 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 36,307 | $ 34,339 |
Cost of sales | 29,168 | 27,077 |
Gross profit | 7,139 | 7,263 |
Selling, general and administrative expenses | 6,207 | 6,262 |
Equity earnings (loss) in AmerisourceBergen | (1,373) | 13 |
Operating income (loss) | (440) | 1,013 |
Other income (expense) | 60 | 35 |
Earnings (loss) before interest and income tax provision | (380) | 1,048 |
Interest expense, net | 140 | 166 |
Earnings (loss) before income tax provision | (520) | 882 |
Income tax provision (benefit) | (199) | 32 |
Post tax earnings (loss) from other equity method investments | 23 | (9) |
Net earnings (loss) | (299) | 842 |
Net earnings (loss) attributable to noncontrolling interests | 9 | (3) |
Net earnings (loss) attributable to Walgreens Boots Alliance, Inc. | $ (308) | $ 845 |
Net earnings (loss) per common share: | ||
Basic (in dollars per share) | $ (0.36) | $ 0.95 |
Diluted (in dollars per share) | $ (0.36) | $ 0.95 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 865.3 | 891.4 |
Diluted (in shares) | 865.3 | 892.6 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Comprehensive income: | ||
Net earnings (loss) | $ (299) | $ 842 |
Other comprehensive income (loss), net of tax: | ||
Pension/postretirement obligations | 11 | (7) |
Unrealized gain (loss) on cash flow hedges | 4 | 0 |
Net investment hedges | (7) | (42) |
Share of other comprehensive income (loss) of equity method investments | 5 | (8) |
Currency translation adjustments | 80 | 657 |
Total other comprehensive income | 94 | 600 |
Total comprehensive income (loss) | (206) | 1,442 |
Comprehensive income attributable to noncontrolling interests | 14 | 12 |
Comprehensive income (loss) attributable to Walgreens Boots Alliance, Inc. | $ (220) | $ 1,430 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (299) | $ 842 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 475 | 477 |
Deferred income taxes | (348) | (62) |
Stock compensation expense | 36 | 28 |
Equity (earnings) loss from equity method investments | 1,350 | (4) |
Other | (71) | 28 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (259) | (116) |
Inventories | (1,225) | (1,099) |
Other current assets | 36 | (5) |
Trade accounts payable | 1,398 | 924 |
Accrued expenses and other liabilities | (105) | 45 |
Income taxes | 132 | 2 |
Other non-current assets and liabilities | 74 | 1 |
Net cash provided by operating activities | 1,195 | 1,061 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (431) | (387) |
Proceeds from sale-leaseback transactions | 231 | 147 |
Proceeds from sale of other assets | 29 | 22 |
Business, investment and asset acquisitions, net of cash acquired | (77) | (180) |
Other | (10) | (4) |
Net cash used for investing activities | (259) | (402) |
Cash flows from financing activities: | ||
Net change in short-term debt with maturities of 3 months or less | (347) | (392) |
Proceeds from debt | 3,310 | 5,072 |
Payments of debt | (2,807) | (4,702) |
Stock purchases | (110) | (473) |
Proceeds related to employee stock plans | 4 | 14 |
Cash dividends paid | (405) | (410) |
Other | 4 | 24 |
Net cash used for financing activities | (352) | (866) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 10 | 1 |
Changes in cash, cash equivalents and restricted cash: | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 594 | (206) |
Cash, cash equivalents and restricted cash at beginning of period | 746 | 1,207 |
Cash, cash equivalents and restricted cash at end of period | $ 1,339 | $ 1,000 |
Accounting policies
Accounting policies | 3 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting policies | Accounting policies Basis of presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the “Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. The Company uses the equity method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The coronavirus COVID-19 pandemic (“COVID-19”) has severely impacted the economies of the U.S., the UK and other countries around the world. The impact of COVID-19 on the Company’s businesses, financial position, results of operations and cash flows for the three months ended November 30, 2020, as well as information regarding certain expected or potential impacts of COVID-19 on the Company, is discussed throughout this Quarterly Report on Form 10-Q. The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company bases its estimates on the information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances including estimates of the impact of COVID-19. The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors discussed throughout this Quarterly Report on Form 10-Q including, but not limited to, the severity and duration of COVID-19, the extent to which it will impact our customers, team members, suppliers, vendors, business partners and distribution channels. The Company assessed certain accounting matters that require consideration of estimates and assumptions in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of November 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill, intangible and other long-lived assets including operating lease right-of-use assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. In the opinion of management, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments necessary to present a fair statement of the results for such interim periods. The impact of COVID-19, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payer and customer relationships and terms, strategic transactions including acquisitions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. |
Acquisitions
Acquisitions | 3 Months Ended |
Nov. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Pharmaceutical wholesale business in Germany On November 1, 2020, the Company and McKesson Corporation closed a transaction to form a combined pharmaceutical wholesale business in Germany, as part of a strategic alliance. The Company owns a 70% controlling equity interest in the combined business which is consolidated by the Company and reported within the Pharmaceutical Wholesale segment in its financial statements. The Company accounted for this acquisition as a business combination involving noncash purchase consideration of $291 million consisting of the issuance of an equity interest in the combined business. As of November 30, 2020 the Company had not completed the analysis to determine the fair value of the consideration paid or to assign fair values to all tangible and intangible assets acquired, and therefore the purchase price allocation has not been completed. The preliminary purchase price allocation will be subject to further refinement and may result in material changes. These changes will primarily relate to finalization of the fair value of the purchase consideration consisting of the issuance of an equity interest in the combined business and the allocation of purchase consideration and the fair value assigned to all tangible and intangible assets acquired and identified. The following table summarizes the consideration for the acquisition and the preliminary amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase Price Allocation: Total Consideration $ 313 Identifiable assets acquired and liabilities assumed Accounts receivable, cash and other assets 563 Inventories 470 Property, plant and equipment 125 Short term debt (295) Trade accounts payable, accrued expenses and other liabilities (356) Other noncurrent liabilities (197) Total identifiable net assets 310 Goodwill $ 3 In accordance with ASC Topic 810, Consolidation, the noncontrolling interest was recognized based on its proportionate interest in the identifiable net assets of the combined business. The difference between the carrying amount of the non-controlling interest and the fair value of the consideration in the business combination is recognized as additional paid in capital. Considering the contractual terms related to the noncontrolling interest, it is classified as redeemable noncontrolling interest in the consolidated condensed balance sheets. See Note 18, Supplemental information for more details on redeemable noncontrolling interest. Pro forma net earnings and sales of the Company, assuming the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported. The acquisition did not have a material impact on net earnings or sales of the Company for the quarter ended November 30, 2020. Other acquisitions The Company acquired certain prescription files and related pharmacy inventory primarily in Retail Pharmacy USA for the aggregate purchase price of $38 million and $80 million during the three months ended November 30, 2020 and 2019, respectively. |
Exit and disposal activities
Exit and disposal activities | 3 Months Ended |
Nov. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Exit and disposal activities | Exit and disposal activities Transformational Cost Management Program On December 20, 2018, the Company announced a transformational cost management program that is currently expected to deliver in excess of $2.0 billion of annual cost savings by fiscal 2022 (the “Transformational Cost Management Program”). The Transformational Cost Management Program, which is multi-faceted and includes divisional optimization initiatives, global smart spending, global smart organization and the transformation of the Company’s information technology (IT) capabilities, is designed to help the Company achieve increased cost efficiencies. To date, the Company has taken actions across all aspects of the Transformational Cost Management Program. The actions under the Transformational Cost Management Program focus on all reportable segments and the Company’s global functions. Divisional optimization within each of the Company’s segments includes activities such as optimization of stores including current plans to exit approximately 200 Boots stores in the United Kingdom ("UK") and approximately 250 stores in the United States ("U.S."). The Company currently estimates that the Transformational Cost Management Program will result in cumulative pre-tax charges to its GAAP financial results of approximately $2.1 billion to $2.4 billion, of which $1.8 billion to $2.1 billion are expected to be recorded as exit and disposal activities. In addition to these impacts, as a result of the actions related to store closures taken under the Transformational Cost Management Program, the Company recorded $508 million of non-cash transition adjustments to decrease retained earnings due to the adoption of the new lease accounting standard (Topic 842) that became effective on September 1, 2019. Since the inception of the Transformational Cost Management Program to November 30, 2020, the Company has recognized cumulative pre-tax charges to its financial results in accordance with GAAP of $1.2 billion, which were primarily recorded within selling, general and administrative expenses. These charges included $264 million related to lease obligations and other real estate costs, $354 million in asset impairments, $471 million in employee severance and business transition costs and $146 million of information technology transformation and other exit costs. Costs related to exit and disposal activities under the Transformational Cost Management Program for the three months ended November 30, 2020 and November 30, 2019 were as follows (in millions): Three months ended November 30, 2020 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 22 $ — $ — $ 22 Asset impairments 4 — — 4 Employee severance and business transition costs 21 28 2 51 Information technology transformation and other exit costs 10 (6) 1 6 Total pre-tax exit and disposal costs $ 58 $ 22 $ 4 $ 83 Three months ended November 30, 2019 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 1 $ — $ — $ 1 Asset impairments 8 3 — 11 Employee severance and business transition costs 34 1 5 40 Information technology transformation and other exit costs 7 4 1 12 Total pre-tax exit and disposal costs $ 49 $ 9 $ 6 $ 64 The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions): Rollforward of liabilities: Lease obligations and other real estate costs Asset Impairments Employee severance and business transition costs Information technology transformation and other exit costs Total Balance at August 31, 2020 $ 22 $ — $ 227 $ 8 $ 257 Costs 22 4 51 6 83 Payments (20) — (113) (12) (145) Other (4) (4) — 4 (4) Balance at November 30, 2020 $ 21 $ — $ 166 $ 5 $ 192 Store Optimization Program On October 24, 2017, the Company’s Board of Directors approved a plan to implement a program (the “Store Optimization Program”) to optimize store locations through the planned closure of approximately 600 stores and related assets within the Company’s Retail Pharmacy USA segment upon completion of the acquisition of certain stores and related assets from Rite Aid. The Company closed 769 stores and related assets. The actions under the Store Optimization Program commenced in March 2018 and were completed in the fourth quarter of fiscal 2020. Costs related to the Store Optimization Program for the three months ended November 30, 2019 were $3 million for Lease obligation and other real estate costs and $6 million for employee severance and other exit costs. The liabilities related to the Store Optimization Program as of November 30, 2020 and November 30, 2019 were not material. |
Leases
Leases | 3 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe Company leases certain retail stores, warehouses, distribution centers, office space, land and equipment. For leases in the U.S., the initial lease term is typically 15 to 25 years, followed by additional terms containing renewal options typically at five-year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options. The commencement date of all lease terms is the earlier of the date the Company becomes legally obligated to make rent payments or the date the Company has the right to control the property. The Company recognizes operating lease rent expense on a straight-line basis over the term of the lease. In addition to minimum fixed rentals, some leases provide for contingent rentals based upon a portion of sales. Supplemental balance sheet information related to leases were as follows (in millions): Balance Sheet supplemental information: November 30, 2020 August 31, 2020 Operating Leases: Operating lease right-of-use assets $ 21,951 $ 21,724 Operating lease obligations - current 2,435 2,426 Operating lease obligations - non-current 22,166 21,973 Total operating lease obligations $ 24,601 $ 24,399 Finance Leases: Right-of-use assets included in: Property, plant and equipment, net $ 759 $ 769 Lease obligations included in: Accrued expenses and other liabilities 32 34 Other non-current liabilities 1,009 1,020 Total finance lease obligations $ 1,041 $ 1,054 Supplemental income statement information related to leases were as follows (in millions): Three months ended November 30, Income Statement supplemental information: 2020 2019 Operating lease cost Fixed $ 827 $ 830 Variable 1 162 14 Finance lease cost Amortization $ 11 $ 9 Interest 14 14 Sublease income 20 15 Impairment of right-of-use assets 10 — Gains on sale-leaseback transactions 2 93 77 1 The three months ended November 30, 2020 includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume. 2 Recorded within selling, general and administrative expenses. Other supplemental information were as follows (in millions): Three months ended November 30, Other Supplemental Information: 2020 2019 Cash paid for amounts included in the measurement of lease obligations Operating cash flows from operating leases $ 872 $ 831 Operating cash flows from finance leases 12 11 Financing cash flows from finance leases 11 13 Total $ 895 $ 855 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 805 $ 552 Average lease term and discount rate as of November 30, 2020 and August 31, 2020 were as follows: Weighted average terms and discount rates: November 30, 2020 August 31, 2020 Weighted average remaining lease term in years: Operating leases 10.6 10.7 Finance leases 20.6 20.7 Weighted average discount rate Operating leases 4.95 % 4.95 % Finance leases 5.39 % 5.39 % The aggregate future lease payments for operating and finance leases as of November 30, 2020 were as follows (in millions): Future lease payments: Fiscal year Finance lease Operating lease 2021 (Remaining period) $ 72 $ 2,657 2022 96 3,421 2023 93 3,274 2024 93 3,126 2025 91 2,963 2026 87 2,796 Later 1,139 13,479 Total undiscounted minimum lease payments $ 1,671 $ 31,716 Less: Present value discount (630) (7,115) Lease liability $ 1,041 $ 24,601 |
