0001618921-22-000064 | 10-K | XBRL Viewer | Walgreens Boots Alliance INC

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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Aug. 31, 2022	Sep. 30, 2022	Feb. 28, 2021
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Aug. 31, 2022
Current Fiscal Year End Date	--08-31
Document Transition Report	false
Entity File Number	001-36759
Entity Registrant Name	WALGREENS BOOTS ALLIANCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1758322
Entity Address, Address Line One	108 Wilmot Road
Entity Address, City or Town	Deerfield
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	847
Local Phone Number	315-3700
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 23.2
Entity Common Stock, Shares Outstanding (in shares)		864,813,091
Documents Incorporated by Reference	Portions of the definitive proxy statement for our Annual Meeting of Stockholders planned to be held on January 26, 2023 are incorporated by reference into Part III of this Form 10-K as indicated herein.
Entity Central Index Key	0001618921
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock, $0.01 par value
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	WBA
Security Exchange Name	NASDAQ
3.600% Walgreens Boots Alliance, Inc. notes due 2025
Document Information [Line Items]
Title of 12(b) Security	3.600% Walgreens Boots Alliance, Inc. notes due 2025
Trading Symbol	WBA25
Security Exchange Name	NASDAQ
2.125% Walgreens Boots Alliance, Inc. notes due 2026
Document Information [Line Items]
Title of 12(b) Security	2.125% Walgreens Boots Alliance, Inc. notes due 2026
Trading Symbol	WBA26
Security Exchange Name	NASDAQ

Audit Information	12 Months Ended
Audit Information	Aug. 31, 2022
Audit Information [Abstract]
Auditor Location	Chicago, Illinois
Auditor Name	DELOITTE & TOUCHE LLP
Auditor Firm ID	34

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,358	$ 559
Marketable securities	1,114	634
Accounts receivable, net	5,017	5,663
Inventories	8,353	8,159
Other current assets	1,059	800
Total current assets	16,902	15,814
Non-current assets:
Property, plant and equipment, net	11,729	12,247
Operating lease right-of-use assets	21,259	21,893
Goodwill	22,280	12,421
Intangible assets, net	10,730	9,936
Equity method investments (see Note 6)	5,495	6,987
Other non-current assets	1,730	1,987
Total non-current assets	73,222	65,471
Total assets	90,124	81,285
Current liabilities:
Short-term debt	1,059	1,305
Trade accounts payable (see Note 19)	11,255	11,136
Operating lease obligations	2,286	2,259
Accrued expenses and other liabilities	7,899	7,260
Income taxes	84	94
Total current liabilities	22,583	22,054
Non-current liabilities:
Long-term debt	10,615	7,675
Operating lease obligations	21,517	22,153
Deferred income taxes	1,442	1,850
Other non-current liabilities	3,560	3,413
Total non-current liabilities	37,134	35,091
Commitments and contingencies (see Note 11)
Total liabilities	59,717	57,145
Redeemable non-controlling interests	1,042	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 August 31, 2022 and August 31, 2021	12	12
Paid-in capital	10,950	10,988
Retained earnings	37,801	35,121
Accumulated other comprehensive loss	(2,805)	(2,109)
Treasury stock, at cost; 307,874,161 shares at August 31, 2022 and 307,139,982 shares at August 31, 2021	(20,683)	(20,593)
Total Walgreens Boots Alliance, Inc. shareholders’ equity	25,275	23,419
Non-controlling interests	4,091	402
Total equity	29,366	23,822
Total liabilities, redeemable non-controlling interests and equity	$ 90,124	$ 81,285

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Aug. 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)	307,874,161	307,139,982

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Adoption of new accounting standards	Common stock	Treasury stock	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, 2019			895,387,502
Beginning balance at Aug. 31, 2019	$ 24,152	$ (442)	$ 12	$ (19,057)	$ 10,639	$ (3,897)	$ 35,815	$ (442)	$ 641
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	424						456		(32)
Other comprehensive (loss), net of tax	148					126			22
Dividends declared and distributions	(1,751)						(1,618)		(133)
Treasury stock purchases (in shares)			(32,055,576)
Treasury stock purchases	(1,589)			(1,589)
Employee stock purchase and option plans (in shares)			2,271,593
Employee stock purchase and option plans	55			72	(17)
Stock-based compensation	137				137
Redeemable non-controlling interests redemption price adjustments and other	2				2		0		0
Ending balance (in shares) at Aug. 31, 2020			865,603,519
Ending balance at Aug. 31, 2020	21,136	$ (6)	$ 12	(20,575)	10,761	(3,771)	34,210	$ (3)	498	$ (3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	2,512						2,542		(31)
Other comprehensive (loss), net of tax	1,669					1,663			6
Dividends declared and distributions	(1,629)						(1,629)		0
Treasury stock purchases (in shares)			(3,000,000)
Treasury stock purchases	(110)			(110)
Employee stock purchase and option plans (in shares)			2,770,117
Employee stock purchase and option plans	59			92	(33)
Stock-based compensation	155				155
Business combination	120				120
Redeemable non-controlling interests redemption price adjustments and other	(84)				(15)				(69)
Ending balance (in shares) at Aug. 31, 2021			865,373,636
Ending balance at Aug. 31, 2021	23,822		$ 12	(20,593)	10,988	(2,109)	35,121		402
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)	4,065
Net earnings (loss)	4,138						4,337		(199)
Other comprehensive (loss), net of tax	(728)					(696)			(32)
Dividends declared and distributions	(1,664)						(1,657)		(7)
Treasury stock purchases (in shares)			(3,910,000)
Treasury stock purchases	(187)			(187)
Employee stock purchase and option plans (in shares)			3,175,821
Employee stock purchase and option plans	27			97	(70)
Stock-based compensation	228				133				95
Acquisition of non-controlling interests	(44)				74				(118)
Business combination	3,944				0				3,944
Redeemable non-controlling interests redemption price adjustments and other	(170)				(175)				5
Ending balance (in shares) at Aug. 31, 2022			864,639,457
Ending balance at Aug. 31, 2022	$ 29,366		$ 12	$ (20,683)	$ 10,950	$ (2,805)	$ 37,801		$ 4,091

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Statement [Abstract]
Sales	$ 132,703	$ 132,509	$ 121,982
Cost of sales	104,437	104,442	95,905
Gross profit	28,265	28,067	26,078
Selling, general and administrative expenses	27,295	24,586	25,436
Equity earnings (loss) in AmerisourceBergen	418	(1,139)	341
Operating income	1,387	2,342	982
Other income, net	2,998	558	77
Earnings before interest and income tax provision	4,385	2,900	1,060
Interest expense, net	400	905	613
Earnings before income tax provision	3,985	1,995	446
Income tax (benefit) provision	(30)	667	339
Post tax earnings from other equity method investments	50	627	31
Net earnings from continuing operations	4,065	1,955	138
Net earnings from discontinued operations	0	557	286
Net earnings	4,065	2,512	424
Net (loss) attributable to non-controlling interests - continuing operations	(271)	(39)	(42)
Net earnings attributable to non-controlling interests - discontinued operations	0	9	9
Net earnings attributable to Walgreens Boots Alliance, Inc.	4,337	2,542	456
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	4,337	1,994	180
Discontinued operations	$ 0	$ 548	$ 277
Basic net earnings per common share:
Continuing operations (in dollars per share)	$ 5.02	$ 2.31	$ 0.20
Discontinued operations (in dollars per share)	0	0.63	0.31
Total (in dollars per share)	5.02	2.94	0.52
Diluted net earnings per common share:
Continuing operations (in dollars per share)	5.01	2.30	0.20
Discontinued operations (in dollars per share)	0	0.63	0.31
Total (in dollars per share)	$ 5.01	$ 2.93	$ 0.52
Weighted average common shares outstanding:
Basic (in shares)	864.4	864.8	879.4
Diluted (in shares)	865.9	866.4	880.3

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Comprehensive income:
Net earnings (loss)	$ 4,065	$ 2,512	$ 424
Other comprehensive (loss) income, net of tax:
Pension/post-retirement obligations	203	389	(700)
Unrealized gain (loss) on cash flow hedges	7	21	(6)
Net investment hedges gain (loss)	248	(1)	(90)
Movement on available for sale debt securities	(95)	96	0
Share of other comprehensive (loss) of equity method investments	(226)	(18)	(14)
Currency translation adjustments	(865)	1,182	958
Total other comprehensive (loss) income	(728)	1,669	148
Total comprehensive income	3,337	4,181	572
Comprehensive (loss) attributable to non-controlling interests	(303)	(25)	(10)
Comprehensive income attributable to Walgreens Boots Alliance, Inc.	$ 3,640	$ 4,205	$ 582

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Cash flows from operating activities:
Net earnings (loss)	$ 4,065	$ 2,512	$ 424
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,990	1,973	1,927
Deferred income taxes	(366)	233	(43)
Stock compensation expense	391	155	137
(Earnings) loss from equity method investments	(468)	498	(382)
Goodwill and intangible impairments	834	49	2,016
Loss on early extinguishment of debt	6	414	0
Gain on previously held investment interests	(2,576)	0	0
Gain on sale of business	0	(322)	0
Gain on sale of equity method investments	(559)	(321)	0
Impairment of equity method investments and investments in debt and equity securities	233	0	0
Other	(146)	(64)	464
Changes in operating assets and liabilities:
Accounts receivable, net	808	(1,451)	163
Inventories	(433)	165	63
Other current assets	(72)	(46)	(31)
Trade accounts payable	244	842	(25)
Accrued expenses and other liabilities	(138)	1,046	1,008
Income taxes	(51)	160	(221)
Other non-current assets and liabilities	137	(288)	(16)
Net cash provided by operating activities	3,899	5,555	5,484
Cash flows from investing activities:
Additions to property, plant and equipment	(1,734)	(1,379)	(1,374)
Proceeds from sale-leaseback transactions	1,308	856	724
Proceeds from sale of business, net of cash disposed	0	5,527	0
Proceeds from sale of other assets	1,334	453	90
Business, investment and asset acquisitions, net of cash acquired	(2,189)	(1,431)	(718)
Other	216	46	(19)
Net cash (used for) provided by investing activities	(1,064)	4,072	(1,297)
Cash flows from financing activities:
Net change in short-term debt with maturities of 3 months or less	(11)	(909)	(161)
Proceeds from debt	11,958	12,726	20,367
Payments of debt	(8,360)	(15,257)	(21,414)
Acquisition of non-controlling interests	(2,108)	0	0
Stock purchases	(187)	(110)	(1,589)
Proceeds related to employee stock plans, net	27	59	55
Cash dividends paid	(1,659)	(1,617)	(1,747)
Early debt extinguishment	(1,591)	(3,687)	0
Other	432	(241)	(157)
Net cash used for financing activities	(1,499)	(9,036)	(4,647)
Effect of exchange rate changes on cash, cash equivalents, marketable securities and restricted cash	(47)	(66)	(1)
Changes in cash, cash equivalents, marketable securities and restricted cash
Net increase (decrease) in cash, cash equivalents, marketable securities and restricted cash	1,288	525	(460)
Cash, cash equivalents, marketable securities and restricted cash at beginning of period	1,270	746	1,207
Cash, cash equivalents, marketable securities and restricted cash at end of period	$ 2,558	$ 1,270	$ 746

Summary of major accounting policies

12 Months Ended

Aug. 31, 2022

Accounting Policies [Abstract]

Summary of major accounting policies

Organization

Walgreens Boots Alliance Inc. and its subsidiaries (the “Company”), is a global leader in retail pharmacy and is positioning itself to become a leading provider of healthcare services. Its operations are conducted through three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare. See Note 17. Segment reporting and Note 18. Sales, for further information.

Basis of presentation

The Consolidated Financial Statements include all subsidiaries in which the Company holds a controlling interest and certain Variable Interest Entities (VIEs) for which the Company is the primary beneficiary. The Company uses the equity-method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to use judgment in the application of accounting policies, including making estimates and assumptions. The Company bases its estimates on the information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances, including estimates of the impact of COVID-19. 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 fiscal 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.

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 2022, the Company is aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare. In the fourth quarter of fiscal 2022, the Company changed the name of two reportable segments to better align with the Company’s business activities, structure and strategy. The “United States” segment was renamed to “U.S. Retail Pharmacy” and the “Walgreens Health” segment was renamed to “U.S. Healthcare”. The segment name changes did not result in any change to the composition of the segments and therefore no change to the historical results of segment operations. The information for these segments for all periods included in these consolidated financial statements has been presented using the new names. See Note 17. Segment reporting for further information.

Unless otherwise specified, disclosures in these Consolidated Financial Statements reflect continuing operations only. Certain prior period data, primarily related to discontinued operations, have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation. See Note 2. Discontinued operations, for further information.

Certain amounts in the Consolidated Financial Statements and associated notes may not add due to rounding. Percentages have been calculated using unrounded amounts for all periods presented.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. Credit and debit card receivables, which generally settle within one to seven business days, of $127 million and $146 million were included in cash and cash equivalents at August 31, 2022 and 2021, respectively.

Restricted cash and other cash flows from operating activities

Restricted cash

The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agreements and cash restricted by law and other obligations.

The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to total cash, cash equivalents, marketable securities and restricted cash in the Consolidated Statements of Cash Flows as of August 31, 2022 and 2021, (in millions):


	August 31, 2022		August 31, 2021
Cash and cash equivalents	$	1,358	$	559
Marketable securities	1,114		634
Restricted cash - (included in other current assets)	86		77
Cash, cash equivalents, marketable securities and restricted cash	$	2,558	$	1,270

Other cash flows from operating activities

Other cash flows from operating activities of $(146) million for fiscal 2022 include gains on sale-leaseback transactions of $619 million offset by long-lived asset impairment of $380 million. Other cash flows from operating activities of $(64) million for fiscal 2021 include gains on sale-leaseback transactions of $367 million offset by asset impairment of $203 million. Other cash flows from operating activities of $464 million for fiscal 2020 include asset impairment of $462 million offset by gains on sale-leaseback transactions of $308 million.

Accounts receivable

Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers and amounts due from third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies). Trade receivables were $4.0 billion and $4.5 billion at August 31, 2022 and 2021, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from AmerisourceBergen (see Note 19. Related parties), were $1.1 billion and $1.1 billion at August 31, 2022 and 2021, respectively.

Charges for the Company’s expected credit losses are recognized based upon all available information regarding the collectability of receivables, including historical information, current conditions and reasonable and supportable forecasts of future economic conditions over the short contractual life of the receivable. The allowance for expected credit losses for trade receivables at August 31, 2022 and 2021 were $66 million and $53 million, respectively.

Inventories

The Company values inventories on a lower of cost and net realizable value or market basis. Inventories include product costs, inbound freight, direct labor, warehousing costs for retail pharmacy operations, distribution of products, and vendor allowances not classified as a reduction of advertising expense.

The Company’s U.S. Retail Pharmacy segment inventory is accounted for using the last-in-first-out (“LIFO”) method. The total carrying value of the segment inventory accounted for under the LIFO method was $6.5 billion and $6.2 billion at August 31, 2022 and 2021, respectively. At August 31, 2022 and 2021, U.S. Retail Pharmacy segment inventory would have been greater by $3.4 billion and $3.3 billion, respectively, if it had been valued on a lower of first-in-first-out (“FIFO”) cost and net realizable value.

The Company’s International segment inventory is accounted for using average cost and the FIFO method. The total carrying value of the inventory for International segment was $1.8 billion and $2.0 billion at August 31, 2022 and 2021, respectively.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Major repairs, which extend the useful life of an asset, are capitalized; routine maintenance and repairs are charged against earnings. Depreciation is provided on a straight-line basis over the estimated useful lives of owned assets. Leasehold improvements, equipment under finance lease and finance lease properties are amortized over their respective estimated useful life or over the term of the lease, whichever is shorter. The majority of the Company’s fixtures and equipment is depreciated under the composite method of depreciation.

The following table summarizes the Company’s property, plant and equipment (in millions) and estimated useful lives (in years):


	Estimated useful life	2022		2021
Land and land improvements	20	$	2,333	$	2,782
Buildings and building improvements	3 to 50	6,996		7,453
Fixtures and equipment	3 to 20	9,375		9,974
Capitalized system development costs and software	3 to 10	3,087		2,802
Assets under construction 1		1,785		1,294
Finance lease properties		996		1,016
		$	24,572	$	25,321
Less: accumulated depreciation and amortization		12,843		13,073
Balance at end of year		$	11,729	$	12,247

1.In fiscal 2022, Assets under construction have been presented separately. Prior period data has been reclassified to conform to the current period presentation.

The Company capitalizes application development stage costs for internally developed software. These costs are amortized over a three to ten year period. Amortization expense for capitalized system development costs and software was $307 million, $284 million and $300 million in fiscal 2022, 2021 and 2020, respectively. Unamortized costs were $1.1 billion and $1.1 billion at August 31, 2022 and 2021, respectively.

Depreciation and amortization expense for property, plant and equipment, including capitalized system development costs and software was $1.4 billion for fiscal 2022, 2021 and 2020.

Leases

The Company leases certain retail stores, primary care clinics, warehouses, distribution centers, office space, land and equipment. Initial terms for leased premises in the United States are typically 15 to 25 years, followed by additional terms containing renewal options at five-year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options.

The lease term of real estate leases includes renewal options that are reasonably certain of being exercised. Options to extend are considered reasonably certain of being exercised based on evaluation if there are significant investments within the leased property which have useful lives greater than the non-cancelable lease term, performance of the underlying store and the Company’s economic and strategic initiatives. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheets.

The Company determines if an arrangement contains a lease at the inception of a contract. The lease classification is determined at the commencement date. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease during the lease term. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments during the lease term. Lease commencement is the date the Company has the right to control the property. The Company utilizes its incremental borrowing rate to discount the lease payments. The incremental borrowing rate is based on the Company's estimated rate of interest for a collateralized borrowing over a similar term as the lease term. The operating lease right-of-use assets also include lease payments made before commencement, lease incentives and are recorded net of impairment. Operating leases are expensed on a straight line basis over the lease term.

The Company accounts for lease components and non-lease components as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the right-of-use assets or lease liabilities. These are expensed as incurred. The Company has real estate leases which require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs and hence are not included in the lease payments used to calculate lease liability. Other real estate leases contain one fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. The Company does not separately account for the land portion of the leases involving land and building.

Finance leases are recognized within property, plant and equipment and as a finance lease liability within accrued expenses and other liabilities and other noncurrent liabilities.

See Note 5. Leases, for further information.

Business combinations

The Company allocates the fair value of purchase consideration to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires estimates and the use of valuation techniques when a market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. If the Company obtains new information about facts and circumstances that existed as of the acquisition date during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed.

Variable interest entities

The Company consolidates certain subsidiaries of Village Practice Management Company, LLC (“VillageMD”) which are clinical entities and managed services organizations (collectively, the “Entities”) where VillageMD has a controlling financial interest. The Entities were established to employ healthcare providers, contract with payors, or to deliver healthcare services to patients and are designed to comply with certain regulatory and legal requirements.

The Company generally has no equity interests in the Entities. The Entities are variable interest entities because there is insufficient equity at-risk in the Entities to finance their operations without additional financial support. The Company's service agreements (“SAs”) are variable interests in the Entities because they transfer substantially all the residual risks and rewards of ownership in the Entities to the Company.

The Company has the power to direct the activities of the Entities that most significantly impact their economic performance through the SAs. The activities that most significantly impact the economic performance of the Entities pertain to establishing the scope of services provided, fees charged for clinical services, and managing policies and procedures related to management of the Company’s patient population.

The SAs generally provide the Company with rights to substantially all the earnings of the Entities and obligate the Company to fund losses of the Entities. As a result, the Company is the primary beneficiary of the Entities and consolidates the Entities. The assets and liabilities of the Entities and the Entities’ results of operations are presented in the Company’s consolidated financial statements.

The Entities’ revenues consist of amounts recognized for services provided to patients. Cost of sales and Selling, general and administrative expenses consist primarily of provider compensation expenses as well as clinical operating and support costs. The Company is also exposed to the risk of loss from the Entities’ involvement with risk-based arrangements.

Goodwill and indefinite-lived intangible assets

Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in business combinations. Goodwill is assigned to reporting units. Reporting units are aggregated and deemed a single reporting unit if the components have similar economic characteristics. Acquired intangible assets are recorded at fair value.

Goodwill and indefinite-lived intangible assets are evaluated for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that could more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value. As part of the Company’s impairment analysis, fair value of a reporting unit is generally determined using the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping, as well as recent guideline transactions.

The Company also compares the sum of estimated fair values of reporting units to the Company’s fair value as implied by the market value of its equity securities. This comparison provides an indication that, in total, assumptions and estimates are reasonable. Future declines in the overall market value of the Company’s equity securities may provide an indication that the fair value of one or more reporting units has declined below its carrying value.

Indefinite-lived intangible assets are tested for impairment by comparing the estimated fair value of the asset to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized and the asset is written down to its estimated fair value

See Note 7. Goodwill and other intangible assets, for additional disclosure regarding the Company’s intangible assets.

Equity method investments

The Company uses the equity method of accounting for equity investments if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of these investees is included in consolidated net earnings. Judgment regarding the level of influence over each equity method investment includes considering key factors such as the Company’s ownership interest, legal form of the investee (e.g. limited liability partnership), representation on the board of directors, participation in policy-making decisions and material intra-entity transactions.

The Company evaluates equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified.

See Note 6. Equity method investments, for further information.

Financial instruments

The Company uses derivative instruments to hedge its exposure to market risks, including interest rate and currency risks, arising from operating and financing risks. In accordance with its risk management policies, the Company does not hold or issue derivative instruments for trading or speculative purposes.

Derivatives are recognized on the Consolidated Balance Sheets at their fair values. When the Company becomes a party to a derivative instrument and intends to apply hedge accounting, it formally documents the hedge relationship and the risk management objective for undertaking the hedge which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value of a derivative instrument depends on whether the Company had designated it in a qualifying hedging relationship and on the type of hedging relationship. The Company applies the following accounting policies:

•Changes in the fair value of a derivative designated as a fair value hedge, along with the gain or loss on the hedged asset or liability attributable to the hedged risk, are recorded in the Consolidated Statements of Earnings in the same line item, generally interest expense, net.

•Changes in the fair value of a derivative designated as a cash flow hedge are recorded in accumulated other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income and reclassified into earnings in the period or periods during which the hedged item affects earnings and is presented in the same line item as the earnings effect of the hedged item.

•Changes in the fair value of a derivative designated as a hedge of a net investment in a foreign operation are recorded in cumulative translation adjustments within accumulated other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. Recognition in earnings of amounts previously recorded in cumulative translation adjustments is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged investments in foreign operations.

•Changes in the fair value of a derivative not designated in a hedging relationship are recognized in the Consolidated Statements of Earnings.

Cash receipts or payments on a settlement of a derivative contract are reported in the Consolidated Statements of Cash Flows consistent with the nature of the underlying hedged item.

For derivative instruments designated as hedges, the Company assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Highly effective means that cumulative changes in the fair value of the derivative are between 80% and 125% of the cumulative changes in the fair value of the hedged item. In addition, when the Company determines that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When it is probable that a hedged forecasted transaction will not occur, the Company discontinues hedge accounting for the affected portion of the forecasted transaction and reclassifies any gains or losses in accumulated other comprehensive income (loss) to earnings in the Consolidated Statement of Earnings. When a derivative in a hedge relationship is terminated or the hedged item is sold, extinguished or terminated, hedge accounting is discontinued prospectively.

