Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2023 | Sep. 29, 2023 | Feb. 28, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2023 | ||
Current Fiscal Year End Date | --08-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 25.4 | ||
Entity Common Stock, Shares Outstanding (in shares) | 863,914,593 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement for our Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year ended August 31, 2023 are incorporated by reference into Part III of this Form 10-K as indicated herein. | ||
Entity Central Index Key | 0001618921 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | WBA | ||
Security Exchange Name | NASDAQ | ||
3.600% Walgreens Boots Alliance, Inc. notes due 2025 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.600% Walgreens Boots Alliance, Inc. notes due 2025 | ||
Trading Symbol | WBA25 | ||
Security Exchange Name | NASDAQ | ||
2.125% Walgreens Boots Alliance, Inc. notes due 2026 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 2.125% Walgreens Boots Alliance, Inc. notes due 2026 | ||
Trading Symbol | WBA26 | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Aug. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Location | Chicago, Illinois |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 728 | $ 1,358 |
Marketable securities | 11 | 1,114 |
Accounts receivable, net | 5,381 | 5,017 |
Inventories | 8,257 | 8,353 |
Other current assets | 1,127 | 1,059 |
Total current assets | 15,503 | 16,902 |
Non-current assets: | ||
Property, plant and equipment, net | 11,587 | 11,729 |
Operating lease right-of-use assets | 21,667 | 21,259 |
Goodwill | 28,187 | 22,280 |
Intangible assets, net | 13,635 | 10,730 |
Equity method investments (see Note 6) | 3,497 | 5,495 |
Other non-current assets | 2,550 | 1,730 |
Total non-current assets | 81,125 | 73,222 |
Total assets | 96,628 | 90,124 |
Current liabilities: | ||
Short-term debt | 917 | 1,059 |
Trade accounts payable (see Note 19) | 12,635 | 11,255 |
Operating lease obligations | 2,347 | 2,286 |
Accrued expenses and other liabilities | 8,426 | 7,899 |
Income taxes | 209 | 84 |
Total current liabilities | 24,535 | 22,583 |
Non-current liabilities: | ||
Long-term debt | 8,145 | 10,615 |
Operating lease obligations | 22,124 | 21,517 |
Deferred income taxes | 1,318 | 1,442 |
Accrued litigation obligations | 6,261 | 551 |
Other non-current liabilities | 5,757 | 3,009 |
Total non-current liabilities | 43,605 | 37,134 |
Commitments and contingencies (see Note 11) | ||
Total liabilities | 68,140 | 59,717 |
Redeemable non-controlling interests | 167 | 1,042 |
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 August 31, 2023 and August 31, 2022 | 12 | 12 |
Paid-in capital | 10,661 | 10,950 |
Retained earnings | 33,058 | 37,801 |
Accumulated other comprehensive loss | (2,993) | (2,805) |
Treasury stock, at cost; 308,839,832 shares at August 31, 2023 and 307,874,161 shares at August 31, 2022 | (20,717) | (20,683) |
Total Walgreens Boots Alliance, Inc. shareholders’ equity | 20,020 | 25,275 |
Non-controlling interests | 8,302 | 4,091 |
Total equity | 28,322 | 29,366 |
Total liabilities, redeemable non-controlling interests and equity | $ 96,628 | $ 90,124 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Aug. 31, 2023 | Aug. 31, 2022 |
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) | 308,839,832 | 307,874,161 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Adoption of new accounting standards | Common stock | Treasury stock | Paid-in capital | Accumulated other comprehensive loss | Retained earnings | Retained earnings Adoption of new accounting standards | Non-controlling interests | Non-controlling interests Adoption of new accounting standards |
Beginning balance (in shares) at Aug. 31, 2020 | 865,603,519 | |||||||||
Beginning balance at Aug. 31, 2020 | $ 21,136 | $ (6) | $ 12 | $ (20,575) | $ 10,761 | $ (3,771) | $ 34,210 | $ (3) | $ 498 | $ (3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 2,512 | 2,542 | (31) | |||||||
Other comprehensive (loss) income, net of tax | 1,669 | 1,663 | 6 | |||||||
Dividends declared and distributions | (1,629) | (1,629) | ||||||||
Treasury stock purchases (in shares) | (3,000,000) | |||||||||
Treasury stock purchases | (110) | (110) | ||||||||
Employee stock purchase and option plans (in shares) | 2,770,117 | |||||||||
Employee stock purchase and option plans | 59 | 92 | (33) | |||||||
Stock-based compensation | 155 | 155 | ||||||||
Business combination | 120 | 120 | ||||||||
Redeemable non-controlling interests redemption price adjustments and other | (84) | (15) | (69) | |||||||
Ending balance (in shares) at Aug. 31, 2021 | 865,373,636 | |||||||||
Ending balance at Aug. 31, 2021 | 23,822 | $ 12 | (20,593) | 10,988 | (2,109) | 35,121 | 402 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 4,138 | 4,337 | (199) | |||||||
Other comprehensive (loss) income, net of tax | (728) | (696) | (32) | |||||||
Dividends declared and distributions | (1,664) | (1,657) | (7) | |||||||
Treasury stock purchases (in shares) | (3,910,000) | |||||||||
Treasury stock purchases | (187) | (187) | ||||||||
Employee stock purchase and option plans (in shares) | 3,175,821 | |||||||||
Employee stock purchase and option plans | 27 | 97 | (70) | |||||||
Stock-based compensation | 228 | 133 | 95 | |||||||
Acquisition of non-controlling interests | (44) | 74 | (118) | |||||||
Business combination | 3,944 | 3,944 | ||||||||
Redeemable non-controlling interests redemption price adjustments and other | (170) | (175) | 5 | |||||||
Ending balance (in shares) at Aug. 31, 2022 | 864,639,457 | |||||||||
Ending balance at Aug. 31, 2022 | 29,366 | $ 12 | (20,683) | 10,950 | (2,805) | 37,801 | 4,091 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (3,507) | (3,080) | (427) | |||||||
Other comprehensive (loss) income, net of tax | (176) | (189) | 13 | |||||||
Dividends declared and distributions | (1,714) | (1,663) | (51) | |||||||
Treasury stock purchases (in shares) | (4,438,228) | |||||||||
Treasury stock purchases | (150) | (150) | ||||||||
Employee stock purchase and option plans (in shares) | 3,472,557 | |||||||||
Employee stock purchase and option plans | 45 | 116 | (71) | |||||||
Stock-based compensation | 191 | 58 | 133 | |||||||
Acquisition of non-controlling interests | 184 | 171 | 13 | |||||||
Business combination | 4,518 | (16) | 4,534 | |||||||
Redeemable non-controlling interests redemption price adjustments and other | (435) | (431) | (4) | |||||||
Ending balance (in shares) at Aug. 31, 2023 | 863,673,786 | |||||||||
Ending balance at Aug. 31, 2023 | $ 28,322 | $ 12 | $ (20,717) | $ 10,661 | $ (2,993) | $ 33,058 | $ 8,302 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 139,081 | $ 132,703 | $ 132,509 |
Cost of sales | 112,009 | 104,437 | 104,442 |
Gross profit | 27,072 | 28,265 | 28,067 |
Selling, general and administrative expenses | 34,205 | 27,295 | 24,586 |
Equity earnings (loss) in Cencora | 252 | 418 | (1,139) |
Operating (loss) income | (6,882) | 1,387 | 2,342 |
Other income, net | 2,043 | 2,998 | 558 |
(Loss) earnings before interest and income tax (benefit) provision | (4,839) | 4,385 | 2,900 |
Interest expense, net | 580 | 400 | 905 |
(Loss) earnings before income tax (benefit) provision | (5,419) | 3,985 | 1,995 |
Income tax (benefit) provision | (1,858) | (30) | 667 |
Post-tax earnings from other equity method investments | 33 | 50 | 627 |
Net (loss) earnings from continuing operations | (3,528) | 4,065 | 1,955 |
Net earnings from discontinued operations | 0 | 0 | 557 |
Net (loss) earnings | (3,528) | 4,065 | 2,512 |
Net loss attributable to non-controlling interests - continuing operations | (448) | (271) | (39) |
Net earnings attributable to non-controlling interests - discontinued operations | 0 | 0 | 9 |
Net Income (Loss) Attributable to Parent, Total | (3,080) | 4,337 | 2,542 |
Net (loss) earnings attributable to Walgreens Boots Alliance, Inc.: | |||
Continuing operations | (3,080) | 4,337 | 1,994 |
Discontinued operations | $ 0 | $ 0 | $ 548 |
Basic net (loss) earnings per common share: | |||
Continuing operations (in dollars per share) | $ (3.57) | $ 5.02 | $ 2.31 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.63 |
Total (in dollars per share) | (3.57) | 5.02 | 2.94 |
Diluted net (loss) earnings per common share: | |||
Continuing operations (in dollars per share) | (3.57) | 5.01 | 2.30 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.63 |
Total (in dollars per share) | $ (3.57) | $ 5.01 | $ 2.93 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 863.2 | 864.4 | 864.8 |
Diluted (in shares) | 863.2 | 865.9 | 866.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net earnings (loss) | $ (3,528) | $ 4,065 | $ 2,512 |
Other comprehensive (loss) income, net of tax: | |||
Pension/post-retirement obligations | (541) | 203 | 389 |
Unrealized (loss) gain on cash flow hedges | (2) | 7 | 21 |
Net investment hedges (loss) gain | (130) | 248 | (1) |
Movement on available for sale debt securities | (2) | (95) | 96 |
Share of other comprehensive income (loss) of equity method investments | 122 | (226) | (18) |
Currency translation adjustments | 377 | (865) | 1,182 |
Total other comprehensive (loss) income | (176) | (728) | 1,669 |
Total comprehensive (loss) income | (3,704) | 3,337 | 4,181 |
Comprehensive loss attributable to non-controlling interests | (435) | (303) | (25) |
Comprehensive (loss) income attributable to Walgreens Boots Alliance, Inc. | $ (3,269) | $ 3,640 | $ 4,205 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ (3,528) | $ 4,065 | $ 2,512 |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 2,257 | 1,990 | 1,973 |
Deferred income taxes | (2,371) | (366) | 233 |
Stock compensation expense | 385 | 391 | 155 |
(Earnings) loss from equity method investments | (286) | (468) | 498 |
Impairment of intangibles and long-lived assets | 1,293 | 1,214 | 248 |
Loss on early extinguishment of debt | 0 | 6 | 414 |
Gain on previously held investment interests | 0 | (2,576) | 0 |
Gain on sale of equity method investments | (1,855) | (559) | (321) |
Gain on sale-leaseback transactions | (925) | (619) | (367) |
Other | (157) | 326 | (218) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 72 | 808 | (1,451) |
Inventories | 287 | (433) | 165 |
Other current assets | (188) | (72) | (46) |
Trade accounts payable | 1,243 | 244 | 842 |
Accrued expenses and other liabilities | (561) | (138) | 1,046 |
Income taxes | 441 | (51) | 160 |
Accrued litigation obligations | 6,378 | 0 | 0 |
Other non-current assets and liabilities | (228) | 137 | (288) |
Net cash provided by operating activities | 2,258 | 3,899 | 5,555 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (2,117) | (1,734) | (1,379) |
Proceeds from sale-leaseback transactions | 1,767 | 1,308 | 856 |
Proceeds from sale of business, net of cash disposed | 0 | 0 | 5,527 |
Proceeds from sale of other assets | 4,495 | 1,334 | 453 |
Business, investment and asset acquisitions, net of cash acquired | (7,313) | (2,189) | (1,431) |
Other | 75 | 216 | 46 |
Net cash (used for) provided by investing activities | (3,094) | (1,064) | 4,072 |
Cash flows from financing activities: | |||
Net change in short-term debt with maturities of 3 months or less | (1) | (11) | (909) |
Proceeds from debt | 6,276 | 11,958 | 12,726 |
Payments of debt | (8,978) | (8,360) | (15,257) |
Acquisition of non-controlling interests | (1,316) | (2,108) | 0 |
Proceeds from issuance of non-controlling interests | 2,725 | 0 | 0 |
Proceeds from variable prepaid forward | 2,568 | 0 | 0 |
Treasury stock purchases | (150) | (187) | (110) |
Proceeds related to employee stock plans, net | 45 | 27 | 59 |
Cash dividends paid | (1,659) | (1,659) | (1,617) |
Early debt extinguishment | 0 | (1,591) | (3,687) |
Other | (396) | 432 | (241) |
Net cash used for financing activities | (887) | (1,499) | (9,036) |
Effect of exchange rate changes on cash, cash equivalents, marketable securities and restricted cash | 20 | (47) | (66) |
Changes in cash, cash equivalents, marketable securities and restricted cash | |||
Net (decrease) increase in cash, cash equivalents, marketable securities and restricted cash | (1,702) | 1,288 | 525 |
Cash, cash equivalents, marketable securities and restricted cash at beginning of period | 2,558 | 1,270 | 746 |
Cash, cash equivalents, marketable securities and restricted cash at end of period | $ 856 | $ 2,558 | $ 1,270 |
Summary of major accounting pol
Summary of major accounting policies | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of major accounting policies | Summary of major accounting policies Organization Walgreens Boots Alliance Inc. and its subsidiaries (the “Company”), is an integrated healthcare, pharmacy and retail leader with a 170-year heritage of caring for customers and patients. Its operations are conducted through three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare. See Note 17. Segment reporting and Note 18. Sales, for further information. Basis of presentation The Consolidated Financial Statements include all subsidiaries in which the Company holds a controlling interest and certain Variable Interest Entities (VIEs) for which the Company is the primary beneficiary. 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 preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“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. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. Adverse global macroeconomic conditions, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payor and customer relationships and terms, strategic transactions including acquisitions, dispositions and changes in laws and regulations 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. On June 1, 2021, the Company completed the sale of the majority of the Company's Alliance Healthcare business as well as a portion of the Company’s retail pharmacy international businesses in Europe (“Disposal Group”) to Cencora, Inc. (“Cencora”), formerly known as AmerisourceBergen Corporation (“AmerisourceBergen”). The Disposal Group met the criteria to be reported as discontinued operations. Therefore, the operating results of the Disposal Group are reported as discontinued operations for fiscal 2021. Unless otherwise specified, disclosures in these Consolidated Financial Statements reflect continuing operations only. See Note 2. Discontinued operations, for further information. Effective as of the first quarter of fiscal 2022, the Company is aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare. In fiscal 2022, the Company changed the name of two reportable segments to better align with the Company’s business activities, structure and strategy. The “United States” segment was renamed to “U.S. Retail Pharmacy” and the “Walgreens Health” segment was renamed to “U.S. Healthcare”. The segment name changes did not result in any change to the composition of the segments and therefore no change to the historical results of segment operations. The information for these segments for all periods included in these consolidated financial statements has been presented using the new names. See Note 17. Segment reporting for further information. Certain amounts in the Consolidated Financial Statements and associated notes may not add due to rounding. Percentages have been calculated using unrounded amounts for all periods presented. Certain prior period data, has been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation. Cash and cash equivalents Cash and cash equivalents include cash on hand, qualifying money market funds, and other highly liquid investments with an original maturity of three months or less. Credit and debit card receivables, which generally settle within one seven Restricted cash and other cash flows from operating activities Restricted cash The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agreements and cash restricted by law and other obligations. The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to total cash, cash equivalents, marketable securities and restricted cash in the Consolidated Statements of Cash Flows for fiscal 2023, 2022 and 2021 (in millions): August 31, 2023 August 31, 2022 August 31, 2021 Cash and cash equivalents $ 728 $ 1,358 $ 559 Marketable securities 11 1,114 634 Cash and cash equivalents - assets held for sale (included in other current assets) 24 — — Restricted cash (included in other current and non-current assets) 93 86 77 Cash, cash equivalents, marketable securities and restricted cash $ 856 $ 2,558 $ 1,270 Other cash flows from operating activities Other cash outflows from operating activities primarily include non-cash adjustments. For fiscal 2023, the adjustments of $157 million primarily include a gain of $83 million from the reclassification of Option Care Health from an equity method investment to an investment in equity securities at fair value. For fiscal 2022, the adjustments of $326 million primarily include impairment of equity method investments and investments in debt and equity securities of $233 million. For fiscal 2021, the adjustments of $218 million primarily include a gain on the sale of the Alliance Healthcare business of $322 million. Accounts receivable Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers and amounts due from third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies). Trade receivables were $4.3 billion and $4.0 billion at August 31, 2023 and 2022, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from Cencora (see Note 19. Related parties), were $1.1 billion at August 31, 2023 and 2022. Charges for the Company’s expected credit losses are recognized based upon all available information regarding the collectability of receivables, including historical information, current conditions and reasonable and supportable forecasts of future economic conditions over the short contractual life of the receivable. The allowance for expected credit losses for trade receivables at August 31, 2023 and 2022 were $110 million and $66 million, respectively. Inventories The Company values inventories on a lower of cost and net realizable value or market basis. Inventories include product costs, inbound freight, direct labor, warehousing costs for retail pharmacy operations, and distribution costs of products, and are reduced by vendor allowances not classified as a reduction of advertising expense. The Company’s U.S. Retail Pharmacy segment inventory is accounted for using the last-in-first-out (“LIFO”) method. The total carrying value of the segment inventory accounted for under the LIFO method was $6.2 billion and $6.5 billion at August 31, 2023 and 2022, respectively. At August 31, 2023 and 2022, U.S. Retail Pharmacy segment inventory would have been greater by $3.6 billion and $3.4 billion, respectively, if it had been valued on a lower of first-in-first-out (“FIFO”) cost and net realizable value. The Company’s International segment inventory is accounted for using average cost and the FIFO method. The total carrying value of the inventory for International segment was $2.0 billion and $1.8 billion at August 31, 2023 and 2022, respectively. Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Major repairs, which extend the useful life of an asset, are capitalized; routine maintenance and repairs are charged against earnings. Depreciation is provided on a straight-line basis over the estimated useful lives of owned assets. Leasehold improvements, equipment under finance lease and finance lease properties are amortized over their respective estimated useful life or over the term of the lease, whichever is shorter. The majority of the Company’s fixtures and equipment is depreciated under the composite method of depreciation. The following table summarizes the Company’s property, plant and equipment (in millions) and estimated useful lives (in years): Estimated useful life 2023 2022 Land and land improvements 20 $ 1,778 $ 2,333 Buildings and building improvements 3 to 50 6,683 6,996 Fixtures and equipment 3 to 20 9,782 9,375 Capitalized system development costs and software 3 to 10 3,821 3,087 Assets under construction 1,400 1,785 Finance lease properties 1,075 996 $ 24,540 $ 24,572 Less: accumulated depreciation and amortization 12,953 12,843 Balance at end of year $ 11,587 $ 11,729 The Company capitalizes application development stage costs for internally developed software. Amortization expense for capitalized system development costs and software was $371 million, $307 million and $284 million in fiscal 2023, 2022 and 2021, respectively. Unamortized costs were $1.5 billion and $1.1 billion at August 31, 2023 and 2022, respectively. Depreciation and amortization expense for property, plant and equipment, including capitalized system development costs and software was $1.4 billion for fiscal 2023, 2022 and 2021. Leases The Company leases certain retail stores, clinics, warehouses, distribution centers, office space, land and equipment. Initial terms for leased premises in the United States are typically 10 to 25 years, followed by additional terms containing renewal options 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 lease term of real estate leases includes renewal options that are reasonably certain of being exercised. Options to extend are considered reasonably certain of being exercised based on evaluation if there are significant investments within the leased property which have useful lives greater than the non-cancelable lease term, performance of the underlying store and the Company’s economic and strategic initiatives. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheets. The Company determines if an arrangement contains a lease at the inception of a contract. The lease classification is determined at the commencement date. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease during the lease term. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments during the lease term. Lease commencement is the date the Company has the right to control the property. The Company utilizes its incremental borrowing rate to discount the lease payments. The incremental borrowing rate is based on the Company's estimated rate of interest for a collateralized borrowing over a similar term as the lease term. The operating lease right-of-use assets also include lease payments made before commencement, lease incentives and are recorded net of impairment. Operating leases are expensed on a straight line basis over the lease term. The Company accounts for lease components and non-lease components as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the right-of-use assets or lease liabilities. These are expensed as incurred. The Company has real estate leases which require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs and hence are not included in the lease payments used to calculate lease liability. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. The Company does not separately account for the land portion of the leases involving land and building. Finance leases are recognized within property, plant and equipment and as a finance lease liability within accrued expenses and other liabilities and other non-current liabilities. See Note 5. Leases, for further information. Business combinations The Company allocates the fair value of purchase consideration to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires estimates and the use of valuation techniques when a market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to fair value of the purchase consideration and the allocation of purchase consideration to all tangible and intangible assets acquired and identified and liabilities assumed. Variable interest entities The Company consolidates certain subsidiaries of Village Practice Management Company Holdings, LLC through its principal subsidiary Village Practice Management Company, LLC (“VillageMD”) which are clinical entities and managed services organizations (collectively, the “Entities”) where VillageMD has a controlling financial interest. The Entities were established to employ healthcare providers, contract with payors, or to deliver healthcare services to patients and are designed to comply with certain regulatory and legal requirements. The Company generally has no equity interests in the Entities. The Entities are variable interest entities because there is insufficient equity at-risk in the Entities to finance their operations without additional financial support and the equity holders of the Entities generally lack the characteristics of a controlling financial interest. The Company's service agreements (“SAs”) are variable interests in the Entities because they transfer substantially all the residual risks and rewards of ownership in the Entities to the Company. The Company has the power to direct the activities of the Entities that most significantly impact their economic performance through the SAs. The activities that most significantly impact the economic performance of the Entities pertain to establishing the scope of services provided, fees charged for clinical services, negotiation and execution of contracts and managing policies and procedures related to management of the Company’s patient population. The SAs generally provide the Company with rights to substantially all the earnings of the Entities and obligate the Company to fund losses of the Entities. As a result, the Company is the primary beneficiary of the Entities and consolidates the Entities. The assets and liabilities of the Entities and the Entities’ results of operations are presented in the Company’s consolidated financial statements. The Entities’ revenues consist of amounts recognized for services provided to patients. Cost of sales and Selling, general and administrative expenses consist primarily of provider compensation expenses as well as clinical operating and support costs. The Company is also exposed to the risk of loss from certain Entities’ involvement with risk-based arrangements. There are generally no restrictions on the Entities' assets or on the settlement of its liabilities. The assets of the Entities can be used to settle obligations of the Company and creditors of Entities have recourse to the general credit of the Company. The following table summarizes the Entities' assets and liabilities (in millions) as of August 31, 2023 and 2022, respectively. August 31, 2023 August 31, 2022 Total assets $ 881 $ 313 Total liabilities 486 142 Goodwill and indefinite-lived intangible assets Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in business combinations. Goodwill is assigned to reporting units. Reporting units are aggregated and deemed a single reporting unit if the components have similar economic characteristics. Acquired intangible assets are recorded at fair value. 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 could more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value. As part of the Company’s impairment analysis, fair value of a reporting unit is generally determined using the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping, as well as recent guideline transactions. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions with respect to the business and financial performance of the Company's reporting units. These estimates and assumptions primarily include, but are not limited to the selection of appropriate peer group companies, control premiums appropriate for acquisitions in the industries in which we compete, discount rates, terminal growth rates, forecasts of revenue, operating income, depreciation, amortization, working capital requirements and capital expenditures. The Company also compares the sum of estimated fair values of reporting units to the Company’s fair value as implied by the market value of its equity securities. This comparison provides an indication that, in total, assumptions and estimates are reasonable. Future declines in the overall market value of the Company’s equity securities may provide an indication that the fair value of one or more reporting units has declined below its carrying value. Indefinite-lived intangible assets are tested for impairment by comparing the estimated fair value of the asset to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized and the asset is written down to its estimated fair value. Indefinite-lived intangible assets fair values are estimated using the relief from royalty method and multi-period excess earnings method of the income approach. The determination of the fair value of the indefinite-lived intangibles requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to forecasts of revenues and expenses, the selection of appropriate royalty rate and discount rates. See Note 7. Goodwill and other intangible assets, for additional disclosure regarding the Company’s intangible assets. Equity method investments The Company uses the equity method of accounting for equity investments if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of these investees is included in consolidated net earnings. Judgment regarding the level of influence over each equity method investment includes considering key factors such as the Company’s ownership interest, legal form of the investee (e.g. limited liability partnership), representation on the board of directors, participation in policy-making decisions and material intra-entity transactions. The Company evaluates equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified. See Note 6. Equity method investments, for further information. Financial instruments The Company uses derivative instruments to hedge its exposure to market risks, including interest rate and currency risks, arising from operating and financing risks. In accordance with its risk management policies, the Company does not hold or issue derivative instruments for trading or speculative purposes. Derivatives are recognized on the Consolidated Balance Sheets at their fair values. When the Company becomes a party to a derivative instrument and intends to apply hedge accounting, it formally documents the hedge relationship and the risk management objective for undertaking the hedge which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value of a derivative instrument depends on whether the Company had designated it in a qualifying hedging relationship and on the type of hedging relationship. The Company applies the following accounting policies: • Changes in the fair value of a derivative designated as a fair value hedge, along with the gain or loss on the hedged asset or liability attributable to the hedged risk, are recorded in the Consolidated Statements of Earnings in the same line item, generally interest expense, net. • Changes in the fair value of a derivative designated as a cash flow hedge are recorded in accumulated other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income and reclassified into earnings in the period or periods during which the hedged item affects earnings and is presented in the same line item as the earnings effect of the hedged item. • Changes in the fair value of a derivative designated as a hedge of a net investment in a foreign operation are recorded in cumulative translation adjustments within accumulated other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. Recognition in earnings of amounts previously recorded in cumulative translation adjustments is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged investments in foreign operations. • Changes in the fair value of a derivative not designated in a hedging relationship are recognized in the Consolidated Statements of Earnings. Cash receipts or payments on a settlement of a derivative contract are reported in the Consolidated Statements of Cash Flows consistent with the nature of the underlying hedged item. For derivative instruments designated as hedges, the Company assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Highly effective means that cumulative changes in the fair value of the derivative are between 80% and 125% of the cumulative changes in the fair value of the hedged item. In addition, when the Company determines that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When it is probable that a hedged forecasted transaction will not occur, the Company discontinues hedge accounting for the affected portion of the forecasted transaction and reclassifies any gains or losses in accumulated other comprehensive income (loss) to earnings in the Consolidated Statement of Earnings. When a derivative in a hedge relationship is terminated or the hedged item is sold, extinguished or terminated, hedge accounting is discontinued prospectively. Pension and post-retirement benefits The Company has various defined benefit pension plans that cover some of its non-U.S. employees. The Company also has a post-retirement healthcare plan that covers qualifying U.S. employees. Eligibility and the level of benefits for these plans vary depending on participants’ status, date of hire and or length of service. Pension and post-retirement healthcare plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts. These assumptions include discount rates, healthcare cost trends, long-term return on plan assets, retirement rates, mortality rates and other factors. The Company funds its pension plans in accordance with applicable regulations. The Company records the service cost component of net pension cost and net post-retirement healthcare benefit cost in Selling, general and administrative expenses in the Consolidated Statement of Earnings. The Company records all other net cost components of net pension cost and net post-retirement benefit cost in Other income, net in the Consolidated Statement of Earnings. The post-retirement healthcare plan is not funded. See Note 14. Retirement benefits, for further information. Redeemable non-controlling interests The Company presents non-controlling interests in temporary equity within its Consolidated Balance Sheets if it is redeemable at a fixed or determinable price on a fixed or determinable date on the option of the holder, or upon the occurrence of an event that is not solely within the control of the Company. The carrying amount of the redeemable non-controlling interests is equal to the greater of the carrying value of non-controlling interests adjusted each reporting period for income or loss attributable to the non-controlling interests as well as any applicable distributions made or the redemption value. Re-measurements to the redemption value of the redeemable non-controlling interests are recognized in Paid-in capital within the Consolidated Balance Sheets. The Company reports the portion of its earnings or loss for redeemable non-controlling interest as Net loss attributable to non-controlling interests - continuing operations, in the Consolidated Statements of Earnings. The following is a roll forward of the redeemable non-controlling interests in the Consolidated Balance Sheets (in millions): 2023 2022 2021 Opening balance $ 1,042 $ 319 $ — Recognition upon acquisition of subsidiary 1 — 2,684 309 Acquisition of non-controlling interests 2 — (2,047) — Net loss attributable to Redeemable non-controlling interests (21) (73) (3) Redemption price adjustments 3 442 179 19 Reclassifications to Accrued expenses and other liabilities 4 (1,314) — — Other 18 (20) (6) Ending balance $ 167 $ 1,042 $ 319 1. Fiscal 2022 includes $1.9 billion of redeemable non-controlling interests, representing the maximum purchase price to redeem non-controlling units in VillageMD for cash, and redeemable non-controlling interests in Shields Health Solutions Parent, LLC (“Shields”) and CCX Next, LLC (“CareCentrix”). On November 24, 2021, VillageMD commenced a tender offer to purchase up to $1.9 billion of units in VillageMD for cash. The tender offer was fully subscribed and settled on December 28, 2021. The tender offer was funded by cash proceeds provided to VillageMD pursuant to the Unit Purchase Agreement. 2. Fiscal 2022 includes $1.9 billion paid to existing shareholders of VillageMD as part of the fully subscribed tender offer and the acquisition of the remaining 30% non-controlling equity interests in the pharmaceutical wholesale business in Germany. 3. Remeasurement of non-controlling interests, probable of redemption but not currently redeemable, to their redemption value, is recorded to Paid-in capital in the Consolidated Balance Sheets. In fiscal 2023, Shields and CareCentrix redeemable non-controlling interests were recorded to redemption value. 4. Represents the reclassification of the Shields and CareCentrix redeemable non-controlling interests to Accrued expenses and other liabilities in the Consolidated Balance Sheets resulting from the Company's full acquisition of Shields and CareCentrix. See Note 3. Acquisitions and other investments, for further information. Non-controlling interests The Company presents non-controlling interests as a component of equity on its Consolidated Balance Sheets and reports the portion of earnings or losses for non-controlling interests as net earnings attributable to non-controlling interests in the Consolidated Statements of Earnings. Non-controlling interests primarily relates to VillageMD. As of August 31, 2023 and 2022, VillageMD non-controlling interests comprise 16.0 million and 3.9 million preferred units and 6.5 million and 6.1 million common units, including incentive units, respectively. Preferred units non-controlling interests have an aggregate liquidation preference of $4.9 billion. All preferred units are convertible into VillageMD common units and certain preferred units are also subject to redemption features controlled by the Company. All preferred units participate in dividends declared by the VillageMD board in the ordinary course of business and in distributions upon a winding-up or change in control of VillageMD. Certain preferred units also participate in cumulative compounding dividends that accumulate at a rate of 5.5% per annum based on the adjusted issue price of the preferred unit and may be settled in cash or shares at the option of the preferred unit holder. The Company attributes VillageMD earnings and losses to non-controlling interests using the hypothetical-liquidation book value (“HLBV”) method, which is a balance sheet-oriented approach. Under the HLBV method, VillageMD income and losses are attributed to each unit based on changes to the amounts that each unit would hypothetically receive at each period end under the liquidation provisions of the VillageMD Amended and Restated Limited Liability Company Agreement, assuming the net assets of VillageMD were liquidated at their carrying values determined in accordance with GAAP. The proportion of earnings and losses attributed to non-controlling interests under HLBV is subject to change as VillageMD net assets change. Currency Assets and liabilities of non-U.S. dollar functional currency operations are translated into U.S. dollars at end-of-period exchange rates while revenues, expenses and cash flows are translated at average monthly exchange rates over the period. Equity is translated primarily at historical exchange rates and the resulting cumulative translation adjustments are included as a component of Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Assets and liabilities not denominated in the functional currency are remeasured into the functional currency at end-of-period exchange rates, except for non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Revenues and expenses are recorded at average monthly exchange rates over the period, except for those expenses related to non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are generally included in Other income, net within the Consolidated Statements of Earnings. Commitments and contingencies The Company assesses its liabilities and contingencies for outstanding legal proceedings and reserves are established on a case-by-case basis for those legal claims for which management concludes that it is probable that a loss will be incurred and that the amount of such loss can be reasonably estimated. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. With respect to litigation and other lega |