Leases | LeasesThe Company leases certain retail stores, warehouses, distribution centers, office space, land and equipment. For leases in the U.S., the initial lease term is typically 15 to 25 years, followed by additional terms containing renewal options typically at five-year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options. The commencement date of all lease terms is the earlier of the date the Company becomes legally obligated to make rent payments or the date the Company has the right to control the property. The Company recognizes operating lease rent expense on a straight-line basis over the term of the lease. In addition to minimum fixed rentals, some leases provide for contingent rentals based upon a portion of sales. Supplemental balance sheet information related to leases were as follows (in millions): Balance Sheet supplemental information: November 30, 2020 August 31, 2020 Operating Leases: Operating lease right-of-use assets $ 21,951 $ 21,724 Operating lease obligations - current 2,435 2,426 Operating lease obligations - non-current 22,166 21,973 Total operating lease obligations $ 24,601 $ 24,399 Finance Leases: Right-of-use assets included in: Property, plant and equipment, net $ 759 $ 769 Lease obligations included in: Accrued expenses and other liabilities 32 34 Other non-current liabilities 1,009 1,020 Total finance lease obligations $ 1,041 $ 1,054 Supplemental income statement information related to leases were as follows (in millions): Three months ended November 30, Income Statement supplemental information: 2020 2019 Operating lease cost Fixed $ 827 $ 830 Variable 1 162 14 Finance lease cost Amortization $ 11 $ 9 Interest 14 14 Sublease income 20 15 Impairment of right-of-use assets 10 — Gains on sale-leaseback transactions 2 93 77 1 The three months ended November 30, 2020 includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume. 2 Recorded within selling, general and administrative expenses. Other supplemental information were as follows (in millions): Three months ended November 30, Other Supplemental Information: 2020 2019 Cash paid for amounts included in the measurement of lease obligations Operating cash flows from operating leases $ 872 $ 831 Operating cash flows from finance leases 12 11 Financing cash flows from finance leases 11 13 Total $ 895 $ 855 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 805 $ 552 Average lease term and discount rate as of November 30, 2020 and August 31, 2020 were as follows: Weighted average terms and discount rates: November 30, 2020 August 31, 2020 Weighted average remaining lease term in years: Operating leases 10.6 10.7 Finance leases 20.6 20.7 Weighted average discount rate Operating leases 4.95 % 4.95 % Finance leases 5.39 % 5.39 % The aggregate future lease payments for operating and finance leases as of November 30, 2020 were as follows (in millions): Future lease payments: Fiscal year Finance lease Operating lease 2021 (Remaining period) $ 72 $ 2,657 2022 96 3,421 2023 93 3,274 2024 93 3,126 2025 91 2,963 2026 87 2,796 Later 1,139 13,479 Total undiscounted minimum lease payments $ 1,671 $ 31,716 Less: Present value discount (630) (7,115) Lease liability $ 1,041 $ 24,601 |
Equity method investments
Equity method investments | 3 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | Equity method investments Equity method investments as of November 30, 2020 and August 31, 2020, were as follows (in millions, except percentages): November 30, 2020 August 31, 2020 Carrying value Ownership percentage Carrying value Ownership percentage AmerisourceBergen $ 4,030 28% $ 5,446 28% Others 1,989 8% - 50% 1,892 8% - 50% Total $ 6,019 $ 7,338 AmerisourceBergen Corporation (“AmerisourceBergen”) investment As of November 30, 2020 and August 31, 2020, the Company owned 56,854,867 AmerisourceBergen common shares, representing approximately 28% of its outstanding common stock, based on the most recent share count publicly reported by AmerisourceBergen. The Company accounts for its equity investment in AmerisourceBergen using the equity method of accounting, with the net earnings (loss) attributable to the Company’s investment being classified within the operating income of its Pharmaceutical Wholesale segment. Due to the timing and availability of financial information of AmerisourceBergen, the Company accounts for this equity method investment on a financial reporting lag of two months. Equity earnings (loss) from AmerisourceBergen are reported as a separate line in the Consolidated Condensed Statements of Earnings. The Company recognized equity losses in AmerisourceBergen of $1,373 million during the three months ended November 30, 2020. These equity losses are primarily due to AmerisourceBergen recognition of $5.6 billion, net of tax, charges related to its ongoing opioid litigation in its financial statements for the three months period ended September 30, 2020. The Level 1 fair market value of the Company’s equity investment in AmerisourceBergen common stock at November 30, 2020 was $5.9 billion. As of November 30, 2020, the Company’s investment in AmerisourceBergen carrying value exceeded its proportionate share of the net assets of AmerisourceBergen by $4.3 billion. This premium of $4.3 billion was recognized as part of the carrying value in the Company’s equity investment in AmerisourceBergen. The difference was primarily related to goodwill and the fair value of AmerisourceBergen intangible assets. Other investments The Company’s other equity method investments include its investments in Guangzhou Pharmaceuticals Corporation (“Guangzhou Pharmaceuticals”) and Nanjing Pharmaceutical Company Limited, the Company’s pharmaceutical wholesale investments in China; its investment in Sinopharm Medicine Holding Guoda Drugstores Co., Ltd., the Company's retail pharmacy investment in China, the Company's investment in VillageMD, PharMerica Corporation, Shields Health Solutions and BioScrip (resulting from its merger with Option Care Inc.) in the U.S.. The Company reported $23 million of post-tax equity earnings and $9 million of post-tax equity losses from other equity method investments, including equity method investments classified as operating, for the three months ended November 30, 2020 and November 30, 2019, respectively. Summarized financial information Summarized financial information for the Company’s equity method investments in aggregate is as follows: Statements of earnings (loss) (in millions) Three months ended November 30, 2020 2019 Sales $ 56,548 $ 51,581 Gross profit 2,472 7,733 Net earnings (loss) (4,798) 1,528 Share of earnings (loss) from equity method investments (1,350) 4 |
Goodwill and other intangible a
Goodwill and other intangible assets | 3 Months Ended |
Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill and indefinite-lived intangible assets are evaluated for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value. Based on the analysis completed during fiscal 2020, as of June 1, 2020 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 4% to approximately 239% excluding Boots reporting unit for which the excess of fair value over carrying amount was nominal due to an impairment charge recognized during the three months ended May 31, 2020. Other international reporting unit's fair value was in excess of its carrying value by approximately 4%. The fair values of the indefinite-lived tradename intangibles within the Boots reporting unit exceeded their carrying value amounts ranging from approximately 4% to approximately 31%, except for certain Boots tradename assets impaired during the three months ended May 31, 2020 and pharmacy licenses impaired during the year ended August 31, 2019. As of November 30, 2020, the carrying values of goodwill were $1.1 billion and $0.6 billion for Boots reporting unit and Other international reporting unit, respectively. As of November 30, 2020, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $7.3 billion. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions including the business and financial performance of the Company’s reporting units, as well as how such performance may be impacted by COVID-19. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions, including the impact of COVID-19, could have a significant impact on either the fair value of the reporting units and indefinite-lived intangibles, the amount of any goodwill and indefinite-lived intangible impairment charges, or both. These estimates can be affected by a number of factors including, but not limited to, the impact of COVID-19, its severity, duration and its impact on global economies, general economic conditions as well as our profitability. The Company will continue to monitor these potential impacts, including the impact of COVID-19 and economic, industry and market trends and the impact these may have on Boots and Other international reporting units. Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions): Goodwill rollforward: Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. August 31, 2020 $ 10,553 $ 1,593 $ 3,122 $ 15,268 Acquisitions 1 — 3 4 Currency translation adjustments — 18 9 27 November 30, 2020 $ 10,554 $ 1,612 $ 3,133 $ 15,299 The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): Intangible assets November 30, 2020 August 31, 2020 Gross amortizable intangible assets Customer relationships and loyalty card holders 1 $ 4,409 $ 4,389 Trade names and trademarks 419 410 Purchasing and payer contracts 337 337 Non-compete agreements and others 61 61 Total gross amortizable intangible assets 5,226 5,197 Accumulated amortization Customer relationships and loyalty card holders 1 $ 1,603 $ 1,511 Trade names and trademarks 242 228 Purchasing and payer contracts 101 95 Non-compete agreements and others 26 26 Total accumulated amortization 1,972 1,860 Total amortizable intangible assets, net $ 3,254 $ 3,337 Indefinite-lived intangible assets Trade names and trademarks $ 5,410 $ 5,388 Pharmacy licenses 2,042 2,028 Total indefinite-lived intangible assets $ 7,452 $ 7,416 Total intangible assets, net $ 10,706 $ 10,753 1 Includes purchased prescription files. Amortization expense for intangible assets was $115 million and $118 million for the three months ended November 30, 2020 and November 30, 2019, respectively. Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at November 30, 2020 is as follows (in millions): 2022 2023 2024 2025 2026 Estimated annual amortization expense $ 434 $ 400 $ 381 $ 348 $ 328 |
Debt
Debt | 3 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt is translated using the spot rates as of the balance sheet date. Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted): November 30, 2020 August 31, 2020 Short-term debt Commercial paper $ 1,662 $ 1,517 Credit facilities 1,617 1,071 £700 million note issuance 1 2.875% unsecured Pound sterling notes due 2020 — 533 $8 billion note issuance 1 3.300% unsecured notes due 2021 1,249 — Other 2 718 418 Total short-term debt $ 5,245 $ 3,538 Long-term debt $1.5 billion note issuance 1 3.200% unsecured notes due 2030 $ 497 $ 497 4.100% unsecured notes due 2050 990 990 $6 billion note issuance 1 3.450% unsecured notes due 2026 1,892 1,891 4.650% unsecured notes due 2046 591 591 $8 billion note issuance 1 3.300% unsecured notes due 2021 — 1,248 3.800% unsecured notes due 2024 1,994 1,993 4.500% unsecured notes due 2034 496 496 4.800% unsecured notes due 2044 1,493 1,493 £700 million note issuance 1 3.600% unsecured Pound sterling notes due 2025 400 398 €750 million note issuance 1 2.125% unsecured Euro notes due 2026 896 891 $4 billion note issuance 3 3.100% unsecured notes due 2022 1,198 1,198 4.400% unsecured notes due 2042 493 493 Other 4 34 24 Total long-term debt, less current portion $ 10,973 $ 12,203 1 Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding. On October 20, 2020, the Company redeemed in full the £400 million aggregate principal amount outstanding of its 2.875% notes due 2020 issued by the Company on November 20, 2014. 2 Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 3 Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, the Company fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of the Company and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company. 4 Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities. $1.5 Billion Note Issuance On April 15, 2020, the Company issued in an underwritten public offering $0.5 billion of 3.20% notes due 2030 and $1.0 billion of 4.10% notes due 2050. Total issuance costs relating to the notes, including underwriting discounts and offering expenses were $13.3 million. Credit facilities December 23, 2020 Revolving Credit Agreement On December 23, 2020, the Company entered into a revolving credit agreement (the “2020 Revolving Credit Agreement”) with the lenders from time to time party thereto. The 2020 Revolving Credit Agreement includes a (i) a $1.25 billion senior unsecured 364-day revolving credit facility (the “364-Day Facility”) and (ii) a $2.25 billion senior unsecured 18-month revolving credit facility, with a swing line subfacility commitment amount of $350 million. The 364-Day Facility’s termination date is the earlier of (i) 364 days from December 23, 2020, the effective date (subject to the extension thereof pursuant to the 2020 Revolving Credit Agreement) and (ii) the date of termination in whole of the aggregate amount of the revolving commitments under the 364-Day Facility pursuant to the 2020 Revolving Credit Agreement. The 18-Month Facility’s termination date is the earlier of (i) 18 months from the effective date (subject to the extension thereof pursuant to the 2020 Revolving Credit Agreement) and (ii) the date of termination in whole of the aggregate amount of the revolving commitments under the 18-Month Facility pursuant to the 2020 Revolving Credit Agreement. April 7, 2020 Revolving Credit Agreement On April 7, 2020, the Company and with WBA Financial Services Limited, a private limited company incorporated under the laws of England and Wales (“WBAFSL”), as co-borrowers, entered into a $500 million revolving credit agreement (the “April 7, 2020 Revolving Credit Agreement”) with the lenders from time to time party thereto. The April 7, 2020 Revolving Credit Agreement is a senior unsecured revolving credit facility, with a facility termination date of the earlier of (a) 364-days from April 7, 2020 and (b) the date of termination in whole of the aggregate amount of the commitments pursuant to the April 7, 2020 Revolving Credit Agreement . The Company and WBAFSL are co-borrowers under the April 7, 2020 Revolving Credit Agreement. Pursuant to the terms of the April 7, 2020 Revolving Credit Agreement, the Company provides a guarantee of any obligations of WBAFSL under the April 7, 2020 Revolving Credit Agreement. As of November 30, 2020, there were no borrowings outstanding under the April 7, 2020 Revolving Credit Agreement. The April 7, 2020 Revolving Credit Agreement was terminated in accordance with its terms and conditions on December 23, 2020. The April 7, 2020 Revolving Credit Agreement was terminated concurrently with the execution of the 2020 Revolving Credit Agreement described above. April 2020 Revolving Bilateral and Club Credit Agreements The Company entered into a $750 million revolving credit agreement on April 1, 2020 (the “April 2020 Revolving Bilateral Credit Agreement”) and a $1.325 billion revolving credit agreement on April 2, 2020 (the “April 2020 Revolving Club Credit Agreement” and together with the April 2020 Revolving Bilateral Credit Agreement, the “Other April 2020 Revolving Credit Agreements”) with the lenders from time to time party thereto. Each of the Other April 2020 Revolving Credit Agreements is a senior unsecured revolving credit facility, with a facility termination date of the earlier of (a) March 31, 2021 (which date shall be shortened pursuant to the terms of the applicable Other April 2020 Revolving Credit Agreement if the Company does not extend the maturity date of certain of its existing credit agreements or enter into new bank or bond financings with a certain maturity date and above an aggregate principal amount as described in the applicable Other April 2020 Revolving Credit Agreement ) and (b) the date of termination in whole of the aggregate amount of the commitments pursuant to the applicable Other April 2020 Revolving Credit Agreement. As of November 30, 2020, there were no borrowings outstanding under the Other April 2020 Revolving Credit Agreements. The other April 2020 Revolving Credit Agreements were terminated in accordance with their terms and conditions as of December 23, 2020. The other April 2020 Revolving Credit Agreements were terminated concurrently with the execution of the 2020 Revolving Credit Agreement described above. August 2019 Revolving Credit Agreements On August 30, 2019, the Company entered into three $500 million revolving credit agreements (together, the “August 2019 Revolving Credit Agreements” and each individually, an “August 2019 Revolving Credit Agreement”) with the lenders from time to time party thereto. Each of the August 2019 Revolving Credit Agreements are senior unsecured revolving credit facilities, with facility termination dates of the earlier of (a) 18 months following August 30, 2019, subject to extension thereof pursuant to the applicable August 2019 Revolving Credit Agreement, and (b) the date of termination in whole of the aggregate amount of the commitments pursuant to the applicable August 2019 Revolving Credit Agreement. As of November 30, 2020, there were no borrowings outstanding under the August 2019 Revolving Credit Agreements. The August 2019 Revolving Credit Agreements were terminated in accordance with their terms and conditions as of December 23, 2020. The August 2019 Revolving Credit Agreements were terminated concurrently with the execution of the 2020 Revolving Credit Agreement described above. January 2019 364-Day Revolving Credit Agreement On January 18, 2019, the Company entered into a $2.0 billion 364-day revolving credit agreement (as extended, the “January 2019 364-Day Revolving Credit Agreement”) with the lenders from time to time party thereto. The January 2019 364-Day Revolving Credit Agreement is a senior unsecured 364-day revolving credit facility, with an original facility termination date of 364 days following January 31, 2019, subject to extension. On December 18, 2019, the Company entered into an Extension Agreement (the “Extension Agreement”) relating to the January 2019 364-Day Revolving Credit Agreement with the lenders party thereto and Mizuho, as administrative agent. The Extension Agreement extended the Maturity Date (as defined in the January 2019 364-Day Revolving Credit Agreement) for an additional period of 364 days to January 28, 2021. Such extension became effective on January 30, 2020. As of November 30, 2020, there were no borrowings outstanding under the January 364-Day Revolving Credit Agreement. The January 2019 364-Day Revolving Credit Agreement was partially terminated in accordance with its terms and conditions, reducing the amount available to $0.5 billion as of December 23, 2020, concurrently with the execution of the 2020 Revolving Credit Agreement described above. A&R December 2018 Credit Agreement On December 5, 2018, the Company entered into a $1.0 billion term