Pension and post-retirement benefits

The Company has various defined benefit pension plans that cover some of its non-U.S. employees. The Company also has a post-retirement healthcare plan that covers qualifying U.S. employees. Eligibility and the level of benefits for these plans vary depending on participants’ status, date of hire and or length of service. Pension and post-retirement healthcare plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts. These assumptions include discount rates, healthcare cost trends, long-term return on plan assets, retirement rates, mortality rates and other factors.

The Company funds its pension plans in accordance with applicable regulations. The Company records the service cost component of net pension cost and net post-retirement healthcare benefit cost in Selling, general and administrative expenses. The Company records all other net cost components of net pension cost and net post-retirement benefit cost in Other income, net. The post-retirement healthcare plan is not funded.

See Note 14. Retirement benefits, for further information.

Redeemable non-controlling interests

The Company presents non-controlling interests in temporary equity within its Consolidated Balance Sheets if it is redeemable at a fixed or determinable price on a fixed or determinable date on the option of the holder, or upon the occurrence of an event that is not solely within the control of the Company.

The carrying amount of the redeemable non-controlling interests is equal to the greater of the carrying value of non-controlling interests adjusted each reporting period for income (or loss) attributable to the non-controlling interests as well as any applicable distributions made or the redemption value. Re-measurements to the redemption value of the redeemable non-controlling interests are recognized in additional paid in capital. The Company reports the portion of its earnings or loss for redeemable non-controlling interest as Net loss attributable to non-controlling interests - continuing operations, in the Consolidated Statements of Earnings.

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


	Walgreens Boots Alliance, Inc.
August 31, 2020	$	—
Recognition upon acquisition of subsidiary	309
Redemption price adjustments 1	19
Net loss attributable to redeemable non-controlling interests	(3)
Currency translation adjustments and other	(6)
August 31, 2021	$	319
Recognition upon acquisition of subsidiary 2	2,684
Acquisition of non-controlling interests 3	(2,047)
Redemption price adjustments 1	179
Net loss attributable to redeemable non-controlling interests	(73)
Currency translation adjustments and other	(20)
August 31, 2022 4	$	1,042

1.Remeasurement of non-controlling interests, probable of redemption but not currently redeemable, to their redemption value, is recorded to Paid in capital in the Consolidated Balance Sheets.

2.Includes, $1.9 billion of redeemable non-controlling interests, representing the maximum purchase price to redeem non-controlling units in VillageMD for cash, and redeemable non-controlling interests in Shields Health Solutions Parent, LLC (“Shields”) and CCX Next, LLC (“CareCentrix”).

3.Includes, $1.9 billion paid to existing shareholders of VillageMD as part of the fully subscribed tender offer and the acquisition of the remaining 30% non-controlling equity interests in the pharmaceutical wholesale business in Germany.

4.Redeemable non-controlling interests primarily relates to Shields, CareCentrix, and Innovation Associates, Inc.

See Note 3. Acquisitions and other investments, for further details.

Non-controlling interests

The Company presents non-controlling interests as a component of equity on its Consolidated Balance Sheets and reports the portion of its earnings or loss for non-controlling interest as net earnings attributable to non-controlling interests in the Consolidated Statements of Earnings. Non-controlling interests primarily relates to VillageMD.

Currency

Assets and liabilities of non-U.S. dollar functional currency operations are translated into U.S. dollars at end-of-period exchange rates while revenues, expenses and cash flows are translated at average monthly exchange rates over the period. Equity is translated primarily at historical exchange rates and the resulting cumulative translation adjustments are included as a component of Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets.

Assets and liabilities not denominated in the functional currency are remeasured into the functional currency at end-of-period exchange rates, except for non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Revenues and expenses are recorded at average monthly exchange rates over the period, except for those expenses related to non-monetary balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are generally included in Other income, net within the Consolidated Statements of Earnings.

Commitments and contingencies

The Company assesses its liabilities and contingencies for outstanding legal proceedings and reserves are established on a case-by-case basis for those legal claims for which management concludes that it is probable that a loss will be incurred and that the amount of such loss can be reasonably estimated. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. With respect to litigation and other legal proceedings where the Company has determined that a loss is reasonably possible, the Company may be unable to estimate the amount or range of reasonably possible loss due to the inherent difficulty of predicting the outcome of and uncertainties regarding such litigation and legal proceedings. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Therefore, it is possible that an unfavorable resolution of one or more pending litigation or other contingencies could have a material adverse effect on the Company’s Consolidated Financial Statements in a future fiscal period. Management’s assessment of current litigation and other legal proceedings, including the corresponding accruals, could change because of the discovery of facts with respect to legal actions or other proceedings pending against the Company which are not presently known. Adverse rulings or determinations by judges, juries, governmental authorities or other parties could also result in changes to management’s assessment of current liabilities and contingencies. Accordingly, the ultimate costs of resolving these claims may be substantially higher or lower than the amounts reserved. See Note 11. Commitments and contingencies, for further information.

Revenue recognition

Sales are recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring control of goods or services to the customer. Sales are reported on the gross amount billed to a customer less discounts if it has earned revenue as a principal from the sale of goods and services. Sales are reported on the net amount retained (i.e., the amount billed to the customer less the amount paid to a vendor) if the Company has earned a commission or a fee as an agent.

Retail and Pharmacy

The Company recognizes revenue, net of taxes and expected returns, at the time it sells merchandise, provides services or dispenses prescription drugs to the customer. The Company estimates revenue based on expected reimbursements from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. The estimates are based on all available information including historical experience and are updated to actual reimbursement amounts.

The Company’s loyalty rewards programs represent separate performance obligations and are accounted for using the deferred revenue approach. When goods are sold, the transaction price is allocated between goods sold and loyalty points awarded based upon the relative standalone selling price. The revenue allocated to the loyalty points is recognized upon redemption. Loyalty programs breakage is recognized as revenue based on the redemption pattern. Customer purchases of the Company's own gift cards are not recognized as revenue until the card is redeemed. Gift card breakage (i.e., unused gift card) is recognized as revenue based on the redemption pattern.

The Company recognizes contract liabilities to record the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example the Company’s myWalgreens and Boots Advantage Card loyalty programs. Under such programs, customers earn Walgreens Cash or reward points on purchases for redemption at a later date.

Wholesale

Wholesale revenue is recognized, net of taxes and expected returns, upon shipment of goods, which is generally also the day of delivery.

Healthcare services

The Company provides healthcare services under fee-for-service and value-based arrangements. Fee-for-service revenues are recognized at the point-in-time medical care is provided. Revenues are reported based on expected net collection rates, which are calculated based on historical collection rates in relation to amounts billed at the time of service. Revenues from value-based arrangements (“risk-based revenues”) are primarily earned from contracts in which the Company has full or shared risk for the healthcare payor’s eligible members (“value-based patients”). Risk-based revenues are recognized ratably over the term of the contract (generally, one year or less) as our stand-ready obligation to provide healthcare services is satisfied. We receive fees from payors which are generally based on a fixed monthly percentage of the premium received by the payor from the payor’s members, or a portion of the payor’s savings relative to an agreed-upon financial benchmark. We estimate transaction price based on historical data and data from the payors. Estimates are adjusted to the final settlement amount received from the payor. The Company evaluates whether it is a principal or agent in an arrangement based on the Company’s exposure to financial risk under the arrangement and the Company’s control over the provision of services. The Company has determined that it acts as a principal in the vast majority of its arrangements.

Cost of sales

Retail, Pharmacy and Wholesale

Cost of sales includes the purchase price of goods and cost of services rendered, store and warehouse inventory loss, inventory obsolescence, warehousing costs for retail operations, purchasing costs, freight costs, cash discounts, vendor allowances and supplier rebates. Cost of sales is derived based upon point-of-sale scanning information with an estimate for shrinkage and is adjusted based on periodic inventory counts.

Vendor allowances are principally received as a result of purchases, sales or promotion of vendors’ products. Allowances are generally recorded as a reduction of inventory and are recognized as a reduction of cost of sales when the related merchandise is sold. Allowances received for promoting vendors’ products, if received for a specific, incremental, identifiable cost, are offset against advertising expense and result in a reduction of Selling, general and administrative expenses to the extent of advertising costs incurred, with the excess treated as a reduction of inventory costs. Rebates or refunds received by the Company from its suppliers, mostly in cash, are considered as an adjustment of the prices of the supplier’s products purchased by the Company.

Healthcare services

For operations and activities related to the provision of healthcare, cost of services includes activities that are directly related to the provision of care, including medical claims expense, cost of care, clinic operating and support costs, and allocated depreciation and amortization. Medical claims expense represents medical claims expenses related to fee-for-service and value-based arrangements and primarily includes costs for third-party healthcare service providers that provide medical care to patients. Cost of care represents the cost of our employed providers and certain affiliated providers, including base compensation, quality incentive bonuses and provider benefits. Clinic operating and support costs include costs incurred to operate our clinics, including clinical care support staff, patient support staff, population health management employees, rent, utilities and supplies.

Selling, general and administrative expenses

Selling, general and administrative expenses mainly consist of salaries and employee costs, occupancy costs, depreciation and amortization, credit and debit card fees and expenses directly related to stores. In addition, other costs included are headquarters’ expenses, advertising costs (net of vendor advertising allowances), wholesale warehousing costs and insurance.

Advertising costs

Advertising costs are reduced by the portion funded by vendors, if reimbursement represents a specific, incremental, identifiable cost, and expensed as incurred or when services have been received. Net advertising expenses, which are included in Selling, general and administrative expenses, were $862 million in fiscal 2022, $772 million in fiscal 2021 and $532 million in fiscal 2020.

Impairment of long-lived assets

The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate that the carrying value of such an asset may not be recoverable. The evaluation of long-lived assets is performed at the lowest level of identifiable cash flows, typically at the store level for retail pharmacy operations. Long-lived assets related to the Company’s retail pharmacy operations include property, plant and equipment, definite-lived intangibles, right of use asset as well as operating lease liability. If the asset group fails the recoverability test, then an impairment charge is determined based on the difference between the fair value of the asset group compared to its carrying value. Fair value of the asset group is generally determined using the income approach based on cash flows expected from the use and eventual disposal of the asset group.

Impairment charges for long-lived assets included in Selling, general and administrative expenses were $380 million, $182 million and $401 million for fiscal 2022, 2021 and 2020 respectively.

The determination of the fair value of the asset group requires management to estimate a number of factors including anticipated future cash flows and discount rates. Although we believe these estimates are reasonable, actual results could differ from those estimates due to the inherent uncertainty involved in making such estimates.

Stock compensation plans

Stock based compensation is measured at fair value at the grant date. The Company grants stock options, performance shares and restricted units to the Company’s non-employee directors, officers and employees. The Company recognizes compensation expense on a straight-line basis over the substantive service period. The fair value of each performance share granted assumes that performance goals will be achieved at 100 percent. Subsequently, the Company reassesses the probability of achieving the performance goals and vesting and adjusts compensation expense accordingly, including the reversal of previously recognized compensation expense if it is no longer probable that the awards will vest. See Note 13. Stock compensation plans, for more information on the Company’s stock-based compensation plans.

Insurance

The Company obtains insurance coverage for catastrophic exposures as well as those risks required by law to be insured. In general, the Company’s U.S. subsidiaries retain a significant portion of losses related to workers’ compensation, property, comprehensive general, pharmacist and vehicle liability, while non-U.S. subsidiaries manage their exposures through insurance coverage with third-party carriers. Management regularly reviews the probable outcome of claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage and the established accruals for liabilities. Liabilities for losses are recorded based upon the Company’s estimates for both claims incurred and claims incurred but not reported. The provisions are estimated in part by considering historical claims experience, demographic factors and other actuarial assumptions.

Income taxes

The Company accounts for income taxes according to the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not to be realized.

In determining the provision for income taxes, the Company uses income, permanent differences between book and tax income, the relative proportion of foreign and domestic income, enacted statutory income tax rates, projections of income subject to Subpart F rules and unrecognized tax benefits related to current year results. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to lapsing of the applicable statute of limitations, recognizing or de-recognizing benefits of deferred tax assets due to future year financial statement projections and changes in tax laws are recognized in the period in which they occur.

The Company is subject to routine income tax audits that occur periodically in the normal course of business. U.S. federal, state, local and foreign tax authorities raise questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the tax benefits associated with the various tax filing positions, the Company records a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. Adjustments are made to the liability for unrecognized tax benefits in the period in which the Company determines the issue is effectively settled with the tax authorities, the statute of limitations expires for the return containing the tax position or when more information becomes available.

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 17.1 million, 17.2 million and 19.0 million weighted outstanding options to purchase common shares that were anti-dilutive and excluded from the earnings per share calculation for fiscal 2022, 2021 and 2020, respectively.

New accounting pronouncements

Adoption of new accounting pronouncements

Receivables - nonrefundable fees and others

In October 2020, the FASB issued Accounting Standards Update (“ASU”) 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 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. The Company has evaluated the effect of adopting this new accounting guidance and does not expect adoption will have a material impact on the Company's results of operations, cash flows or financial position. The Company will adopt this ASU on September 1, 2022.

Liabilities—Supplier Finance Programs

In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations. This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is expected to improve financial reporting by requiring new disclosures about the programs, thereby allowing financial statement users to better consider the effect of the programs on an entity’s working capital, liquidity, and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022 (fiscal 2024), except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023 (fiscal 2025). The Company is evaluating the effect of adopting this new accounting guidance.

Discontinued operations

12 Months Ended

Aug. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

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 (the “Alliance Healthcare Sale”).

The Company recorded a gain before currency translation adjustments of $1.1 billion and a net gain on disposal of $322 million. The gain on sale was presented as part of results of the discontinued operations. The following table shows the fair value of proceeds from the Alliance Healthcare Sale and net carrying value of the assets disposed:


Transaction proceeds and net assets disposed (in billions):
Fair value of proceeds from disposition 1	$	6.9
Net assets disposed	5.8
Gain before currency translation adjustments	1.1
Currency translation loss released due to disposition	(0.8)
Net gain on disposal of discontinued operation 2	$	0.3

1.Includes base consideration of $6.275 billion adjusted for net working capital and net cash adjustments as set forth in the Share Purchase Agreement.

2.The Company recorded insignificant amount of tax expense due to utilization of capital losses.

As of August 31, 2021, Other current assets included a $98 million receivable for purchase price consideration due from AmerisourceBergen that was subject to change upon the finalization of net working capital adjustments. In fiscal 2022, the Company finalized the net working capital adjustments and reduced the receivable by $38 million with a corresponding charge in Other income, net within the Consolidated Statements of Earnings.

The operating results of the Disposal Group are reported as discontinued operations as the disposition reflected a strategic shift that had a major effect on the Company’s operations and financial results.

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


	2021		2020
Sales	$	16,070	$	19,349
Cost of sales	14,486		17,409
Gross profit	1,584		1,940
Selling, general and administrative expense 1	1,254		1,610
Operating income from discontinued operations	329		330
Other income (expense), net 2	314		(8)
Interest expense, net	(23)		(25)
Earnings before income tax – discontinued operations	621		297
Income tax provision	78		21
Post tax earnings from other equity method investments	15		10
Net earnings from discontinued operations	$	557	$	286

1 Includes $44 million of divestiture related costs incurred post completion of the Alliance Healthcare Sale.

2 Includes $322 million of gain on sale of discontinued operations.

Sales in prior years from the Disposal Group to the Company's continuing operations aggregate to (in millions):


	2021 1		2020
Sales	$	1,385	$	1,794

1 Sales in fiscal 2021 until date of disposal.

The following table presents cash flows from operating and investing activities for discontinued operations in prior periods (in millions):


	2021		2020
Cash (used for) provided by operating activities - discontinued operations	$	(132)	$	334
Cash used for investing activities - discontinued operations	(58)		(80)

See Note 6. Equity method investments and Note 19. Related parties, for more information on the Company's equity method investment in AmerisourceBergen and the Company's continuing involvement with AmerisourceBergen.

Acquisitions

12 Months Ended

Aug. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions and other investments

VillageMD acquisition

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 is comprised of cash consideration of $4.0 billion and a promissory note of $1.2 billion. The cash consideration of $4.0 billion consisted of $2.9 billion paid to existing shareholders, including $1.9 billion paid to existing shareholders as part of the fully subscribed tender offer concluded on December 28, 2021, and $1.1 billion paid in exchange for new preferred units issued by VillageMD. Subject to notice being served, the Company 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 Balance Sheets.

The Company accounted for this acquisition as a business combination resulting in consolidation of VillageMD within the U.S. Healthcare segment in its financial statements. A non-controlling interest was recognized at fair value. In fiscal 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 August 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, specifically as it relates to deferred taxes.

As a result of this acquisition, the Company recognized a pre-tax gain in Other income, net in the Consolidated Statements of Earnings of $1,597 million related to the fair valuation of the Company’s previously held minority equity interest. The Company also recorded a pre-tax gain of $577 million in Other income, net in the Consolidated Statements of Earnings related to the conversion to equity of the Company’s previously held investment in convertible debt securities of VillageMD, reclassified from within Accumulated other comprehensive income in the Consolidated Balance Sheets. A majority of the gains did not generate a tax expense.

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


Purchase Price Allocation:
Total purchase price	$	5,200
Less: purchase price for issuance of new preferred units at fair value 1	(2,300)
Net consideration	2,900
Fair value of share-based compensation awards attributable to pre-combination services 2	683
Fair value of previously held equity and debt	3,211
Fair value of non-controlling interest	3,257
Total	$	10,051

Identifiable assets acquired and liabilities assumed:
Tangible assets 1	$	634
Intangible assets 3	1,621
Liabilities	(245)
Total identifiable net assets	$	2,010

Goodwill	$	8,041

1.Comprised of cash consideration of $1.1 billion and a promissory note of $1.2 billion. This consideration was provided in exchange for the issuance of new preferred units by VillageMD. VillageMD’s tangible assets acquired exclude this $1.1 billion of cash and $1.2 billion promissory note receivable.

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

3.Intangibles acquired include primary care provider network, trade names and developed technology, with a fair value of $1.2 billion, $295 million and $76 million. Estimated useful lives are 15, 13 and 5 years, respectively.

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

Shields acquisition

On October 29, 2021, the Company completed the acquisition of Shields Health Solutions Parent, LLC (“Shields”). Pursuant to the terms and subject to the conditions set forth in the Securities Purchase Agreement, the Company purchased additional outstanding equity interests of Shields, increasing the Company’s total beneficial ownership in Shields’ outstanding equity interests from 25% to approximately 70%, for cash consideration of $969 million. The Company accounted for this acquisition as a business combination resulting in consolidation of Shields within the U.S. Healthcare segment in its financial statements. A non-controlling interest was recognized at fair value. As of August 31, 2022, 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 interests, it is classified as redeemable non-controlling interests in the Consolidated Balance Sheets. As of August 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, specifically as it relates to deferred taxes.

As a result of this acquisition, the Company remeasured its previously held minority equity interest in Shields at fair value resulting in a pre-tax gain of $402 million recognized in Other income, net in the Consolidated Statements of Earnings. A majority of the gains did not generate a tax expense.

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


Purchase Price Allocation:
Cash consideration	$	969
Fair value of share-based compensation awards attributable to pre-combination services	13
Fair value of previously held equity interests	502
Fair value of non-controlling interests	589
Total	$	2,074

Identifiable assets acquired and liabilities assumed:
Tangible assets	$	84
Intangible assets 1	1,060
Liabilities	(528)
Total identifiable net assets	$	616

Goodwill	$	1,457

1.Intangibles acquired include customer relationships, trade names and developed technology, with a fair value of $896 million, $47 million and $117 million. Estimated useful lives are 13, 13 and 5 years, respectively.

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

On September 20, 2022, the Company announced the acceleration of its plans for full ownership of Shields. The Company entered into a definitive agreement to acquire the remaining 30% equity interest for approximately $1.37 billion of cash consideration. The transaction is expected to close in the second quarter of fiscal 2023. See Note 21. Subsequent events for further information.

CareCentrix acquisition

On August 31, 2022, the Company completed the acquisition of CareCentrix. Pursuant to the terms and subject to the conditions set forth in the Membership Interest Purchase Agreement, the Company acquired approximately 55% controlling equity interest in CareCentrix, a leading player in the post-acute and home care management sectors, for cash consideration of $332 million, subject to certain purchase price adjustments. The cash consideration includes $12 million paid to employees, which was recognized as compensation expense by the Company.

The Company accounted for this acquisition as a business combination resulting in consolidation of CareCentrix within the U.S. Healthcare segment in its financial statements. A non-controlling interest was recognized at fair value. As of August 31, 2022, under the terms of the transaction agreements, the Company has an option to acquire the remaining equity interests of CareCentrix in the future. CareCentrix’s 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 interests, it is classified as redeemable non-controlling interests in the Consolidated Balance Sheets. As of August 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.

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 1	$	320
Contingent consideration	4
Fair value of share-based compensation awards attributable to pre-combination services	66
Fair value of non-controlling interests	217
Total	$	607

Identifiable assets acquired and liabilities assumed:
Tangible assets	$	358
Intangible assets 2	460
Liabilities	(665)
Total identifiable net assets	$	153

Goodwill	$	454

1.Excludes $12 million of cash paid to employees, which was recognized as compensation expense by the Company.

2.Intangibles acquired include customer relationships, trade names and developed technology, with a fair value of $284 million, $90 million and $86 million, respectively. Estimated useful lives are 15, 13 and 5 years, respectively.

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

On October 11, 2022, the Company announced the acceleration of its plans for full ownership of CareCentrix. The Company entered into a definitive agreement to acquire the remaining 45% equity interest for approximately $392 million of cash consideration. The acquisition is subject to limited customary closing conditions and is expected to close by March 2023. See Note 21. Subsequent events to the Consolidated Financial Statements included in Part II, Item 8 herein for further information.

Supplemental pro forma information

The following table represents unaudited supplemental pro forma consolidated sales for the twelve months ended August 31, 2022 and 2021, respectively, as if the acquisitions had occurred at the beginning of each period. The unaudited pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisitions occurred at the beginning of the periods presented or results which may occur in the future.


(Unaudited, in millions)	2022		2021
Sales	$	134,314	$	135,306

Actual sales of the acquisitions for the twelve months ended August 31, 2022 included in the Consolidated Statement of Earnings are as follows:


(in millions)	2022
Sales	$	1,795

Pro forma net earnings of the Company, assuming the acquisitions had occurred at the beginning of each period presented, would not be materially different from the results reported.

See Note 17. Segment reporting for further information.

Other acquisitions and investments

The Company acquired certain prescription files and related pharmacy inventory primarily in the U.S. for the aggregate purchase price of $196 million and $108 million during fiscal 2022 and 2021, respectively.

Exit and disposal activities

12 Months Ended

Aug. 31, 2022

Restructuring and Related Activities [Abstract]

Exit and disposal activities

Transformational Cost Management Program

On December 20, 2018, the Company announced a transformational cost management program that was expected to deliver in excess of $2.0 billion of annual cost savings by fiscal 2022 (the “Transformational Cost Management Program”). The Company achieved this goal at the end of fiscal 2021.

