0001618921-22-000040 | 10-Q | XBRL Viewer | Walgreens Boots Alliance INC

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Cover Page	9 Months Ended
Cover Page	May 31, 2022 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2022
Document Transition Report	false
Entity File Number	001-36759
Entity Registrant Name	WALGREENS BOOTS ALLIANCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1758322
Entity Address, Address Line One	108 Wilmot Road
Entity Address, City or Town	Deerfield
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	847
Local Phone Number	315-3700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	864,256,651
Entity Central Index Key	0001618921
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock, $0.01 par value
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	WBA
Security Exchange Name	NASDAQ
3.600% Walgreens Boots Alliance, Inc. notes due 2025
Document Information [Line Items]
Title of 12(b) Security	3.600% Walgreens Boots Alliance, Inc. notes due 2025
Trading Symbol	WBA25
Security Exchange Name	NASDAQ
2.125% Walgreens Boots Alliance, Inc. notes due 2026
Document Information [Line Items]
Title of 12(b) Security	2.125% Walgreens Boots Alliance, Inc. notes due 2026
Trading Symbol	WBA26
Security Exchange Name	NASDAQ

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021
Current assets:
Cash and cash equivalents	$ 2,285	$ 559
Marketable securities	2,173	634
Accounts receivable, net	5,034	5,663
Inventories	8,520	8,159
Other current assets	859	800
Total current assets	18,872	15,814
Non-current assets:
Property, plant and equipment, net	11,789	12,247
Operating lease right-of-use assets	21,369	21,893
Goodwill	21,901	12,421
Intangible assets, net	11,583	9,936
Equity method investments (see Note 6)	5,777	6,987
Other non-current assets	1,469	1,987
Total non-current assets	73,887	65,471
Total assets	92,759	81,285
Current liabilities:
Short-term debt	2,787	1,305
Trade accounts payable (see Note 17)	11,794	11,136
Operating lease obligations	2,270	2,259
Accrued expenses and other liabilities	7,156	7,260
Income taxes	60	94
Total current liabilities	24,067	22,054
Non-current liabilities:
Long-term debt	10,670	7,675
Operating lease obligations	21,550	22,153
Deferred income taxes	1,578	1,850
Other non-current liabilities	3,737	3,413
Total non-current liabilities	37,535	35,091
Commitments and contingencies (see Note 11)
Total liabilities	61,602	57,145
Redeemable non-controlling interest	775	319
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 May 31, 2022 and August 31, 2021	12	12
Paid-in capital	11,029	10,988
Retained earnings	38,632	35,121
Accumulated other comprehensive loss	(2,724)	(2,109)
Treasury stock, at cost; 308,256,967 shares at May 31, 2022 and 307,139,982 shares at August 31, 2021	(20,696)	(20,593)
Total Walgreens Boots Alliance, Inc. shareholders’ equity	26,253	23,419
Non-controlling interests	4,129	402
Total equity	30,382	23,822
Total liabilities, redeemable non-controlling interest and equity	$ 92,759	$ 81,285

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	May 31, 2022	Aug. 31, 2021
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)	308,256,967	307,139,982

CONSOLIDATED CONDENSED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Adoption of new accounting standards	Common stock	Treasury stock amount	Paid-in capital	Accumulated other comprehensive income (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)	1,899						1,915		(16)
Other comprehensive (loss) income, net of tax	607					591			15
Dividends declared and distributions	(1,215)						(1,215)
Treasury stock purchases (in shares)			(3,000,000)
Treasury stock purchases	(110)			(110)
Employee stock purchase and option plans (in shares)			2,278,880
Employee stock purchase and option plans	41			75	(35)
Stock-based compensation	120				120
Business combination	120				120
Other	4				4		1
Ending balance (in shares) at May. 31, 2021			864,882,399
Ending balance at May. 31, 2021	22,596		$ 12	(20,610)	10,971	(3,180)	34,908		495
Beginning balance (in shares) at Feb. 28, 2021			864,394,418
Beginning balance at Feb. 28, 2021	21,625		$ 12	(20,626)	10,916	(3,306)	34,116		514
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	1,173						1,197		(24)
Other comprehensive (loss) income, net of tax	131					127			4
Dividends declared and distributions	(405)						(405)
Employee stock purchase and option plans (in shares)			487,981
Employee stock purchase and option plans	20			16	3
Stock-based compensation	50				50
Other	2				2
Ending balance (in shares) at May. 31, 2021			864,882,399
Ending balance at May. 31, 2021	22,596		$ 12	(20,610)	10,971	(3,180)	34,908		495
Beginning balance (in shares) at Aug. 31, 2021			865,373,636
Beginning 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)	4,611						4,752		(141)
Other comprehensive (loss) income, net of tax	(637)					(616)			(20)
Dividends declared and distributions	(1,253)						(1,241)		(12)
Treasury stock purchases (in shares)			(3,910,000)
Treasury stock purchases	(187)			(187)
Employee stock purchase and option plans (in shares)			2,793,015
Employee stock purchase and option plans	13			84	(71)
Stock-based compensation	185				118				67
Acquisition of non-controlling interests	(55)				62				(117)
Business combination	3,944								3,944
Redeemable non-controlling interests redemption price adjustments and other	(62)				(67)				5
Ending balance (in shares) at May. 31, 2022			864,256,651
Ending balance at May. 31, 2022	30,382		$ 12	(20,696)	11,029	(2,724)	38,632		4,129
Beginning balance (in shares) at Feb. 28, 2022			863,773,464
Beginning balance at Feb. 28, 2022	30,867		$ 12	(20,712)	10,973	(2,328)	38,757		4,166
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	241						289		(48)
Other comprehensive (loss) income, net of tax	(416)					(397)			(19)
Dividends declared and distributions	(420)						(413)		(6)
Employee stock purchase and option plans (in shares)			483,187
Employee stock purchase and option plans	11			16	(5)
Stock-based compensation	71				38				33
Acquisition of non-controlling interests	(1)								(1)
Redeemable non-controlling interests redemption price adjustments and other	28				23				5
Ending balance (in shares) at May. 31, 2022			864,256,651
Ending balance at May. 31, 2022	$ 30,382		$ 12	$ (20,696)	$ 11,029	$ (2,724)	$ 38,632		$ 4,129

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Income Statement [Abstract]
Sales	$ 32,597	$ 34,030	$ 100,254	$ 98,247
Cost of sales	26,025	26,877	78,399	77,684
Gross profit	6,572	7,153	21,855	20,564
Selling, general and administrative expenses	7,019	6,116	19,975	17,936
Equity earnings (loss) in AmerisourceBergen	127	97	330	(1,196)
Operating (loss) income	(320)	1,134	2,209	1,432
Other income	410	159	2,829	473
Earnings before interest and tax	90	1,294	5,038	1,905
Interest expense, net	108	545	295	817
(Loss) earnings before tax	(18)	749	4,743	1,088
Income tax (benefit) provision	(242)	246	205	81
Post tax earnings from other equity method investments	5	575	29	604
Net earnings from continuing operations	229	1,078	4,566	1,610
Net earnings from discontinued operations	0	95	0	289
Net earnings	229	1,173	4,566	1,899
Net (loss) attributable to non-controlling interests - continuing operations	(60)	(27)	(186)	(25)
Net earnings attributable to non-controlling interests - discontinued operations	0	2	0	9
Net earnings attributable to Walgreens Boots Alliance, Inc.	289	1,197	4,752	1,915
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	289	1,105	4,752	1,636
Discontinued operations	0	92	0	279
Total	$ 289	$ 1,197	$ 4,752	$ 1,915
Basic net earnings per common share:
Continuing operations (in dollars per share)	$ 0.33	$ 1.28	$ 5.50	$ 1.89
Discontinued operations (in dollars per share)	0	0.11	0	0.32
Total (in dollars per share)	0.33	1.38	5.50	2.21
Diluted net earnings per common share:
Continuing operations (in dollars per share)	0.33	1.27	5.49	1.89
Discontinued operations (in dollars per share)	0	0.11	0	0.32
Total (in dollars per share)	$ 0.33	$ 1.38	$ 5.49	$ 2.21
Weighted average common shares outstanding:
Basic (in shares)	864.0	864,700.0	864.4	864.7
Diluted (in shares)	865.3	867.0	866.0	866.2

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Comprehensive (loss) income:
Net earnings	$ 229	$ 1,173	$ 4,566	$ 1,899
Other comprehensive (loss) income, net of tax:
Pension/postretirement obligations	(4)	(1)	(17)	8
Unrealized gain on cash flow hedges	4	8	6	21
Net investment hedges	135	(23)	159	(79)
Available for sale debt securities	0	5	(96)	5
Share of other comprehensive (loss) income of equity method investments	(17)	(4)	(143)	16
Currency translation adjustments	(535)	146	(545)	636
Total other comprehensive (loss) income, net	(416)	131	(637)	607
Total comprehensive (loss) income, net	(187)	1,304	3,929	2,506
Comprehensive loss attributable to non-controlling interests	(79)	(19)	(206)	(1)
Comprehensive (loss) income attributable to Walgreens Boots Alliance, Inc.	$ (108)	$ 1,323	$ 4,135	$ 2,506

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	May 31, 2022	May 31, 2021
Cash flows from operating activities:
Net earnings	$ 4,566	$ 1,899
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,502	1,455
Deferred income taxes	(168)	(210)
Stock compensation expense	266	120
Equity (earnings) loss from equity method investments	(359)	577
Loss on early extinguishment of debt	4	419
Gain on previously held investment interests	(2,576)	0
Gain on sale of equity method investments	(421)	(290)
Impairment of equity method investments and investments in debt and equity securities	233	0
Other	(199)	(141)
Changes in operating assets and liabilities:
Accounts receivable, net	725	(897)
Inventories	(510)	71
Other current assets	(58)	18
Trade accounts payable	767	927
Accrued expenses and other liabilities	(362)	428
Income taxes	82	54
Other non-current assets and liabilities	320	(120)
Net cash provided by operating activities	3,813	4,310
Cash flows from investing activities:
Additions to property, plant and equipment	(1,241)	(1,001)
Proceeds from sale-leaseback transactions	809	662
Proceeds from sale of other assets	976	406
Business, investment and asset acquisitions, net of cash acquired	(2,040)	(1,394)
Other	233	(14)
Net cash used for investing activities	(1,262)	(1,341)
Cash flows from financing activities:
Net change in short-term debt with maturities of 3 months or less	(10)	1,556
Proceeds from debt	11,944	12,720
Payments of debt	(7,350)	(11,050)
Acquisition of non-controlling interests	(2,108)	0
Stock purchases	(187)	(110)
Proceeds related to employee stock plans, net	13	41
Cash dividends paid	(1,251)	(1,212)
Early debt extinguishment	(458)	(3,687)
Other	160	(114)
Net cash provided by (used for) financing activities	753	(1,856)
Effect of exchange rate changes on cash, cash equivalents, marketable securities and restricted cash	(33)	(55)
Changes in cash, cash equivalents, marketable securities and restricted cash:
Net increase in cash, cash equivalents, marketable securities and restricted cash	3,270	1,058
Cash, cash equivalents, marketable securities and restricted cash at beginning of period	1,270	746
Cash, cash equivalents, marketable securities and restricted cash at end of period	$ 4,541	$ 1,803

Accounting policies	9 Months Ended
Accounting policies	May 31, 2022
Accounting Policies [Abstract]
Accounting policies	Note 1. Accounting policies Basis of presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the “Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. The Company uses the equity method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2021, as amended by Form 10-K/A for the fiscal year ended August 31, 2021 filed on November 24, 2021. The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company bases its estimates on the information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances, including estimates of the impact of COVID-19. The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous factors discussed throughout this Quarterly Report on Form 10-Q including, but not limited to, the severity and duration of COVID-19, the extent to which it will impact our customers, team members, suppliers, vendors, business partners and distribution channels. The Company assessed certain accounting matters that require consideration of estimates and assumptions in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of May 31, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill, intangible and other long-lived assets, including operating lease right-of-use assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. In the opinion of management, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments necessary to present a fair statement of the results for such interim periods. The impact of COVID-19, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payor and customer relationships and terms, strategic transactions including acquisitions, dispositions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. 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 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 all prior periods. Effective as of the first quarter of fiscal year 2022, the Company is aligned into three reportable segments: United States, International and Walgreens Health. Unless otherwise specified, disclosures in these Consolidated Condensed Financial Statements reflect continuing operations only. See Note 2. Discontinued operations and Note 15. Segment reporting for further information. Certain amounts in the Consolidated Condensed Financial Statements and associated notes may not add due to rounding. Percentages have been calculated using unrounded amounts for all periods presented. Note 18. New accounting pronouncements Adoption of new accounting pronouncements Receivables - nonrefundable fees and others In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other. This ASU clarifies the accounting for the amortization period for certain purchased callable debt securities held at a premium by giving consideration to securities which have multiple call dates. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Investments — equity securities; Investments — equity method and joint ventures; Derivatives and hedging In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this ASU clarify the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The ASU is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Income taxes - simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Effects of reference rate reform on financial reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable, or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to the above ASU to clarify certain optional expedients in Topic 848. The Company adopted the new standard effective September 1, 2021, and the adoption did not have a material impact on the Company’s results of operations, cash flows or financial position. 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 fiscal years beginning after December 15, 2022 (fiscal year 2024). The Company is evaluating the effect of adopting this new accounting guidance. 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. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal year 2023). The Company is evaluating the effect of adopting this new accounting guidance.

Discontinued operations

9 Months Ended

May 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

Note 2. 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 AmerisourceBergen common stock.

As of August 31, 2021, Other current assets included a $98 million receivable for purchase price consideration due from

AmerisourceBergen that was subject to change upon the finalization of net working capital adjustments. During the three months ended February 28, 2022, the Company reduced the receivable by $38 million with a corresponding charge in Other income within the Consolidated Condensed Statements of Earnings upon finalizing these adjustments with AmerisourceBergen.

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 periods were as follows (in millions):



	Three months ended May 31, 2021		Nine months ended May 31, 2021
Sales	$	5,500	$	16,070
Cost of sales	4,956		14,486
Gross profit	544		1,584
Selling, general and administrative expense	394		1,211
Operating income from discontinued operations	150		373
Other expense	(2)		(7)
Interest expense, net	(13)		(23)
Earnings before income tax – discontinued operations	135		342
Income tax provision	44		68
Post tax earnings from other equity method investments	4		15
Net earnings from discontinued operations	$	95	$	289

Sales in prior periods from the Disposal Group to the Company's continuing operations are not eliminated and aggregate to (in millions):



	Three months ended May 31, 2021		Nine months ended May 31, 2021
Sales	$	471	$	1,385

Cash flows from operating and investing activities for discontinued operations in prior periods are (in millions):



	Nine months ended May 31, 2021
Cash used for operating activities - discontinued operations	$	(132)
Cash used for investing activities - discontinued operations	$	(58)

See Note 17. Related parties, to the Consolidated Condensed Financial Statements for more information on the Company's transactions and continuing involvement with AmerisourceBergen.

Acquisitions and other investments

9 Months Ended

May 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and other investments

Note 3. Acquisitions and other investments

VillageMD

On November 24, 2021, the Company completed the acquisition of Village Practice Management Company, LLC (“VillageMD”). 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 comprises 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 has an option to prepay, and VillageMD has an option to require redemption of, the promissory note at any time. The promissory note is eliminated in consolidation within the Consolidated Condensed Balance Sheets.

The Company accounted for this acquisition as a business combination resulting in consolidation of VillageMD within the Walgreens Health segment in its financial statements. A non-controlling interest was recognized at fair value. During the three and nine months ended May 31, 2022, the Company recorded certain measurement period adjustments based on additional information primarily to certain assets and liabilities which did not have a material impact on goodwill. As of May 31, 2022, the Company had not completed the analysis to assign fair values to all tangible and intangible assets acquired. As such, the preliminary purchase price allocation will be subject to further refinement and may change. These changes may relate to finalization of the fair value of the purchase consideration and the allocation of purchase consideration to all tangible and intangible assets acquired and identified.

As a result of this acquisition, in the three months ended November 30, 2021, the Company recognized a pre-tax gain in Other income in the Consolidated Condensed 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 in the Consolidated Condensed 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 Condensed Balance Sheets.

The following table summarizes the consideration for the acquisition and the preliminary amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions):


Purchase Price Allocation:
Total 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	1,621
Liabilities	(245)
Total identifiable net assets	$	2,010



Goodwill	$	8,041

1.Comprises 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.

The goodwill represents anticipated future growth and expansion opportunities into new markets. Pro forma sales and 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.

Shields acquisition

On October 29, 2021, the Company completed the acquisition of Shields Health Solutions Parent, LLC (“Shields”). 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 Walgreens Health segment in its financial statements. A non-controlling interest was recognized at fair value. Under the terms of the transaction agreements, the Company has an option to acquire the remaining equity interests of Shields in the future. Shields’ other equity holders will also have an option to require the Company to purchase the remaining equity interests. Considering the contractual terms related to the non-controlling interest, it is classified as redeemable non-controlling interest in the Consolidated Condensed Balance Sheets. As of May 31, 2022, the Company had not completed the analysis to assign fair values to all tangible and intangible assets acquired. As such, the preliminary purchase price allocation will be subject to further refinement and may result in changes. These changes may relate to finalization of the fair value of the purchase consideration and the allocation of purchase consideration to all tangible and intangible assets acquired and identified.