Discontinued operations
Discontinued operations | 12 Months Ended |
Aug. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | Discontinued operations On June 1, 2021, the Company completed the sale of Alliance Healthcare, for total consideration of $6.9 billion, which included cash consideration of $6.7 billion, subject to net working capital and net cash adjustments, and 2 million shares of Cencora common stock (the “Alliance Healthcare Sale”). The Company recorded a gain before currency translation adjustments of $1.1 billion and a net gain on disposal of $ 322 million 2021 Fair value of proceeds from disposition 1 $ 6.9 Net assets disposed 5.8 Gain before currency translation adjustments 1.1 Currency translation loss released due to disposition (0.8) Net gain on disposal of discontinued operation 2 $ 0.3 1. Includes base consideration of $6.275 billion adjusted for net working capital and net cash adjustments as set forth in the Share Purchase Agreement. 2. The Company recorded insignificant amount of tax expense due to utilization of capital losses. As of August 31, 2021, Other current assets included a $98 million receivable for purchase price consideration due from Cencora that was subject to change upon the finalization of net working capital adjustments. In fiscal 2022, the Company finalized the net working capital adjustments and reduced the receivable by $38 million with a corresponding charge in Other income, net within the Consolidated Statements of Earnings. The operating results of the Disposal Group are reported as discontinued operations as the disposition reflected a strategic shift that had a major effect on the Company’s operations and financial results. Results of discontinued operations for prior period were as follows (in millions): 2021 Sales $ 16,070 Cost of sales 14,486 Gross profit 1,584 Selling, general and administrative expense 1 1,254 Operating income from discontinued operations 329 Other income, net 2 314 Interest expense, net (23) Earnings before income tax – discontinued operations 621 Income tax provision 78 Post-tax earnings from other equity method investments 15 Net earnings from discontinued operations $ 557 1. Includes $44 million of divestiture related costs incurred post completion of the Alliance Healthcare Sale. 2. Includes $322 million of gain on sale of discontinued operations. Sales in prior years from the Disposal Group to the Company's continuing operations aggregate to (in millions): 2021 1 Sales $ 1,385 1. Sales in fiscal 2021 until date of disposal. The following table presents cash flows for discontinued operations in prior periods (in millions): 2021 Cash used for operating activities - discontinued operations $ (132) Cash used for investing activities - discontinued operations (58) See Note 6. Equity method investments and Note 19. Related parties, for more information on the Company's equity method investment in Cencora and the Company's continuing involvement with Cencora. |
Acquisitions and other Investme
Acquisitions and other Investments | 12 Months Ended |
Aug. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and other Investments | Acquisitions and other investments Summit acquisition On January 3, 2023, VillageMD, through its parent company, following an internal reorganization, completed the acquisition of WP CityMD TopCo (“Summit”), a provider of primary, specialty and urgent care in exchange, for $7.0 billion aggregate consideration, consisting of $4.85 billion of cash consideration paid, $2.05 billion in preferred units of VillageMD issued to Summit equity holders and $100 million of cash to be paid one year following closing. The cash consideration includes $87 million of cash paid to fund acquisition-related bonuses to Summit Health-CityMD employees which is recognized as a compensation expense of the Company. In addition, VillageMD paid off approximately $1.9 billion in net debt of Summit. In connection with the amended Agreement and Plan of Merger, and in order to finance the acquisition, the Company and Cigna Health & Life Insurance Company acquired preferred units of VillageMD in exchange for $1.75 billion and $2.5 billion in aggregate consideration, respectively. Following the Summit acquisition, the Company remains the largest and consolidating equity holder of VillageMD with ownership of approximately 53% of the outstanding equity interests on a fully diluted basis. Further, the Company entered into a credit agreement with VillageMD pursuant to which the Company provided VillageMD senior secured credit facilities in the aggregate amount of $2.25 billion, consisting of (i) a senior secured term loan facility in an aggregate original principal amount of $1.75 billion to support the acquisition of Summit; and (ii) a senior secured revolving credit facility in an aggregate original committed amount of $500 million available for general corporate purposes. In connection with the issuance of the senior secured credit facilities, the Company received a $220 million credit for certain fees payable by VillageMD in the form of preferred units of VillageMD. The intercompany facilities eliminate in consolidation. The Company accounted for this acquisition as a business combination resulting in consolidation of Summit within the U.S. Healthcare segment in its financial statements. As of August 31, 2023, the Company had not completed the analysis to assign fair values to all tangible and intangible assets acquired and liabilities assumed. As such, the preliminary purchase price allocation will be subject to further refinement and may change. These changes may relate to the allocation of purchase consideration to all tangible and intangible assets acquired and identified and liabilities assumed. The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Cash consideration 1 $ 4,778 Deferred consideration 100 Summit debt paid at closing 1,963 Fair value of equity consideration 2 1,971 Fair value of non-controlling interests 13 Total $ 8,825 Identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 69 Accounts receivable, net 382 Property, plant and equipment 607 Intangible assets 3 3,359 Operating lease right-of-use assets 756 Other assets 173 Operating lease obligations (773) Deferred tax liability (737) Other liabilities (446) Total identifiable net assets $ 3,390 Goodwill $ 5,436 1. Cash consideration excludes $87 million of cash paid to fund acquisition-related bonuses to Summit employees which is recognized as compensation expense of the Company. 2. The fair value of the non-controlling interests was calculated based on the implied equity value of VillageMD, allocated to all units on an as-converted basis. 3. Intangibles acquired include provider networks and trade names with fair values of $1.9 billion and $1.5 billion, respectively. Estimated useful lives are 15 years and 11 to 15 years, respectively. The goodwill represents anticipated future growth and expansion opportunities into new healthcare offerings and new markets. $433 million of the goodwill is expected to be tax deductible. Supplemental pro forma information - Summit The following table represents unaudited supplemental pro forma consolidated sales for the years ended August 31, 2023 and 2022, as if the acquisition of Summit had occurred at the beginning of fiscal 2022. The unaudited pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisition occurred at the beginning of each period presented or results which may occur in the future. (Unaudited, in millions) 2023 2022 Sales $ 140,039 $ 135,379 Actual sales of Summit, from the acquisition date, for the year ended August 31, 2023, included in the Consolidated Statements of Earnings are as follows (in millions): 2023 Sales $ 1,896 Pro forma net earnings of the Company, assuming the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported. VillageMD acquisition On November 24, 2021, the Company completed the acquisition of VillageMD, a national provider of value-based primary care services. Pursuant to the terms and subject to the conditions set forth in the Unit Purchase Agreement, the Company purchased additional outstanding equity interests of VillageMD, increasing the Company’s total beneficial ownership in VillageMD’s outstanding equity interests from approximately 30% to approximately 63%, on a fully diluted basis, for a purchase price of $5.2 billion. The total purchase price was comprised of cash consideration of $4.0 billion and a promissory note of $1.2 billion. The cash consideration of $4.0 billion consisted of $2.9 billion paid to existing shareholders, including $1.9 billion paid to existing shareholders as part of the fully subscribed tender offer concluded on December 28, 2021, and $1.1 billion paid in exchange for new preferred units issued by VillageMD. Subject to notice being served, the Company had an option to prepay, and VillageMD had an option to require redemption of, the promissory note at any time. The promissory note was eliminated in consolidation within the Consolidated Balance Sheets as of August 31, 2022. The promissory note was paid in January 2023 prior to the Summit acquisition. The Company accounted for this acquisition as a business combination resulting in consolidation of VillageMD within the U.S. Healthcare segment in its financial statements. A non-controlling interest was recognized at fair value. As a result of this acquisition, in the three months ended November 30, 2021, the Company recognized a pre-tax gain in Other income, net in the Consolidated Statements of Earnings of $1,597 million related to the fair valuation of the Company’s previously held minority equity interest. The Company also recorded a pre-tax gain of $577 million in Other income, net in the Consolidated Statements of Earnings related to the conversion to equity of the Company’s previously held investment in convertible debt securities of VillageMD, reclassified from within Accumulated other comprehensive income in the Consolidated Balance Sheets. A majority of the gains did not generate a tax expense. In fiscal 2023, the Company completed the purchase price allocation and recorded certain deferred income tax related measurement period adjustments based on additional information, resulting in an increase to goodwill of $125 million. The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Total purchase price $ 5,200 Less: purchase price for issuance of new preferred units at fair value 1 (2,300) Net consideration 2,900 Fair value of share-based compensation awards attributable to pre-combination services 2 683 Fair value of previously held equity and debt 3,211 Fair value of non-controlling interest 3,257 Total $ 10,051 Identifiable assets acquired and liabilities assumed: Tangible assets 1 $ 634 Intangible assets 3 1,621 Liabilities (370) Total identifiable net assets $ 1,885 Goodwill $ 8,166 1. Comprised of cash consideration of $1.1 billion and a promissory note of $1.2 billion. This consideration was provided in exchange for the issuance of new preferred units by VillageMD. VillageMD’s tangible assets acquired exclude this $1.1 billion of cash and $1.2 billion promissory note receivable. 2. Primarily related to vested share-based compensation awards. 3. Intangibles acquired include primary care provider network, trade names and developed technology, with a fair value of $1.2 billion, $295 million and $76 million, respectively. Estimated useful lives are 15, 13 and 5 years, respectively. The goodwill represents anticipated future growth and expansion opportunities into new markets. Shields acquisition On October 29, 2021, the Company completed the acquisition of Shields Health Solutions Parent, LLC (“Shields”), a specialty pharmacy integrator and accelerator for hospitals. Pursuant to the terms and subject to the conditions set forth in the Securities Purchase Agreement, the Company purchased additional outstanding equity interests of Shields, increasing the Company’s total beneficial ownership in Shields’ outstanding equity interests from 25% to approximately 70%, for cash consideration of $969 million. The Company accounted for this acquisition as a business combination resulting in consolidation of Shields within the U.S. Healthcare segment in its financial statements. A non-controlling interest was recognized at fair value. Under the terms of the transaction agreements, the Company had an option to acquire the remaining equity interests of Shields in the future. Shields’ other equity holders had an option to require the Company to purchase the remaining equity interests. Considering the contractual terms related to the non-controlling interests, it was classified as redeemable non-controlling interests in the Consolidated Balance Sheets upon acquisition. In fiscal 2022, as a result of this acquisition the Company remeasured its previously held minority equity interest in Shields at fair value resulting in a pre-tax gain of $402 million recognized in Other income, net in the Consolidated Statements of Earnings. A majority of the gain did not generate a tax expense. In fiscal 2023, the Company completed the purchase price allocation and recorded certain deferred income tax related measurement period adjustments based on additional information, resulting in an increase to goodwill of $72 million. The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Cash consideration $ 969 Fair value of share-based compensation awards attributable to pre-combination services 13 Fair value of previously held equity interests 502 Fair value of non-controlling interests 589 Total $ 2,074 Identifiable assets acquired and liabilities assumed: Tangible assets $ 84 Intangible assets 1 1,060 Liabilities (600) Total identifiable net assets $ 544 Goodwill $ 1,529 1. Intangibles acquired include customer relationships, trade names and developed technology, with a fair value of $896 million, $47 million and $117 million. Estimated useful lives are 13, 13 and 5 years, respectively. The goodwill represents anticipated future growth and expansion opportunities into new healthcare offerings. On December 28, 2022 the Company acquired the remaining 30% equity interest for approximately $1.4 billion of cash consideration. CareCentrix acquisition On August 31, 2022, the Company completed the acquisition of CareCentrix (“CareCentrix”). Pursuant to the terms and subject to the conditions set forth in the Membership Interest Purchase Agreement, the Company acquired approximately 55% controlling equity interest in CareCentrix, a participant in the post-acute and home care management sectors, for cash consideration of $339 million. The cash consideration includes $12 million paid to employees, which was recognized as compensation expense by the Company. The Company accounted for this acquisition as a business combination resulting in consolidation of CareCentrix within the U.S. Healthcare segment in its financial statements. A non-controlling interest was recognized at fair value. Under the terms of the transaction agreements, the Company had an option to acquire the remaining equity interests of CareCentrix in the future. CareCentrix’s other equity holders also had an option to require the Company to purchase the remaining equity interests. Considering the contractual terms related to the non-controlling interests, it was classified as redeemable non-controlling interests in the Consolidated Balance Sheets. In fiscal 2023, the Company completed the purchase price allocation and recorded certain measurement period adjustments based on additional information, primarily related to acquired intangible assets and certain liabilities assumed, resulting in an increase to goodwill of $56 million. As of August 31, 2023 the Company completed the purchase price allocation. The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Cash consideration 1 327 Contingent consideration 4 Fair value of share-based compensation awards attributable to pre-combination services 66 Fair value of non-controlling interests 217 Total $ 614 Identifiable assets acquired and liabilities assumed: Tangible assets $ 358 Intangible assets 2 426 Liabilities (680) Total identifiable net assets $ 104 Goodwill $ 509 1. Excludes $12 million of cash paid to employees, which was recognized as compensation expense by the Company. 2. Intangibles acquired include customer relationships, trade names and developed technology, with a fair value of $247 million, $93 million and $86 million, respectively. Estimated useful lives are 13, 13 and 5 years, respectively. The goodwill represents anticipated future growth and expansion opportunities into new healthcare offerings. On March 31, 2023, the Company acquired the remaining 45% equity interest in CareCentrix for approximately $378 million of cash consideration. Supplemental pro forma information The following table represents unaudited supplemental pro forma consolidated sales for fiscal 2022 acquisitions, for the year ended August 31, 2022 and 2021, respectively, as if the acquisitions had occurred at the beginning of fiscal 2021. The unaudited pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisitions occurred at the beginning of the periods presented or results which may occur in the future. (Unaudited, in millions) 2022 2021 Sales $ 134,314 $ 135,306 Actual sales of the acquisitions for the year ended August 31, 2022 included in the Consolidated Statement of Earnings are as follows (in millions): 2022 Sales $ 1,795 Pro forma net earnings of the Company, assuming the acquisitions had occurred at the beginning of each period presented, would not be materially different from the results reported. See Note 17. Segment reporting for further information. Other acquisitions On March 3, 2023, the Company completed the acquisition of Starling MSO Holdings, LLC (“Starling”), a primary care and multi-specialty group, for total consideration of $284 million. Total consideration includes $222 million of cash consideration and $62 million of VillageMD equity issued to Starling equity holders, including employees. VillageMD equity issued to employees will be recognized as compensation expense in the future. As a result of the acquisition, the Company recognized goodwill and intangible assets of $104 million and $128 million, respectively. As of August 31, 2023, the Company had not completed the analysis to assign fair values to all tangible and intangible assets acquired and liabilities assumed. As such, the preliminary purchase price allocation will be subject to further refinement and may change. The Company acquired certain prescription files and related pharmacy inventory primarily in the U.S. for the aggregate purchase price of $324 million and $196 million during fiscal 2023 and 2022, respectively. |
Exit and disposal activities
Exit and disposal activities | 12 Months Ended |
Aug. 31, 2023 | |
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 was expected to deliver in excess of $2.0 billion of annual cost savings by fiscal 2022 (the “Transformational Cost Management Program”). The Company achieved this goal at the end of fiscal 2021. On October 12, 2021, the Company expanded and extended the Transformational Cost Management Program through the end of fiscal 2024 and increased its annual cost savings target to $3.3 billion by the end of fiscal 2024. In fiscal 2022, the Company increased its annual cost savings target from $3.3 billion to $3.5 billion, by the end of fiscal 2024. 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 which focus primarily on the U.S. Retail Pharmacy and International reportable segments along with the Company's global functions. Divisional optimization within the Company’s segments includes activities such as optimization of stores. The Company now plans to reduce its presence by up to 300 Boots stores in the UK and up to 200 stores in the U.S. by the end of fiscal 2024, which are incremental to the fiscal 2022 previously planned reductions of approximately 350 Boots stores in the UK and approximately 450 to 500 stores in the U.S. As of August 31, 2023, the Company has closed 291 and 466 stores in the UK and U.S., respectively. In fiscal 2023, the Company increased its estimate of cumulative pre-tax charges to its GAAP financial results for the Transformational Cost Management Program from $3.6 billion to $3.9 billion to $4.1 billion to $4.4 billion. As a result, pre-tax charges for exit and disposal activities increased from $3.3 billion to $3.6 billion to $3.8 billion to $4.1 billion. In addition to the impacts discussed above, as a result of the actions related to store closures taken under the Transformational Cost Management Program, the Company recorded $508 million of 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. From the inception of the Transformational Cost Management Program to August 31, 2023, the Company has recognized cumulative pre-tax charges to its financial results in accordance with GAAP of $3.1 billion, which were primarily recorded within Selling, general and administrative expenses within the Consolidated Statements of Earnings. These charges included $1.1 billion related to lease obligations and other real estate costs, $883 million in asset impairments, $873 million in employee severance and business transition costs and $253 million of information technology transformation and other exit costs. Costs related to exit and disposal activities under the Transformational Cost Management Program for fiscal 2023, 2022 and 2021, respectively, were as follows (in millions): Fiscal 2023 U.S. Retail Pharmacy International U.S. Healthcare Corporate and Other Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 492 $ 23 $ — $ 1 $ 516 Asset impairments 183 149 109 — 441 Employee severance and business transition costs 111 20 6 13 150 Information technology transformation and other exit costs 30 21 — — 51 Total pre-tax exit and disposal charges $ 816 $ 213 $ 115 $ 14 $ 1,158 Fiscal 2022 U.S. Retail Pharmacy International U.S. Healthcare Corporate and Other Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 247 $ 2 $ — $ — $ 249 Asset impairments 132 58 — — 190 Employee severance and business transition costs 156 29 — 25 210 Information technology transformation and other exit costs 12 29 — — 40 Total pre-tax exit and disposal charges $ 546 $ 118 $ — $ 25 $ 690 Fiscal 2021 U.S. Retail Pharmacy International U.S. Healthcare Corporate and Other Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 103 $ 6 $ — $ — $ 108 Asset impairments 15 9 — — 24 Employee severance and business transition costs 79 40 — 45 165 Information technology transformation and other exit costs 20 17 — — 38 Total pre-tax exit and disposal charges $ 217 $ 72 $ — $ 46 $ 335 The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions): 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, 2021 $ 17 $ — $ 77 $ 20 $ 114 Costs 249 190 210 40 690 Payments (99) — (201) (23) (323) Other (157) (190) (9) (11) (367) Balance at August 31, 2022 $ 10 $ — $ 76 $ 27 $ 113 Costs 516 441 150 51 1,158 Payments (105) — (160) (55) (320) Other (411) (441) 2 — (849) Balance at August 31, 2023 $ 10 $ — $ 70 $ 22 $ 102 Other exit and disposal activities In September 2023, VillageMD approved the exit from approximately five markets, including the closure of approximately 60 clinics in fiscal 2024. |
Leases
Leases | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Supplemental balance sheet information related to leases was as follows (in millions): Balance sheet supplemental information: August 31, 2023 August 31, 2022 Operating leases: Operating lease right-of-use assets $ 21,667 $ 21,259 Operating lease obligations - current $ 2,347 $ 2,286 Operating lease obligations - non-current 22,124 21,517 Total operating lease obligations $ 24,472 $ 23,803 Finance leases: Right-of-use assets included in: Property, plant and equipment, net $ 678 $ 645 Lease obligations included in: Accrued expenses and other liabilities $ 57 $ 37 Other non-current liabilities 919 899 Total finance lease obligations $ 976 $ 936 Supplemental income statement information related to leases was as follows (in millions): Statement of earnings supplemental information: 2023 2022 2021 Operating lease cost Fixed $ 3,404 $ 3,240 $ 3,219 Variable 1 850 825 664 Finance lease cost Amortization $ 47 $ 44 $ 45 Interest 51 50 52 Sublease income 2 $ 115 $ 105 $ 84 Impairment of right-of-use assets 495 218 86 Gains on sale-leaseback transactions 2 U.S. Retail Pharmacy $ 747 $ 558 $ 367 International 3 178 61 — Total gain on sale-leaseback 2 $ 925 $ 619 $ 367 1 Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume. 2 Recorded within Selling, general and administrative expenses within the Consolidated Statements of Earnings. 3 Includes gain on sale-leaseback related to Germany wholesale business of $178 million for fiscal 2023, and $61 million for Boots UK for fiscal 2022. The gain for fiscal 2023 includes $47 million related to the optimization of the Germany warehouse locations as part of acquisition integration activities. Other supplemental information was as follows (in millions): Other supplemental information: 2023 2022 2021 Cash paid for amounts included in the measurement of lease obligations Operating cash flows from operating leases $ 3,579 $ 3,351 $ 3,414 Operating cash flows from finance leases 47 47 48 Financing cash flows from finance leases 52 43 42 Total $ 3,679 $ 3,441 $ 3,503 Right-of-use assets obtained in exchange for new lease obligations Operating leases $ 2,323 $ 2,078 $ 2,765 Finance leases 30 11 — Total $ 2,352 $ 2,089 $ 2,765 Weighted average lease term and discount rate for real estate leases as of August 31, 2023 were as follows: Weighted average lease terms and discount rates: August 31, 2023 August 31, 2022 Weighted average remaining lease term in years Operating leases 9.6 10.0 Finance leases 17.4 19.0 Weighted average discount rate Operating leases 5.35 % 4.83 % Finance leases 5.25 % 5.19 % The aggregate future lease payments for operating and finance leases as of August 31, 2023 are as follows (in millions): Future lease payments (fiscal years): Finance lease Operating lease 1,2 2024 $ 109 $ 3,672 2025 104 3,589 2026 101 3,508 2027 99 3,417 2028 90 3,267 Later 967 14,508 Total undiscounted minimum lease payments $ 1,470 $ 31,960 Less: Present value discount 495 7,488 Lease liability $ 976 $ 24,472 1. Total undiscounted minimum lease payments include approximately $3.7 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised. 2. Total undiscounted minimum lease payments exclude sublease rental income of approximately $606 million due to the Company under non-cancelable sublease terms. |
Leases | Leases Supplemental balance sheet information related to leases was as follows (in millions): Balance sheet supplemental information: August 31, 2023 August 31, 2022 Operating leases: Operating lease right-of-use assets $ 21,667 $ 21,259 Operating lease obligations - current $ 2,347 $ 2,286 Operating lease obligations - non-current 22,124 21,517 Total operating lease obligations $ 24,472 $ 23,803 Finance leases: Right-of-use assets included in: Property, plant and equipment, net $ 678 $ 645 Lease obligations included in: Accrued expenses and other liabilities $ 57 $ 37 Other non-current liabilities 919 899 Total finance lease obligations $ 976 $ 936 Supplemental income statement information related to leases was as follows (in millions): Statement of earnings supplemental information: 2023 2022 2021 Operating lease cost Fixed $ 3,404 $ 3,240 $ 3,219 Variable 1 850 825 664 Finance lease cost Amortization $ 47 $ 44 $ 45 Interest 51 50 52 Sublease income 2 $ 115 $ 105 $ 84 Impairment of right-of-use assets 495 218 86 Gains on sale-leaseback transactions 2 U.S. Retail Pharmacy $ 747 $ 558 $ 367 International 3 178 61 — Total gain on sale-leaseback 2 $ 925 $ 619 $ 367 1 Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume. 2 Recorded within Selling, general and administrative expenses within the Consolidated Statements of Earnings. 3 Includes gain on sale-leaseback related to Germany wholesale business of $178 million for fiscal 2023, and $61 million for Boots UK for fiscal 2022. The gain for fiscal 2023 includes $47 million related to the optimization of the Germany warehouse locations as part of acquisition integration activities. Other supplemental information was as follows (in millions): Other supplemental information: 2023 2022 2021 Cash paid for amounts included in the measurement of lease obligations Operating cash flows from operating leases $ 3,579 $ 3,351 $ 3,414 Operating cash flows from finance leases 47 47 48 Financing cash flows from finance leases 52 43 42 Total $ 3,679 $ 3,441 $ 3,503 Right-of-use assets obtained in exchange for new lease obligations Operating leases $ 2,323 $ 2,078 $ 2,765 Finance leases 30 11 — Total $ 2,352 $ 2,089 $ 2,765 Weighted average lease term and discount rate for real estate leases as of August 31, 2023 were as follows: Weighted average lease terms and discount rates: August 31, 2023 August 31, 2022 Weighted average remaining lease term in years Operating leases 9.6 10.0 Finance leases 17.4 19.0 Weighted average discount rate Operating leases 5.35 % 4.83 % Finance leases 5.25 % 5.19 % The aggregate future lease payments for operating and finance leases as of August 31, 2023 are as follows (in millions): Future lease payments (fiscal years): Finance lease Operating lease 1,2 2024 $ 109 $ 3,672 2025 104 3,589 2026 101 3,508 2027 99 3,417 2028 90 3,267 Later 967 14,508 Total undiscounted minimum lease payments $ 1,470 $ 31,960 Less: Present value discount 495 7,488 Lease liability $ 976 $ 24,472 1. Total undiscounted minimum lease payments include approximately $3.7 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised. 2. Total undiscounted minimum lease payments exclude sublease rental income of approximately $606 million due to the Company under non-cancelable sublease terms. |
Equity method investments
Equity method investments | 12 Months Ended |
Aug. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | Equity method investments Equity method investments as of August 31, 2023 and 2022 were as follows (in millions, except percentages): 2023 2022 Carrying value Ownership percentage Carrying value Ownership percentage Cencora $ 2,534 16% $ 3,916 25% Others 963 8% - 50% 1,579 8% - 50% Total $ 3,497 $ 5,495 Cencora investment As of August 31, 2023 and 2022, the Company owned 31.8 million and 52.9 million shares of Cencora common stock, respectively, representing approximately 15.9% and 25.4% of its outstanding common stock based on the share count publicly reported by Cencora in its most recent filings with the SEC. In fiscal 2023 and 2022, the Company sold shares of Cencora common stock for total consideration of approximately $3.4 billion and $900 million, respectively. These transactions resulted in the Company recording pre-tax gains of $1.6 billion and $417 million, respectively, in Other income, net in the Consolidated Statements of Earnings, including $160 million and $32 million of losses, respectively, reclassified from within Accumulated other comprehensive loss in the Consolidated Balance Sheets. As of August 31, 2023, the Company has pledged 17.3 million shares of Cencora common stock as collateral upon entering into variable prepaid forward (“VPF”) transactions. See Note 9. Financial instruments for further information. The Company accounts for its equity investment in Cencora 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 U.S. Retail Pharmacy segment. Due to the timing and availability of financial information of Cencora, the Company accounts for this equity method investment on a financial reporting lag of two months. Equity earnings (loss) in Cencora are reported as a separate line in the Consolidated Statements of Earnings. In fiscal 2023, 2022 and 2021, the Company recognized equity earnings (losses) in Cencora of $252 million, $418 million and $(1.1) billion, respectively. The equity losses for fiscal 2021 were primarily due to Cencora's recognition of a loss of $5.6 billion, net of tax, related to its ongoing opioid litigation in its financial statements for the three months ended September 30, 2020. The Level 1 fair market value of the Company’s equity investment in Cencora common stock at August 31, 2023 and 2022 was $5.6 billion and $7.7 billion, respectively. As of August 31, 2023, the carrying value of the Company’s investment in Cencora exceeded its proportionate share of the net assets of Cencora by $2.4 billion. This premium of $2.4 billion was recognized as part of the carrying value in the Company’s equity investment in Cencora. The difference is primarily related to goodwill and the fair value of Cencora intangible assets. Option Care Health investment In fiscal 2021, the Company recorded a gain of $290 million in Other income, net in the Consolidated Statements of Earnings, due to the partial sale of ownership interest in Option Care Health by the Company's then equity method investee HC Group Holdings. As a result of these sales HC Group Holdings lost the ability to control Option Care Health and, therefore, deconsolidated Option Care Health in its financial statements. As a result of this deconsolidation, HC Group Holdings recognized a gain of $1.2 billion and the Company recorded its share of equity earnings in HC Group Holdings of $576 million in Post-tax earnings from other equity method investments. During fiscal 2022, the Company sold additional shares of Option Care Health common stock for total consideration of approximately $363 million. During fiscal 2023, the Company sold its remaining investment in Option Care Health for total consideration of approximately $798 million. These transactions resulted in the Company recording pre-tax gains of $186 million and $145 million, respectively, in Other income, net in the Consolidated Statements of Earnings. As of May 31, 2023, the Company no longer exercised significant influence over the operating and financial policies of Option Care Health and reclassified its investment from an equity method investment to an investment in equity securities at fair value, recognizing a pre-tax gain of $76 million included in Other income, net within the Consolidated Statement of Earnings. Other investments At August 31, 2023, the Company’s other equity method investments primarily include its U.S. investment in BrightSpring Health Services, and the Company’s investments in China in Sinopharm Medicine Holding Guoda Drugstores Co., Ltd and Nanjing Pharmaceutical Company Limited. On December 15, 2022, the Company sold its ownership interest in Guangzhou Pharmaceuticals Corporation for total consideration of approximately $150 million. In fiscal 2022, the Company acquired majority equity interests in VillageMD and Shields, both formerly accounted for as equity method investments. The Company accounted for these acquisitions as business combinations resulting in the remeasurement of its previously held minority equity interests and convertible debt securities at fair value resulting in pre-tax gains of $2.2 billion and $402 million for VillageMD and Shields, respectively, recognized in Other income, net in the Consolidated Statements of Earnings. As a result of these transactions, the Company consolidated VillageMD and Shields within the U.S. Healthcare segment in its financial statements. In fiscal 2022, the Company recognized an other-than-temporary impairment of $124 million related to an equity method investment in China. The impairment was derived using Level 3 inputs, including financial projections and market multiples of comparable companies. Summarized financial information Summarized financial information for the Company’s equity method investments in aggregate is as follows: Balance sheet (in millions) August 31, 2023 2022 Current assets $ 48,185 $ 50,985 Non-current assets 25,618 26,497 Current liabilities 52,093 52,083 Non-current liabilities 17,999 19,712 Shareholders’ equity 1 3,711 5,687 1 Shareholders’ equity at August 31, 2023 and 2022 includes $520 million and $564 million, respectively, related to non-controlling interests. Statements of earnings (in millions) 2023 2022 2021 Sales $ 279,118 $ 268,189 $ 232,719 Gross profit 12,457 13,248 10,889 Net earnings (loss) 1,799 1,988 (3,475) Share of earnings (loss) from equity method investments 286 468 (512) The summarized financial information for equity method investments has been included on an aggregated basis for all investments as reported at the end of each fiscal year end. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Aug. 31, 2023 | |