On October 12, 2021, the Company expanded and extended the Transformational Cost Management Program through the end of fiscal 2024 and increased its annual cost savings target to $3.3 billion by the end of fiscal 2024. In fiscal 2022, the Company increased its annual cost savings target from $3.3 billion to $3.5 billion, by the end of fiscal 2024. The 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 U.S. Retail Pharmacy and International reportable segments along with the Company's global functions. Divisional optimization within the Company’s segments includes activities such as optimization of stores, including plans to close approximately 350 stores in the UK and approximately 450 to 500 stores in the U.S. As of August 31, 2022, the Company has closed 235 and 287 stores in the UK and U.S., respectively.

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 the impacts discussed above, as a result of the actions related to store closures taken under the Transformational Cost Management Program, the Company recorded $508 million of transition adjustments to decrease retained earnings due to the adoption of the new lease accounting standard (Topic 842) that became effective on September 1, 2019.

From the inception of the Transformational Cost Management Program to August 31, 2022, the Company has recognized cumulative pre-tax charges to its financial results in accordance with GAAP of $2.0 billion, which were primarily recorded within Selling, general and administrative expenses. These charges included $603 million related to lease obligations and other real estate costs, $443 million in asset impairments, $723 million in employee severance and business transition costs and $203 million of information technology transformation and other exit costs.

Costs related to exit and disposal activities under the Transformational Cost Management Program for fiscal 2022, 2021 and 2020, respectively, were as follows (in millions):


Fiscal 2022	U.S. Retail Pharmacy		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	247	$	2	$	—	$	249
Asset impairments	132		58		—		190
Employee severance and business transition costs	156		29		25		210
Information technology transformation and other exit costs	12		29		—		40
Total pre-tax exit and disposal charges	$	546	$	118	$	25	$	690


Fiscal 2021	U.S. Retail Pharmacy		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	103	$	6	$	—	$	108
Asset impairments	15		9		—		24
Employee severance and business transition costs	79		40		45		165
Information technology transformation and other exit costs	20		17		—		38
Total pre-tax exit and disposal charges	$	217	$	72	$	46	$	335


Fiscal 2020	U.S. Retail Pharmacy		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	191	$	9	$	14	$	215
Asset impairments	51		19		2		72
Employee severance and business transition costs	132		93		45		270
Information technology transformation and other exit costs	70		42		(4)		108
Total pre-tax exit and disposal charges	$	444	$	163	$	58	$	665

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, 2020	$	19	$	—	$	166	$	14	$	199
Costs	108		24		165		38		335
Payments	(69)		—		(252)		(31)		(351)
Other	(42)		(24)		(2)		(1)		(69)
Balance at August 31, 2021	$	17	$	—	$	77	$	20	$	114
Costs	249		190		210		40		690
Payments	(99)		—		(201)		(23)		(323)
Other	(157)		(190)		(9)		(11)		(367)
Balance at August 31, 2022	$	10	$	—	$	76	$	27	$	113

Leases

12 Months Ended

Aug. 31, 2022

Leases [Abstract]

Leases

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


Balance sheet supplemental information:	August 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,259	$	21,893

Operating lease obligations - current	$	2,286	$	2,259
Operating lease obligations - non-current	21,517		22,153
Total operating lease obligations	$	23,803	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	645	$	725
Lease obligations included in:
Accrued expenses and other liabilities	$	37	$	37
Other non-current liabilities	899		974
Total finance lease obligations	$	936	$	1,010

Supplemental income statement information related to leases were as follows (in millions):


Statement of earnings supplemental information:	2022		2021		2020
Operating lease cost
Fixed	$	3,240	$	3,219	$	3,252
Variable 1	825		664		750
Finance lease cost
Amortization	$	44	$	45	$	40
Interest	50		52		54

Sublease income	$	105	$	84	$	75
Impairment of right-of-use assets	218		86		213
Impairment of finance lease assets	—		—		24
Gains on sale-leaseback transactions 2	619		367		308

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 was as follows (in millions):


Other supplemental information:	2022		2021		2020
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	3,351	$	3,414	$	3,251
Operating cash flows from finance leases	47		48		48
Financing cash flows from finance leases	43		42		47
Total	$	3,441	$	3,503	$	3,346
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	2,078	$	2,765	$	2,443
Finance leases	11		—		65
Total	$	2,089	$	2,765	$	2,508

Weighted average lease term and discount rate for real estate leases as of August 31, 2022 were as follows:


Weighted average lease terms and discount rates:	August 31, 2022		August 31, 2021
Weighted average remaining lease term in years
Operating leases	10.0		10.3
Finance leases	19.0		20.2

Weighted average discount rate
Operating leases	4.83	%	4.77	%
Finance leases	5.19	%	5.18	%

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


Future lease payments (fiscal years):	Finance lease		Operating lease

2023	$	87	$	3,440
2024	87		3,342
2025	86		3,236
2026	86		3,136
2027	86		3,038
Later	1,041		14,140
Total undiscounted minimum lease payments	$	1,471	$	30,333
Less: Present value discount	(536)		(6,530)
Lease liability	$	936	$	23,803

Leases

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


Balance sheet supplemental information:	August 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,259	$	21,893

Operating lease obligations - current	$	2,286	$	2,259
Operating lease obligations - non-current	21,517		22,153
Total operating lease obligations	$	23,803	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	645	$	725
Lease obligations included in:
Accrued expenses and other liabilities	$	37	$	37
Other non-current liabilities	899		974
Total finance lease obligations	$	936	$	1,010

Supplemental income statement information related to leases were as follows (in millions):


Statement of earnings supplemental information:	2022		2021		2020
Operating lease cost
Fixed	$	3,240	$	3,219	$	3,252
Variable 1	825		664		750
Finance lease cost
Amortization	$	44	$	45	$	40
Interest	50		52		54

Sublease income	$	105	$	84	$	75
Impairment of right-of-use assets	218		86		213
Impairment of finance lease assets	—		—		24
Gains on sale-leaseback transactions 2	619		367		308

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 was as follows (in millions):


Other supplemental information:	2022		2021		2020
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	3,351	$	3,414	$	3,251
Operating cash flows from finance leases	47		48		48
Financing cash flows from finance leases	43		42		47
Total	$	3,441	$	3,503	$	3,346
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	2,078	$	2,765	$	2,443
Finance leases	11		—		65
Total	$	2,089	$	2,765	$	2,508

Weighted average lease term and discount rate for real estate leases as of August 31, 2022 were as follows:


Weighted average lease terms and discount rates:	August 31, 2022		August 31, 2021
Weighted average remaining lease term in years
Operating leases	10.0		10.3
Finance leases	19.0		20.2

Weighted average discount rate
Operating leases	4.83	%	4.77	%
Finance leases	5.19	%	5.18	%

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


Future lease payments (fiscal years):	Finance lease		Operating lease

2023	$	87	$	3,440
2024	87		3,342
2025	86		3,236
2026	86		3,136
2027	86		3,038
Later	1,041		14,140
Total undiscounted minimum lease payments	$	1,471	$	30,333
Less: Present value discount	(536)		(6,530)
Lease liability	$	936	$	23,803

Equity method investments

12 Months Ended

Aug. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity method investments

Equity method investments as of August 31, 2022 and 2021 were as follows (in millions, except percentages):


	2022			2021
	Carrying value		Ownership percentage	Carrying value		Ownership percentage
AmerisourceBergen	$	3,916	25%	$	4,407	28%
Others	1,579		8% - 50%	2,580		8% - 50%
Total	$	5,495		$	6,987

AmerisourceBergen investment

As of August 31, 2022 and 2021, respectively, the Company owns approximately 25.4% and 28.5%, of AmerisourceBergen outstanding common stock, based on the share count publicly reported by AmerisourceBergen in its most recent Quarterly Report on Form 10-Q.

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 August 31, 2022. The transaction resulted in the Company recording a pre-tax gain of $417 million in Other income, net in the Consolidated Statements of Earnings, including a $32 million loss reclassified from within Accumulated other comprehensive income in the Consolidated Balance Sheets.

The Company accounts for its equity investment in AmerisourceBergen using the equity method of accounting, with the net earnings (loss) attributable to the Company’s investment being classified within the operating income of its U.S. Retail Pharmacy 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 Statements of Earnings.

In fiscal 2022, 2021 and 2020, the Company recognized equity earnings (losses) in AmerisourceBergen of $418 million, $(1.1) billion and $341 million, respectively. The equity losses for fiscal 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 August 31, 2022 and 2021 was $7.7 billion and $7.2 billion, respectively. As of August 31, 2022, the carrying value of the Company’s investment in AmerisourceBergen exceeded its proportionate share of the net assets of AmerisourceBergen by $3.9 billion. This premium of $3.9 billion is recognized as part of the carrying value in the Company’s equity investment in AmerisourceBergen. The difference is 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 (“HC Group Holdings”), 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.

On August 18, 2022, the Company sold 11.0 million shares of Option Care Health common stock for a total consideration of $363 million, decreasing the Company's ownership of Option Care Health’s common stock from 20.5% to 14.4% at August 31, 2021 and 2022, respectively. The Company recorded a pre-tax gain of $145 million in Other income, net in the Consolidated Statements of Earnings. Subsequent to the sale, the Company continues to account for its investment using the equity method of accounting.

The Company reported $50 million, $627 million and $31 million of post-tax equity earnings from other equity method investments, for fiscal 2022, 2021 and 2020, respectively. In fiscal 2022, the Company also 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.

In fiscal 2022, 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, net in the Consolidated Statements of Earnings. As a result of these transactions, the Company now consolidates VillageMD and Shields within the U.S. Healthcare segment in its financial statements.

In fiscal 2021, the Company recorded a gain of $290 million in Other income, net in the Consolidated Statements of Earnings, due to the partial sale of ownership interest in Option Care Health by the Company's then equity method investee HC Group Holdings. As a result of these sales HC Group Holdings lost the ability to control Option Care Health and, therefore, deconsolidated Option Care Health in its financial statements. As a result of this deconsolidation, HC Group Holdings recognized a gain of $1.2 billion and the Company recorded its share of equity earnings in HC Group Holdings of $576 million in Post-tax earnings from other equity method investments.

Summarized financial information

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

Balance sheet (in millions)


	August 31,
	2022		2021
Current assets	$	50,985	$	49,538
Non-current assets	26,497		27,442
Current liabilities	52,083		48,766
Non-current liabilities	19,712		22,046
Shareholders’ equity 1	5,687		6,168

1Shareholders’ equity at August 31, 2022 and 2021 includes $564 million and $646 million, respectively, related to non-controlling interests.

Statements of earnings (in millions)



	2022		2021		2020
Sales	$	268,189	$	232,719	$	208,625
Gross profit	13,248		10,889		8,707
Net earnings (loss)	1,988		(3,475)		1,624
Share of earnings (loss) from equity method investments	468		(512)		372

The summarized financial information for equity method investments has been included on an aggregated basis for all investments as reported at the end of each fiscal year end.

Goodwill and other intangible assets

12 Months Ended

Aug. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets

Based on the analysis completed as of the June 1, 2022 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 7% to approximately 198%. The Boots reporting unit's fair value was in excess of its carrying value by approximately 7%, compared to 18% as of June 1, 2021. As of August 31, 2022, the carrying value of goodwill within the Boots reporting unit was $906 million.

In the fourth quarter of fiscal 2022, the Company recorded, within Selling, general and administrative expenses, an impairment loss of $783 million, related to indefinite-lived pharmacy license and trade name intangible assets in the Boots reporting unit, part of the International segment. Due to the impairment recognized in fiscal 2022, the fair values of indefinite-lived intangibles within the Boots reporting unit equate to their carrying values. As of August 31, 2022 and 2021, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $5.5 billion and $7.3 billion, respectively.

In fiscal 2021, the Company recorded, within Selling, general and administrative expenses, an impairment loss in the International segment of $49 million on certain indefinite-lived trade name assets of Boots.

In fiscal 2020, the Company completed a quantitative impairment analysis for goodwill and certain indefinite-lived intangible assets related to its two reporting units within the International segment, Boots and International Other, as a result of the significant impact of COVID-19 on their financial performance. Based on this analysis, the Company recorded impairment charges of $1.7 billion on Boots’ goodwill and $294 million on certain indefinite lived trade name assets of Boots, in the International segment, within Selling, general and administrative expenses.

Indefinite-lived intangible assets fair values are estimated using the relief from royalty method and excess earnings method of the income approach. 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. 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, 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 and economic, industry and market trends, and the impact these may have on the reporting units.

Definite-lived intangible assets are evaluated for impairment whenever events or circumstances indicate that a certain asset or asset group may be impaired. In fiscal 2020, the Company evaluated certain definite-lived intangibles for impairment resulting in an impairment charge of $47 million. No impairment was recorded for definite-lived intangibles in fiscal 2022 or 2021.

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


Goodwill roll forward:	U.S. Retail Pharmacy		International		U.S. Healthcare		Walgreens Boots Alliance, Inc.
August 31, 2020	$	10,553	$	1,460	$	—	$	12,013
Acquisitions 1	394		21		—		414
Currency translation adjustments	—		(7)		—		(7)
August 31, 2021	$	10,947	$	1,474	$	—	$	12,421
Acquisitions 1	$	—	$	—	$	10,040	$	10,040


Currency translation adjustments	—		(181)		—		(181)
August 31, 2022	$	10,947	$	1,293	$	10,040	$	22,280

1 In fiscal 2021, the Company acquired controlling equity interests in Innovation Associates, Inc. and a joint venture with McKesson which resulted in an increase to goodwill of $394 million and $21 million, respectively. In fiscal 2022, the Company acquired controlling equity interests in VillageMD, Shields and CareCentrix which resulted in an increase to goodwill of $8.0 billion, $1.5 billion and $454 million, respectively.

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


Intangible assets:	August 31, 2022		August 31, 2021
Gross amortizable intangible assets
Customer relationships and loyalty card holders 1	$	4,619	$	3,522
Primary care provider network	1,247		—
Trade names and trademarks	760		361
Developed technology 2	436		156
Purchasing and payor contracts	15		317
Others 2	78		65
Total gross amortizable intangible assets	$	7,155	$	4,421

Accumulated amortization
Customer relationships and loyalty card holders 1	$	1,548	$	1,335
Primary care provider network	64		—
Trade names and trademarks	246		226
Developed technology 2	56		8
Purchasing and payor contracts	4		227
Others 2	35		29
Total accumulated amortization	1,953		1,826
Total amortizable intangible assets, net	$	5,202	$	2,595

Indefinite-lived intangible assets
Trade names and trademarks	$	4,319	$	5,276
Pharmacy licenses	1,209		2,066
Total indefinite-lived intangible assets	$	5,528	$	7,342

Total intangible assets, net	$	10,730	$	9,936

1Includes purchased prescription files.

2Includes certain reclassifications to conform to current period presentation.

Amortization expense for intangible assets was $639 million, $523 million and $384 million in fiscal 2022, 2021 and 2020, respectively.

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


	2023		2024		2025		2026		2027
Estimated annual amortization expense	$	610	$	591	$	558	$	540	$	478

Debt

12 Months Ended

Aug. 31, 2022

Debt Disclosure [Abstract]

Debt

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


	August 31, 2022		August 31, 2021
Short-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,000	$	—
$8 billion note issuance 1
3.300% unsecured notes due 2021 2	—		1,250
Other 3	59		56
Total short-term debt	$	1,059	$	1,305


Long-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,998	$	—
Unsecured credit facility due 2024	999		—
$850 million note issuance 1
0.9500% unsecured notes due 2023	848		—
$1.5 billion note issuance 1
3.200% unsecured notes due 2030	498		497
4.100% unsecured notes due 2050 5	792		792
$6 billion note issuance 1
3.450% unsecured notes due 2026 5	1,443		1,442
4.650% unsecured notes due 2046 5	318		318
$8 billion note issuance 1
3.800% unsecured notes due 2024 5	1,155		1,154
4.500% unsecured notes due 2034 5	301		301
4.800% unsecured notes due 2044 5	869		868
£700 million note issuance 1
3.600% unsecured Pound Sterling notes due 2025	354		408
€750 million note issuance 1
2.125% unsecured Euro notes due 2026	752		873
$4 billion note issuance 4
3.100% unsecured notes due 2022 5	—		731
4.400% unsecured notes due 2042 5	263		263
Other 3	26		29
Total long-term debt, less current portion	$	10,615	$	7,675

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

2.On 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.

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

4.Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, the Company fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of the Company and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company. 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 were redeemed in full.

5.On April 26, 2021, the Company entered into a cash tender offer to partially purchase and retire $3.3 billion of long term U.S. dollar denominated notes with a weighted average interest rate of 4.02%. The Company recognized a loss of $414 million related to the early extinguishment of debt, within Interest expense, which includes $386 million of redemption premium paid in cash. The cash payments related to the early extinguishment of debt are classified as cash outflows from financing activities in the Consolidated Statement of Cash Flows.

At August 31, 2022, the future maturities of short-term and long-term debt, excluding debt discounts and issuance costs and finance lease obligations (See Note 5. Leases, for the future lease payments), consisted of the following (in millions):


	Amount
2023	$	1,059
2024	2,850
2025	2,161
2026	1,803
2027	754
Later	3,081
Total estimated future maturities	$	11,708

$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

June 17, 2022, Revolving Credit Agreements

On June 17, 2022, the Company entered into a $3.5 billion unsecured five-year revolving credit facility and a $1.5 billion unsecured 18-month revolving credit facility, with designated borrowers from time to time party thereto and lenders from time to time party thereto (the “2022 Revolving Credit Agreements”). Interest on borrowings under the revolving credit facilities accrue at applicable margins based on the Company's Index Debt Rating and ranges from 80 basis points to 150 basis points over specified benchmark rates for eurocurrency rate and Secured Overnight Financing Rate (“SOFR”) loans, as applicable. Additionally, the Company pays commitment fees to maintain the availability under the revolving credit facility at applicable fee rates based upon certain criteria at an annual rate on the unutilized portion of the total credit commitment. The five-year facility’s termination date is June 17, 2027, or earlier, subject to the Company's discretion to terminate the agreement. The 18-month facility’s termination date is December 15, 2023, or earlier, subject to the Company's discretion to terminate the agreement. As of August 31, 2022, there were no borrowings outstanding under the 2022 Revolving Credit Agreements.

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 was drawn for the purpose of funding the consideration due for the purchase of the increased equity interest in VillageMD, and paying fees and expenses related to the foregoing, and the remainder can be used for general corporate purposes. The maturity dates on the 364-day loan, the two-year loan and the three-year loan are February 15, 2023, November 24, 2023 and November 24, 2024, respectively. As of August 31, 2022, there were $4.0 billion in borrowings outstanding under the November 2021 DDTL. Amounts borrowed under the November 2021 DDTL and repaid or prepaid may not be reborrowed.

Borrowings under the November 2021 DDTL bear interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate, eurocurrency rate or, from and after the date that daily SOFR becomes available under the November 2021 DDTL, the daily SOFR, 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. On June 17, 2022, the Company terminated the 2020 Revolving Credit Agreement.

August 2018 Revolving Credit Agreement

On August 29, 2018, the Company entered into a revolving credit agreement (the “August 2018 Revolving Credit Agreement”) with the lenders and letter of credit issuers from time-to-time party thereto. The August 2018 Revolving Credit Agreement is an unsecured revolving credit facility with aggregate commitment in the amount of $3.5 billion, with a letter of credit subfacility commitment amount of $500 million. The facility termination date is the earlier of (a) August 29, 2023, subject to extension thereof pursuant to the August 2018 Revolving Credit Agreement, and (b) the date of termination in whole of the aggregate amount of the revolving commitments pursuant to the August 2018 Revolving Credit Agreement. On June 17, 2022, the Company terminated the August 2018 Revolving Credit Agreement.

Debt covenants

Each of the Company’s credit facilities described above contain a covenant to maintain, as of the last day of each fiscal quarter, a ratio of consolidated debt to total capitalization not to exceed 0.60:1.00, subject to increase in certain circumstances set forth in the applicable credit agreement. The credit facilities contain various other customary covenants. As of August 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 commercial paper outstanding of $910 million, $1.9 billion and $2.5 billion at a weighted average interest rate of 0.55%, 0.45% and 2.15% for fiscal 2022, 2021 and 2020, respectively. As of August 31, 2022 and 2021, there were no borrowings outstanding under the commercial paper program.

A subsidiary of the Company had average daily commercial paper outstanding under its commercial paper program, which was issued to the Bank of England under the Joint HM Treasury and Bank of England's COVID Corporate Financing Facility (“CCFF”), of £300 million or approximately $424 million at a weighted average interest rate of 0.43% in fiscal 2021. The subsidiary of the Company repaid the commercial paper issued under the CCFF on May 14, 2021. The subsidiary had no further issuances under its commercial paper program which it subsequently terminated on October 10, 2022 (“Termination Date”). As of August 31, 2022, and as of the Termination Date, the subsidiary had no borrowings outstanding under its commercial paper program.

Interest

Interest paid by the Company was $420 million, $916 million and $584 million in fiscal 2022, 2021 and 2020, respectively. Interest paid in fiscal 2022 and 2021 included charges on early extinguishment of debt of $6 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
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-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
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-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
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-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
-Topic 470
-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
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-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

12 Months Ended

Aug. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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):


August 31, 2022	Notional		Fair value		Location in Consolidated Balance Sheets
Derivatives designated as hedges:
Foreign currency forwards	$	448	$	19	Other current assets
Cross currency interest rate swaps	150		12		Other current assets
Cross currency interest rate swaps	750		83		Other non-current assets
Foreign currency forwards	3		—		Other non-current assets
Foreign currency forwards	221		1		Other current liabilities




Derivatives not designated as hedges:
Foreign currency forwards	$	2,874	$	49	Other current assets

Foreign currency forwards	1,098		6		Other current liabilities
Total return swap	183		6		Other current liabilities


August 31, 2021	Notional		Fair value		Location in Consolidated 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 within Accumulated other comprehensive income (loss) in the Consolidated 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 within Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, and released to the Consolidated Statements of Earnings when the hedged cash flows affect earnings.

Derivatives not designated as hedges

The Company enters into derivative transactions that are not designated as accounting hedges. These derivative instruments are economic hedges of foreign currency risks. 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):


	Location in Consolidated Statements of Earnings	2022		2021		2020
Foreign currency forwards	Selling, general and administrative expense 1	$	—	$	(75)	$	(63)
Total return swap	Selling, general and administrative expense	(33)		58		24
Foreign currency forwards	Other income, net 1,2	523		(8)		11

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

2.Excludes remeasurement gains and losses on economically hedged assets and liabilities.

Derivatives credit risk

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

Derivatives offsetting

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

Fair value measurements

12 Months Ended

Aug. 31, 2022

Fair Value Disclosures [Abstract]

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):


	August 31, 2022		Level 1		Level 2		Level 3
Assets:
Money market funds 1	$	1,114	$	1,114	$	—	$	—
Foreign currency forwards 2	69		—		69		—
Cross currency interest rate swaps 3	96		—		96		—
Investments in equity securities 4	1		1		—		—
Investment in debt securities 6	130		—		130		—
Liabilities:
Foreign currency forwards 2	$	7	$	—	$	7	$	—
Total return swaps	6		—		6		—


	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		—
Total return swaps	2		—		2		—
Investments in equity securities 4	2		2		—		—
Cross currency interest rate swaps 3	1		—		1		—
Liabilities:
Cross currency interest rate swaps 3	$	32	$	—	$	32	$	—
Foreign currency forwards 2	5		—		5		—

1Money market funds are valued at the closing price reported by the fund sponsor and classified as marketable securities on the Consolidated Balance Sheets.