As a result of this acquisition, in the three months ended November 30, 2021, 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 in the Consolidated Condensed Statements of Earnings.

The following table summarizes the consideration for the acquisition and the preliminary amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions):


Purchase Price Allocation:
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	1,060
Liabilities	(528)
Total identifiable net assets	$	616

Goodwill	$	1,457

The goodwill represents anticipated future growth and expansion opportunities into new healthcare offerings. Pro forma sales and 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.

See Note 15. Segment reporting and Note 16. Sales for further information.

Other acquisitions and investments

The Company acquired certain prescription files and related pharmacy inventory primarily in the U.S. for the aggregate purchase price of $36 million and $153 million during the three and nine months ended May 31, 2022, respectively, and $19 million and $85 million during the three and nine months ended May 31, 2021, respectively.

Exit and disposal activities

9 Months Ended

May 31, 2022

Restructuring and Related Activities [Abstract]

Exit and disposal activities

Note 4. 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 year 2022 (the “Transformational Cost Management Program”). The Company achieved this goal at the end of fiscal year 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. During the three months ended May 31, 2022, the Company increased its annual cost savings target from $3.3 billion to $3.5 billion by the end of fiscal 2024. The Company is currently on track to achieve the savings target.

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 on the United States 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. As a result of the expanded program, the Company plans to reduce its presence by up to 150 Boots stores in the UK and up to 150 stores in the United States over the next three years which are incremental to the previously planned reductions of approximately 200 Boots stores in the UK and approximately 250 stores in the U.S.

The Company currently estimates that the Transformational Cost Management Program will result in cumulative pre-tax charges to its GAAP financial results of approximately $3.6 billion to $3.9 billion, of which $3.3 billion to $3.6 billion are expected to be recorded as exit and disposal activities. In addition to these impacts, as a result of the actions related to store closures taken under the Transformational Cost Management Program, the Company recorded $508 million of 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 May 31, 2022, the Company has recognized cumulative pre-tax charges to its financial results in accordance with GAAP of $1.7 billion, which were primarily recorded within selling, general and administrative expenses. These charges included $467 million related to lease obligations and other real estate costs, $357 million in asset impairments, $679 million in employee severance and business transition costs and $183 million of information technology transformation and other exit costs.

Costs related to exit and disposal activities under the Transformational Cost Management Program for the three and nine months ended May 31, 2022 and 2021 were as follows (in millions):


Three months ended May 31, 2022	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	16	$	3	$	—	$	18
Asset impairments	48		14		—		61
Employee severance and business transition costs	53		22		11		86
Information technology transformation and other exit costs	1		6		—		7
Total pre-tax exit and disposal charges	$	117	$	45	$	11	$	173


Nine months ended May 31, 2022	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	107	$	6	$	—	$	113
Asset impairments	64		42		—		105
Employee severance and business transition costs	110		32		25		166
Information technology transformation and other exit costs	3		18		—		20
Total pre-tax exit and disposal charges	$	283	$	97	$	25	$	404


Three months ended May 31, 2021	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	15	$	6	$	—	$	21
Asset impairments	5		9		—		14
Employee severance and business transition costs	(19)		2		14		(2)
Information technology transformation and other exit costs	1		10		—		11
Total pre-tax exit and disposal charges	$	2	$	27	$	14	$	44


Nine months ended May 31, 2021	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	56	$	6	$	—	$	62
Asset impairments	9		10		—		19
Employee severance and business transition costs	92		36		44		172
Information technology transformation and other exit costs	14		11		1		26
Total pre-tax exit and disposal charges	$	172	$	63	$	44	$	279

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	113		105		166		20		404
Payments	(60)		—		(145)		(24)		(229)
Other	(52)		(105)		(6)		2		(161)

Balance at May 31, 2022	$	18	$	—	$	92	$	20	$	129

Leases

9 Months Ended

May 31, 2022

Leases [Abstract]

Leases

Note 5. Leases

The Company leases certain retail stores, clinics, warehouses, distribution centers, office space, land, and equipment. For the majority of leases in the U.S., the initial lease term is typically 15 to 25 years, followed by additional terms containing renewal options typically at five-year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options. Lease commencement is the date the Company has the right to control the property. The Company recognizes operating lease rent expense on a straight-line basis over the term of the lease. In addition to minimum fixed rentals, some leases provide for contingent rentals based upon a portion of sales.

Supplemental Balance sheet information related to leases were as follows (in millions):


Balance sheet supplemental information:	May 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,369	$	21,893

Operating lease obligations - current	2,270		2,259
Operating lease obligations - non-current	21,550		22,153
Total operating lease obligations	$	23,820	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	664	$	725
Lease obligations included in:
Accrued expenses and other liabilities	37		37
Other non-current liabilities	919		974
Total finance lease obligations	$	956	$	1,010

Supplemental Statement of Earnings information related to leases were as follows (in millions):


	Three months ended May 31,				Nine months ended May 31,
Statement of Earnings supplemental information:	2022		2021		2022		2021
Operating lease cost
Fixed	$	811	$	807	$	2,431	$	2,406
Variable 1	198		157		600		477
Finance lease cost
Amortization	$	11	$	11	$	33	$	33
Interest	13		13		38		39

Sublease income	$	24	$	21	$	76	$	62
Impairment of right-of-use assets	11		8		82		23

Gain on sale-leaseback 2	175		85		410		273

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.

2Recorded within selling, general and administrative expenses.

Other supplemental information related to leases were as follows (in millions):


	Nine months ended May 31,
Other supplemental information:		2022		2021

Cash paid for amounts included in the measurement of lease obligations:
Operating cash outflows from operating leases		$	2,515	$	2,562
Operating cash outflows from finance leases		35		36
Financing cash outflows from finance leases		32		31
Total		$	2,582	$	2,629

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		$	1,380	$	2,011
Finance leases		11		—
Total		$	1,391	$	2,011

Weighted average lease terms and discount rates for real estate leases were as follows:


Weighted average terms and discount rates:	May 31, 2022		August 31, 2021
Weighted average remaining lease term in years:
Operating leases	10.0		10.3
Finance leases	19.2		20.2

Weighted average discount rate:
Operating leases	4.77	%	4.77	%
Finance leases	5.18	%	5.18	%

The aggregate future lease payments for operating and finance leases as of May 31, 2022 were as follows (in millions):


Future lease payments:
Fiscal year	Finance lease		Operating lease
2022 (Remaining period)	$	22	$	867
2023	88		3,399
2024	88		3,295
2025	87		3,185
2026	87		3,081
2027	87		2,977
Later	1,052		13,412
Total undiscounted minimum lease payments	$	1,510	$	30,216
Less: Present value discount	(554)		(6,396)
Lease liability	$	956	$	23,820

Leases

Note 5. Leases

Supplemental Balance sheet information related to leases were as follows (in millions):


Balance sheet supplemental information:	May 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,369	$	21,893

Operating lease obligations - current	2,270		2,259
Operating lease obligations - non-current	21,550		22,153
Total operating lease obligations	$	23,820	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	664	$	725
Lease obligations included in:
Accrued expenses and other liabilities	37		37
Other non-current liabilities	919		974
Total finance lease obligations	$	956	$	1,010

Supplemental Statement of Earnings information related to leases were as follows (in millions):


	Three months ended May 31,				Nine months ended May 31,
Statement of Earnings supplemental information:	2022		2021		2022		2021
Operating lease cost
Fixed	$	811	$	807	$	2,431	$	2,406
Variable 1	198		157		600		477
Finance lease cost
Amortization	$	11	$	11	$	33	$	33
Interest	13		13		38		39

Sublease income	$	24	$	21	$	76	$	62
Impairment of right-of-use assets	11		8		82		23

Gain on sale-leaseback 2	175		85		410		273

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.

2Recorded within selling, general and administrative expenses.

Other supplemental information related to leases were as follows (in millions):


	Nine months ended May 31,
Other supplemental information:		2022		2021

Cash paid for amounts included in the measurement of lease obligations:
Operating cash outflows from operating leases		$	2,515	$	2,562
Operating cash outflows from finance leases		35		36
Financing cash outflows from finance leases		32		31
Total		$	2,582	$	2,629

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		$	1,380	$	2,011
Finance leases		11		—
Total		$	1,391	$	2,011

Weighted average lease terms and discount rates for real estate leases were as follows:


Weighted average terms and discount rates:	May 31, 2022		August 31, 2021
Weighted average remaining lease term in years:
Operating leases	10.0		10.3
Finance leases	19.2		20.2

Weighted average discount rate:
Operating leases	4.77	%	4.77	%
Finance leases	5.18	%	5.18	%

The aggregate future lease payments for operating and finance leases as of May 31, 2022 were as follows (in millions):


Future lease payments:
Fiscal year	Finance lease		Operating lease
2022 (Remaining period)	$	22	$	867
2023	88		3,399
2024	88		3,295
2025	87		3,185
2026	87		3,081
2027	87		2,977
Later	1,052		13,412
Total undiscounted minimum lease payments	$	1,510	$	30,216
Less: Present value discount	(554)		(6,396)
Lease liability	$	956	$	23,820

Equity method investments

9 Months Ended

May 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity method investments

Note 6. Equity method investments

Equity method investments were as follows (in millions, except percentages):


	May 31, 2022			August 31, 2021
	Carrying value		Ownership percentage	Carrying value		Ownership percentage
AmerisourceBergen	$	3,965	25%	$	4,407	28%
Others	1,811		8% - 50%	2,580		8% - 50%
Total	$	5,777		$	6,987

AmerisourceBergen investment

On May 11, 2022, the Company sold 6.0 million shares of AmerisourceBergen common stock pursuant to Rule 144 at a price of $150 per share for a total consideration of $900 million, decreasing the Company's ownership of AmerisourceBergen’s common stock from 58,854,867 shares, held at August 31, 2021 to 52,854,867 shares held as of May 31, 2022. The transaction resulted in the Company recording a pre-tax gain of $424 million in Other income in the Consolidated Condensed Statements of Earnings, including a $25 million loss reclassified from within Accumulated other comprehensive income in the Consolidated Condensed Balance Sheets. As of May 31, 2022, the Company holds approximately 25.2% of AmerisourceBergen outstanding common stock, based on the share count publicly reported by AmerisourceBergen in its most recent Quarterly Report on Form 10-Q.

The Company accounts for its equity investment in AmerisourceBergen using the equity method of accounting, with the net earnings (loss) attributable to the Company’s investment being classified in Operating income within the United States segment. Due to the timing and availability of financial information of AmerisourceBergen, the Company accounts for this equity method investment on a financial reporting lag of two months. Equity earnings (loss) from AmerisourceBergen are reported as a separate line in the Consolidated Condensed Statements of Earnings.

During the nine months ended May 31, 2022 and 2021, the Company recognized equity income of $330 million and equity losses of $1.2 billion in AmerisourceBergen, respectively. The equity losses for the period ended May 31, 2021 were primarily due to AmerisourceBergen'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 AmerisourceBergen common stock at May 31, 2022 and August 31, 2021 was $8.2 billion and $7.2 billion, respectively. As of May 31, 2022 the carrying value of the Company’s investment in AmerisourceBergen exceeded its proportionate share of the net assets of AmerisourceBergen by $3.8 billion. This premium of $3.8 billion was recognized as part of the carrying value in the Company’s equity investment in AmerisourceBergen. The difference was primarily related to goodwill and the fair value of AmerisourceBergen intangible assets.

Other investments

The Company’s other equity method investments primarily include its U.S. investments in Option Care Health, through its subsidiary HC Group Holdings I, LLC, and BrightSpring Health Services, and the Company’s investments in China in Sinopharm Medicine Holding Guoda Drugstores Co., Ltd, Guangzhou Pharmaceuticals Corporation, and Nanjing Pharmaceutical Company Limited.

The Company recorded $5 million and $575 million of post-tax equity earnings from other equity method investments for the three months ended May 31, 2022 and 2021, respectively. The Company recorded $29 million and $604 million of post-tax equity earnings from other equity method investments for the nine months ended May 31, 2022 and 2021, respectively.

During the three months ended February 28, 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.

During the three months ended November 30, 2021, the Company acquired majority equity interests in VillageMD and Shields. 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 in the Consolidated Condensed Statements of Earnings. As a result of these transactions, the Company now consolidates VillageMD and Shields within the Walgreens Health segment in its financial statements.

During the three and nine months ended May 31, 2021, the Company recorded gains of $98 million and $290 million, respectively, in Other income due to the partial sale of ownership interest in Option Care Health by the Company's then equity method investee HC Group Holdings I, LLC. During the three months ended May 31, 2021, as a result of these sales HC Group Holdings I, LLC 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 I, LLC recognized a gain of $1.2 billion and the Company recorded its share of equity earnings in HC Group Holdings I, LLC of $576 million in Post-tax earnings from other equity method investments.

Summarized financial information

Summarized financial information for the Company’s equity method investments in aggregate is as follows:

Statements of earnings (loss) (in millions)


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Sales	$	65,085	$	55,890	$	200,628	$	171,417
Gross Profit	3,308		2,558		10,117		7,647
Net earnings (loss)	602		489		1,474		(3,841)
Share of earnings (loss) from equity method investments	132		672		359		(591)

The summarized financial information for equity method investments has been included on an aggregated basis for all investments as reported for the three and nine months ended May 31, 2022 and 2021, respectively.

Goodwill and other intangible assets

9 Months Ended

May 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets

Note 7. 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, 2021 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 18% to approximately 195%. The Boots reporting unit's fair value was in excess of its carrying value by approximately 18%, compared to a nominal amount as of June 1, 2020. The Other international reporting unit's fair value was in excess of its carrying value by approximately 29%. As of May 31, 2022 and August 31, 2021, the carrying value of goodwill for the Boots reporting unit was $956 million and $1.1 billion, respectively. As of May 31, 2022 and August 31, 2021, the carrying value of goodwill for the Other international reporting unit was $372 million and $381 million, respectively.

As of June 1, 2021, the fair values of indefinite-lived intangibles within the Boots reporting unit exceeded their carrying value amounts ranging from approximately 5% to approximately 27%. As of May 31, 2022 and August 31, 2021, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $6.7 billion and $7.3 billion, respectively.

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, as well as how such performance may be impacted by COVID-19. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions, including the impact of COVID-19, could have a significant impact on either the fair value of the reporting units and indefinite-lived intangibles, the amount of any goodwill and indefinite-lived intangible impairment charges, or both. These estimates can be affected by a number of factors including, but not limited to, the impact of COVID-19, its severity, duration and its impact on global economies, general economic conditions, as well as our profitability. The Company will continue to monitor these potential impacts, including the impact of COVID-19 and economic, industry and market trends, and the impact these may have on the Boots and Other international reporting units.

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):


Goodwill roll forward:	United States		International		Walgreens Health		Walgreens Boots Alliance, Inc.
August 31, 2021	$	10,947	$	1,474	$	—	$	12,421
Acquisitions	—		—		9,586		9,586
Currency translation adjustments	—		(106)		—		(106)
May 31, 2022	$	10,947	$	1,368	$	9,586	$	21,901

The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):


Intangible assets	May 31, 2022		August 31, 2021
Gross amortizable intangible assets
Customer relationships and loyalty card holders 1	$	4,364	$	3,522
Primary care provider network	1,244		—
Trade names and trademarks	685		361
Developed technology 2	355		156
Purchasing and payor contracts	15		317
Others 2	78		65
Total gross amortizable intangible assets	$	6,741	$	4,421

Accumulated amortization
Customer relationships and loyalty card holders 1	$	1,487	$	1,335
Primary care provider network	43		—
Trade names and trademarks	244		226
Developed technology 2	43		8
Purchasing and payor contracts	3		227
Others 2	33		29
Total accumulated amortization	1,853		1,826
Total amortizable intangible assets, net	$	4,888	$	2,595

Indefinite-lived intangible assets
Trade names and trademarks	$	4,835	$	5,276
Pharmacy licenses	1,860		2,066
Total indefinite-lived intangible assets	$	6,695	$	7,342

Total intangible assets, net	$	11,583	$	9,936

1Includes purchased prescription files.

2Includes certain reclassifications to conform to the current period presentation.

Amortization expense for intangible assets was $148 million and $488 million for the three and nine months ended May 31, 2022, respectively, and $156 million and $363 million for the three and nine months ended May 31, 2021, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at May 31, 2022 is as follows (in millions):


	2022 (Remaining period)		2023		2024		2025		2026		2027
Estimated annual amortization expense	$	151	$	571	$	551	$	518	$	497	$	434

Debt

9 Months Ended

May 31, 2022

Debt Disclosure [Abstract]

Debt

Note 8. Debt

Debt carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt is translated using the spot rates as of the balance sheet date. Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted):


	May 31, 2022		August 31, 2021
Short-term debt

Credit facilities
Unsecured credit facility due 2023	1,998		—
$8 billion note issuance 1
3.300% unsecured notes due 2021 2	—		1,250
$4 billion note issuance 4
3.100% unsecured notes due 2022	731		—
Other 3	57		56
Total short-term debt	$	2,787	$	1,305

Long-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,997	$	—
Unsecured credit facility due 2024	998		—
$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		497
4.100% unsecured notes due 2050	792		792
$6 billion note issuance 1
3.450% unsecured notes due 2026	1,443		1,442
4.650% unsecured notes due 2046	318		318
$8 billion note issuance 1
3.800% unsecured notes due 2024	1,154		1,154
4.500% unsecured notes due 2034	301		301
4.800% unsecured notes due 2044	868		868
£700 million note issuance 1
3.600% unsecured Pound Sterling notes due 2025	374		408
€750 million note issuance 1
2.125% unsecured Euro notes due 2026	790		873
$4 billion note issuance 4
3.100% unsecured notes due 2022	—		731
4.400% unsecured notes due 2042	263		263
Other 3	27		29
Total long-term debt, less current portion	$	10,670	$	7,675

1Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding.