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 as of the June 1, 2023 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 3% to approximately 227%, except for VillageMD and CareCentrix reporting units where the fair values approximated the carrying values. As of August 31, 2023 and August 31, 2022, the Boots reporting unit's fair value was in excess of its carrying value by approximately 3% and 7%, respectively. As of August 31, 2023 and August 31, 2022, the carrying value of goodwill within the Boots reporting unit was $977 million and $906 million, respectively. In the third quarter of fiscal 2023, as a result of pharmacy performance and the decision to close additional stores, the Company completed a quantitative impairment analysis for certain indefinite-lived intangible assets related to the Boots reporting unit within the International segment. Based on this analysis, the Company recorded an impairment loss of $431 million within Selling, general and administrative expenses within the Consolidated Statement of Earnings related to pharmacy license intangible assets. The fair values of indefinite-lived intangibles within the Boots reporting unit exceeded their carrying value amounts ranging from approximately 3% to approximately 32%. As of August 31, 2023 and 2022, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $5.5 billion. In fiscal 2022 and 2021, the Company recorded, within Selling, general and administrative expenses, an impairment loss of $783 million and $49 million, respectively, related to indefinite-lived pharmacy license and trade name intangible assets in the Boots reporting unit, part of the International segment. Definite-lived intangible assets are evaluated for impairment whenever events or circumstances indicate that a certain asset or asset group may be impaired. No material impairment was recorded for definite-lived intangibles in fiscal 2023, 2022 or 2021. Changes in the carrying amount of goodwill by reportable segment consist of the following activity (in millions): Goodwill roll forward: U.S. Retail Pharmacy International U.S. Healthcare Walgreens Boots Alliance, Inc. August 31, 2021 $ 10,947 $ 1,474 $ — $ 12,421 Acquisitions 1 — — 10,040 10,040 Currency translation adjustments and other — (181) — (181) August 31, 2022 $ 10,947 $ 1,293 $ 10,040 $ 22,280 Acquisitions 2 $ — $ — $ 5,588 $ 5,588 Adjustments 3 — — 252 252 Currency translation adjustments and other — 85 (18) 67 August 31, 2023 $ 10,947 $ 1,378 $ 15,863 $ 28,187 1. In fiscal 2022, the Company acquired controlling equity interests in VillageMD, Shields and CareCentrix which resulted in an increase to goodwill of $8.0 billion, $1.5 billion and $454 million, respectively. 2. In fiscal 2023, additions to goodwill primarily relate to VillageMD's acquisition of Summit. 3. Includes measurement period adjustments related to the acquisitions of VillageMD, Shields and CareCentrix. See Note 3. Acquisitions and other investments. The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): Intangible assets: August 31, 2023 August 31, 2022 Gross amortizable intangible assets Customer relationships and loyalty card holders 1 $ 4,658 $ 4,619 Provider networks 3,202 1,247 Trade names and trademarks 2,300 760 Developed technology 469 436 Others 2 137 93 Total gross amortizable intangible assets $ 10,767 $ 7,155 Accumulated amortization Customer relationships and loyalty card holders 1 $ 1,784 $ 1,548 Provider networks 233 64 Trade names and trademarks 401 246 Developed technology 143 56 Others 2 48 39 Total accumulated amortization 2,609 1,953 Total amortizable intangible assets, net $ 8,158 $ 5,202 Indefinite-lived intangible assets Trade names and trademarks $ 4,650 $ 4,319 Pharmacy licenses 828 1,209 Total indefinite-lived intangible assets $ 5,477 $ 5,528 Total intangible assets, net $ 13,635 $ 10,730 1 Includes purchased prescription files. 2 Includes certain reclassifications to conform to current period presentation. Amortization expense for intangible assets was $815 million, $639 million and $523 million in fiscal 2023, 2022 and 2021, respectively. Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at August 31, 2023 is as follows (in millions): 2024 2025 2026 2027 2028 Estimated annual amortization expense $ 930 $ 884 $ 852 $ 773 $ 697 |
Debt
Debt | 12 Months Ended |
Aug. 31, 2023 | |
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 to the U.S. dollar 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): August 31, 2023 August 31, 2022 Short-term debt Credit facilities 1 November 2021 DDTL due February 2023 $ — $ 1,000 $850 million note issuance 1 0.9500% unsecured notes due 2023 850 — Other 2 68 59 Total short-term debt $ 917 $ 1,059 Long-term debt Credit facilities 1 November 2021 DDTL due November 2023 $ — $ 1,998 November 2021 DDTL due November 2024 289 999 December 2022 DDTL due January 2026 999 — $850 million note issuance 1 0.9500% unsecured notes due 2023 — 848 $1.5 billion note issuance 1 3.200% unsecured notes due 2030 498 498 4.100% unsecured notes due 2050 793 792 $6 billion note issuance 1 3.450% unsecured notes due 2026 1,444 1,443 4.650% unsecured notes due 2046 318 318 $8 billion note issuance 1 3.800% unsecured notes due 2024 1,156 1,155 4.500% unsecured notes due 2034 301 301 4.800% unsecured notes due 2044 869 869 £700 million note issuance 1 3.600% unsecured Pound Sterling notes due 2025 381 354 €750 million note issuance 1 2.125% unsecured Euro notes due 2026 814 752 $4 billion note issuance 3 4.400% unsecured notes due 2042 263 263 Other 2 20 26 Total long-term debt, less current portion $ 8,145 $ 10,615 1. Notes and borrowings under credit facilities are unsecured and 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. 2. Other 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. At August 31, 2023, the future maturities of short-term and long-term debt, excluding debt discounts, issuance costs and finance lease obligations (See Note 5. Leases, for the future lease payments), consisted of the following (in millions): Amount 2024 $ 918 2025 1,451 2026 2,830 2027 815 2028 3 Later 3,074 Total estimated future maturities $ 9,092 $850 million Note Issuance On November 17, 2021, the Company issued, in an underwritten public offering, $850 million of 0.95% notes due 2023. The notes contain a call option which allows for the notes to be repaid, in full or in part at 100% of the principal amount of the notes to be redeemed, in each case plus accrued and unpaid interest. Credit facilities August 2023 Revolving Credit Agreement On August 9, 2023, the Company entered into a $2.25 billion unsecured three August 2023 Delayed Draw Term Loan On August 9, 2023, the Company entered into a $1 billion senior unsecured delayed draw term loan credit agreement (the “August 2023 DDTL”). Borrowings under the August 2023 DDTL bear interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate, the term SOFR or the daily SOFR, in each case, plus a credit adjustment spread and an applicable margin of 112.5 basis points. The applicable margin is based on the rating of the Company’s corporate debt obligations as determined by Moody’s or S&P. The August 2023 DDTL was for general corporate purposes. The August 2023 DDTL matures three years from the date of borrowing. As of August 31, 2023, there were no borrowings outstanding under the August 2023 DDTL. Amounts borrowed under the August 2023 DDTL and repaid or prepaid may not be reborrowed. March 2023 Revolving Credit Agreement On March 2, 2023, the Company entered into a $900 million unsecured 364-day revolving credit facility (the “March 2023 Revolving Credit Agreement”). Interest on borrowings under the revolving credit facility accrues at applicable margins based on the Company's Index Debt Rating and ranges from 80 basis points to 110 basis points over specified benchmark rates for SOFR loans, as applicable. Additionally, the Company pays commitment fees to maintain the availability under the revolving credit facility at applicable fee rates based upon certain criteria at an annual rate on the unutilized portion of the total credit commitment. The 2023 Revolving Credit Agreement's termination date was February 29, 2024, or earlier, subject to the Company's discretion to terminate the agreement. December 2022 Delayed Draw Term Loan On December 19, 2022, the Company entered into a $1.0 billion senior unsecured delayed draw term loan credit agreement (the “December 2022 DDTL”). Borrowings under the December 2022 DDTL bear interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate, the term SOFR or the daily SOFR, in each case, plus a credit adjustment spread and an applicable margin of 112.5 basis points. The applicable margin is based on the rating of the Company’s corporate debt obligations as determined by Moody’s or S&P. The December 2022 DDTL was drawn for the purpose of funding the consideration due for the purchase of Summit and paying fees and expenses related to it. The December 2022 DDTL matures on January 3, 2026. As of August 31, 2023, there were $1.0 billion in borrowings outstanding under the December 2022 DDTL. Amounts borrowed under the December 2022 DDTL and repaid or prepaid may not be reborrowed. June 2022 Revolving Credit Agreements On June 17, 2022, the Company entered into a $3.5 billion unsecured five-year revolving credit facility and a $1.5 billion unsecured 18-month revolving credit facility, with designated borrowers from time to time party thereto and lenders from time to time party thereto (the “2022 Revolving Credit Agreements”). Interest on borrowings under the revolving credit facilities accrue at applicable margins based on the Company's Index Debt Rating and ranges from 80 basis points to 150 basis points over specified benchmark rates for eurocurrency rate and SOFR loans, as applicable. Additionally, the Company pays commitment fees to maintain the availability under the revolving credit facility at applicable fee rates based upon certain criteria at an annual rate on the unutilized portion of the total credit commitment. The five-year facility’s termination date is June 17, 2027, or earlier, subject to the Company's discretion to terminate the agreement. The 18 -month facility’s termination date was December 15, 2023, or earlier, subject to the Company's discretion to terminate the agreement. 18 -month facility under the 2022 Revolving Credit Agreements. All outstanding obligations under the 18-month revolving credit facility have been paid and satisfied in full. As of August 31, 2023 , there were no borrowings outstanding under the five-year r evolving credit facility. November 2021 Delayed Draw Term Loan On November 15, 2021, the Company entered into a $5.0 billion senior unsecured multi-tranche delayed draw term loan credit facility, (the “November 2021 DDTL”) consisting of (i) a 364-day senior unsecured delayed draw term loan facility in an aggregate principal amount of $2.0 billion (the “364-day loan”), (ii) a two-year senior unsecured delayed draw term loan facility in an aggregate principal amount of $2.0 billion (the “two-year loan”) and (iii) a three-year senior unsecured delayed draw term loan facility in an aggregate principal amount of $1.0 billion (the “three-year loan”). An aggregate amount of $3.0 billion or more of the November 2021 DDTL was drawn for the purpose of funding the purchase of the increased equity interest in VillageMD, paying fees and expenses related to the foregoing, with the remainder used for general corporate purposes. In fiscal 2023, the Company repaid the 364-day loan and the two-year loan in full. The maturity date on the three-year loan is November 24, 2024. As of August 31, 2023, there were $289 million in borrowings outstanding under the November 2021 DDTL. Amounts borrowed under the November 2021 DDTL and repaid or prepaid may not be reborrowed. Borrowings under the November 2021 DDTL bear interest at a fluctuating rate per annum equal to the daily SOFR, plus an applicable margin. The applicable margins for the 364-day and two-year loans were 0.75% and 0.88%, respectively. The applicable margin for the three 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 contain various other customary financial covenants. As of August 31, 2023, the Company was in compliance with all such applicable financial covenants. Commercial paper The Company periodically borrows under its commercial paper program and may borrow under it in future periods. As of August 31, 2023 and 2022, there were no borrowings outstanding under the commercial paper program. Interest Interest paid by the Company was $606 million, $420 million and $916 million in fiscal 2023, 2022 and 2021, respectively. Interest paid in fiscal 2022 and 2021 included charges on early extinguishment of debt of $6 million and $387 million, respectively. |
Financial instruments
Financial instruments | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial instruments | Financial instruments The Company uses derivative instruments to hedge its exposure to market risks, including interest rate and currency risks, arising from operating and financing 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 Company economically hedges a portion of its exposure to equity price risk related to its investment in Cencora through variable prepaid forward derivative contracts. The notional amounts and fair value of derivative instruments outstanding were as follows (in millions): August 31, 2023 Notional Fair value Location in Consolidated Balance Sheets Derivatives designated as hedges : Foreign currency forwards $ 31 $ 1 Other current assets Cross currency interest rate swaps 650 28 Other non-current assets Foreign currency forwards 805 2 Other current liabilities Cross currency interest rate swaps 102 2 Other current liabilities Foreign currency forwards 4 — Other non-current liabilities Derivatives not designated as hedges : Foreign currency forwards $ 3,139 $ 6 Other current assets Total return swap 168 1 Other current assets Foreign currency forwards 817 2 Other current liabilities Total return swap 26 1 Other current liabilities Variable prepaid forward contracts 3,195 2,548 Other non-current liabilities August 31, 2022 Notional Fair value Location in Consolidated Balance Sheets Derivatives designated as hedges : Foreign currency forwards $ 448 $ 19 Other current assets Cross currency interest rate swaps 150 12 Other current assets Cross currency interest rate swaps 750 83 Other non-current assets Foreign currency forwards 3 — Other non-current assets Foreign currency forwards 221 1 Other current liabilities Derivatives not designated as hedges : Foreign currency forwards $ 2,874 $ 49 Other current assets Foreign currency forwards 1,098 6 Other current liabilities Total return swap 183 6 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 Currency translation adjustments within Accumulated other comprehensive loss in the Consolidated Balance Sheets. Cash flow hedges The Company may use foreign currency forwards and interest rate swaps to hedge the variability in forecasted transactions and cash flows of certain floating-rate debt. For qualifying cash flow hedges, changes in the fair value of the derivatives are recorded in Unrealized gain (loss) on cash flow hedges within Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, 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 and equity price risk. The Company also utilizes total return swaps to economically hedge variability in compensation charges related to certain deferred compensation obligations. In fiscal 2023, the Company entered into VPF transactions with third-party financial institutions and received upfront prepayments related to the forward sale of shares of Cencora common stock. The upfront prepayments are recorded within Other non-current liabilities in the Consolidated Balance Sheet as derivatives. The Company has pledged shares of Cencora common stock as collateral upon entering into the VPF transactions. The VPF transactions provide the Company with current liquidity while allowing it to maintain voting and dividend rights in the Cencora common stock, as well as the ability to participate in future stock price appreciation during the term of the contracts up to a cap price specified in the contracts. The VPF transactions are expected to be settled per their respective forward settlement dates, at which time the Company will be obligated, unless it elects to settle otherwise as described below, to deliver the full number of shares of Cencora common stock to settle the agreements. The Company may receive additional cash payments to be determined based on the price of the Cencora common stock at the forward settlement dates relative to the forward floor and cap price specified in the contracts. Subject to certain conditions, the Company may elect to net settle the contract by delivery of shares (or payment of the cash value thereof) in lieu of receiving any additional cash. The aggregate number of Cencora shares to be delivered in connection with the VPF transactions will not exceed the shares subject to forward sale. The terms of the VPF transactions were as follows (in millions): Transaction date Shares pledged and maximum shares subject to forward sale Prepayment amount Forward settlement date May 11, 2023 4.6 $ 644 Fourth quarter, fiscal 2025 June 15, 2023 2.2 325 Third quarter, fiscal 2025 August 3, 2023 5.3 801 First quarter, fiscal 2026 August 4, 2023 5.3 797 Third quarter, fiscal 2026 17.3 $ 2,568 The income (expense) due to changes in fair value of derivative instruments were recognized in the Consolidated Statements of Earnings as follows (in millions): Location in Consolidated Statements of Earnings 2023 2022 2021 Foreign currency forwards Selling, general and administrative expense 1 $ — $ — $ (75) Total return swap Selling, general and administrative expense 12 (33) 58 Foreign currency forwards Other income, net 1,2 (273) 523 (8) Variable prepaid forward Other income, net 19 — — 1. In fiscal 2022, certain expenses related to derivative instruments used as economic hedges, were presented as Other income, net within the Consolidated Statements of Earnings, whereas these expenses were recorded within Selling, general, and administrative expenses within the Consolidated Statements of Earnings in fiscal 2021. 2. Excludes remeasurement gains and losses on economically hedged assets and liabilities. 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 Balance Sheets. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Aug. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurementsThe 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): August 31, 2023 Level 1 Level 2 Level 3 Assets: Money market funds 1 $ 11 $ 11 $ — $ — Cross currency interest rate swaps 2 28 — 28 — Foreign currency forwards 3 6 — 6 — Investments in equity securities 4 17 17 — — Investment in debt securities 5 15 — 15 — Total return swaps 1 — 1 — Liabilities : Variable prepaid forward 6 $ 2,548 $ — $ — $ 2,548 Foreign currency forwards 3 5 — 5 — Total return swaps 1 — 1 — Cross currency interest rate swaps 2 2 — 2 — August 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds 1 $ 1,114 $ 1,114 $ — $ — Investments in debt securities 5 130 — 130 — Foreign currency forwards 3 69 — 69 — Investments in equity securities 4 1 1 — — Cross currency interest rate swaps 2 96 — 96 — Liabilities : Total return swaps $ 6 $ — $ 6 $ — Foreign currency forwards 3 7 — 7 — 1. Money market funds are valued at the closing price reported by the fund sponsor and classified as marketable securities on the Consolidated Balance Sheets. 2. The fair value of cross currency interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 9. Financial instruments, for further information. 3. 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 9. Financial instruments, for further information. 4. Fair values of quoted investments are based on current bid prices as of August 31, 2023 and August 31, 2022. 5. Includes investments in Treasury debt securities. 6. The fair value of the derivative was derived from a Black-Scholes valuation. The inputs used in valuing the derivative included observable inputs such as the floor and cap prices of the VPF, dividend yield of Cencora shares, risk free interest rate, and contractual term of the instrument, as well as unobservable inputs such as implied volatility of Cencora shares (ranging from 23.2% - 24.7% for the lower strike and 18.1% - 19.1% for the upper strike). See Note 9. Financial instruments, for further information. There were no transfers between Levels in fiscal 2023 or 2022. The roll forward of the fair value of the VPF derivatives associated with the forward sale of shares of Cencora common stock, classified as Level 3, for fiscal 2023 is as follows (in millions): 2023 Opening balance $ — VPF derivative additions (2,568) Unrealized gains recorded in Other income, net 19 Ending balance $ (2,548) The carrying value of the Company's 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 Financial Statements. As of August 31, 2023, the carrying amounts and estimated fair values of long term notes outstanding including the current portion were $7.7 billion and $6.8 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 August 31, 2023 rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of August 31, 2023. See Note. 8 Debt, for further information. The carrying values of accounts receivable and trade accounts payable approximate their respective fair values due to their short-term nature. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies The Company is involved in legal proceedings arising in the normal course of its business, including litigation, arbitration and other claims, and investigations, inspections, subpoenas, audits, claims, inquiries and similar actions by governmental authorities in pharmacy, healthcare, tax and other areas. Some of these proceedings may be class actions, and some involve claims for large or indeterminate amounts, including punitive or exemplary damages, and they may remain unresolved for several years. Legal proceedings in general, and securities, class action and multi-district litigation, in particular, can be expensive and disruptive. 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. 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. The Company’s business, compliance and reporting practices are subject to intensive scrutiny under applicable regulation, including review or audit by regulatory authorities. As a result, the Company regularly is the subject of government actions of the types described herein. The Company also may be named from time to time in qui tam actions initiated by private parties. In such an action, a private party purports to act on behalf of federal or state governments, alleges that false claims have been submitted for payment by the government and may receive an award if its 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 its 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. 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 suspension or exclusion from participation in government programs. The Company describes below certain proceedings against the Company in which the amount of loss could be material. The Company accrues for legal claims when, and to the extent that, the amount or range of probable loss can be reasonably estimated. The Company believes there are meritorious defenses in each of these proceedings, and it intends to defend each case vigorously, but there can be no assurance as to the ultimate outcome. With respect to litigation and other legal proceedings where the Company has determined a material loss is reasonably possible, except as otherwise disclosed, the Company is not able to make a reasonable estimate of the amount or range of loss that is reasonably possible above any accrued amounts in these proceedings, due to various reasons, including: existence of factual and legal arguments that, if successful, will eliminate or sharply reduce the possibility of loss; lack of sufficient information about the arguments and the evidence plaintiffs will advance with respect to their damages; some of the cases have been stayed; certain proceedings present novel and complex questions of public policy; legal and factual determinations and judicial and governmental procedure; the large number of parties involved; and the inherent uncertainties related to such litigation. Litigation Relating to 2016 Goals 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 (discussed below). On November 3, 2016, the Court entered a stipulation and order extending the stay until the resolution of the securities class action. The securities class action was resolved and a final judgement order entered on October 13, 2022. On March 24, 2023, the plaintiff filed a motion for preliminary approval of a settlement resolving the litigation. On May 8, 2023 the Court entered an order preliminarily approving the settlement. On July 25, 2023 the Court entered final approval of the settlement. As of August 31, 2023, the settlement was final and paid in full. 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. On June 29, 2022 the Court granted preliminary approval of a settlement in the amount of $105 million which was paid in fiscal 2022. The Court issued a final judgment order approving the settlement on October 13, 2022. Securities Claims Relating to Rite-Aid Merger 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. class action”) arising out of transactions contemplated by the merger agreement between the Company and Rite Aid. The amended complaint alleges that the Company and certain of its officers made false or misleading statements regarding the transactions. Fact and expert discovery have concluded. The Court denied both plaintiffs’ partial motion for summary judgement and the Company’s motion for summary judgment on March 31, 2023. Trial is scheduled for January 29, 2024. In October and December 2020, two separate purported Rite Aid Shareholders filed actions in the same court opting out of the class in the M.D. Pa. class action and making nearly identical allegations as those in the M.D. Pa. class action (the “Opt-out Actions”). The stay in the Opt-out Actions has been lifted following the Court’s rulings on summary judgment motions in the M.D. Pa. class action. The Company filed answers and affirmative defenses and discovery is ongoing. No trial date has been set. Putative shareholder filed a derivative suit in the District Court of Delaware on March 19, 2021 (Clem v. Skinner, et. al, 21-CV-406 Del Dist. Ct.) against certain current and former Walgreens directors and officers alleging breach of fiduciary duty and seeking contribution under Section 21D of the Exchange Act in connection with the M.D. Pa. class action. Plaintiffs’ allegations in this derivative suit concern the same public statements at issue in the M.D. Pa. class action. The case has been stayed since its inception given the pending M.D. Pa. class action. Claims Relating to Opioid Abuse On May 5, 2022, the Company announced that it had entered into a settlement agreement with the State of Florida to resolve all claims related to the distribution and dispensing of prescription opioid medications across the Company’s pharmacies in the State of Florida. This settlement agreement was not an admission of liability or wrong-doing and resolved all pending and future opioid litigation by state and government subdivisions in the State of Florida. The settlement amount of $683 million includes $620 million in remediation payments, which will be paid to the State of Florida in equal installments over 18 years, and will be applied as opioid remediation, as well as a one-time payment of $63 million for attorneys’ fees. In fiscal 2022, the Company recorded a $683 million liability associated with this settlement. On November 2, 2022, the Company announced that it had agreed to financial amounts and payment terms as part of settlement frameworks (the “Settlement Frameworks”) that had the potential to resolve a substantial majority of opioid-related lawsuits filed against the Company by the attorneys general of participating states and political subdivisions (the “Settling States”) and litigation brought by counsel for tribes. Under the Settlement Frameworks with the Settling States and counsel for tribes, the Company announced that it expected to settle all opioid claims against it by such Settling States, their participating political subdivisions, and participating tribes for up to approximately $4.8 billion and $155 million, respectively in remediation payments to be paid out over 15 years. The Settlement Frameworks provided for the payment of up to approximately $754 million in attorneys’ fees and costs over 6 years beginning in year two of the Settlement Frameworks. The Settlement Frameworks included no admission of wrongdoing or liability by the Company. As of November 30, 2022, the Company concluded that Settlement Framework discussions had advanced to a stage where a broad settlement of opioid claims by Settling States was probable, and for which the related loss was reasonably estimable. As a result of those conclusions and the Company’s ongoing assessment of other opioid-related claims, the Company recorded a $6.5 billion liability associated with the Settlement Frameworks and other opioid-related claims and litigation settlements during the three months ended November 30, 2022. The settlement accrual was reflected in the Consolidated Statement of Earnings within Selling, general and administrative expenses as part of the U.S. Retail Pharmacy segment. On December 9, 2022, the Company committed the Settlement Frameworks to a proposed settlement agreement (the “Proposed Settlement Agreement”) that was contingent on (1) a sufficient number of Settling States, including those that had not sued, agreeing to the Proposed Settlement Agreement following a sign-on period, and (2) following a notice period, a sufficient number of political subdivisions within Settling States, including those that had not sued, agreeing to the Proposed Settlement Agreement (or otherwise having their claims foreclosed). On June 8, 2023 the Company informed the Settling States that there was sufficient State participation, sufficient Subdivision participation, and sufficient resolution of the claims of Litigating Subdivisions in the Settling States to proceed with the multistate settlement. The Company has now resolved its litigation with all states, territories, tribes and 99.5% of litigating subdivisions within Settling States included in the Proposed Settlement or in separate agreements. Estimated liabilities for these settlements are fully accrued. Incentive payments to Settling States with non-participating political subdivisions are subject to reduction and those subdivisions are still entitled to pursue their claims against the Company. The Proposed Settlement Agreement became effective on August 7, 2023 (the “Multistate Settlement Agreement”). The Company will continue to vigorously defend against any litigation not covered by the Multistate Settlement Agreement, including private plaintiff litigation. The Company continues to believe it has strong legal defenses and appellate arguments in all of these cases. As of August 31, 2023, the Company has accrued a total $7.0 billion liability associated with the Multistate Settlement Agreement and other opioid-related claims and litigation settlements, including $703 million and $6.3 billion of the estimated settlement liability in Accrued expenses and other current liabilities, and Accrued litigation obligations, respectively, in the Consolidated Balance Sheet. The Company remains a defendant in multiple actions in federal courts alleging claims generally concerning the impacts of widespread opioid abuse, which have been commenced by various plaintiffs. In December 2017, the U.S. Judicial Panel on Multidistrict Litigation consolidated many of these cases in a consolidated multidistrict litigation, captioned In re National Prescription Opiate Litigation (MDL No. 2804, Case No. 17-md-2804), which is pending in the U.S. District Court for the Northern District of Ohio (“N.D. Ohio”). The Company is a defendant in the following multidistrict litigation (MDL) bellwether cases: • Two consolidated cases in N.D. Ohio ( Cnty. of Lake, Ohio v. Purdue Pharma L.P., et al. , Case No. 18-op-45032; Cnty. of Trumbull, Ohio v. Purdue Pharma L.P., et al. , Case No. 18-op-45079). In November 2021, the jury returned a verdict in favor of the plaintiffs as to liability, and a second trial regarding remedies took place in May 2022. In August 2022, the court entered orders providing for injunctive relief and requiring the defendants to pay $651 million over a 15-year period to fund abatement programs. The court found that the damages are subject to joint and several liability and as such made no determination as to apportionment. These decisions are currently on appeal. The Company also has been named as a defendant in multiple actions brought in state courts relating to opioid matters. Trial dates have been set in cases pending in state courts in the following states: • Maryland (Mayor and City Council of Baltimore v. Purdue Pharma L.P., et al. , Case No. 24-C-18-000515, Circuit Court for Baltimore City, Baltimore, Maryland - September 2024). • Florida ( Florida Health Sciences Center, Inc., et al. v. Richard Sackler, et al. , Case No. CACE 19-018882, Seventeenth Judicial Circuit Court, Broward County, Florida - July 2025). The relief sought by various plaintiffs in these matters includes compensatory, abatement, restitution and punitive damages, as well as injunctive relief. Additionally, the Company has received from the U.S. Department of Justice (“DOJ”) and the Attorneys General of numerous states subpoenas, civil investigative demands, and other requests concerning opioid-related matters. The Company continues to communicate with the DOJ regarding purported violations of the federal Controlled Substances Act and the federal False Claims Act in dispensing prescriptions for opioids and other controlled substances at its pharmacies nationwide. Usual and Customary Pricing Litigation The Company is defending a number of claims, lawsuits and investigations that allege that the Company’s retail pharmacies overcharged for prescription drugs by not submitting the correct usual and customary price during the claims adjudication process. These actions have been brought by different types of plaintiffs, including insurance companies, plan members, government and private payors, based on different legal theories. The Company has appropriately accrued for these matters, based on each matter's unique facts and circumstances. As of August 31, 2023, the Company has accrued an estimated liability of approximately $304 million for these matters. Loss contingencies are highly subjective and unpredictable and unfavorable developments can occur. The amount of the actual loss may differ materially from the accrual estimate. In one such case, Humana initiated an arbitration before the American Arbitration Association. At the conclusion of that matter, the arbitrator issued an award in Humana’s favor in the amount of $642 million. The Company has asked a federal court to vacate that award. |
Income taxes