2The 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.

3The 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.

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

5Level 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 Balance Sheets. Inputs include the enterprise value, expected holding term of the investment, volatility and risk-free interest rates.

6Includes investments in Treasury debt securities.

There were no transfers between Levels in fiscal 2022 or 2021.

The carrying value of the Company's commercial paper and credit facilities approximated their respective fair values due to their short-term nature.

The Company reports its debt instruments under the guidance of ASC Topic 825, Financial Instruments, which requires disclosure of the fair value of the Company’s debt in the footnotes to the Consolidated Financial Statements. As of August 31, 2022, the carrying amounts and estimated fair values of long term notes outstanding including the current portion were $7.6 billion and $7.1 billion, respectively.

The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the August 31, 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 August 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	12 Months Ended
Commitments and contingencies	Aug. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies The Company is involved in legal proceedings arising in the normal course of its business, including litigation, arbitration and other claims, and investigations, inspections, subpoenas, audits, claims, inquiries and similar actions by governmental authorities in pharmacy, healthcare, tax and other areas. Some of these proceedings may be class actions, and some involve claims for large or indeterminate amounts, including punitive or exemplary damages, and they may remain unresolved for several years. Legal proceedings in general, and securities, class action and multi-district litigation, in particular, can be expensive and disruptive. From time to time, the Company is also involved in legal proceedings as a plaintiff involving antitrust, tax, contract, intellectual property and other matters. Gain contingencies, if any, are recognized when they are realized. The Company is subject to extensive regulation by national, state and local government agencies in the U.S. and other countries in which it operates. The Company’s business, compliance and reporting practices are subject to intensive scrutiny under applicable regulation, including review or audit by regulatory authorities. As a result, the Company regularly is the subject of government actions of the types described herein. The Company also may be named from time to time in qui tam actions initiated by private parties. In such an action, a private party purports to act on behalf of federal or state governments, alleges that false claims have been submitted for payment by the government and may receive an award if its claims are successful. After a private party has filed a qui tam action, the government must investigate the private party's claim and determine whether to intervene in and take control over the litigation. These actions may remain under seal while the government makes this determination. If the government declines to intervene, the private party may nonetheless continue to pursue the litigation on its own purporting to act on behalf of the government. The results of legal proceedings, including government investigations, are often uncertain and difficult to predict, and the costs incurred in these matters can be substantial, regardless of the outcome. In addition, as a result of governmental investigations or proceedings, the Company may be subject to damages, civil or criminal fines or penalties, or other sanctions, including the possible suspension or loss of licensure and suspension or exclusion from participation in government programs. 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 August 31, 2022. The Court issued a final judgment order approving the settlement on October 13, 2022. Securities Claims Relating to Rite-Aid Merger On December 11, 2017, purported Rite Aid shareholders filed an amended complaint in a putative class action lawsuit in the U.S. District Court for the Middle District of Pennsylvania (the “M.D. Pa. class action”) arising out of transactions contemplated by the merger agreement between the Company and Rite Aid. The amended complaint alleges that the Company and certain of its officers made false or misleading statements regarding the transactions. 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). Following a bench trial, the court entered a liability finding against Walgreens in August 2022. The court has scheduled a second trial regarding remedies for November 2022 at which time the court will determine how much is to be paid. The Company has the right to appeal any judgment but is unable to predict the outcome relative to remedies or apportionment as well as the outcome of any appeal as the trial is 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 a second trial regarding remedies took place in May 2022. In August 2022, the court entered orders providing for injunctive relief and requiring the defendants to pay $650.6 million over a 15-year period to fund abatement programs. The court found that the damages are subject to joint and several liability and as such made no determination as to apportionment. These decisions are currently on appeal. •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, in a decision that is on appeal. The court has indicated that trial will commence in March 2023. •Five additional bellwether cases designated in April 2021: (1) Cobb Cnty. v. Purdue Pharma L.P., et al., Case No. 18-op-45817 (N.D. Georgia); (2) Durham Cnty. v. AmerisourceBergen Drug Corp., et al., Case No. 19-op-45346 (M.D. North Carolina); (3) Montgomery Cnty. Bd. of Cnty. Commrs., et al. v. Cardinal Health, Inc., et al., Case No. 18-op-46326 (S.D. Ohio); (4) Board of Cnty. Commrs. of the Cnty. of Santa Fe v. Purdue Pharma L.P., et al., Case No. 18-op-45776 (D. New Mexico); and (5) Cnty. of Tarrant v. Purdue Pharma L.P., et al., Case No. 18-op-45274 (N.D. Texas). •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, currently ongoing). •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, - June 2023). •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). •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 - April 2024). •Florida (Florida Health Sciences Center, Inc., et al. v. Richard Sackler, et al., Case No. CACE 19-018882, Seventeenth Judicial Circuit Court, Broward County, Florida - October 2024). 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 will be applied as 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. In fiscal 2022, the Company recorded a $683 million liability associated with this settlement. The settlement accrual is reflected in the Consolidated Statement of Earnings within Selling, general and administrative expenses as part of the U.S. Retail Pharmacy segment.

Income taxes

12 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

Income taxes

U.S. tax law changes

On August 16, 2022, the United States government enacted the Inflation Reduction Act of 2022 (“IRA”). The IRA establishes a new corporate alternative minimum tax based on financial statement income adjusted for certain items. The new minimum tax is effective for tax years beginning after December 31, 2022 (fiscal 2024). The enactment of the IRA did not have a material impact to the Company’s financial statements.

During 2019, the U.S. Treasury Department issued regulations to apply retroactively covering certain components of the Tax Cuts and Jobs Act of 2017. Certain guidance included in these regulations is inconsistent with the Company’s interpretation that led to the recognition of $247 million of tax benefits in prior periods. The tax benefits relate to the Company’s one-time transition tax on certain un-repatriated earnings of foreign subsidiaries, which was enacted as part of the 2017 U.S. tax law changes. Despite this guidance, the Company remains confident in its interpretation of the U.S. tax law changes and intends to defend this position through litigation, if necessary. However, if the Company is ultimately unsuccessful in defending its position, it may be required to reverse all or a portion of the benefits previously recorded.

UK tax law changes

On June 10, 2021, the UK Finance Act 2021 was enacted increasing the UK tax rate from 19% to 25% effective April 1, 2023. The Company recorded tax expense of $344 million from re-measuring the net UK deferred tax liability in fiscal 2021. On July 22, 2020, the UK Finance Bill 2020 was enacted increasing the UK tax rate from 17% to 19% effective April 1, 2020. The Company recorded tax expense of $139 million from re-measuring the net UK deferred tax liability in fiscal 2020.

The components of earnings from continuing operations before income tax provision were (in millions):


	2022		2021		2020
U.S.	$	2,998	$	61	$	759
Non–U.S.	987		1,934		(313)
Total	$	3,985	$	1,995	$	446

The provision for income taxes from continuing operations consists of the following (in millions):


	2022		2021		2020
Current provision
Federal	$	39	$	79	$	184
State	37		115		49
Non–U.S.	260		234		135
	$	336	$	428	$	368
Deferred provision

Federal	$	(78)	$	(10)	$	(83)
State	(20)		(46)		2
Non–U.S. – tax law change	—		344		139
Non–U.S. – excluding tax law change	(268)		(49)		(87)
	(366)		239		(29)
Income tax (benefit) provision	$	(30)	$	667	$	339

The Company's effective tax rate for fiscal 2022 and 2021 was a 0.8% benefit and 33.4%, respectively. The net decrease in the effective tax rate was primarily attributable to pre-tax gains from the consolidation of the Company’s investments in VillageMD and Shields, for which a majority of these gains were not subject to tax. Additionally, the Company recognized tax benefit due to the reduction of a valuation allowance previously recorded against deferred tax assets related to capital loss carryforwards. The reduction is primarily due to capital loss carryforwards utilized in the current year against capital gains recognized on the sale of shares in AmerisourceBergen and Option Care, capital gains recognized from internal restructuring, and based on forecasted capital gains. See Note 3. Acquisitions and other investments and Note 6. Equity method investments for further information.

The difference between the statutory federal income tax rate and the effective tax rate from continuing operations is as follows:


	2022		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	0.4		3.5		8.8
Foreign income taxed at non-U.S. rates	(3.0)		(4.4)		(17.0)
Non-taxable income	(2.7)		(5.0)		(47.5)
Non-deductible expenses	3.0		0.3		9.0
Tax law changes	—		17.3		31.3
Change in valuation allowance 1	(9.0)		(4.7)		4.1
Tax benefits from restructuring	—		(4.2)		—
Tax expense on non-operating equity earnings	—		6.1		—
Uncertain tax positions	1.3		6.2		7.5
Non-controlling interest	1.2		—		—
Goodwill impairment	—		—		72.5
Tax credits	(1.0)		(1.8)		(10.3)
Conversion of equity investment	(11.8)		—		—
Other	(0.2)		(0.9)		(3.4)
Effective income tax rate	(0.8)	%	33.4	%	76.0	%

1Net of changes in related tax attributes and tax benefits from capital losses generated and utilized in fiscal 2021.

The deferred tax assets and liabilities included in the Consolidated Balance Sheets consist of the following (in millions):


	August 31, 2022		August 31, 2021
Deferred tax assets:

Compensation and benefits	$	171	$	175

Insurance	108		103
Accrued rent & lease obligations	5,296		5,372

Allowance for doubtful accounts	53		34
Tax attributes	7,825		7,467
Stock compensation	56		88
Deferred income	120		34
Other 1	230		189
	$	13,859	$	13,462
Less: valuation allowance	7,521		7,239
Total deferred tax assets	$	6,338	$	6,223
Deferred tax liabilities:
Accelerated depreciation	$	634	$	896
Inventory	441		377
Intangible assets	1,134		1,465
Equity method investment	314		236
Lease right-of-use asset	4,763		4,792
Other 1	355		219
Total deferred tax liabilities	7,641		7,985
Net deferred tax liabilities	$	1,303	$	1,762

1Includes certain reclassifications to conform to current period presentation.

As of August 31, 2022, the Company has recorded deferred tax assets for tax attributes of $7.8 billion, primarily reflecting the benefit of $1.6 billion in U.S. federal, $153 million in state and $28.8 billion in non-U.S. ordinary and capital losses. In addition, these deferred tax assets include $91 million of income tax credits. Of these deferred tax assets, $7.3 billion will expire at various dates from 2023 through 2039. The residual deferred tax assets of $483 million have no expiration date.

The Company believes it is more likely than not that the benefit from certain deferred tax assets will not be realized. The assessment of realization of deferred tax assets is performed based on the weight of the positive and negative evidence available to indicate whether the asset is recoverable, including tax planning strategies that are prudent and feasible. In recognition of this risk, the Company has recorded a valuation allowance of $7.5 billion against those deferred tax assets as of August 31, 2022.

Income taxes paid, net of refunds were $387 million, $336 million and $626 million for fiscal 2022, 2021 and 2020, respectively.

ASC Topic 740, Income Taxes, provides guidance regarding the recognition, measurement, presentation and disclosure in the financial statement of tax positions taken or expected to be taken on a tax return, including the decision whether to file in a particular jurisdiction. As of August 31, 2022 and 2021, unrecognized tax benefits of $618 million and $594 million were reported as long-term liabilities; $473 million and $475 million were reported against deferred taxes; and $116 million and $114 million were reported against related tax receivables in Other non-current assets on the Consolidated Balance Sheets. These amounts include interest and penalties, when applicable.

The following table provides a reconciliation of the total amounts of unrecognized tax benefits (in millions):


	2022		2021		2020
Balance at beginning of year	$	1,098	$	494	$	455
Gross increases related to tax positions in a prior period	63		229		60
Gross decreases related to tax positions in a prior period	(51)		(52)		(23)
Gross increases related to tax positions in the current period	21		446		9
Settlements with taxing authorities	(19)		(13)		(4)

Lapse of statute of limitations	(2)		(6)		(3)
Balance at end of year	$	1,110	$	1,098	$	494

At August 31, 2022, 2021 and 2020, $529 million, $524 million and $353 million, respectively, of unrecognized tax benefits would favorably impact the effective tax rate if recognized. During the next twelve months, based on current knowledge, it is reasonably possible the amount of unrecognized tax benefits could decrease by up to $136 million due to anticipated federal and state tax audit settlements and the expirations of statutes of limitations associated with tax positions related to multiple state tax jurisdictions.

The Company recognizes interest and penalties in the income tax provision in its Consolidated Statements of Earnings. At August 31, 2022 and 2021, the Company had accrued interest and penalties of $97 million and $84 million, respectively. For the years ended August 31, 2022, 2021 and 2020, the amounts reported in income tax expense related to interest and penalties were $13 million, $26 million and $11 million, respectively.

The Company files a consolidated U.S. federal income tax return as well as income tax returns in various states and multiple foreign jurisdictions. It is generally no longer under audit examinations for U.S. federal income tax purposes for any years prior to fiscal 2014. With few exceptions, it is no longer subject to state and local income tax examinations by tax authorities for years before fiscal 2008. In foreign tax jurisdictions, the Company is generally no longer subject to examination by the tax authorities in the UK prior to 2015, Luxembourg prior to 2017 and in Germany prior to 2014.

The Company has received tax holidays from Swiss cantonal income taxes relative to certain of its Swiss operations. The income tax holidays expired in September 2022. Upon expiration, a reduced tax rate will extend through December 2029. The holidays had a beneficial impact of $104 million, $118 million and $124 million (inclusive of capital GILTI tax cost) during fiscal 2022, 2021 and 2020, respectively. This benefit is primarily included as part of the foreign income taxed at non-U.S. rates line in the effective tax rate reconciliation table above.

At August 31, 2022, it is not practicable for the Company to determine the amount of the unrecognized deferred tax liability it has with respect to temporary differences related to investments in foreign subsidiaries and foreign corporate joint ventures that are essentially permanent in duration.

- 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
-SubTopic 10
-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
-Publisher FASB
-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
-Topic 740
-SubTopic 10
-Section 50
-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
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-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

Stock compensation plans	12 Months Ended
Stock compensation plans	Aug. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock compensation plans	Stock compensation plans In fiscal 2021, the Company's Board of Directors approved the Walgreens Boots Alliance, Inc. 2021 Omnibus Incentive Plan (the “2021 Omnibus Plan”). The 2021 Omnibus Plan replicates the Walgreens Boots Alliance, Inc. 2013 Omnibus Incentive Plan and provides incentive compensation to the Company’s non-employee directors, officers and other eligible employees. The Company grants stock options, performance shares and restricted units under the 2021 Omnibus Plan. Performance shares issued under the 2021 Omnibus Plan offer performance-based incentive equity awards to certain employees. Restricted stock units are also equity-based awards with vesting requirements that are granted to key employees. The performance shares and restricted stock unit awards are both subject to restrictions as to continuous employment except in the case of death, normal retirement or total and permanent disability. Stock-based compensation expense associated with such plans for fiscal 2022, 2021 and 2020 was $133 million, $155 million and $137 million, respectively. Certain majority-owned subsidiaries within the U.S. Healthcare segment maintain standalone stock-based compensation plans. Stock-based compensation expense associated with such plans for fiscal 2022 was $269 million, including the impact of fair value adjustments resulting from acquisitions. Awards granted under standalone stock-based compensation plans include subsidiary units, profits interests, and options. Awards generally vest over time or subject to achievement of certain subsidiary performance targets. Certain awards accelerate vesting upon a change in control or upon the Company’s acquisition of additional subsidiary equity above a certain threshold. Unrecognized compensation cost related to non-vested awards, inclusive of awards issued under the 2021 Omnibus Plan and the standalone subsidiary stock compensation plans, was $399 million at August 31, 2022, which will be fully recognized over the next three years.

Retirement benefits

12 Months Ended

Aug. 31, 2022

Retirement Benefits [Abstract]

Retirement benefits

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

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

The Company has various defined benefit pension plans outside the U.S. The principal defined benefit pension plan is the Boots Pension Plan (the “Boots Plan”), which covers certain employees in the UK. The Boots Plan is a funded final salary defined benefit plan providing pensions and death benefits to members. The Boots Plan was closed to future accrual effective July 1, 2010, with pensions calculated based on salaries up until that date. The Boots Plan is governed by a trustee board, which is independent of the Company. The plan is subject to a full funding actuarial valuation on a triennial basis. The investment strategy of the principal defined benefit pension plan is to hold the majority of its assets in a diverse portfolio ("Matching Portfolio") which aims to broadly match the characteristics of the plan’s liabilities by investing in bonds, derivatives and other fixed income assets, with the remainder invested in predominantly return-seeking assets. Interest rate and inflation rate swaps are also employed to complement the role of fixed and index-linked bond holdings in liability risk management.

The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions):


	August 31, 2022		Level 1		Level 2		Level 3
Equity securities:
Equity securities 1	$	967	$	—	$	967	$	—

Debt securities:
Fixed interest government bonds 2	688		402		285		—
Index linked government bonds 2	1,785		1,785		—		—
Corporate bonds 3	1,980		—		1,980		—

Real estate:
Real estate 4	548		—		—		548

Other:
Other investments, net 5	636		10		(87)		713

Total	$	6,603	$	2,197	$	3,145	$	1,261


	August 31, 2021		Level 1		Level 2		Level 3
Equity securities:
Equity securities 1	$	1,316	$	—	$	1,316	$	—

Debt securities:
Fixed interest government bonds 2	514		101		412		—
Index linked government bonds 2	3,521		3,486		35		—
Corporate bonds3	2,851		1		2,850		—

Real estate:
Real estate 4	513		—		—		513

Other:
Other investments, net 5	1,761		107		1,024		629

Total	$	10,475	$	3,696	$	5,637	$	1,142

1Equity securities, which mainly comprise of investments in commingled funds, are valued based on quoted prices and are primarily exchange-traded. Securities for which official close or last trade pricing on an active exchange is available are classified as Level 1 investments. If closing prices are not available, or the investments are in a commingled fund, securities are valued at the last quoted bid price and typically are categorized as Level 2 investments.

2Debt securities: government bonds comprise of fixed interest and index linked bonds issued by central governments and are valued based on quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize pricing which considers readily available inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type, as well as dealer-supplied prices.

3Debt securities: corporate bonds comprise bonds issued by corporations in both segregated and commingled funds

and are valued using recently executed transactions, or quoted market prices for similar assets and liabilities in active markets, or for identical assets and liabilities in markets that are not active. If there have been no market transactions in a particular fixed income security, its fair value is calculated by pricing models that benchmark the security against other securities with actual market prices.

4Real estate comprise of investments in certain property funds which are valued based on the underlying properties. These properties are valued using a number of standard industry techniques such as cost, discounted cash flows, independent appraisals and market based comparable data. Real estate investments are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2022 were driven by actual return on plan assets still held at August 31, 2022 and purchases during the year.

5Other investments mainly comprise of net receivable (payable) amounts for unsettled transactions, cash and cash equivalents, derivatives, insurance linked securities and direct private placements. Cash is categorized as a Level 1 investment and cash in commingled funds is categorized as Level 2 investments. Amounts receivable (payable) are categorized as level 2 investments. Cash equivalents are valued using observable yield curves, discounting and interest rates and are categorized as Level 2 investments. Derivatives which are exchange-traded and for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market, or exchange on which they are traded, and are categorized as Level 1 investments. Over-the-counter derivatives typically are valued by independent pricing services and are categorized as Level 2 investments. Insurance linked securities are categorized as Level 2. Direct private placements are typically bonds valued by reference to comparable bonds and are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2022 were primarily driven by purchases during the year.

Components of net periodic pension costs for the defined benefit pension plans and cumulative pre-tax amounts recognized in accumulated other comprehensive (income) loss are as follows (in millions):


	Boots and other pension plans
	2022		2021		2020
Service costs (Selling, general and administrative expenses)	$	5	$	6	$	2
Interest costs (Other income, net)	149		139		141
Expected returns on plan assets/other (Other income, net)	(280)		(332)		(285)
Total net periodic pension (income) cost	$	(126)	$	(188)	$	(142)

Net actuarial (gain) loss	$	(251)	$	(506)	$	856
Prior service cost	(1)		(1)		(1)
Total pre-tax comprehensive (income) loss	$	(252)	$	(507)	$	855

Change in benefit obligations for the defined benefit pension plans (in millions):


	2022		2021
Benefit obligation at beginning of year	$	10,206	$	9,905
Service costs	5		6
Interest costs	149		139
Settlements	—		(2)
Net actuarial (gain) loss	(3,042)		75
Benefits paid	(304)		(320)
Acquisitions	—		182
Currency translation adjustments	(1,047)		223
Benefit obligation at end of year	$	5,967	$	10,206

Change in plan assets for the defined benefit pension plans (in millions):


	2022		2021
Plan assets at fair value at beginning of year	$	10,475	$	9,614
Employer contributions	45		53
Benefits paid	(304)		(320)
Return on assets/other	(2,477)		906
Settlements	—		(2)
Currency translation adjustments	(1,136)		223
Plan assets at fair value at end of year	$	6,603	$	10,475

Amounts recognized in the Consolidated Balance Sheets (in millions):


	August 31, 2022		August 31, 2021
Other non-current assets	$	863	$	602
Accrued expenses and other liabilities	(9)		(9)
Other non-current liabilities	(217)		(324)
Net asset recognized at end of year	$	637	$	269

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension plans, including accumulated benefit obligations in excess of plan assets, were as follows (in millions):


	August 31, 2022		August 31, 2021
Projected benefit obligation	$	5,967	$	10,206
Accumulated benefit obligation	5,961		10,200
Fair value of plan assets 1	6,603		10,475

1 Represents plan assets of The Boots plan, the Company's only funded defined benefit pension plan.

Estimated future benefit payments for the next 10 years from defined benefit pension plans to participants are as follows (in millions):


	Estimated future benefit payments
2023	$	285
2024	269
2025	279
2026	291
2027	302
2028-2032	1,645

The assumptions used in accounting for the defined benefit pension plans were as follows:


	2022		2021
Weighted-average assumptions used to determine benefit obligations
Discount rate	4.20	%	1.71	%
Rate of compensation increase	3.04	%	2.80	%

Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	1.57	%	1.39	%
Expected long-term return on plan assets	2.90	%	3.50	%
Rate of compensation increase	2.80	%	2.77	%

Based on current actuarial estimates, the Company plans to make contributions of $36 million to its defined benefit pension plans in fiscal 2023 and expects to make contributions beyond 2023, which will vary based upon many factors, including the performance of the defined benefit pension plan assets.

Defined contribution plans

The principal retirement plan for U.S. employees is the Walgreen Profit-Sharing Retirement Trust, to which both the Company and participating employees contribute. The Company’s contribution is in the form of a guaranteed match which is made pursuant to the applicable plan document approved by the Walgreen Co. Board of Directors. Plan activity is reviewed periodically by certain Committees of the Walgreens Boots Alliance Board of Directors. The profit-sharing provision is an expense of $234 million, $221 million and $227 million in fiscal 2022, 2021 and 2020, respectively. The Company’s contributions were $236 million, $222 million and $226 million in fiscal 2022, 2021 and 2020, respectively.

The Company also has certain contract based defined contribution arrangements. The principal one is UK based to which both the Company and participating employees contribute. The cost recognized in the Consolidated Statement of Earnings was $90 million, $101 million and $91 million in fiscal 2022, 2021 and 2020, respectively.