2On September 18, 2021, the Company redeemed in full the $1.25 billion aggregate principal amount outstanding of its 3.300% unsecured notes due 2021 issued by the Company on November 18, 2014.

3Other debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies.

4Notes 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. On June 3, 2022, a notice of redemption was given to holders of the 3.100% notes due 2022. As a result, on July 5, 2022, the notes with aggregate principal amount of $731 million will be redeemed in full. See Note 20. Subsequent events for further information.

$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

November 15, 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 is for the purpose of funding the consideration due in respect of the purchase of an increased equity stake in VillageMD, and paying fees and expenses related to the foregoing, and the remainder can be used for general corporate purposes. The maturity date on the 364-day loan, the two-year loan and the three-year loan is, in each case, the earlier of the date that is 364 days, two years and three years from the date of the first drawing under each facility and February 14, 2023, February 15, 2024 and February 15, 2025 respectively. As of May 31, 2022, there were $5 billion in borrowings outstanding under the November 2021 DDTL.

Borrowings under the November 2021 DDTL bear interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate, eurocurrency rate or, from and after the date that daily Secured Overnight Financing Rate (“SOFR”) becomes available under the November 2021 DDTL, the daily SOFR rate, in each case, plus an applicable margin. For the 364-day tranche, the applicable margin is (i) prior to the six month anniversary of the Margin Trigger Date, as defined in the November 2021 DDTL (the “Margin Trigger Date”), 0.70% in the case of eurocurrency rate loans and daily SOFR loans, and 0.00% in the case of alternate base rate loans and (ii) on and after the six month anniversary of the Margin Trigger Date, 0.75% in the case of eurocurrency rate loans and daily SOFR loans, and 0.00% in the case of alternate base rate loans. For the 2-year and 3-year tranche, the applicable margin is 0.85% and 1.00%, respectively, in the case of eurocurrency rate loans and daily SOFR loans, and 0.00% in the case of alternate base rate loans.

December 23, 2020, Revolving Credit Agreement

On December 23, 2020, the Company entered into a $1.25 billion senior unsecured 364-day revolving credit facility and a $2.25 billion senior unsecured 18-month revolving credit facility, with a swing line subfacility commitment amount of $350 million, with designated borrowers from time to time party thereto and lenders from time to time party thereto (the “2020 Revolving Credit Agreement”). The 364-day facility’s termination date is the earlier of (i) 364 days from December 23, 2020, the effective date (subject to the extension thereof pursuant to the 2020 Revolving Credit Agreement) and (ii) the date of termination in whole of the aggregate amount of the revolving commitments under the 364-day facility pursuant to the 2020 Revolving Credit Agreement. The 18-month facility’s termination date is the earlier of (i) 18 months from the effective date (subject to the extension thereof pursuant to the 2020 Revolving Credit Agreement) and (ii) the date of termination in whole of the aggregate amount of the revolving commitments under the 18-Month Facility pursuant to the 2020 Revolving Credit Agreement. As of May 31, 2022, commitments under the 364-day facility had expired and there were no borrowings outstanding under the 18-month revolving credit facility. On June 17, 2022, the Company terminated the 2020 Revolving Credit Agreement. See Note 20. Subsequent events for further information.

August 2018 Revolving Credit Agreement

On August 29, 2018, the Company entered into a revolving credit agreement (the “August 2018 Revolving Credit Agreement”) with the lenders and letter of credit issuers from time-to-time party thereto. The August 2018 Revolving Credit Agreement is an unsecured revolving credit facility with aggregate commitment in the amount of $3.5 billion, with a letter of credit subfacility commitment amount of $500 million. The facility termination date is the earlier of (a) August 29, 2023, subject to extension thereof pursuant to the August 2018 Revolving Credit Agreement, and (b) the date of termination in whole of the aggregate amount of the revolving commitments pursuant to the August 2018 Revolving Credit Agreement. As of May 31, 2022, there were no borrowings outstanding under the August 2018 Revolving Credit Agreement. On June 17, 2022, the Company terminated the August 2018 Revolving Credit Agreement. See Note 20. Subsequent events for further information.

Debt covenants

Each of the Company’s credit facilities described above contain a covenant to maintain, as of the last day of each fiscal quarter, a ratio of consolidated debt to total capitalization not to exceed 0.60:1.00, subject to increase in certain circumstances set forth in the applicable credit agreement. The credit facilities also contain various other customary covenants. As of May 31, 2022, the Company was in compliance with all such applicable covenants.

Commercial paper

The Company periodically borrows under its commercial paper program and may borrow under it in future periods. The Company had average daily U.S. commercial paper outstanding of $1.2 billion and $2.3 billion at a weighted average interest rate of 0.55% and 0.47% for the nine months ended May 31, 2022 and 2021, respectively.

A subsidiary of the Company had average daily commercial paper outstanding, which was issued under the Joint HM Treasury and Bank of England's COVID Corporate Financing Facility commercial paper program, of £300 million, or approximately $418 million at a weighted average interest rate of 0.43% for the six months ended February 28, 2021. The subsidiary of the Company repaid the commercial paper issued under the Joint HM Treasury and Bank of England's COVID Corporate Financing Facility commercial paper program on May 14, 2021.

Interest

Interest paid by the Company was $336 million and $889 million for the nine months ended May 31, 2022 and 2021, respectively. Interest paid for the nine months ended May 31, 2022 and 2021 included charges on early extinguishment of debt of $4 million and $387 million, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
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-Subparagraph (g)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Financial instruments

9 Months Ended

May 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial instruments

Note 9. 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 notional amounts and fair value of derivative instruments outstanding were as follows (in millions):


May 31, 2022	Notional		Fair Value		Location in Consolidated Condensed Balance Sheets
Derivatives designated as hedges:
Foreign currency forwards	$	537	$	21	Other current assets
Cross currency interest rate swaps	150		5		Other current assets
Cross currency interest rate swaps	750		39		Other non-current assets
Foreign currency forwards	9		1		Other non-current assets
Foreign currency forwards	189		3		Other current liabilities


Derivatives not designated as hedges:
Foreign currency forwards	$	3,070	$	188	Other current assets
Total return swap	232		7		Other current assets
Foreign currency forwards	1,188		17		Other current liabilities


August 31, 2021	Notional		Fair Value		Location in Consolidated Condensed Balance Sheets
Derivatives designated as hedges:
Foreign currency forwards	$	575	$	7	Other current assets
Cross currency interest rate swaps	155		1		Other non-current assets
Foreign currency forwards	6		—		Other non-current assets
Foreign currency forwards	31		1		Other current liabilities
Cross currency interest rate swaps	109		9		Other current liabilities
Cross currency interest rate swaps	801		23		Other non-current liabilities
Foreign currency forwards	23		1		Other non-current liabilities
Derivatives not designated as hedges:
Foreign currency forwards	$	3,636	$	38	Other current assets
Total return swap	224		2		Other current assets
Foreign currency forwards	808		3		Other current liabilities
Total return swap	37		—		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, a component of Accumulated other comprehensive income (loss) in the Consolidated Condensed Balance Sheets.

Cash flow hedges

The Company uses interest rate swaps to hedge the variability in forecasted cash flows of certain floating-rate debt. For qualifying cash flow hedges, changes in the fair value of the derivatives are recorded in Unrealized gain (loss) on cash flow hedges, a component of Accumulated other comprehensive income (loss) in the Consolidated Condensed 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. The Company also utilizes total return swaps to economically hedge variability in compensation charges related to certain deferred compensation obligations. The income (expense) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions):


		Three months ended May 31,				Nine months ended May 31,
	Location in Consolidated Condensed Statements of Earnings	2022		2021		2022		2021
Foreign currency forwards	Selling, general and administrative expenses 1	$	—	$	(53)	$	—	$	(177)
Total return swap	Selling, general and administrative expenses	(14)		20		(24)		48
Foreign currency forwards	Other income 1	319		(5)		322		(6)

1.In the nine months ended May 31, 2022, certain expenses related to derivative instruments used as economic hedges, were presented as Other income within the Consolidated Condensed Statements of Earnings, whereas these expenses were recorded within Selling, general, and administrative expenses within the Consolidated Condensed Statements of Earnings in prior periods.

Derivatives credit risk

Counterparties to derivative financial instruments expose the Company to credit-related losses in the event of counterparty nonperformance, and the Company regularly monitors the credit worthiness of each counterparty.

Derivatives offsetting

The Company does not offset the fair value amounts of derivative instruments subject to master netting agreements in the Consolidated Condensed Balance Sheets.

Fair value measurements

9 Months Ended

May 31, 2022

Fair Value Disclosures [Abstract]

Fair value measurements

Note 10. Fair value measurements

The Company measures certain assets and liabilities in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, which defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In addition, it establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2 - Observable inputs other than quoted prices in active markets.

Level 3 - Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):


	May 31, 2022		Level 1		Level 2		Level 3
Assets:
Money market funds 1	$	2,173	$	2,173	$	—	$	—

Foreign currency forwards 2	210		—		210		—
Cross currency interest rate swaps 3	44		—		44		—

Total return swaps	7		—		7		—


Investments in equity securities 4	2		2		—		—
Liabilities:


Foreign currency forwards 2	$	20	$	—	$	20	$	—


	August 31, 2021		Level 1		Level 2		Level 3
Assets:
Money market funds 1	$	634	$	634	$	—	$	—
Investments in debt securities 5	663		—		—		663
Foreign currency forwards 2	46		—		46		—
Cross currency interest rate swaps 3	1		—		1		—
Total return swaps	2		—		2		—
Investments in equity securities 4	2		2		—		—
Liabilities:
Cross currency interest rate swaps 3	$	32	$	—	$	32	$	—
Foreign currency forwards 2	5		—		5		—

1.Money market funds are valued at the closing price reported by the fund sponsor.

2.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 additional information.

3.The fair value of interest rate swaps and 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 additional information.

4.Fair values of quoted investments are based on current bid prices as of May 31, 2022 and August 31, 2021.

5.Level 3 debt securities include investments in convertible debt securities of VillageMD which are valued on a quarterly basis using the Probability Weighted Expect Return Method with gains or losses recorded in Other comprehensive income within the Consolidated Condensed Balance Sheets. Inputs include the enterprise value, expected holding term of the investment, volatility and risk-free interest rates.

There were no transfers between Levels for the three and nine months ended May 31, 2022.

The Company reports its debt instruments under the guidance of ASC Topic 825, Financial Instruments, which requires disclosure of the fair value of the Company’s debt in the footnotes to the Consolidated Condensed Financial Statements. As of May 31, 2022, the carrying amounts and estimated fair values of long-term notes outstanding including the current portion were $8.4 billion and $8.1 billion, respectively.

The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market prices and translated at the May 31, 2022 rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of May 31, 2022. See Note 8. Debt, for further information. The carrying values of accounts receivable and trade accounts payable approximated their respective fair values due to their short-term nature.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and contingencies	9 Months Ended
Commitments and contingencies	May 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Note 11. 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. We describe below certain proceedings against the Company in which the amount of loss could be material. We accrue for legal claims when, and to the extent that, the amount or range of probable loss can be reasonably estimated. We believe we have meritorious defenses in each of these proceedings, and we intend 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, we are 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: we have factual and legal arguments that, if successful, will eliminate or sharply reduce the possibility of loss; we do not have 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 litigations. 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, described below. On November 3, 2016, the Court entered a stipulation and order extending the stay until the resolution of the securities class action. On April 10, 2015, a putative shareholder filed a securities class action in federal court in the Northern District of Illinois against Walgreen Co. and certain former officers of Walgreen Co. (Washtenaw County Employees’ Retirement System v. Walgreen Co. et al., No. 1:15-cv-3187 (N.D. Ill.)) The action asserts claims for violation of the federal securities laws arising out of certain public statements the Company made regarding its former fiscal 2016 goals. The Company’s motion to dismiss the consolidated class action complaint filed on August 17, 2015 was granted in part and denied in part on September 30, 2016. The court granted plaintiff’s motion for class certification on March 29, 2018, and plaintiff filed a first amended complaint on December 19, 2018. A motion to dismiss the first amended complaint was granted in part and denied in part on September 23, 2019. Fact discovery and expert discovery have concluded. On November 2, 2021, the Court denied plaintiffs’ motion for summary judgment and granted in part and denied in part defendants’ cross motion. On March 2, 2022 the Court granted the Company’s motion to reconsider a portion of that ruling. On June 29, 2022 the Court granted preliminary approval of a settlement in the amount of $105 million which was fully accrued at May 31, 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. The Court denied the Company’s motion to dismiss the amended complaint on April 15, 2019. The Company filed an answer and affirmative defenses, and the Court granted plaintiffs' motion for class certification. Fact and expert discovery have concluded and summary judgement briefing is complete. 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 Opt-out Actions have been stayed until the earlier of (a) 30 days after the entry of an order resolving any pre-trial dispositive motions in the M.D. Pa. class action, or (b) 30 days after the entry of an order of final approval of any settlement of the M.D. Pa. class action. Claims Relating to Opioid Abuse The Company is among an array of defendants in multiple actions in federal courts alleging claims generally concerning the impacts of widespread opioid abuse, which have been commenced by various plaintiffs such as counties, cities, hospitals, Indian tribes, and others. 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: •One case remanded to the U.S. District Court for the Northern District of California (City and Cnty. of San Francisco, et al. v. Purdue Pharma L.P., et al., Case No. 3:18-cv-07591-CRB), originally scheduled for trial in October 2021, is currently ongoing. •Two 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 in that case returned a verdict after trial in favor of the plaintiffs as to liability, and the second trial regarding remedies took place in May 2022. The court has yet to determine how much each defendant will pay in damages. The Company is unable to predict the outcome relative to remedies or apportionment and believes it has very strong grounds for appeal. •One case remanded to the U. S. District Court for the Eastern District of Oklahoma (The Cherokee Nation v. McKesson Corp., et al., Case No. 18-CV-00056-RAW-SPS), which has since been remanded to the District Court of Sequoyah County, Oklahoma (a decision that is on appeal). •Five additional bellwether cases designated in April 2021: (1) Cobb Cnty. v. Purdue Pharma L.P., et al., Case No. 18-op-45817; (2) Durham Cnty. v. AmerisourceBergen Drug Corp., et al., Case No. 19-op-45346; (3) Montgomery Cnty. Bd. of Cnty. Commrs., et al. v. Cardinal Health, Inc., et al., Case No. 18-op-46326; (4) Board of Cnty. Commrs. of the Cnty. of Santa Fe v. Purdue Pharma L.P., et al., Case No. 18-op-45776; and (5) Cnty. of Tarrant v. Purdue Pharma L.P., et al., Case No. 18-op-45274. •Two consolidated cases in N.D. Ohio (Cnty. of Summit, Ohio, et al v. Purdue Pharma L.P., et al., Case No. 18-op-45090; Cnty. of Cuyahoga, Ohio, et al. v. Purdue Pharma L.P., Case No. 18-op-45004), previously scheduled for trial in November 2020 but postponed indefinitely. The Company also has been named as a defendant in numerous actions brought in state courts relating to opioid matters. Trial dates have been set in cases pending in state courts in the following states: •New Mexico (State of New Mexico, ex rel. Hector Balderas, Attorney General v. Purdue Pharma L.P., et al., Case No. D-101-cv-2017-02541, First Judicial District Court, Santa Fe County, New Mexico - September 2022). •West Virginia (State of West Virginia, ex rel. Patrick Morrisey, Attorney General v. Walgreens Boots Alliance, Inc., et al., Civil Action No.20-C-82 PNM, Circuit Court of Kanawha County, West Virginia, - September 2022). •Michigan (State of Michigan, ex rel. Dana Nessel, Attorney General v. Cardinal Health, Inc., et al., Case No. 19-016896-NZ, Circuit Court for Wayne County, Michigan - February 2023). •Alabama (Mobile County Board of Health, et al. v. Fisher, et al., Case No. CV-2019-902806.00, Circuit Court of Mobile County, Alabama - scheduled for trial in January 2023, but currently stayed pending a petition to the Alabama Supreme Court); (The DCH Health Care Authority, et al. v. Purdue Pharma LP, et al., Case No. CV-2019-000007.00, Circuit Court of Conecuh County, Alabama - March 2023). •Nevada (State of Nevada v. McKesson Corporation, et al., Case No. A-19-796755-B, Eighth Judicial District Court, Clark County, Nevada - April 2023). •Missouri (Jefferson County, Missouri v. Dannie E. Williams, M.D., et al., Case No. 20JE-CC00029, Twenty-Third Judicial Circuit, Jefferson County, Missouri - July 2023). Two consolidated cases in New York state court (County of Suffolk v. Purdue Pharma L.P., et al., Index No. 400001/2017; County of Nassau v. Purdue Pharma L.P., et al., Index No. 400008/2017, Supreme Court of the State of New York, Suffolk County, New York) were resolved as to the Company in June 2021. The relief sought by various plaintiffs in these matters includes compensatory, abatement, restitution and punitive damages, as well as injunctive relief. In connection with these matters, the Company has engaged an expanded number of parties regarding possible resolution. Significant uncertainties remain. Additionally, the Company has received from the U.S. Department of Justice 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 Department of Justice with respect to purported violations of the federal Controlled Substances Act and the federal False Claims Act in dispensing opioid prescriptions at certain Walgreens locations. 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 is not an admission of liability or wrong-doing and would resolve opioid lawsuits filed and future claims by the state and government subdivisions in the State of Florida. The estimated 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 applied by it to opioid remediation, as well as a one-time payment of $63 million for attorneys’ fees. The Company made the first annual settlement payment of $97.4 million into escrow on June 17, 2022. During the three months ended May 31, 2022, the Company recorded a $683 million liability associated with this settlement. The settlement accrual is reflected in the unaudited Consolidated Condensed Statement of Earnings within Selling, general and administrative expenses as part of the United States segment. The Company recorded $97.4 million and $585.6 million of the estimated settlement liability in Accrued expenses and other current liabilities, and Other non-current liabilities, respectively, in our Consolidated Condensed Balance Sheet.