Income taxes | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of (Loss) earnings before income tax (benefit) provision were (in millions): 2023 2022 2021 U.S. $ (7,553) $ 2,998 $ 61 Non–U.S. 2,134 987 1,934 Total $ (5,419) $ 3,985 $ 1,995 The Income tax (benefit) provision consists of the following (in millions): 2023 2022 2021 Current provision Federal $ 242 $ 39 $ 79 State (13) 37 115 Non–U.S. 283 260 234 $ 512 $ 336 $ 428 Deferred provision Federal $ (1,886) $ (78) $ (10) State (364) (20) (46) Non–U.S. – tax law change — — 344 Non–U.S. – excluding tax law change (120) (268) (49) (2,370) (366) 239 Income tax (benefit) provision $ (1,858) $ (30) $ 667 The Company's effective tax rate for fiscal 2023 and 2022 was a benefit of 34.3% and 0.8%, respectively. The increase in the effective tax rate benefit was primarily attributable to a reduction in the valuation allowance, changes to deferred taxes as a result of internal legal entity restructuring, and tax benefits related to a measurement change in prior year tax positions. These benefits were partially offset by the impact of certain nondeductible charges for opioid-related claims and litigation settlements recorded during fiscal 2023. The The difference between the statutory federal income tax rate and the effective tax rate is as follows: 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 5.8 0.4 3.5 Foreign income taxed at non-U.S. rates (3.0) (3.0) (4.4) Non-taxable income 2.5 (2.7) (5.0) Non-deductible expenses (4.9) 3.0 0.3 Tax law changes — — 17.3 Change in valuation allowance 1 6.0 (9.0) (4.7) Tax benefits from restructuring 1.1 — (4.2) Tax expense on non-operating equity earnings — — 6.1 Uncertain tax positions (0.5) 1.3 6.2 Non-controlling interest (2.9) 1.2 — Tax credits 2.8 (1.0) (1.8) Conversion of equity investment — (11.8) — Change in outside basis difference 1.9 — — Change in measurement of prior year tax positions 3.5 — — Other 1.0 (0.2) (0.9) Effective income tax rate 2 34.3 % (0.8) % 33.4 % 1 Net of changes in related tax attributes and tax benefits from capital losses generated and utilized. 2 Effective tax rate for fiscal 2023 represents a tax benefit on a pre-tax loss. The deferred tax assets and liabilities included in the Consolidated Balance Sheets consist of the following (in millions): August 31, 2023 August 31, 2022 Deferred tax assets: Compensation and benefits $ 98 $ 171 Insurance 131 108 Accrued rent & lease obligations 5,265 5,296 Legal liability 1 1,551 174 Allowance for doubtful accounts 23 53 Tax attributes 7,784 7,825 Stock compensation 74 56 Deferred income 8 120 Equity method investment 76 — Other 1 143 56 Total deferred tax assets $ 15,153 $ 13,859 Less: valuation allowance 7,360 7,521 Total deferred tax assets, net $ 7,793 $ 6,338 Deferred tax liabilities: Accelerated depreciation $ 254 $ 634 Inventory 403 441 Intangible assets 1,024 1,134 Equity method investment — 314 Lease right-of-use asset 4,690 4,763 Outside basis difference 1 1,045 52 Other 1 180 303 Total deferred tax liabilities 7,596 7,641 Net deferred tax assets (liabilities) $ 197 $ (1,303) 1 Includes certain reclassifications to conform to current period presentation. As of August 31, 2023, the Company has recorded deferred tax assets for tax attributes of $7.8 billion, primarily reflecting the benefit of $1.8 billion in U.S. federal, $465 million in state and $28.7 billion in non-U.S. ordinary and capital losses. In addition, these deferred tax assets include $158 million of income tax credits. Of these deferred tax assets, $6.9 billion will expire at various dates from 2024 through 2040. The residual deferred tax assets of $832 million have no expiration date. The Company believes it is more likely than not that the benefit from certain deferred tax assets will not be realized. The assessment of realization of deferred tax assets is performed based on the weight of the positive and negative evidence available to indicate whether the asset is recoverable, including tax planning strategies that are prudent and feasible. In recognition of this risk, the Company has recorded a valuation allowance of $7.4 billion against those deferred tax assets as of August 31, 2023. Income taxes paid, net of refunds were $64 million, $387 million and $336 million for fiscal 2023, 2022 and 2021, respectively. ASC Topic 740, Income Taxes, provides guidance regarding the recognition, measurement, presentation and disclosure in the financial statement of tax positions taken or expected to be taken on a tax return, including the decision whether to file in a particular jurisdiction. As of August 31, 2023 and 2022, unrecognized tax benefits of $703 million and $618 million were reported within Other non-current liabilities, respectively; $413 million and $473 million were reported against deferred taxes, respectively; and $116 million and $116 million were reported against related tax receivables in Other non-current assets, respectively, on the Consolidated Balance Sheets. These amounts include interest and penalties, when applicable. The following table provides a reconciliation of the total amounts of unrecognized tax benefits (in millions): 2023 2022 2021 Balance at beginning of year $ 1,110 $ 1,098 $ 494 Gross increases related to tax positions in a prior period 12 63 229 Gross decreases related to tax positions in a prior period (19) (51) (52) Gross increases related to tax positions in the current period 12 21 446 Settlements with taxing authorities (7) (19) (13) Lapse of statute of limitations (2) (2) (6) Balance at end of year $ 1,106 $ 1,110 $ 1,098 At August 31, 2023, 2022 and 2021, $588 million, $529 million and $524 million, respectively, of unrecognized tax benefits would favorably impact the effective tax rate if recognized. During the next twelve months, based on current knowledge, it is reasonably possible the amount of unrecognized tax benefits could decrease by up to $257 million due to anticipated federal and state tax audit settlements and the expirations of statutes of limitations associated with tax positions related to multiple state tax jurisdictions. The Company recognizes interest and penalties in the income tax provision in its Consolidated Statements of Earnings. At August 31, 2023 and 2022, the Company had accrued interest and penalties of $125 million and $97 million, respectively. For the years ended August 31, 2023, 2022 and 2021, the amounts reported in income tax expense related to interest and penalties were $29 million, $13 million and $26 million, respectively. The Company files a consolidated U.S. federal income tax return as well as income tax returns in various states and multiple foreign jurisdictions. It is generally no longer under audit examinations for U.S. federal income tax purposes for any years prior to fiscal 2014. With few exceptions, it is no longer subject to state and local income tax examinations by tax authorities for years before fiscal 2008. In foreign tax jurisdictions, the Company is generally no longer subject to examination by the tax authorities in the UK prior to 2015, Luxembourg prior to 2018 and in Germany prior to 2014. The Company has received tax holidays from Swiss cantonal income taxes relative to certain of its Swiss operations. The income tax holidays expired in September 2022. A reduced tax rate will extend through December 2029. The holidays had a beneficial impact of $9 million, $104 million and $118 million (inclusive of capital GILTI tax cost) during fiscal 2023, 2022 and 2021, respectively. This benefit is primarily included as part of the foreign income taxed at non-U.S. rates line in the effective tax rate reconciliation table above. At August 31, 2023, it is not practicable for the Company to determine the amount of the unrecognized deferred tax liability it has with respect to temporary differences related to investments in foreign subsidiaries and foreign corporate joint ventures that are essentially permanent in duration. U.S. tax law changes On August 16, 2022, the United States government enacted the IRA. The IRA establishes a new corporate alternative minimum tax based on financial statement income adjusted for certain items. The new minimum tax is effective for tax years beginning after December 31, 2022 (fiscal 2024). The enactment of the IRA did not have a material impact to the Company’s financial statements. During 2019, the U.S. Treasury Department issued regulations to apply retroactively covering certain components of the Tax Cuts and Jobs Act of 2017. Certain guidance included in these regulations is inconsistent with the Company’s interpretation that led to the recognition of $247 million of tax benefits in prior periods. The tax benefits relate to the Company’s one-time transition tax on certain un-repatriated earnings of foreign subsidiaries, which was enacted as part of the 2017 U.S. tax law changes. Despite this guidance, the Company remains confident in its interpretation of the U.S. tax law changes and intends to defend this position through litigation, if necessary. However, if the Company is ultimately unsuccessful in defending its position, it may be required to reverse all or a portion of the benefits previously recorded. UK tax law changes |
Stock compensation plans
Stock compensation plans | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock compensation plans | Stock compensation plans In fiscal 2021, the Company's Board of Directors approved the Walgreens Boots Alliance, Inc. 2021 Omnibus Incentive Plan (the “2021 Omnibus Plan”). The 2021 Omnibus Plan replicates the Walgreens Boots Alliance, Inc. 2013 Omnibus Incentive Plan and provides incentive compensation to the Company’s non-employee directors, officers and other eligible employees. The Company grants stock options, performance shares and restricted units under the 2021 Omnibus Plan. Performance shares issued under the 2021 Omnibus Plan offer performance-based incentive equity awards to certain employees. Restricted stock units are also equity-based awards with vesting requirements that are granted to key employees. The performance shares and restricted stock unit awards are both subject to restrictions as to continuous employment except in the case of death, normal retirement or total and permanent disability. Stock-based compensation expense associated with such plans for fiscal 2023, 2022 and 2021 was $58 million, $133 million and $155 million, respectively. Certain majority-owned subsidiaries within the U.S. Healthcare segment maintain standalone stock-based compensation plans. Stock-based compensation expense associated with such plans for fiscal 2023 and 2022 was $327 million and $269 million, respectively, including the impact of fair value adjustments resulting from acquisitions. Awards granted under standalone stock-based compensation plans include subsidiary units, profits interests, and options. Awards generally vest over time or subject to achievement of certain subsidiary performance targets. Certain awards accelerate vesting upon a change in control or upon the Company’s acquisition of additional subsidiary equity above a certain threshold. |
Retirement benefits
Retirement benefits | 12 Months Ended |
Aug. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits The Company sponsors several retirement plans, including defined benefit plans, defined contribution plans and a post-retirement 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. The investment strategy of the principal defined benefit pension plan is to hold the majority of its assets in a diverse portfolio ("Matching Portfolio") which aims to broadly match the characteristics of the plan’s liabilities by investing in bonds, derivatives and other fixed income assets, with the remainder invested in predominantly return-seeking assets. Interest rate and inflation rate swaps are also employed to complement the role of fixed and index-linked bond holdings in liability risk management. The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions): August 31, 2023 Level 1 Level 2 Level 3 Equity securities : Equity securities 1 $ 264 $ — $ 264 $ — Debt securities: Fixed interest government bonds 2 1,044 848 196 — Index linked government bonds 2 1,364 1,364 — — Corporate bonds 3 1,214 — 1,214 — Real estate: Real estate 4 466 — — 466 Other : Other investments, net 5 1,242 142 338 761 Total $ 5,594 $ 2,354 $ 2,012 $ 1,228 August 31, 2022 Level 1 Level 2 Level 3 Equity securities : Equity securities 1 $ 967 $ — $ 967 $ — Debt securities: Fixed interest government bonds 2 688 402 285 — Index linked government bonds 2 1,785 1,785 — — Corporate bonds 3 1,980 — 1,980 — Real estate: Real estate 4 548 — — 548 Other : Other investments, net 5 636 10 (87) 713 Total $ 6,603 $ 2,197 $ 3,145 $ 1,261 1 Includes investments in commingled funds, are valued based on quoted prices and are primarily exchange-traded. Securities for which official close or last trade pricing on an active exchange is available are classified as Level 1 investments. If closing prices are not available, or the investments are in a commingled fund, securities are valued at the last quoted bid price and typically are categorized as Level 2 investments. 2 Includes government bonds comprising fixed interest and index linked bonds issued by central governments and are valued based on quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize pricing which considers readily available inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type, as well as dealer-supplied prices. 3 Includes bonds issued by corporations in both segregated and commingled funds and are valued using recently executed transactions, or quoted market prices for similar assets and liabilities in active markets, or for identical assets and liabilities in markets that are not active. If there have been no market transactions in a particular fixed income security, its fair value is calculated by pricing models that benchmark the security against other securities with actual market prices. 4 Includes investments in certain property funds which are valued based on the underlying properties. These properties are valued using a number of standard industry techniques such as cost, discounted cash flows, independent appraisals and market based comparable data. Real estate investments are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2023 were driven by actual return on plan assets still held at August 31, 2023 and purchases during the year. 5 Includes net receivable (payable) amounts for unsettled transactions, cash and cash equivalents, derivatives, insurance linked securities and direct private placements. Cash is categorized as a Level 1 investment and cash in commingled funds is categorized as a Level 2 investment. Amounts receivable (payable) are categorized as level 2 investments. Cash equivalents are valued using observable yield curves, discounting and interest rates and are categorized as Level 2 investments. Derivatives which are exchange-traded and for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market, or exchange on which they are traded, and are categorized as Level 1 investments. Over-the-counter derivatives typically are valued by independent pricing services and are categorized as Level 2 investments. Insurance linked securities are categorized as Level 2. Direct private placements are typically bonds valued by reference to comparable bonds and are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2023 were primarily driven by purchases during the year. Components of net periodic pension costs for the defined benefit pension plans and cumulative pre-tax amounts recognized in accumulated other comprehensive loss are as follows (in millions): Boots and other pension plans 2023 2022 2021 Service costs (Selling, general and administrative expenses) $ 4 $ 5 $ 6 Interest costs (Other income, net) 264 149 139 Expected returns on plan assets/other (Other income, net) (340) (280) (332) Total net periodic pension income $ (72) $ (126) $ (188) Net actuarial loss (gain) $ 730 $ (251) $ (506) Prior service cost (1) (1) (1) Total pre-tax comprehensive loss (income) $ 729 $ (252) $ (507) Change in benefit obligations for the defined benefit pension plans (in millions): 2023 2022 Benefit obligation at beginning of year $ 5,967 $ 10,206 Service costs 4 5 Interest costs 264 149 Net actuarial gain (897) (3,042) Benefits paid (286) (304) Currency translation adjustments 463 (1,047) Benefit obligation at end of year $ 5,515 $ 5,967 Change in plan assets for the defined benefit pension plans (in millions): 2023 2022 Plan assets at fair value at beginning of year $ 6,603 $ 10,475 Employer contributions 40 45 Benefits paid (286) (304) Return on assets (1,275) (2,477) Currency translation adjustments 511 (1,136) Plan assets at fair value at end of year $ 5,594 $ 6,603 Amounts recognized in the Consolidated Balance Sheets (in millions): August 31, 2023 August 31, 2022 Other non-current assets $ 306 $ 863 Accrued expenses and other liabilities (10) (9) Other non-current liabilities (216) (217) Net asset recognized at end of year $ 80 $ 637 The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension plans, including accumulated benefit obligations in excess of plan assets, were as follows (in millions): August 31, 2023 August 31, 2022 Projected benefit obligation $ 5,515 $ 5,967 Accumulated benefit obligation 5,503 5,961 Fair value of plan assets 1 5,594 6,603 1 Represents plan assets of The Boots plan, the Company's only funded defined benefit pension plan. Estimated future benefit payments for the next 10 years from defined benefit pension plans to participants are as follows (in millions): Estimated future benefit payments 2024 $ 324 2025 305 2026 317 2027 326 2028 337 2029-2033 1,798 The assumptions used in accounting for the defined benefit pension plans were as follows: 2023 2022 Weighted-average assumptions used to determine benefit obligations Discount rate 5.22 % 4.20 % Rate of compensation increase 3.73 % 3.04 % Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.20 % 1.57 % Expected long-term return on plan assets 4.90 % 2.90 % Rate of compensation increase 3.04 % 2.80 % In determining long-term rate of return on plan assets assumption, the Company considers both the historical performance of the investment portfolio as well as the long-term market return expectations based on the investment mix of the portfolio. A change in any of these assumptions would have an effect on its pension expense. A 25 basis point increase in the discount rate would result in a decline of $159 million to the Company’s pension benefit obligation. A 25 basis point decrease on the expected return on plan assets assumption would decrease the Company’s pension income by $14 million. Based on current actuarial estimates, the Company plans to make contributions of $18 million to its defined benefit pension plans in fiscal 2024 and expects to make contributions beyond 2024, which will vary based upon many factors, including the performance of the defined benefit pension plan assets. 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 Walgreens Boots Alliance Board of Directors. The profit-sharing provision is an expense of $239 million, $234 million and $221 million in fiscal 2023, 2022 and 2021, respectively. The Company’s contributions were $241 million, $236 million and $222 million in fiscal 2023, 2022 and 2021, respectively. The Company also has certain contract based defined contribution arrangements. The principal one is UK based to which both the Company and participating employees contribute. The cost recognized in the Consolidated Statement of Earnings was $83 million, $90 million and $101 million in fiscal 2023, 2022 and 2021, respectively. Post-retirement healthcare plan The Company provides certain health insurance benefits to retired U.S. employees who meet eligibility requirements, including age, years of service and date of hire. The costs of these benefits are accrued over the service life of the employee. |
Capital stock
Capital stock | 12 Months Ended |
Aug. 31, 2023 | |
Capital Stock [Abstract] | |
Capital stock | Capital stock In June 2018, Walgreens Boots Alliance authorized a stock repurchase program (the “June 2018 stock repurchase program”), which authorized the repurchase of up to $10.0 billion of the Company's common stock, which program has no specified expiration date. In July 2020, the Company announced that it had suspended activities under this program and no shares were repurchased in fiscal 2022 or 2023. As of August 31, 2023, the Company had approximately $2.0 billion remaining under the June 2018 stock repurchase program. The Company determines the timing and amount of repurchases based on its assessment of various factors including prevailing market conditions, alternate uses of capital, liquidity, the economic environment and other factors. The timing and amount of these purchases may change at any time and from time to time. The Company has repurchased, and may from time to time in the future repurchase, shares on the open market through Rule 10b5-1 plans, which enable a company to repurchase shares at times when it otherwise might be precluded from doing so under insider trading laws. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 12 Months Ended |
Aug. 31, 2023 | |
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 (loss) (“AOCI”) by component and net of tax for fiscal 2023, 2022 and 2021 (in millions): Pension/post-retirement obligations Unrealized gain (loss) on cash flow hedges Net investment hedges Unrealized gain (loss) on available for sale debt securities 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 532 10 (6) 127 (24) 384 1,022 Amounts reclassified from AOCI (8) 17 — — — (3) 6 Business disposal (4) — — — — 795 792 Tax (provision) benefit (132) (6) 6 (31) 6 — (157) Net change in other comprehensive income (loss) 389 21 (1) 96 (18) 1,176 1,663 Balance at August 31, 2021 $ (359) $ (10) $ (35) $ 96 $ (29) $ (1,772) $ (2,109) Other comprehensive income (loss) before reclassification adjustments 278 6 327 451 (326) (833) (97) Amounts reclassified from AOCI (22) 3 — (577) 31 — (565) Other (6) — — — — — (6) Tax (provision) benefit (48) (2) (79) 32 70 — (27) Net change in other comprehensive income (loss) 203 7 248 (95) (226) (833) (696) Balance at August 31, 2022 $ (157) $ (3) $ 213 $ 1 $ (254) $ (2,605) $ (2,805) Other comprehensive (loss) income before reclassification adjustments (705) (7) (172) (2) 6 379 (500) Amounts reclassified from AOCI (26) 4 — — 158 (14) 121 Tax benefit (provision) 190 — 42 1 (42) — 190 Net change in other comprehensive (loss) income (541) (2) (130) (2) 122 364 (189) Balance at August 31, 2023 $ (698) $ (5) $ 83 $ — $ (132) $ (2,240) $ (2,993) |
Segment reporting
Segment reporting | 12 Months Ended |
Aug. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment reporting | Segment reporting The Company aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare. 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. U.S. Retail Pharmacy The Company's U.S. Retail Pharmacy segment includes the Walgreens business which is comprised of the operations of retail drugstores, health and wellness services, specialty and home delivery pharmacy services, and its equity method investment in Cencora. 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, personal care and consumables and general merchandise. International The Company's International segment consists of pharmacy-led health and beauty retail businesses outside the U.S. and a pharmaceutical wholesaling and distribution business in Germany. Pharmacy-led health and beauty retail businesses include Boots branded stores in the UK, the Republic of Ireland and Thailand, the Benavides brand in Mexico and the Ahumada brand in Chile. Sales for these businesses are principally derived from the sale of prescription drugs and health and wellness, beauty, personal care and other consumer products. U.S. Healthcare The Company’s U.S. Healthcare segment is a consumer-centric, technology-enabled healthcare business that engages consumers through a personalized, omni-channel experience across the care journey. The U.S. Healthcare segment delivers improved health outcomes and lower costs for payors and providers by delivering care through owned and partnered assets. The U.S. Healthcare segment currently consists of a majority position in VillageMD, a national provider of value-based care with primary, multi-specialty, and urgent care providers serving patients in traditional clinic settings, in patients’ homes and online appointments; Shields, a specialty pharmacy integrator and accelerator for hospitals; CareCentrix, a participant in the post-acute and home care management sectors, and the Walgreens Health organic business that contracts with payors and providers to deliver clinical healthcare services to their members and members’ caregivers through both digital and physical channels. The results of operations for reportable segments include procurement benefits. Corporate-related overhead costs are not allocated to reportable segments and are reported in “Corporate and Other”. The following table reflects results of operations of the Company's reportable segments (in millions): 2023 2022 2021 Sales: U.S. Retail Pharmacy $ 110,314 $ 109,078 $ 112,005 International 22,198 21,830 20,505 U.S. Healthcare 6,570 1,795 — Walgreens Boots Alliance, Inc. $ 139,081 $ 132,703 $ 132,509 Adjusted operating income: U.S. Retail Pharmacy $ 3,689 $ 5,029 $ 5,019 International 935 726 466 U.S. Healthcare (566) (370) (57) Corporate and Other (187) (251) (311) Walgreens Boots Alliance, Inc. $ 3,871 $ 5,133 $ 5,117 Depreciation and amortization: U.S. Retail Pharmacy $ 1,362 $ 1,415 $ 1,513 International 328 355 399 U.S. Healthcare 560 211 1 Corporate and Other 8 9 10 Walgreens Boots Alliance, Inc. $ 2,257 $ 1,990 $ 1,923 Capital expenditures: U.S. Retail Pharmacy $ 1,421 $ 1,207 $ 1,030 International 308 295 243 U.S. Healthcare 375 218 34 Corporate and Other 13 15 5 Walgreens Boots Alliance, Inc. $ 2,117 $ 1,734 $ 1,312 The following table reconciles adjusted operating income to operating (loss) income (in millions): 2023 2022 2021 Adjusted operating income (Non-GAAP measure): $ 3,871 $ 5,133 $ 5,117 Certain legal and regulatory accruals and settlements (7,466) (768) (75) Transformational cost management (1,181) (763) (417) Acquisition-related amortization (1,126) (855) (523) Acquisition-related costs (323) (223) (54) Impairment of intangible assets (299) (783) (49) Adjustments to equity earnings (loss) in Cencora (211) (218) (1,645) LIFO provision (187) (135) (13) Store damage and inventory loss insurance recovery 40 — — Operating (loss) income (GAAP measure) $ (6,882) $ 1,387 $ 2,342 No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Substantially all of our pharmacy sales are to customers covered by third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies) that agree to pay for all or a portion of a customer's eligible prescription purchases. In the U.S. Retail Pharmacy segment, three third-party payors accounted for approximately 33%, 31%, and 33% of the Company's consolidated sales in fiscal 2023, 2022 and 2021, respectively. Geographic data for sales is as follows (in millions): 2023 2022 2021 United States $ 116,883 $ 110,873 $ 112,005 United Kingdom 8,984 8,894 8,298 Germany 11,211 11,178 10,472 Other 2,003 1,757 1,734 Sales $ 139,081 $ 132,703 $ 132,509 Geographic data for long-lived assets, defined as operating lease right-of-use assets and property, plant and equipment, is as follows (in millions): 2023 2022 1 United States $ 28,951 $ 28,710 United Kingdom 3,622 3,663 Other 681 614 Total long-lived assets $ 33,254 $ 32,988 1. Fiscal 2022 data has been updated to conform to current period presentation |
Sales
Sales | 12 Months Ended |
Aug. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Sales | Sales The following table summarizes the Company’s sales by segment and by major source (in millions): 2023 2022 2021 U.S. Retail Pharmacy Pharmacy $ 82,118 $ 80,434 $ 84,892 Retail 28,195 28,643 27,113 Total $ 110,314 $ 109,078 $ 112,005 International Pharmacy $ 3,664 $ 3,727 $ 3,808 Retail 7,324 6,924 6,225 Wholesale 11,211 11,178 10,472 Total $ 22,198 $ 21,830 $ 20,505 U.S. Healthcare $ 6,570 $ 1,795 $ — Walgreens Boots Alliance, Inc. $ 139,081 $ 132,703 $ 132,509 |
Related parties
Related parties | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related parties | Related parties The Company has a long-term pharmaceutical distribution agreement with Cencora pursuant to which the Company sources branded and generic pharmaceutical products from Cencora. Additionally, Cencora receives sourcing services for generic pharmaceutical products. Related party transactions with Cencora (in millions): 2023 2022 2021 Purchases, net $ 65,173 $ 62,174 $ 62,513 Trade accounts payable, net of receivables $ 7,814 $ 6,915 $ 6,589 See Note 2. Discontinued operations for further information. |
Supplementary financial informa
Supplementary financial information | 12 Months Ended |
Aug. 31, 2023 | |
Supplementary Financial Information [Abstract] | |
Supplementary financial information | Supplementary financial information Summary of Quarterly Results (Unaudited) (in millions, except per share amounts) Quarter ended November February May August Fiscal year Fiscal 2023 Sales $ 33,382 $ 34,862 $ 35,415 $ 35,422 $ 139,081 Gross profit $ 6,953 $ 7,055 $ 6,588 $ 6,475 $ 27,072 Net (loss) earnings attributable to Walgreens Boots Alliance, Inc. $ (3,721) $ 703 $ 118 $ (180) $ (3,080) Net (loss) earnings per common share Basic $ (4.31) $ 0.81 $ 0.14 $ (0.21) $ (3.57) Diluted $ (4.31) $ 0.81 $ 0.14 $ (0.21) $ (3.57) Cash dividends declared per common share $ 0.4800 $ 0.4800 $ 0.4800 $ 0.4800 $ 1.9200 Fiscal 2022 Sales $ 33,901 $ 33,756 $ 32,597 $ 32,449 $ 132,703 Gross profit $ 7,574 $ 7,708 $ 6,572 $ 6,410 $ 28,265 Net earnings (loss) attributable to Walgreens Boots Alliance, Inc. $ 3,580 $ 883 $ 289 $ (415) $ 4,337 Net earnings (loss) per common share Basic $ 4.13 $ 1.02 $ 0.33 $ (0.48) $ 5.02 Diluted $ 4.13 $ 1.02 $ 0.33 $ (0.48) $ 5.01 Cash dividends declared per common share $ 0.4775 $ 0.4775 $ 0.4775 $ 0.4800 $ 1.9125 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net Income (Loss) | $ (180) | $ 118 | $ 703 | $ (3,721) | $ (415) | $ 289 | $ 883 | $ 3,580 | $ (3,080) | $ 4,337 | $ 2,542 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Aug. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of major accounting p_2
Summary of major accounting policies (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Consolidated Financial Statements include all subsidiaries in which the Company holds a controlling interest and certain Variable Interest Entities (VIEs) for which the Company is the primary beneficiary. 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 preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“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. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. Adverse global macroeconomic conditions, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payor and customer relationships and terms, strategic transactions including acquisitions, dispositions and changes in laws and regulations 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. On June 1, 2021, the Company completed the sale of the majority of the Company's Alliance Healthcare business as well as a portion of the Company’s retail pharmacy international businesses in Europe (“Disposal Group”) to Cencora, Inc. (“Cencora”), formerly known as AmerisourceBergen Corporation (“AmerisourceBergen”). The Disposal Group met the criteria to be reported as discontinued operations. Therefore, the operating results of the Disposal Group are reported as discontinued operations for fiscal 2021. Unless otherwise specified, disclosures in these Consolidated Financial Statements reflect continuing operations only. See Note 2. Discontinued operations, for further information. Effective as of the first quarter of fiscal 2022, the Company is aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare. In fiscal 2022, the Company changed the name of two reportable segments to better align with the Company’s business activities, structure and strategy. The “United States” segment was renamed to “U.S. Retail Pharmacy” and the “Walgreens Health” segment was renamed to “U.S. Healthcare”. The segment name changes did not result in any change to the composition of the segments and therefore no change to the historical results of segment operations. The information for these segments for all periods included in these consolidated financial statements has been presented using the new names. See Note 17. Segment reporting for further information. Certain amounts in the Consolidated Financial Statements and associated notes may not add due to rounding. Percentages have been calculated using unrounded amounts for all periods presented. Certain prior period data, has been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand, qualifying money market funds, and other highly liquid investments with an original maturity of three months or less. Credit and debit card receivables, which generally settle within one seven |
Restricted cash and other cash flows from operating activities | Restricted cash and other cash flows from operating activities Restricted cash The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agreements and cash restricted by law and other obligations. |
Accounts receivable | Accounts receivable Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers and amounts due from third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies). Trade receivables were $4.3 billion and $4.0 billion at August 31, 2023 and 2022, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from Cencora (see Note 19. Related parties), were $1.1 billion at August 31, 2023 and 2022. |
Inventories | Inventories The Company values inventories on a lower of cost and net realizable value or market basis. Inventories include product costs, inbound freight, direct labor, warehousing costs for retail pharmacy operations, and distribution costs of products, and are reduced by vendor allowances not classified as a reduction of advertising expense. The Company’s U.S. Retail Pharmacy segment inventory is accounted for using the last-in-first-out (“LIFO”) method. The total carrying value of the segment inventory accounted for under the LIFO method was $6.2 billion and $6.5 billion at August 31, 2023 and 2022, respectively. At August 31, 2023 and 2022, U.S. Retail Pharmacy segment inventory would have been greater by $3.6 billion and $3.4 billion, respectively, if it had been valued on a lower of first-in-first-out (“FIFO”) cost and net realizable value. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Major repairs, which extend the useful life of an asset, are capitalized; routine maintenance and repairs are charged against earnings. Depreciation is provided on a straight-line basis over the estimated useful lives of owned assets. Leasehold improvements, equipment under finance lease and finance lease properties are amortized over their respective estimated useful life or over the term of the lease, whichever is shorter. The majority of the Company’s fixtures and equipment is depreciated under the composite method of depreciation. The following table summarizes the Company’s property, plant and equipment (in millions) and estimated useful lives (in years): Estimated useful life 2023 2022 Land and land improvements 20 $ 1,778 $ 2,333 Buildings and building improvements 3 to 50 6,683 6,996 Fixtures and equipment 3 to 20 9,782 9,375 Capitalized system development costs and software 3 to 10 3,821 3,087 Assets under construction 1,400 1,785 Finance lease properties 1,075 996 $ 24,540 $ 24,572 Less: accumulated depreciation and amortization 12,953 12,843 Balance at end of year $ 11,587 $ 11,729 |
Leases | Leases The Company leases certain retail stores, clinics, warehouses, distribution centers, office space, land and equipment. Initial terms for leased premises in the United States are typically 10 to 25 years, followed by additional terms containing renewal options 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 lease term of real estate leases includes renewal options that are reasonably certain of being exercised. Options to extend are considered reasonably certain of being exercised based on evaluation if there are significant investments within the leased property which have useful lives greater than the non-cancelable lease term, performance of the underlying store and the Company’s economic and strategic initiatives. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheets. The Company determines if an arrangement contains a lease at the inception of a contract. The lease classification is determined at the commencement date. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease during the lease term. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments during the lease term. Lease commencement is the date the Company has the right to control the property. The Company utilizes its incremental borrowing rate to discount the lease payments. The incremental borrowing rate is based on the Company's estimated rate of interest for a collateralized borrowing over a similar term as the lease term. The operating lease right-of-use assets also include lease payments made before commencement, lease incentives and are recorded net of impairment. Operating leases are expensed on a straight line basis over the lease term. The Company accounts for lease components and non-lease components as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the right-of-use assets or lease liabilities. These are expensed as incurred. The Company has real estate leases which require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs and hence are not included in the lease payments used to calculate lease liability. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. The Company does not separately account for the land portion of the leases involving land and building. Finance leases are recognized within property, plant and equipment and as a finance lease liability within accrued expenses and other liabilities and other non-current liabilities. |
Business combinations | Business combinations The Company allocates the fair value of purchase consideration to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires estimates and the use of valuation techniques when a market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to fair value of the purchase consideration and the allocation of purchase consideration to all tangible and intangible assets acquired and identified and liabilities assumed. |
Variable interest entities | Variable interest entities The Company consolidates certain subsidiaries of Village Practice Management Company Holdings, LLC through its principal subsidiary Village Practice Management Company, LLC (“VillageMD”) which are clinical entities and managed services organizations (collectively, the “Entities”) where VillageMD has a controlling financial interest. The Entities were established to employ healthcare providers, contract with payors, or to deliver healthcare services to patients and are designed to comply with certain regulatory and legal requirements. The Company generally has no equity interests in the Entities. The Entities are variable interest entities because there is insufficient equity at-risk in the Entities to finance their operations without additional financial support and the equity holders of the Entities generally lack the characteristics of a controlling financial interest. The Company's service agreements (“SAs”) are variable interests in the Entities because they transfer substantially all the residual risks and rewards of ownership in the Entities to the Company. The Company has the power to direct the activities of the Entities that most significantly impact their economic performance through the SAs. The activities that most significantly impact the economic performance of the Entities pertain to establishing the scope of services provided, fees charged for clinical services, negotiation and execution of contracts and managing policies and procedures related to management of the Company’s patient population. The SAs generally provide the Company with rights to substantially all the earnings of the Entities and obligate the Company to fund losses of the Entities. As a result, the Company is the primary beneficiary of the Entities and consolidates the Entities. The assets and liabilities of the Entities and the Entities’ results of operations are presented in the Company’s consolidated financial statements. The Entities’ revenues consist of amounts recognized for services provided to patients. Cost of sales and Selling, general and administrative expenses consist primarily of provider compensation expenses as well as clinical operating and support costs. The Company is also exposed to the risk of loss from certain Entities’ involvement with risk-based arrangements. There are generally no restrictions on the Entities' assets or on the settlement of its liabilities. The assets of the Entities can be used to settle obligations of the Company and creditors of Entities have recourse to the general credit of the Company. |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in business combinations. Goodwill is assigned to reporting units. Reporting units are aggregated and deemed a single reporting unit if the components have similar economic characteristics. Acquired intangible assets are recorded at fair value. 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 could more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value. As part of the Company’s impairment analysis, fair value of a reporting unit is generally determined using the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping, as well as recent guideline transactions. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions with respect to the business and financial performance of the Company's reporting units. These estimates and assumptions primarily include, but are not limited to the selection of appropriate peer group companies, control premiums appropriate for acquisitions in the industries in which we compete, discount rates, terminal growth rates, forecasts of revenue, operating income, depreciation, amortization, working capital requirements and capital expenditures. The Company also compares the sum of estimated fair values of reporting units to the Company’s fair value as implied by the market value of its equity securities. This comparison provides an indication that, in total, assumptions and estimates are reasonable. Future declines in the overall market value of the Company’s equity securities may provide an indication that the fair value of one or more reporting units has declined below its carrying value. Indefinite-lived intangible assets are tested for impairment by comparing the estimated fair value of the asset to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized and the asset is written down to its estimated fair value. Indefinite-lived intangible assets fair values are estimated using the relief from royalty method and multi-period excess earnings method of the income approach. The determination of the fair value of the indefinite-lived intangibles requires the Company to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to forecasts of revenues and expenses, the selection of appropriate royalty rate and discount rates. |