Post-retirement healthcare plan

The Company provides certain health insurance benefits to retired U.S. employees who meet eligibility requirements, including age, years of service and date of hire. The costs of these benefits are accrued over the service life of the employee. The Company’s post-retirement health benefit plan obligation was $122 million and $154 million in fiscal 2022 and 2021, respectively and is not funded. The expected benefit to be paid is $9 million.

Capital stock	12 Months Ended
Capital stock	Aug. 31, 2022
Capital Stock [Abstract]
Capital stock	Capital stock In June 2018, Walgreens Boots Alliance authorized a stock repurchase program (the “June 2018 stock repurchase program”), which authorized the repurchase of up to $10.0 billion of the Company's common stock, which program has no specified expiration date. In July 2020, the Company announced that it had suspended activities under this program and no shares were repurchased in fiscal 2021 or 2022. As of August 31, 2022, the Company had approximately $2.0 billion remaining under the June 2018 stock repurchase program. The Company determines the timing and amount of repurchases based on its assessment of various factors including prevailing market conditions, alternate uses of capital, liquidity, the economic environment and other factors. The timing and amount of these purchases may change at any time and from time to time. The Company has repurchased, and may from time to time in the future repurchase, shares on the open market through Rule 10b5-1 plans, which enable a company to repurchase shares at times when it otherwise might be precluded from doing so under insider trading laws. In addition, the Company continued to repurchase shares to support the needs of the employee stock plans. Shares totaling $187 million, $110 million and $103 million were purchased to support the needs of the employee stock plans during fiscal 2022, 2021 and 2020, respectively. As of August 31, 2022, 69 million shares of common stock were reserved for future issuances under the Company’s various employee benefit plans.

Accumulated other comprehensive income (loss)

12 Months Ended

Aug. 31, 2022

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

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss)The following is a summary of net changes in Accumulated other comprehensive income (loss) (“AOCI”) by component and net of tax for fiscal 2022, 2021 and 2020 (in millions):


	Pension/post-retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain (loss) on available for sale debt securities		Share of AOCI of equity method investments		Cumulative translation adjustments		Total
Balance at August 31, 2019	$	(48)	$	(24)	$	55	$	—	$	3	$	(3,884)	$	(3,897)
Other comprehensive (loss) income before reclassification adjustments	(861)		(12)		(113)		—		(16)		934		(69)
Amounts reclassified from AOCI	(8)		5		—		—		—		3		—
Tax benefit (provision)	169		1		23		—		3		(1)		195
Net change in other comprehensive (loss) income	(700)		(6)		(90)		—		(13)		936		126
Balance at August 31, 2020	$	(748)	$	(31)	$	(34)	$	—	$	(10)	$	(2,948)	$	(3,771)
Other comprehensive income (loss) before reclassification adjustments	532		10		(6)		127		(24)		384		1,022
Amounts reclassified from AOCI	(8)		17		—		—		—		(3)		6
Business disposal	(4)		—		—		—		—		795		792
Tax (provision) benefit	(132)		(6)		6		(31)		6		—		(157)
Net change in other comprehensive income (loss)	389		21		(1)		96		(18)		1,176		1,663
Balance at August 31, 2021	$	(359)	$	(10)	$	(35)	$	96	$	(29)	$	(1,772)	$	(2,109)
Other comprehensive income (loss) before reclassification adjustments	278		6		327		451		(326)		(833)		(97)
Amounts reclassified from AOCI	(22)		3		—		(577)		31		—		(565)
Other	(6)		—		—		—		—		—		(6)
Tax benefit (provision)	(48)		(2)		(79)		32		70		—		(27)
Net change in other comprehensive income (loss)	203		7		248		(95)		(226)		(833)		(696)
Balance at August 31, 2022	$	(157)	$	(3)	$	213	$	1	$	(254)	$	(2,605)	$	(2,805)

Segment reporting

12 Months Ended

Aug. 31, 2022

Segment Reporting [Abstract]

Segment reporting

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

In the fourth quarter of fiscal 2022, the Company changed the name of two reportable segments to better align with the Company’s business activities, structure and strategy. The “United States” segment was renamed to “U.S. Retail Pharmacy” and the “Walgreens Health” segment was renamed to “U.S. Healthcare”. The segment name changes did not result in any change to the composition of the segments and therefore no change to the historical results of segment operations. The information for these segments for all periods included in these consolidated financial statements has been presented using the new names..

As a result of the change, the Company is now aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare.

The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s operating segments. The chief operating decision maker uses adjusted operating income to assess segment profitability. The chief operating decision maker does not use total assets by segment to make decisions regarding resources; therefore, the total asset disclosure by segment has not been included.

U.S. Retail Pharmacy

The Company's U.S. Retail Pharmacy segment includes the Walgreens business which is comprised of the operations of retail drugstores, health and wellness services, specialty and home delivery pharmacy services, and its equity method investment in 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.

U.S. Healthcare

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

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

Selling, general and administrative costs for the U.S. Healthcare segment for fiscal 2021 have been reclassified in the Consolidated 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):


	2022		2021		2020
Sales:
U.S. Retail Pharmacy	$	109,078	$	112,005	$	107,701
International	21,830		20,505		14,281
U.S. Healthcare	1,795		—		—
Walgreens Boots Alliance, Inc.	$	132,703	$	132,509	$	121,982

Adjusted operating income (Non-GAAP measure):
U.S. Retail Pharmacy	$	5,029	$	5,019	$	4,761
International	726		466		157
U.S. Healthcare	(370)		(57)		—
Corporate and Other	(251)		(311)		(187)
Walgreens Boots Alliance, Inc.	$	5,133	$	5,117	$	4,730

Depreciation and amortization:
U.S. Retail Pharmacy	$	1,415	$	1,513	$	1,376
International	355		399		400
U.S. Healthcare	211		1		—
Corporate and Other	9		10		10
Walgreens Boots Alliance, Inc.	$	1,990	$	1,923	$	1,786

Capital expenditures:
U.S. Retail Pharmacy	$	1,207	$	1,030	$	1,040
International	295		243		235
U.S. Healthcare	218		34		—
Corporate and Other	15		5		12
Walgreens Boots Alliance, Inc.	$	1,734	$	1,312	$	1,287

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


	2022		2021		2020
Adjusted operating income (Non-GAAP measure):	$	5,133	$	5,117	$	4,730
Acquisition-related amortization	(855)		(523)		(384)
Impairment of goodwill and intangible assets	(783)		(49)		(2,016)
Certain legal and regulatory accruals and settlements	(768)		(75)		—
Transformational cost management	(763)		(417)		(719)
Acquisition-related costs	(223)		(54)		(315)
Adjustments to equity earnings (loss) in AmerisourceBergen	(218)		(1,645)		(97)
LIFO provision	(135)		(13)		(95)
Store optimization	—		—		(53)
Store damage and inventory losses	—		—		(68)
Operating income (GAAP measure)	$	1,387	$	2,342	$	982

No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Substantially all of our retail pharmacy sales are to customers covered by third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies) that agree to pay for all or a portion of a customer's eligible prescription purchases. In the U.S. Retail Pharmacy segment, three third-party payers accounted for approximately 31%, 33%, and 35% of the Company's consolidated sales in fiscal 2022, 2021 and 2020, respectively.

Geographic data for sales is as follows (in millions):


	2022		2021		2020
United States	$	110,873	$	112,005	$	107,701
United Kingdom	8,894		8,298		7,830
Germany	11,178		10,472		4,876
Other	1,757		1,734		1,575
Sales	$	132,703	$	132,509	$	121,982

Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):


	2022		2021
United States	$	9,577	$	9,665
United Kingdom	1,838		2,205
Other	314		377
Total long-lived assets	$	11,729	$	12,247

- 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

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+ Details

Sales

12 Months Ended

Aug. 31, 2022

Revenue from Contract with Customer [Abstract]

Sales

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


	2022		2021		2020
U.S. Retail Pharmacy
Pharmacy	$	80,434	$	84,892	$	80,481
Retail	28,643		27,113		27,220
Total	$	109,078	$	112,005	$	107,701

International
Pharmacy	$	3,727	$	3,808	$	3,503
Retail	6,924		6,225		5,902
Wholesale	11,178		10,472		4,876
Total	$	21,830	$	20,505	$	14,281

U.S. Healthcare	$	1,795	$	—	$	—

Walgreens Boots Alliance, Inc.	$	132,703	$	132,509	$	121,982

- 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
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+ Details

Related parties

12 Months Ended

Aug. 31, 2022

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):


	2022		2021		2020
Purchases, net	$	62,174	$	62,513	$	59,569

Trade accounts payable, net of Trade accounts receivable	$	6,915	$	6,589	$	6,390

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 in 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.

On August 31, 2022, in accordance with the Membership Interest Purchase Agreement, the Company acquired a controlling financial interest in CareCentrix. Mr. Shulman served as the Chairman of the Board of NDES Holdings, LLC (“NDES”), the former parent of CareCentrix. As of August 31, 2022, Mr. Shulman owns approximately 5.3% of the fully-diluted equity in NDES and has an indirect ownership interest in CareCentrix. After the acquisition, Mr. Shulman will serve as a member of the CareCentrix board. As a result of the acquisition, Mr. Shulman received $15.4 million in cash proceeds through his equity interests in NDES.

The Company, through its consolidated subsidiary Shields, provides pharmacy management services to UMass Memorial Medical Center, Inc. and UMass Memorial Accountable Care Organization, Inc.; entities affiliated with members of Shields. The total fees by the Company earned from these entities for services rendered in fiscal 2022 were $67 million.

Supplementary financial information

12 Months Ended

Aug. 31, 2022

Supplementary Financial Information [Abstract]

Supplementary financial information

Summary of Quarterly Results (Unaudited)

(in millions, except per share amounts)


	Quarter ended
	November		February		May		August		Fiscal year
Fiscal 2022
Sales	$	33,901	$	33,756	$	32,597	$	32,449	$	132,703
Gross profit	$	7,574	$	7,708	$	6,572	$	6,410	$	28,265
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	$	3,580	$	883	$	289	$	(415)	$	4,337
Discontinued operations	—		—		—		—		—
Total	$	3,580	$	883	$	289	$	(415)	$	4,337
Basic earnings (loss) per common share:
Continuing operations	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.02
Discontinued operations	—		—		—		—		—
Total	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.02
Diluted earnings (loss) per common share:
Continuing operations	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.01
Discontinued operations	—		—		—		—		—
Total	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.01

Cash dividends declared per common share	$	0.4775	$	0.4775	$	0.4775	$	0.4800	$	1.9125

Fiscal 2021
Sales	$	31,438	$	32,779	$	34,030	$	34,262	$	132,509
Gross profit	$	6,630	$	6,781	$	7,153	$	7,503	$	28,067
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	$	(391)	$	922	$	1,105	$	358	$	1,994
Discontinued operations	83		104		92		268		548
Total	$	(308)	$	1,026	$	1,197	$	627	$	2,542
Basic earnings (loss) per common share:
Continuing operations	$	(0.45)	$	1.07	$	1.28	$	0.41	$	2.31
Discontinued operations	0.10		0.12		0.11		0.31		0.63
Total	$	(0.36)	$	1.19	$	1.38	$	0.72	$	2.94
Diluted earnings (loss) per common share:
Continuing operations	$	(0.45)	$	1.06	$	1.27	$	0.41	$	2.30
Discontinued operations	0.10		0.12		0.11		0.31		0.63
Total	$	(0.36)	$	1.19	$	1.38	$	0.72	$	2.93

Cash dividends declared per common share	$	0.4675	$	0.4675	$	0.4675	$	0.4775	$	1.8800

See Note 2. Discontinued operations for further information on discontinued operations.

Subsequent events	12 Months Ended
Subsequent events	Aug. 31, 2022
Subsequent Events [Abstract]
Subsequent events	Subsequent events On September 20, 2022, the Company announced the acceleration of its plans for full ownership of Shields. The Company entered into a definitive agreement to acquire the remaining 30% equity interest for approximately $1.37 billion of cash consideration. The transaction is expected to close in the second quarter of fiscal 2023. On October 11, 2022, the Company announced the acceleration of its plans for full ownership of CareCentrix. The Company entered into a definitive agreement to acquire the remaining 45% equity interest for approximately $392 million of cash consideration. The acquisition is subject to limited customary closing conditions and is expected to close by March 2023.

Summary of major accounting policies (Policies)

12 Months Ended

Aug. 31, 2022

Accounting Policies [Abstract]

Basis of presentation

Cash and cash equivalents

Restricted cash and other cash flows from operating activities

Restricted cash

The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agreements and cash restricted by law and other obligations.

Accounts receivable

Inventories

The Company’s International segment inventory is accounted for using average cost and the FIFO method.

Property, plant and equipment

The following table summarizes the Company’s property, plant and equipment (in millions) and estimated useful lives (in years):


	Estimated useful life	2022		2021
Land and land improvements	20	$	2,333	$	2,782
Buildings and building improvements	3 to 50	6,996		7,453
Fixtures and equipment	3 to 20	9,375		9,974
Capitalized system development costs and software	3 to 10	3,087		2,802
Assets under construction 1		1,785		1,294
Finance lease properties		996		1,016
		$	24,572	$	25,321
Less: accumulated depreciation and amortization		12,843		13,073
Balance at end of year		$	11,729	$	12,247

1.In fiscal 2022, Assets under construction have been presented separately. Prior period data has been reclassified to conform to the current period presentation.

The Company capitalizes application development stage costs for internally developed software. These costs are amortized over a three to ten year period.

Leases

Finance leases are recognized within property, plant and equipment and as a finance lease liability within accrued expenses and other liabilities and other noncurrent liabilities.

Business combinations

Variable interest entities

Goodwill and indefinite-lived intangible assets

Equity method investments

Financial instruments

•Changes in the fair value of a derivative not designated in a hedging relationship are recognized in the Consolidated Statements of Earnings.

Cash receipts or payments on a settlement of a derivative contract are reported in the Consolidated Statements of Cash Flows consistent with the nature of the underlying hedged item.

Pension and postretirement benefits

Pension and post-retirement benefits

Redeemable noncontrolling interest

Redeemable non-controlling interests

Noncontrolling interests

Non-controlling interests

Currency

Commitments and contingencies

Commitments and contingenciesThe Company assesses its liabilities and contingencies for outstanding legal proceedings and reserves are established on a case-by-case basis for those legal claims for which management concludes that it is probable that a loss will be incurred and that the amount of such loss can be reasonably estimated. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. With respect to litigation and other legal proceedings where the Company has determined that a loss is reasonably possible, the Company may be unable to estimate the amount or range of reasonably possible loss due to the inherent difficulty of predicting the outcome of and uncertainties regarding such litigation and legal proceedings. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Therefore, it is possible that an unfavorable resolution of one or more pending litigation or other contingencies could have a material adverse effect on the Company’s Consolidated Financial Statements in a future fiscal period. Management’s assessment of current litigation and other legal proceedings, including the corresponding accruals, could change because of the discovery of facts with respect to legal actions or other proceedings pending against the Company which are not presently known. Adverse rulings or determinations by judges, juries, governmental authorities or other parties could also result in changes to management’s assessment of current liabilities and contingencies. Accordingly, the ultimate costs of resolving these claims may be substantially higher or lower than the amounts reserved.

Revenue recognition, Cost of sales

Revenue recognition

Retail and Pharmacy

Wholesale

Wholesale revenue is recognized, net of taxes and expected returns, upon shipment of goods, which is generally also the day of delivery.

Healthcare services

Cost of sales

Retail, Pharmacy and Wholesale

Healthcare services

Selling, general and administrative expenses

Advertising costs

Impairment of long-lived assets

Stock compensation plans

Stock compensation plansStock based compensation is measured at fair value at the grant date. The Company grants stock options, performance shares and restricted units to the Company’s non-employee directors, officers and employees. The Company recognizes compensation expense on a straight-line basis over the substantive service period.

Insurance

Income taxes

Earnings per share

Earnings per shareThe dilutive effect of outstanding stock options on earnings per share is calculated using the treasury stock method. Stock options are anti-dilutive and excluded from the earnings per share calculation if the exercise price exceeds the average market price of the common shares.

New accounting pronouncements

Adoption of new accounting pronouncements

Receivables - nonrefundable fees and others

Investments — equity securities; Investments — equity method and joint ventures; Derivatives and hedging

Income taxes - simplifying the accounting for income taxes

Effects of reference rate reform on financial reporting

New accounting pronouncements not yet adopted

Acquired contract assets and contract liabilities in a business combination

Disclosures by business entities about government assistance

Liabilities—Supplier Finance Programs

Summary of major accounting policies (Tables)

12 Months Ended

Aug. 31, 2022

Accounting Policies [Abstract]

Schedule of reconciliation of cash and cash equivalents


	August 31, 2022		August 31, 2021
Cash and cash equivalents	$	1,358	$	559
Marketable securities	1,114		634
Restricted cash - (included in other current assets)	86		77
Cash, cash equivalents, marketable securities and restricted cash	$	2,558	$	1,270

Schedule of property, plant and equipment

The following table summarizes the Company’s property, plant and equipment (in millions) and estimated useful lives (in years):


	Estimated useful life	2022		2021
Land and land improvements	20	$	2,333	$	2,782
Buildings and building improvements	3 to 50	6,996		7,453
Fixtures and equipment	3 to 20	9,375		9,974
Capitalized system development costs and software	3 to 10	3,087		2,802
Assets under construction 1		1,785		1,294
Finance lease properties		996		1,016
		$	24,572	$	25,321
Less: accumulated depreciation and amortization		12,843		13,073
Balance at end of year		$	11,729	$	12,247

Temporary Equity

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


	Walgreens Boots Alliance, Inc.
August 31, 2020	$	—
Recognition upon acquisition of subsidiary	309
Redemption price adjustments 1	19
Net loss attributable to redeemable non-controlling interests	(3)
Currency translation adjustments and other	(6)
August 31, 2021	$	319
Recognition upon acquisition of subsidiary 2	2,684
Acquisition of non-controlling interests 3	(2,047)
Redemption price adjustments 1	179
Net loss attributable to redeemable non-controlling interests	(73)
Currency translation adjustments and other	(20)
August 31, 2022 4	$	1,042

1.Remeasurement of non-controlling interests, probable of redemption but not currently redeemable, to their redemption value, is recorded to Paid in capital in the Consolidated Balance Sheets.

4.Redeemable non-controlling interests primarily relates to Shields, CareCentrix, and Innovation Associates, Inc.

Discontinued operations (Tables)

12 Months Ended

Aug. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedules of discontinued operations

The following table shows the fair value of proceeds from the Alliance Healthcare Sale and net carrying value of the assets disposed:


Transaction proceeds and net assets disposed (in billions):
Fair value of proceeds from disposition 1	$	6.9
Net assets disposed	5.8
Gain before currency translation adjustments	1.1
Currency translation loss released due to disposition	(0.8)
Net gain on disposal of discontinued operation 2	$	0.3

1.Includes base consideration of $6.275 billion adjusted for net working capital and net cash adjustments as set forth in the Share Purchase Agreement.

2.The Company recorded insignificant amount of tax expense due to utilization of capital losses.

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


	2021		2020
Sales	$	16,070	$	19,349
Cost of sales	14,486		17,409
Gross profit	1,584		1,940
Selling, general and administrative expense 1	1,254		1,610
Operating income from discontinued operations	329		330
Other income (expense), net 2	314		(8)
Interest expense, net	(23)		(25)
Earnings before income tax – discontinued operations	621		297
Income tax provision	78		21
Post tax earnings from other equity method investments	15		10
Net earnings from discontinued operations	$	557	$	286

1 Includes $44 million of divestiture related costs incurred post completion of the Alliance Healthcare Sale.

2 Includes $322 million of gain on sale of discontinued operations.

Sales in prior years from the Disposal Group to the Company's continuing operations aggregate to (in millions):


	2021 1		2020
Sales	$	1,385	$	1,794

1 Sales in fiscal 2021 until date of disposal.

The following table presents cash flows from operating and investing activities for discontinued operations in prior periods (in millions):


	2021		2020
Cash (used for) provided by operating activities - discontinued operations	$	(132)	$	334
Cash used for investing activities - discontinued operations	(58)		(80)

- 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.

+ References

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+ Details

Acquisitions (Tables)

12 Months Ended

Aug. 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 amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions):


Purchase Price Allocation:
Total purchase price	$	5,200
Less: purchase price for issuance of new preferred units at fair value 1	(2,300)
Net consideration	2,900
Fair value of share-based compensation awards attributable to pre-combination services 2	683
Fair value of previously held equity and debt	3,211
Fair value of non-controlling interest	3,257
Total	$	10,051

Identifiable assets acquired and liabilities assumed:
Tangible assets 1	$	634
Intangible assets 3	1,621
Liabilities	(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 amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions):


Purchase Price Allocation:
Cash consideration	$	969
Fair value of share-based compensation awards attributable to pre-combination services	13
Fair value of previously held equity interests	502
Fair value of non-controlling interests	589
Total	$	2,074

Identifiable assets acquired and liabilities assumed:
Tangible assets	$	84
Intangible assets 1	1,060
Liabilities	(528)
Total identifiable net assets	$	616

Goodwill	$	1,457

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 1	$	320
Contingent consideration	4
Fair value of share-based compensation awards attributable to pre-combination services	66
Fair value of non-controlling interests	217
Total	$	607

Identifiable assets acquired and liabilities assumed:
Tangible assets	$	358
Intangible assets 2	460
Liabilities	(665)
Total identifiable net assets	$	153

Goodwill	$	454

1.Excludes $12 million of cash paid to employees, which was recognized as compensation expense by the Company.

Schedule of pro forma information and actual sales

The unaudited pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisitions occurred at the beginning of the periods presented or results which may occur in the future.