loan credit agreement with the lenders from time to time party thereto and, on August 9, 2019, the Company entered into an amendment to such credit agreement (such credit agreement as so amended, the “December 2018 Credit Agreement”) to permit the Company to borrow, repay and reborrow amounts borrowed thereunder prior to the maturity date. On April 2, 2020, the Company amended and restated the December 2018 Credit Agreement (such credit agreement as so amended and restated, the “A&R December 2018 Credit Agreement”). The A &R December 2018 Credit Agreement governs a $2.0 billion senior unsecured revolving credit facility, consisting of the initial $1.0 billion senior unsecured revolving facility (the "Initial Commitments") previously governed by the December 2018 Credit Agreement and a new $1.0 billion senior unsecured revolving credit facility (the "New Commitments"). The facility termination date is the earlier of (a) January 29, 2021 (which date shall be extended to February 26, 2021 or July 31, 2021 pursuant to the terms of the A &R December 2018 Credit Agreement if the Company extends the maturity date of certain of its existing credit agreements or enters into new bank or bond financings with a certain maturity date and above an aggregate principal amount as described in the A &R December 2018 Credit Agreement ) and (b) the date of termination in whole of the aggregate amount of the commitments pursuant to the A &R December 2018 Credit Agreement. As of November 30, 2020, there were $0.7 billion borrowings outstanding under the A&R December 2018 Credit Agreement. Concurrently with the execution of the 2020 Revolving Credit Agreement described above, the A&R December 2018 Credit Agreement was partially terminated in accordance with its terms and conditions, by the cancellation of $1 billion of New Commitments, thereby reducing the amount available to $1 billion of Initial Commitments thereunder as of December 23, 2020. The A&R was also amended to set the final maturity date under the agreement at January 29, 2021. Amended November 2018 Credit Agreement On November 30, 2018, the Company entered into a $1.0 billion credit agreement, consisting of a $500 million senior unsecured revolving credit facility and a $500 million senior unsecured term loan facility, with the lenders from time to time party thereto, on March 25, 2019, the Company entered into an amendment to such credit agreement (such credit agreement as so amended, the “November 2018 Credit Agreement”) reflecting certain changes to the borrowing notice provisions thereto. On April 2, 2020, the Company entered into a second amendment to the November 2018 Credit Agreement (such credit agreement as so further amended, the “Amended November 2018 Credit Agreement”) which amendment became effective as of May 29, 2020. As of May 29, 2020, the $500 million revolving credit facility portion of the November 2018 Credit Agreement was converted into a term loan facility, such that the Amended November 2018 Credit Agreement consists of a $1.0 billion senior unsecured term loan facility. The facility termination date is the earlier of (a) May 29, 2021 and (b) the date of acceleration of all loans under the Amended November 2018 Credit Agreement pursuant to its terms. As of November 30, 2020, there were $0.9 billion of borrowings outstanding under the Amended November 2018 Credit Agreement. August 2018 Revolving Credit Agreement On August 29, 2018, the Company entered into a revolving credit agreement (the “August 2018 Revolving Credit Agreement”) with the lenders and letter of credit issuers from time to time party thereto. The August 2018 Revolving Credit Agreement is an unsecured revolving credit facility with aggregate commitment in the amount of $3.5 billion, with a letter of credit subfacility commitment amount of $500 million. The facility termination date is the earlier of (a) August 29, 2023, subject to extension thereof pursuant to the August 2018 Revolving Credit Agreement, and (b) the date of termination in whole of the aggregate amount of the revolving commitments pursuant to the August 2018 Revolving Credit Agreement. As of November 30, 2020, there were no borrowings outstanding under the August 2018 Revolving Credit Agreement. Debt covenants Each of the Company’s credit facilities described above contain a covenant to maintain, as of the last day of each fiscal quarter, a ratio of consolidated debt to total capitalization not to exceed 0.60:1.00, subject to increase in certain circumstances set forth in the applicable credit agreement. The credit facilities also contain various other customary covenants. Commercial paper The Company periodically borrows under its commercial paper program and may borrow under it in future periods. The Company had average daily U.S. commercial paper outstanding of $1.6 billion and $2.9 billion at a weighted average interest rate of 0.63% and 2.55% for the three months ended November 30, 2020 and 2019, respectively. A subsidiary of the Company had average daily commercial paper outstanding, which was issued under the Joint HM Treasury and Bank of England's COVID Corporate Financing Facility commercial paper program, of £300 million or approximately $401 million at a weighted average interest rate of 0.43% for the three months ended November 30, 2020. The subsidiary's repayment obligations are guaranteed by the Company. Interest Interest paid by the Company was $234 million and $245 million for the three months ended November 30, 2020 and 2019, respectively. |
Financial instruments
Financial instruments | 3 Months Ended |
Nov. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial instruments | Financial instruments The Company uses derivative instruments to manage its exposure to interest rate and foreign currency exchange risks. The Company has non-U.S. dollar denominated net investments and uses foreign currency denominated financial instruments, specifically foreign currency derivatives and foreign currency denominated debt, to hedge its foreign currency risk. The notional amounts and fair value of derivative instruments outstanding were as follows (in millions): November 30, 2020 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges: Cross currency interest rate swaps $ 674 $ 9 Other non-current assets Foreign currency forwards 100 1 Other current assets Foreign currency forwards 46 1 Other non-current liabilities Cross currency interest rate swaps 264 8 Other non-current liabilities Interest rate swaps 1,000 6 Other non-current liabilities Foreign currency forwards 781 11 Other current liabilities Cross currency interest rate swaps 157 7 Other current liabilities Derivatives not designated as hedges: Foreign currency forwards 1,729 15 Other current assets Foreign currency forwards 2,677 50 Other current liabilities Total return swap 219 1 Other current liabilities August 31, 2020 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges: Cross currency interest rate swaps $ 722 $ 16 Other non-current assets Foreign currency forwards 100 1 Other current assets Cross currency interest rate swaps 50 — Other current assets Foreign currency forwards 49 1 Other non-current liabilities Cross currency interest rate swaps 318 13 Other non-current liabilities Interest rate swaps 1,000 10 Other non-current liabilities Foreign currency forwards 671 23 Other current liabilities Cross currency interest rate swaps 103 3 Other current liabilities Derivatives not designated as hedges: Foreign currency forwards 1,930 19 Other current assets Foreign currency forwards 2,934 56 Other current liabilities Total return swap 205 1 Other current liabilities Net investment hedges The Company uses cross currency interest rate swaps and foreign currency forward contracts to hedge net investments in subsidiaries with non-U.S. dollar functional currencies. For qualifying net investment hedges, changes in the fair value of the derivatives are recorded in the currency translation adjustment within accumulated other comprehensive income (loss). Cash flow hedges The Company uses interest rate swaps to hedge the variability in forecasted cash flows of certain floating-rate debt. For qualifying cash flow hedges, changes in the fair value of the derivatives are recorded in accumulated other comprehensive income (loss), and released to the Consolidated Statements of Earnings when the hedged cash flows affect earnings. Derivatives not designated as hedges The Company enters into derivative transactions that are not designated as accounting hedges. These derivative instruments are economic hedges of foreign currency risks. The Company also utilizes total return swaps to economically hedge variability in compensation charges related to certain deferred compensation obligations. The income (expenses) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2020 2019 Foreign currency forwards Selling, general and administrative expenses $ (29) $ (74) Total return swap Selling, general and administrative expenses 13 — Foreign currency forwards Other income (expense) (9) 11 Derivatives credit risk Counterparties to derivative financial instruments expose the Company to credit-related losses in the event of counterparty nonperformance, and the Company regularly monitors the credit worthiness of each counterparty. Derivatives offsetting The Company does not offset the fair value amounts of derivative instruments subject to master netting agreements in the Consolidated Condensed Balance Sheets. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements The Company measures certain assets and liabilities in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, which defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In addition, it establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable inputs other than quoted prices in active markets. Level 3 - Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Assets and liabilities measured at fair value on a recurring basis were as follows (in millions): November 30, 2020 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 309 $ 309 $ — $ — Investments in equity securities 2 13 13 — — Investments in debt securities 3 20 — — 20 Foreign currency forwards 4 16 — 16 — Cross currency interest rate swaps 5 9 — 9 — Warrants 3 — 3 — Liabilities : Foreign currency forwards 4 62 — 62 — Cross currency interest rate swaps 5 15 — 15 — Interest rate swaps 5 6 — 6 — Total return swap 1 — 1 — August 31, 2020 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 6 $ 6 $ — $ — Investments in equity securities 2 1 1 — — Foreign currency forwards 4 20 — 20 — Cross currency interest rate swaps 5 16 — 16 — Liabilities : Foreign currency forwards 4 80 — 80 — Cross currency interest rate swaps 5 16 — 16 — Interest rate swaps 5 10 — 10 — Total return swap 1 — 1 — 1 Money market funds are valued at the closing price reported by the fund sponsor. 2 Fair values of quoted investments are based on current bid prices as of November 30, 2020 and August 31, 2020. 3 Level 3 debt securities are valued using standard valuation techniques based on income and market approach. 4 The fair value of forward currency contracts is estimated by discounting the difference between the contractual forward price and the current available forward price for the residual maturity of the contract using observable market rates. See Note 8, Financial instruments, for additional information. 5 The fair value of cross currency interest rate swaps and interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 8, Financial instruments, for additional information. There were no transfers between Levels for the three months ended November 30, 2020. The carrying value of the Company's commercial paper and credit facilities approximated their respective fair values due to their short-term nature. The Company reports its debt instruments under the guidance of ASC Topic 825, Financial Instruments, which requires disclosure of the fair value of the Company’s debt in the footnotes to the Consolidated Condensed Financial Statements. As of November 30, 2020, the carrying amounts and estimated fair values of long term notes outstanding including the current portion were $12.2 billion and $13.4 billion, respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the November 30, 2020 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of November 30, 2020. See Note 7, Debt, for further information. The carrying values of accounts receivable and trade accounts payable approximated their respective fair values due to their short-term nature. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies The Company is involved in legal proceedings, including litigation, arbitration and other claims, and investigations, inspections, subpoenas, audits, claims, inquiries and similar actions by pharmacy, healthcare, tax and other governmental authorities, arising in the normal course of the Company’s business, including the matters described below. Legal proceedings, in general, and securities, class action and multi-district litigation, in particular, can be expensive and disruptive. Some of these suits may purport or may be determined to be class actions and/or involve parties seeking large and/or indeterminate amounts, including punitive or exemplary damages, and may remain unresolved for several years. From time to time, the Company is also involved in legal proceedings as a plaintiff involving antitrust, tax, contract, intellectual property and other matters. Gain contingencies, if any, are recognized when they are realized. Like other companies in the retail pharmacy and pharmaceutical wholesale industries, the Company is subject to extensive regulation by national, state and local government agencies in the U.S. and other countries in which it operates. There continues to be a heightened level of review and/or audit by regulatory authorities of, and increased litigation regarding, the Company’s and the rest of the health care and related industry’s business, compliance and reporting practices. As a result, the Company regularly is the subject of government actions of the types described above. The Company also may be named from time to time in qui tam actions initiated by private third parties. In such actions, the private parties purport to act on behalf of federal or state governments, allege that false claims have been submitted for payment by the government and may receive an award if their claims are successful. After a private party has filed a qui tam action, the government must investigate the private party's claim and determine whether to intervene in and take control over the litigation. These actions may remain under seal while the government makes this determination. If the government declines to intervene, the private party may nonetheless continue to pursue the litigation on his or her own purporting to act on behalf of the government. The results of legal proceedings, including government investigations, are often uncertain and difficult to predict, and the costs incurred in these matters can be substantial, regardless of the outcome. With respect to litigation and other legal proceedings where the Company has determined that a material loss is reasonably possible, the Company is unable to estimate the amount or range of reasonably possible loss due to the inherent difficulty of predicting the outcome of and uncertainties regarding such litigation and legal proceedings. The Company believes that its defenses and assertions in pending legal proceedings have merit and does not believe that any of these pending matters, after consideration of applicable reserves and rights to indemnification, will have a material adverse effect on the Company’s consolidated financial position. However, substantial unanticipated verdicts, fines and rulings do sometimes occur. As a result, the Company could from time to time incur judgments, enter into settlements or revise its expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on its results of operations in the period in which the amounts are accrued and/or its cash flows in the period in which the amounts are paid. In addition, as a result of governmental investigations or proceedings, the Company may be subject to damages, civil or criminal fines or penalties, or other sanctions, including the possible suspension or loss of licensure and/or suspension or exclusion from participation in government programs. On December 29, 2014, a putative shareholder filed a derivative action in federal court in the Northern District of Illinois against certain current and former directors and officers of Walgreen Co. and Walgreen Co., as a nominal defendant, arising out of certain public statements the Company made regarding its former fiscal 2016 goals. ( Cutler v. Wasson et al. , No. 1:14-cv-10408 (N.D. Ill.)) The action asserts claims for breach of fiduciary duty, waste and unjust enrichment. On May 18, 2015, the case was stayed in light of a securities class action that was filed on April 10, 2015, described below. On November 3, 2016, the Court entered a stipulation and order extending the stay until the resolution of the securities class action. On April 10, 2015, a putative shareholder filed a securities class action in federal court in the Northern District of Illinois against Walgreen Co. and certain former officers of Walgreen Co. ( Washtenaw County Employees’ Retirement System v. Walgreen Co. et al. , No. 1:15-cv-3187 (N.D. Ill.)) The action asserts claims for violation of the federal securities laws arising out of certain public statements the Company made regarding its former fiscal 2016 goals. A motion to dismiss a consolidated class action complaint filed on August 17, 2015 was granted in part and denied in part on September 30, 2016. The court granted plaintiff’s motion for class certification on March 29, 2018 and plaintiff filed a first amended complaint on December 19, 2018. A motion to dismiss the first amended complaint was granted in part and denied