Income taxes	9 Months Ended
Income taxes	May 31, 2022
Income Tax Disclosure [Abstract]
Income taxes	Note 12. Income taxes The Company recognized a tax benefit from continuing operations for the three months ended May 31, 2022. The effective tax rate for the three months ended May 31, 2022 was not meaningful. The tax benefit is primarily driven by reduction of a valuation allowance on net deferred tax assets due to capital gains from the sale of AmerisourceBergen shares (see Note 6. Equity method investments), internal restructuring, and other anticipated gains, as well as the tax benefit related to the opioid settlement agreement with the State of Florida (see Note 11. Commitments and contingencies). The tax rate for the three months ended May 31, 2021 was an expense of 32.8% and includes a discrete tax expense on equity earnings of $576 million from HC Group Holdings. See Note 6. Equity method investments for further information. The effective tax rate from continuing operations for the nine months ended May 31, 2022 was 4.3%, compared to 7.4% for the nine months ended May 31, 2021. The tax rate for the current period includes the discrete tax effect of lower tax expense on gains from consolidation of the Company’s investment in VillageMD and Shields (see Note 3. Acquisitions and other investments), discrete tax benefits recorded for the release of valuation allowance on net deferred tax assets resulting from capital gains derived from the sale of AmerisourceBergen shares (see Note 6. Equity method investments), internal restructuring, and other anticipated gains, as well as the tax benefit related to the opioid settlement agreement with the State of Florida (see Note 11. Commitments and contingencies). The effective tax rate for the prior period reflects the discrete tax effect of equity losses in AmerisourceBergen, partially offset by the tax effect on equity earnings of HC Group Holdings. Income taxes paid for the nine months ended May 31, 2022 and 2021 were $291 million and $305 million, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Retirement benefits

9 Months Ended

May 31, 2022

Retirement Benefits [Abstract]

Retirement benefits

Note 13. Retirement benefits

The Company sponsors several retirement plans, including defined benefit plans, defined contribution plans and a postretirement health plan.

Defined benefit pension plans (non-U.S. plans)

The Company has various defined benefit pension plans outside the U.S. The principal defined benefit pension plan is the Boots Pension Plan (the “Boots Plan”), which covers certain employees in the UK. The Boots Plan is a funded final salary defined benefit plan providing pensions and death benefits to members. The Boots Plan was closed to future accrual effective July 1, 2010, with pensions calculated based on salaries up until that date. The Boots Plan is governed by a trustee board, which is independent of the Company. The plan is subject to a full funding actuarial valuation on a triennial basis.

Components of net periodic pension costs (income) for the defined benefit pension plans (in millions):


		Three months ended May 31,				Nine months ended May 31,
	Location in Consolidated Condensed Statements of Earnings	2022		2021		2022		2021
Service costs	Selling, general and administrative expenses	$	1	$	2	$	4	$	4
Interest costs	Other income	37		36		115		104
Expected returns on plan assets/other	Other income	(70)		(85)		(216)		(248)
Total net periodic pension income		$	(32)	$	(48)	$	(97)	$	(140)

The Company made cash contributions to its defined benefit pension plans of $20 million for the nine months ended May 31, 2022, which primarily related to committed payments. The Company plans to contribute an additional $21 million to its defined benefit pension plans during the remainder of fiscal year 2022.

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 was an expense of $58 million and $181 million for the three and nine months ended May 31, 2022, respectively, compared to an expense of $54 million and $166 million for the three and nine months ended May 31, 2021, respectively.

The Company also has certain contract based defined contribution arrangements. The principal arrangement is based in the UK, to which both the Company and participating employees contribute. The Company recognized an expense of $21 million and $69 million for the three and nine months ended May 31, 2022, respectively, compared to an expense of $25 million and $77 million for the three and nine months ended May 31, 2021, respectively.

Accumulated other comprehensive income (loss)

9 Months Ended

May 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated other comprehensive income (loss)

Note 14. Accumulated other comprehensive income (loss)

The following is a summary of net changes in Accumulated other comprehensive income (“AOCI”) by component and net of tax for the three and nine months ended May 31, 2022 and 2021 (in millions):


	Pension/ post-retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at February 28, 2022	$	(372)	$	(9)	$	(11)	$	(154)	$	(1,782)	$	(2,328)
Other comprehensive income (loss) before reclassification adjustments	—		4		176		(48)		(515)		(383)
Amounts reclassified from AOCI	(5)		1		—		25		—		20


Tax benefit (provision)	1		(1)		(40)		6		—		(34)
Net change in other comprehensive (loss) income	(4)		4		135		(17)		(515)		(397)
Balance at May 31, 2022	$	(376)	$	(5)	$	124	$	(171)	$	(2,297)	$	(2,724)


	Pension/ post- retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain on available for sale securities		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at August 31, 2021	$	(359)	$	(10)	$	(35)	$	96	$	(29)	$	(1,772)	$	(2,109)
Other comprehensive income (loss) before reclassification adjustments	—		5		207		450		(213)		(525)		(77)
Amounts reclassified from AOCI	(16)		2		—		(577)		25		—		(566)

Other	(6)		—		—		—		—		—		(6)
Tax benefit (provision)	5		(1)		(48)		31		46		—		32
Net change in other comprehensive (loss) income	(17)		6		159		(96)		(143)		(525)		(616)
Balance at May 31, 2022	$	(376)	$	(5)	$	124	$	—	$	(171)	$	(2,297)	$	(2,724)


	Pension/ post- retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain on available for sale securities		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at February 28, 2021	$	(739)	$	(18)	$	(90)	$	—	$	10	$	(2,469)	$	(3,306)
Other comprehensive income (loss) before reclassification adjustments	—		(3)		(30)		5		2		141		115
Amounts reclassified from AOCI	(2)		14		—		—		—		1		13
Tax benefit (provision)	—		(3)		7		—		(6)		—		(1)
Net change in other comprehensive (loss) income	(1)		8		(23)		5		(4)		142		127
Balance at May 31, 2021	$	(740)	$	(10)	$	(113)	$	5	$	6	$	(2,327)	$	(3,180)


	Pension/ post- retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain on available for sale securities		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at August 31, 2020	$	(748)	$	(31)	$	(34)	$	—	$	(10)	$	(2,948)	$	(3,771)
Other comprehensive income (loss) before reclassification adjustments	16		11		(110)		5		21		615		558
Amounts reclassified from AOCI	(6)		16		—		—		—		6		17
Tax benefit (provision)	(3)		(7)		31		—		(5)		—		17
Net change in other comprehensive income (loss)	8		21		(79)		5		16		621		591
Balance at May 31, 2021	$	(740)	$	(10)	$	(113)	$	5	$	6	$	(2,327)	$	(3,180)

Segment reporting

9 Months Ended

May 31, 2022

Segment Reporting [Abstract]

Segment reporting

Note 15. Segment reporting

In conjunction with the launch of its new consumer-centric healthcare strategy, in fiscal year 2022, the Company announced the creation of a new operating segment, Walgreens Health. As a result, beginning in fiscal year 2022, the Company is now aligned into three reportable segments: United States, International and Walgreens Health.

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.

United States

The Company’s United States segment includes the Walgreens business which includes the operations of retail drugstores, health and wellness services, and specialty and home delivery pharmacy services, and its equity method investment in AmerisourceBergen. 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.

Walgreens Health

The Company’s Walgreens Health segment, created at the beginning of fiscal year 2022, is a consumer-centric, technology-enabled healthcare business that engages consumers through a personalized, omni-channel experience across the care journey. Walgreens Health delivers improved health outcomes and lower costs for payors and providers by delivering care through owned and partnered assets.

The Walgreens Health segment currently consists of a majority position in VillageMD, a leading, national provider of value-based primary care services; a majority position in Shields, a specialty pharmacy integrator and accelerator for hospitals; and the Walgreens Health organically-developed business that contracts with payors and providers to deliver clinical healthcare services to their members and members’ caregivers through both digital and physical channels.

Selling, general and administrative costs for Walgreens Health for the three and nine months ended May 31, 2021 have been reclassified in the Consolidated Condensed Financial Statements and accompanying notes to conform to the current period presentation.

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):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Sales:
United States	$	26,695	$	28,743	$	82,394	$	83,250
International	5,305		5,288		16,686		14,998
Walgreens Health	596		—		1,173		—
Corporate and Other 1	1		—		—		—
Walgreens Boots Alliance, Inc.	$	32,597	$	34,030	$	100,254	$	98,247

Adjusted operating income:
United States	$	966	$	1,471	$	4,243	$	3,789
International	174		94		563		326
Walgreens Health	(129)		(17)		(218)		(31)
Corporate and Other	(56)		(88)		(198)		(202)
Walgreens Boots Alliance, Inc.	$	955	$	1,459	$	4,389	$	3,881

1.Includes certain eliminations.

The following table reconciles adjusted operating income to operating (loss) income (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Adjusted operating income	$	955	$	1,459	$	4,389	$	3,881
Adjustments to equity earnings (loss) in AmerisourceBergen	(60)		(48)		(155)		(1,575)
Transformational cost management	(185)		(60)		(458)		(338)
Acquisition-related amortization	(201)		(158)		(616)		(367)
Certain legal and regulatory accruals and settlements	(734)		—		(734)		(60)
LIFO provision	(55)		(51)		(64)		(85)
Acquisition-related costs	(40)		(9)		(155)		(25)

Operating (loss) income	$	(320)	$	1,134	$	2,209	$	1,432

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Sales

9 Months Ended

May 31, 2022

Revenue from Contract with Customer [Abstract]

Sales

Note 16. Sales

The following table summarizes the Company’s sales by segment and by major source (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
United States
Pharmacy	$	19,656	$	21,770	$	60,581	$	63,133
Retail	7,039		6,973		21,814		20,117
Total	26,695		28,743		82,394		83,250

International
Pharmacy	901		958		2,876		2,791
Retail	1,618		1,455		5,294		4,618
Wholesale	2,786		2,875		8,516		7,588
Total	5,305		5,288		16,686		14,998

Walgreens Health	596		—		1,173		—

Corporate and Other 1	1		—		—		—
Walgreens Boots Alliance, Inc.	$	32,597	$	34,030	$	100,254	$	98,247

1Includes certain eliminations.

See Note 19. Supplemental information for further information on receivables from contracts with customers.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Related parties

9 Months Ended

May 31, 2022

Related parties

Note 17. Related parties

The Company has a long-term pharmaceutical distribution agreement with AmerisourceBergen pursuant to which the Company sources branded and generic pharmaceutical products from AmerisourceBergen principally for its U.S. operations. Additionally, AmerisourceBergen receives sourcing services for generic pharmaceutical products.

Related party transactions with AmerisourceBergen (in millions) were as follows:


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Purchases, net	$	15,439	$	15,947	$	46,293	$	46,449


	May 31, 2022		August 31, 2021
Trade accounts payable, net of Trade accounts receivable	$	7,322	$	6,589

See Note 2. Discontinued operations for further information.

On December 28, 2021, in accordance with the terms of the Unit Purchase Agreement, VillageMD settled the fully subscribed tender offer using cash proceeds provided by the Company. The Company purchased $1.9 billion of units in VillageMD for cash, from existing holders, including Mr. Steven Shulman, the lead director of VillageMD, who received proceeds of approximately $117 million in consideration for the tender of 287,781 units in VillageMD. See Note 3. Acquisitions and Other investments for further information. After giving effect to the tender offer, Mr. Shulman owns approximately 1.2% of outstanding equity interests of VillageMD. On January 27, 2022, pursuant to the terms and subject to the conditions set forth in the Unit Purchase Agreement, the Company appointed Mr. Shulman to the Company’s Board of Directors.

New accounting pronouncements	9 Months Ended
New accounting pronouncements	May 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
New accounting pronouncements	Note 1. Accounting policies Basis of presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the “Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. The Company uses the equity method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2021, as amended by Form 10-K/A for the fiscal year ended August 31, 2021 filed on November 24, 2021. The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company bases its estimates on the information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances, including estimates of the impact of COVID-19. The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous factors discussed throughout this Quarterly Report on Form 10-Q including, but not limited to, the severity and duration of COVID-19, the extent to which it will impact our customers, team members, suppliers, vendors, business partners and distribution channels. The Company assessed certain accounting matters that require consideration of estimates and assumptions in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of May 31, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill, intangible and other long-lived assets, including operating lease right-of-use assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. In the opinion of management, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments necessary to present a fair statement of the results for such interim periods. The impact of COVID-19, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payor and customer relationships and terms, strategic transactions including acquisitions, dispositions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. 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 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 all prior periods. Effective as of the first quarter of fiscal year 2022, the Company is aligned into three reportable segments: United States, International and Walgreens Health. Unless otherwise specified, disclosures in these Consolidated Condensed Financial Statements reflect continuing operations only. See Note 2. Discontinued operations and Note 15. Segment reporting for further information. Certain amounts in the Consolidated Condensed Financial Statements and associated notes may not add due to rounding. Percentages have been calculated using unrounded amounts for all periods presented. Note 18. New accounting pronouncements Adoption of new accounting pronouncements Receivables - nonrefundable fees and others In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other. This ASU clarifies the accounting for the amortization period for certain purchased callable debt securities held at a premium by giving consideration to securities which have multiple call dates. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Investments — equity securities; Investments — equity method and joint ventures; Derivatives and hedging In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this ASU clarify the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The ASU is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Income taxes - simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Effects of reference rate reform on financial reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable, or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to the above ASU to clarify certain optional expedients in Topic 848. The Company adopted the new standard effective September 1, 2021, and the adoption did not have a material impact on the Company’s results of operations, cash flows or financial position. 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 fiscal years beginning after December 15, 2022 (fiscal year 2024). The Company is evaluating the effect of adopting this new accounting guidance. 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. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal year 2023). The Company is evaluating the effect of adopting this new accounting guidance.

Supplemental information

9 Months Ended

May 31, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental information

Note 19. Supplemental information

Accounts receivable

Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies). Trade receivables were $3.9 billion and $4.5 billion at May 31, 2022 and August 31, 2021, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from AmerisourceBergen (see Note 17. Related parties), were $1.1 billion at both May 31, 2022 and August 31, 2021.

Depreciation and amortization

The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Depreciation expense	$	331	$	352	$	1,014	$	1,042
Intangible asset and other amortization	148		156		488		363
Total depreciation and amortization expense	$	478	$	507	$	1,502	$	1,404

Accumulated depreciation and amortization on property, plant and equipment was $13.0 billion at May 31, 2022 and $13.1 billion at August 31, 2021.

Restricted cash

The Company is required to maintain cash deposits with certain banks which consist of cash deposits restricted by law and other obligations. The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents, marketable securities and restricted cash in the Consolidated Condensed Statements of Cash Flows (in millions):


	May 31, 2022		August 31, 2021
Cash and cash equivalents	$	2,285	$	559

Marketable securities	2,173		634
Restricted cash (included in other current assets)	82		77

Cash, cash equivalents, marketable securities and restricted cash	$	4,541	$	1,270

Redeemable non-controlling interest

The following is a roll forward of the redeemable non-controlling interest in the Consolidated Condensed Balance Sheets (in millions):


Redeemable non-controlling interest roll forward:	Three months ended May 31, 2022		Nine months ended May 31, 2022
Opening balance	$	812	$	319
Recognition upon acquisition of subsidiary 1	—		2,489
Acquisition of non-controlling interests 2	—		(2,047)
Redemption price adjustments 3	(22)		68
Net loss attributable to redeemable non-controlling interest	(12)		(45)
Currency translation adjustments and other	(3)		(9)
Balance at May 31, 2022	$	775	$	775

1.Nine months ended May 31, 2022, includes, $1.9 billion of redeemable non-controlling interest, representing the maximum purchase price to redeem non-controlling units in VillageMD for cash, and redeemable non-controlling interest in Shields.

2.Nine months ended May 31, 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 interest 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 Condensed Balance Sheets.

See Note 3. Acquisitions and other investments for further information.

Earnings per share

The dilutive effect of outstanding stock options on earnings per share is calculated using the treasury stock method. Stock options are anti-dilutive and excluded from the earnings per share calculation if the exercise price exceeds the average market price of the common shares. There were 17.4 million and 17.2 million weighted outstanding options to purchase common shares that were anti-dilutive and excluded from the earnings per share calculation for the three and nine months ending May 31, 2022, compared to 15.9 million and 17.1 million for the three and nine months ending May 31, 2021, respectively.