(Unaudited, in millions)	2022		2021
Sales	$	134,314	$	135,306

Actual sales of the acquisitions for the twelve months ended August 31, 2022 included in the Consolidated Statement of Earnings are as follows:


(in millions)	2022
Sales	$	1,795

Exit and disposal activities (Tables)

12 Months Ended

Aug. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring costs and reserves

Costs related to exit and disposal activities under the Transformational Cost Management Program for fiscal 2022, 2021 and 2020, respectively, were as follows (in millions):


Fiscal 2022	U.S. Retail Pharmacy		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	247	$	2	$	—	$	249
Asset impairments	132		58		—		190
Employee severance and business transition costs	156		29		25		210
Information technology transformation and other exit costs	12		29		—		40
Total pre-tax exit and disposal charges	$	546	$	118	$	25	$	690


Fiscal 2021	U.S. Retail Pharmacy		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	103	$	6	$	—	$	108
Asset impairments	15		9		—		24
Employee severance and business transition costs	79		40		45		165
Information technology transformation and other exit costs	20		17		—		38
Total pre-tax exit and disposal charges	$	217	$	72	$	46	$	335


Fiscal 2020	U.S. Retail Pharmacy		International		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	191	$	9	$	14	$	215
Asset impairments	51		19		2		72
Employee severance and business transition costs	132		93		45		270
Information technology transformation and other exit costs	70		42		(4)		108
Total pre-tax exit and disposal charges	$	444	$	163	$	58	$	665

Schedule of restructuring reserve by type of cost

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


	Lease obligations and other real estate costs		Asset impairments		Employee severance and business transition costs		Information technology transformation and other exit costs		Total
Balance at August 31, 2020	$	19	$	—	$	166	$	14	$	199
Costs	108		24		165		38		335
Payments	(69)		—		(252)		(31)		(351)
Other	(42)		(24)		(2)		(1)		(69)
Balance at August 31, 2021	$	17	$	—	$	77	$	20	$	114
Costs	249		190		210		40		690
Payments	(99)		—		(201)		(23)		(323)
Other	(157)		(190)		(9)		(11)		(367)
Balance at August 31, 2022	$	10	$	—	$	76	$	27	$	113

Leases (Tables)

12 Months Ended

Aug. 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:	August 31, 2022		August 31, 2021
Operating leases:
Operating lease right-of-use assets	$	21,259	$	21,893

Operating lease obligations - current	$	2,286	$	2,259
Operating lease obligations - non-current	21,517		22,153
Total operating lease obligations	$	23,803	$	24,412
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	645	$	725
Lease obligations included in:
Accrued expenses and other liabilities	$	37	$	37
Other non-current liabilities	899		974
Total finance lease obligations	$	936	$	1,010

Schedule of supplemental income statement and other information

Supplemental income statement information related to leases were as follows (in millions):


Statement of earnings supplemental information:	2022		2021		2020
Operating lease cost
Fixed	$	3,240	$	3,219	$	3,252
Variable 1	825		664		750
Finance lease cost
Amortization	$	44	$	45	$	40
Interest	50		52		54

Sublease income	$	105	$	84	$	75
Impairment of right-of-use assets	218		86		213
Impairment of finance lease assets	—		—		24
Gains on sale-leaseback transactions 2	619		367		308

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 was as follows (in millions):


Other supplemental information:	2022		2021		2020
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	3,351	$	3,414	$	3,251
Operating cash flows from finance leases	47		48		48
Financing cash flows from finance leases	43		42		47
Total	$	3,441	$	3,503	$	3,346
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	2,078	$	2,765	$	2,443
Finance leases	11		—		65
Total	$	2,089	$	2,765	$	2,508

Weighted average lease term and discount rate for real estate leases as of August 31, 2022 were as follows:


Weighted average lease terms and discount rates:	August 31, 2022		August 31, 2021
Weighted average remaining lease term in years
Operating leases	10.0		10.3
Finance leases	19.0		20.2

Weighted average discount rate
Operating leases	4.83	%	4.77	%
Finance leases	5.19	%	5.18	%

Schedule of future lease payments under operating leases

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


Future lease payments (fiscal years):	Finance lease		Operating lease

2023	$	87	$	3,440
2024	87		3,342
2025	86		3,236
2026	86		3,136
2027	86		3,038
Later	1,041		14,140
Total undiscounted minimum lease payments	$	1,471	$	30,333
Less: Present value discount	(536)		(6,530)
Lease liability	$	936	$	23,803

Schedule of future lease payments under finance leases

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


Future lease payments (fiscal years):	Finance lease		Operating lease

2023	$	87	$	3,440
2024	87		3,342
2025	86		3,236
2026	86		3,136
2027	86		3,038
Later	1,041		14,140
Total undiscounted minimum lease payments	$	1,471	$	30,333
Less: Present value discount	(536)		(6,530)
Lease liability	$	936	$	23,803

Equity method investments (Tables)

12 Months Ended

Aug. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity method investment

Equity method investments as of August 31, 2022 and 2021 were as follows (in millions, except percentages):


	2022			2021
	Carrying value		Ownership percentage	Carrying value		Ownership percentage
AmerisourceBergen	$	3,916	25%	$	4,407	28%
Others	1,579		8% - 50%	2,580		8% - 50%
Total	$	5,495		$	6,987

Summarized financial information of equity method investees

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

Balance sheet (in millions)


	August 31,
	2022		2021
Current assets	$	50,985	$	49,538
Non-current assets	26,497		27,442
Current liabilities	52,083		48,766
Non-current liabilities	19,712		22,046
Shareholders’ equity 1	5,687		6,168

1Shareholders’ equity at August 31, 2022 and 2021 includes $564 million and $646 million, respectively, related to non-controlling interests.

Statements of earnings (in millions)



	2022		2021		2020
Sales	$	268,189	$	232,719	$	208,625
Gross profit	13,248		10,889		8,707
Net earnings (loss)	1,988		(3,475)		1,624
Share of earnings (loss) from equity method investments	468		(512)		372

Goodwill and other intangible assets (Tables)

12 Months Ended

Aug. 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 activity (in millions):


Goodwill roll forward:	U.S. Retail Pharmacy		International		U.S. Healthcare		Walgreens Boots Alliance, Inc.
August 31, 2020	$	10,553	$	1,460	$	—	$	12,013
Acquisitions 1	394		21		—		414
Currency translation adjustments	—		(7)		—		(7)
August 31, 2021	$	10,947	$	1,474	$	—	$	12,421
Acquisitions 1	$	—	$	—	$	10,040	$	10,040


Currency translation adjustments	—		(181)		—		(181)
August 31, 2022	$	10,947	$	1,293	$	10,040	$	22,280

Schedule of finite-lived intangible assets by major class

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


Intangible assets:	August 31, 2022		August 31, 2021
Gross amortizable intangible assets
Customer relationships and loyalty card holders 1	$	4,619	$	3,522
Primary care provider network	1,247		—
Trade names and trademarks	760		361
Developed technology 2	436		156
Purchasing and payor contracts	15		317
Others 2	78		65
Total gross amortizable intangible assets	$	7,155	$	4,421

Accumulated amortization
Customer relationships and loyalty card holders 1	$	1,548	$	1,335
Primary care provider network	64		—
Trade names and trademarks	246		226
Developed technology 2	56		8
Purchasing and payor contracts	4		227
Others 2	35		29
Total accumulated amortization	1,953		1,826
Total amortizable intangible assets, net	$	5,202	$	2,595

Indefinite-lived intangible assets
Trade names and trademarks	$	4,319	$	5,276
Pharmacy licenses	1,209		2,066
Total indefinite-lived intangible assets	$	5,528	$	7,342

Total intangible assets, net	$	10,730	$	9,936

1Includes purchased prescription files.

2Includes certain reclassifications to conform to current period presentation.

Schedule of finite-lived intangible assets, future amortization expense

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


	2023		2024		2025		2026		2027
Estimated annual amortization expense	$	610	$	591	$	558	$	540	$	478

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Debt (Tables)

12 Months Ended

Aug. 31, 2022

Debt Disclosure [Abstract]

Schedule of short-term borrowings

Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted):


	August 31, 2022		August 31, 2021
Short-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,000	$	—
$8 billion note issuance 1
3.300% unsecured notes due 2021 2	—		1,250
Other 3	59		56
Total short-term debt	$	1,059	$	1,305

Schedule of Long-term Debt Instruments


Long-term debt
Credit facilities
Unsecured credit facility due 2023	$	1,998	$	—
Unsecured credit facility due 2024	999		—
$850 million note issuance 1
0.9500% unsecured notes due 2023	848		—
$1.5 billion note issuance 1
3.200% unsecured notes due 2030	498		497
4.100% unsecured notes due 2050 5	792		792
$6 billion note issuance 1
3.450% unsecured notes due 2026 5	1,443		1,442
4.650% unsecured notes due 2046 5	318		318
$8 billion note issuance 1
3.800% unsecured notes due 2024 5	1,155		1,154
4.500% unsecured notes due 2034 5	301		301
4.800% unsecured notes due 2044 5	869		868
£700 million note issuance 1
3.600% unsecured Pound Sterling notes due 2025	354		408
€750 million note issuance 1
2.125% unsecured Euro notes due 2026	752		873
$4 billion note issuance 4
3.100% unsecured notes due 2022 5	—		731
4.400% unsecured notes due 2042 5	263		263
Other 3	26		29
Total long-term debt, less current portion	$	10,615	$	7,675

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

2.On 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.

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

Schedule of future maturities of long-term debt


	Amount
2023	$	1,059
2024	2,850
2025	2,161
2026	1,803
2027	754
Later	3,081
Total estimated future maturities	$	11,708

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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+ Details

Financial instruments (Tables)

12 Months Ended

Aug. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional amounts of derivative instruments outstanding

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


August 31, 2022	Notional		Fair value		Location in Consolidated Balance Sheets
Derivatives designated as hedges:
Foreign currency forwards	$	448	$	19	Other current assets
Cross currency interest rate swaps	150		12		Other current assets
Cross currency interest rate swaps	750		83		Other non-current assets
Foreign currency forwards	3		—		Other non-current assets
Foreign currency forwards	221		1		Other current liabilities




Derivatives not designated as hedges:
Foreign currency forwards	$	2,874	$	49	Other current assets

Foreign currency forwards	1,098		6		Other current liabilities
Total return swap	183		6		Other current liabilities


August 31, 2021	Notional		Fair value		Location in Consolidated 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


	Location in Consolidated Statements of Earnings	2022		2021		2020
Foreign currency forwards	Selling, general and administrative expense 1	$	—	$	(75)	$	(63)
Total return swap	Selling, general and administrative expense	(33)		58		24
Foreign currency forwards	Other income, net 1,2	523		(8)		11

Fair value measurements (Tables)

12 Months Ended

Aug. 31, 2022

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

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


	August 31, 2022		Level 1		Level 2		Level 3
Assets:
Money market funds 1	$	1,114	$	1,114	$	—	$	—
Foreign currency forwards 2	69		—		69		—
Cross currency interest rate swaps 3	96		—		96		—
Investments in equity securities 4	1		1		—		—
Investment in debt securities 6	130		—		130		—
Liabilities:
Foreign currency forwards 2	$	7	$	—	$	7	$	—
Total return swaps	6		—		6		—


	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		—
Total return swaps	2		—		2		—
Investments in equity securities 4	2		2		—		—
Cross currency interest rate swaps 3	1		—		1		—
Liabilities:
Cross currency interest rate swaps 3	$	32	$	—	$	32	$	—
Foreign currency forwards 2	5		—		5		—

1Money market funds are valued at the closing price reported by the fund sponsor and classified as marketable securities on the Consolidated Balance Sheets.

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

6Includes investments in Treasury debt securities.

Income taxes (Tables)

12 Months Ended

Aug. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

The components of earnings from continuing operations before income tax provision were (in millions):


	2022		2021		2020
U.S.	$	2,998	$	61	$	759
Non–U.S.	987		1,934		(313)
Total	$	3,985	$	1,995	$	446

Provisions for income taxes

The provision for income taxes from continuing operations consists of the following (in millions):


	2022		2021		2020
Current provision
Federal	$	39	$	79	$	184
State	37		115		49
Non–U.S.	260		234		135
	$	336	$	428	$	368
Deferred provision

Federal	$	(78)	$	(10)	$	(83)
State	(20)		(46)		2
Non–U.S. – tax law change	—		344		139
Non–U.S. – excluding tax law change	(268)		(49)		(87)
	(366)		239		(29)
Income tax (benefit) provision	$	(30)	$	667	$	339

Difference between the statutory federal income tax rate and the effective tax rate

The difference between the statutory federal income tax rate and the effective tax rate from continuing operations is as follows:


	2022		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	0.4		3.5		8.8
Foreign income taxed at non-U.S. rates	(3.0)		(4.4)		(17.0)
Non-taxable income	(2.7)		(5.0)		(47.5)
Non-deductible expenses	3.0		0.3		9.0
Tax law changes	—		17.3		31.3
Change in valuation allowance 1	(9.0)		(4.7)		4.1
Tax benefits from restructuring	—		(4.2)		—
Tax expense on non-operating equity earnings	—		6.1		—
Uncertain tax positions	1.3		6.2		7.5
Non-controlling interest	1.2		—		—
Goodwill impairment	—		—		72.5
Tax credits	(1.0)		(1.8)		(10.3)
Conversion of equity investment	(11.8)		—		—
Other	(0.2)		(0.9)		(3.4)
Effective income tax rate	(0.8)	%	33.4	%	76.0	%

1Net of changes in related tax attributes and tax benefits from capital losses generated and utilized in fiscal 2021.

Deferred tax assets and liabilities included in the consolidated balance sheet

The deferred tax assets and liabilities included in the Consolidated Balance Sheets consist of the following (in millions):


	August 31, 2022		August 31, 2021
Deferred tax assets:

Compensation and benefits	$	171	$	175

Insurance	108		103
Accrued rent & lease obligations	5,296		5,372

Allowance for doubtful accounts	53		34
Tax attributes	7,825		7,467
Stock compensation	56		88
Deferred income	120		34
Other 1	230		189
	$	13,859	$	13,462
Less: valuation allowance	7,521		7,239
Total deferred tax assets	$	6,338	$	6,223
Deferred tax liabilities:
Accelerated depreciation	$	634	$	896
Inventory	441		377
Intangible assets	1,134		1,465
Equity method investment	314		236
Lease right-of-use asset	4,763		4,792
Other 1	355		219
Total deferred tax liabilities	7,641		7,985
Net deferred tax liabilities	$	1,303	$	1,762

1Includes certain reclassifications to conform to current period presentation.

Reconciliation of the total amounts of unrecognized tax benefits

The following table provides a reconciliation of the total amounts of unrecognized tax benefits (in millions):


	2022		2021		2020
Balance at beginning of year	$	1,098	$	494	$	455
Gross increases related to tax positions in a prior period	63		229		60
Gross decreases related to tax positions in a prior period	(51)		(52)		(23)
Gross increases related to tax positions in the current period	21		446		9
Settlements with taxing authorities	(19)		(13)		(4)

Lapse of statute of limitations	(2)		(6)		(3)
Balance at end of year	$	1,110	$	1,098	$	494

Retirement benefits (Tables)

12 Months Ended

Aug. 31, 2022

Retirement Benefits [Abstract]

Schedule of defined benefit plans using fair value hierarchy

The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions):


	August 31, 2022		Level 1		Level 2		Level 3
Equity securities:
Equity securities 1	$	967	$	—	$	967	$	—

Debt securities:
Fixed interest government bonds 2	688		402		285		—
Index linked government bonds 2	1,785		1,785		—		—
Corporate bonds 3	1,980		—		1,980		—

Real estate:
Real estate 4	548		—		—		548

Other:
Other investments, net 5	636		10		(87)		713

Total	$	6,603	$	2,197	$	3,145	$	1,261


	August 31, 2021		Level 1		Level 2		Level 3
Equity securities:
Equity securities 1	$	1,316	$	—	$	1,316	$	—

Debt securities:
Fixed interest government bonds 2	514		101		412		—
Index linked government bonds 2	3,521		3,486		35		—
Corporate bonds3	2,851		1		2,850		—

Real estate:
Real estate 4	513		—		—		513

Other:
Other investments, net 5	1,761		107		1,024		629

Total	$	10,475	$	3,696	$	5,637	$	1,142

3Debt securities: corporate bonds comprise bonds issued by corporations in both segregated and commingled funds

Components of net periodic benefit costs

Components of net periodic pension costs for the defined benefit pension plans and cumulative pre-tax amounts recognized in accumulated other comprehensive (income) loss are as follows (in millions):


	Boots and other pension plans
	2022		2021		2020
Service costs (Selling, general and administrative expenses)	$	5	$	6	$	2
Interest costs (Other income, net)	149		139		141
Expected returns on plan assets/other (Other income, net)	(280)		(332)		(285)
Total net periodic pension (income) cost	$	(126)	$	(188)	$	(142)

Net actuarial (gain) loss	$	(251)	$	(506)	$	856
Prior service cost	(1)		(1)		(1)
Total pre-tax comprehensive (income) loss	$	(252)	$	(507)	$	855

Accumulated and projected benefit obligations

Change in benefit obligations for the defined benefit pension plans (in millions):


	2022		2021
Benefit obligation at beginning of year	$	10,206	$	9,905
Service costs	5		6
Interest costs	149		139
Settlements	—		(2)
Net actuarial (gain) loss	(3,042)		75
Benefits paid	(304)		(320)
Acquisitions	—		182
Currency translation adjustments	(1,047)		223
Benefit obligation at end of year	$	5,967	$	10,206

Changes in fair value of plan assets

Change in plan assets for the defined benefit pension plans (in millions):


	2022		2021
Plan assets at fair value at beginning of year	$	10,475	$	9,614
Employer contributions	45		53
Benefits paid	(304)		(320)
Return on assets/other	(2,477)		906
Settlements	—		(2)
Currency translation adjustments	(1,136)		223
Plan assets at fair value at end of year	$	6,603	$	10,475

Amounts recognized in balance sheet

Amounts recognized in the Consolidated Balance Sheets (in millions):


	August 31, 2022		August 31, 2021
Other non-current assets	$	863	$	602
Accrued expenses and other liabilities	(9)		(9)
Other non-current liabilities	(217)		(324)
Net asset recognized at end of year	$	637	$	269

Schedule of projected benefit obligation

The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions):


	August 31, 2022		Level 1		Level 2		Level 3
Equity securities:
Equity securities 1	$	967	$	—	$	967	$	—

Debt securities:
Fixed interest government bonds 2	688		402		285		—
Index linked government bonds 2	1,785		1,785		—		—
Corporate bonds 3	1,980		—		1,980		—

Real estate:
Real estate 4	548		—		—		548

Other:
Other investments, net 5	636		10		(87)		713

Total	$	6,603	$	2,197	$	3,145	$	1,261


	August 31, 2021		Level 1		Level 2		Level 3
Equity securities:
Equity securities 1	$	1,316	$	—	$	1,316	$	—

Debt securities:
Fixed interest government bonds 2	514		101		412		—
Index linked government bonds 2	3,521		3,486		35		—
Corporate bonds3	2,851		1		2,850		—

Real estate:
Real estate 4	513		—		—		513

Other:
Other investments, net 5	1,761		107		1,024		629

Total	$	10,475	$	3,696	$	5,637	$	1,142

3Debt securities: corporate bonds comprise bonds issued by corporations in both segregated and commingled funds

Schedule of projected and accumulated benefit obligation and fair value of plan assets


	August 31, 2022		August 31, 2021
Projected benefit obligation	$	5,967	$	10,206
Accumulated benefit obligation	5,961		10,200
Fair value of plan assets 1	6,603		10,475

1 Represents plan assets of The Boots plan, the Company's only funded defined benefit pension plan.

Estimated future benefit payments

Estimated future benefit payments for the next 10 years from defined benefit pension plans to participants are as follows (in millions):


	Estimated future benefit payments
2023	$	285
2024	269
2025	279
2026	291
2027	302
2028-2032	1,645

Schedule of assumptions used

The assumptions used in accounting for the defined benefit pension plans were as follows:


	2022		2021
Weighted-average assumptions used to determine benefit obligations
Discount rate	4.20	%	1.71	%
Rate of compensation increase	3.04	%	2.80	%

Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	1.57	%	1.39	%
Expected long-term return on plan assets	2.90	%	3.50	%
Rate of compensation increase	2.80	%	2.77	%

Accumulated other comprehensive income (loss) (Tables)

12 Months Ended

Aug. 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 (loss) (“AOCI”) by component and net of tax for fiscal 2022, 2021 and 2020 (in millions):


	Pension/post-retirement obligations		Unrealized gain (loss) on cash flow hedges		Net investment hedges		Unrealized gain (loss) on available for sale debt securities		Share of AOCI of equity method investments		Cumulative translation adjustments		Total
Balance at August 31, 2019	$	(48)	$	(24)	$	55	$	—	$	3	$	(3,884)	$	(3,897)
Other comprehensive (loss) income before reclassification adjustments	(861)		(12)		(113)		—		(16)		934		(69)
Amounts reclassified from AOCI	(8)		5		—		—		—		3		—
Tax benefit (provision)	169		1		23		—		3		(1)		195
Net change in other comprehensive (loss) income	(700)		(6)		(90)		—		(13)		936		126
Balance at August 31, 2020	$	(748)	$	(31)	$	(34)	$	—	$	(10)	$	(2,948)	$	(3,771)
Other comprehensive income (loss) before reclassification adjustments	532		10		(6)		127		(24)		384		1,022
Amounts reclassified from AOCI	(8)		17		—		—		—		(3)		6
Business disposal	(4)		—		—		—		—		795		792
Tax (provision) benefit	(132)		(6)		6		(31)		6		—		(157)
Net change in other comprehensive income (loss)	389		21		(1)		96		(18)		1,176		1,663
Balance at August 31, 2021	$	(359)	$	(10)	$	(35)	$	96	$	(29)	$	(1,772)	$	(2,109)
Other comprehensive income (loss) before reclassification adjustments	278		6		327		451		(326)		(833)		(97)
Amounts reclassified from AOCI	(22)		3		—		(577)		31		—		(565)
Other	(6)		—		—		—		—		—		(6)
Tax benefit (provision)	(48)		(2)		(79)		32		70		—		(27)
Net change in other comprehensive income (loss)	203		7		248		(95)		(226)		(833)		(696)
Balance at August 31, 2022	$	(157)	$	(3)	$	213	$	1	$	(254)	$	(2,605)	$	(2,805)

Segment reporting (Tables)

12 Months Ended

Aug. 31, 2022

Segment Reporting [Abstract]

Reconciliation of revenue from segments to consolidated

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


	2022		2021		2020
Sales:
U.S. Retail Pharmacy	$	109,078	$	112,005	$	107,701
International	21,830		20,505		14,281
U.S. Healthcare	1,795		—		—
Walgreens Boots Alliance, Inc.	$	132,703	$	132,509	$	121,982

Adjusted operating income (Non-GAAP measure):
U.S. Retail Pharmacy	$	5,029	$	5,019	$	4,761
International	726		466		157
U.S. Healthcare	(370)		(57)		—
Corporate and Other	(251)		(311)		(187)
Walgreens Boots Alliance, Inc.	$	5,133	$	5,117	$	4,730

Depreciation and amortization:
U.S. Retail Pharmacy	$	1,415	$	1,513	$	1,376
International	355		399		400
U.S. Healthcare	211		1		—
Corporate and Other	9		10		10
Walgreens Boots Alliance, Inc.	$	1,990	$	1,923	$	1,786

Capital expenditures:
U.S. Retail Pharmacy	$	1,207	$	1,030	$	1,040
International	295		243		235
U.S. Healthcare	218		34		—
Corporate and Other	15		5		12
Walgreens Boots Alliance, Inc.	$	1,734	$	1,312	$	1,287

Reconciliation of operating profit (loss) from segments to consolidated

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


	2022		2021		2020
Adjusted operating income (Non-GAAP measure):	$	5,133	$	5,117	$	4,730
Acquisition-related amortization	(855)		(523)		(384)
Impairment of goodwill and intangible assets	(783)		(49)		(2,016)
Certain legal and regulatory accruals and settlements	(768)		(75)		—
Transformational cost management	(763)		(417)		(719)
Acquisition-related costs	(223)		(54)		(315)
Adjustments to equity earnings (loss) in AmerisourceBergen	(218)		(1,645)		(97)
LIFO provision	(135)		(13)		(95)
Store optimization	—		—		(53)
Store damage and inventory losses	—		—		(68)
Operating income (GAAP measure)	$	1,387	$	2,342	$	982

Geographic data for net sales

Geographic data for sales is as follows (in millions):


	2022		2021		2020
United States	$	110,873	$	112,005	$	107,701
United Kingdom	8,894		8,298		7,830
Germany	11,178		10,472		4,876
Other	1,757		1,734		1,575
Sales	$	132,703	$	132,509	$	121,982

Geographic data for long-lived assets

Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):


	2022		2021
United States	$	9,577	$	9,665
United Kingdom	1,838		2,205
Other	314		377
Total long-lived assets	$	11,729	$	12,247

Sales (Tables)

12 Months Ended

Aug. 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):


	2022		2021		2020
U.S. Retail Pharmacy
Pharmacy	$	80,434	$	84,892	$	80,481
Retail	28,643		27,113		27,220
Total	$	109,078	$	112,005	$	107,701

International
Pharmacy	$	3,727	$	3,808	$	3,503
Retail	6,924		6,225		5,902
Wholesale	11,178		10,472		4,876
Total	$	21,830	$	20,505	$	14,281

U.S. Healthcare	$	1,795	$	—	$	—

Walgreens Boots Alliance, Inc.	$	132,703	$	132,509	$	121,982

Related parties (Tables)

12 Months Ended

Aug. 31, 2022

Schedule of related party transactions

Related party transactions with AmerisourceBergen (in millions):


	2022		2021		2020
Purchases, net	$	62,174	$	62,513	$	59,569

Trade accounts payable, net of Trade accounts receivable	$	6,915	$	6,589	$	6,390

Supplementary financial information (Tables)

12 Months Ended

Aug. 31, 2022

Supplementary Financial Information [Abstract]

Summary of quarterly results

Summary of Quarterly Results (Unaudited)

(in millions, except per share amounts)


	Quarter ended
	November		February		May		August		Fiscal year
Fiscal 2022
Sales	$	33,901	$	33,756	$	32,597	$	32,449	$	132,703
Gross profit	$	7,574	$	7,708	$	6,572	$	6,410	$	28,265
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	$	3,580	$	883	$	289	$	(415)	$	4,337
Discontinued operations	—		—		—		—		—
Total	$	3,580	$	883	$	289	$	(415)	$	4,337
Basic earnings (loss) per common share:
Continuing operations	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.02
Discontinued operations	—		—		—		—		—
Total	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.02
Diluted earnings (loss) per common share:
Continuing operations	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.01
Discontinued operations	—		—		—		—		—
Total	$	4.13	$	1.02	$	0.33	$	(0.48)	$	5.01

Cash dividends declared per common share	$	0.4775	$	0.4775	$	0.4775	$	0.4800	$	1.9125

Fiscal 2021
Sales	$	31,438	$	32,779	$	34,030	$	34,262	$	132,509
Gross profit	$	6,630	$	6,781	$	7,153	$	7,503	$	28,067
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	$	(391)	$	922	$	1,105	$	358	$	1,994
Discontinued operations	83		104		92		268		548
Total	$	(308)	$	1,026	$	1,197	$	627	$	2,542
Basic earnings (loss) per common share:
Continuing operations	$	(0.45)	$	1.07	$	1.28	$	0.41	$	2.31
Discontinued operations	0.10		0.12		0.11		0.31		0.63
Total	$	(0.36)	$	1.19	$	1.38	$	0.72	$	2.94
Diluted earnings (loss) per common share:
Continuing operations	$	(0.45)	$	1.06	$	1.27	$	0.41	$	2.30
Discontinued operations	0.10		0.12		0.11		0.31		0.63
Total	$	(0.36)	$	1.19	$	1.38	$	0.72	$	2.93

Cash dividends declared per common share	$	0.4675	$	0.4675	$	0.4675	$	0.4775	$	1.8800

See Note 2. Discontinued operations for further information on discontinued operations.