Equity method investments | Equity method investments The Company uses the equity method of accounting for equity investments if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of these investees is included in consolidated net earnings. Judgment regarding the level of influence over each equity method investment includes considering key factors such as the Company’s ownership interest, legal form of the investee (e.g. limited liability partnership), representation on the board of directors, participation in policy-making decisions and material intra-entity transactions. |
Financial instruments | Financial instruments The Company uses derivative instruments to hedge its exposure to market risks, including interest rate and currency risks, arising from operating and financing risks. In accordance with its risk management policies, the Company does not hold or issue derivative instruments for trading or speculative purposes. Derivatives are recognized on the Consolidated Balance Sheets at their fair values. When the Company becomes a party to a derivative instrument and intends to apply hedge accounting, it formally documents the hedge relationship and the risk management objective for undertaking the hedge which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value of a derivative instrument depends on whether the Company had designated it in a qualifying hedging relationship and on the type of hedging relationship. The Company applies the following accounting policies: • Changes in the fair value of a derivative designated as a fair value hedge, along with the gain or loss on the hedged asset or liability attributable to the hedged risk, are recorded in the Consolidated Statements of Earnings in the same line item, generally interest expense, net. • Changes in the fair value of a derivative designated as a cash flow hedge are recorded in accumulated other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income and reclassified into earnings in the period or periods during which the hedged item affects earnings and is presented in the same line item as the earnings effect of the hedged item. • Changes in the fair value of a derivative designated as a hedge of a net investment in a foreign operation are recorded in cumulative translation adjustments within accumulated other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. Recognition in earnings of amounts previously recorded in cumulative translation adjustments is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged investments in foreign operations. • Changes in the fair value of a derivative not designated in a hedging relationship are recognized in the Consolidated Statements of Earnings. Cash receipts or payments on a settlement of a derivative contract are reported in the Consolidated Statements of Cash Flows consistent with the nature of the underlying hedged item. For derivative instruments designated as hedges, the Company assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Highly effective means that cumulative changes in the fair value of the derivative are between 80% and 125% of the cumulative changes in the fair value of the hedged item. In addition, when the Company determines that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When it is probable that a hedged forecasted transaction will not occur, the Company discontinues hedge accounting for the affected portion of the forecasted transaction and reclassifies any gains or losses in accumulated other comprehensive income (loss) to earnings in the Consolidated Statement of Earnings. When a derivative in a hedge relationship is terminated or the hedged item is sold, extinguished or terminated, hedge accounting is discontinued prospectively. |
Pension and postretirement benefits | Pension and post-retirement benefits The Company has various defined benefit pension plans that cover some of its non-U.S. employees. The Company also has a post-retirement healthcare plan that covers qualifying U.S. employees. Eligibility and the level of benefits for these plans vary depending on participants’ status, date of hire and or length of service. Pension and post-retirement healthcare plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts. These assumptions include discount rates, healthcare cost trends, long-term return on plan assets, retirement rates, mortality rates and other factors. |
Redeemable noncontrolling interest | Redeemable non-controlling interests The Company presents non-controlling interests in temporary equity within its Consolidated Balance Sheets if it is redeemable at a fixed or determinable price on a fixed or determinable date on the option of the holder, or upon the occurrence of an event that is not solely within the control of the Company. |
Noncontrolling interests | Non-controlling interests The Company presents non-controlling interests as a component of equity on its Consolidated Balance Sheets and reports the portion of earnings or losses for non-controlling interests as net earnings attributable to non-controlling interests in the Consolidated Statements of Earnings. Non-controlling interests primarily relates to VillageMD. As of August 31, 2023 and 2022, VillageMD non-controlling interests comprise 16.0 million and 3.9 million preferred units and 6.5 million and 6.1 million common units, including incentive units, respectively. Preferred units non-controlling interests have an aggregate liquidation preference of $4.9 billion. All preferred units are convertible into VillageMD common units and certain preferred units are also subject to redemption features controlled by the Company. All preferred units participate in dividends declared by the VillageMD board in the ordinary course of business and in distributions upon a winding-up or change in control of VillageMD. Certain preferred units also participate in cumulative compounding dividends that accumulate at a rate of 5.5% per annum based on the adjusted issue price of the preferred unit and may be settled in cash or shares at the option of the preferred unit holder. The Company attributes VillageMD earnings and losses to non-controlling interests using the hypothetical-liquidation book value (“HLBV”) method, which is a balance sheet-oriented approach. Under the HLBV method, VillageMD income and losses are attributed to each unit based on changes to the amounts that each unit would hypothetically receive at each period end under the liquidation provisions of the VillageMD Amended and Restated Limited Liability Company Agreement, assuming the net assets of VillageMD were liquidated at their carrying values determined in accordance with GAAP. The proportion of earnings and losses attributed to non-controlling interests under HLBV is subject to change as VillageMD net assets change. |
Currency | Currency Assets and liabilities of non-U.S. dollar functional currency operations are translated into U.S. dollars at end-of-period exchange rates while revenues, expenses and cash flows are translated at average monthly exchange rates over the period. Equity is translated primarily at historical exchange rates and the resulting cumulative translation adjustments are included as a component of Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. |
Commitments and contingencies | Commitments and contingenciesThe Company assesses its liabilities and contingencies for outstanding legal proceedings and reserves are established on a case-by-case basis for those legal claims for which management concludes that it is probable that a loss will be incurred and that the amount of such loss can be reasonably estimated. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. With respect to litigation and other legal proceedings where the Company has determined that a loss is reasonably possible, the Company may be 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’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Therefore, it is possible that an unfavorable resolution of one or more pending litigation or other contingencies could have a material adverse effect on the Company’s Consolidated Financial Statements in a future fiscal period. Management’s assessment of current litigation and other legal proceedings, including the corresponding accruals, could change because of the discovery of facts with respect to legal actions or other proceedings pending against the Company which are not presently known. Adverse rulings or determinations by judges, juries, governmental authorities or other parties could also result in changes to management’s assessment of current liabilities and contingencies. Accordingly, the ultimate costs of resolving these claims may be substantially higher or lower than the amounts reserved. |
Revenue recognition, Cost of sales | Revenue recognition Sales are recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring control of goods or services to the customer. Sales are reported on the gross amount billed to a customer less discounts if it has earned revenue as a principal from the sale of goods and services. Sales are reported on the net amount retained (i.e., the amount billed to the customer less the amount paid to a vendor) if the Company has earned a commission or a fee as an agent. Retail and Pharmacy The Company recognizes revenue, net of taxes and expected returns, at the time it sells merchandise, provides services or dispenses prescription drugs to the customer. The Company estimates revenue based on expected reimbursements from third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. The estimates are based on all available information including historical experience and are updated to actual reimbursement amounts. The Company’s loyalty rewards programs represent separate performance obligations and are accounted for using the deferred revenue approach. When goods are sold, the transaction price is allocated between goods sold and loyalty points or Walgreens cash awarded based upon the relative standalone selling price. The revenue allocated to the loyalty points is recognized upon redemption. Loyalty programs breakage is recognized as revenue based on the redemption pattern. Customer purchases of the Company's own gift cards are not recognized as revenue until the card is redeemed. Gift card breakage (i.e., unused gift card) is recognized as revenue based on the redemption pattern. The Company recognizes contract liabilities to record 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 Walgreens Cash or reward points on purchases for redemption at a later date. Wholesale Wholesale revenue is recognized, net of taxes and expected returns, upon shipment of goods, which is generally also the day of delivery. Healthcare services The Company provides healthcare services under fee-for-service and value-based arrangements. Fee-for-service revenues are recognized at the point-in-time medical care is provided. Revenues are reported based on expected net collection rates, which are calculated based on historical collection rates in relation to amounts billed at the time of service. Most of the Company’s value-based arrangements are Medicare Advantage (“MA”) contracts or direct contracting arrangements under the Centers for Medicare and Medicaid Services (“CMS”) Accountable Care Organization Realizing Equity, Access, and Community Health (“ACO REACH”) Model. Revenues from value-based arrangements (“risk-based revenues”) are primarily earned from contracts in which the Company has full or shared risk for the healthcare payor’s eligible members (“value-based patients”). Risk-based revenues are recognized ratably over the term of the contract (generally, one year or less) as the Company's stand-ready obligation to provide healthcare services is satisfied. The Company receive fees from payors which are generally based on a fixed monthly percentage of the premium received by the payor from the payor’s members, or a portion of the payor’s savings relative to an agreed-upon financial benchmark. The Company estimates transaction price based on historical data and data from the payors. Estimates are adjusted to the final settlement amount received from the payor. The Company evaluates whether it is a principal or agent in an arrangement based on the Company’s exposure to financial risk under the arrangement and the Company’s control over the provision of services. The Company has determined that it acts as a principal in the vast majority of its arrangements. Cost of sales Retail, Pharmacy and Wholesale Cost of sales includes the purchase price of goods and cost of services rendered, store and warehouse inventory loss, inventory obsolescence, warehousing costs for retail operations, purchasing costs, freight costs, cash discounts, vendor allowances and supplier rebates. Cost of sales is derived based upon point-of-sale scanning information with an estimate for shrinkage and is adjusted based on periodic inventory counts. Vendor allowances are principally received as a result of purchases, sales or promotion of vendors’ products. Allowances are generally recorded as a reduction of inventory and are recognized as a reduction of cost of sales when the related merchandise is sold. Allowances received for promoting vendors’ products, if received for a specific, incremental, identifiable cost, are offset against advertising expense and result in a reduction of Selling, general and administrative expenses to the extent of advertising costs incurred, with the excess treated as a reduction of inventory costs. Rebates or refunds received by the Company from its suppliers, mostly in cash, are considered as an adjustment of the prices of the supplier’s products purchased by the Company. Healthcare services For operations and activities related to the provision of healthcare, cost of services includes activities that are directly related to the provision of care, including medical claims expense, cost of care, clinic operating and support costs, and allocated depreciation and amortization. Medical claims expense represents medical claims expenses related to fee-for-service and value-based arrangements and primarily includes costs for third-party healthcare service providers, including contracted providers, that provide medical care to patients. Medical claims expense and the liability for unpaid claims include estimates of the Company’s obligations for medical care services that have been rendered by third parties for which the Company is contractually obligated to pay, but for which claims have either not yet been received, processed or paid. The Company develops estimates for medical care services incurred but not reported (“IBNR”) utilizing actuarial models when a sufficient amount of medical claims history is available from the third-party healthcare service providers. In developing its unpaid claims liability estimates, the Company applies different estimation methods depending on which incurred claims are being estimated. Cost of care represents the cost of employed providers and certain affiliated providers, including base compensation, quality incentive bonuses, provider benefits and share-based compensation. Clinic operating and support costs include costs incurred to operate clinics, including clinical care support staff, patient support staff, population health management employees, rent, utilities and supplies. |
Selling, general and administrative expenses | Selling, general and administrative expenses Selling, general and administrative expenses mainly consist of salaries and employee costs, occupancy costs, depreciation and amortization, credit and debit card fees and expenses directly related to stores. In addition, other costs included are headquarters’ expenses, advertising costs (net of vendor advertising allowances), wholesale warehousing costs and insurance. |
Advertising costs | Advertising costs Advertising costs are reduced by the portion funded by vendors, if reimbursement represents a specific, incremental, identifiable cost, and expensed as incurred or when services have been received. Net advertising expenses, which are included in Selling, general and administrative expenses in the Consolidated Statement of Earnings, were $775 million, $862 million and $772 million for fiscal 2023, 2022, and 2021, respectively. |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying value of such an asset may not be recoverable. The evaluation of long-lived assets is performed at the lowest level of identifiable cash flows, typically at the store level for retail pharmacy operations. Long-lived assets related to the Company’s retail pharmacy operations include property, plant and equipment, definite-lived intangibles, and right of use assets. If the asset group fails the recoverability test, then an impairment charge is determined based on the difference between the fair value of the asset group compared to its carrying value. Fair value of the asset group is generally determined using the income approach based on cash flows expected from the use and eventual disposal of the asset group. |
Stock compensation plans | Stock compensation plans Stock based compensation is measured at fair value at the grant date. The Company grants, performance shares and restricted units, and has historically granted stock options, to the Company’s non-employee directors, officers and employees. The Company recognizes compensation expense on a straight-line basis over the substantive service period. The fair value of each performance share granted assumes that performance goals will be achieved at 100 percent. Subsequently, the Company reassesses the probability of achieving the performance goals and vesting and adjusts compensation expense accordingly, including the reversal of previously recognized compensation expense if it is no longer probable that the awards will vest. See Note 13. Stock compensation plans, for more information on the Company’s stock-based compensation plans. |
Insurance | Insurance The Company obtains insurance coverage for catastrophic exposures as well as those risks required by law to be insured. In general, the Company’s U.S. subsidiaries retain a significant portion of losses related to workers’ compensation, property, comprehensive general, pharmacist, and vehicle liability and full-risk value-based arrangements, while non-U.S. subsidiaries manage their exposures through insurance coverage with third-party carriers. The U.S. Healthcare segment also maintains medical malpractice insurance including professional liability insurance. Management regularly reviews the probable outcome of claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage and the established accruals for liabilities. Liabilities for losses are recorded based upon the Company’s estimates for both claims incurred and claims incurred but not reported. The provisions are estimated in part by considering historical claims experience, demographic factors and other actuarial assumptions. |
Income taxes | Income taxes The Company accounts for income taxes according to the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized. In determining the provision for income taxes, the Company uses income, permanent differences between book and tax income, the relative proportion of foreign and domestic income, enacted statutory income tax rates, projections of income subject to Subpart F rules and unrecognized tax benefits related to current year results. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to lapsing of the applicable statute of limitations, recognizing or de-recognizing benefits of deferred tax assets due to future year financial statement projections and changes in tax laws are recognized in the period in which they occur. |
Earnings per share | Earnings per shareThe 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. |
New accounting pronouncements | New accounting pronouncements Adoption of new accounting pronouncements Disclosures by business entities about government assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance. This ASU requires disclosures that are expected to increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The Company adopted the new standard effective September 1, 2022, and the adoption did not impact the Company's disclosures within these consolidated financial statements. New accounting pronouncements not yet adopted Acquired contract assets and contract liabilities in a business combination In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 (Revenue from Contracts with Customers). This ASU is expected to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This ASU is effective for business combinations completed in fiscal years beginning after December 15, 2022 (fiscal 2024). The Company expects to adopt ASU 2021-08 in the first quarter of fiscal 2024 on a prospective basis. While the impact of this ASU is dependent of the nature of any future transactions, the Company currently does not expect adoption to have a material impact on the Company's results of operations, cash flows, or financial position. Liabilities — Supplier Finance Programs In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations. This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is expected to improve financial reporting by requiring new disclosures about the programs, thereby allowing financial statement users to better consider the effect of the programs on an entity’s working capital, liquidity, and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024), except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023 (fiscal 2025). The Company has evaluated the effect of adopting this new accounting guidance and does not expect adoption will have a material impact on the Company's results of operations, cash flows or financial position. |
Summary of major accounting p_3
Summary of major accounting policies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of cash and cash equivalents | The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to total cash, cash equivalents, marketable securities and restricted cash in the Consolidated Statements of Cash Flows for fiscal 2023, 2022 and 2021 (in millions): August 31, 2023 August 31, 2022 August 31, 2021 Cash and cash equivalents $ 728 $ 1,358 $ 559 Marketable securities 11 1,114 634 Cash and cash equivalents - assets held for sale (included in other current assets) 24 — — Restricted cash (included in other current and non-current assets) 93 86 77 Cash, cash equivalents, marketable securities and restricted cash $ 856 $ 2,558 $ 1,270 |
Schedule of property, plant and equipment | The following table summarizes the Company’s property, plant and equipment (in millions) and estimated useful lives (in years): Estimated useful life 2023 2022 Land and land improvements 20 $ 1,778 $ 2,333 Buildings and building improvements 3 to 50 6,683 6,996 Fixtures and equipment 3 to 20 9,782 9,375 Capitalized system development costs and software 3 to 10 3,821 3,087 Assets under construction 1,400 1,785 Finance lease properties 1,075 996 $ 24,540 $ 24,572 Less: accumulated depreciation and amortization 12,953 12,843 Balance at end of year $ 11,587 $ 11,729 |
Schedule of variable interest entities | The following table summarizes the Entities' assets and liabilities (in millions) as of August 31, 2023 and 2022, respectively. August 31, 2023 August 31, 2022 Total assets $ 881 $ 313 Total liabilities 486 142 |
Temporary Equity | The following is a roll forward of the redeemable non-controlling interests in the Consolidated Balance Sheets (in millions): 2023 2022 2021 Opening balance $ 1,042 $ 319 $ — Recognition upon acquisition of subsidiary 1 — 2,684 309 Acquisition of non-controlling interests 2 — (2,047) — Net loss attributable to Redeemable non-controlling interests (21) (73) (3) Redemption price adjustments 3 442 179 19 Reclassifications to Accrued expenses and other liabilities 4 (1,314) — — Other 18 (20) (6) Ending balance $ 167 $ 1,042 $ 319 1. Fiscal 2022 includes $1.9 billion of redeemable non-controlling interests, representing the maximum purchase price to redeem non-controlling units in VillageMD for cash, and redeemable non-controlling interests in Shields Health Solutions Parent, LLC (“Shields”) and CCX Next, LLC (“CareCentrix”). On November 24, 2021, VillageMD commenced a tender offer to purchase up to $1.9 billion of units in VillageMD for cash. The tender offer was fully subscribed and settled on December 28, 2021. The tender offer was funded by cash proceeds provided to VillageMD pursuant to the Unit Purchase Agreement. 2. Fiscal 2022 includes $1.9 billion paid to existing shareholders of VillageMD as part of the fully subscribed tender offer and the acquisition of the remaining 30% non-controlling equity interests in the pharmaceutical wholesale business in Germany. 3. Remeasurement of non-controlling interests, probable of redemption but not currently redeemable, to their redemption value, is recorded to Paid-in capital in the Consolidated Balance Sheets. In fiscal 2023, Shields and CareCentrix redeemable non-controlling interests were recorded to redemption value. 4. Represents the reclassification of the Shields and CareCentrix redeemable non-controlling interests to Accrued expenses and other liabilities in the Consolidated Balance Sheets resulting from the Company's full acquisition of Shields and CareCentrix. |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedules of discontinued operations | The following table shows the fair value of proceeds from the Alliance Healthcare Sale and net carrying value of the assets disposed (in billions): 2021 Fair value of proceeds from disposition 1 $ 6.9 Net assets disposed 5.8 Gain before currency translation adjustments 1.1 Currency translation loss released due to disposition (0.8) Net gain on disposal of discontinued operation 2 $ 0.3 1. Includes base consideration of $6.275 billion adjusted for net working capital and net cash adjustments as set forth in the Share Purchase Agreement. 2. The Company recorded insignificant amount of tax expense due to utilization of capital losses. Results of discontinued operations for prior period were as follows (in millions): 2021 Sales $ 16,070 Cost of sales 14,486 Gross profit 1,584 Selling, general and administrative expense 1 1,254 Operating income from discontinued operations 329 Other income, net 2 314 Interest expense, net (23) Earnings before income tax – discontinued operations 621 Income tax provision 78 Post-tax earnings from other equity method investments 15 Net earnings from discontinued operations $ 557 1. Includes $44 million of divestiture related costs incurred post completion of the Alliance Healthcare Sale. 2. Includes $322 million of gain on sale of discontinued operations. Sales in prior years from the Disposal Group to the Company's continuing operations aggregate to (in millions): 2021 1 Sales $ 1,385 1. Sales in fiscal 2021 until date of disposal. The following table presents cash flows for discontinued operations in prior periods (in millions): 2021 Cash used for operating activities - discontinued operations $ (132) Cash used for investing activities - discontinued operations (58) |
Acquisitions and other Invest_2
Acquisitions and other Investments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of identifiable assets acquired and liabilities assumed | The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Cash consideration 1 $ 4,778 Deferred consideration 100 Summit debt paid at closing 1,963 Fair value of equity consideration 2 1,971 Fair value of non-controlling interests 13 Total $ 8,825 Identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 69 Accounts receivable, net 382 Property, plant and equipment 607 Intangible assets 3 3,359 Operating lease right-of-use assets 756 Other assets 173 Operating lease obligations (773) Deferred tax liability (737) Other liabilities (446) Total identifiable net assets $ 3,390 Goodwill $ 5,436 1. Cash consideration excludes $87 million of cash paid to fund acquisition-related bonuses to Summit employees which is recognized as compensation expense of the Company. 2. The fair value of the non-controlling interests was calculated based on the implied equity value of VillageMD, allocated to all units on an as-converted basis. 3. Intangibles acquired include provider networks and trade names with fair values of $1.9 billion and $1.5 billion, respectively. Estimated useful lives are 15 years and 11 to 15 years, respectively. The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Total purchase price $ 5,200 Less: purchase price for issuance of new preferred units at fair value 1 (2,300) Net consideration 2,900 Fair value of share-based compensation awards attributable to pre-combination services 2 683 Fair value of previously held equity and debt 3,211 Fair value of non-controlling interest 3,257 Total $ 10,051 Identifiable assets acquired and liabilities assumed: Tangible assets 1 $ 634 Intangible assets 3 1,621 Liabilities (370) Total identifiable net assets $ 1,885 Goodwill $ 8,166 1. Comprised of cash consideration of $1.1 billion and a promissory note of $1.2 billion. This consideration was provided in exchange for the issuance of new preferred units by VillageMD. VillageMD’s tangible assets acquired exclude this $1.1 billion of cash and $1.2 billion promissory note receivable. 2. Primarily related to vested share-based compensation awards. 3. Intangibles acquired include primary care provider network, trade names and developed technology, with a fair value of $1.2 billion, $295 million and $76 million, respectively. Estimated useful lives are 15, 13 and 5 years, respectively. The following table summarizes the consideration for the acquisition and the amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions): Purchase price allocation: Cash consideration $ 969 Fair value of share-based compensation awards attributable to pre-combination services 13 Fair value of previously held equity interests 502 Fair value of non-controlling interests 589 Total $ 2,074 Identifiable assets acquired and liabilities assumed: Tangible assets $ 84 Intangible assets 1 1,060 Liabilities (600) Total identifiable net assets $ 544 Goodwill $ 1,529 Purchase price allocation: Cash consideration 1 327 Contingent consideration 4 Fair value of share-based compensation awards attributable to pre-combination services 66 Fair value of non-controlling interests 217 Total $ 614 Identifiable assets acquired and liabilities assumed: Tangible assets $ 358 Intangible assets 2 426 Liabilities (680) Total identifiable net assets $ 104 Goodwill $ 509 1. Excludes $12 million of cash paid to employees, which was recognized as compensation expense by the Company. 2. Intangibles acquired include customer relationships, trade names and developed technology, with a fair value of $247 million, $93 million and $86 million, respectively. Estimated useful lives are 13, 13 and 5 years, respectively. |
Schedule of pro forma information and actual sales | The following table represents unaudited supplemental pro forma consolidated sales for the years ended August 31, 2023 and 2022, as if the acquisition of Summit had occurred at the beginning of fiscal 2022. The unaudited pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisition occurred at the beginning of each period presented or results which may occur in the future. (Unaudited, in millions) 2023 2022 Sales $ 140,039 $ 135,379 Actual sales of Summit, from the acquisition date, for the year ended August 31, 2023, included in the Consolidated Statements of Earnings are as follows (in millions): 2023 Sales $ 1,896 (Unaudited, in millions) 2022 2021 Sales $ 134,314 $ 135,306 Actual sales of the acquisitions for the year ended August 31, 2022 included in the Consolidated Statement of Earnings are as follows (in millions): 2022 Sales $ 1,795 |
Exit and disposal activities (T
Exit and disposal activities (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs and reserves | Costs related to exit and disposal activities under the Transformational Cost Management Program for fiscal 2023, 2022 and 2021, respectively, were as follows (in millions): Fiscal 2023 U.S. Retail Pharmacy International U.S. Healthcare Corporate and Other Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 492 $ 23 $ — $ 1 $ 516 Asset impairments 183 149 109 — 441 Employee severance and business transition costs 111 20 6 13 150 Information technology transformation and other exit costs 30 21 — — 51 Total pre-tax exit and disposal charges $ 816 $ 213 $ 115 $ 14 $ 1,158 Fiscal 2022 U.S. Retail Pharmacy International U.S. Healthcare Corporate and Other Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 247 $ 2 $ — $ — $ 249 Asset impairments 132 58 — — 190 Employee severance and business transition costs 156 29 — 25 210 Information technology transformation and other exit costs 12 29 — — 40 Total pre-tax exit and disposal charges $ 546 $ 118 $ — $ 25 $ 690 Fiscal 2021 U.S. Retail Pharmacy International U.S. Healthcare Corporate and Other Walgreens Boots Alliance, Inc. Lease obligations and other real estate costs $ 103 $ 6 $ — $ — $ 108 Asset impairments 15 9 — — 24 Employee severance and business transition costs 79 40 — 45 165 Information technology transformation and other exit costs 20 17 — — 38 Total pre-tax exit and disposal charges $ 217 $ 72 $ — $ 46 $ 335 |
Schedule of restructuring reserve by type of cost | The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions): 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, 2021 $ 17 $ — $ 77 $ 20 $ 114 Costs 249 190 210 40 690 Payments (99) — (201) (23) (323) Other (157) (190) (9) (11) (367) Balance at August 31, 2022 $ 10 $ — $ 76 $ 27 $ 113 Costs 516 441 150 51 1,158 Payments (105) — (160) (55) (320) Other (411) (441) 2 — (849) Balance at August 31, 2023 $ 10 $ — $ 70 $ 22 $ 102 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to leases was as follows (in millions): Balance sheet supplemental information: August 31, 2023 August 31, 2022 Operating leases: Operating lease right-of-use assets $ 21,667 $ 21,259 Operating lease obligations - current $ 2,347 $ 2,286 Operating lease obligations - non-current 22,124 21,517 Total operating lease obligations $ 24,472 $ 23,803 Finance leases: Right-of-use assets included in: Property, plant and equipment, net $ 678 $ 645 Lease obligations included in: Accrued expenses and other liabilities $ 57 $ 37 Other non-current liabilities 919 899 Total finance lease obligations $ 976 $ 936 |
Schedule of supplemental income statement and other information | Supplemental income statement information related to leases was as follows (in millions): Statement of earnings supplemental information: 2023 2022 2021 Operating lease cost Fixed $ 3,404 $ 3,240 $ 3,219 Variable 1 850 825 664 Finance lease cost Amortization $ 47 $ 44 $ 45 Interest 51 50 52 Sublease income 2 $ 115 $ 105 $ 84 Impairment of right-of-use assets 495 218 86 Gains on sale-leaseback transactions 2 U.S. Retail Pharmacy $ 747 $ 558 $ 367 International 3 178 61 — Total gain on sale-leaseback 2 $ 925 $ 619 $ 367 1 Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume. 2 Recorded within Selling, general and administrative expenses within the Consolidated Statements of Earnings. 3 Includes gain on sale-leaseback related to Germany wholesale business of $178 million for fiscal 2023, and $61 million for Boots UK for fiscal 2022. The gain for fiscal 2023 includes $47 million related to the optimization of the Germany warehouse locations as part of acquisition integration activities. Other supplemental information was as follows (in millions): Other supplemental information: 2023 2022 2021 Cash paid for amounts included in the measurement of lease obligations Operating cash flows from operating leases $ 3,579 $ 3,351 $ 3,414 Operating cash flows from finance leases 47 47 48 Financing cash flows from finance leases 52 43 42 Total $ 3,679 $ 3,441 $ 3,503 Right-of-use assets obtained in exchange for new lease obligations Operating leases $ 2,323 $ 2,078 $ 2,765 Finance leases 30 11 — Total $ 2,352 $ 2,089 $ 2,765 Weighted average lease term and discount rate for real estate leases as of August 31, 2023 were as follows: Weighted average lease terms and discount rates: August 31, 2023 August 31, 2022 Weighted average remaining lease term in years Operating leases 9.6 10.0 Finance leases 17.4 19.0 Weighted average discount rate Operating leases 5.35 % 4.83 % Finance leases 5.25 % 5.19 % |