Cash dividends declared per common share

Cash dividends per common share declared were as follows:


Quarter ended	2022		2021
November	$	0.4775	$	0.4675
February	$	0.4775	$	0.4675
May	$	0.4775	$	0.4675
Total	$	1.4325	$	1.4025

Subsequent events	9 Months Ended
Subsequent events	May 31, 2022
Subsequent Events [Abstract]
Subsequent events	Note 20. Subsequent events On June 17, 2022, the Company entered into a five-year $3.5 billion revolving credit agreement and an eighteen-month $1.5 billion revolving credit agreement with certain lenders and Wells Fargo Bank, National Association, as administrative agent. Borrowings under the credit agreements shall be denominated in U.S. dollars, Sterling, Euros, Yen or any other currency as specified in the credit agreements and will bear interest at a fluctuating rate per annum equal to a benchmark rate applicable to the currency composing such borrowing plus an applicable margin based on the rating of the Company’s corporate debt obligations. Voluntary prepayments of the loans and voluntary reductions of the unutilized portion of the commitments under these credit agreements is permissible, without penalty, subject to certain conditions pertaining to minimum notice and minimum reduction amounts. Simultaneously, with the entry into the credit agreements, the Company terminated the Revolving Credit Agreements dated December 23, 2020 and August 29, 2018. All outstanding obligations under those credit agreements have been paid and satisfied in full. On June 3, 2022, pursuant to the terms of the Indenture, dated as of July 17, 2008, between Walgreen Co. and Computershare Trust Company, N.A., as successor to Wells Fargo Bank, National Association, as trustee (the “Trustee”), a notice of redemption was given to holders of the 3.100% notes due 2022 (the “notes”) issued by the Company on September 13, 2012. As a result, on July 5, 2022 (the “redemption date”), the notes with aggregate principal amount of $731 million will be redeemed in full. The redemption price of the notes will be calculated as set forth in the Notice of Full Redemption delivered to noteholders on June 3, 2022. This report does not constitute a notice of redemption under the indenture.

Accounting policies (Policies)	9 Months Ended
Accounting policies (Policies)	May 31, 2022
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the “Company”) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. The Company uses the equity method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2021, as amended by Form 10-K/A for the fiscal year ended August 31, 2021 filed on November 24, 2021. The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company bases its estimates on the information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances, including estimates of the impact of COVID-19. The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous factors discussed throughout this Quarterly Report on Form 10-Q including, but not limited to, the severity and duration of COVID-19, the extent to which it will impact our customers, team members, suppliers, vendors, business partners and distribution channels. The Company assessed certain accounting matters that require consideration of estimates and assumptions in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of May 31, 2022 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill, intangible and other long-lived assets, including operating lease right-of-use assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Adjustments may be made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Actual results may differ. In the opinion of management, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments necessary to present a fair statement of the results for such interim periods. The impact of COVID-19, the influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payor and customer relationships and terms, strategic transactions including acquisitions, dispositions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. 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 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 all prior periods. Effective as of the first quarter of fiscal year 2022, the Company is aligned into three reportable segments: United States, International and Walgreens Health. Unless otherwise specified, disclosures in these Consolidated Condensed Financial Statements reflect continuing operations only. See Note 2. Discontinued operations and Note 15. Segment reporting for further information. Certain amounts in the Consolidated Condensed Financial Statements and associated notes may not add due to rounding. Percentages have been calculated using unrounded amounts for all periods presented.
Adoption of new accounting pronouncements; New accounting pronouncements not yet adopted	Adoption of new accounting pronouncements Receivables - nonrefundable fees and others In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other. This ASU clarifies the accounting for the amortization period for certain purchased callable debt securities held at a premium by giving consideration to securities which have multiple call dates. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Investments — equity securities; Investments — equity method and joint ventures; Derivatives and hedging In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this ASU clarify the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The ASU is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Income taxes - simplifying the accounting for income taxes In December 2019, the FASB issued ASU 2019-12: Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted the new standard effective September 1, 2021, and the adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Effects of reference rate reform on financial reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable, or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, which adds implementation guidance to the above ASU to clarify certain optional expedients in Topic 848. The Company adopted the new standard effective September 1, 2021, and the adoption did not have a material impact on the Company’s results of operations, cash flows or financial position. 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 fiscal years beginning after December 15, 2022 (fiscal year 2024). The Company is evaluating the effect of adopting this new accounting guidance. 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. This ASU is effective for annual periods beginning after December 15, 2021 (fiscal year 2023). The Company is evaluating the effect of adopting this new accounting guidance.

Discontinued operations (Tables)

9 Months Ended

May 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedules of Discontinued Operations

Results of discontinued operations for prior periods were as follows (in millions):



	Three months ended May 31, 2021		Nine months ended May 31, 2021
Sales	$	5,500	$	16,070
Cost of sales	4,956		14,486
Gross profit	544		1,584
Selling, general and administrative expense	394		1,211
Operating income from discontinued operations	150		373
Other expense	(2)		(7)
Interest expense, net	(13)		(23)
Earnings before income tax – discontinued operations	135		342
Income tax provision	44		68
Post tax earnings from other equity method investments	4		15
Net earnings from discontinued operations	$	95	$	289

Sales in prior periods from the Disposal Group to the Company's continuing operations are not eliminated and aggregate to (in millions):



	Three months ended May 31, 2021		Nine months ended May 31, 2021
Sales	$	471	$	1,385

Cash flows from operating and investing activities for discontinued operations in prior periods are (in millions):



	Nine months ended May 31, 2021
Cash used for operating activities - discontinued operations	$	(132)
Cash used for investing activities - discontinued operations	$	(58)

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Acquisitions and other investments (Tables)

9 Months Ended

May 31, 2022

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 preliminary 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	1,621
Liabilities	(245)
Total identifiable net assets	$	2,010



Goodwill	$	8,041

2.Primarily related to vested share-based compensation awards.

The following table summarizes the consideration for the acquisition and the preliminary amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions):


Purchase Price Allocation:
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	1,060
Liabilities	(528)
Total identifiable net assets	$	616

Goodwill	$	1,457

Exit and disposal activities (Tables)

9 Months Ended

May 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

Costs related to exit and disposal activities under the Transformational Cost Management Program for the three and nine months ended May 31, 2022 and 2021 were as follows (in millions):


Three months ended May 31, 2022	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	16	$	3	$	—	$	18
Asset impairments	48		14		—		61
Employee severance and business transition costs	53		22		11		86
Information technology transformation and other exit costs	1		6		—		7
Total pre-tax exit and disposal charges	$	117	$	45	$	11	$	173


Nine months ended May 31, 2022	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	107	$	6	$	—	$	113
Asset impairments	64		42		—		105
Employee severance and business transition costs	110		32		25		166
Information technology transformation and other exit costs	3		18		—		20
Total pre-tax exit and disposal charges	$	283	$	97	$	25	$	404


Three months ended May 31, 2021	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	15	$	6	$	—	$	21
Asset impairments	5		9		—		14
Employee severance and business transition costs	(19)		2		14		(2)
Information technology transformation and other exit costs	1		10		—		11
Total pre-tax exit and disposal charges	$	2	$	27	$	14	$	44


Nine months ended May 31, 2021	United States		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	56	$	6	$	—	$	62
Asset impairments	9		10		—		19
Employee severance and business transition costs	92		36		44		172
Information technology transformation and other exit costs	14		11		1		26
Total pre-tax exit and disposal charges	$	172	$	63	$	44	$	279

Change in Restructuring Liabilities

The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions):


	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	113		105		166		20		404
Payments	(60)		—		(145)		(24)		(229)
Other	(52)		(105)		(6)		2		(161)

Balance at May 31, 2022	$	18	$	—	$	92	$	20	$	129

Leases (Tables)

9 Months Ended

May 31, 2022

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

Supplemental Balance sheet information related to leases were as follows (in millions):


Balance sheet supplemental information:	May 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,369	$	21,893

Operating lease obligations - current	2,270		2,259
Operating lease obligations - non-current	21,550		22,153
Total operating lease obligations	$	23,820	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	664	$	725
Lease obligations included in:
Accrued expenses and other liabilities	37		37
Other non-current liabilities	919		974
Total finance lease obligations	$	956	$	1,010

Schedule of Supplemental Income Statement and Other Information

Supplemental Statement of Earnings information related to leases were as follows (in millions):


	Three months ended May 31,				Nine months ended May 31,
Statement of Earnings supplemental information:	2022		2021		2022		2021
Operating lease cost
Fixed	$	811	$	807	$	2,431	$	2,406
Variable 1	198		157		600		477
Finance lease cost
Amortization	$	11	$	11	$	33	$	33
Interest	13		13		38		39

Sublease income	$	24	$	21	$	76	$	62
Impairment of right-of-use assets	11		8		82		23

Gain on sale-leaseback 2	175		85		410		273

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.

2Recorded within selling, general and administrative expenses.

Other supplemental information related to leases were as follows (in millions):


	Nine months ended May 31,
Other supplemental information:		2022		2021

Cash paid for amounts included in the measurement of lease obligations:
Operating cash outflows from operating leases		$	2,515	$	2,562
Operating cash outflows from finance leases		35		36
Financing cash outflows from finance leases		32		31
Total		$	2,582	$	2,629

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		$	1,380	$	2,011
Finance leases		11		—
Total		$	1,391	$	2,011

Weighted average lease terms and discount rates for real estate leases were as follows:


Weighted average terms and discount rates:	May 31, 2022		August 31, 2021
Weighted average remaining lease term in years:
Operating leases	10.0		10.3
Finance leases	19.2		20.2

Weighted average discount rate:
Operating leases	4.77	%	4.77	%
Finance leases	5.18	%	5.18	%

Schedule of Aggregate Future Lease Payments Under Operating Leases

The aggregate future lease payments for operating and finance leases as of May 31, 2022 were as follows (in millions):


Future lease payments:
Fiscal year	Finance lease		Operating lease
2022 (Remaining period)	$	22	$	867
2023	88		3,399
2024	88		3,295
2025	87		3,185
2026	87		3,081
2027	87		2,977
Later	1,052		13,412
Total undiscounted minimum lease payments	$	1,510	$	30,216
Less: Present value discount	(554)		(6,396)
Lease liability	$	956	$	23,820

Schedule of Aggregate Future Lease Payments Under Finance Leases

The aggregate future lease payments for operating and finance leases as of May 31, 2022 were as follows (in millions):


Future lease payments:
Fiscal year	Finance lease		Operating lease
2022 (Remaining period)	$	22	$	867
2023	88		3,399
2024	88		3,295
2025	87		3,185
2026	87		3,081
2027	87		2,977
Later	1,052		13,412
Total undiscounted minimum lease payments	$	1,510	$	30,216
Less: Present value discount	(554)		(6,396)
Lease liability	$	956	$	23,820

Equity method investments (Tables)

9 Months Ended

May 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

Equity method investments were as follows (in millions, except percentages):


	May 31, 2022			August 31, 2021
	Carrying value		Ownership percentage	Carrying value		Ownership percentage
AmerisourceBergen	$	3,965	25%	$	4,407	28%
Others	1,811		8% - 50%	2,580		8% - 50%
Total	$	5,777		$	6,987

Summarized Financial Information of Equity Method Investments

Summarized financial information for the Company’s equity method investments in aggregate is as follows:Statements of earnings (loss) (in millions)


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Sales	$	65,085	$	55,890	$	200,628	$	171,417
Gross Profit	3,308		2,558		10,117		7,647
Net earnings (loss)	602		489		1,474		(3,841)
Share of earnings (loss) from equity method investments	132		672		359		(591)

Goodwill and other intangible assets (Tables)

9 Months Ended

May 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):


Goodwill roll forward:	United States		International		Walgreens Health		Walgreens Boots Alliance, Inc.
August 31, 2021	$	10,947	$	1,474	$	—	$	12,421
Acquisitions	—		—		9,586		9,586
Currency translation adjustments	—		(106)		—		(106)
May 31, 2022	$	10,947	$	1,368	$	9,586	$	21,901

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	May 31, 2022		August 31, 2021
Gross amortizable intangible assets
Customer relationships and loyalty card holders 1	$	4,364	$	3,522
Primary care provider network	1,244		—
Trade names and trademarks	685		361
Developed technology 2	355		156
Purchasing and payor contracts	15		317
Others 2	78		65
Total gross amortizable intangible assets	$	6,741	$	4,421

Accumulated amortization
Customer relationships and loyalty card holders 1	$	1,487	$	1,335
Primary care provider network	43		—
Trade names and trademarks	244		226
Developed technology 2	43		8
Purchasing and payor contracts	3		227
Others 2	33		29
Total accumulated amortization	1,853		1,826
Total amortizable intangible assets, net	$	4,888	$	2,595

Indefinite-lived intangible assets
Trade names and trademarks	$	4,835	$	5,276
Pharmacy licenses	1,860		2,066
Total indefinite-lived intangible assets	$	6,695	$	7,342

Total intangible assets, net	$	11,583	$	9,936

1Includes purchased prescription files.

2Includes certain reclassifications to conform to the current period presentation.

Schedule of Future Amortization Expense

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at May 31, 2022 is as follows (in millions):


	2022 (Remaining period)		2023		2024		2025		2026		2027
Estimated annual amortization expense	$	151	$	571	$	551	$	518	$	497	$	434

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

Debt (Tables)

9 Months Ended

May 31, 2022

Debt Disclosure [Abstract]

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):


	May 31, 2022		August 31, 2021
Short-term debt

Credit facilities
Unsecured credit facility due 2023	1,998		—
$8 billion note issuance 1
3.300% unsecured notes due 2021 2	—		1,250
$4 billion note issuance 4
3.100% unsecured notes due 2022	731		—
Other 3	57		56
Total short-term debt	$	2,787	$	1,305

Long-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,997	$	—
Unsecured credit facility due 2024	998		—
$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		497
4.100% unsecured notes due 2050	792		792
$6 billion note issuance 1
3.450% unsecured notes due 2026	1,443		1,442
4.650% unsecured notes due 2046	318		318
$8 billion note issuance 1
3.800% unsecured notes due 2024	1,154		1,154
4.500% unsecured notes due 2034	301		301
4.800% unsecured notes due 2044	868		868
£700 million note issuance 1
3.600% unsecured Pound Sterling notes due 2025	374		408
€750 million note issuance 1
2.125% unsecured Euro notes due 2026	790		873
$4 billion note issuance 4
3.100% unsecured notes due 2022	—		731
4.400% unsecured notes due 2042	263		263
Other 3	27		29
Total long-term debt, less current portion	$	10,670	$	7,675

1Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding.

2On September 18, 2021, the Company redeemed in full the $1.25 billion aggregate principal amount outstanding of its 3.300% unsecured notes due 2021 issued by the Company on November 18, 2014.

3Other debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 4Notes 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. On June 3, 2022, a notice of redemption was given to holders of the 3.100% notes due 2022. As a result, on July 5, 2022, the notes with aggregate principal amount of $731 million will be redeemed in full. See Note 20. Subsequent events for further information.

Long-Term Debt

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):


	May 31, 2022		August 31, 2021
Short-term debt

Credit facilities
Unsecured credit facility due 2023	1,998		—
$8 billion note issuance 1
3.300% unsecured notes due 2021 2	—		1,250
$4 billion note issuance 4
3.100% unsecured notes due 2022	731		—
Other 3	57		56
Total short-term debt	$	2,787	$	1,305

Long-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,997	$	—
Unsecured credit facility due 2024	998		—
$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		497
4.100% unsecured notes due 2050	792		792
$6 billion note issuance 1
3.450% unsecured notes due 2026	1,443		1,442
4.650% unsecured notes due 2046	318		318
$8 billion note issuance 1
3.800% unsecured notes due 2024	1,154		1,154
4.500% unsecured notes due 2034	301		301
4.800% unsecured notes due 2044	868		868
£700 million note issuance 1
3.600% unsecured Pound Sterling notes due 2025	374		408
€750 million note issuance 1
2.125% unsecured Euro notes due 2026	790		873
$4 billion note issuance 4
3.100% unsecured notes due 2022	—		731
4.400% unsecured notes due 2042	263		263
Other 3	27		29
Total long-term debt, less current portion	$	10,670	$	7,675

1Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding.