Summary of major accounting policies - narrative (Details) shares in Millions, $ in Millions	6 Months Ended	12 Months Ended
	Aug. 31, 2021 USD ($) segment	Aug. 31, 2022 USD ($) segment shares	Aug. 31, 2021 USD ($) shares	Aug. 31, 2020 USD ($) shares
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of reportable segments \| segment	3	3
Minimum number of days for settlement of credit and debit charges		1 day
Maximum number of days for settlement of credit and debit charges		7 days
Credit and debit card receivables	$ 146	$ 127	$ 146
Other cash flows from operating activities		(146)	(64)	$ 464
Gains on sale-leaseback transactions		619	367	308
Asset impairment impairments		380	203	462
Allowance for doubtful accounts	53	66	53
Inventories	8,159	8,353	8,159
Depreciation and amortization expense		$ 1,400	1,400	1,400
Term of renewal contract		5 years
Advertising expense		$ 862	$ 772	$ 532
Expected performance goal achievement rate		100.00%
Outstanding options to purchase common shares excluded from earnings per share calculations (in shares) \| shares		17.1	17.2	19.0
Trade Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	4,500	$ 4,000	$ 4,500
Other Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	1,100	$ 1,100	1,100
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term of lease		15 years
Highly effective hedging percentage		80.00%
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Term of lease		25 years
Highly effective hedging percentage		125.00%
Capitalized system development costs and software
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortization of capitalized system development costs and software		$ 307	284	$ 300
Unamortized capitalized software costs	1,100	$ 1,100	1,100
Capitalized system development costs and software \| Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated useful life		3 years
Capitalized system development costs and software \| Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated useful life		10 years
Selling, general and administrative expense
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impairment of definite-lived assets		$ 380	182	$ 401
U.S. Retail Pharmacy \| Reportable Segments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Inventories	6,200	6,500	6,200
LIFO reserve	3,300	3,400	3,300
International \| Reportable Segments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Inventories	$ 2,000	$ 1,800	$ 2,000

Summary of major accounting policies - reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 1,358	$ 559
Marketable securities	1,114	634
Cash, cash equivalents, marketable securities and restricted cash	2,558	1,270	$ 746	$ 1,207
Continuing operations
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	1,358	559
Marketable securities	1,114	634
Restricted cash	$ 86	$ 77

Summary of major accounting policies - property plant and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant, and equipment and finance lease right-of-use asset, before accumulated depreciation and amortization	$ 24,572	$ 25,321
Property, plant, and equipment and finance lease right-of-use asset, accumulated depreciation and amortization	12,843	13,073
Property and equipment, net	$ 11,729	12,247
Land and land improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Property and equipment	$ 2,333	2,782
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 6,996	7,453
Buildings and building improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Buildings and building improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	50 years
Fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	$ 9,375	9,974
Fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Capitalized system development costs and software
Property, Plant and Equipment [Line Items]
Property and equipment	$ 3,087	2,802
Capitalized system development costs and software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Capitalized system development costs and software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Asset under construction
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,785	1,294
Finance lease properties
Property, Plant and Equipment [Line Items]
Finance lease properties	$ 996	$ 1,016

Supplemental information - Schedule of Redeemable Non-controlling Interest (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Jan. 31, 2022
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	$ 319	$ 0
Recognition upon acquisition of subsidiary	2,684	309
Redemption price adjustments	179	19
Net loss attributable to redeemable noncontrolling interest	(73)	(3)
Currency translation adjustments and other	(20)	(6)
Acquisitions of non-controlling interests	(2,047)
Ending balance	1,042	319
Conversion of Stock [Line Items]
Recognition upon acquisition of subsidiary	2,684	$ 309
VillageMD
Increase (Decrease) in Temporary Equity [Roll Forward]
Recognition upon acquisition of subsidiary	1,900
Conversion of Stock [Line Items]
Recognition upon acquisition of subsidiary	$ 1,900
McKesson Corporation, GEHE Pharma Handel
Conversion of Stock [Line Items]
Outstanding equity interest percentage			30.00%

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
Proceeds from disposal, subject to net working capital and net cash adjustments	$ 6,700
Shares issued as part of disposal (in shares)	2
Estimated gain before currency translation adjustments	$ 1,100
Net gain on disposal	$ 322
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration]	Net earnings from discontinued operations
Receivable for purchase consideration			$ 98
Disposal group, contingent consideration, working capital adjustments		$ 38

Discontinued operations - schedule of transaction proceeds and net assets disposed (Details) - Discontinued operations, disposed of by sale - Alliance Healthcare $ in Millions	Jun. 01, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated fair value of proceeds from disposition	$ 6,900
Net assets disposed	5,800
Gain before currency translation adjustments	1,100
Currency translation loss released due to disposition	(800)
Net gain on disposal of discontinued operation	322
Base consideration	$ 6,275

Discontinued operations - schedules of results from discontinued operations (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 01, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net earnings from discontinued operations		$ 0	$ 557	$ 286
Gain on sale of business		$ 0	322	0
Discontinued operations, disposed of by sale \| Alliance Healthcare
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Sales			16,070	19,349
Cost of sales			14,486	17,409
Gross profit			1,584	1,940
Selling, general and administrative expense			1,254	1,610
Operating income from discontinued operations			329	330
Other income (expense)			314
Other income (expense)				(8)
Interest expense, net			(23)	(25)
Earnings before income tax – discontinued operations			621	297
Income tax provision			78	21
Post tax earnings from other equity method investments			15	10
Net earnings from discontinued operations			557	286
Divestiture related costs	$ 44
Gain on sale of business	$ 322
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract]
Sales			16,070	19,349
Net Cash Provided by (Used in) Discontinued Operations [Abstract]
Cash (used for) provided by operating activities - discontinued operations			(132)	334
Cash used for investing activities - discontinued operations			(58)	(80)
Discontinued operations, disposed of by sale \| Alliance Healthcare \| Continuing Operations
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Sales			1,385	1,794
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract]
Sales			$ 1,385	$ 1,794

Acquisitions - narrative (Details) - USD ($) $ in Millions						12 Months Ended
Acquisitions - narrative (Details) - USD ($) $ in Millions	Oct. 11, 2022	Sep. 20, 2022	Aug. 31, 2022	Nov. 24, 2021	Oct. 29, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Oct. 28, 2021
Business Acquisition [Line Items]
Gain on sale of equity method investment						$ 559	$ 321	$ 0
VillageMD
Business Acquisition [Line Items]
Total purchase price				$ 5,200
Business combination, consideration transferred, gross				4,000
Business combination, consideration transferred, other				1,200
Business combination, consideration transferred to existing stockholders				2,900
Business acquisition, value of common stock shares acquired				1,900
Business combination, cash transferred for preferred units				1,100
Gain on sale of equity method investment						1,597
Other comprehensive income (loss), reclassification adjustment from AOCI for investment transferred from available-for-sale to equity method, after tax						577
Intangible assets				$ 1,621
VillageMD \| Primary Care Provider Network
Business Acquisition [Line Items]
Intangible assets			$ 1,200			$ 1,200
Useful life of capitalized software costs						15 years
VillageMD \| Trade Names
Business Acquisition [Line Items]
Intangible assets			295			$ 295
Useful life of capitalized software costs						13 years
VillageMD \| Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets			$ 76			$ 76
Useful life of capitalized software costs						5 years
VillageMD \| Minimum
Business Acquisition [Line Items]
Outstanding equity interest percentage				30.00%
VillageMD \| Maximum
Business Acquisition [Line Items]
Outstanding equity interest percentage				63.00%
Shields Health Solutions
Business Acquisition [Line Items]
Outstanding equity interest percentage					70.00%				25.00%
Gain on sale of equity method investment						$ 402
Business combination, consideration transferred					$ 969
Intangible assets					$ 1,060
Shields Health Solutions \| Subsequent event
Business Acquisition [Line Items]
Outstanding equity interest percentage		30.00%
Total purchase price		$ 1,370
Shields Health Solutions \| Trade Names
Business Acquisition [Line Items]
Intangible assets							$ 47
Useful life of capitalized software costs							13 years
Shields Health Solutions \| Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets							$ 117
Useful life of capitalized software costs							5 years
Shields Health Solutions \| Customer Relationships
Business Acquisition [Line Items]
Intangible assets							$ 896
Useful life of capitalized software costs							13 years
CareCentrix, Inc.
Business Acquisition [Line Items]
Outstanding equity interest percentage			55.00%			55.00%
Business combination, consideration transferred, gross			$ 332
Business combination, consideration transferred			320
Intangible assets			460			$ 460
Business combination, consideration transferred, employees			12
CareCentrix, Inc. \| Subsequent event
Business Acquisition [Line Items]
Outstanding equity interest percentage	45.00%
Total purchase price	$ 392
CareCentrix, Inc. \| Trade Names
Business Acquisition [Line Items]
Intangible assets			90			90
Useful life of capitalized software costs							13 years
CareCentrix, Inc. \| Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets			86			86
Useful life of capitalized software costs							5 years
CareCentrix, Inc. \| Customer Relationships
Business Acquisition [Line Items]
Intangible assets			$ 284			284
Useful life of capitalized software costs							15 years
Other Acquisitions
Business Acquisition [Line Items]
Total purchase price						$ 196	$ 108

Acquisitions - schedule of purchase price allocation and identifiable assets acquired and liabilities assumed (Details) - USD ($) $ in Millions				12 Months Ended
	Aug. 31, 2022	Nov. 24, 2021	Oct. 29, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Identifiable assets acquired and liabilities assumed:
Acquisitions				$ 10,040	$ 414
Goodwill	$ 22,280			22,280	$ 12,421	$ 12,013
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 and debt		3,211
Fair value of non-controlling interest		3,257
Total		10,051
Identifiable assets acquired and liabilities assumed:
Tangible assets		634
Intangible assets		1,621
Liabilities		(245)
Total identifiable net assets		2,010
Acquisitions		$ 8,041
Shields Health Solutions
Purchase Price Allocation:
Business combination, consideration transferred			$ 969
Fair value of share-based compensation awards attributable to pre-combination services			13
Fair value of previously held equity and debt			502
Fair value of non-controlling interest			589
Total			2,074
Identifiable assets acquired and liabilities assumed:
Tangible assets			84
Intangible assets			1,060
Liabilities			(528)
Total identifiable net assets			616
Acquisitions				1,500
Goodwill			$ 1,457
CareCentrix, Inc.
Purchase Price Allocation:
Business combination, consideration transferred	320
Business combination, contingent consideration, liability	4			4
Fair value of share-based compensation awards attributable to pre-combination services	66
Fair value of non-controlling interest	217
Total	607
Identifiable assets acquired and liabilities assumed:
Tangible assets	358			358
Intangible assets	460			460
Liabilities	(665)			(665)
Total identifiable net assets	153			153
Acquisitions				454
Goodwill	$ 454			$ 454

Acquisitions - pro forma information (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Pro forma sales	$ 134,314	$ 135,306
Sales, actual	$ 1,795

Exit and disposal activities - narrative (Details) $ in Millions			12 Months Ended
	Oct. 12, 2021 USD ($) store	Dec. 20, 2018 USD ($)	Aug. 31, 2022 USD ($) store	Aug. 31, 2021 USD ($)	Aug. 31, 2020 USD ($)	Sep. 01, 2019 USD ($)	Aug. 31, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Cumulative effect adjustment to decrease retained earnings			$ (29,366)	$ (23,822)	$ (21,136)		$ (24,152)
Adoption of new accounting standards
Restructuring Cost and Reserve [Line Items]
Cumulative effect adjustment to decrease retained earnings					6		442
Retained earnings
Restructuring Cost and Reserve [Line Items]
Cumulative effect adjustment to decrease retained earnings			(37,801)	(35,121)	(34,210)		(35,815)
Retained earnings \| Adoption of new accounting standards
Restructuring Cost and Reserve [Line Items]
Cumulative effect adjustment to decrease retained earnings					3		$ 442
Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Costs incurred			2,000
Restructuring costs			$ 690	335	665
Transformational cost management program \| United Kingdom
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close \| store	350
Number of stores closed \| store			235
Transformational cost management program \| United States
Restructuring Cost and Reserve [Line Items]
Number of stores closed \| store			287
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			$ 603
Restructuring costs			249	108	215
Asset impairments \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Costs incurred			443
Restructuring costs			190	24	72
Employee severance and business transition costs \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Costs incurred			723
Restructuring costs			210	165	270
Information technology transformation and other exit costs \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Costs incurred			203
Restructuring costs			40	$ 38	$ 108
Minimum \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Expected annual cost savings of restructuring plan	$ 3,300	$ 2,000
Expected restructuring costs			3,600
Minimum \| Transformational cost management program \| United States
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close \| store	450
Minimum \| Exit and disposal costs \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs			3,300
Maximum \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Expected annual cost savings of restructuring plan			3,500
Expected restructuring costs			3,900
Maximum \| Transformational cost management program \| United States
Restructuring Cost and Reserve [Line Items]
Number of stores expected to close \| store	500
Maximum \| Exit and disposal costs \| Transformational cost management program
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs			$ 3,600

Exit and disposal activities - restructuring reserve activity (Details) - Transformational cost management program - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Restructuring Reserve [Roll Forward]
Beginning balance	$ 114	$ 199
Costs	690	335
Payments	(323)	(351)
Other - non cash	(367)	(69)
Ending balance	113	114
Lease obligations and other real estate costs
Restructuring Reserve [Roll Forward]
Beginning balance	17	19
Costs	249	108
Payments	(99)	(69)
Other - non cash	(157)	(42)
Ending balance	10	17
Asset impairments
Restructuring Reserve [Roll Forward]
Beginning balance	0	0
Costs	190	24
Payments	0	0
Other - non cash	(190)	(24)
Ending balance	0	0
Employee severance and business transition costs
Restructuring Reserve [Roll Forward]
Beginning balance	77	166
Costs	210	165
Payments	(201)	(252)
Other - non cash	(9)	(2)
Ending balance	76	77
Information technology transformation and other exit costs
Restructuring Reserve [Roll Forward]
Beginning balance	20	14
Costs	40	38
Payments	(23)	(31)
Other - non cash	(11)	(1)
Ending balance	$ 27	$ 20

Leases - supplemental balance sheet information (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Operating leases:
Operating lease right-of-use assets	$ 21,259	$ 21,893
Operating lease obligations - current	2,286	2,259
Operating lease obligations - non-current	21,517	22,153
Total operating lease obligations	23,803	24,412
Finance leases:
Property, plant and equipment, net	645	725
Lease obligations included in:
Accrued expenses and other liabilities	37	37
Other non-current liabilities	899	974
Total finance lease obligations	$ 936	$ 1,010
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other non-current liabilities	Other non-current liabilities

Leases - supplemental income statement information (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Operating lease cost
Fixed	$ 3,240	$ 3,219	$ 3,252
Variable	825	664	750
Finance lease cost
Amortization	44	45	40
Interest	50	52	54
Sublease income	105	84	75
Impairment of right-of-use assets	218	86	213
Impairment of finance lease assets	0	0	24
Gains on sale-leaseback transactions	$ 619	$ 367	$ 308

Leases - other supplemental information (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$ 3,351	$ 3,414	$ 3,251
Operating cash flows from finance leases	47	48	48
Financing cash flows from finance leases	43	42	47
Total	3,441	3,503	3,346
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	2,078	2,765	2,443
Finance leases	11	0	65
Total	$ 2,089	$ 2,765	$ 2,508

Leases - average lease terms and discount rates (Details)	Aug. 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	20 years 2 months 12 days
Weighted average discount rate
Operating leases	4.83%	4.77%
Finance leases	5.19%	5.18%

Leases - future lease payments for operating and finance leases (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Finance lease
2022	$ 87
2024	87
2025	86
2026	86
2027	86
Later	1,041
Total undiscounted minimum lease payments	1,471
Less: Present value discount	(536)
Lease liability	936	$ 1,010
Operating lease
2022	3,440
2024	3,342
2025	3,236
2026	3,136
2027	3,038
Later	14,140
Total undiscounted minimum lease payments	30,333
Less: Present value discount	(6,530)
Lease liability	$ 23,803	$ 24,412

Equity method investments - carrying value (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Schedule of Equity Method Investments [Line Items]
Carrying value	$ 5,495	$ 6,987
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Carrying value	$ 3,916	$ 4,407
Ownership percentage	25.00%	28.00%
Others
Schedule of Equity Method Investments [Line Items]
Carrying value	$ 1,579	$ 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%

Equity method investments - narrative (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Aug. 18, 2022	May 11, 2022	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment			$ 559	$ 321	$ 0
Equity earnings (loss)			468	(498)	382
Impairment of equity method investments and investments in debt and equity securities			233	0	0
Share of AOCI of equity method investments
Schedule of Equity Method Investments [Line Items]
Other comprehensive (loss) income before reclassification adjustments			$ (326)	$ (24)	(16)
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Percentage of outstanding common shares owned			25.40%	28.50%
Number of shares sold (in shares)		6,000,000
Share price of stock sold (in dollars per share)		$ 150
Proceeds from sale of equity method investments		$ 900
Outstanding shares owned (in shares)			52,854,867	58,854,867
Gain on sale of equity method investment		417
Time period of reporting lag			2 months
Equity earnings (loss)			$ 418	$ (1,100)	341
Equity investment, exceeded its proportionate share of net assets			3,900
AmerisourceBergen \| Share of AOCI of equity method investments
Schedule of Equity Method Investments [Line Items]
Other comprehensive (loss) income before reclassification adjustments		$ 32
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 value of assets			7,700	7,200
Others
Schedule of Equity Method Investments [Line Items]
Equity earnings (loss)			$ 50	$ 627	$ 31
Option Care Health
Schedule of Equity Method Investments [Line Items]
Percentage of outstanding common shares owned			14.40%	20.50%
Number of shares sold (in shares)	11,000,000
Proceeds from sale of equity method investments	$ 363
Gain on sale of equity method investment	$ 145			$ 290
Equity earnings (loss)				576
Option Care Health \| HC Group Holdings I, LLC
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment				$ 1,200
VillageMD
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment			$ 2,200
Shields Health Solutions
Schedule of Equity Method Investments [Line Items]
Gain on sale of equity method investment			402
China
Schedule of Equity Method Investments [Line Items]
Impairment of equity method investments and investments in debt and equity securities			$ 124

Equity method investments - summarized financial information of equity method investees (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Aug. 31, 2022	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	Aug. 31, 2021	May 31, 2021	Feb. 28, 2021	Nov. 30, 2020	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Statement of Financial Position [Abstract]
Current assets	$ 16,902				$ 15,814				$ 16,902	$ 15,814
Non-current assets	73,222				65,471				73,222	65,471
Current liabilities	22,583				22,054				22,583	22,054
Non-current liabilities	37,134				35,091				37,134	35,091
Shareholders' equity	29,366				23,822				29,366	23,822	$ 21,136	$ 24,152
Non-controlling interests	4,091				402				4,091	402
Income Statement [Abstract]
Sales	32,449	$ 32,597	$ 33,756	$ 33,901	34,262	$ 34,030	$ 32,779	$ 31,438	132,703	132,509	121,982
Gross profit	6,410	$ 6,572	$ 7,708	$ 7,574	7,503	$ 7,153	$ 6,781	$ 6,630	28,265	28,067	26,078
Net earnings (loss)									4,065	2,512	424
Share of earnings (loss) from equity method investments									468	(512)	372
Equity Method Investment
Statement of Financial Position [Abstract]
Current assets	50,985				49,538				50,985	49,538
Non-current assets	26,497				27,442				26,497	27,442
Current liabilities	52,083				48,766				52,083	48,766
Non-current liabilities	19,712				22,046				19,712	22,046
Shareholders' equity	5,687				6,168				5,687	6,168
Non-controlling interests	$ 564				$ 646				564	646
Income Statement [Abstract]
Sales									268,189	232,719	208,625
Gross profit									13,248	10,889	8,707
Net earnings (loss)									$ 1,988	$ (3,475)	$ 1,624