Schedule of future lease payments under operating leases | The aggregate future lease payments for operating and finance leases as of August 31, 2023 are as follows (in millions): Future lease payments (fiscal years): Finance lease Operating lease 1,2 2024 $ 109 $ 3,672 2025 104 3,589 2026 101 3,508 2027 99 3,417 2028 90 3,267 Later 967 14,508 Total undiscounted minimum lease payments $ 1,470 $ 31,960 Less: Present value discount 495 7,488 Lease liability $ 976 $ 24,472 1. Total undiscounted minimum lease payments include approximately $3.7 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised. 2. Total undiscounted minimum lease payments exclude sublease rental income of approximately $606 million due to the Company under non-cancelable sublease terms. |
Schedule of future lease payments under finance leases | The aggregate future lease payments for operating and finance leases as of August 31, 2023 are as follows (in millions): Future lease payments (fiscal years): Finance lease Operating lease 1,2 2024 $ 109 $ 3,672 2025 104 3,589 2026 101 3,508 2027 99 3,417 2028 90 3,267 Later 967 14,508 Total undiscounted minimum lease payments $ 1,470 $ 31,960 Less: Present value discount 495 7,488 Lease liability $ 976 $ 24,472 1. Total undiscounted minimum lease payments include approximately $3.7 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised. 2. Total undiscounted minimum lease payments exclude sublease rental income of approximately $606 million due to the Company under non-cancelable sublease terms. |
Equity method investments (Tabl
Equity method investments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investment | Equity method investments as of August 31, 2023 and 2022 were as follows (in millions, except percentages): 2023 2022 Carrying value Ownership percentage Carrying value Ownership percentage Cencora $ 2,534 16% $ 3,916 25% Others 963 8% - 50% 1,579 8% - 50% Total $ 3,497 $ 5,495 |
Summarized financial information of equity method investees | Summarized financial information for the Company’s equity method investments in aggregate is as follows: Balance sheet (in millions) August 31, 2023 2022 Current assets $ 48,185 $ 50,985 Non-current assets 25,618 26,497 Current liabilities 52,093 52,083 Non-current liabilities 17,999 19,712 Shareholders’ equity 1 3,711 5,687 1 Shareholders’ equity at August 31, 2023 and 2022 includes $520 million and $564 million, respectively, related to non-controlling interests. Statements of earnings (in millions) 2023 2022 2021 Sales $ 279,118 $ 268,189 $ 232,719 Gross profit 12,457 13,248 10,889 Net earnings (loss) 1,799 1,988 (3,475) Share of earnings (loss) from equity method investments 286 468 (512) |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill by reportable segment consist of the following activity (in millions): Goodwill roll forward: U.S. Retail Pharmacy International U.S. Healthcare Walgreens Boots Alliance, Inc. August 31, 2021 $ 10,947 $ 1,474 $ — $ 12,421 Acquisitions 1 — — 10,040 10,040 Currency translation adjustments and other — (181) — (181) August 31, 2022 $ 10,947 $ 1,293 $ 10,040 $ 22,280 Acquisitions 2 $ — $ — $ 5,588 $ 5,588 Adjustments 3 — — 252 252 Currency translation adjustments and other — 85 (18) 67 August 31, 2023 $ 10,947 $ 1,378 $ 15,863 $ 28,187 1. In fiscal 2022, the Company acquired controlling equity interests in VillageMD, Shields and CareCentrix which resulted in an increase to goodwill of $8.0 billion, $1.5 billion and $454 million, respectively. 2. In fiscal 2023, additions to goodwill primarily relate to VillageMD's acquisition of Summit. 3. Includes measurement period adjustments related to the acquisitions of VillageMD, Shields and CareCentrix. See Note 3. Acquisitions and other investments. |
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: August 31, 2023 August 31, 2022 Gross amortizable intangible assets Customer relationships and loyalty card holders 1 $ 4,658 $ 4,619 Provider networks 3,202 1,247 Trade names and trademarks 2,300 760 Developed technology 469 436 Others 2 137 93 Total gross amortizable intangible assets $ 10,767 $ 7,155 Accumulated amortization Customer relationships and loyalty card holders 1 $ 1,784 $ 1,548 Provider networks 233 64 Trade names and trademarks 401 246 Developed technology 143 56 Others 2 48 39 Total accumulated amortization 2,609 1,953 Total amortizable intangible assets, net $ 8,158 $ 5,202 Indefinite-lived intangible assets Trade names and trademarks $ 4,650 $ 4,319 Pharmacy licenses 828 1,209 Total indefinite-lived intangible assets $ 5,477 $ 5,528 Total intangible assets, net $ 13,635 $ 10,730 1 Includes purchased prescription files. |
Schedule of finite-lived intangible assets, future amortization expense | Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at August 31, 2023 is as follows (in millions): 2024 2025 2026 2027 2028 Estimated annual amortization expense $ 930 $ 884 $ 852 $ 773 $ 697 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | 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): August 31, 2023 August 31, 2022 Short-term debt Credit facilities 1 November 2021 DDTL due February 2023 $ — $ 1,000 $850 million note issuance 1 0.9500% unsecured notes due 2023 850 — Other 2 68 59 Total short-term debt $ 917 $ 1,059 |
Schedule of Long-term Debt Instruments | Long-term debt Credit facilities 1 November 2021 DDTL due November 2023 $ — $ 1,998 November 2021 DDTL due November 2024 289 999 December 2022 DDTL due January 2026 999 — $850 million note issuance 1 0.9500% unsecured notes due 2023 — 848 $1.5 billion note issuance 1 3.200% unsecured notes due 2030 498 498 4.100% unsecured notes due 2050 793 792 $6 billion note issuance 1 3.450% unsecured notes due 2026 1,444 1,443 4.650% unsecured notes due 2046 318 318 $8 billion note issuance 1 3.800% unsecured notes due 2024 1,156 1,155 4.500% unsecured notes due 2034 301 301 4.800% unsecured notes due 2044 869 869 £700 million note issuance 1 3.600% unsecured Pound Sterling notes due 2025 381 354 €750 million note issuance 1 2.125% unsecured Euro notes due 2026 814 752 $4 billion note issuance 3 4.400% unsecured notes due 2042 263 263 Other 2 20 26 Total long-term debt, less current portion $ 8,145 $ 10,615 1. Notes and borrowings under credit facilities are unsecured and 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. 2. Other 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. |
Schedule of future maturities of long-term debt | At August 31, 2023, the future maturities of short-term and long-term debt, excluding debt discounts, issuance costs and finance lease obligations (See Note 5. Leases, for the future lease payments), consisted of the following (in millions): Amount 2024 $ 918 2025 1,451 2026 2,830 2027 815 2028 3 Later 3,074 Total estimated future maturities $ 9,092 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amounts of derivative instruments outstanding | The notional amounts and fair value of derivative instruments outstanding were as follows (in millions): August 31, 2023 Notional Fair value Location in Consolidated Balance Sheets Derivatives designated as hedges : Foreign currency forwards $ 31 $ 1 Other current assets Cross currency interest rate swaps 650 28 Other non-current assets Foreign currency forwards 805 2 Other current liabilities Cross currency interest rate swaps 102 2 Other current liabilities Foreign currency forwards 4 — Other non-current liabilities Derivatives not designated as hedges : Foreign currency forwards $ 3,139 $ 6 Other current assets Total return swap 168 1 Other current assets Foreign currency forwards 817 2 Other current liabilities Total return swap 26 1 Other current liabilities Variable prepaid forward contracts 3,195 2,548 Other non-current liabilities August 31, 2022 Notional Fair value Location in Consolidated Balance Sheets Derivatives designated as hedges : Foreign currency forwards $ 448 $ 19 Other current assets Cross currency interest rate swaps 150 12 Other current assets Cross currency interest rate swaps 750 83 Other non-current assets Foreign currency forwards 3 — Other non-current assets Foreign currency forwards 221 1 Other current liabilities Derivatives not designated as hedges : Foreign currency forwards $ 2,874 $ 49 Other current assets Foreign currency forwards 1,098 6 Other current liabilities Total return swap 183 6 Other current liabilities |
Schedule of variable prepaid forward transactions | The terms of the VPF transactions were as follows (in millions): Transaction date Shares pledged and maximum shares subject to forward sale Prepayment amount Forward settlement date May 11, 2023 4.6 $ 644 Fourth quarter, fiscal 2025 June 15, 2023 2.2 325 Third quarter, fiscal 2025 August 3, 2023 5.3 801 First quarter, fiscal 2026 August 4, 2023 5.3 797 Third quarter, fiscal 2026 17.3 $ 2,568 |
Gains and losses due to changes in fair value recognized in earnings | Location in Consolidated Statements of Earnings 2023 2022 2021 Foreign currency forwards Selling, general and administrative expense 1 $ — $ — $ (75) Total return swap Selling, general and administrative expense 12 (33) 58 Foreign currency forwards Other income, net 1,2 (273) 523 (8) Variable prepaid forward Other income, net 19 — — |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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): August 31, 2023 Level 1 Level 2 Level 3 Assets: Money market funds 1 $ 11 $ 11 $ — $ — Cross currency interest rate swaps 2 28 — 28 — Foreign currency forwards 3 6 — 6 — Investments in equity securities 4 17 17 — — Investment in debt securities 5 15 — 15 — Total return swaps 1 — 1 — Liabilities : Variable prepaid forward 6 $ 2,548 $ — $ — $ 2,548 Foreign currency forwards 3 5 — 5 — Total return swaps 1 — 1 — Cross currency interest rate swaps 2 2 — 2 — August 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds 1 $ 1,114 $ 1,114 $ — $ — Investments in debt securities 5 130 — 130 — Foreign currency forwards 3 69 — 69 — Investments in equity securities 4 1 1 — — Cross currency interest rate swaps 2 96 — 96 — Liabilities : Total return swaps $ 6 $ — $ 6 $ — Foreign currency forwards 3 7 — 7 — 1. Money market funds are valued at the closing price reported by the fund sponsor and classified as marketable securities on the Consolidated Balance Sheets. 2. The fair value of cross currency interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 9. Financial instruments, for further information. 3. 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 9. Financial instruments, for further information. 4. Fair values of quoted investments are based on current bid prices as of August 31, 2023 and August 31, 2022. 5. Includes investments in Treasury debt securities. 6. The fair value of the derivative was derived from a Black-Scholes valuation. The inputs used in valuing the derivative included observable inputs such as the floor and cap prices of the VPF, dividend yield of Cencora shares, risk free interest rate, and contractual term of the instrument, as well as unobservable inputs such as implied volatility of Cencora shares (ranging from 23.2% - 24.7% for the lower strike and 18.1% - 19.1% for the upper strike). See Note 9. Financial instruments, for further information. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The roll forward of the fair value of the VPF derivatives associated with the forward sale of shares of Cencora common stock, classified as Level 3, for fiscal 2023 is as follows (in millions): 2023 Opening balance $ — VPF derivative additions (2,568) Unrealized gains recorded in Other income, net 19 Ending balance $ (2,548) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | The components of (Loss) earnings before income tax (benefit) provision were (in millions): 2023 2022 2021 U.S. $ (7,553) $ 2,998 $ 61 Non–U.S. 2,134 987 1,934 Total $ (5,419) $ 3,985 $ 1,995 |
Provisions for income taxes | The Income tax (benefit) provision consists of the following (in millions): 2023 2022 2021 Current provision Federal $ 242 $ 39 $ 79 State (13) 37 115 Non–U.S. 283 260 234 $ 512 $ 336 $ 428 Deferred provision Federal $ (1,886) $ (78) $ (10) State (364) (20) (46) Non–U.S. – tax law change — — 344 Non–U.S. – excluding tax law change (120) (268) (49) (2,370) (366) 239 Income tax (benefit) provision $ (1,858) $ (30) $ 667 |
Difference between the statutory federal income tax rate and the effective tax rate | The difference between the statutory federal income tax rate and the effective tax rate is as follows: 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 5.8 0.4 3.5 Foreign income taxed at non-U.S. rates (3.0) (3.0) (4.4) Non-taxable income 2.5 (2.7) (5.0) Non-deductible expenses (4.9) 3.0 0.3 Tax law changes — — 17.3 Change in valuation allowance 1 6.0 (9.0) (4.7) Tax benefits from restructuring 1.1 — (4.2) Tax expense on non-operating equity earnings — — 6.1 Uncertain tax positions (0.5) 1.3 6.2 Non-controlling interest (2.9) 1.2 — Tax credits 2.8 (1.0) (1.8) Conversion of equity investment — (11.8) — Change in outside basis difference 1.9 — — Change in measurement of prior year tax positions 3.5 — — Other 1.0 (0.2) (0.9) Effective income tax rate 2 34.3 % (0.8) % 33.4 % 1 Net of changes in related tax attributes and tax benefits from capital losses generated and utilized. 2 Effective tax rate for fiscal 2023 represents a tax benefit on a pre-tax loss. |
Deferred tax assets and liabilities included in the consolidated balance sheet | The deferred tax assets and liabilities included in the Consolidated Balance Sheets consist of the following (in millions): August 31, 2023 August 31, 2022 Deferred tax assets: Compensation and benefits $ 98 $ 171 Insurance 131 108 Accrued rent & lease obligations 5,265 5,296 Legal liability 1 1,551 174 Allowance for doubtful accounts 23 53 Tax attributes 7,784 7,825 Stock compensation 74 56 Deferred income 8 120 Equity method investment 76 — Other 1 143 56 Total deferred tax assets $ 15,153 $ 13,859 Less: valuation allowance 7,360 7,521 Total deferred tax assets, net $ 7,793 $ 6,338 Deferred tax liabilities: Accelerated depreciation $ 254 $ 634 Inventory 403 441 Intangible assets 1,024 1,134 Equity method investment — 314 Lease right-of-use asset 4,690 4,763 Outside basis difference 1 1,045 52 Other 1 180 303 Total deferred tax liabilities 7,596 7,641 Net deferred tax assets (liabilities) $ 197 $ (1,303) 1 Includes certain reclassifications to conform to current period presentation. |
Reconciliation of the total amounts of unrecognized tax benefits | The following table provides a reconciliation of the total amounts of unrecognized tax benefits (in millions): 2023 2022 2021 Balance at beginning of year $ 1,110 $ 1,098 $ 494 Gross increases related to tax positions in a prior period 12 63 229 Gross decreases related to tax positions in a prior period (19) (51) (52) Gross increases related to tax positions in the current period 12 21 446 Settlements with taxing authorities (7) (19) (13) Lapse of statute of limitations (2) (2) (6) Balance at end of year $ 1,106 $ 1,110 $ 1,098 |
Retirement benefits (Tables)
Retirement benefits (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans using fair value hierarchy | The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions): August 31, 2023 Level 1 Level 2 Level 3 Equity securities : Equity securities 1 $ 264 $ — $ 264 $ — Debt securities: Fixed interest government bonds 2 1,044 848 196 — Index linked government bonds 2 1,364 1,364 — — Corporate bonds 3 1,214 — 1,214 — Real estate: Real estate 4 466 — — 466 Other : Other investments, net 5 1,242 142 338 761 Total $ 5,594 $ 2,354 $ 2,012 $ 1,228 August 31, 2022 Level 1 Level 2 Level 3 Equity securities : Equity securities 1 $ 967 $ — $ 967 $ — Debt securities: Fixed interest government bonds 2 688 402 285 — Index linked government bonds 2 1,785 1,785 — — Corporate bonds 3 1,980 — 1,980 — Real estate: Real estate 4 548 — — 548 Other : Other investments, net 5 636 10 (87) 713 Total $ 6,603 $ 2,197 $ 3,145 $ 1,261 1 Includes investments in commingled funds, are valued based on quoted prices and are primarily exchange-traded. Securities for which official close or last trade pricing on an active exchange is available are classified as Level 1 investments. If closing prices are not available, or the investments are in a commingled fund, securities are valued at the last quoted bid price and typically are categorized as Level 2 investments. 2 Includes government bonds comprising fixed interest and index linked bonds issued by central governments and are valued based on quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize pricing which considers readily available inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type, as well as dealer-supplied prices. 3 Includes bonds issued by corporations in both segregated and commingled funds and are valued using recently executed transactions, or quoted market prices for similar assets and liabilities in active markets, or for identical assets and liabilities in markets that are not active. If there have been no market transactions in a particular fixed income security, its fair value is calculated by pricing models that benchmark the security against other securities with actual market prices. 4 Includes investments in certain property funds which are valued based on the underlying properties. These properties are valued using a number of standard industry techniques such as cost, discounted cash flows, independent appraisals and market based comparable data. Real estate investments are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2023 were driven by actual return on plan assets still held at August 31, 2023 and purchases during the year. 5 Includes net receivable (payable) amounts for unsettled transactions, cash and cash equivalents, derivatives, insurance linked securities and direct private placements. Cash is categorized as a Level 1 investment and cash in commingled funds is categorized as a Level 2 investment. Amounts receivable (payable) are categorized as level 2 investments. Cash equivalents are valued using observable yield curves, discounting and interest rates and are categorized as Level 2 investments. Derivatives which are exchange-traded and for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market, or exchange on which they are traded, and are categorized as Level 1 investments. Over-the-counter derivatives typically are valued by independent pricing services and are categorized as Level 2 investments. Insurance linked securities are categorized as Level 2. Direct private placements are typically bonds valued by reference to comparable bonds and are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2023 were primarily driven by purchases during the year. |
Components of net periodic benefit costs | Components of net periodic pension costs for the defined benefit pension plans and cumulative pre-tax amounts recognized in accumulated other comprehensive loss are as follows (in millions): Boots and other pension plans 2023 2022 2021 Service costs (Selling, general and administrative expenses) $ 4 $ 5 $ 6 Interest costs (Other income, net) 264 149 139 Expected returns on plan assets/other (Other income, net) (340) (280) (332) Total net periodic pension income $ (72) $ (126) $ (188) Net actuarial loss (gain) $ 730 $ (251) $ (506) Prior service cost (1) (1) (1) Total pre-tax comprehensive loss (income) $ 729 $ (252) $ (507) |
Accumulated and projected benefit obligations | Change in benefit obligations for the defined benefit pension plans (in millions): 2023 2022 Benefit obligation at beginning of year $ 5,967 $ 10,206 Service costs 4 5 Interest costs 264 149 Net actuarial gain (897) (3,042) Benefits paid (286) (304) Currency translation adjustments 463 (1,047) Benefit obligation at end of year $ 5,515 $ 5,967 |
Changes in fair value of plan assets | Change in plan assets for the defined benefit pension plans (in millions): 2023 2022 Plan assets at fair value at beginning of year $ 6,603 $ 10,475 Employer contributions 40 45 Benefits paid (286) (304) Return on assets (1,275) (2,477) Currency translation adjustments 511 (1,136) Plan assets at fair value at end of year $ 5,594 $ 6,603 |
Amounts recognized in balance sheet | Amounts recognized in the Consolidated Balance Sheets (in millions): August 31, 2023 August 31, 2022 Other non-current assets $ 306 $ 863 Accrued expenses and other liabilities (10) (9) Other non-current liabilities (216) (217) Net asset recognized at end of year $ 80 $ 637 |
Schedule of projected benefit obligation | The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions): August 31, 2023 Level 1 Level 2 Level 3 Equity securities : Equity securities 1 $ 264 $ — $ 264 $ — Debt securities: Fixed interest government bonds 2 1,044 848 196 — Index linked government bonds 2 1,364 1,364 — — Corporate bonds 3 1,214 — 1,214 — Real estate: Real estate 4 466 — — 466 Other : Other investments, net 5 1,242 142 338 761 Total $ 5,594 $ 2,354 $ 2,012 $ 1,228 August 31, 2022 Level 1 Level 2 Level 3 Equity securities : Equity securities 1 $ 967 $ — $ 967 $ — Debt securities: Fixed interest government bonds 2 688 402 285 — Index linked government bonds 2 1,785 1,785 — — Corporate bonds 3 1,980 — 1,980 — Real estate: Real estate 4 548 — — 548 Other : Other investments, net 5 636 10 (87) 713 Total $ 6,603 $ 2,197 $ 3,145 $ 1,261 1 Includes investments in commingled funds, are valued based on quoted prices and are primarily exchange-traded. Securities for which official close or last trade pricing on an active exchange is available are classified as Level 1 investments. If closing prices are not available, or the investments are in a commingled fund, securities are valued at the last quoted bid price and typically are categorized as Level 2 investments. 2 Includes government bonds comprising fixed interest and index linked bonds issued by central governments and are valued based on quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize pricing which considers readily available inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type, as well as dealer-supplied prices. 3 Includes bonds issued by corporations in both segregated and commingled funds and are valued using recently executed transactions, or quoted market prices for similar assets and liabilities in active markets, or for identical assets and liabilities in markets that are not active. If there have been no market transactions in a particular fixed income security, its fair value is calculated by pricing models that benchmark the security against other securities with actual market prices. 4 Includes investments in certain property funds which are valued based on the underlying properties. These properties are valued using a number of standard industry techniques such as cost, discounted cash flows, independent appraisals and market based comparable data. Real estate investments are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2023 were driven by actual return on plan assets still held at August 31, 2023 and purchases during the year. 5 Includes net receivable (payable) amounts for unsettled transactions, cash and cash equivalents, derivatives, insurance linked securities and direct private placements. Cash is categorized as a Level 1 investment and cash in commingled funds is categorized as a Level 2 investment. Amounts receivable (payable) are categorized as level 2 investments. Cash equivalents are valued using observable yield curves, discounting and interest rates and are categorized as Level 2 investments. Derivatives which are exchange-traded and for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market, or exchange on which they are traded, and are categorized as Level 1 investments. Over-the-counter derivatives typically are valued by independent pricing services and are categorized as Level 2 investments. Insurance linked securities are categorized as Level 2. Direct private placements are typically bonds valued by reference to comparable bonds and are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2023 were primarily driven by purchases during the year. |
Schedule of projected and accumulated benefit obligation and fair value of plan assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension plans, including accumulated benefit obligations in excess of plan assets, were as follows (in millions): August 31, 2023 August 31, 2022 Projected benefit obligation $ 5,515 $ 5,967 Accumulated benefit obligation 5,503 5,961 Fair value of plan assets 1 5,594 6,603 1 Represents plan assets of The Boots plan, the Company's only funded defined benefit pension plan. |
Estimated future benefit payments | Estimated future benefit payments for the next 10 years from defined benefit pension plans to participants are as follows (in millions): Estimated future benefit payments 2024 $ 324 2025 305 2026 317 2027 326 2028 337 2029-2033 1,798 |
Schedule of assumptions used | The assumptions used in accounting for the defined benefit pension plans were as follows: 2023 2022 Weighted-average assumptions used to determine benefit obligations Discount rate 5.22 % 4.20 % Rate of compensation increase 3.73 % 3.04 % Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.20 % 1.57 % Expected long-term return on plan assets 4.90 % 2.90 % Rate of compensation increase 3.04 % 2.80 % |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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 (loss) (“AOCI”) by component and net of tax for fiscal 2023, 2022 and 2021 (in millions): Pension/post-retirement obligations Unrealized gain (loss) on cash flow hedges Net investment hedges Unrealized gain (loss) on available for sale debt securities 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 532 10 (6) 127 (24) 384 1,022 Amounts reclassified from AOCI (8) 17 — — — (3) 6 Business disposal (4) — — — — 795 792 Tax (provision) benefit (132) (6) 6 (31) 6 — (157) Net change in other comprehensive income (loss) 389 21 (1) 96 (18) 1,176 1,663 Balance at August 31, 2021 $ (359) $ (10) $ (35) $ 96 $ (29) $ (1,772) $ (2,109) Other comprehensive income (loss) before reclassification adjustments 278 6 327 451 (326) (833) (97) Amounts reclassified from AOCI (22) 3 — (577) 31 — (565) Other (6) — — — — — (6) Tax (provision) benefit (48) (2) (79) 32 70 — (27) Net change in other comprehensive income (loss) 203 7 248 (95) (226) (833) (696) Balance at August 31, 2022 $ (157) $ (3) $ 213 $ 1 $ (254) $ (2,605) $ (2,805) Other comprehensive (loss) income before reclassification adjustments (705) (7) (172) (2) 6 379 (500) Amounts reclassified from AOCI (26) 4 — — 158 (14) 121 Tax benefit (provision) 190 — 42 1 (42) — 190 Net change in other comprehensive (loss) income (541) (2) (130) (2) 122 364 (189) Balance at August 31, 2023 $ (698) $ (5) $ 83 $ — $ (132) $ (2,240) $ (2,993) |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of revenue from segments to consolidated | The following table reflects results of operations of the Company's reportable segments (in millions): 2023 2022 2021 Sales: U.S. Retail Pharmacy $ 110,314 $ 109,078 $ 112,005 International 22,198 21,830 20,505 U.S. Healthcare 6,570 1,795 — Walgreens Boots Alliance, Inc. $ 139,081 $ 132,703 $ 132,509 Adjusted operating income: U.S. Retail Pharmacy $ 3,689 $ 5,029 $ 5,019 International 935 726 466 U.S. Healthcare (566) (370) (57) Corporate and Other (187) (251) (311) Walgreens Boots Alliance, Inc. $ 3,871 $ 5,133 $ 5,117 Depreciation and amortization: U.S. Retail Pharmacy $ 1,362 $ 1,415 $ 1,513 International 328 355 399 U.S. Healthcare 560 211 1 Corporate and Other 8 9 10 Walgreens Boots Alliance, Inc. $ 2,257 $ 1,990 $ 1,923 Capital expenditures: U.S. Retail Pharmacy $ 1,421 $ 1,207 $ 1,030 International 308 295 243 U.S. Healthcare 375 218 34 Corporate and Other 13 15 5 Walgreens Boots Alliance, Inc. $ 2,117 $ 1,734 $ 1,312 |
Reconciliation of operating profit (loss) from segments to consolidated | The following table reconciles adjusted operating income to operating (loss) income (in millions): 2023 2022 2021 Adjusted operating income (Non-GAAP measure): $ 3,871 $ 5,133 $ 5,117 Certain legal and regulatory accruals and settlements (7,466) (768) (75) Transformational cost management (1,181) (763) (417) Acquisition-related amortization (1,126) (855) (523) Acquisition-related costs (323) (223) (54) Impairment of intangible assets (299) (783) (49) Adjustments to equity earnings (loss) in Cencora (211) (218) (1,645) LIFO provision (187) (135) (13) Store damage and inventory loss insurance recovery 40 — — Operating (loss) income (GAAP measure) $ (6,882) $ 1,387 $ 2,342 |
Geographic data for net sales | Geographic data for sales is as follows (in millions): 2023 2022 2021 United States $ 116,883 $ 110,873 $ 112,005 United Kingdom 8,984 8,894 8,298 Germany 11,211 11,178 10,472 Other 2,003 1,757 1,734 Sales $ 139,081 $ 132,703 $ 132,509 |
Geographic data for long-lived assets | Geographic data for long-lived assets, defined as operating lease right-of-use assets and property, plant and equipment, is as follows (in millions): 2023 2022 1 United States $ 28,951 $ 28,710 United Kingdom 3,622 3,663 Other 681 614 Total long-lived assets $ 33,254 $ 32,988 1. Fiscal 2022 data has been updated to conform to current period presentation |
Sales (Tables)
Sales (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
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): 2023 2022 2021 U.S. Retail Pharmacy Pharmacy $ 82,118 $ 80,434 $ 84,892 Retail 28,195 28,643 27,113 Total $ 110,314 $ 109,078 $ 112,005 International Pharmacy $ 3,664 $ 3,727 $ 3,808 Retail 7,324 6,924 6,225 Wholesale 11,211 11,178 10,472 Total $ 22,198 $ 21,830 $ 20,505 U.S. Healthcare $ 6,570 $ 1,795 $ — Walgreens Boots Alliance, Inc. $ 139,081 $ 132,703 $ 132,509 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Related party transactions with Cencora (in millions): 2023 2022 2021 Purchases, net $ 65,173 $ 62,174 $ 62,513 Trade accounts payable, net of receivables $ 7,814 $ 6,915 $ 6,589 See Note 2. Discontinued operations for further information. |
Supplementary financial infor_2
Supplementary financial information (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Supplementary Financial Information [Abstract] | |
Summary of quarterly results | Summary of Quarterly Results (Unaudited) (in millions, except per share amounts) Quarter ended November February May August Fiscal year Fiscal 2023 Sales $ 33,382 $ 34,862 $ 35,415 $ 35,422 $ 139,081 Gross profit $ 6,953 $ 7,055 $ 6,588 $ 6,475 $ 27,072 Net (loss) earnings attributable to Walgreens Boots Alliance, Inc. $ (3,721) $ 703 $ 118 $ (180) $ (3,080) Net (loss) earnings per common share Basic $ (4.31) $ 0.81 $ 0.14 $ (0.21) $ (3.57) Diluted $ (4.31) $ 0.81 $ 0.14 $ (0.21) $ (3.57) Cash dividends declared per common share $ 0.4800 $ 0.4800 $ 0.4800 $ 0.4800 $ 1.9200 Fiscal 2022 Sales $ 33,901 $ 33,756 $ 32,597 $ 32,449 $ 132,703 Gross profit $ 7,574 $ 7,708 $ 6,572 $ 6,410 $ 28,265 Net earnings (loss) attributable to Walgreens Boots Alliance, Inc. $ 3,580 $ 883 $ 289 $ (415) $ 4,337 Net earnings (loss) per common share Basic $ 4.13 $ 1.02 $ 0.33 $ (0.48) $ 5.02 Diluted $ 4.13 $ 1.02 $ 0.33 $ (0.48) $ 5.01 Cash dividends declared per common share $ 0.4775 $ 0.4775 $ 0.4775 $ 0.4800 $ 1.9125 |
Summary of major accounting p_4
Summary of major accounting policies - narrative (Details) shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 01, 2021 USD ($) | Aug. 31, 2023 USD ($) segment shares | Aug. 31, 2022 USD ($) shares | Aug. 31, 2021 USD ($) shares | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Minimum number of days for settlement of credit and debit charges | 1 day | |||
Maximum number of days for settlement of credit and debit charges | 7 days | |||
Credit and debit card receivables | $ 122 | $ 127 | ||
Other cash flows from operating activities | (157) | 326 | $ (218) | |
Gain on reclassification of equity method investment to equity security | 83 | |||
Impairment of equity method investments and investments in deb and equity securities | 233 | |||
Allowance for doubtful accounts | 110 | 66 | ||
Inventories | 8,257 | 8,353 | ||
Depreciation and amortization expense | $ 1,400 | 1,400 | 1,400 | |
Term of renewal contract | 5 years | |||
Advertising expense | $ 775 | 862 | $ 772 | |
Expected performance goal achievement rate | 100% | |||
Trade Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable | $ 4,300 | $ 4,000 | ||
Other Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable | $ 1,100 | |||
Potentially Dilutive Securities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding options to purchase common shares excluded from earnings per share calculations (in shares) | shares | 3 | |||
Share-Based Payment Arrangement | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding options to purchase common shares excluded from earnings per share calculations (in shares) | shares | 17.8 | 17.1 | 17.2 | |
VillageMD | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Aggregate liquidation preference | $ 4,900 | |||
VillageMD | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-controlling interests, preferred units (in shares) | shares | 16 | 3.9 | ||
Non-controlling interests, common units (in shares) | shares | 6.5 | 6.1 | ||
Dividend rate | 5.50% | |||
Discontinued operations, disposed of by sale | Alliance Healthcare | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net gain on disposal | $ 322 | $ 322 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Term of lease | 10 years | |||
Highly effective hedging percentage | 80% | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Term of lease | 25 years | |||
Highly effective hedging percentage | 125% | |||
Capitalized system development costs and software | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of capitalized system development costs and software | $ 371 | $ 307 | 284 | |
Unamortized capitalized software costs | 1,500 | 1,100 | ||
Selling, general and administrative expense | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impairment of definite-lived assets | 863 | 380 | $ 182 | |
U.S. Retail Pharmacy | Reportable Segments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Inventories | 6,200 | 6,500 | ||
LIFO reserve | 3,600 | 3,400 | ||
International | Reportable Segments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Inventories | $ 2,000 | $ 1,800 |
Summary of major accounting p_5
Summary of major accounting policies - reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 728 | $ 1,358 | $ 559 | |
Marketable securities | 11 | 1,114 | 634 | |
Cash and cash equivalents - assets held for sale (included in other current assets) | 24 | 0 | 0 | |
Restricted cash (included in other current and non-current assets) | 93 | 86 | 77 | |
Cash, cash equivalents, marketable securities and restricted cash | $ 856 | $ 2,558 | $ 1,270 | $ 746 |
Summary of major accounting p_6
Summary of major accounting policies - property plant and equipment (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment and finance lease right-of-use asset, before accumulated depreciation and amortization | $ 24,540 | $ 24,572 |
Property, plant, and equipment and finance lease right-of-use asset, accumulated depreciation and amortization | 12,953 | 12,843 |
Property and equipment, net | $ 11,587 | 11,729 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Property and equipment | $ 1,778 | 2,333 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 6,683 | 6,996 |
Buildings and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Buildings and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 50 years | |
Fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 9,782 | 9,375 |
Fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Capitalized system development costs and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 3,821 | 3,087 |
Capitalized system development costs and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Capitalized system development costs and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Asset under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,400 | 1,785 |
Finance lease properties | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease properties | $ 1,075 | $ 996 |
Summary of major accounting p_7
Summary of major accounting policies - variable interest entities (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Assets | $ 96,628 | $ 90,124 |
Liabilities | 68,140 | 59,717 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 881 | 313 |
Liabilities | $ 486 | $ 142 |
Supplemental information - sche
Supplemental information - schedule of redeemable non-controlling interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 1,042 | $ 319 | $ 0 |
Recognition upon acquisition of subsidiary | 0 | 2,684 | 309 |
Acquisitions of non-controlling interests | 0 | (2,047) | 0 |
Net loss attributable to Redeemable non-controlling interests | (21) | (73) | (3) |
Redemption price adjustments | 442 | 179 | 19 |
Reclassifications to accrued expenses and other liabilities | (1,314) | 0 | 0 |
Other | 18 | (20) | (6) |
Ending balance | 167 | 1,042 | 319 |
Conversion of Stock [Line Items] | |||
Recognition upon acquisition of subsidiary | $ 0 | 2,684 | $ 309 |
VillageMD | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Recognition upon acquisition of subsidiary | 1,900 | ||
Conversion of Stock [Line Items] | |||
Recognition upon acquisition of subsidiary | $ 1,900 | ||
McKesson Corporation, GEHE Pharma Handel | |||
Conversion of Stock [Line Items] | |||
Outstanding equity interest percentage | 30% |
Discontinued operations - narra
Discontinued operations - narrative (Details) - Discontinued operations, disposed of by sale - Alliance Healthcare - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 01, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration from disposal | $ 6,900 | ||
Proceeds from disposal, subject to net working capital and net cash adjustments | $ 6,700 | ||