2On September 18, 2021, the Company redeemed in full the $1.25 billion aggregate principal amount outstanding of its 3.300% unsecured notes due 2021 issued by the Company on November 18, 2014.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Financial instruments (Tables)

9 Months Ended

May 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts, Fair Value and Balance Sheet Presentation of Derivative Instruments Outstanding

The notional amounts and fair value of derivative instruments outstanding were as follows (in millions):


May 31, 2022	Notional		Fair Value		Location in Consolidated Condensed Balance Sheets
Derivatives designated as hedges:
Foreign currency forwards	$	537	$	21	Other current assets
Cross currency interest rate swaps	150		5		Other current assets
Cross currency interest rate swaps	750		39		Other non-current assets
Foreign currency forwards	9		1		Other non-current assets
Foreign currency forwards	189		3		Other current liabilities


Derivatives not designated as hedges:
Foreign currency forwards	$	3,070	$	188	Other current assets
Total return swap	232		7		Other current assets
Foreign currency forwards	1,188		17		Other current liabilities


August 31, 2021	Notional		Fair Value		Location in Consolidated Condensed Balance Sheets
Derivatives designated as hedges:
Foreign currency forwards	$	575	$	7	Other current assets
Cross currency interest rate swaps	155		1		Other non-current assets
Foreign currency forwards	6		—		Other non-current assets
Foreign currency forwards	31		1		Other current liabilities
Cross currency interest rate swaps	109		9		Other current liabilities
Cross currency interest rate swaps	801		23		Other non-current liabilities
Foreign currency forwards	23		1		Other non-current liabilities
Derivatives not designated as hedges:
Foreign currency forwards	$	3,636	$	38	Other current assets
Total return swap	224		2		Other current assets
Foreign currency forwards	808		3		Other current liabilities
Total return swap	37		—		Other current liabilities

Gains and (Losses) due to Changes in Fair Value Recognized in Earnings

The income (expense) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions):


		Three months ended May 31,				Nine months ended May 31,
	Location in Consolidated Condensed Statements of Earnings	2022		2021		2022		2021
Foreign currency forwards	Selling, general and administrative expenses 1	$	—	$	(53)	$	—	$	(177)
Total return swap	Selling, general and administrative expenses	(14)		20		(24)		48
Foreign currency forwards	Other income 1	319		(5)		322		(6)

Fair value measurements (Tables)

9 Months Ended

May 31, 2022

Fair Value Disclosures [Abstract]

Schedule of 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):


	May 31, 2022		Level 1		Level 2		Level 3
Assets:
Money market funds 1	$	2,173	$	2,173	$	—	$	—

Foreign currency forwards 2	210		—		210		—
Cross currency interest rate swaps 3	44		—		44		—

Total return swaps	7		—		7		—


Investments in equity securities 4	2		2		—		—
Liabilities:


Foreign currency forwards 2	$	20	$	—	$	20	$	—


	August 31, 2021		Level 1		Level 2		Level 3
Assets:
Money market funds 1	$	634	$	634	$	—	$	—
Investments in debt securities 5	663		—		—		663
Foreign currency forwards 2	46		—		46		—
Cross currency interest rate swaps 3	1		—		1		—
Total return swaps	2		—		2		—
Investments in equity securities 4	2		2		—		—
Liabilities:
Cross currency interest rate swaps 3	$	32	$	—	$	32	$	—
Foreign currency forwards 2	5		—		5		—

1.Money market funds are valued at the closing price reported by the fund sponsor.

4.Fair values of quoted investments are based on current bid prices as of May 31, 2022 and August 31, 2021.

Retirement benefits (Tables)

9 Months Ended

May 31, 2022

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Costs (Income)

Components of net periodic pension costs (income) for the defined benefit pension plans (in millions):


		Three months ended May 31,				Nine months ended May 31,
	Location in Consolidated Condensed Statements of Earnings	2022		2021		2022		2021
Service costs	Selling, general and administrative expenses	$	1	$	2	$	4	$	4
Interest costs	Other income	37		36		115		104
Expected returns on plan assets/other	Other income	(70)		(85)		(216)		(248)
Total net periodic pension income		$	(32)	$	(48)	$	(97)	$	(140)

Accumulated other comprehensive income (loss) (Tables)

9 Months Ended

May 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

The following is a summary of net changes in Accumulated other comprehensive income (“AOCI”) by component and net of tax for the three and nine months ended May 31, 2022 and 2021 (in millions):


	Pension/ post-retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at February 28, 2022	$	(372)	$	(9)	$	(11)	$	(154)	$	(1,782)	$	(2,328)
Other comprehensive income (loss) before reclassification adjustments	—		4		176		(48)		(515)		(383)
Amounts reclassified from AOCI	(5)		1		—		25		—		20


Tax benefit (provision)	1		(1)		(40)		6		—		(34)
Net change in other comprehensive (loss) income	(4)		4		135		(17)		(515)		(397)
Balance at May 31, 2022	$	(376)	$	(5)	$	124	$	(171)	$	(2,297)	$	(2,724)


	Pension/ post- retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain on available for sale securities		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at August 31, 2021	$	(359)	$	(10)	$	(35)	$	96	$	(29)	$	(1,772)	$	(2,109)
Other comprehensive income (loss) before reclassification adjustments	—		5		207		450		(213)		(525)		(77)
Amounts reclassified from AOCI	(16)		2		—		(577)		25		—		(566)

Other	(6)		—		—		—		—		—		(6)
Tax benefit (provision)	5		(1)		(48)		31		46		—		32
Net change in other comprehensive (loss) income	(17)		6		159		(96)		(143)		(525)		(616)
Balance at May 31, 2022	$	(376)	$	(5)	$	124	$	—	$	(171)	$	(2,297)	$	(2,724)


	Pension/ post- retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain on available for sale securities		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at February 28, 2021	$	(739)	$	(18)	$	(90)	$	—	$	10	$	(2,469)	$	(3,306)
Other comprehensive income (loss) before reclassification adjustments	—		(3)		(30)		5		2		141		115
Amounts reclassified from AOCI	(2)		14		—		—		—		1		13
Tax benefit (provision)	—		(3)		7		—		(6)		—		(1)
Net change in other comprehensive (loss) income	(1)		8		(23)		5		(4)		142		127
Balance at May 31, 2021	$	(740)	$	(10)	$	(113)	$	5	$	6	$	(2,327)	$	(3,180)


	Pension/ post- retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain on available for sale securities		Share of OCI of equity method investments		Cumulative currency translation adjustments		Total
Balance at August 31, 2020	$	(748)	$	(31)	$	(34)	$	—	$	(10)	$	(2,948)	$	(3,771)
Other comprehensive income (loss) before reclassification adjustments	16		11		(110)		5		21		615		558
Amounts reclassified from AOCI	(6)		16		—		—		—		6		17
Tax benefit (provision)	(3)		(7)		31		—		(5)		—		17
Net change in other comprehensive income (loss)	8		21		(79)		5		16		621		591
Balance at May 31, 2021	$	(740)	$	(10)	$	(113)	$	5	$	6	$	(2,327)	$	(3,180)

Segment reporting (Tables)

9 Months Ended

May 31, 2022

Segment Reporting [Abstract]

Reconciliation of Operating Income (Loss) from Segments to Consolidated

The following table reflects results of operations of the Company’s reportable segments (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Sales:
United States	$	26,695	$	28,743	$	82,394	$	83,250
International	5,305		5,288		16,686		14,998
Walgreens Health	596		—		1,173		—
Corporate and Other 1	1		—		—		—
Walgreens Boots Alliance, Inc.	$	32,597	$	34,030	$	100,254	$	98,247

Adjusted operating income:
United States	$	966	$	1,471	$	4,243	$	3,789
International	174		94		563		326
Walgreens Health	(129)		(17)		(218)		(31)
Corporate and Other	(56)		(88)		(198)		(202)
Walgreens Boots Alliance, Inc.	$	955	$	1,459	$	4,389	$	3,881

1.Includes certain eliminations.

The following table reconciles adjusted operating income to operating (loss) income (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Adjusted operating income	$	955	$	1,459	$	4,389	$	3,881
Adjustments to equity earnings (loss) in AmerisourceBergen	(60)		(48)		(155)		(1,575)
Transformational cost management	(185)		(60)		(458)		(338)
Acquisition-related amortization	(201)		(158)		(616)		(367)
Certain legal and regulatory accruals and settlements	(734)		—		(734)		(60)
LIFO provision	(55)		(51)		(64)		(85)
Acquisition-related costs	(40)		(9)		(155)		(25)

Operating (loss) income	$	(320)	$	1,134	$	2,209	$	1,432

Sales (Tables)

9 Months Ended

May 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes the Company’s sales by segment and by major source (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
United States
Pharmacy	$	19,656	$	21,770	$	60,581	$	63,133
Retail	7,039		6,973		21,814		20,117
Total	26,695		28,743		82,394		83,250

International
Pharmacy	901		958		2,876		2,791
Retail	1,618		1,455		5,294		4,618
Wholesale	2,786		2,875		8,516		7,588
Total	5,305		5,288		16,686		14,998

Walgreens Health	596		—		1,173		—

Corporate and Other 1	1		—		—		—
Walgreens Boots Alliance, Inc.	$	32,597	$	34,030	$	100,254	$	98,247

1Includes certain eliminations.

Related parties (Tables)

9 Months Ended

May 31, 2022

Schedule of Related Party Transactions

Related party transactions with AmerisourceBergen (in millions) were as follows:


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Purchases, net	$	15,439	$	15,947	$	46,293	$	46,449


	May 31, 2022		August 31, 2021
Trade accounts payable, net of Trade accounts receivable	$	7,322	$	6,589

Supplemental information (Tables)

9 Months Ended

May 31, 2022

Supplemental Cash Flow Elements [Abstract]

Schedule of Depreciation and Amortization Expense

The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions):


	Three months ended May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Depreciation expense	$	331	$	352	$	1,014	$	1,042
Intangible asset and other amortization	148		156		488		363
Total depreciation and amortization expense	$	478	$	507	$	1,502	$	1,404

Restrictions on Cash and Cash Equivalents

The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents, marketable securities and restricted cash in the Consolidated Condensed Statements of Cash Flows (in millions):


	May 31, 2022		August 31, 2021
Cash and cash equivalents	$	2,285	$	559

Marketable securities	2,173		634
Restricted cash (included in other current assets)	82		77

Cash, cash equivalents, marketable securities and restricted cash	$	4,541	$	1,270

Schedule of Cash, Cash Equivalents, Marketable Securities and Restricted Cash


	May 31, 2022		August 31, 2021
Cash and cash equivalents	$	2,285	$	559

Marketable securities	2,173		634
Restricted cash (included in other current assets)	82		77

Cash, cash equivalents, marketable securities and restricted cash	$	4,541	$	1,270

Schedule of Redeemable Noncontrolling Interest

The following is a roll forward of the redeemable non-controlling interest in the Consolidated Condensed Balance Sheets (in millions):


Redeemable non-controlling interest roll forward:	Three months ended May 31, 2022		Nine months ended May 31, 2022
Opening balance	$	812	$	319
Recognition upon acquisition of subsidiary 1	—		2,489
Acquisition of non-controlling interests 2	—		(2,047)
Redemption price adjustments 3	(22)		68
Net loss attributable to redeemable non-controlling interest	(12)		(45)
Currency translation adjustments and other	(3)		(9)
Balance at May 31, 2022	$	775	$	775

Schedule of Dividends Payable

Cash dividends per common share declared were as follows:


Quarter ended	2022		2021
November	$	0.4775	$	0.4675
February	$	0.4775	$	0.4675
May	$	0.4775	$	0.4675
Total	$	1.4325	$	1.4025

Accounting policies (Details)	9 Months Ended
Accounting policies (Details)	May 31, 2022 segment
Accounting Policies [Abstract]
Number of reportable segments	3

Discontinued operations - Narrative (Details) - Discontinued Operations, Disposed of by Sale - Alliance Healthcare - USD ($) shares in Millions, $ in Millions		3 Months Ended
	Jun. 01, 2021	Feb. 28, 2022	Aug. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration from disposal	$ 6,900
Cash received from disposal	$ 6,700
Shares issued as part of disposal (in shares)	2
Receivable for purchase price consideration			$ 98
Working capital adjustments to receivable for purchase price consideration		$ 38

Discontinued operations - Schedules of Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net earnings from discontinued operations	$ 0	$ 95	$ 0	$ 289
Discontinued Operations, Disposed of by Sale \| Alliance Healthcare
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Sales		5,500		16,070
Cost of sales		4,956		14,486
Gross profit		544		1,584
Selling, general and administrative expense		394		1,211
Operating income from discontinued operations		150		373
Other expense		(2)		(7)
Interest expense, net		(13)		(23)
Earnings before income tax – discontinued operations		135		342
Income tax provision		44		68
Post tax earnings from other equity method investments		4		15
Net earnings from discontinued operations		95		289
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract]
Sales		5,500		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		471		1,385
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract]
Sales		$ 471		$ 1,385

Acquisitions and other investments - Narrative (Details) - USD ($) $ in Millions			3 Months Ended		9 Months Ended
	Nov. 24, 2021	Oct. 29, 2021	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021	Nov. 23, 2021	Oct. 28, 2021
Business Acquisition [Line Items]
Gain on sale of equity method investment					$ 421	$ 290
VillageMD
Business Acquisition [Line Items]
Outstanding equity interest percentage	63.00%						30.00%
Purchase price	$ 5,200
Cash consideration, gross	4,000
Promissory note	1,200
Cash paid to existing stockholders	2,900
Value of purchase tender offer	1,900
Cash consideration for preferred units	$ 1,100
Gain on sale of equity method investment			$ 1,597
Pre-tax gain related to conversion of previously held investment in convertible debt securities			577
Shields Health Solutions Parent, LLC
Business Acquisition [Line Items]
Outstanding equity interest percentage		70.00%						25.00%
Cash consideration, subject to purchase price adjustments		$ 969
Other Acquisitions
Business Acquisition [Line Items]
Cash consideration, net			$ 36	$ 19	$ 153	$ 85

Acquisitions and other investments - Schedule of Purchase Price Allocation and Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Nov. 24, 2021	Oct. 29, 2021	May 31, 2022	Aug. 31, 2021
Identifiable assets acquired and liabilities assumed:
Goodwill			$ 21,901	$ 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 share-based compensation awards attributable to pre-combination services	683
Fair value of previously held equity interests	3,211
Fair value of non-controlling interests	3,257
Total	10,051
Identifiable assets acquired and liabilities assumed:
Tangible assets	634
Intangible assets	1,621
Liabilities	(245)
Total identifiable net assets	2,010
Goodwill	8,041
Cash consideration for preferred units	1,100
Promissory note	$ 1,200
Shields Health Solutions Parent, LLC
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		1,060
Liabilities		(528)
Total identifiable net assets		616
Goodwill		$ 1,457

Exit and disposal activities - Narrative (Details) $ in Millions				3 Months Ended
	Oct. 12, 2021 USD ($) store	Oct. 11, 2021 store	Dec. 20, 2018 USD ($)	May 31, 2022 USD ($)	Feb. 28, 2022 USD ($)	Aug. 31, 2021 USD ($)	May 31, 2021 USD ($)	Feb. 28, 2021 USD ($)	Aug. 31, 2020 USD ($)	Sep. 01, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Cumulative effect adjustment to decrease retained earnings				$ (30,382)	$ (30,867)	$ (23,822)	$ (22,596)	$ (21,625)	$ (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				(38,632)	$ (38,757)	$ (35,121)	$ (34,908)	$ (34,116)	(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]
Costs incurred				1,700
Transformational Cost Management Program \| United Kingdom
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close \| store	150	200
Transformational Cost Management Program \| United States
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close \| store	150	250
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				467
Asset Impairments \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Costs incurred				357
Employee Severance and Business Transition Costs \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Costs incurred				679
Information Technology Transformation and Other Exit Costs \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Costs incurred				183
Minimum \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Expected annual cost savings of restructuring plan	$ 3,300		$ 2,000	3,500
Expected cost				3,600
Minimum \| Exit and Disposal Costs \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Expected cost				3,300
Maximum \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Expected cost				3,900
Maximum \| Exit and Disposal Costs \| Transformational Cost Management Program
Restructuring Cost and Reserve [Line Items]
Expected cost				$ 3,600

Exit and disposal activities - Restructuring Costs (Details) - Transformational Cost Management Program - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	$ 173	$ 44	$ 404	$ 279
Reportable segments \| United States
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	117	2	283	172
Reportable segments \| International
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	45	27	97	63
Corporate and Other
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	11	14	25	44
Lease obligations and other real estate costs
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	18	21	113	62
Lease obligations and other real estate costs \| Reportable segments \| United States
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	16	15	107	56
Lease obligations and other real estate costs \| Reportable segments \| International
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	3	6	6	6
Lease obligations and other real estate costs \| Corporate and Other
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	0	0	0	0
Asset impairments
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	61	14	105	19
Asset impairments \| Reportable segments \| United States
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	48	5	64	9
Asset impairments \| Reportable segments \| International
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	14	9	42	10
Asset impairments \| Corporate and Other
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	0	0	0	0
Employee severance and business transition costs
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	86	(2)	166	172
Employee severance and business transition costs \| Reportable segments \| United States
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	53	(19)	110	92
Employee severance and business transition costs \| Reportable segments \| International
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	22	2	32	36
Employee severance and business transition costs \| Corporate and Other
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	11	14	25	44
Information technology transformation and other exit costs
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	7	11	20	26
Information technology transformation and other exit costs \| Reportable segments \| United States
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	1	1	3	14
Information technology transformation and other exit costs \| Reportable segments \| International
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	6	10	18	11
Information technology transformation and other exit costs \| Corporate and Other
Restructuring Cost and Reserve [Line Items]
Total pre-tax exit and disposal charges	$ 0	$ 0	$ 0	$ 1

Exit and disposal activities - Restructuring Reserve Activity (Details) - Transformational Cost Management Program $ in Millions	9 Months Ended
	May 31, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 114
Costs	404
Payments	(229)
Other	(161)
Ending balance	129
Lease obligations and other real estate costs
Restructuring Reserve [Roll Forward]
Beginning balance	17
Costs	113
Payments	(60)
Other	(52)
Ending balance	18
Asset Impairments
Restructuring Reserve [Roll Forward]
Beginning balance	0
Costs	105
Payments	0
Other	(105)
Ending balance	0
Employee severance and business transition costs
Restructuring Reserve [Roll Forward]
Beginning balance	77
Costs	166
Payments	(145)
Other	(6)
Ending balance	92
Information technology transformation and other exit costs
Restructuring Reserve [Roll Forward]
Beginning balance	20
Costs	20
Payments	(24)
Other	2
Ending balance	$ 20