in part on September 23, 2019. Fact discovery has concluded and expert discovery is in progress. On December 11, 2017, purported Rite Aid shareholders filed an amended complaint in a putative class action lawsuit in the U.S. District Court for the Middle District of Pennsylvania (the “M.D. Pa. action”) arising out of transactions contemplated by the merger agreement between the Company and Rite Aid. The amended complaint alleged that the Company and certain of its officers made false or misleading statements regarding the transactions. The Court denied the Company’s motion to dismiss the amended complaint on April 15, 2019. The Company filed an answer and affirmative defenses, discovery commenced, and the Court granted plaintiffs' motion for class certification. In October and December 2020, two separate purported Rite Aid Shareholders filed lawsuits in the same court as the M.D. Pa. action opting out of the class in the M.D. Pa. action making nearly identical allegations as those in the M.D. Pa. action. In June 2019, a Fred’s, Inc. shareholder filed a nearly identical lawsuit to the M.D. Pa. action in the U.S. District Court for the Western District of Tennessee, except naming Fred’s, Inc. and one of its former officers along with the Company and certain of its officers. Lead plaintiffs filed an amended complaint on November 4, 2019, which is substantially the same as the original complaint. The Company's motion to dismiss to the amended complaint is fully briefed and awaits the Court's ruling. In December 2017, the U.S. Judicial Panel on Multidistrict Litigation consolidated numerous cases filed against an array of defendants by various plaintiffs such as counties, cities, hospitals, Indian tribes, and others, alleging claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation, captioned In re National Prescription Opiate Litigation (MDL No. 2804, Case No. 17-md-2804), is pending in the U.S. District Court for the Northern District of Ohio ("N.D. Ohio"). The Company is involved in the following MDL bellwether cases: (1) two consolidated cases in N.D. Ohio ( County of Summit, Ohio, et al. v. Purdue Pharma L.P., et al. , Case No. 18-op-45090; County of Cuyahoga, Ohio, et al. v. Purdue Pharma L.P. , Case No. 18-op-45004), previously scheduled for trial in November 2020 but postponed indefinitely; (2) one remanded to the U. S. District Court for the Eastern District of Oklahoma ( The Cherokee Nation v. McKesson Corp., et al. , Case No. 18-CV-00056-RAW-SPS); (3) one remanded to the U. S. District Court for the Northern District of California ( City and County of San Francisco, et al. v. Purdue Pharma L.P., et al. , Case No. 3:18-cv-07591-CRB), scheduled for trial in October 2021; and (4) two additional consolidated cases in N.D. Ohio ( County of Lake, Ohio v. Purdue Pharma L.P., et al. , Case No. 18-op-45032; County of Trumbull, Ohio v. Purdue Pharma L.P., et al. , Case No. 18-op-45079), initially scheduled for trial in May 2021 but recently continued until October 2021. The Company also has been named as a defendant in numerous lawsuits brought in state courts relating to opioid matters. Trial dates have been set in cases pending in state courts in New Mexico ( State of New Mexico, ex rel. Hector Balderas, Attorney General v. Purdue Ph arma L.P., et al., Case No. D-101-cv-2017-02541, First Judicial District Court, Santa Fe County, New Mexico - September 2022); West Virginia ( In re: Opioid Litigation , Circuit Court of Kanawha County, West Virginia, Civil Action No. 19-C-9000 - November 2021); Missouri ( Jefferson County, Missouri v. Dannie E. Williams, M.D., et al. , Cause No. 20JE-CC00029, Twenty-Third Judicial Circuit, Jefferson County, Missouri - June 2022); Maryland ( Anne Arundel County, Maryland v. Purdue Pharma L.P., et al. , Case No. C-02-cv-18-000021, Circuit Court for Anne Arundel County, Maryland - December 2021); Florida ( State of Florida, Office of the Attorney General, Department of Legal Affairs v. Purdue Pharma L.P., et al. , Case No. 2018-CA-001438, Sixth Judicial Circuit in and for Pasco County, Florida - April 2022); and Nevada ( State of Nevada v. McKesson Corporation, et al. , Case No. A-19-796755-B, Eighth Judicial District Court, Clark County, Nevada - April 2022). A trial in two consolidated cases in New York state court ( County of Suffolk v. Purdue Pharma L.P., et al. , Index No. 400001/2017; County of Nassau v. Purdue Pharma L.P., et al., Index No. 400008/2017, Supreme Court of the State of New York, Suffolk County, NY) that had been scheduled for March 2021 was postponed, and no new trial date has been set. The relief sought by various plaintiffs in these matters is compensatory and punitive damages, as well as injunctive relief. Additionally, the Company has received from the Department of Justice and the Attorney Generals of numerous states subpoenas, civil investigative demands, and/or other requests concerning opioid matters. The Company has also had |
Income taxes
Income taxes | 3 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The effective tax rate for the three months ended November 30, 2020 was a benefit of 38.2%, primarily due to the discrete tax effect of equity losses in AmerisourceBergen. The effective tax rate for the three months ended November 30, 2019 was an expense of 3.6%, primarily due to discrete tax benefits recorded from the reduction of a valuation allowance on net deferred tax assets related to anticipated capital gains. Income taxes paid for the three months ended November 30, 2020 were $16 million, compared to $92 million for the three months ended November 30, 2019. During the next twelve months, based on current knowledge, it is reasonably possible the amount of unrecognized tax benefits could decrease by up to $110 million due to anticipated U.S. federal income tax audit settlements. |
Retirement benefits
Retirement benefits | 3 Months Ended |
Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits The Company sponsors several retirement plans, including defined benefit plans, defined contribution plans and a postretirement health plan. Defined benefit pension plans (non-U.S. plans) The Company has various defined benefit pension plans outside the U.S.. The principal defined benefit pension plan is the Boots Pension Plan (the “Boots Plan”), which covers certain employees in the UK. The Boots Plan is a funded final salary defined benefit plan providing pensions and death benefits to members. The Boots Plan was closed to future accrual effective July 1, 2010, with pensions calculated based on salaries up until that date. The Boots Plan is governed by a trustee board, which is independent of the Company. The plan is subject to a full funding actuarial valuation on a triennial basis. Components of net periodic pension costs for the defined benefit pension plans (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2020 2019 Service costs Selling, general and administrative expenses $ 2 $ 2 Interest costs Other income 33 35 Expected returns on plan assets/other Other income (80) (71) Total net periodic pension costs (income) $ (45) $ (34) The Company made cash contributions to its defined benefit pension plans of $10 million for the three months ended November 30, 2020, which primarily related to committed funded payments. The Company plans to contribute an additional $29 million to its defined benefit pension plans in fiscal 2021. Defined contribution plans The principal retirement plan for U.S. employees is the Walgreen Profit-Sharing Retirement Trust, to which both the Company and participating employees contribute. The Company’s contribution is in the form of a guaranteed match which is made pursuant to the applicable plan document approved by the Walgreen Co. Board of Directors. Plan activity is reviewed periodically by certain Committees of the Company's Board of Directors. The profit-sharing provision was an expense of $57 million for the three months ended November 30, 2020, compared to an expense of $58 million for the three months ended November 30, 2019. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) The following is a summary of net changes in accumulated other comprehensive income (“AOCI”) by component and net of tax for the three months ended November 30, 2020 and November 30, 2019 (in millions): Pension/ post-retirement obligations Unrealized gain (loss) on cash flow hedges Net investment hedges Share of OCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2020 $ (748) $ (31) $ (34) $ (10) $ (2,948) $ (3,771) Other comprehensive income (loss) before reclassification adjustments 17 4 (14) 7 72 85 Amounts reclassified from AOCI (2) 1 — — 3 2 Tax benefit (provision) (4) (1) 8 (1) — 1 Net change in other comprehensive income (loss) 11 4 (7) 5 75 88 Balance at November 30, 2020 $ (736) $ (27) $ (41) $ (5) $ (2,873) $ (3,682) Pension/ post-retirement obligations Unrealized gain (loss) on cash flow hedges 1 Net investment hedges Share of AOCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2019 $ (48) $ (24) $ 55 $ 3 $ (3,884) $ (3,897) Other comprehensive income (loss) before reclassification adjustments (12) (1) (55) (10) 642 564 Amounts reclassified from AOCI 2 1 — — — 3 Tax benefit (provision) 2 — 13 2 — 17 Net change in other comprehensive income (loss) (7) — (42) (8) 642 585 Balance at November 30, 2019 $ (55) $ (24) $ 14 $ 5 $ (3,242) $ (3,313) |
Segment reporting
Segment reporting | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting | Segment reporting The Company has aligned its operations into three reportable segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s operating segments. The chief operating decision maker uses adjusted operating income to assess segment profitability. The chief operating decision maker does not use total assets by segment to make decisions regarding resources; therefore, the total asset disclosure by segment has not been included. Retail Pharmacy USA The Retail Pharmacy USA segment consists of the Walgreens business, which includes the operation of retail drugstores, health and wellness services, and mail and central specialty pharmacy services. Sales for the segment are principally derived from the sale of prescription drugs and a wide assortment of retail products, including health and wellness, beauty and personal care and consumables and general merchandise. Retail Pharmacy International The Retail Pharmacy International segment consists of pharmacy-led health and beauty retail businesses and optical practices. These businesses include Boots branded stores in the UK, Thailand, Norway, the Republic of Ireland and the Netherlands, Benavides in Mexico and Ahumada in Chile. Sales for the segment are principally derived from the sale of prescription drugs and health and wellness, beauty and personal care and other consumer products. Pharmaceutical Wholesale The Pharmaceutical Wholesale segment consists of the Alliance Healthcare pharmaceutical wholesaling and distribution businesses and an equity method investment in AmerisourceBergen. Wholesale operations are located in the UK, Germany, France, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, Czech Republic and Lithuania. Sales for the segment are principally derived from wholesaling and distribution of a comprehensive offering of brand-name pharmaceuticals (including specialty pharmaceutical products) and generic pharmaceuticals, health and beauty products, home healthcare supplies and equipment and related services to pharmacies and other healthcare providers. The results of operations for each reportable segment includes procurement benefits and an allocation of corporate-related overhead costs. The “Eliminations” lines contain items not allocable to the reportable segments, as the information is not utilized by the chief operating decision maker to assess segment performance and allocate resources. The following table reflects results of operations of the Company's reportable segments (in millions): Three months ended November 30, 2020 2019 Sales: Retail Pharmacy USA $ 27,163 $ 26,133 Retail Pharmacy International 2,574 2,745 Pharmaceutical Wholesale 7,125 6,007 Eliminations 1 (555) (545) Walgreens Boots Alliance, Inc. $ 36,307 $ 34,339 Adjusted Operating income: Retail Pharmacy USA $ 989 $ 1,155 Retail Pharmacy International 84 79 Pharmaceutical Wholesale 244 229 Eliminations 1 1 — Walgreens Boots Alliance, Inc. $ 1,318 $ 1,463 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. The following table reconciles adjusted operating income to operating income (loss) (in millions): Three months ended November 30, 2020 2019 Adjusted operating income $ 1,318 $ 1,463 Adjustments to equity earnings (loss) in AmerisourceBergen (1,481) (80) Acquisition-related amortization (116) (118) Transformational cost management (104) (86) LIFO provision (33) (33) Acquisition-related costs (23) (124) Store optimization — (9) Operating income (loss) $ (440) $ 1,013 |
Sales
Sales | 3 Months Ended |
Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Sales | Sales The following table summarizes the Company’s sales by segment and by major source (in millions): Three months ended November 30, 2020 2019 Retail Pharmacy USA Pharmacy $ 20,869 $ 19,705 Retail 6,294 6,428 Total 27,163 26,133 Retail Pharmacy International Pharmacy 1,002 1,001 Retail 1,572 1,744 Total 2,574 2,745 Pharmaceutical Wholesale 7,125 6,007 Eliminations 1 (555) (545) Walgreens Boots Alliance, Inc. $ 36,307 $ 34,339 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. Contract balances with customers Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example the Company’s myWalgreens and Boots Advantage Card loyalty programs. Under such programs, customers earn reward points on purchases for redemption at a later date. See Note 18, Supplemental information, for further information on receivables from contracts with customers. |
Related parties
Related parties | 3 Months Ended |
Nov. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related parties | Related parties The Company has a long-term pharmaceutical distribution agreement with AmerisourceBergen pursuant to which the Company sources branded and generic pharmaceutical products from AmerisourceBergen principally for its U.S. operations. Additionally, AmerisourceBergen receives sourcing services for generic pharmaceutical products. Related party transactions with AmerisourceBergen (in millions): Three months ended November 30, 2020 2019 Purchases, net $ 15,441 $ 14,476 November 30, 2020 August 31, 2020 Trade accounts payable, net $ 6,753 $ 6,390 |
New accounting pronouncements
New accounting pronouncements | 3 Months Ended |
Nov. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New accounting pronouncements | New accounting pronouncements Adoption of new accounting pronouncements Financial Instruments In March 2020, FASB issued ASU 2020-03. This ASU improves and clarifies various financial instruments topics. The ASU includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Investments - equity securities In April 2019, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2019-04, Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825). This extensive ASU provides clarifications for three topics related to financial instruments accounting, some of which apply to the Company. For example, this ASU clarifies the disclosure requirements that apply to equity securities without a readily determinable fair value for which the measurement alternative is elected. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Collaborative arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Compensation – retirement benefits – defined benefit plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement benefits (Topic 715-20). This ASU amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Fair value measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. The Company adopted the new standard effective September 1, 2020 on a retrospective basis and the adoption of this ASU did not have any impact on the Company’s results of operations, cash flows or financial position. Financial instruments - credit losses In June 2016, the FASB issued ASU 2016-13: Measurement of Credit Losses on Financial Instruments (Topic 326), which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to U.S. GAAP an impairment model that is based on expected losses rather than incurred losses, which is known as the current expected credit loss ("CECL") model. The CECL model applies to most debt instruments (other than those measured at fair value), trade and other receivables, financial guarantee contracts, and loan commitments. The Company adopted the new standard effective September 1, 2020, using a modified retrospective transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The adoption did not have a material impact on the Company’s financial position or results of operations. New accounting pronouncements not yet adopted Codification Improvements – Disclosures In October 2020, the FASB issued ASU 2020-10, Codification Improvements - Disclosures. This ASU improves consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022). This ASU will not affect the Company's results of operations, cash flows or financial position. The Company do not expect to have a material impact on the disclosures to the financial statement of the Company. Receivables - Nonrefundable Fees and Others In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other. This ASU clarifies the accounting for the amortization period for certain purchased callable debt securities held at a premium by giving consideration to securities which have multiple call dates. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022). The Company is evaluating the effect of adopting this new accounting guidance. Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates ("IBORs") and, particularly, the risk of cessation of the London Interbank Offered Rate ("LIBOR"), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The ASU can be adopted no later than December 1, 2022 (fiscal year 2023) with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance. Investments - equity securities; Investments—Equity Method and Joint Ventures; Derivatives and Hedging In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this ASU clarify the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The ASU is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022). The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company's results of operations, cash flows or financial position. Income taxes - simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022), and interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company's disclosures. |