Shares issued as part of disposal (in shares) | 2 | ||
Estimated gain before currency translation adjustments | $ 1,100 | ||
Net gain on disposal | $ 322 | $ 322 | |
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net earnings from discontinued operations | ||
Receivable for purchase consideration | $ 98 | ||
Disposal group, contingent consideration, working capital adjustments | $ 38 |
Discontinued operations - sched
Discontinued operations - schedule of transaction proceeds and net assets disposed (Details) - Discontinued operations, disposed of by sale - Alliance Healthcare - USD ($) $ in Millions | 12 Months Ended | |
Jun. 01, 2021 | Aug. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Estimated fair value of proceeds from disposition | $ 6,900 | |
Net assets disposed | 5,800 | |
Gain before currency translation adjustments | 1,100 | |
Currency translation loss released due to disposition | (800) | |
Net gain on disposal of discontinued operation | 322 | $ 322 |
Base consideration | $ 6,275 |
Discontinued operations - sch_2
Discontinued operations - schedules of results from discontinued operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 01, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Net earnings from discontinued operations | $ 0 | $ 0 | $ 557 | |
Discontinued operations, disposed of by sale | Alliance Healthcare | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Sales | 16,070 | |||
Cost of sales | 14,486 | |||
Gross profit | 1,584 | |||
Selling, general and administrative expense | 1,254 | |||
Operating income from discontinued operations | 329 | |||
Other income (expense) | 314 | |||
Interest expense, net | (23) | |||
Earnings before income tax – discontinued operations | 621 | |||
Income tax provision | 78 | |||
Post tax earnings from other equity method investments | 15 | |||
Net earnings from discontinued operations | 557 | |||
Divestiture related costs | $ 44 | |||
Gain on disposition of business | $ 322 | |||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||
Sales | 16,070 | |||
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||
Cash used for operating activities - discontinued operations | (132) | |||
Cash used for investing activities - discontinued operations | (58) | |||
Discontinued operations, disposed of by sale | Alliance Healthcare | Continuing Operations | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Sales | 1,385 | |||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ||||
Sales | $ 1,385 |
Acquisitions and other Invest_3
Acquisitions and other Investments - narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2023 | Mar. 03, 2023 | Jan. 03, 2023 | Dec. 28, 2022 | Aug. 31, 2022 | Nov. 24, 2021 | Oct. 29, 2021 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Oct. 28, 2021 | |
Business Acquisition [Line Items] | ||||||||||||
Goodwill, purchase accounting adjustments | $ 252 | |||||||||||
Gain on sale of equity method investment | 1,855 | $ 559 | $ 321 | |||||||||
Goodwill | $ 22,280 | 28,187 | 22,280 | $ 12,421 | ||||||||
VillageMD | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair value of equity consideration | $ 1,750 | |||||||||||
Noncontrolling interest, ownership percentage by parent | 53% | |||||||||||
Debt instrument, fee amount, credit | $ 220 | |||||||||||
VillageMD | Line of Credit | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Face amount | 2,250 | |||||||||||
VillageMD | Line of Credit | Term loan | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Face amount | 1,750 | |||||||||||
VillageMD | Line of Credit | Credit facilities | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Face amount | 500 | |||||||||||
VillageMD | Cigna | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair value of equity consideration | 2,500 | |||||||||||
Summit Heath-CityMD | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration | 7,000 | |||||||||||
Total purchase price | 4,850 | |||||||||||
Fair value of equity consideration | 1,971 | |||||||||||
Deferred consideration | 100 | |||||||||||
Business combination, consideration transferred, employees | 87 | |||||||||||
Summit debt paid at closing | 1,900 | |||||||||||
Goodwill, purchase accounting adjustments | 257 | |||||||||||
Tax deductible goodwill | 433 | |||||||||||
Intangible assets | 3,359 | |||||||||||
Goodwill | 5,436 | |||||||||||
Summit Heath-CityMD | Partnership Interest | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair value of equity consideration | 2,050 | |||||||||||
Summit Heath-CityMD | Primary Care Provider Network | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 1,900 | |||||||||||
Useful life of capitalized software costs | 15 years | |||||||||||
Summit Heath-CityMD | Trade Names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 1,500 | |||||||||||
Summit Heath-CityMD | Minimum | Trade Names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Useful life of capitalized software costs | 11 years | |||||||||||
Summit Heath-CityMD | Maximum | Trade Names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Useful life of capitalized software costs | 15 years | |||||||||||
VillageMD | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total purchase price | $ 5,200 | |||||||||||
Fair value of equity consideration | 683 | |||||||||||
Goodwill, purchase accounting adjustments | 125 | |||||||||||
Business combination, consideration transferred, gross | 4,000 | |||||||||||
Business combination, consideration transferred, other | 1,200 | |||||||||||
Business combination, consideration transferred to existing stockholders | 2,900 | |||||||||||
Business acquisition, value of common stock shares acquired | 1,900 | |||||||||||
Business combination, cash transferred for preferred units | 1,100 | |||||||||||
Gain on sale of equity method investment | $ 1,597 | |||||||||||
Other comprehensive income (loss), reclassification adjustment from AOCI for investment transferred from available-for-sale to equity method, after tax | $ 577 | |||||||||||
Intangible assets | 1,621 | |||||||||||
Goodwill | 8,166 | |||||||||||
VillageMD | Primary Care Provider Network | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 1,200 | |||||||||||
Useful life of capitalized software costs | 15 years | |||||||||||
VillageMD | Trade Names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 295 | |||||||||||
Useful life of capitalized software costs | 13 years | |||||||||||
VillageMD | Technology-Based Intangible Assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 76 | |||||||||||
Useful life of capitalized software costs | 5 years | |||||||||||
VillageMD | Minimum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Outstanding equity interest percentage | 30% | |||||||||||
VillageMD | Maximum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Outstanding equity interest percentage | 63% | |||||||||||
Shields Health Solutions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration | $ 969 | |||||||||||
Total purchase price | $ 1,400 | |||||||||||
Fair value of equity consideration | $ 13 | |||||||||||
Goodwill, purchase accounting adjustments | 72 | |||||||||||
Outstanding equity interest percentage | 30% | 70% | 25% | |||||||||
Gain on sale of equity method investment | $ 402 | |||||||||||
Intangible assets | $ 1,060 | |||||||||||
Goodwill | 1,529 | |||||||||||
Shields Health Solutions | Trade Names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 47 | |||||||||||
Useful life of capitalized software costs | 13 years | |||||||||||
Shields Health Solutions | Technology-Based Intangible Assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 117 | |||||||||||
Useful life of capitalized software costs | 5 years | |||||||||||
Shields Health Solutions | Customer Relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 896 | |||||||||||
Useful life of capitalized software costs | 13 years | |||||||||||
CareCentrix, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration | 327 | |||||||||||
Total purchase price | $ 378 | |||||||||||
Fair value of equity consideration | 66 | |||||||||||
Business combination, consideration transferred, employees | $ 12 | |||||||||||
Goodwill, purchase accounting adjustments | 56 | |||||||||||
Outstanding equity interest percentage | 45% | 55% | 55% | |||||||||
Business combination, consideration transferred, gross | $ 339 | |||||||||||
Intangible assets | 426 | $ 426 | ||||||||||
Goodwill | 509 | 509 | ||||||||||
CareCentrix, Inc. | Trade Names | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 93 | $ 93 | ||||||||||
Useful life of capitalized software costs | 13 years | 13 years | ||||||||||
CareCentrix, Inc. | Technology-Based Intangible Assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 86 | $ 86 | ||||||||||
Useful life of capitalized software costs | 5 years | 5 years | ||||||||||
CareCentrix, Inc. | Customer Relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible assets | $ 247 | $ 247 | ||||||||||
Useful life of capitalized software costs | 13 years | 13 years | ||||||||||
Other Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total purchase price | 324 | $ 196 | ||||||||||
Starling MSO Holdings, LLC | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration | $ 284 | |||||||||||
Total purchase price | 222 | |||||||||||
Fair value of equity consideration | $ 62 | |||||||||||
Intangible assets | 128 | |||||||||||
Goodwill | $ 104 |
Acquisitions and other Invest_4
Acquisitions and other Investments - schedule of purchase price allocation and identifiable assets acquired and liabilities assumed - Summit (Details) - USD ($) $ in Millions | Jan. 03, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 28,187 | $ 22,280 | $ 12,421 | |
Summit Heath-CityMD | ||||
Purchase price allocation: | ||||
Cash consideration | $ 4,778 | |||
Deferred consideration | 100 | |||
Summit debt paid at closing | 1,963 | |||
Fair value of equity consideration | 1,971 | |||
Fair value of non-controlling interest | 13 | |||
Total | 8,825 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 69 | |||
Accounts receivable, net | 382 | |||
Property, plant and equipment | 607 | |||
Intangible assets | 3,359 | |||
Operating lease right-of-use assets | 756 | |||
Other assets | 173 | |||
Operating lease obligations | (773) | |||
Deferred tax liability | (737) | |||
Other liabilities | (446) | |||
Total identifiable net assets | 3,390 | |||
Goodwill | $ 5,436 |
Acquisitions and other Invest_5
Acquisitions and other Investments - pro forma information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Business Acquisition [Line Items] | ||
Pro forma sales | $ 134,314 | $ 135,306 |
Sales, actual | 1,795 | |
Summit Heath-CityMD | ||
Business Acquisition [Line Items] | ||
Pro forma sales | 140,039 | $ 135,379 |
Sales, actual | $ 1,896 |
Acquisitions and other Invest_6
Acquisitions and other Investments - schedule of purchase price allocation and identifiable assets acquired and liabilities assumed - Village MD (Details) - USD ($) $ in Millions | Nov. 24, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 28,187 | $ 22,280 | $ 12,421 | |
VillageMD | ||||
Purchase price allocation: | ||||
Total purchase price | $ 5,200 | |||
Less: purchase price for issuance of new preferred units at fair value | (2,300) | |||
Net consideration | 2,900 | |||
Fair value of equity consideration | 683 | |||
Fair value of previously held equity and debt | 3,211 | |||
Fair value of non-controlling interest | 3,257 | |||
Total | 10,051 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Tangible assets | 634 | |||
Intangible assets | 1,621 | |||
Liabilities | (370) | |||
Total identifiable net assets | 1,885 | |||
Goodwill | $ 8,166 |
Acquisitions and other Invest_7
Acquisitions and other Investments - schedule of purchase price allocation and identifiable assets acquired and liabilities assumed - Shields (Details) - USD ($) $ in Millions | Oct. 29, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 28,187 | $ 22,280 | $ 12,421 | |
Shields Health Solutions | ||||
Purchase price allocation: | ||||
Cash consideration | $ 969 | |||
Fair value of equity consideration | 13 | |||
Fair value of previously held equity and debt | 502 | |||
Fair value of non-controlling interest | 589 | |||
Total | 2,074 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Tangible assets | 84 | |||
Intangible assets | 1,060 | |||
Liabilities | (600) | |||
Total identifiable net assets | 544 | |||
Goodwill | $ 1,529 |
Acquisitions and other Invest_8
Acquisitions and other Investments - schedule of purchase price allocation and identifiable assets acquired and liabilities assumed - Care Centrix (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2021 |
Identifiable assets acquired and liabilities assumed: | |||
Goodwill | $ 22,280 | $ 28,187 | $ 12,421 |
CareCentrix, Inc. | |||
Purchase price allocation: | |||
Cash consideration | 327 | ||
Contingent consideration | 4 | ||
Fair value of equity consideration | 66 | ||
Fair value of non-controlling interest | 217 | ||
Total | 614 | ||
Identifiable assets acquired and liabilities assumed: | |||
Tangible assets | 358 | ||
Intangible assets | 426 | ||
Liabilities | (680) | ||
Total identifiable net assets | 104 | ||
Goodwill | $ 509 |
Exit and disposal activities -
Exit and disposal activities - narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Oct. 12, 2021 USD ($) store | Dec. 20, 2018 USD ($) | Sep. 30, 2023 market clinic | Aug. 31, 2023 USD ($) store | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | Sep. 01, 2019 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Cumulative effect adjustment to decrease retained earnings | $ (28,322) | $ (29,366) | $ (23,822) | $ (21,136) | ||||
Adoption of new accounting standards | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cumulative effect adjustment to decrease retained earnings | 6 | |||||||
Retained earnings | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cumulative effect adjustment to decrease retained earnings | (33,058) | (37,801) | (35,121) | (34,210) | ||||
Retained earnings | Adoption of new accounting standards | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cumulative effect adjustment to decrease retained earnings | $ 3 | |||||||
Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected annual cost savings of restructuring plan | 4,500 | 3,500 | ||||||
Costs incurred | 3,100 | |||||||
Restructuring costs | $ 1,158 | 690 | 335 | |||||
Transformational cost management program | Subsequent event | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of clinics closed | clinic | 60 | |||||||
Number of markets exited | market | 5 | |||||||
Transformational cost management program | United Kingdom | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of stores expected to close | store | 350 | 300 | ||||||
Number of stores closed | store | 291 | |||||||
Transformational cost management program | United States | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of stores expected to close | store | 200 | |||||||
Number of stores closed | store | 466 | |||||||
Transformational cost management program | Retained earnings | Adoption of new accounting standards | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cumulative effect adjustment to decrease retained earnings | $ 508 | |||||||
Lease obligations and other real estate costs | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Costs incurred | $ 1,100 | |||||||
Restructuring costs | 516 | 249 | 108 | |||||
Asset impairments | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Costs incurred | 883 | |||||||
Restructuring costs | 441 | 190 | 24 | |||||
Employee severance and business transition costs | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Costs incurred | 873 | |||||||
Restructuring costs | 150 | 210 | 165 | |||||
Information technology transformation and other exit costs | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Costs incurred | 253 | |||||||
Restructuring costs | 51 | 40 | $ 38 | |||||
Minimum | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected annual cost savings of restructuring plan | $ 3,300 | $ 2,000 | ||||||
Expected restructuring costs | 4,100 | 3,600 | ||||||
Minimum | Transformational cost management program | United States | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of stores expected to close | store | 450 | |||||||
Minimum | Exit and disposal costs | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected restructuring costs | 3,800 | 3,300 | ||||||
Maximum | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected annual cost savings of restructuring plan | 3,500 | |||||||
Expected restructuring costs | 4,400 | 3,900 | ||||||
Maximum | Transformational cost management program | United States | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of stores expected to close | store | 500 | |||||||
Maximum | Exit and disposal costs | Transformational cost management program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected restructuring costs | $ 4,100 | $ 3,600 |
Exit and disposal activities _2
Exit and disposal activities - restructuring costs (Details) - Transformational cost management program - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | $ 1,158 | $ 690 | $ 335 |
Reportable Segments | U.S. Retail Pharmacy | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 816 | 546 | 217 |
Reportable Segments | International | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 213 | 118 | 72 |
Reportable Segments | U.S. Healthcare | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 115 | 0 | 0 |
Corporate and Other | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 14 | 25 | 46 |
Lease obligations and other real estate costs | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 516 | 249 | 108 |
Lease obligations and other real estate costs | Reportable Segments | U.S. Retail Pharmacy | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 492 | 247 | 103 |
Lease obligations and other real estate costs | Reportable Segments | International | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 23 | 2 | 6 |
Lease obligations and other real estate costs | Reportable Segments | U.S. Healthcare | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 0 | 0 | 0 |
Lease obligations and other real estate costs | Corporate and Other | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 1 | 0 | 0 |
Asset impairments | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 441 | 190 | 24 |
Asset impairments | Reportable Segments | U.S. Retail Pharmacy | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 183 | 132 | 15 |
Asset impairments | Reportable Segments | International | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 149 | 58 | 9 |
Asset impairments | Reportable Segments | U.S. Healthcare | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 109 | 0 | 0 |
Asset impairments | Corporate and Other | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 0 | 0 | 0 |
Employee severance and business transition costs | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 150 | 210 | 165 |
Employee severance and business transition costs | Reportable Segments | U.S. Retail Pharmacy | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 111 | 156 | 79 |
Employee severance and business transition costs | Reportable Segments | International | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 20 | 29 | 40 |
Employee severance and business transition costs | Reportable Segments | U.S. Healthcare | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 6 | 0 | 0 |
Employee severance and business transition costs | Corporate and Other | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 13 | 25 | 45 |
Information technology transformation and other exit costs | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 51 | 40 | 38 |
Information technology transformation and other exit costs | Reportable Segments | U.S. Retail Pharmacy | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 30 | 12 | 20 |
Information technology transformation and other exit costs | Reportable Segments | International | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 21 | 29 | 17 |
Information technology transformation and other exit costs | Reportable Segments | U.S. Healthcare | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | 0 | 0 | 0 |
Information technology transformation and other exit costs | Corporate and Other | |||
Restructuring Reserve Disclosures [Abstract] | |||
Total pre-tax exit and disposal charges | $ 0 | $ 0 | $ 0 |
Exit and disposal activities _3
Exit and disposal activities - restructuring reserve activity (Details) - Transformational cost management program - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 113 | $ 114 |
Costs | 1,158 | 690 |
Payments | (320) | (323) |
Other - non cash | (849) | (367) |
Ending balance | 102 | 113 |
Lease obligations and other real estate costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 10 | 17 |
Costs | 516 | 249 |
Payments | (105) | (99) |
Other - non cash | (411) | (157) |
Ending balance | 10 | 10 |
Asset impairments | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | 0 |
Costs | 441 | 190 |
Payments | 0 | 0 |
Other - non cash | (441) | (190) |
Ending balance | 0 | 0 |
Employee severance and business transition costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 76 | 77 |
Costs | 150 | 210 |
Payments | (160) | (201) |
Other - non cash | 2 | (9) |
Ending balance | 70 | 76 |
Information technology transformation and other exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 27 | 20 |
Costs | 51 | 40 |
Payments | (55) | (23) |
Other - non cash | 0 | (11) |
Ending balance | $ 22 | $ 27 |
Leases - supplemental balance s
Leases - supplemental balance sheet information (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Operating leases: | ||
Operating lease right-of-use assets | $ 21,667 | $ 21,259 |
Operating lease obligations - current | 2,347 | 2,286 |
Operating lease obligations - non-current | 22,124 | 21,517 |
Total operating lease obligations | 24,472 | 23,803 |
Finance leases: | ||
Property, plant and equipment, net | 678 | 645 |
Lease obligations included in: | ||
Accrued expenses and other liabilities | 57 | 37 |
Other non-current liabilities | 919 | 899 |
Total finance lease obligations | $ 976 | $ 936 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Leases - supplemental income st
Leases - supplemental income statement information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Operating lease cost | |||
Fixed | $ 3,404 | $ 3,240 | $ 3,219 |
Variable | 850 | 825 | 664 |
Finance lease cost | |||
Amortization | 47 | 44 | 45 |
Interest | 51 | 50 | 52 |
Sublease income | 115 | 105 | 84 |
Impairment of right-of-use assets | 495 | 218 | 86 |
Gain on sale-leaseback transactions | 925 | 619 | 367 |
U.S. Retail Pharmacy | |||
Finance lease cost | |||
Gain on sale-leaseback transactions | 747 | 558 | 367 |
International | |||
Finance lease cost | |||
Gain on sale-leaseback transactions | 178 | 61 | $ 0 |
International | GERMANY | |||
Finance lease cost | |||
Gain on sale-leaseback transactions | 178 | ||
International | GERMANY | Fiscal Year 2023 Acquisitions | |||
Finance lease cost | |||
Gain on sale-leaseback transactions | $ 47 | ||
International | United Kingdom | |||
Finance lease cost | |||
Gain on sale-leaseback transactions | $ 61 |
Leases - other supplemental inf
Leases - other supplemental information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Cash paid for amounts included in the measurement of lease obligations | |||
Operating cash flows from operating leases | $ 3,579 | $ 3,351 | $ 3,414 |
Operating cash flows from finance leases | 47 | 47 | 48 |
Financing cash flows from finance leases | 52 | 43 | 42 |
Total | 3,679 | 3,441 | 3,503 |
Right-of-use assets obtained in exchange for new lease obligations | |||
Operating leases | 2,323 | 2,078 | 2,765 |
Finance leases | 30 | 11 | 0 |
Total | $ 2,352 | $ 2,089 | $ 2,765 |
Leases - average lease terms an
Leases - average lease terms and discount rates (Details) | Aug. 31, 2023 | Aug. 31, 2022 |
Weighted average remaining lease term in years | ||
Operating leases | 9 years 7 months 6 days | 10 years |
Finance leases | 17 years 4 months 24 days | 19 years |
Weighted average discount rate | ||
Operating leases | 5.35% | 4.83% |
Finance leases | 5.25% | 5.19% |
Leases - future lease payments
Leases - future lease payments for operating and finance leases (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Finance lease | ||
2024 | $ 109 | |
2025 | 104 | |
2026 | 101 | |
2027 | 99 | |
2028 | 90 | |
Later | 967 | |
Total undiscounted minimum lease payments | 1,470 | |
Less: Present value discount | (495) | |
Lease liability | 976 | $ 936 |
Operating lease 1,2 | ||
2024 | 3,672 | |
2025 | 3,589 | |
2026 | 3,508 | |
2027 | 3,417 | |
2028 | 3,267 | |
Later | 14,508 | |
Total undiscounted minimum lease payments | 31,960 | |
Less: Present value discount | (7,488) | |
Lease liability | $ 24,472 | $ 23,803 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Aug. 31, 2023 USD ($) |
Leases [Abstract] | |
Undiscounted minimum lease payments, payments associated with options to extend lease terms | $ 3,700 |
Lessor, operating lease, payments to be received | $ 606 |
Equity method investments - car
Equity method investments - carrying value (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying value | $ 3,497 | $ 5,495 |
Cencora | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value | $ 2,534 | $ 3,916 |
Ownership percentage | 16% | 25% |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value | $ 963 | $ 1,579 |
Others | Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 8% | 8% |
Others | Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% | 50% |
Equity method investments - nar
Equity method investments - narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 15, 2022 | May 31, 2023 | Feb. 28, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on sale of equity method investment | $ 1,855 | $ 559 | $ 321 | |||
Equity earnings (loss) | 286 | 468 | (498) | |||
Share of OCI of equity method investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other comprehensive income (loss) before reclassification adjustments | $ 6 | $ (326) | (24) | |||
Cencora | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment owned (in shares) | 31,800,000 | 52,900,000 | ||||
Percentage of outstanding common shares owned | 15.90% | 25.40% | ||||
Proceeds from sale of equity method investments | $ 3,400 | $ 900 | ||||
Gain on sale of equity method investment | 1,600 | 417 | ||||
Other comprehensive income (loss) before reclassification adjustments | $ (160) | (32) | ||||
Time period of reporting lag | 2 months | |||||
Equity earnings (loss) | $ 252 | 418 | (1,100) | |||
Equity investment, exceeded its proportionate share of net assets | 2,400 | |||||
Cencora | Opiod Litigation | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings (loss) | (5,600) | |||||
Cencora | Level 1 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Fair value of assets | 5,600 | 7,700 | ||||
Guangzhou Pharmaceuticals | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale of equity method investments | $ 150 | |||||
Option Care Health | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale of equity method investments | 798 | 363 | ||||
Gain on sale of equity method investment | $ 76 | $ 186 | 145 | 290 | ||
Equity earnings (loss) | 576 | |||||
Option Care Health | HC Group Holdings I, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on sale of equity method investment | $ 1,200 | |||||
VillageMD | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on sale of equity method investment | 2,200 | |||||
Equity method investment, other than temporary impairment | $ 124 | |||||
Shields Health Solutions | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain on sale of equity method investment | $ 402 |
Equity method investments - sum
Equity method investments - summarized financial information of equity method investees (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Statement of Financial Position [Abstract] | ||||||||||||
Current assets | $ 15,503 | $ 16,902 | $ 15,503 | $ 16,902 | ||||||||
Non-current assets | 81,125 | 73,222 | 81,125 | 73,222 | ||||||||
Current liabilities | 24,535 | 22,583 | 24,535 | 22,583 | ||||||||
Non-current liabilities | 43,605 | 37,134 | 43,605 | 37,134 | ||||||||
Shareholders' equity | 28,322 | 29,366 | 28,322 | 29,366 | $ 23,822 | $ 21,136 | ||||||
Non-controlling interests | 8,302 | 4,091 | 8,302 | 4,091 | ||||||||
Income Statement [Abstract] | ||||||||||||
Sales | 35,422 | $ 35,415 | $ 34,862 | $ 33,382 | 32,449 | $ 32,597 | $ 33,756 | $ 33,901 | 139,081 | 132,703 | 132,509 | |
Gross profit | 6,475 | $ 6,588 | $ 7,055 | $ 6,953 | 6,410 | $ 6,572 | $ 7,708 | $ 7,574 | 27,072 | 28,265 | 28,067 | |
Net earnings (loss) | (3,528) | 4,065 | 2,512 | |||||||||
Share of earnings (loss) from equity method investments | 286 | 468 | (512) | |||||||||
Equity Method Investment | ||||||||||||
Statement of Financial Position [Abstract] | ||||||||||||
Current assets | 48,185 | 50,985 | 48,185 | 50,985 | ||||||||
Non-current assets | 25,618 | 26,497 | 25,618 | 26,497 | ||||||||
Current liabilities | 52,093 | 52,083 | 52,093 | 52,083 | ||||||||
Non-current liabilities | 17,999 | 19,712 | 17,999 | 19,712 | ||||||||
Shareholders' equity | 3,711 | 5,687 | 3,711 | 5,687 | ||||||||
Non-controlling interests | $ 520 | $ 564 | 520 | 564 | ||||||||
Income Statement [Abstract] | ||||||||||||
Sales | 279,118 | 268,189 | 232,719 | |||||||||
Gross profit | 12,457 | 13,248 | 10,889 | |||||||||
Net earnings (loss) | $ 1,799 | $ 1,988 | $ (3,475) |
Goodwill and other intangible_3
Goodwill and other intangible assets - narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Jun. 01, 2023 | May 31, 2023 | |
Goodwill [Line Items] | |||||
Goodwill | $ 28,187 | $ 22,280 | $ 12,421 | ||
Indefinite lived intangible assets | 5,477 | 5,528 | |||
Impairment of definite-lived intangible assets | 0 | 0 | 0 | ||
Amortization expense for intangible assets | $ 815 | $ 639 | 523 | ||
Minimum | |||||
Goodwill [Line Items] | |||||
Percentage of reporting unit fair value in excess of carrying amount | 3% | 3% | 3% | 3% | |
Maximum | |||||
Goodwill [Line Items] | |||||
Percentage of reporting unit fair value in excess of carrying amount | 7% | 7% | 227% | 32% | |
Pharmacy licenses | |||||
Goodwill [Line Items] | |||||
Indefinite lived intangible assets | $ 828 | $ 1,209 | |||
Boots Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | 977 | 906 | |||
Impairment of intangible assets | 431 | 783 | $ 49 | ||
Indefinite lived intangible assets | $ 5,500 | $ 5,500 |
Goodwill and other intangible_4
Goodwill and other intangible assets - schedule of goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 22,280 | $ 12,421 |
Acquisitions | 5,588 | 10,040 |
Goodwill, purchase accounting adjustments | 252 | |
Currency translation adjustments and other | 67 | (181) |
Ending balance | 28,187 | 22,280 |
VillageMD | ||
Goodwill [Roll Forward] | ||
Acquisitions | 8,000 | |
Goodwill, purchase accounting adjustments | 125 | |
Shields Health Solutions | ||
Goodwill [Roll Forward] | ||
Acquisitions | 1,500 | |
Goodwill, purchase accounting adjustments | 72 | |
CareCentrix, Inc. | ||
Goodwill [Roll Forward] | ||
Beginning balance | 509 | |
Acquisitions | 454 | |
Goodwill, purchase accounting adjustments | 56 | |
Ending balance | 509 | |
Reportable Segments | U.S. Retail Pharmacy | ||
Goodwill [Roll Forward] | ||
Beginning balance | 10,947 | 10,947 |
Acquisitions | 0 | 0 |
Goodwill, purchase accounting adjustments | 0 | |
Currency translation adjustments and other | 0 | 0 |
Ending balance | 10,947 | 10,947 |
Reportable Segments | International | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,293 | 1,474 |
Acquisitions | 0 | 0 |
Goodwill, purchase accounting adjustments | 0 | |
Currency translation adjustments and other | 85 | (181) |
Ending balance | 1,378 | 1,293 |
Reportable Segments | U.S. Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning balance | 10,040 | 0 |
Acquisitions | 5,588 | 10,040 |
Goodwill, purchase accounting adjustments | 252 | |
Currency translation adjustments and other | (18) | 0 |
Ending balance | $ 15,863 | $ 10,040 |
Goodwill and other intangible_5
Goodwill and other intangible assets - schedule of finite-lived intangible assets by major class (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | $ 10,767 | $ 7,155 |
Total accumulated amortization | 2,609 | 1,953 |
Total amortizable intangible assets, net | 8,158 | 5,202 |
Total indefinite-lived intangible assets | 5,477 | 5,528 |
Total intangible assets, net | 13,635 | 10,730 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangible assets | 4,650 | 4,319 |
Pharmacy licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangible assets | 828 | 1,209 |
Customer relationships and loyalty card holders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 4,658 | 4,619 |
Total accumulated amortization | 1,784 | 1,548 |
Primary Care Provider Network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 3,202 | 1,247 |
Total accumulated amortization | 233 | 64 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 2,300 | 760 |
Total accumulated amortization | 401 | 246 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 469 | 436 |
Total accumulated amortization | 143 | 56 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 137 | 93 |
Total accumulated amortization | $ 48 | $ 39 |
Goodwill and other intangible_6
Goodwill and other intangible assets - schedule of finite-lived intangible assets, future amortization expense (Details) $ in Millions | Aug. 31, 2023 USD ($) |
Estimated annual amortization expense | |
2024 | $ 930 |
2025 | 884 |
2026 | 852 |
2027 | 773 |
2028 | $ 697 |
Debt - short and long-term debt
Debt - short and long-term debt (Details) | 12 Months Ended | |||||||
Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2023 GBP (£) | Aug. 31, 2023 EUR (€) | Dec. 19, 2022 USD ($) | Nov. 17, 2021 USD ($) | Nov. 15, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Total short-term debt | $ 917,000,000 | $ 1,059,000,000 | ||||||
Other | 20,000,000 | 26,000,000 | ||||||
Total long-term debt, less current portion | 8,145,000,000 | 10,615,000,000 | ||||||
Long-term debt purchased and retired | 8,978,000,000 | 8,360,000,000 | $ 15,257,000,000 | |||||
Loss on early extinguishment of debt | 0 | 6,000,000 | 414,000,000 | |||||
0.9500% notes payable, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short-term debt | 850,000,000 | 0 | ||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short-term debt | 68,000,000 | 59,000,000 | ||||||
Unsecured credit facility, 3 year term, due 2026 | Credit facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 1,000,000,000 | |||||||
Unsecured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | 6,000,000 | $ 387,000,000 | ||||||
Unsecured notes | 0.9500% notes payable, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 850,000,000 | $ 850,000,000 | ||||||
Stated interest rate (as a percent) | 0.95% | 0.95% | 0.95% | 95% | ||||
Long-term debt | $ 0 | 848,000,000 | ||||||
Unsecured notes | $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] | ||||||||
Stated interest rate (as a percent) | 3.20% | 3.20% | 3.20% | |||||
Long-term debt | $ 498,000,000 | 498,000,000 | ||||||
Unsecured notes | 4.100% unsecured notes due 2050 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.10% | 4.10% | 4.10% | |||||
Long-term debt | $ 793,000,000 | 792,000,000 | ||||||
Unsecured notes | Total $6 billion note 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 (as a percent) | 3.45% | 3.45% | 3.45% | |||||
Long-term debt | $ 1,444,000,000 | 1,443,000,000 | ||||||
Unsecured notes | 4.650% unsecured notes due 2046 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.65% | 4.65% | 4.65% | |||||
Long-term debt | $ 318,000,000 | 318,000,000 | ||||||
Unsecured notes | Total $8 billion note 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 (as a percent) | 3.80% | 3.80% | 3.80% | |||||
Long-term debt | $ 1,156,000,000 | 1,155,000,000 | ||||||
Unsecured notes | 4.500% unsecured notes due 2034 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.50% | 4.50% | 4.50% | |||||
Long-term debt | $ 301,000,000 | 301,000,000 | ||||||
Unsecured notes | 4.800% unsecured notes due 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.80% | 4.80% | 4.80% | |||||
Long-term debt | $ 869,000,000 | 869,000,000 | ||||||
Unsecured notes | Total £700 million note issuance | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | £ | £ 700,000,000 | |||||||
Unsecured notes | 3.600% unsecured Pound sterling notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 3.60% | 3.60% | 3.60% | |||||
Long-term debt | $ 381,000,000 | 354,000,000 | ||||||
Unsecured notes | Total €750 million note 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 (as a percent) | 2.125% | 2.125% | 2.125% | |||||
Long-term debt | $ 814,000,000 | 752,000,000 | ||||||
Unsecured notes | Total $4 billion note issuance | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 4,000,000,000 | |||||||
Unsecured notes | 4.400% unsecured notes due 2042 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.40% | 4.40% | 4.40% | |||||
Long-term debt | $ 263,000,000 | 263,000,000 | ||||||
Term loan | Credit facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 3,000,000,000 | |||||||
Credit facilities | November 2021 DDTL due November 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 0 | 1,998,000,000 | ||||||
Credit facilities | November 2021 DDTL due November 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 289,000,000 | 999,000,000 | ||||||
Credit facilities | December 2022 DDTL due January 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 999,000,000 | 0 | ||||||
Credit facilities | November 2021 DDTL due February 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short-term debt | 0 | $ 1,000,000,000 | ||||||
Unsecured notes | 0.9500% notes payable, due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 850,000,000 | |||||||
Stated interest rate (as a percent) | 0.95% | 0.95% | 0.95% |
Debt - long-term debt by future
Debt - long-term debt by future maturity (Details) $ in Millions | Aug. 31, 2023 USD ($) |
Long Term Debt by Future Maturity [Abstract] | |
2024 | $ 918 |
2025 | 1,451 |
2026 | 2,830 |