Leases - Narrative (Details)	May 31, 2022
Lessee, Lease, Description [Line Items]
Term of renewal contract	5 years
Minimum
Lessee, Lease, Description [Line Items]
Term of lease	15 years
Maximum
Lessee, Lease, Description [Line Items]
Term of lease	25 years

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021
Operating Leases:
Operating lease right-of-use assets	$ 21,369	$ 21,893
Operating lease obligations - current	2,270	2,259
Operating lease obligations - non-current	21,550	22,153
Total operating lease obligations	23,820	24,412
Finance leases:
Property, plant and equipment, net	664	725
Lease obligations included in:
Accrued expenses and other liabilities	37	37
Other non-current liabilities	919	974
Total finance lease obligations	$ 956	$ 1,010
Finance lease, right-of-use asset, statement of financial position, extensible enumeration	Property, plant and equipment, net	Property, plant and equipment, net
Finance lease, liability, current, statement of financial position, extensible enumeration	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Finance lease, liability, noncurrent, statement of financial position, extensible enumeration	Other non-current liabilities	Other non-current liabilities

Leases - Supplemental Income Statement Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Operating lease cost
Fixed	$ 811	$ 807	$ 2,431	$ 2,406
Variable	198	157	600	477
Finance lease cost
Amortization	11	11	33	33
Interest	13	13	38	39
Sublease income	24	21	76	62
Impairment of right-of-use assets	11	8	82	23
Gain on sale-leaseback	$ 175	$ 85	$ 410	$ 273

Leases - Other Supplemental Information (Details) - USD ($) $ in Millions	9 Months Ended
	May 31, 2022	May 31, 2021
Cash paid for amounts included in the measurement of lease obligations:
Operating cash outflows from operating leases	$ 2,515	$ 2,562
Operating cash outflows from finance leases	35	36
Financing cash outflows from finance leases	32	31
Total	2,582	2,629
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	1,380	2,011
Finance leases	11	0
Total	$ 1,391	$ 2,011

Leases - Average Lease Terms And Discounts (Details)	May 31, 2022	Aug. 31, 2021
Weighted average remaining lease term in years:
Operating leases	10 years	10 years 3 months 18 days
Finance leases	19 years 2 months 12 days	20 years 2 months 12 days
Weighted average discount rate:
Operating leases	4.77%	4.77%
Finance leases	5.18%	5.18%

Leases - Future Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021
Finance lease
2022 (Remaining period)	$ 22
2023	88
2024	88
2025	87
2026	87
2027	87
Later	1,052
Total undiscounted minimum lease payments	1,510
Less: Present value discount	(554)
Lease liability	956	$ 1,010
Operating lease
2022 (Remaining period)	867
2023	3,399
2024	3,295
2025	3,185
2026	3,081
2027	2,977
Later	13,412
Total undiscounted minimum lease payments	30,216
Less: Present value discount	(6,396)
Lease liability	$ 23,820	$ 24,412

Equity method investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021
Schedule of Equity Method Investments [Line Items]
Carrying value of equity method investments	$ 5,777	$ 6,987
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Carrying value of equity method investments	$ 3,965	$ 4,407
Ownership percentage	25.20%	28.00%
Others
Schedule of Equity Method Investments [Line Items]
Carrying value of equity method investments	$ 1,811	$ 2,580
Others \| Minimum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	8.00%	8.00%
Others \| Maximum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%	50.00%
Total
Schedule of Equity Method Investments [Line Items]
Carrying value of equity method investments	$ 5,777	$ 6,987

Equity method investments - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended					9 Months Ended
	May 11, 2022	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	May 31, 2021	Sep. 30, 2020	May 31, 2022	May 31, 2021	Aug. 31, 2021
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment							$ 421	$ 290
Equity earnings (loss)							359	(577)
Impairment of equity method investments and investments in debt and equity securities							233	0
Share of OCI of equity method investments
Schedule of Equity Method Investments [Line Items]
Loss associated with sale of equity method investment reclassified within accumulated other comprehensive income		$ 48			$ (2)		$ 213	(21)
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Number of share sold (in shares)	6,000,000
Share price of stock sold (in dollars per share)	$ 150
Proceeds from sale of equity method investment	$ 900
Outstanding shares owned (in shares)		52,854,867					52,854,867		58,854,867
Gain on sale of equity method investment	424
Outstanding vested equity interest percentage		25.20%					25.20%		28.00%
Period of reporting lag							2 months
Equity earnings (loss)					(1,200)		$ 330
Equity investment, exceeded its proportionate share of net assets		$ 3,800					3,800
AmerisourceBergen \| Share of OCI of equity method investments
Schedule of Equity Method Investments [Line Items]
Loss associated with sale of equity method investment reclassified within accumulated other comprehensive income	$ 25
AmerisourceBergen \| Opiod Litigation
Schedule of Equity Method Investments [Line Items]
Equity earnings (loss)						$ (5,600)
AmerisourceBergen \| Level 1
Schedule of Equity Method Investments [Line Items]
Fair market value of equity investment		8,200					8,200		$ 7,200
Other Investments
Schedule of Equity Method Investments [Line Items]
Equity earnings (loss)		$ 5			575		$ 29	604
VillageMD
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment				$ 2,200
Shields Health Solutions Parent, LLC
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment				$ 402
Investments in China
Schedule of Equity Method Investments [Line Items]
Impairment of equity method investments and investments in debt and equity securities			$ 124
Option Care Health
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment					98			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

Equity method investments - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Income Statement [Abstract]
Sales	$ 32,597	$ 34,030	$ 100,254	$ 98,247
Gross profit	6,572	7,153	21,855	20,564
Net earnings (loss)	229	1,173	4,566	1,899
Share of earnings (loss) from equity method investments	132	672	359	(591)
Equity Method Investment
Income Statement [Abstract]
Sales	65,085	55,890	200,628	171,417
Gross profit	3,308	2,558	10,117	7,647
Net earnings (loss)	$ 602	$ 489	$ 1,474	$ (3,841)

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021	Aug. 31, 2021	Jun. 01, 2021
Goodwill [Line Items]
Goodwill	$ 21,901		$ 21,901		$ 12,421
Indefinite-lived intangible assets	6,695		6,695		7,342
Amortization of intangible assets	148	$ 156	488	$ 363
Minimum
Goodwill [Line Items]
Reporting unit fair value in excess of carrying amount (as a percent)						18.00%
Maximum
Goodwill [Line Items]
Reporting unit fair value in excess of carrying amount (as a percent)						195.00%
Other International Reporting Unit
Goodwill [Line Items]
Reporting unit fair value in excess of carrying amount (as a percent)						29.00%
Goodwill	372		372		381
Boots Reporting Unit
Goodwill [Line Items]
Goodwill	956		956		1,100
Indefinite-lived intangible assets	$ 6,700		$ 6,700		$ 7,300
Boots Reporting Unit \| Minimum
Goodwill [Line Items]
Reporting unit fair value in excess of carrying amount (as a percent)						5.00%
Boots Reporting Unit \| Maximum
Goodwill [Line Items]
Reporting unit fair value in excess of carrying amount (as a percent)						27.00%

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and other intangible assets - Schedule of Goodwill (Details) $ in Millions	9 Months Ended
	May 31, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 12,421
Acquisitions	9,586
Currency translation adjustments	(106)
Goodwill, ending balance	21,901
Reportable Segments \| United States
Goodwill [Roll Forward]
Goodwill, beginning balance	10,947
Acquisitions	0
Currency translation adjustments	0
Goodwill, ending balance	10,947
Reportable Segments \| International
Goodwill [Roll Forward]
Goodwill, beginning balance	1,474
Acquisitions	0
Currency translation adjustments	(106)
Goodwill, ending balance	1,368
Reportable Segments \| Walgreens Health
Goodwill [Roll Forward]
Goodwill, beginning balance	0
Acquisitions	9,586
Currency translation adjustments	0
Goodwill, ending balance	$ 9,586

- Definition

+ References + Details

Goodwill and other intangible assets - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	$ 6,741	$ 4,421
Accumulated amortization	1,853	1,826
Total amortizable intangible assets, net	4,888	2,595
Indefinite-lived intangible assets	6,695	7,342
Total intangible assets, net	11,583	9,936
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4,835	5,276
Pharmacy licenses
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	1,860	2,066
Customer relationships and loyalty card holders
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	4,364	3,522
Accumulated amortization	1,487	1,335
Primary care provider network
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	1,244	0
Accumulated amortization	43	0
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	685	361
Accumulated amortization	244	226
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	355	156
Accumulated amortization	43	8
Purchasing and payor contracts
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	15	317
Accumulated amortization	3	227
Others
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	78	65
Accumulated amortization	$ 33	$ 29

Goodwill and other intangible assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions	May 31, 2022 USD ($)
Estimated annual intangible assets amortization expense [Abstract]
2022 (Remaining period)	$ 151
2023	571
2024	551
2025	518
2026	497
2027	$ 434

Debt - Short and Long-Term Debt (Details)	Jul. 05, 2022 USD ($)	Jun. 03, 2022	May 31, 2022 USD ($)	May 31, 2022 GBP (£)	May 31, 2022 EUR (€)	Nov. 17, 2021 USD ($)	Sep. 18, 2021 USD ($)	Aug. 31, 2021 USD ($)
Debt Instrument [Line Items]
Total short-term debt			$ 2,787,000,000					$ 1,305,000,000
Total long-term debt, less current portion			10,670,000,000					$ 7,675,000,000
3.300% unsecured notes due 2021
Debt Instrument [Line Items]
Face amount			8,000,000,000
Stated interest rate							3.30%	3.30%
Total short-term debt			0					$ 1,250,000,000
Debt redeemed							$ 1,250,000,000
3.100% unsecured notes due 2022
Debt Instrument [Line Items]
Total short-term debt			731,000,000					0
Unsecured credit facility due 2023 \| Unsecured credit facility
Debt Instrument [Line Items]
Long-term debt			1,997,000,000					0
Unsecured credit facility due 2024 \| Unsecured credit facility
Debt Instrument [Line Items]
Long-term debt			998,000,000					0
Other
Debt Instrument [Line Items]
Total short-term debt			57,000,000					56,000,000
Unsecured notes
Debt Instrument [Line Items]
Other			27,000,000					29,000,000
Total long-term debt, less current portion			10,670,000,000					$ 7,675,000,000
Unsecured notes \| Total $4 billion note issuance
Debt Instrument [Line Items]
Face amount			4,000,000,000
Unsecured notes \| 3.100% unsecured notes due 2022
Debt Instrument [Line Items]
Stated interest rate								3.10%
Long-term debt			$ 0					$ 731,000,000
Unsecured notes \| 3.100% unsecured notes due 2022 \| Subsequent Event
Debt Instrument [Line Items]
Stated interest rate		3.10%
Unsecured notes \| 3.100% unsecured notes due 2022 \| Subsequent Event \| Forecast
Debt Instrument [Line Items]
Debt redeemed	$ 731,000,000
Unsecured notes \| 4.400% unsecured notes due 2042
Debt Instrument [Line Items]
Stated interest rate			4.40%	4.40%	4.40%
Long-term debt			$ 263,000,000					263,000,000
Unsecured notes \| $850 million note issuance
Debt Instrument [Line Items]
Face amount			$ 850,000,000
Unsecured notes \| 0.9500% unsecured notes due 2023
Debt Instrument [Line Items]
Face amount						$ 850,000,000
Stated interest rate			0.95%	0.95%	0.95%	0.95%
Long-term debt			$ 848,000,000					0
Unsecured notes \| Total $1.5 billion note 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			3.20%	3.20%	3.20%
Long-term debt			$ 498,000,000					497,000,000
Unsecured notes \| 4.100% unsecured notes due 2050
Debt Instrument [Line Items]
Stated interest rate			4.10%	4.10%	4.10%
Long-term debt			$ 792,000,000					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			3.45%	3.45%	3.45%
Long-term debt			$ 1,443,000,000					1,442,000,000
Unsecured notes \| 4.650% unsecured notes due 2046
Debt Instrument [Line Items]
Stated interest rate			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			3.80%	3.80%	3.80%
Long-term debt			$ 1,154,000,000					1,154,000,000
Unsecured notes \| 4.500% unsecured notes due 2034
Debt Instrument [Line Items]
Stated interest rate			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			4.80%	4.80%	4.80%
Long-term debt			$ 868,000,000					868,000,000
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			3.60%	3.60%	3.60%
Long-term debt			$ 374,000,000					408,000,000
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			2.125%	2.125%	2.125%
Long-term debt			$ 790,000,000					873,000,000
Unsecured credit facility
Debt Instrument [Line Items]
Total short-term debt			$ 1,998,000,000					$ 0

Debt - Narrative (Details) £ in Millions				9 Months Ended
Debt - Narrative (Details) £ in Millions	Nov. 17, 2021 USD ($)	Nov. 15, 2021 USD ($)	Dec. 23, 2020 USD ($)	May 31, 2022 USD ($)	May 31, 2021 USD ($)	May 31, 2021 GBP (£)	Aug. 31, 2021 USD ($)	Aug. 29, 2018 USD ($)
Debt Instrument [Line Items]
Interest paid				$ 336,000,000	$ 889,000,000
Charges for early debt extinguishment included in interest paid				$ 4,000,000	419,000,000
Maximum
Debt Instrument [Line Items]
Debt to total capitalization ratio				0.60
Commercial paper
Debt Instrument [Line Items]
Average daily short-term borrowings				$ 1,200,000,000	$ 2,300,000,000
Weighted average interest rate				0.55%	0.47%	0.47%
Commercial paper \| Guarantor Subsidiaries \| Reportable Legal Entities
Debt Instrument [Line Items]
Average daily short-term borrowings					$ 418,000,000	£ 300
Weighted average interest rate					0.43%	0.43%
Unsecured Notes
Debt Instrument [Line Items]
Charges for early debt extinguishment included in interest paid				$ 4,000,000	$ 387,000,000
Unsecured Notes \| 0.9500% Unsecured Notes due 2023
Debt Instrument [Line Items]
Face amount	$ 850,000,000
Stated interest rate	0.95%			0.95%
Redemption percentage	100.00%
Amount outstanding				$ 848,000,000			$ 0
Unsecured credit facility \| Delayed Draw Term Loan
Debt Instrument [Line Items]
Face amount		$ 5,000,000,000
Unsecured credit facility \| Delayed Draw Term Loan \| Term Loan
Debt Instrument [Line Items]
Amount outstanding				$ 5,000,000,000
Unsecured credit facility \| Delayed Draw Term Loan Credit Facility, 364-Day Facility \| Term Loan
Debt Instrument [Line Items]
Face amount		$ 2,000,000,000
Debt term		364 days
Unsecured credit facility \| Delayed Draw Term Loan Credit Facility, 364-Day Facility \| Term Loan \| Euro Currency rate
Debt Instrument [Line Items]
Debt margin rate		0.70%
Unsecured credit facility \| Delayed Draw Term Loan Credit Facility, 364-Day Facility \| Term Loan \| Alternative Base Rate
Debt Instrument [Line Items]
Debt margin rate		0.00%
Unsecured credit facility \| Delayed Draw Term Loan Credit Facility, 364-Day Facility, Tranche Two \| Term Loan \| Euro Currency rate
Debt Instrument [Line Items]
Debt margin rate		0.75%
Unsecured credit facility \| Delayed Draw Term Loan Credit Facility, 364-Day Facility, Tranche Two \| Term Loan \| SOFR Rate
Debt Instrument [Line Items]
Debt margin rate		0.00%
Unsecured credit facility \| 2020 Revolving Credit Agreement, 364-Day Facility
Debt Instrument [Line Items]
Debt term			364 days
Maximum borrowing capacity			$ 1,250,000,000
Unsecured credit facility \| 2020 Revolving Credit Agreement, 18-Month Revolving Credit Facility
Debt Instrument [Line Items]
Debt term			18 months
Maximum borrowing capacity			$ 2,250,000,000
Unsecured credit facility \| August 2018 Revolving Credit Agreement
Debt Instrument [Line Items]
Face amount								$ 3,500,000,000
Unsecured credit facility \| Term Loan \| Delayed Draw Term Loan
Debt Instrument [Line Items]
Face amount		$ 3,000,000,000
Unsecured credit facility \| Term Loan \| Delayed Draw Term Loan Credit Facility, Two-Year Facility
Debt Instrument [Line Items]
Face amount		$ 2,000,000,000
Debt term		2 years
Unsecured credit facility \| Term Loan \| Delayed Draw Term Loan Credit Facility, Two-Year Facility \| Euro Currency rate
Debt Instrument [Line Items]
Debt margin rate		0.85%
Unsecured credit facility \| Term Loan \| Delayed Draw Term Loan Credit Facility, Two-Year Facility \| Alternative Base Rate
Debt Instrument [Line Items]
Debt margin rate		0.00%
Unsecured credit facility \| Term Loan \| Delayed Draw Term Loan Credit Facility, Three-Year Facility
Debt Instrument [Line Items]
Face amount		$ 1,000,000,000
Debt term		3 years
Unsecured credit facility \| Term Loan \| Delayed Draw Term Loan Credit Facility, Three-Year Facility \| SOFR Rate
Debt Instrument [Line Items]
Debt margin rate		1.00%
Bridge Loan \| 2020 Revolving Credit Agreement, 18-Month Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 350,000,000
Letter of Credit \| August 2018 Revolving Credit Agreement
Debt Instrument [Line Items]
Face amount								$ 500,000,000