Supplemental information
Supplemental information | 3 Months Ended |
Nov. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental information | Supplemental information Accounts receivable Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies), clients and members. Trade receivables were $6.6 billion and $6.0 billion at November 30, 2020 and August 31, 2020, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from AmerisourceBergen (see Note 16, Related parties), were $1.2 billion and $1.2 billion at November 30, 2020 and August 31, 2020, respectively. Depreciation and amortization The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions): Three months ended November 30, 2020 2019 Depreciation expense $ 360 $ 359 Intangible asset and other amortization 115 118 Total depreciation and amortization expense $ 475 $ 477 Accumulated depreciation and amortization on property, plant and equipment was $12.7 billion at November 30, 2020 and $12.5 billion at August 31, 2020. Restricted cash The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. As of November 30, 2020 and August 31, 2020, the amount of such restricted cash was $228 million and $230 million, respectively, and is reported in other current assets on the Consolidated Condensed Balance Sheets. The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2020 and August 31, 2020 (in millions): November 30, 2020 August 31, 2020 Cash and cash equivalents $ 1,111 $ 516 Restricted cash (included in other current assets) 228 230 Cash, cash equivalents and restricted cash $ 1,339 $ 746 Redeemable noncontrolling interest The redeemable noncontrolling interest balance as of November 30, 2020 was $178 million which included cumulative translation adjustment of $3 million for the three months ended November 30, 2020. See Note 2, Acquisition for further details. Earnings per share The dilutive effect of outstanding stock options on earnings per share is calculated using the treasury stock method. Stock options are anti-dilutive and excluded from the earnings per share calculation if the exercise price exceeds the average market price of the common shares. There were 18.5 million weighted outstanding options to purchase common shares that were anti-dilutive and excluded from the first quarter earnings per share calculation as of November 30, 2020 compared to 16.7 million as of November 30, 2019. Due to the anti-dilutive effect resulting from the reported net loss, an incremental 0.5 million of potentially dilutive securities were omitted from the calculation of weighted-average common shares outstanding for the three months ended November 30, 2020. Cash dividends declared per common share Cash dividends per common share declared were as follows: Quarter ended 2020 2019 November $ 0.4675 $ 0.4575 |
Subsequent event
Subsequent event | 3 Months Ended |
Nov. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent events Pharmaceutical Wholesale Transaction On January 6, 2021, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with AmerisourceBergen. Pursuant to the terms and subject to the conditions set forth in the Share Purchase Agreement, AmerisourceBergen will purchase the majority of the Company's Alliance Healthcare business ("Business") for approximately $6.5 billion, comprised of $6.275 billion in cash, subject to certain purchase price adjustments, and 2 million shares of AmerisourceBergen common stock (the "Transaction"). Alliance Healthcare’s investment in China and Italy and its operations in Germany are not part of the Transaction. The Transaction is subject to the satisfaction of customary closing conditions, including receipt of applicable regulatory approvals. The Company will account for the Transaction as a business disposition and report the financial results of the Business as discontinued operations beginning in the second quarter of fiscal year 2021. In connection with the Transaction, the Company and AmerisounceBergen also agreed to a (i) three-year extension through 2029 of the U.S. pharmaceutical distribution agreement pursuant to which branded and generic pharmaceutical products are sourced from AmerisourceBergen in the U.S., (ii) a three-year extension of the agreement, that provides AmerisourceBergen the ability to access generics pharmaceutical products through Walgreens Boots Alliance Development GmbH, the Company’s global sourcing enterprise, (iii) a distribution agreement pursuant to which AmerisourceBergen will supply branded and generic pharmaceutical products to the Company’s Boots UK business following the closing of the Transaction and (iv) explore a series of strategic initiatives designed to create incremental growth and efficiencies in sourcing, logistics and distribution. VillageMD Subsequent to November 30, 2020, the Company and VillageMD announced that the Company has accelerated its investment in VillageMD to support the opening of 600 to 700 Village Medical at Walgreens primary care clinics in more than 30 U.S. markets within the next four years, with the intent to build hundreds more thereafter. In July 2020, the Company and VillageMD announced an expansion of their partnership and the intent to open 500 to 700 clinics over a five-year period, supported by the Company’s investment in VillageMD over three years of $1.0 billion in equity and convertible debt, which included an initial $250 million equity investment. The Company has now completed the remaining $750 million investment, which will allow the Company to increase the minimum number of clinics to 600 and expand the rollout at a faster pace. |
Accounting policies (Policies)
Accounting policies (Policies) | 3 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the “Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. The Company uses the equity method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2020. The coronavirus COVID-19 pandemic (“COVID-19”) has severely impacted the economies of the U.S., the UK and other countries around the world. The impact of COVID-19 on the Company’s businesses, financial position, results of operations and cash flows for the three months ended November 30, 2020, as well as information regarding certain expected or potential impacts of COVID-19 on the Company, is discussed throughout this Quarterly Report on Form 10-Q. The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company bases its estimates on the information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances including estimates of the impact of COVID-19. The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors discussed throughout this Quarterly Report on Form 10-Q including, but not limited to, the severity and duration of COVID-19, the extent to which it will impact our customers, team members, suppliers, vendors, business partners and distribution channels. The Company assessed certain accounting matters that require consideration of estimates and assumptions in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of November 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill, intangible and other long-lived assets including operating lease right-of-use assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. In the opinion of management, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments necessary to present a fair statement of the results for such interim periods. The impact of COVID-19, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payer and customer relationships and terms, strategic transactions including acquisitions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. |
Adoption of new accounting pronouncements; New accounting pronouncements not yet adopted | Adoption of new accounting pronouncements Financial Instruments In March 2020, FASB issued ASU 2020-03. This ASU improves and clarifies various financial instruments topics. The ASU includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Investments - equity securities In April 2019, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2019-04, Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825). This extensive ASU provides clarifications for three topics related to financial instruments accounting, some of which apply to the Company. For example, this ASU clarifies the disclosure requirements that apply to equity securities without a readily determinable fair value for which the measurement alternative is elected. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Collaborative arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Compensation – retirement benefits – defined benefit plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement benefits (Topic 715-20). This ASU amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. The Company adopted the new standard effective September 1, 2020 and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Fair value measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. The Company adopted the new standard effective September 1, 2020 on a retrospective basis and the adoption of this ASU did not have any impact on the Company’s results of operations, cash flows or financial position. Financial instruments - credit losses In June 2016, the FASB issued ASU 2016-13: Measurement of Credit Losses on Financial Instruments (Topic 326), which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to U.S. GAAP an impairment model that is based on expected losses rather than incurred losses, which is known as the current expected credit loss ("CECL") model. The CECL model applies to most debt instruments (other than those measured at fair value), trade and other receivables, financial guarantee contracts, and loan commitments. The Company adopted the new standard effective September 1, 2020, using a modified retrospective transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The adoption did not have a material impact on the Company’s financial position or results of operations. New accounting pronouncements not yet adopted Codification Improvements – Disclosures In October 2020, the FASB issued ASU 2020-10, Codification Improvements - Disclosures. This ASU improves consistency by amending the codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022). This ASU will not affect the Company's results of operations, cash flows or financial position. The Company do not expect to have a material impact on the disclosures to the financial statement of the Company. Receivables - Nonrefundable Fees and Others In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other. This ASU clarifies the accounting for the amortization period for certain purchased callable debt securities held at a premium by giving consideration to securities which have multiple call dates. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022). The Company is evaluating the effect of adopting this new accounting guidance. Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates ("IBORs") and, particularly, the risk of cessation of the London Interbank Offered Rate ("LIBOR"), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The ASU can be adopted no later than December 1, 2022 (fiscal year 2023) with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance. Investments - equity securities; Investments—Equity Method and Joint Ventures; Derivatives and Hedging In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this ASU clarify the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The ASU is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022). The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company's results of operations, cash flows or financial position. Income taxes - simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020 (fiscal 2022), and interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company's disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Identifiable Assets Acquired and Liabilities Assumed | The following table summarizes the consideration for the acquisition and the preliminary amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase Price Allocation: Total Consideration $ 313 Identifiable assets acquired and liabilities assumed Accounts receivable, cash and other assets 563 Inventories 470 Property, plant and equipment 125 Short term debt (295) Trade accounts payable, accrued expenses and other liabilities (356) Other noncurrent liabilities (197) Total identifiable net assets 310 Goodwill $ 3 |
Exit and disposal activities (T
Exit and disposal activities (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Costs related to exit and disposal activities under the Transformational Cost Management Program for the three months ended November 30, 2020 and November 30, 2019 were as follows (in millions): Three months ended November 30, 2020 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 22 $ — $ — $ 22 Asset impairments 4 — — 4 Employee severance and business transition costs 21 28 2 51 Information technology transformation and other exit costs 10 (6) 1 6 Total pre-tax exit and disposal costs $ 58 $ 22 $ 4 $ 83 Three months ended November 30, 2019 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 1 $ — $ — $ 1 Asset impairments 8 3 — 11 Employee severance and business transition costs 34 1 5 40 Information technology transformation and other exit costs 7 4 1 12 Total pre-tax exit and disposal costs $ 49 $ 9 $ 6 $ 64 |
Change in Restructuring Liabilities | The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions): Rollforward of liabilities: Lease obligations and other real estate costs Asset Impairments Employee severance and business transition costs Information technology transformation and other exit costs Total Balance at August 31, 2020 $ 22 $ — $ 227 $ 8 $ 257 Costs 22 4 51 6 83 Payments (20) — (113) (12) (145) Other (4) (4) — 4 (4) Balance at November 30, 2020 $ 21 $ — $ 166 $ 5 $ 192 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases were as follows (in millions): Balance Sheet supplemental information: November 30, 2020 August 31, 2020 Operating Leases: Operating lease right-of-use assets $ 21,951 $ 21,724 Operating lease obligations - current 2,435 2,426 Operating lease obligations - non-current 22,166 21,973 Total operating lease obligations $ 24,601 $ 24,399 Finance Leases: Right-of-use assets included in: Property, plant and equipment, net $ 759 $ 769 Lease obligations included in: Accrued expenses and other liabilities 32 34 Other non-current liabilities 1,009 1,020 Total finance lease obligations $ 1,041 $ 1,054 |
Lease, Cost | Supplemental income statement information related to leases were as follows (in millions): Three months ended November 30, Income Statement supplemental information: 2020 2019 Operating lease cost Fixed $ 827 $ 830 Variable 1 162 14 Finance lease cost Amortization $ 11 $ 9 Interest 14 14 Sublease income 20 15 Impairment of right-of-use assets 10 — Gains on sale-leaseback transactions 2 93 77 1 The three months ended November 30, 2020 includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume. 2 Recorded within selling, general and administrative expenses. Other supplemental information were as follows (in millions): Three months ended November 30, Other Supplemental Information: 2020 2019 Cash paid for amounts included in the measurement of lease obligations Operating cash flows from operating leases $ 872 $ 831 Operating cash flows from finance leases 12 11 Financing cash flows from finance leases 11 13 Total $ 895 $ 855 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 805 $ 552 Average lease term and discount rate as of November 30, 2020 and August 31, 2020 were as follows: Weighted average terms and discount rates: November 30, 2020 August 31, 2020 Weighted average remaining lease term in years: Operating leases 10.6 10.7 Finance leases 20.6 20.7 Weighted average discount rate Operating leases 4.95 % 4.95 % Finance leases 5.39 % 5.39 % |
Lessee, Operating Lease, Liability, Maturity | The aggregate future lease payments for operating and finance leases as of November 30, 2020 were as follows (in millions): Future lease payments: Fiscal year Finance lease Operating lease 2021 (Remaining period) $ 72 $ 2,657 2022 96 3,421 2023 93 3,274 2024 93 3,126 2025 91 2,963 2026 87 2,796 Later 1,139 13,479 Total undiscounted minimum lease payments $ 1,671 $ 31,716 Less: Present value discount (630) (7,115) Lease liability $ 1,041 $ 24,601 |
Finance Lease, Liability, Maturity | The aggregate future lease payments for operating and finance leases as of November 30, 2020 were as follows (in millions): Future lease payments: Fiscal year Finance lease Operating lease 2021 (Remaining period) $ 72 $ 2,657 2022 96 3,421 2023 93 3,274 2024 93 3,126 2025 91 2,963 2026 87 2,796 Later 1,139 13,479 Total undiscounted minimum lease payments $ 1,671 $ 31,716 Less: Present value discount (630) (7,115) Lease liability $ 1,041 $ 24,601 |
Equity method investments (Tabl
Equity method investments (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity method investments as of November 30, 2020 and August 31, 2020, were as follows (in millions, except percentages): November 30, 2020 August 31, 2020 Carrying value Ownership percentage Carrying value Ownership percentage AmerisourceBergen $ 4,030 28% $ 5,446 28% Others 1,989 8% - 50% 1,892 8% - 50% Total $ 6,019 $ 7,338 |