2027 | 815 |
2028 | 3 |
Later | 3,074 |
Total estimated future maturities | $ 9,092 |
Debt - narrative (Details)
Debt - narrative (Details) - USD ($) | 12 Months Ended | ||||||||
Aug. 09, 2023 | Mar. 02, 2023 | Dec. 19, 2022 | Jun. 17, 2022 | Nov. 17, 2021 | Nov. 15, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||||||
Interest paid, net of capitalized interest | $ 606,000,000 | $ 420,000,000 | $ 916,000,000 | ||||||
Loss on early extinguishment of debt | 0 | 6,000,000 | 414,000,000 | ||||||
Commercial paper | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Commercial paper, amount outstanding | $ 0 | 0 | |||||||
Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt to total capitalization ratio | 0.60 | ||||||||
Unsecured notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Loss on early extinguishment of debt | 6,000,000 | $ 387,000,000 | |||||||
Unsecured notes | 0.9500% notes payable, due 2023 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 850,000,000 | $ 850,000,000 | |||||||
Stated interest rate (as a percent) | 95% | 0.95% | |||||||
Debt instrument, redemption price, percentage | 100% | ||||||||
Long term debt | $ 0 | $ 848,000,000 | |||||||
Credit facilities | Unsecured credit facility, due August 2026 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 2,250,000,000 | ||||||||
Debt term | 3 years | ||||||||
Borrowings outstanding | 0 | ||||||||
Credit facilities | Unsecured credit facility, due August 2026 | Minimum | SOFR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||||
Credit facilities | Unsecured credit facility, due August 2026 | Maximum | SOFR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||
Credit facilities | Unsecured credit facility, due August 2023 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 1,000,000,000 | ||||||||
Debt term | 3 years | ||||||||
Borrowings outstanding | 0 | ||||||||
Credit facilities | Unsecured credit facility, due August 2023 | SOFR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.125% | ||||||||
Credit facilities | Unsecured credit facility, 364 day term, due 2024 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 900,000,000 | ||||||||
Debt term | 364 days | ||||||||
Credit facilities | Unsecured credit facility, 364 day term, due 2024 | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.80% | ||||||||
Credit facilities | Unsecured credit facility, 364 day term, due 2024 | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.10% | ||||||||
Credit facilities | Unsecured credit facility, 3 year term, due 2026 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 1,000,000,000 | ||||||||
Borrowings outstanding | 1,000,000,000 | ||||||||
Credit facilities | Unsecured credit facility, 3 year term, due 2026 | SOFR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.125% | ||||||||
Credit facilities | June 17, 2022 revolving credit facility, five-year facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 3,500,000,000 | ||||||||
Debt term | 5 years | ||||||||
Credit facilities | June 17, 2022 revolving credit facility, 18-month facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 1,500,000,000 | ||||||||
Debt term | 18 months | ||||||||
Borrowings outstanding | 0 | ||||||||
Credit facilities | June 17, 2022 revolving credit facility, 18-month facility | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.80% | ||||||||
Credit facilities | June 17, 2022 revolving credit facility, 18-month facility | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||
Credit facilities | Delayed draw term loan credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 5,000,000,000 | ||||||||
Credit facilities | Delayed draw term loan credit facility | Term loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long term debt | $ 289,000,000 | ||||||||
Credit facilities | Delayed draw term loan credit facility, 364-day facility | Term loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 2,000,000,000 | ||||||||
Debt term | 364 days | ||||||||
Credit facilities | Delayed draw term loan credit facility, 364-day facility | Term loan | Eurodollar | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||||
Credit facilities | Delayed draw term loan credit facility, two-year facility | Term loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt term | 2 years | ||||||||
Credit facilities | Term loan | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 3,000,000,000 | ||||||||
Credit facilities | Term loan | June 17, 2022 revolving credit facility, five-year facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt term | 5 years | ||||||||
Credit facilities | Term loan | June 17, 2022 revolving credit facility, 18-month facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt term | 18 months | ||||||||
Credit facilities | Term loan | Delayed draw term loan credit facility, two-year facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 2,000,000,000 | ||||||||
Debt term | 2 years | ||||||||
Credit facilities | Term loan | Delayed draw term loan credit facility, two-year facility | Eurodollar | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.88% | ||||||||
Credit facilities | Term loan | Delayed draw term loan credit facility, three-year facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 1,000,000,000 | ||||||||
Debt term | 3 years | ||||||||
Credit facilities | Term loan | Delayed draw term loan credit facility, three-year facility | SOFR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.03% |
Financial instruments - derivat
Financial instruments - derivative instruments (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Foreign currency forwards | Derivatives designated as hedges: | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, assets | $ 31 | $ 448 |
Fair value, assets | $ 1 | $ 19 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Foreign currency forwards | Derivatives designated as hedges: | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, assets | $ 3 | |
Fair value, assets | $ 0 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | |
Foreign currency forwards | Derivatives designated as hedges: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, liabilities | $ 805 | $ 221 |
Fair value, liabilities | $ 2 | $ 1 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Foreign currency forwards | Derivatives designated as hedges: | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, liabilities | $ 4 | |
Fair value, liabilities | $ 0 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | |
Foreign currency forwards | Derivatives not designated as hedges: | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, assets | $ 3,139 | $ 2,874 |
Fair value, assets | $ 6 | $ 49 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Foreign currency forwards | Derivatives not designated as hedges: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, liabilities | $ 817 | $ 1,098 |
Fair value, liabilities | $ 2 | $ 6 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Cross currency interest rate swaps | Derivatives designated as hedges: | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, assets | $ 150 | |
Fair value, assets | $ 12 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | |
Cross currency interest rate swaps | Derivatives designated as hedges: | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, assets | $ 650 | $ 750 |
Fair value, assets | $ 28 | $ 83 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Cross currency interest rate swaps | Derivatives designated as hedges: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, liabilities | $ 102 | |
Fair value, liabilities | $ 2 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | |
Total return swaps | Derivatives not designated as hedges: | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, assets | $ 168 | |
Fair value, assets | $ 1 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | |
Total return swaps | Derivatives not designated as hedges: | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, liabilities | $ 26 | $ 183 |
Fair value, liabilities | $ 1 | $ 6 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Variable prepaid forward | Derivatives not designated as hedges: | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount, liabilities | $ 3,195 | |
Fair value, liabilities | $ 2,548 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities |
Financial instruments - variabl
Financial instruments - variable prepaid forward transactions (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Aug. 04, 2023 | Aug. 03, 2023 | Jun. 15, 2023 | May 11, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||||||
Proceeds from variable prepaid forward | $ 2,568 | $ 0 | $ 0 | ||||
Derivatives not designated as hedges: | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Pledged collateral (in shares) | 17,300 | ||||||
Proceeds from variable prepaid forward | $ 2,568 | ||||||
Derivatives not designated as hedges: | Variable Prepaid Forward Due Fourth Quarter Fiscal 2025 | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Pledged collateral (in shares) | 4,600 | ||||||
Proceeds from variable prepaid forward | $ 644 | ||||||
Derivatives not designated as hedges: | Variable Prepaid Forward Due Third Quarter Fiscal 2025 | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Pledged collateral (in shares) | 2,200 | ||||||
Proceeds from variable prepaid forward | $ 325 | ||||||
Derivatives not designated as hedges: | Variable Prepaid Forward Due First Quarter Fiscal 2026 | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Pledged collateral (in shares) | 5,300 | ||||||
Proceeds from variable prepaid forward | $ 801 | ||||||
Derivatives not designated as hedges: | Variable Prepaid Forward Due Third Quarter Fiscal 2026 | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Pledged collateral (in shares) | 5,300 | ||||||
Proceeds from variable prepaid forward | $ 797 |
Financial instruments - warrant
Financial instruments - warrants (Details) - Derivatives not designated as hedges: - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Foreign currency forwards | Selling, general and administrative expense | |||
Warrants [Abstract] | |||
Gains (losses) due to changes in fair value of derivative instruments | $ 0 | $ 0 | $ (75) |
Foreign currency forwards | Other income (expense) | |||
Warrants [Abstract] | |||
Gains (losses) due to changes in fair value of derivative instruments | (273) | 523 | (8) |
Total return swaps | Selling, general and administrative expense | |||
Warrants [Abstract] | |||
Gains (losses) due to changes in fair value of derivative instruments | 12 | (33) | 58 |
Variable prepaid forward | Other income (expense) | |||
Warrants [Abstract] | |||
Gains (losses) due to changes in fair value of derivative instruments | $ 19 | $ 0 | $ 0 |
Fair value measurements (Detail
Fair value measurements (Details) $ in Millions | Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) |
Liabilities [Abstract] | ||
Carrying value of long-term notes outstanding | $ 9,092 | |
Carrying Value | ||
Liabilities [Abstract] | ||
Carrying value of long-term notes outstanding | 7,700 | |
Estimate of Fair Value Measurement | ||
Liabilities [Abstract] | ||
Fair value of long-term notes outstanding | $ 6,800 | |
Level 3 | Measurement Input, Price Volatility | Minimum | Lower Strike Price | ||
Liabilities [Abstract] | ||
Derivative liability, measurement input | 0.232 | |
Level 3 | Measurement Input, Price Volatility | Minimum | Upper Strike Price | ||
Liabilities [Abstract] | ||
Derivative liability, measurement input | 0.181 | |
Level 3 | Measurement Input, Price Volatility | Maximum | Lower Strike Price | ||
Liabilities [Abstract] | ||
Derivative liability, measurement input | 0.247 | |
Level 3 | Measurement Input, Price Volatility | Maximum | Upper Strike Price | ||
Liabilities [Abstract] | ||
Derivative liability, measurement input | 0.191 | |
Recurring | ||
Assets [Abstract] | ||
Money market funds | $ 11 | $ 1,114 |
Investment in equity securities | 17 | 1 |
Investments in debt securities | 15 | 130 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Money market funds | 11 | 1,114 |
Investment in equity securities | 17 | 1 |
Investments in debt securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Investment in equity securities | 0 | 0 |
Investments in debt securities | 15 | 130 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Money market funds | 0 | 0 |
Investment in equity securities | 0 | 0 |
Investments in debt securities | 0 | 0 |
Recurring | Foreign currency forwards | ||
Assets [Abstract] | ||
Derivative asset | 6 | 69 |
Liabilities [Abstract] | ||
Derivative liability | 5 | 7 |
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 | 6 | 69 |
Liabilities [Abstract] | ||
Derivative liability | 5 | 7 |
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 | 28 | 96 |
Liabilities [Abstract] | ||
Derivative liability | 2 | |
Recurring | Cross currency interest rate swaps | Level 1 | ||
Assets [Abstract] | ||
Derivative asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liability | 0 | |
Recurring | Cross currency interest rate swaps | Level 2 | ||
Assets [Abstract] | ||
Derivative asset | 28 | 96 |
Liabilities [Abstract] | ||
Derivative liability | 2 | |
Recurring | Cross currency interest rate swaps | Level 3 | ||
Assets [Abstract] | ||
Derivative asset | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liability | 0 | |
Recurring | Total return swaps | ||
Assets [Abstract] | ||
Derivative asset | 1 | |
Liabilities [Abstract] | ||
Derivative liability | 1 | 6 |
Recurring | Total return swaps | Level 1 | ||
Assets [Abstract] | ||
Derivative asset | 0 | |
Liabilities [Abstract] | ||
Derivative liability | 0 | 0 |
Recurring | Total return swaps | Level 2 | ||
Assets [Abstract] | ||
Derivative asset | 1 | |
Liabilities [Abstract] | ||
Derivative liability | 1 | 6 |
Recurring | Total return swaps | Level 3 | ||
Assets [Abstract] | ||
Derivative asset | 0 | |
Liabilities [Abstract] | ||
Derivative liability | 0 | $ 0 |
Recurring | Variable prepaid forward | ||
Liabilities [Abstract] | ||
Derivative liability | 2,548 | |
Recurring | Variable prepaid forward | Level 1 | ||
Liabilities [Abstract] | ||
Derivative liability | 0 | |
Recurring | Variable prepaid forward | Level 2 | ||
Liabilities [Abstract] | ||
Derivative liability | 0 | |
Recurring | Variable prepaid forward | Level 3 | ||
Liabilities [Abstract] | ||
Derivative liability | $ 2,548 |
Fair value measurements - Fair
Fair value measurements - Fair Value Roll Forward (Details) - Derivative Financial Instruments, Liabilities $ in Millions | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 0 |
VPF derivative additions | 2,568 |
Unrealized gains recorded in Other income, net | 19 |
Ending balance | $ 2,548 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Nov. 02, 2022 USD ($) | Jun. 29, 2022 USD ($) | May 05, 2022 USD ($) | Aug. 31, 2022 USD ($) | Dec. 31, 2020 case | Dec. 31, 2017 case | Aug. 31, 2023 USD ($) | Jun. 08, 2023 | Nov. 30, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||||||||
Accrued litigation obligations | $ 551 | $ 6,261 | |||||||
Washtenaw County Employees Retirement Systemn | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded to other party | $ 105 | ||||||||
Rite Aid Merger | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of cases | case | 2 | ||||||||
Rite Aid Merger | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | 193 | ||||||||
Settlement Frameworks | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrued litigation obligations | $ 754 | ||||||||
Litigation settlement, period | 6 years | ||||||||
Estimated litigation liability | $ 6,500 | ||||||||
Settlement Frameworks | Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrued litigation obligations | 6,300 | ||||||||
Estimated litigation liability, current | 703 | ||||||||
Estimated litigation liability | 7,000 | ||||||||
Percentage of litigating subdivisions | 99.50% | ||||||||
Settling States | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, period | 15 years | ||||||||
Estimated litigation liability | $ 4,800 | ||||||||
Settling States | Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, period | 15 years | ||||||||
Settling Tribes | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | $ 155 | ||||||||
Consolidated Cases in State of Florida | Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded to other party | $ 683 | ||||||||
Accrued litigation obligations | $ 620 | ||||||||
Litigation settlement, period | 18 years | ||||||||
Estimated litigation liability, current | $ 63 | ||||||||
Estimated litigation liability | 683 | ||||||||
Ohio Combined Cases | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded to other party | $ 651 | ||||||||
Litigation settlement, period | 15 years | ||||||||
Number of cases | case | 2 | ||||||||
Humana | Pending Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimated litigation liability | 304 | ||||||||
Humana | Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded to other party | $ 642 |
Income taxes - components of ea
Income taxes - components of earnings before income tax provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (7,553) | $ 2,998 | $ 61 |
Non–U.S. | 2,134 | 987 | 1,934 |
(Loss) earnings before income tax (benefit) provision | $ (5,419) | $ 3,985 | $ 1,995 |
Income taxes - narrative (Detai
Income taxes - narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rate | 34.30% | (0.80%) | 33.40% | |
Deferred tax assets, tax attributes | $ 7,784 | $ 7,825 | ||
Income tax credits | 158 | |||
Deferred tax assets operating loss carryforwards subject to expiration | 6,900 | |||
Deferred tax assets operating loss carryforwards not subject to expiration | 832 | |||
Valuation allowance | 7,360 | 7,521 | ||
Income taxes paid | 64 | 387 | $ 336 | |
Unrecognized tax benefits | 1,106 | 1,110 | 1,098 | $ 494 |
Unrecognized tax benefits reported against deferred taxes | 413 | 473 | ||
Unrecognized tax benefits reported against tax receivables | 116 | 116 | ||
Unrecognized tax benefits would favorably impact the effective tax rate if recognized | 588 | 529 | 524 | |
Decrease in unrecognized tax benefits is reasonably possible | 257 | |||
Accrued interest and penalties in income tax provision | 125 | 97 | ||
Interest and penalties included in income tax expense | 29 | 13 | 26 | |
Unrecorded deferred tax liability for temporary differences related to foreign subsidiaries | 9 | 104 | 118 | |
Tax cuts and jobs act, measurement period adjustment, income tax expense (benefit) | (247) | |||
Long-term liabilities | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits | 703 | $ 618 | ||
U.S. Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets, operating loss carryforwards | 1,800 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets, operating loss carryforwards | 465 | |||
Non-U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets, operating loss carryforwards | $ 28,700 | |||
United Kingdom | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax expense recorded from re-measurement of foreign deferred tax liabilities from changes in tax laws | $ 344 |
Income taxes - provision for in
Income taxes - provision for income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Current provision | |||
Federal | $ 242 | $ 39 | $ 79 |
State | (13) | 37 | 115 |
Non–U.S. | 283 | 260 | 234 |
Total current provisions for income taxes | 512 | 336 | 428 |
Deferred provision | |||
Federal | (1,886) | (78) | (10) |
State | (364) | (20) | (46) |
Non–U.S. – tax law change | 0 | 0 | 344 |
Non–U.S. – excluding tax law change | (120) | (268) | (49) |
Total non-current provisions for income taxes | (2,370) | (366) | 239 |
Income tax (benefit) provision | $ (1,858) | $ (30) | $ 667 |
Income taxes - reconciliation t
Income taxes - reconciliation to effective tax rate (Details) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 5.80% | 0.40% | 3.50% |
Foreign income taxed at non-U.S. rates | (3.00%) | (3.00%) | (4.40%) |
Non-taxable income | 2.50% | (2.70%) | (5.00%) |
Non-deductible expenses | (4.90%) | 3% | 0.30% |
Tax law changes | 0% | 0% | 17.30% |
Change in valuation allowance | 6% | (9.00%) | (4.70%) |
Tax benefits from restructuring | 1.10% | 0% | (4.20%) |
Tax expense on non-operating equity earnings | 0% | 0% | 6.10% |
Uncertain tax positions | (0.50%) | 1.30% | 6.20% |
Non-controlling interest | (2.90%) | 1.20% | 0% |
Tax credits | 2.80% | (1.00%) | (1.80%) |
Conversion of equity investment | 0% | (11.80%) | 0% |
Change in outside basis difference | 1.90% | 0% | 0% |
Change in measurement of prior year tax positions | 3.50% | 0% | 0% |
Other | 1% | (0.20%) | (0.90%) |
Effective income tax rate | 34.30% | (0.80%) | 33.40% |
Income taxes - deferred tax ass
Income taxes - deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Deferred tax assets: | ||
Compensation and benefits | $ 98 | $ 171 |
Insurance | 131 | 108 |
Accrued rent & lease obligations | 5,265 | 5,296 |
Legal liability | 1,551 | 174 |
Allowance for doubtful accounts | 23 | 53 |
Tax attributes | 7,784 | 7,825 |
Stock compensation | 74 | 56 |
Deferred income | 8 | 120 |
Equity method investment | 76 | 0 |
Other | 143 | 56 |
Subtotal deferred tax assets | 15,153 | 13,859 |
Less: valuation allowance | 7,360 | 7,521 |
Total deferred tax assets, net | 7,793 | 6,338 |
Deferred tax liabilities: | ||
Accelerated depreciation | 254 | 634 |
Inventory | 403 | 441 |
Intangible assets | 1,024 | 1,134 |
Equity method investment | 0 | 314 |
Lease right-of-use asset | 4,690 | 4,763 |
Outside basis difference | 1,045 | 52 |
Other | 180 | 303 |
Total deferred tax liabilities | 7,596 | 7,641 |
Net deferred tax assets | $ 197 | |
Net deferred tax liabilities | $ (1,303) |
Income taxes - unrecognized tax
Income taxes - unrecognized tax benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of year | $ 1,110 | $ 1,098 | $ 494 |
Gross increases related to tax positions in a prior period | 12 | 63 | 229 |
Gross decreases related to tax positions in a prior period | (19) | (51) | (52) |
Gross increases related to tax positions in the current period | 12 | 21 | 446 |
Settlements with taxing authorities | (7) | (19) | (13) |
Lapse of statute of limitations | (2) | (2) | (6) |
Balance at end of year | $ 1,106 | $ 1,110 | $ 1,098 |
Stock compensation plans (Detai
Stock compensation plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 385 | $ 391 | $ 155 |
Unrecognized compensation cost related to non-vested awards | $ 388 | ||
Compensation cost not yet recognized period for recognition | 3 years | ||
2021 Omnibus Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 58 | 133 | $ 155 |
Walgreens health | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 327 | $ 269 |
Retirement benefits - fair valu
Retirement benefits - fair value hierarchy (Details) - Pension Plan - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | $ 5,594 | $ 6,603 | $ 10,475 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 2,354 | 2,197 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 2,012 | 3,145 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,228 | 1,261 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 264 | 967 | |
Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 264 | 967 | |
Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Fixed interest government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,044 | 688 | |
Fixed interest government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 848 | 402 | |
Fixed interest government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 196 | 285 | |
Fixed interest government bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Index linked government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,364 | 1,785 | |
Index linked government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,364 | 1,785 | |
Index linked government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Index linked government bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,214 | 1,980 | |
Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,214 | 1,980 | |
Corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 466 | 548 | |
Real estate | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 0 | 0 | |
Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 466 | 548 | |
Other investments, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 1,242 | 636 | |
Other investments, net | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 142 | 10 | |
Other investments, net | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | 338 | (87) | |
Other investments, net | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of defined benefit pension plan assets investment of fair market value | $ 761 | $ 713 |
Retirement benefits - component
Retirement benefits - components of net periodic pension costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income, net | Other income, net | Other income, net |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service costs (Selling, general and administrative expenses) | $ 4 | $ 5 | $ 6 |
Interest costs (Other income, net) | 264 | 149 | 139 |
Expected returns on plan assets/other (Other income, net) | (340) | (280) | (332) |
Total net periodic pension income | $ (72) | $ (126) | $ (188) |
Retirement benefits - accumulat
Retirement benefits - accumulated other comprehensive income (Details) - Pension Plan - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 730 | $ (251) | $ (506) |
Prior service cost | (1) | (1) | (1) |
Total pre-tax comprehensive loss (income) | $ 729 | $ (252) | $ (507) |
Retirement benefits - changes i
Retirement benefits - changes in benefit obligations (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 5,967 | $ 10,206 | |
Service costs | 4 | 5 | $ 6 |
Interest costs | 264 | 149 | 139 |
Net actuarial gain | (897) | (3,042) | |
Benefits paid | (286) | (304) | |
Currency translation adjustments | 463 | (1,047) | |
Benefit obligation at end of year | $ 5,515 | $ 5,967 | $ 10,206 |
Retirement benefits - change in
Retirement benefits - change in plan assets (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at fair value at beginning of year | $ 6,603 | $ 10,475 |
Employer contributions | 40 | 45 |
Benefits paid | (286) | (304) |
Return on assets | (1,275) | (2,477) |
Currency translation adjustments | 511 | (1,136) |
Plan assets at fair value at end of year | $ 5,594 | $ 6,603 |
Retirement benefits - balance s
Retirement benefits - balance sheet (Details) - Pension Plan - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 306 | $ 863 |
Accrued expenses and other liabilities | (10) | (9) |
Other non-current liabilities | (216) | (217) |
Net asset recognized at end of year | $ 80 | $ 637 |
Retirement benefits - accumul_2
Retirement benefits - accumulated benefit obligations in excess of plan assets (Details) - Pension Plan - USD ($) $ in Millions | Aug. 31, 2023 | Aug. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 5,515 | $ 5,967 |
Accumulated benefit obligation | 5,503 | 5,961 |
Fair value of plan assets | $ 5,594 | $ 6,603 |
Retirement benefits - expected
Retirement benefits - expected future benefit payments (Details) - Pension Plan $ in Millions | Aug. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 324 |
2025 | 305 |
2026 | 317 |
2027 | 326 |
2028 | 337 |
2029-2033 | $ 1,798 |
Retirement benefits - assumptio
Retirement benefits - assumptions (Details) - Pension Plan | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 5.22% | 4.20% |
Rate of compensation increase | 3.73% | 3.04% |
Weighted-average assumptions used to determine net periodic benefit cost | ||
Discount rate | 4.20% | 1.57% |
Expected long-term return on plan assets | 4.90% | 2.90% |
Rate of compensation increase | 3.04% | 2.80% |
Retirement benefits - narrative
Retirement benefits - narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Reduction in benefit obligation due to potential discount rate decrease | $ 159 | ||
Reduction in benefit obligation due to potential expected return decrease | 14 | ||
Cash contributions to defined benefit pension plans | 18 | ||
Postretirement Health Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan obligation | 113 | $ 122 | |
Expected benefit to be paid next fiscal year | 8 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Profit sharing provision expense | 239 | 234 | $ 221 |
Contributions to profit sharing | 241 | 236 | 222 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cost recognized in the consolidated condensed statements of earnings | $ 83 | $ 90 | $ 101 |
Capital stock (Details)
Capital stock (Details) - USD ($) shares in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Jun. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased during period (in shares) | 0 | 0 | ||
Stock repurchased during current fiscal year, value | $ 150,000,000 | $ 187,000,000 | $ 110,000,000 | |
Shares of common stock reserved for future issuances (in shares) | 63,000 | |||
June 2018 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase program, authorized maximum amount | $ 10,000,000,000 | |||
Stock repurchase program, remaining authorized amount to be purchased | $ 2,000,000,000 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 29,366 | $ 23,822 | $ 21,136 |
Total other comprehensive (loss) income | (176) | (728) | 1,669 |
Ending balance | 28,322 | 29,366 | 23,822 |
Accumulated other comprehensive loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,805) | (2,109) | (3,771) |
Other comprehensive income (loss) before reclassification adjustments | (500) | (97) | 1,022 |
Amounts reclassified from AOCI | 121 | (565) | 6 |
Other | (6) | ||
Business disposal | 792 | ||
Tax (provision) benefit | 190 | (27) | (157) |
Total other comprehensive (loss) income | (189) | (696) | 1,663 |
Ending balance | (2,993) | (2,805) | (2,109) |
Pension/post-retirement obligations | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (157) | (359) | (748) |
Other comprehensive income (loss) before reclassification adjustments | (705) | 278 | 532 |
Amounts reclassified from AOCI | (26) | (22) | (8) |
Other | (6) | ||
Business disposal | (4) | ||
Tax (provision) benefit | 190 | (48) | (132) |
Total other comprehensive (loss) income | (541) | 203 | 389 |
Ending balance | (698) | (157) | (359) |
Unrealized gain (loss) on cash flow hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (3) | (10) | (31) |
Other comprehensive income (loss) before reclassification adjustments | (7) | 6 | 10 |
Amounts reclassified from AOCI | 4 | 3 | 17 |
Other | 0 | ||
Business disposal | 0 | ||
Tax (provision) benefit | 0 | (2) | (6) |
Total other comprehensive (loss) income | (2) | 7 | 21 |
Ending balance | (5) | (3) | (10) |
Net investment hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 213 | (35) | (34) |
Other comprehensive income (loss) before reclassification adjustments | (172) | 327 | (6) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Other | 0 | ||
Business disposal | 0 | ||
Tax (provision) benefit | 42 | (79) | 6 |
Total other comprehensive (loss) income | (130) | 248 | (1) |
Ending balance | 83 | 213 | (35) |
Unrealized gain (loss) on available for sale debt securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 1 | 96 | 0 |
Other comprehensive income (loss) before reclassification adjustments | (2) | 451 | 127 |
Amounts reclassified from AOCI | 0 | (577) | 0 |
Other | 0 | ||
Business disposal | 0 | ||
Tax (provision) benefit | 1 | 32 | (31) |
Total other comprehensive (loss) income | (2) | (95) | 96 |
Ending balance | 0 | 1 | 96 |
Share of OCI of equity method investments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (254) | (29) | (10) |
Other comprehensive income (loss) before reclassification adjustments | 6 | (326) | (24) |
Amounts reclassified from AOCI | 158 | 31 | 0 |
Other | 0 | ||
Business disposal | 0 | ||
Tax (provision) benefit | (42) | 70 | 6 |
Total other comprehensive (loss) income | 122 | (226) | (18) |
Ending balance | (132) | (254) | (29) |
Cumulative translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,605) | (1,772) | (2,948) |
Other comprehensive income (loss) before reclassification adjustments | 379 | (833) | 384 |
Amounts reclassified from AOCI | (14) | 0 | (3) |
Other | 0 | ||
Business disposal | 795 | ||
Tax (provision) benefit | 0 | 0 | 0 |
Total other comprehensive (loss) income | 364 | (833) | 1,176 |
Ending balance | $ (2,240) | $ (2,605) | $ (1,772) |
Segment reporting - narrative (
Segment reporting - narrative (Details) - segment | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | ||
Three Third-Party Payers | Revenues | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk (as a percent) | 33% | 31% | 33% |
Segment reporting - results of
Segment reporting - results of operations of reportable segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Sales | $ 35,422 | $ 35,415 | $ 34,862 | $ 33,382 | $ 32,449 | $ 32,597 | $ 33,756 | $ 33,901 | $ 139,081 | $ 132,703 | $ 132,509 |
Adjusted operating income | 3,871 | 5,133 | 5,117 | ||||||||
Depreciation and amortization | 2,257 | 1,990 | 1,923 | ||||||||
Capital expenditures | 2,117 | 1,734 | 1,312 | ||||||||
Certain legal and regulatory accruals and settlements | (7,466) | (768) | (75) | ||||||||
Transformational cost management | (1,181) | (763) | (417) | ||||||||
Acquisition-related amortization | (1,126) | (855) | (523) | ||||||||
Acquisition-related costs | (323) | (223) | (54) | ||||||||
Impairment of intangible assets | (299) | (783) | (49) | ||||||||
Adjustments to equity earnings in Cencora | (211) | (218) | (1,645) | ||||||||
LIFO provision | (187) | (135) | (13) | ||||||||
Store damage and inventory loss insurance recovery | 40 | 0 | 0 | ||||||||
Operating (loss) income | (6,882) | 1,387 | 2,342 | ||||||||
Reportable Segments | U.S. Retail Pharmacy | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Sales | 110,314 | 109,078 | 112,005 | ||||||||
Adjusted operating income | 3,689 | 5,029 | 5,019 | ||||||||
Depreciation and amortization | 1,362 | 1,415 | 1,513 | ||||||||
Capital expenditures | 1,421 | 1,207 | 1,030 | ||||||||
Reportable Segments | International | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Sales | 22,198 | 21,830 | 20,505 | ||||||||
Adjusted operating income | 935 | 726 | 466 | ||||||||
Depreciation and amortization | 328 | 355 | 399 | ||||||||
Capital expenditures | 308 | 295 | 243 | ||||||||
Reportable Segments | U.S. Healthcare | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Sales | 6,570 | 1,795 | 0 | ||||||||
Adjusted operating income | (566) | (370) | (57) | ||||||||
Depreciation and amortization | 560 | 211 | 1 | ||||||||
Capital expenditures | 375 | 218 | 34 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
Adjusted operating income | (187) | (251) | (311) | ||||||||
Depreciation and amortization | 8 | 9 | 10 | ||||||||
Capital expenditures | $ 13 | $ 15 | $ 5 |
Segment reporting - geographic
Segment reporting - geographic data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 35,422 | $ 35,415 | $ 34,862 | $ 33,382 | $ 32,449 | $ 32,597 | $ 33,756 | $ 33,901 | $ 139,081 | $ 132,703 | $ 132,509 |
Total long-lived assets | 33,254 | 32,988 | 33,254 | 32,988 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 116,883 | 110,873 | 112,005 | ||||||||
Total long-lived assets | 28,951 | 28,710 | 28,951 | 28,710 | |||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 8,984 | 8,894 | 8,298 | ||||||||
Total long-lived assets | 3,622 | 3,663 | 3,622 | 3,663 | |||||||
Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 11,211 | 11,178 | 10,472 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,003 | 1,757 | $ 1,734 | ||||||||
Total long-lived assets | $ 681 | $ 614 | $ 681 | $ 614 |
Sales (Details)
Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 35,422 | $ 35,415 | $ 34,862 | $ 33,382 | $ 32,449 | $ 32,597 | $ 33,756 | $ 33,901 | $ 139,081 | $ 132,703 | $ 132,509 |
Reportable Segments | U.S. Retail Pharmacy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 110,314 | 109,078 | 112,005 | ||||||||
Reportable Segments | U.S. Retail Pharmacy | Pharmacy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 82,118 | 80,434 | 84,892 | ||||||||
Reportable Segments | U.S. Retail Pharmacy | Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 28,195 | 28,643 | 27,113 | ||||||||
Reportable Segments | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 22,198 | 21,830 | 20,505 | ||||||||
Reportable Segments | International | Pharmacy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,664 | 3,727 | 3,808 | ||||||||
Reportable Segments | International | Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 7,324 | 6,924 | 6,225 | ||||||||
Reportable Segments | International | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 11,211 | 11,178 | 10,472 | ||||||||
Reportable Segments | U.S. Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 6,570 | $ 1,795 | $ 0 |
Related parties (Details)
Related parties (Details) - Related Party - Cencora - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Purchases, net | $ 65,173 | $ 62,174 | $ 62,513 |
Trade accounts payable, net of receivables | $ 7,814 | $ 6,915 | $ 6,589 |
Supplementary financial infor_3
Supplementary financial information - summary of quarterly results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Supplementary Financial Information [Abstract] | |||||||||||
Sales | $ 35,422 | $ 35,415 | $ 34,862 | $ 33,382 | $ 32,449 | $ 32,597 | $ 33,756 | $ 33,901 | $ 139,081 | $ 132,703 | $ 132,509 |
Gross profit | 6,475 | 6,588 | 7,055 | 6,953 | 6,410 | 6,572 | 7,708 | 7,574 | 27,072 | 28,265 | 28,067 |
Net (loss) earnings attributable to Walgreens Boots Alliance, Inc.: | |||||||||||
Net Income (Loss) Attributable to Parent, Total | $ (180) | $ 118 | $ 703 | $ (3,721) | $ (415) | $ 289 | $ 883 | $ 3,580 | $ (3,080) | $ 4,337 | $ 2,542 |
Earnings Per Share, Basic [Abstract] | |||||||||||
Total (in dollars per share) | $ (0.21) | $ 0.14 | $ 0.81 | $ (4.31) | $ (0.48) | $ 0.33 | $ 1.02 | $ 4.13 | $ (3.57) | $ 5.02 | $ 2.94 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Total (in dollars per share) | (0.21) | 0.14 | 0.81 | (4.31) | (0.48) | 0.33 | 1.02 | 4.13 | (3.57) | 5.01 | $ 2.93 |
Cash dividends declared per common share (in dollars per share) | $ 0.4800 | $ 0.4800 | $ 0.4800 | $ 0.4800 | $ 0.4800 | $ 0.4775 | $ 0.4775 | $ 0.4775 | $ 1.9200 | $ 1.9125 |