Financial instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Financial instruments (Details) - USD ($) $ in Millions	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021	Aug. 31, 2021
Foreign currency forwards \| Not Designated as Hedging Instrument \| Selling, general and administrative expenses
Derivatives, Fair Value [Line Items]
Gains and (losses) due to changes in fair value of derivative instruments	$ 0	$ (53)	$ 0	$ (177)
Foreign currency forwards \| Not Designated as Hedging Instrument \| Other income (expense)
Derivatives, Fair Value [Line Items]
Gains and (losses) due to changes in fair value of derivative instruments	319	(5)	322	(6)
Total return swap \| Not Designated as Hedging Instrument \| Selling, general and administrative expenses
Derivatives, Fair Value [Line Items]
Gains and (losses) due to changes in fair value of derivative instruments	(14)	$ 20	(24)	$ 48
Other current assets \| Foreign currency forwards \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, assets	537		537		$ 575
Fair value, assets	21		21		7
Other current assets \| Foreign currency forwards \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, assets	3,070		3,070		3,636
Fair value, assets	188		188		38
Other current assets \| Cross currency interest rate swaps \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, assets	150		150
Fair value, assets	5		5
Other current assets \| Total return swap \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, assets	232		232		224
Fair value, assets	7		7		2
Other non-current assets \| Foreign currency forwards \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, assets	9		9		6
Fair value, assets	1		1		0
Other non-current assets \| Cross currency interest rate swaps \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, assets	750		750		155
Fair value, assets	39		39		1
Other current liabilities \| Foreign currency forwards \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, liabilities	189		189		31
Fair value, liabilities	3		3		1
Other current liabilities \| Foreign currency forwards \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, liabilities	1,188		1,188		808
Fair value, liabilities	$ 17		$ 17		3
Other current liabilities \| Cross currency interest rate swaps \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, liabilities					109
Fair value, liabilities					9
Other current liabilities \| Total return swap \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, liabilities					37
Fair value, liabilities					0
Other non-current liabilities \| Foreign currency forwards \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, liabilities					23
Fair value, liabilities					1
Other non-current liabilities \| Cross currency interest rate swaps \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount, liabilities					801
Fair value, liabilities					$ 23

Fair value measurements (Details) - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021
Recurring
Assets [Abstract]
Money market funds	$ 2,173	$ 634
Investments in debt securities		663
Investments in equity securities	2	2
Recurring \| Level 1
Assets [Abstract]
Money market funds	2,173	634
Investments in debt securities		0
Investments in equity securities	2	2
Recurring \| Level 2
Assets [Abstract]
Money market funds	0	0
Investments in debt securities		0
Investments in equity securities	0	0
Recurring \| Level 3
Assets [Abstract]
Money market funds	0	0
Investments in debt securities		663
Investments in equity securities	0	0
Recurring \| Foreign currency forwards
Assets [Abstract]
Derivative asset	210	46
Liabilities [Abstract]
Derivative liability	20	5
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	210	46
Liabilities [Abstract]
Derivative liability	20	5
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	44	1
Liabilities [Abstract]
Derivative liability		32
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	44	1
Liabilities [Abstract]
Derivative liability		32
Recurring \| Cross currency interest rate swaps \| Level 3
Assets [Abstract]
Derivative asset	0	0
Liabilities [Abstract]
Derivative liability		0
Recurring \| Total return swap
Assets [Abstract]
Derivative asset	7	2
Recurring \| Total return swap \| Level 1
Assets [Abstract]
Derivative asset	0	0
Recurring \| Total return swap \| Level 2
Assets [Abstract]
Derivative asset	7	2
Recurring \| Total return swap \| Level 3
Assets [Abstract]
Derivative asset	0	$ 0
Carrying Value
Liabilities [Abstract]
Fair value of long-term notes outstanding	8,400
Estimate of Fair Value Measurement
Liabilities [Abstract]
Carrying value of long-term notes outstanding	$ 8,100

Commitments and contingencies (Details) $ in Millions	Jun. 17, 2022 USD ($)	May 05, 2022 USD ($)	May 31, 2022 USD ($) case	Jun. 30, 2021 case
Washtenaw County Employees’ Retirement System v. Walgreen Co. et al. \| Pending Litigation
Loss Contingencies [Line Items]
Estimated settlement amount, liability \| $			$ 105.0
City and Cnty. of San Francisco, et al. v. Purdue Pharma L.P., et al. \| Pending Litigation
Loss Contingencies [Line Items]
Number of litigation cases outstanding \| case			1
Cnty. of Lake, Ohio v. Purdue Pharma L.P., et al. \| Pending Litigation
Loss Contingencies [Line Items]
Number of litigation cases outstanding \| case			2
The Cherokee Nation v. McKesson Corp., et al. \| Pending Litigation
Loss Contingencies [Line Items]
Number of litigation cases outstanding \| case			1
Bellweather Litigation Cases \| Pending Litigation
Loss Contingencies [Line Items]
Number of litigation cases outstanding \| case			5
Consolidated Cases in N.D. Ohio \| Pending Litigation
Loss Contingencies [Line Items]
Number of litigation cases outstanding \| case			2
Consolidated Cases in New York State Court
Loss Contingencies [Line Items]
Number of litigation cases outstanding \| case				2
Consolidated Cases in State of Florida \| Pending Litigation
Loss Contingencies [Line Items]
Estimated settlement amount, liability \| $		$ 683.0
Estimated settlement amount \| $		683.0
Estimated settlement amount, noncurrent liability \| $		$ 620.0	$ 585.6
Settlement period		18 years
Estimated settlement amount, current liability \| $		$ 63.0	$ 97.4
Consolidated Cases in State of Florida \| Pending Litigation \| Subsequent Event
Loss Contingencies [Line Items]
Payments for legal settlements \| $	$ 97.4

Income taxes (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Income taxes (Details) - USD ($) $ in Millions	May 31, 2021	May 31, 2022	May 31, 2021
Income Tax Examination [Line Items]
Effective tax rate	32.80%	4.30%	7.40%
Equity earnings		$ 359	$ (577)
Income taxes paid		$ 291	$ 305
Option Care Health
Income Tax Examination [Line Items]
Equity earnings	$ 576

Retirement benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Retirement benefits (Details) - USD ($) $ in Millions	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Components of net periodic benefit costs [Abstract]
Total net periodic pension income	$ (32)	$ (48)	$ (97)	$ (140)
Employer cash contributions to defined benefit pension plans			20
Expected employer cash contributions to defined benefit plan in current fiscal year	21		21
Selling, general and administrative expenses
Components of net periodic benefit costs [Abstract]
Service costs	1	2	4	4
Other income (expense)
Components of net periodic benefit costs [Abstract]
Interest costs	37	36	115	104
Expected returns on plan assets/other	(70)	(85)	(216)	(248)
United States
Components of net periodic benefit costs [Abstract]
Profit sharing provision expense	58	54	181	166
Foreign Plan
Components of net periodic benefit costs [Abstract]
Cost recognized in the consolidated condensed statements of earnings	$ 21	$ 25	$ 69	$ 77

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 30,867	$ 21,625	$ 23,822	$ 21,136
Total other comprehensive (loss) income, net	(416)	131	(637)	607
Ending balance	30,382	22,596	30,382	22,596
Pension/ post-retirement obligations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(372)	(739)	(359)	(748)
Other comprehensive income (loss) before reclassification adjustments	0	0	0	16
Amounts reclassified from AOCI	(5)	(2)	(16)	(6)
Other			(6)
Tax benefit (provision)	1	0	5	(3)
Total other comprehensive (loss) income, net	(4)	(1)	(17)	8
Ending balance	(376)	(740)	(376)	(740)
Unrealized gain (loss) on cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9)	(18)	(10)	(31)
Other comprehensive income (loss) before reclassification adjustments	4	(3)	5	11
Amounts reclassified from AOCI	1	14	2	16
Other			0
Tax benefit (provision)	(1)	(3)	(1)	(7)
Total other comprehensive (loss) income, net	4	8	6	21
Ending balance	(5)	(10)	(5)	(10)
Net investment hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(11)	(90)	(35)	(34)
Other comprehensive income (loss) before reclassification adjustments	176	(30)	207	(110)
Amounts reclassified from AOCI	0	0	0	0
Other			0
Tax benefit (provision)	(40)	7	(48)	31
Total other comprehensive (loss) income, net	135	(23)	159	(79)
Ending balance	124	(113)	124	(113)
Unrealized gain on available for sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		0	96	0
Other comprehensive income (loss) before reclassification adjustments		5	450	5
Amounts reclassified from AOCI		0	(577)	0
Other			0
Tax benefit (provision)		0	31	0
Total other comprehensive (loss) income, net		5	(96)	5
Ending balance	0	5	0	5
Share of OCI of equity method investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(154)	10	(29)	(10)
Other comprehensive income (loss) before reclassification adjustments	(48)	2	(213)	21
Amounts reclassified from AOCI	25	0	25	0
Other			0
Tax benefit (provision)	6	(6)	46	(5)
Total other comprehensive (loss) income, net	(17)	(4)	(143)	16
Ending balance	(171)	6	(171)	6
Cumulative currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,782)	(2,469)	(1,772)	(2,948)
Other comprehensive income (loss) before reclassification adjustments	(515)	141	(525)	615
Amounts reclassified from AOCI	0	1	0	6
Other			0
Tax benefit (provision)	0	0	0	0
Total other comprehensive (loss) income, net	(515)	142	(525)	621
Ending balance	(2,297)	(2,327)	(2,297)	(2,327)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(2,328)	(3,306)	(2,109)	(3,771)
Other comprehensive income (loss) before reclassification adjustments	(383)	115	(77)	558
Amounts reclassified from AOCI	20	13	(566)	17
Other			(6)
Tax benefit (provision)	(34)	(1)	32	17
Total other comprehensive (loss) income, net	(397)	127	(616)	591
Ending balance	$ (2,724)	$ (3,180)	$ (2,724)	$ (3,180)

Segment reporting (Details) $ in Millions	3 Months Ended		9 Months Ended
Segment reporting (Details) $ in Millions	May 31, 2022 USD ($)	May 31, 2021 USD ($)	May 31, 2022 USD ($) segment	May 31, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment			3
Segment Reporting Information [Line Items]
Sales	$ 32,597	$ 34,030	$ 100,254	$ 98,247
Adjusted operating income	955	1,459	4,389	3,881
Adjustments to equity earnings (loss) in AmerisourceBergen	(60)	(48)	(155)	(1,575)
Transformational cost management	(185)	(60)	(458)	(338)
Acquisition-related amortization	(201)	(158)	(616)	(367)
Certain legal and regulatory accruals and settlements	(734)	0	(734)	(60)
LIFO provision	(55)	(51)	(64)	(85)
Acquisition-related costs	(40)	(9)	(155)	(25)
Operating (loss) income	(320)	1,134	2,209	1,432
Reportable Segments \| United States
Segment Reporting Information [Line Items]
Sales	26,695	28,743	82,394	83,250
Adjusted operating income	966	1,471	4,243	3,789
Reportable Segments \| International
Segment Reporting Information [Line Items]
Sales	5,305	5,288	16,686	14,998
Adjusted operating income	174	94	563	326
Reportable Segments \| Walgreens Health
Segment Reporting Information [Line Items]
Sales	596	0	1,173	0
Adjusted operating income	(129)	(17)	(218)	(31)
Corporate and Other
Segment Reporting Information [Line Items]
Sales	1	0	0	0
Adjusted operating income	$ (56)	$ (88)	$ (198)	$ (202)

Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Sales (Details) - USD ($) $ in Millions	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Disaggregation of Revenue [Line Items]
Sales	$ 32,597	$ 34,030	$ 100,254	$ 98,247
Reportable Segments \| United States
Disaggregation of Revenue [Line Items]
Sales	26,695	28,743	82,394	83,250
Reportable Segments \| United States \| Pharmacy
Disaggregation of Revenue [Line Items]
Sales	19,656	21,770	60,581	63,133
Reportable Segments \| United States \| Retail
Disaggregation of Revenue [Line Items]
Sales	7,039	6,973	21,814	20,117
Reportable Segments \| International
Disaggregation of Revenue [Line Items]
Sales	5,305	5,288	16,686	14,998
Reportable Segments \| International \| Pharmacy
Disaggregation of Revenue [Line Items]
Sales	901	958	2,876	2,791
Reportable Segments \| International \| Retail
Disaggregation of Revenue [Line Items]
Sales	1,618	1,455	5,294	4,618
Reportable Segments \| International \| Wholesale
Disaggregation of Revenue [Line Items]
Sales	2,786	2,875	8,516	7,588
Reportable Segments \| Walgreens Health
Disaggregation of Revenue [Line Items]
Sales	596	0	1,173	0
Corporate and Other
Disaggregation of Revenue [Line Items]
Sales	$ 1	$ 0	$ 0	$ 0

Related parties - Schedule of Related Parties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021	Aug. 31, 2021
Related Party Transactions [Abstract]
Purchases, net	$ 15,439	$ 15,947	$ 46,293	$ 46,449
Trade accounts payable, net of Trade accounts receivable	$ 7,322		$ 7,322		$ 6,589

Related parties - Narrative (Details) - USD ($) $ in Millions	Dec. 28, 2021	Nov. 24, 2021
Affiliated Entity \| Steve Shulman \| VillageMD
Related Party Transaction [Line Items]
Percentage of outstanding shares owned	1.20%
VillageMD
Related Party Transaction [Line Items]
Value of purchase tender offer		$ 1,900
VillageMD \| Affiliated Entity
Related Party Transaction [Line Items]
Value of purchase tender offer	$ 1,900
Payments for stock consideration	$ 117
Number of shares tendered (in shares)	287,781

Supplemental information - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021	Feb. 28, 2022	Aug. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable from related party	$ 1,100		$ 1,100
Accumulated depreciation and amortization on property, plant, and equipment	13,000		13,000			$ 13,100
Redeemable non-controlling interest	$ 775		$ 775		$ 812	319
Antidilutive securities excluded from EPS calculations (in shares)	17.4	15.9	17.2	17.1
Trade Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables	$ 3,900		$ 3,900			$ 4,500

- Definition

Carrying amount, attributable to parent and noncontrolling interests, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.

+ References + Details

Supplemental information - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Supplemental Cash Flow Elements [Abstract]
Depreciation expense	$ 331	$ 352	$ 1,014	$ 1,042
Intangible asset and other amortization	148	156	488	363
Total depreciation and amortization expense	$ 478	$ 507	$ 1,502	$ 1,404

Supplemental information - Summary of Cash, Cash Equivalents, Marketable Securities and Restricted Cash (Details) - USD ($) $ in Millions	May 31, 2022	Aug. 31, 2021	May 31, 2021	Aug. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents	$ 2,285	$ 559
Marketable securities	2,173	634
Restricted cash (included in other current assets)	82	77
Cash, cash equivalents, marketable securities and restricted cash	$ 4,541	$ 1,270	$ 1,803	$ 746

Supplemental information - Schedule of Redeemable Non-controlling Interest (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	May 31, 2022	May 31, 2022	Jan. 31, 2022	Nov. 24, 2021	Nov. 23, 2021
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	$ 812	$ 319
Recognition upon acquisition of subsidiary	0	2,489
Acquisition of non-controlling interests	0	(2,047)
Redemption price adjustments	(22)
Redemption price adjustments		68
Net loss attributable to redeemable noncontrolling interest	(12)	(45)
Currency translation adjustments and other	(3)	(9)
Ending balance	$ 775	775
VillageMD
Conversion of Stock [Line Items]
Acquisition of additional interest in subsidiary		$ 1,900
Outstanding equity interest percentage				63.00%	30.00%
McKesson Corporation
Conversion of Stock [Line Items]
Outstanding equity interest percentage			30.00%

Supplemental information - Summary of Dividends per Share (Details) - $ / shares	3 Months Ended						9 Months Ended
	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	May 31, 2021	Feb. 28, 2021	Nov. 30, 2020	May 31, 2022	May 31, 2021
Cash and Cash Equivalents [Abstract]
Cash dividends declared (in dollars per share)	$ 0.4775	$ 0.4775	$ 0.4775	$ 0.4675	$ 0.4675	$ 0.4675	$ 1.4325	$ 1.4025

Subsequent events (Details) - USD ($)	Jun. 17, 2022	Jul. 05, 2022	Jun. 03, 2022	Aug. 31, 2021
3.100% Unsecured Notes due 2022 \| Unsecured Notes
Subsequent Event [Line Items]
Stated interest rate				3.10%
Subsequent Event \| 2022 Revolving Credit Agreement, Five-Year Facility \| Unsecured credit facility
Subsequent Event [Line Items]
Debt term	5 years
Maximum borrowing capacity	$ 3,500,000,000
Subsequent Event \| 2022 Revolving Credit Agreement, Eighteen-Month Facility \| Unsecured credit facility
Subsequent Event [Line Items]
Debt term	18 months
Maximum borrowing capacity	$ 1,500,000,000
Subsequent Event \| 3.100% Unsecured Notes due 2022 \| Unsecured Notes
Subsequent Event [Line Items]
Stated interest rate			3.10%
Subsequent Event \| 3.100% Unsecured Notes due 2022 \| Unsecured Notes \| Forecast
Subsequent Event [Line Items]
Debt redeemed		$ 731,000,000