Summarized Financial Information of Equity Method Investments | Summarized financial information for the Company’s equity method investments in aggregate is as follows: Statements of earnings (loss) (in millions) Three months ended November 30, 2020 2019 Sales $ 56,548 $ 51,581 Gross profit 2,472 7,733 Net earnings (loss) (4,798) 1,528 Share of earnings (loss) from equity method investments (1,350) 4 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions): Goodwill rollforward: Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. August 31, 2020 $ 10,553 $ 1,593 $ 3,122 $ 15,268 Acquisitions 1 — 3 4 Currency translation adjustments — 18 9 27 November 30, 2020 $ 10,554 $ 1,612 $ 3,133 $ 15,299 |
Schedule of Finite-Lived Intangible Assets by Major Class | The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): Intangible assets November 30, 2020 August 31, 2020 Gross amortizable intangible assets Customer relationships and loyalty card holders 1 $ 4,409 $ 4,389 Trade names and trademarks 419 410 Purchasing and payer contracts 337 337 Non-compete agreements and others 61 61 Total gross amortizable intangible assets 5,226 5,197 Accumulated amortization Customer relationships and loyalty card holders 1 $ 1,603 $ 1,511 Trade names and trademarks 242 228 Purchasing and payer contracts 101 95 Non-compete agreements and others 26 26 Total accumulated amortization 1,972 1,860 Total amortizable intangible assets, net $ 3,254 $ 3,337 Indefinite-lived intangible assets Trade names and trademarks $ 5,410 $ 5,388 Pharmacy licenses 2,042 2,028 Total indefinite-lived intangible assets $ 7,452 $ 7,416 Total intangible assets, net $ 10,706 $ 10,753 1 Includes purchased prescription files. |
Schedule of Future Amortization Expense | Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at November 30, 2020 is as follows (in millions): 2022 2023 2024 2025 2026 Estimated annual amortization expense $ 434 $ 400 $ 381 $ 348 $ 328 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | November 30, 2020 August 31, 2020 Short-term debt Commercial paper $ 1,662 $ 1,517 Credit facilities 1,617 1,071 £700 million note issuance 1 2.875% unsecured Pound sterling notes due 2020 — 533 $8 billion note issuance 1 3.300% unsecured notes due 2021 1,249 — Other 2 718 418 Total short-term debt $ 5,245 $ 3,538 Long-term debt $1.5 billion note issuance 1 3.200% unsecured notes due 2030 $ 497 $ 497 4.100% unsecured notes due 2050 990 990 $6 billion note issuance 1 3.450% unsecured notes due 2026 1,892 1,891 4.650% unsecured notes due 2046 591 591 $8 billion note issuance 1 3.300% unsecured notes due 2021 — 1,248 3.800% unsecured notes due 2024 1,994 1,993 4.500% unsecured notes due 2034 496 496 4.800% unsecured notes due 2044 1,493 1,493 £700 million note issuance 1 3.600% unsecured Pound sterling notes due 2025 400 398 €750 million note issuance 1 2.125% unsecured Euro notes due 2026 896 891 $4 billion note issuance 3 3.100% unsecured notes due 2022 1,198 1,198 4.400% unsecured notes due 2042 493 493 Other 4 34 24 Total long-term debt, less current portion $ 10,973 $ 12,203 1 Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding. On October 20, 2020, the Company redeemed in full the £400 million aggregate principal amount outstanding of its 2.875% notes due 2020 issued by the Company on November 20, 2014. 2 Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 3 Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, the Company fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of the Company and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company. 4 Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities. |
Long-Term Debt | November 30, 2020 August 31, 2020 Short-term debt Commercial paper $ 1,662 $ 1,517 Credit facilities 1,617 1,071 £700 million note issuance 1 2.875% unsecured Pound sterling notes due 2020 — 533 $8 billion note issuance 1 3.300% unsecured notes due 2021 1,249 — Other 2 718 418 Total short-term debt $ 5,245 $ 3,538 Long-term debt $1.5 billion note issuance 1 3.200% unsecured notes due 2030 $ 497 $ 497 4.100% unsecured notes due 2050 990 990 $6 billion note issuance 1 3.450% unsecured notes due 2026 1,892 1,891 4.650% unsecured notes due 2046 591 591 $8 billion note issuance 1 3.300% unsecured notes due 2021 — 1,248 3.800% unsecured notes due 2024 1,994 1,993 4.500% unsecured notes due 2034 496 496 4.800% unsecured notes due 2044 1,493 1,493 £700 million note issuance 1 3.600% unsecured Pound sterling notes due 2025 400 398 €750 million note issuance 1 2.125% unsecured Euro notes due 2026 896 891 $4 billion note issuance 3 3.100% unsecured notes due 2022 1,198 1,198 4.400% unsecured notes due 2042 493 493 Other 4 34 24 Total long-term debt, less current portion $ 10,973 $ 12,203 1 Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding. On October 20, 2020, the Company redeemed in full the £400 million aggregate principal amount outstanding of its 2.875% notes due 2020 issued by the Company on November 20, 2014. 2 Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 3 Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, the Company fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of the Company and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company. 4 Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities. |
Financial instruments (Tables)
Financial instruments (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts, Fair Value and Balance Sheet Presentation of Derivative Instruments Outstanding | The notional amounts and fair value of derivative instruments outstanding were as follows (in millions): November 30, 2020 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges: Cross currency interest rate swaps $ 674 $ 9 Other non-current assets Foreign currency forwards 100 1 Other current assets Foreign currency forwards 46 1 Other non-current liabilities Cross currency interest rate swaps 264 8 Other non-current liabilities Interest rate swaps 1,000 6 Other non-current liabilities Foreign currency forwards 781 11 Other current liabilities Cross currency interest rate swaps 157 7 Other current liabilities Derivatives not designated as hedges: Foreign currency forwards 1,729 15 Other current assets Foreign currency forwards 2,677 50 Other current liabilities Total return swap 219 1 Other current liabilities August 31, 2020 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges: Cross currency interest rate swaps $ 722 $ 16 Other non-current assets Foreign currency forwards 100 1 Other current assets Cross currency interest rate swaps 50 — Other current assets Foreign currency forwards 49 1 Other non-current liabilities Cross currency interest rate swaps 318 13 Other non-current liabilities Interest rate swaps 1,000 10 Other non-current liabilities Foreign currency forwards 671 23 Other current liabilities Cross currency interest rate swaps 103 3 Other current liabilities Derivatives not designated as hedges: Foreign currency forwards 1,930 19 Other current assets Foreign currency forwards 2,934 56 Other current liabilities Total return swap 205 1 Other current liabilities |
Gains and (Losses) due to Changes in Fair Value Recognized in Earnings | The income (expenses) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2020 2019 Foreign currency forwards Selling, general and administrative expenses $ (29) $ (74) Total return swap Selling, general and administrative expenses 13 — Foreign currency forwards Other income (expense) (9) 11 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows (in millions): November 30, 2020 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 309 $ 309 $ — $ — Investments in equity securities 2 13 13 — — Investments in debt securities 3 20 — — 20 Foreign currency forwards 4 16 — 16 — Cross currency interest rate swaps 5 9 — 9 — Warrants 3 — 3 — Liabilities : Foreign currency forwards 4 62 — 62 — Cross currency interest rate swaps 5 15 — 15 — Interest rate swaps 5 6 — 6 — Total return swap 1 — 1 — August 31, 2020 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 6 $ 6 $ — $ — Investments in equity securities 2 1 1 — — Foreign currency forwards 4 20 — 20 — Cross currency interest rate swaps 5 16 — 16 — Liabilities : Foreign currency forwards 4 80 — 80 — Cross currency interest rate swaps 5 16 — 16 — Interest rate swaps 5 10 — 10 — Total return swap 1 — 1 — 1 Money market funds are valued at the closing price reported by the fund sponsor. 2 Fair values of quoted investments are based on current bid prices as of November 30, 2020 and August 31, 2020. 3 Level 3 debt securities are valued using standard valuation techniques based on income and market approach. 4 The fair value of forward currency contracts is estimated by discounting the difference between the contractual forward price and the current available forward price for the residual maturity of the contract using observable market rates. See Note 8, Financial instruments, for additional information. 5 The fair value of cross currency interest rate swaps and interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 8, Financial instruments, for additional information. |
Retirement benefits (Tables)
Retirement benefits (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic pension costs for the defined benefit pension plans (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2020 2019 Service costs Selling, general and administrative expenses $ 2 $ 2 Interest costs Other income 33 35 Expected returns on plan assets/other Other income (80) (71) Total net periodic pension costs (income) $ (45) $ (34) |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following is a summary of net changes in accumulated other comprehensive income (“AOCI”) by component and net of tax for the three months ended November 30, 2020 and November 30, 2019 (in millions): Pension/ post-retirement obligations Unrealized gain (loss) on cash flow hedges Net investment hedges Share of OCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2020 $ (748) $ (31) $ (34) $ (10) $ (2,948) $ (3,771) Other comprehensive income (loss) before reclassification adjustments 17 4 (14) 7 72 85 Amounts reclassified from AOCI (2) 1 — — 3 2 Tax benefit (provision) (4) (1) 8 (1) — 1 Net change in other comprehensive income (loss) 11 4 (7) 5 75 88 Balance at November 30, 2020 $ (736) $ (27) $ (41) $ (5) $ (2,873) $ (3,682) Pension/ post-retirement obligations Unrealized gain (loss) on cash flow hedges 1 Net investment hedges Share of AOCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2019 $ (48) $ (24) $ 55 $ 3 $ (3,884) $ (3,897) Other comprehensive income (loss) before reclassification adjustments (12) (1) (55) (10) 642 564 Amounts reclassified from AOCI 2 1 — — — 3 Tax benefit (provision) 2 — 13 2 — 17 Net change in other comprehensive income (loss) (7) — (42) (8) 642 585 Balance at November 30, 2019 $ (55) $ (24) $ 14 $ 5 $ (3,242) $ (3,313) |
Segment reporting (Tables)
Segment reporting (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Income (Loss) from Segments to Consolidated | The following table reflects results of operations of the Company's reportable segments (in millions): Three months ended November 30, 2020 2019 Sales: Retail Pharmacy USA $ 27,163 $ 26,133 Retail Pharmacy International 2,574 2,745 Pharmaceutical Wholesale 7,125 6,007 Eliminations 1 (555) (545) Walgreens Boots Alliance, Inc. $ 36,307 $ 34,339 Adjusted Operating income: Retail Pharmacy USA $ 989 $ 1,155 Retail Pharmacy International 84 79 Pharmaceutical Wholesale 244 229 Eliminations 1 1 — Walgreens Boots Alliance, Inc. $ 1,318 $ 1,463 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. The following table reconciles adjusted operating income to operating income (loss) (in millions): Three months ended November 30, 2020 2019 Adjusted operating income $ 1,318 $ 1,463 Adjustments to equity earnings (loss) in AmerisourceBergen (1,481) (80) Acquisition-related amortization (116) (118) Transformational cost management (104) (86) LIFO provision (33) (33) Acquisition-related costs (23) (124) Store optimization — (9) Operating income (loss) $ (440) $ 1,013 |
Sales (Tables)
Sales (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes the Company’s sales by segment and by major source (in millions): Three months ended November 30, 2020 2019 Retail Pharmacy USA Pharmacy $ 20,869 $ 19,705 Retail 6,294 6,428 Total 27,163 26,133 Retail Pharmacy International Pharmacy 1,002 1,001 Retail 1,572 1,744 Total 2,574 2,745 Pharmaceutical Wholesale 7,125 6,007 Eliminations 1 (555) (545) Walgreens Boots Alliance, Inc. $ 36,307 $ 34,339 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. |
Related parties (Tables)
Related parties (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Related party transactions with AmerisourceBergen (in millions): Three months ended November 30, 2020 2019 Purchases, net $ 15,441 $ 14,476 November 30, 2020 August 31, 2020 Trade accounts payable, net $ 6,753 $ 6,390 |
Supplemental information (Table
Supplemental information (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Depreciation and Amortization Expense | The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions): Three months ended November 30, 2020 2019 Depreciation expense $ 360 $ 359 Intangible asset and other amortization 115 118 Total depreciation and amortization expense $ 475 $ 477 |
Restrictions on Cash and Cash Equivalents | The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2020 and August 31, 2020 (in millions): November 30, 2020 August 31, 2020 Cash and cash equivalents $ 1,111 $ 516 Restricted cash (included in other current assets) 228 230 Cash, cash equivalents and restricted cash $ 1,339 $ 746 |
Schedule of Cash and Cash Equivalents | The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2020 and August 31, 2020 (in millions): November 30, 2020 August 31, 2020 Cash and cash equivalents $ 1,111 $ 516 Restricted cash (included in other current assets) 228 230 Cash, cash equivalents and restricted cash $ 1,339 $ 746 |
Schedule of Dividends Payable | Cash dividends per common share declared were as follows: Quarter ended 2020 2019 November $ 0.4675 $ 0.4575 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Nov. 01, 2020 | Nov. 30, 2020 | Nov. 30, 2019 |
Retail Pharmacy USA | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 38 | $ 80 | |
McKesson Corporation, GEHE Pharma Handel | |||
Business Acquisition [Line Items] | |||
Noncash purchase consideration | $ 291 | ||
Controlling interest percentage | 70.00% |
Acquisitions - Schedule of Iden
Acquisitions - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Nov. 01, 2020 | Nov. 30, 2020 | Aug. 31, 2020 |
Identifiable assets acquired and liabilities assumed | |||
Goodwill | $ 15,299 | $ 15,268 | |
McKesson Corporation, GEHE Pharma Handel | |||
Business Acquisition [Line Items] | |||
Total consideration | $ 313 | ||
Identifiable assets acquired and liabilities assumed | |||
Accounts receivable, cash and other assets | 563 | ||
Inventories | 470 | ||
Property, plant and equipment | 125 | ||
Short term debt | 295 | ||
Trade accounts payable, accrued expenses and other liabilities | (356) | ||
Other noncurrent liabilities | (197) | ||
Total identifiable net assets | 310 | ||
Goodwill | $ 3 |
Exit and disposal activities -
Exit and disposal activities - Narrative (Details) $ in Millions | Dec. 20, 2018USD ($) | Oct. 24, 2017store | Nov. 30, 2020USD ($)store | Nov. 30, 2019USD ($) | Aug. 31, 2020USD ($)store | Sep. 01, 2019USD ($) | Aug. 31, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative effect adjustment to decrease retained earnings | $ (20,563) | $ (24,314) | $ (21,136) | $ (24,152) | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative effect adjustment to decrease retained earnings | 5 | 442 | |||||
Retained earnings | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative effect adjustment to decrease retained earnings | (33,495) | (35,810) | (34,210) | (35,815) | |||
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative effect adjustment to decrease retained earnings | $ 3 | $ 442 | |||||
Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred | 1,200 | ||||||
Restructuring costs | $ 83 | 64 | |||||
Transformational Cost Management Program | UNITED KINGDOM | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of stores expected to close | store | 200 | ||||||
Transformational Cost Management Program | UNITED STATES | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of stores expected to close | store | 250 | ||||||
Transformational Cost Management Program | Retained earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative effect adjustment to decrease retained earnings | $ 508 | ||||||
Store Optimization Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of stores expected to close | store | 600 | ||||||
Number of stores closed | store | 769 | ||||||
Lease obligations and other real estate costs | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred | $ 264 | ||||||
Restructuring costs | 22 | 1 | |||||
Lease obligations and other real estate costs | Store Optimization Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 3 | ||||||
Asset impairments | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred | 354 | ||||||
Restructuring costs | 4 | 11 | |||||
Employee severance and business transition costs | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred | 471 | ||||||
Restructuring costs | 51 | 40 | |||||
Information technology transformation and other exit costs | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred | 146 | ||||||
Restructuring costs | 6 | 12 | |||||
Employee severance and other exit costs | Store Optimization Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 6 | ||||||
Minimum | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected annual cost savings of restructuring plan | $ 2,000 | ||||||
Expected cost | 2,100 | ||||||
Minimum | Exit and disposal costs | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected cost | 1,800 | ||||||
Maximum | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected cost | 2,400 | ||||||
Maximum | Exit and disposal costs | Transformational Cost Management Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected cost | $ 2,100 |
Exit and disposal activities _2
Exit and disposal activities - Restructuring Costs (Details) - Transformational Cost Management Program - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 83 | $ 64 |
Reportable Segments | Retail Pharmacy USA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 58 | 49 |
Reportable Segments | Retail Pharmacy International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 22 | 9 |
Reportable Segments | Pharmaceutical Wholesale | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4 | 6 |
Lease obligations and other real estate costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 22 | 1 |
Lease obligations and other real estate costs | Reportable Segments | Retail Pharmacy USA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 22 | 1 |
Lease obligations and other real estate costs | Reportable Segments | Retail Pharmacy International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 0 |
Lease obligations and other real estate costs | Reportable Segments | Pharmaceutical Wholesale | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 0 |
Asset impairments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4 | 11 |
Asset impairments | Reportable Segments | Retail Pharmacy USA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4 | 8 |
Asset impairments | Reportable Segments | Retail Pharmacy International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 3 |
Asset impairments | Reportable Segments | Pharmaceutical Wholesale | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 0 |
Employee severance and business transition costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 51 | 40 |
Employee severance and business transition costs | Reportable Segments | Retail Pharmacy USA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 21 | 34 |
Employee severance and business transition costs | Reportable Segments | Retail Pharmacy International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 28 | 1 |
Employee severance and business transition costs | Reportable Segments | Pharmaceutical Wholesale | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2 | 5 |
Information technology transformation and other exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 6 | 12 |
Information technology transformation and other exit costs | Reportable Segments | Retail Pharmacy USA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 10 | 7 |
Information technology transformation and other exit costs | Reportable Segments | Retail Pharmacy International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | (6) | 4 |
Information technology transformation and other exit costs | Reportable Segments | Pharmaceutical Wholesale | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 1 | $ 1 |
Exit and disposal activities _3
Exit and disposal activities - Restructuring Reserve Activity (Details) - Transformational Cost Management Program $ in Millions | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 257 |
Costs | 83 |
Payments | (145) |
Other | (4) |
Ending balance | 192 |
Lease obligations and other real estate costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 22 |
Costs | 22 |
Payments | (20) |
Other | (4) |
Ending balance | 21 |
Asset impairments | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Costs | 4 |
Payments | 0 |
Other | (4) |
Ending balance | 0 |
Employee severance and business transition costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 227 |
Costs | 51 |
Payments | (113) |
Other | 0 |
Ending balance | 166 |
Information technology transformation and other exit costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 8 |
Costs | 6 |
Payments | (12) |
Other | 4 |
Ending balance | $ 5 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Nov. 30, 2020 |
Lessee, Lease, Description [Line Items] | |
Term of renewal contract | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of lease | 15 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of lease | 25 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 |
Operating Leases: | ||
Operating lease right-of-use assets | $ 21,951 | $ 21,724 |
Operating lease obligations - current | 2,435 | 2,426 |
Operating lease obligations - non-current | 22,166 | 21,973 |
Total operating lease obligations | 24,601 | 24,399 |
Finance Leases: | ||
Property, plant and equipment, net | 759 | 769 |
Lease obligations included in: | ||
Accrued expenses and other liabilities | 32 | 34 |
Other non-current liabilities | 1,009 | 1,020 |
Total finance lease obligations | $ 1,041 | $ 1,054 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Operating lease cost | ||
Fixed | $ 827 | $ 830 |
Variable | 162 | 14 |
Finance lease cost | ||
Amortization | 11 | 9 |
Interest | 14 | 14 |
Sublease income | 20 | 15 |
Impairment of right-of-use assets | 10 | 0 |
Gains on sale-leaseback transactions | $ 93 | $ 77 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash paid for amounts included in the measurement of lease obligations | ||
Operating cash flows from operating leases | $ 872 | $ 831 |
Operating cash flows from finance leases | 12 | 11 |
Financing cash flows from finance leases | 11 | 13 |
Total | 895 | 855 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 805 | $ 552 |
Leases - Average Lease Terms An
Leases - Average Lease Terms And Discounts (Details) | Nov. 30, 2020 | Aug. 31, 2020 |
Weighted average remaining lease term in years: | ||
Operating leases | 10 years 7 months 6 days | 10 years 8 months 12 days |
Finance leases | 20 years 7 months 6 days | 20 years 8 months 12 days |
Weighted average discount rate | ||
Operating leases | 4.95% | 4.95% |
Finance leases | 5.39% | 5.39% |
Leases - Future Lease Payments
Leases - Future Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 |
Finance lease | ||
2021 (Remaining period) | $ 72 | |
2022 | 96 | |
2023 | 93 | |
2024 | 93 | |
2025 | 91 | |
2026 | 87 | |
Later | 1,139 | |
Total undiscounted minimum lease payments | 1,671 | |
Less: Present value discount | (630) | |
Lease liability | 1,041 | $ 1,054 |
Operating lease | ||
2021 (Remaining period) | 2,657 | |
2022 | 3,421 | |
2023 | 3,274 | |
2024 | 3,126 | |
2025 | 2,963 | |
2026 | 2,796 | |
Later | 13,479 | |
Total undiscounted minimum lease payments | 31,716 | |
Less: Present value discount | (7,115) | |
Operating lease liability | $ 24,601 | $ 24,399 |
Equity method investments - Sch
Equity method investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of equity method investments | $ 6,019 | $ 7,338 |
AmerisourceBergen | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of equity method investments | $ 4,030 | $ 5,446 |
Ownership percentage | 28.00% | 28.00% |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of equity method investments | $ 1,989 | $ 1,892 |
Others | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 8.00% | 8.00% |
Others | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | 50.00% |
Total | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of equity method investments | $ 6,019 | $ 7,338 |
Equity method investments - Nar
Equity method investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Nov. 30, 2020 | Sep. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity earnings (losses) | $ (1,350) | $ 4 | ||
AmerisourceBergen | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Outstanding shares owned (in shares) | 56,854,867 | 56,854,867 | ||
Ownership percentage | 28.00% | 28.00% | ||
Period of reporting lag | 2 months | |||
Equity earnings (losses) | $ (1,373) | |||
Equity investment, exceeded its proportionate share of net assets | 4,300 | |||
AmerisourceBergen | Opiod Litigation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity earnings (losses) | $ (5,600) | |||
AmerisourceBergen | Level 1 | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Fair market value of equity investment | 5,900 | |||
Other Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity earnings (losses) | $ 23 | $ (9) |
Equity method investments - Sum
Equity method investments - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 36,307 | $ 34,339 |
Gross profit | 7,139 | 7,263 |
Net earnings (loss) | (299) | 842 |
Share of earnings (loss) from equity method investments | (1,350) | 4 |
Equity Method Investment | ||
Income Statement [Abstract] | ||
Sales | 56,548 | 51,581 |
Gross profit | 2,472 | 7,733 |
Net earnings (loss) | $ (4,798) | $ 1,528 |
Goodwill and other intangible_3
Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | Jun. 01, 2020 | |
Goodwill [Line Items] | ||||
Goodwill | $ 15,299 | $ 15,268 | ||
Indefinite-lived intangible assets | 7,452 | $ 7,416 | ||
Amortization of intangible assets | 115 | $ 118 | ||
Minimum | ||||
Goodwill [Line Items] | ||||
Reporting unit fair value in excess of carrying amount (as a percent) | 4.00% | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Reporting unit fair value in excess of carrying amount (as a percent) | 239.00% | |||
Other International Reporting Unit | ||||
Goodwill [Line Items] | ||||
Reporting unit fair value in excess of carrying amount (as a percent) | 4.00% | |||
Goodwill | 600 | |||
Boots Reporting Unit | ||||
Goodwill [Line Items] | ||||
Goodwill | 1,100 | |||
Indefinite-lived intangible assets | $ 7,300 | |||
Boots Reporting Unit | Minimum | ||||
Goodwill [Line Items] | ||||
Reporting unit fair value in excess of carrying amount (as a percent) | 4.00% | |||
Boots Reporting Unit | Maximum | ||||
Goodwill [Line Items] | ||||
Reporting unit fair value in excess of carrying amount (as a percent) | 31.00% |
Goodwill and other intangible_4
Goodwill and other intangible assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Net book value - beginning balance | $ 15,268 |
Acquisitions | 4 |
Currency translation adjustments | 27 |
Net book value - ending balance | 15,299 |
Reportable Segments | Retail Pharmacy USA | |
Goodwill [Roll Forward] | |
Net book value - beginning balance | 10,553 |
Acquisitions | 1 |
Currency translation adjustments | 0 |
Net book value - ending balance | 10,554 |
Reportable Segments | Retail Pharmacy International | |
Goodwill [Roll Forward] | |
Net book value - beginning balance | 1,593 |
Acquisitions | 0 |
Currency translation adjustments | 18 |
Net book value - ending balance | 1,612 |
Reportable Segments | Pharmaceutical Wholesale | |
Goodwill [Roll Forward] | |
Net book value - beginning balance | 3,122 |
Acquisitions | 3 |
Currency translation adjustments | 9 |
Net book value - ending balance | $ 3,133 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amortizable intangible assets | $ 5,226 | $ 5,197 |
Accumulated amortization | 1,972 | 1,860 |
Total amortizable intangible assets, net | 3,254 | 3,337 |
Indefinite-lived intangible assets | 7,452 | 7,416 |
Total intangible assets, net | 10,706 | 10,753 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 5,410 | 5,388 |
Pharmacy licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 2,042 | 2,028 |
Customer relationships and loyalty card holders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amortizable intangible assets | 4,409 | 4,389 |
Accumulated amortization | 1,603 | 1,511 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amortizable intangible assets | 419 | 410 |
Accumulated amortization | 242 | 228 |
Purchasing and payer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amortizable intangible assets | 337 | 337 |
Accumulated amortization | 101 | 95 |
Non-compete agreements and others | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amortizable intangible assets | 61 | 61 |
Accumulated amortization | $ 26 | $ 26 |
Goodwill and other intangible_6
Goodwill and other intangible assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions | Nov. 30, 2020USD ($) |
Estimated annual intangible assets amortization expense [Abstract] | |
2022 | $ 434 |
2023 | 400 |
2024 | 381 |
2025 | 348 |
2026 | $ 328 |
Debt - Short and Long-Term Debt
Debt - Short and Long-Term Debt (Details) | Nov. 30, 2020USD ($) | Nov. 30, 2020GBP (£) | Nov. 30, 2020EUR (€) | Oct. 20, 2020GBP (£) | Aug. 31, 2020USD ($) | Apr. 15, 2020USD ($) |
Debt Instrument [Line Items] | ||||||
Total short-term debt | $ 5,245,000,000 | $ 3,538,000,000 | ||||
Total long-term debt, less current portion | $ 10,973,000,000 | 12,203,000,000 | ||||
2.875% unsecured Pound sterling notes due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | ÂŁ | ÂŁ 700,000,000 | |||||
Stated interest rate | 2.875% | 2.875% | 2.875% | 2.875% | ||
Total short-term debt | $ 0 | 533,000,000 | ||||
Debt redeemed | ÂŁ | ÂŁ 400,000,000 | |||||
3.300% unsecured notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 8,000,000,000 | |||||
Stated interest rate | 3.30% | 3.30% | 3.30% | |||
Total short-term debt | $ 1,249,000,000 | 0 | ||||
Total $1.5 billion debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,500,000,000 | |||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Total short-term debt | 718,000,000 | 418,000,000 | ||||
Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Other | 34,000,000 | 24,000,000 | ||||
Total long-term debt, less current portion | $ 10,973,000,000 | 12,203,000,000 | ||||
Unsecured Notes | 3.300% unsecured notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.30% | 3.30% | 3.30% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 0 | 1,248,000,000 | ||||
Unsecured Notes | Total $1.5 billion debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,500,000,000 | |||||
Unsecured Notes | 3.200% unsecured notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 500,000,000 | |||||
Stated interest rate | 3.20% | 3.20% | 3.20% | 3.20% | ||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 497,000,000 | 497,000,000 | ||||
Unsecured Notes | 4.100% unsecured notes due 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 1,000,000,000 | |||||
Stated interest rate | 4.10% | 4.10% | 4.10% | 4.10% | ||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 990,000,000 | 990,000,000 | ||||
Unsecured Notes | Total $6.0 billion debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 6,000,000,000 | |||||
Unsecured Notes | 3.450% unsecured notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.45% | 3.45% | 3.45% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 1,892,000,000 | 1,891,000,000 | ||||
Unsecured Notes | 4.650% unsecured notes due 2046 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 4.65% | 4.65% | 4.65% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 591,000,000 | 591,000,000 | ||||
Unsecured Notes | Total $8.0 billion debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 8,000,000,000 | |||||
Unsecured Notes | 3.800% unsecured notes due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.80% | 3.80% | 3.80% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 1,994,000,000 | 1,993,000,000 | ||||
Unsecured Notes | 4.500% unsecured notes due 2034 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 4.50% | 4.50% | 4.50% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 496,000,000 | 496,000,000 | ||||
Unsecured Notes | 4.800% unsecured notes due 2044 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 4.80% | 4.80% | 4.80% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 1,493,000,000 | 1,493,000,000 | ||||
Unsecured Notes | Total 700 million pounds debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | ÂŁ | ÂŁ 700,000,000 | |||||
Unsecured Notes | 3.600% unsecured Pound sterling notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.60% | 3.60% | 3.60% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 400,000,000 | 398,000,000 | ||||
Unsecured Notes | Total 750 million euros debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | € 750,000,000 | |||||
Unsecured Notes | 2.125% unsecured Euro notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 2.125% | 2.125% | 2.125% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 896,000,000 | 891,000,000 | ||||
Unsecured Notes | Total $4.0 billion debt issuance | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 4,000,000,000 | |||||
Unsecured Notes | 3.100% unsecured notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.10% | 3.10% | 3.10% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 1,198,000,000 | 1,198,000,000 | ||||
Unsecured Notes | 4.400% unsecured notes due 2042 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 4.40% | 4.40% | 4.40% | |||
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment | $ 493,000,000 | 493,000,000 | ||||
Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Total short-term debt | 1,662,000,000 | 1,517,000,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Total short-term debt | $ 1,617,000,000 | $ 1,071,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | Dec. 23, 2020USD ($) | Aug. 30, 2019USD ($)credit_agreement | Nov. 30, 2020USD ($) | Nov. 30, 2020EUR (€) | Nov. 30, 2019USD ($) | May 29, 2020USD ($) | Apr. 15, 2020USD ($) | Apr. 07, 2020USD ($) | Apr. 02, 2020USD ($) | Apr. 01, 2020USD ($) | Jan. 18, 2019USD ($) | Dec. 05, 2018USD ($) | Nov. 30, 2018USD ($) | Aug. 29, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Interest paid | $ 234,000,000 | $ 245,000,000 | ||||||||||||
Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt to total capitalization ratio | 0.60 | |||||||||||||
Commercial paper | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Average daily short-term borrowings | $ 1,600,000,000 | $ 2,900,000,000 | ||||||||||||
Weighted average interest rate | 0.63% | 0.63% | 2.55% | |||||||||||
Commercial paper | Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Average daily short-term borrowings | $ 401,000,000 | € 300 | ||||||||||||
Weighted average interest rate | 0.43% | 0.43% | ||||||||||||
Total $1.5 billion debt issuance | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,500,000,000 | |||||||||||||
Debt issuance costs | 13,300,000 | |||||||||||||
Unsecured Notes | Total $1.5 billion debt issuance | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,500,000,000 | |||||||||||||
Unsecured Notes | 3.200% unsecured notes due 2030 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 500,000,000 | |||||||||||||
Stated interest rate | 3.20% | 3.20% | ||||||||||||
Unsecured Notes | 4.100% unsecured notes due 2050 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,000,000,000 | |||||||||||||
Stated interest rate | 4.10% | 4.10% | ||||||||||||
Unsecured Notes | December 2018 Term Loan Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,000,000,000 | |||||||||||||
Term Loan | December 2018 Term Loan Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing outstanding | $ 700,000,000 | |||||||||||||
Revolving Credit Facility | 2020 Revolving Credit Agreement, 364-Day Facility | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,250,000,000 | |||||||||||||
Revolving Credit Facility | 2020 Revolving Credit Agreement, 18-Month Revolving Credit Facility | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 2,250,000,000 | |||||||||||||
Term of debt agreement | 18 months | |||||||||||||
Revolving Credit Facility | April 7, 2020 Revolving Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||||||||
Borrowing outstanding | 0 | |||||||||||||
Revolving Credit Facility | April 2020 Revolving Bilateral Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||||||||
Revolving Credit Facility | April 2020 Revolving Club Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,325,000,000 | |||||||||||||
Revolving Credit Facility | Other April 2020 Revolving Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing outstanding | 0 | |||||||||||||
Revolving Credit Facility | August 2019 Revolving Credit Agreements | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||||||||
Term of debt agreement | 18 months | |||||||||||||
Number of credit agreements | credit_agreement | 3 | |||||||||||||
Borrowing outstanding | 0 | |||||||||||||
Revolving Credit Facility | January 2019 364-Day Revolving Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||||||||||
Borrowing outstanding | 0 | |||||||||||||
Revolving Credit Facility | January 2019 364-Day Revolving Credit Agreement | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||||||||
Revolving Credit Facility | A&R December 2018 Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | 2,000,000,000 | |||||||||||||
Revolving Credit Facility | A&R December 2018 Credit Agreement | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | 1,000,000,000 | |||||||||||||
Revolving Credit Facility | November 2018 Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||||||
Revolving Credit Facility | August 2018 Revolving Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 3,500,000,000 | |||||||||||||
Borrowing outstanding | 0 | |||||||||||||
Revolving Credit Facility | Unsecured Notes | A&R December 2018 Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 1,000,000,000 | |||||||||||||
Revolving Credit Facility | Line of Credit | November 2018 Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 500,000,000 | 500,000,000 | ||||||||||||
Revolving Credit Facility | Term Loan | November 2018 Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 500,000,000 | ||||||||||||
Borrowing outstanding | $ 900,000,000 | |||||||||||||
Letter of Credit | August 2018 Revolving Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 500,000,000 | |||||||||||||
Swing Line Subfacility | 2020 Revolving Credit Agreement, 18-Month Revolving Credit Facility | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 350,000,000 |
Financial instruments (Details)
Financial instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Foreign currency forwards | Not Designated as Hedging Instrument | Selling, general and administrative expenses | |||
Derivatives, Fair Value [Line Items] | |||
Gains and (losses) due to changes in fair value of derivative instruments | $ (29) | $ (74) | |
Foreign currency forwards | Not Designated as Hedging Instrument | Other income (expense) | |||
Derivatives, Fair Value [Line Items] | |||
Gains and (losses) due to changes in fair value of derivative instruments | (9) | 11 | |
Total return swap | Not Designated as Hedging Instrument | Selling, general and administrative expenses | |||
Derivatives, Fair Value [Line Items] | |||
Gains and (losses) due to changes in fair value of derivative instruments | 13 | $ 0 | |
Other non-current assets | Cross currency interest rate swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, assets | 674 | $ 722 | |
Fair value, assets | 9 | 16 | |
Other current assets | Cross currency interest rate swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, assets | 50 | ||
Fair value, assets | 0 | ||
Other current assets | Foreign currency forwards | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, assets | 100 | 100 | |
Fair value, assets | 1 | 1 | |
Other current assets | Foreign currency forwards | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, assets | 1,729 | 1,930 | |
Fair value, assets | 15 | 19 | |
Other non-current liabilities | Cross currency interest rate swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 264 | 318 | |
Fair value, liabilities | 8 | 13 | |
Other non-current liabilities | Foreign currency forwards | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 46 | 49 | |
Fair value, liabilities | 1 | 1 | |
Other non-current liabilities | Interest rate swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 1,000 | 1,000 | |
Fair value, liabilities | 6 | 10 | |
Other current liabilities | Cross currency interest rate swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 157 | 103 | |
Fair value, liabilities | 7 | 3 | |
Other current liabilities | Foreign currency forwards | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 781 | 671 | |
Fair value, liabilities | 11 | 23 | |
Other current liabilities | Foreign currency forwards | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 2,677 | 2,934 | |
Fair value, liabilities | 50 | 56 | |
Other current liabilities | Total return swap | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount, liabilities | 219 | 205 | |
Fair value, liabilities | $ 1 | $ 1 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 |
Recurring | ||
Assets [Abstract] | ||
Money market funds | $ 309 | $ 6 |
Investments in equity securities | 13 | 1 |
Investments in debt securities | 20 | |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Money market funds | 309 | 6 |
Investments in equity securities | 13 | 1 |
Investments in debt securities | 0 | |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Investments in equity securities | 0 | 0 |
Investments in debt securities | 0 | |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Investments in equity securities | 0 | 0 |
Investments in debt securities | 20 | |
Recurring | Foreign currency forwards | ||
Assets [Abstract] | ||
Derivative asset | 16 | 20 |
Liabilities [Abstract] | ||
Derivative liability | 62 | 80 |
Recurring | Foreign currency forwards | Level 1 | ||
Assets [Abstract] | ||
Derivative asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Foreign currency forwards | Level 2 | ||
Assets [Abstract] | ||
Derivative asset | 16 | 20 |
Liabilities [Abstract] | ||
Derivative liability | 62 | 80 |
Recurring | Foreign currency forwards | Level 3 | ||
Assets [Abstract] | ||
Derivative asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Cross currency interest rate swaps | ||
Assets [Abstract] | ||
Derivative asset | 9 | 16 |
Liabilities [Abstract] | ||
Derivative liability | 15 | 16 |
Recurring | Cross currency interest rate swaps | Level 1 | ||
Assets [Abstract] | ||
Derivative asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Cross currency interest rate swaps | Level 2 | ||
Assets [Abstract] | ||
Derivative asset | 9 | 16 |
Liabilities [Abstract] | ||
Derivative liability | 15 | 16 |
Recurring | Cross currency interest rate swaps | Level 3 | ||
Assets [Abstract] | ||
Derivative asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Warrants | ||
Assets [Abstract] | ||
Derivative asset | 3 | |
Recurring | Warrants | Level 1 | ||
Assets [Abstract] | ||
Derivative asset | 0 | |
Recurring | Warrants | Level 2 | ||
Assets [Abstract] | ||
Derivative asset | 3 | |
Recurring | Warrants | Level 3 | ||
Assets [Abstract] | ||
Derivative asset | 0 | |
Recurring | Interest rate swaps | ||
Liabilities [Abstract] | ||
Derivative liability | 6 | 10 |
Recurring | Interest rate swaps | Level 1 | ||
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Interest rate swaps | Level 2 | ||
Liabilities [Abstract] | ||
Derivative liability | 6 | 10 |
Recurring | Interest rate swaps | Level 3 | ||
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Total return swap | ||
Liabilities [Abstract] | ||
Derivative liability | 1 | 1 |
Recurring | Total return swap | Level 1 | ||
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Total return swap | Level 2 | ||
Liabilities [Abstract] | ||
Derivative liability | 1 | 1 |
Recurring | Total return swap | Level 3 | ||
Liabilities [Abstract] | ||
Derivative liability | 0 | $ 0 |
Carrying Value | ||
Liabilities [Abstract] | ||
Fair value of long-term notes outstanding | 13,400 | |
Estimate of Fair Value Measurement | ||
Liabilities [Abstract] | ||
Carrying value of long-term notes outstanding | $ 12,200 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 38.20% | 3.60% |
Income taxes paid | $ 16 | $ 92 |
Amount of decrease that is reasonably possible due to anticipated U.S. federal income tax audit settlements | $ 110 |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Components of net periodic benefit costs [Abstract] | ||
Total net periodic pension costs (income) | $ (45) | $ (34) |
Employer cash contributions to defined benefit pension plans | 10 | |
Expected employer cash contributions to defined benefit plan in current fiscal year | 29 | |
Selling, general and administrative expenses | ||
Components of net periodic benefit costs [Abstract] | ||
Service costs | 2 | 2 |
Other income | ||
Components of net periodic benefit costs [Abstract] | ||
Interest costs | 33 | 35 |
Expected returns on plan assets/other | (80) | (71) |
UNITED STATES | ||
Components of net periodic benefit costs [Abstract] | ||
Profit sharing provision expense | 57 | 58 |
Foreign Plan | ||
Components of net periodic benefit costs [Abstract] | ||
Cost recognized in the consolidated condensed statements of earnings | $ 30 | $ 38 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 21,136 | $ 24,152 |
Total other comprehensive income | 94 | 600 |
Ending Balance | 20,563 | 24,314 |
Pension/ post-retirement obligations | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (748) | (48) |
Other comprehensive income (loss) before reclassification adjustments | 17 | (12) |
Amounts reclassified from AOCI | (2) | 2 |
Tax benefit (provision) | (4) | 2 |
Total other comprehensive income | 11 | (7) |
Ending Balance | (736) | (55) |
Unrealized gain (loss) on cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (31) | (24) |
Other comprehensive income (loss) before reclassification adjustments | 4 | (1) |
Amounts reclassified from AOCI | 1 | 1 |
Tax benefit (provision) | (1) | 0 |
Total other comprehensive income | 4 | 0 |
Ending Balance | (27) | (24) |
Net investment hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (34) | 55 |
Other comprehensive income (loss) before reclassification adjustments | (14) | (55) |
Amounts reclassified from AOCI | 0 | 0 |
Tax benefit (provision) | 8 | 13 |
Total other comprehensive income | (7) | (42) |
Ending Balance | (41) | 14 |
Share of OCI of equity method investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (10) | 3 |
Other comprehensive income (loss) before reclassification adjustments | 7 | (10) |
Amounts reclassified from AOCI | 0 | 0 |
Tax benefit (provision) | (1) | 2 |
Total other comprehensive income | 5 | (8) |
Ending Balance | (5) | 5 |
Cumulative translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (2,948) | (3,884) |
Other comprehensive income (loss) before reclassification adjustments | 72 | 642 |
Amounts reclassified from AOCI | 3 | 0 |
Tax benefit (provision) | 0 | 0 |
Total other comprehensive income | 75 | 642 |
Ending Balance | (2,873) | (3,242) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (3,771) | (3,897) |
Other comprehensive income (loss) before reclassification adjustments | 85 | 564 |
Amounts reclassified from AOCI | 2 | 3 |
Tax benefit (provision) | 1 | 17 |
Total other comprehensive income | 88 | 585 |
Ending Balance | $ (3,682) | $ (3,313) |
Segment reporting (Details)
Segment reporting (Details) $ in Millions | 3 Months Ended | |
Nov. 30, 2020USD ($)segment | Nov. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Sales | $ 36,307 | $ 34,339 |
Adjusted operating income | 1,318 | 1,463 |
Adjustments to equity earnings (loss) in AmerisourceBergen | (1,481) | (80) |
Acquisition-related amortization | (116) | (118) |
Transformational cost management | (104) | (86) |
LIFO provision | (33) | (33) |
Acquisition-related costs | (23) | (124) |
Store optimization | 0 | (9) |
Operating income (loss) | (440) | 1,013 |
Reportable Segments | Retail Pharmacy USA | ||
Segment Reporting Information [Line Items] | ||
Sales | 27,163 | 26,133 |
Adjusted operating income | 989 | 1,155 |
Reportable Segments | Retail Pharmacy International | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,574 | 2,745 |
Adjusted operating income | 84 | 79 |
Reportable Segments | Pharmaceutical Wholesale | ||
Segment Reporting Information [Line Items] | ||
Sales | 7,125 | 6,007 |
Adjusted operating income | 244 | 229 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Sales | (555) | (545) |
Adjusted operating income | $ 1 | $ 0 |
Sales (Details)
Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 36,307 | $ 34,339 |
Reportable Segments | Retail Pharmacy USA | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 27,163 | 26,133 |
Reportable Segments | Retail Pharmacy USA | Pharmacy | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 20,869 | 19,705 |
Reportable Segments | Retail Pharmacy USA | Retail | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 6,294 | 6,428 |
Reportable Segments | Retail Pharmacy International | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 2,574 | 2,745 |
Reportable Segments | Retail Pharmacy International | Pharmacy | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,002 | 1,001 |
Reportable Segments | Retail Pharmacy International | Retail | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,572 | 1,744 |
Reportable Segments | Pharmaceutical Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 7,125 | 6,007 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ (555) | $ (545) |
Related parties (Details)
Related parties (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |||
Purchases, net | $ 15,441 | $ 14,476 | |
Trade accounts payable, net | $ 6,753 | $ 6,390 |
Supplemental information - Narr
Supplemental information - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable from related party | $ 1,200 | $ 1,200 | |
Accumulated depreciation and amortization on property, plant, and equipment | 12,700 | 12,500 | |
Restricted cash (included in other current assets) | 228 | 230 | |
Redeemable noncontrolling interest | 178 | 0 | |
Cumulative translation adjustments | $ 3 | ||
Antidilutive securities excluded from EPS calculations (in shares) | 18.5 | 16.7 | |
Incremental antidilutive securities excluded from EPS calculations (in shares) | 0.5 | ||
Trade Accounts Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables | $ 6,600 | $ 6,000 |
Supplemental information - Depr
Supplemental information - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Depreciation expense | $ 360 | $ 359 |
Intangible asset and other amortization | 115 | 118 |
Total depreciation and amortization expense | $ 475 | $ 477 |
Supplemental information - Summ
Supplemental information - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 1,111 | $ 516 | ||
Restricted cash (included in other current assets) | 228 | 230 | ||
Cash, cash equivalents and restricted cash | $ 1,339 | $ 746 | $ 1,000 | $ 1,207 |
Supplemental information - Su_2
Supplemental information - Summary of Dividends per Share (Details) - $ / shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.4675 | $ 0.4575 |
Subsequent event (Details)
Subsequent event (Details) shares in Millions, $ in Millions | Jan. 06, 2021 | Jan. 07, 2021clinic | Jul. 31, 2020USD ($)clinic | Jan. 07, 2021USD ($) | Sep. 30, 2021USD ($)shares |
VillageMD | |||||
Subsequent Event [Line Items] | |||||
Aggregate commitment to acquire equity investments | $ 1,000 | ||||
Commitment term | 3 years | ||||
Investment period | 5 years | ||||
Payments to acquire equity investments | $ 250 | ||||
VillageMD | Minimum | |||||
Subsequent Event [Line Items] | |||||
Number of clinics expected to be opened | clinic | 500 | ||||
VillageMD | Maximum | |||||
Subsequent Event [Line Items] | |||||
Number of clinics expected to be opened | clinic | 700 | ||||
Discontinued Operations, Disposed of by Sale | Business | Forecast | |||||
Subsequent Event [Line Items] | |||||
Consideration from sale | $ 6,500 | ||||
Proceeds from sale | $ 6,275 | ||||
Shares acquired upon sale (in shares) | shares | 2 | ||||
Subsequent Event | VillageMD | |||||
Subsequent Event [Line Items] | |||||
Commitment term | 4 years | ||||
Payments to acquire equity investments | $ 750 | ||||
Subsequent Event | VillageMD | Minimum | |||||
Subsequent Event [Line Items] | |||||
Number of clinics expected to be opened | clinic | 600 | ||||
Subsequent Event | VillageMD | Maximum | |||||
Subsequent Event [Line Items] | |||||
Number of clinics expected to be opened | clinic | 700 | ||||
Subsequent Event | AmerisourceBergen Corporation | |||||
Subsequent Event [Line Items] | |||||
Term of pharmaceutical distribution agreement | 3 years |