Goodwill and other intangible assets - narrative (Details) $ in Millions	12 Months Ended
	Aug. 31, 2022 USD ($)	Aug. 31, 2021 USD ($)	Aug. 31, 2020 USD ($) reportingUnit	Jun. 01, 2022	Jun. 01, 2021
Goodwill [Line Items]
Goodwill	$ 22,280	$ 12,421	$ 12,013
Indefinite lived intangible assets	5,528	7,342
Number of reporting segments included in impairment analysis \| reportingUnit			2
Impairment of definite-lived intangible assets	0	0	$ 47
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]			Selling, general and administrative expenses
Amortization expense for intangible assets	639	523	$ 384
Minimum
Goodwill [Line Items]
Percentage of reporting unit fair value in excess of carrying amount				7.00%	7.00%
Maximum
Goodwill [Line Items]
Percentage of reporting unit fair value in excess of carrying amount				198.00%	18.00%
Pharmacy licenses
Goodwill [Line Items]
Indefinite lived intangible assets	1,209	2,066
Boots Reporting Unit
Goodwill [Line Items]
Goodwill	906
Impairment of intangible assets	783	49	294
Indefinite lived intangible assets	$ 5,500	$ 7,300
Goodwill impairment loss			$ 1,700

Goodwill and other intangible assets - schedule of goodwill (Details) - USD ($) $ in Millions		12 Months Ended
	Nov. 24, 2021	Aug. 31, 2022	Aug. 31, 2021
Goodwill [Roll Forward]
Beginning balance		$ 12,421	$ 12,013
Acquisitions		10,040	414
Currency translation adjustments		(181)	(7)
Ending balance		22,280	12,421
Innovation Associates, Inc.
Goodwill [Roll Forward]
Acquisitions		394
Joint Venture With McKesson
Goodwill [Roll Forward]
Acquisitions			21
VillageMD
Goodwill [Roll Forward]
Acquisitions	$ 8,041
Shields Health Solutions
Goodwill [Roll Forward]
Acquisitions		1,500
CareCentrix, Inc.
Goodwill [Roll Forward]
Acquisitions		454
Ending balance		454
Reportable Segments \| U.S. Retail Pharmacy
Goodwill [Roll Forward]
Beginning balance		10,947	10,553
Acquisitions		0	394
Currency translation adjustments		0	0
Ending balance		10,947	10,947
Reportable Segments \| International
Goodwill [Roll Forward]
Beginning balance		1,474	1,460
Acquisitions		0	21
Currency translation adjustments		(181)	(7)
Ending balance		1,293	1,474
Reportable Segments \| Walgreens health
Goodwill [Roll Forward]
Beginning balance		0	0
Acquisitions		10,040	0
Currency translation adjustments		0	0
Ending balance		$ 10,040	$ 0

Goodwill and other intangible assets - schedule of finite-lived intangible assets by major class (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	$ 7,155	$ 4,421
Total accumulated amortization	1,953	1,826
Total amortizable intangible assets, net	5,202	2,595
Total indefinite-lived intangible assets	5,528	7,342
Total intangible assets, net	10,730	9,936
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	4,319	5,276
Pharmacy licenses
Finite-Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	1,209	2,066
Customer relationships and loyalty card holders
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	4,619	3,522
Total accumulated amortization	1,548	1,335
Primary Care Provider Network
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	1,247	0
Total accumulated amortization	64	0
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	760	361
Total accumulated amortization	246	226
Developed Technology Rights
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	436	156
Total accumulated amortization	56	8
Purchasing and payor contracts
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	15	317
Total accumulated amortization	4	227
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Total gross amortizable intangible assets	78	65
Total accumulated amortization	$ 35	$ 29

Goodwill and other intangible assets - schedule of finite-lived intangible assets, future amortization expense (Details) $ in Millions	Aug. 31, 2022 USD ($)
Estimated annual amortization expense
2023	$ 610
2024	591
2025	558
2026	540
2027	$ 478

Debt - short and long-term debt (Details)		12 Months Ended
Debt - short and long-term debt (Details)	Apr. 26, 2021 USD ($)	Aug. 31, 2022 USD ($)	Aug. 31, 2021 USD ($)	Aug. 31, 2020 USD ($)	Aug. 31, 2022 GBP (£)	Aug. 31, 2022 EUR (€)	Jul. 05, 2022 USD ($)	Jun. 03, 2022	Nov. 17, 2021 USD ($)	Nov. 15, 2021 USD ($)	Sep. 18, 2021 USD ($)
Debt Instrument [Line Items]
Total short-term debt		$ 1,059,000,000	$ 1,305,000,000
Other		26,000,000	29,000,000
Total long-term debt, less current portion		10,615,000,000	7,675,000,000
Long-term debt purchased and retired		8,360,000,000	15,257,000,000	$ 21,414,000,000
Loss on early extinguishment of debt		6,000,000	414,000,000	$ 0
3.300% unsecured notes due 2021
Debt Instrument [Line Items]
Face amount		$ 8,000,000,000
Stated interest rate (as a percent)		3.30%			3.30%	3.30%					3.30%
Total short-term debt		$ 0	1,250,000,000
Debt redeemed											$ 1,250,000,000
Other
Debt Instrument [Line Items]
Total short-term debt		59,000,000	56,000,000
Unsecured notes
Debt Instrument [Line Items]
Long-term debt purchased and retired	$ 3,300,000,000
Weighted average interest rate of long-term debt purchased and retired	4.02%
Loss on early extinguishment of debt	$ 414,000,000	6,000,000	387,000,000
Redemption premiums paid in cash	$ 386,000,000
Unsecured notes \| Unsecured credit facility due 2023
Debt Instrument [Line Items]
Long-term debt		1,998,000,000	0
Unsecured notes \| Unsecured credit facility due 2024
Debt Instrument [Line Items]
Long-term debt		999,000,000	0
Unsecured notes \| 0.9500% notes payable, due 2023
Debt Instrument [Line Items]
Face amount		$ 850,000,000							$ 850,000,000
Stated interest rate (as a percent)		0.95%			0.95%	0.95%			95.00%
Long-term debt		$ 848,000,000	0
Unsecured notes \| $1.5 billion debt issuance
Debt Instrument [Line Items]
Face amount		$ 1,500,000,000
Unsecured notes \| 3.200% unsecured notes due 2030
Debt Instrument [Line Items]
Stated interest rate (as a percent)		3.20%			3.20%	3.20%
Long-term debt		$ 498,000,000	497,000,000
Unsecured notes \| 4.100% unsecured notes due 2050
Debt Instrument [Line Items]
Stated interest rate (as a percent)		4.10%			4.10%	4.10%
Long-term debt		$ 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 (as a percent)		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 (as a percent)		4.65%			4.65%	4.65%
Long-term debt		$ 318,000,000	318,000,000
Unsecured notes \| Total $8 billion note issuance
Debt Instrument [Line Items]
Face amount		$ 8,000,000,000
Unsecured notes \| 3.800% unsecured notes due 2024
Debt Instrument [Line Items]
Stated interest rate (as a percent)		3.80%			3.80%	3.80%
Long-term debt		$ 1,155,000,000	1,154,000,000
Unsecured notes \| 4.500% unsecured notes due 2034
Debt Instrument [Line Items]
Stated interest rate (as a percent)		4.50%			4.50%	4.50%
Long-term debt		$ 301,000,000	301,000,000
Unsecured notes \| 4.800% unsecured notes due 2044
Debt Instrument [Line Items]
Stated interest rate (as a percent)		4.80%			4.80%	4.80%
Long-term debt		$ 869,000,000	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 (as a percent)		3.60%			3.60%	3.60%
Long-term debt		$ 354,000,000	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 (as a percent)		2.125%			2.125%	2.125%
Long-term debt		$ 752,000,000	873,000,000
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 (as a percent)		3.10%			3.10%	3.10%		3.10%
Long-term debt		$ 0	731,000,000
Debt redeemed							$ 731,000,000
Unsecured notes \| 4.400% unsecured notes due 2042
Debt Instrument [Line Items]
Stated interest rate (as a percent)		4.40%			4.40%	4.40%
Long-term debt		$ 263,000,000	263,000,000
Term loan \| Credit facilities
Debt Instrument [Line Items]
Face amount										$ 3,000,000,000
Credit facilities
Debt Instrument [Line Items]
Total short-term debt		$ 1,000,000,000	$ 0

Debt - long-term debt by future maturity (Details) $ in Millions	Aug. 31, 2022 USD ($)
Long Term Debt by Future Maturity [Abstract]
2023	$ 1,059
2024	2,850
2025	2,161
2026	1,803
2027	754
Later	3,081
Total estimated future maturities	$ 11,708

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - narrative (Details) £ in Millions						12 Months Ended
Debt - narrative (Details) £ in Millions	Jun. 17, 2022 USD ($)	Nov. 17, 2021 USD ($)	Nov. 15, 2021 USD ($)	Apr. 26, 2021 USD ($)	Dec. 23, 2020 USD ($)	Aug. 31, 2022 USD ($)	Aug. 31, 2021 USD ($)	Aug. 31, 2021 GBP (£)	Aug. 31, 2020 USD ($)	Aug. 29, 2018 USD ($)
Line of Credit Facility [Line Items]
Interest paid, net of capitalized interest						$ 420,000,000	$ 916,000,000		$ 584,000,000
Loss on early extinguishment of debt						6,000,000	414,000,000		0
Commercial paper
Line of Credit Facility [Line Items]
Average daily short-term borrowings						$ 910,000,000	$ 1,900,000,000		$ 2,500,000,000
Weighted-average interest rate						0.55%	0.45%		2.15%
Commercial paper, amount outstanding						$ 0	$ 0
Commercial paper \| Guarantor Subsidiaries \| Reportable Legal Entities
Line of Credit Facility [Line Items]
Average daily short-term borrowings							$ 424,000,000	£ 300
Weighted-average interest rate for subsidiaries borrowings							0.43%	0.43%
Maximum
Line of Credit Facility [Line Items]
Debt to total capitalization ratio						0.60
Unsecured notes
Line of Credit Facility [Line Items]
Loss on early extinguishment of debt				$ 414,000,000		$ 6,000,000	$ 387,000,000
Unsecured notes \| 0.9500% notes payable, due 2023
Line of Credit Facility [Line Items]
Face amount		$ 850,000,000				$ 850,000,000
Stated interest rate (as a percent)		95.00%				0.95%
Debt instrument, redemption price, percentage		100.00%
Long term debt						$ 848,000,000	$ 0
Credit facilities \| Term loan \| Eurodollar
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.70%
Credit facilities \| June 17, 2022 revolving credit facility, five-year facility
Line of Credit Facility [Line Items]
Face amount	$ 3,500,000,000
Debt term	5 years
Credit facilities \| June 17, 2022 revolving credit facility, 18-month facility
Line of Credit Facility [Line Items]
Face amount	$ 1,500,000,000
Debt term	18 months
Borrowings outstanding						0
Credit facilities \| June 17, 2022 revolving credit facility, 18-month facility \| Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Credit facilities \| June 17, 2022 revolving credit facility, 18-month facility \| Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.80%
Credit facilities \| Delayed draw term loan credit facility
Line of Credit Facility [Line Items]
Face amount			$ 5,000,000,000
Credit facilities \| Delayed draw term loan credit facility \| Term loan
Line of Credit Facility [Line Items]
Long term debt						$ 4,000,000,000
Credit facilities \| Delayed draw term loan credit facility, 364-day facility \| Term loan
Line of Credit Facility [Line Items]
Face amount			$ 2,000,000,000
Debt term			364 days
Credit facilities \| Delayed draw term loan credit facility, 364-day facility \| Term loan \| Eurodollar
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.75%
Credit facilities \| Delayed draw term loan credit facility, 364-day facility \| Term loan \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.00%
Credit facilities \| Delayed draw term loan credit facility, two-year facility \| Term loan
Line of Credit Facility [Line Items]
Debt term			2 years
Credit facilities \| Delayed draw term loan credit facility, 364-day facility, tranche two \| Term loan \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.00%
Credit facilities \| December 23, 2020 revolving credit agreement, 364-day facility
Line of Credit Facility [Line Items]
Debt term					364 days
Maximum borrowing capacity					$ 1,250,000,000
Credit facilities \| December 23, 2020 revolving credit agreement, 18-month revolving credit facility
Line of Credit Facility [Line Items]
Debt term					18 months
Maximum borrowing capacity					$ 2,250,000,000
Credit facilities \| August 2018 Revolving Credit Agreement
Line of Credit Facility [Line Items]
Face amount										$ 3,500,000,000
Credit facilities \| Term loan
Line of Credit Facility [Line Items]
Face amount			$ 3,000,000,000
Credit facilities \| Term loan \| June 17, 2022 revolving credit facility, five-year facility
Line of Credit Facility [Line Items]
Debt term	5 years
Credit facilities \| Term loan \| June 17, 2022 revolving credit facility, 18-month facility
Line of Credit Facility [Line Items]
Debt term	18 months
Credit facilities \| Term loan \| Delayed draw term loan credit facility, two-year facility
Line of Credit Facility [Line Items]
Face amount			$ 2,000,000,000
Debt term			2 years
Credit facilities \| Term loan \| Delayed draw term loan credit facility, two-year facility \| Eurodollar
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.85%
Credit facilities \| Term loan \| Delayed draw term loan credit facility, two-year facility \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			0.00%
Credit facilities \| Term loan \| Delayed draw term loan credit facility, three-year facility
Line of Credit Facility [Line Items]
Face amount			$ 1,000,000,000
Debt term			3 years
Credit facilities \| Term loan \| Delayed draw term loan credit facility, three-year facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate			1.00%
Letter of Credit \| August 2018 Revolving Credit Agreement
Line of Credit Facility [Line Items]
Face amount										$ 500,000,000
Bridge Loan \| December 23, 2020 revolving credit agreement, 18-month revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 350,000,000

Financial instruments - derivative instruments (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Foreign currency forwards \| Derivatives designated as hedges: \| Other current assets
Derivatives, Fair Value [Line Items]
Notional amount, assets	$ 448	$ 575
Fair value, assets	$ 19	$ 7
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Foreign currency forwards \| Derivatives designated as hedges: \| Other non-current assets
Derivatives, Fair Value [Line Items]
Notional amount, assets	$ 3	$ 6
Fair value, assets	$ 0	$ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other non-current assets	Other non-current assets
Foreign currency forwards \| Derivatives designated as hedges: \| Other non-current liabilities
Derivatives, Fair Value [Line Items]
Notional amount, liabilities		$ 23
Fair value, liabilities		$ 1
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Other non-current liabilities
Foreign currency forwards \| Derivatives designated as hedges: \| Other current liabilities
Derivatives, Fair Value [Line Items]
Notional amount, liabilities	$ 221	$ 31
Fair value, liabilities	$ 1	$ 1
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Foreign currency forwards \| Derivatives not designated as hedges: \| Other current assets
Derivatives, Fair Value [Line Items]
Notional amount, assets	$ 2,874	$ 3,636
Fair value, assets	$ 49	$ 38
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Foreign currency forwards \| Derivatives not designated as hedges: \| Other current liabilities
Derivatives, Fair Value [Line Items]
Notional amount, liabilities	$ 1,098	$ 808
Fair value, liabilities	$ 6	$ 3
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Cross currency interest rate swaps \| Derivatives designated as hedges: \| Other current assets
Derivatives, Fair Value [Line Items]
Notional amount, assets	$ 150
Fair value, assets	$ 12
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets
Cross currency interest rate swaps \| Derivatives designated as hedges: \| Other non-current assets
Derivatives, Fair Value [Line Items]
Notional amount, assets	$ 750	$ 155
Fair value, assets	$ 83	$ 1
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other non-current assets	Other non-current assets
Cross currency interest rate swaps \| Derivatives designated as hedges: \| Other non-current liabilities
Derivatives, Fair Value [Line Items]
Notional amount, liabilities		$ 801
Fair value, liabilities		$ 23
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Other non-current liabilities
Cross currency interest rate swaps \| Derivatives designated as hedges: \| Other current liabilities
Derivatives, Fair Value [Line Items]
Notional amount, liabilities		$ 109
Fair value, liabilities		$ 9
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Accrued expenses and other liabilities
Total return swap \| Derivatives not designated as hedges: \| Other current assets
Derivatives, Fair Value [Line Items]
Notional amount, liabilities		$ 224
Fair value, liabilities		$ 2
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other current assets
Total return swap \| Derivatives not designated as hedges: \| Other current liabilities
Derivatives, Fair Value [Line Items]
Notional amount, liabilities	$ 183	$ 37
Fair value, liabilities	$ 6	$ 0
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities

Financial instruments - warrants (Details) - Derivatives not designated as hedges: - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Foreign currency forwards \| Selling, general and administrative expense
Warrants [Abstract]
Gains (losses) due to changes in fair value of derivative instruments	$ 0	$ (75)	$ (63)
Foreign currency forwards \| Other income (expense)
Warrants [Abstract]
Gains (losses) due to changes in fair value of derivative instruments	523	(8)	11
Total return swap \| Selling, general and administrative expense
Warrants [Abstract]
Gains (losses) due to changes in fair value of derivative instruments	$ (33)	$ 58	$ 24

Fair value measurements (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Liabilities [Abstract]
Carrying value of long-term notes outstanding	$ 11,708
Carrying Value
Liabilities [Abstract]
Carrying value of long-term notes outstanding	7,600
Estimate of Fair Value Measurement
Liabilities [Abstract]
Fair value of long-term notes outstanding	7,100
Recurring
Assets [Abstract]
Money market funds	1,114	$ 634
Investment in equity securities	1	2
Investments in debt securities	130	663
Recurring \| Level 1
Assets [Abstract]
Money market funds	1,114	634
Investment in equity securities	1	2
Investments in debt securities	0	0
Recurring \| Level 2
Assets [Abstract]
Money market funds	0	0
Investment in equity securities	0	0
Investments in debt securities	130	0
Recurring \| Level 3
Assets [Abstract]
Money market funds	0	0
Investment in equity securities	0	0
Investments in debt securities	0	663
Recurring \| Foreign currency forwards
Assets [Abstract]
Derivative asset	69	46
Liabilities [Abstract]
Derivative liability	7	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	69	46
Liabilities [Abstract]
Derivative liability	7	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	96	1
Liabilities [Abstract]
Derivative liability	6	32
Recurring \| Cross currency interest rate swaps \| Level 1
Assets [Abstract]
Derivative asset	0	0
Liabilities [Abstract]
Derivative liability	0	0
Recurring \| Cross currency interest rate swaps \| Level 2
Assets [Abstract]
Derivative asset	96	1
Liabilities [Abstract]
Derivative liability	6	32
Recurring \| Cross currency interest rate swaps \| Level 3
Assets [Abstract]
Derivative asset	0	0
Liabilities [Abstract]
Derivative liability	$ 0	0
Recurring \| Total return swap
Assets [Abstract]
Derivative asset		2
Recurring \| Total return swap \| Level 1
Assets [Abstract]
Derivative asset		0
Recurring \| Total return swap \| Level 2
Assets [Abstract]
Derivative asset		2
Recurring \| Total return swap \| Level 3
Assets [Abstract]
Derivative asset		$ 0

Commitments and contingencies (Details) - Pending Litigation - USD ($) $ in Millions	Jun. 29, 2022	Jun. 17, 2022	May 05, 2022
Consolidated Cases in State of Florida
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party			$ 683.0
Estimated litigation liability, noncurrent			$ 620.0
Litigation settlement, period			18 years
Estimated litigation liability, current			$ 63.0
Payments for legal settlements		$ 97.4
Estimated litigation liability			$ 683.0
Washtenaw County Employees Retirement Systemn
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party	$ 105.0

Income taxes - narrative (Details) - USD ($) $ in Millions	12 Months Ended
Income taxes - narrative (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Operating Loss Carryforwards [Line Items]
Tax cuts and jobs act, measurement period adjustment, income tax expense (benefit)			$ (247)
Effective income tax rate	(0.80%)	33.40%	76.00%
Deferred tax assets, tax attributes	$ 7,825	$ 7,467
Income tax credits	91
Deferred tax assets operating loss carryforwards subject to expiration	7,300
Deferred tax assets operating loss carryforwards not subject to expiration	483
Valuation allowance	7,521	7,239
Income taxes paid	387	336	$ 626
Unrecognized tax benefits	1,110	1,098	494	$ 455
Unrecognized tax benefits reported against deferred taxes	473	475
Unrecognized tax benefits reported against tax receivables	116	114
Unrecognized tax benefits would favorably impact the effective tax rate if recognized	529	524	353
Decrease in unrecognized tax benefits is reasonably possible	136
Accrued interest and penalties in income tax provision	97	84
Interest and penalties included in income tax expense	13	26	11
Unrecorded deferred tax liability for temporary differences related to foreign subsidiaries	104	118	$ 124
Long-term liabilities
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	618	594
U.S. Federal
Operating Loss Carryforwards [Line Items]
Deferred tax assets, operating loss carryforwards	1,600
State
Operating Loss Carryforwards [Line Items]
Deferred tax assets, operating loss carryforwards	153
Non-U.S.
Operating Loss Carryforwards [Line Items]
Deferred tax assets, operating loss carryforwards	28,800
United Kingdom
Operating Loss Carryforwards [Line Items]
Tax expense recorded from re-measurement of foreign deferred tax liabilities from changes in tax laws	$ 344	$ 139

Income taxes - components of earnings before income tax provision (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Tax Disclosure [Abstract]
U.S.	$ 2,998	$ 61	$ 759
Non–U.S.	987	1,934	(313)
Earnings before income tax provision	$ 3,985	$ 1,995	$ 446

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-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 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income taxes - provision for income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Current provision
Federal	$ 39	$ 79	$ 184
State	37	115	49
Non–U.S.	260	234	135
Total current provisions for income taxes	336	428	368
Deferred provision
Federal	(78)	(10)	(83)
State	(20)	(46)	2
Non–U.S. – tax law change	0	344	139
Non–U.S. – excluding tax law change	(268)	(49)	(87)
Total non-current provisions for income taxes	(366)	239	(29)
Income tax (benefit) provision	$ (30)	$ 667	$ 339

Income taxes - reconciliation to effective tax rate (Details)	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%
State income taxes, net of federal benefit	0.40%	3.50%	8.80%
Foreign income taxed at non-U.S. rates	(3.00%)	(4.40%)	(17.00%)
Non-taxable income	(2.70%)	(5.00%)	(47.50%)
Non-deductible expenses	3.00%	0.30%	9.00%
Tax law changes	0.00%	17.30%	31.30%
Change in valuation allowance	(9.00%)	(4.70%)	4.10%
Tax benefits from restructuring	0.00%	(4.20%)	0.00%
Tax expense on non-operating equity earnings	0.00%	6.10%	0.00%
Uncertain tax positions	1.30%	6.20%	7.50%
Non-controlling interest	1.20%	0.00%	0.00%
Goodwill impairment	0.00%	0.00%	72.50%
Tax credits	(1.00%)	(1.80%)	(10.30%)
Conversion of equity investment	(11.80%)	0.00%	0.00%
Other	(0.20%)	(0.90%)	(3.40%)
Effective income tax rate	(0.80%)	33.40%	76.00%

Income taxes - deferred tax assets and liabilities (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Deferred tax assets:
Compensation and benefits	$ 171	$ 175
Insurance	108	103
Accrued rent & lease obligations	5,296	5,372
Allowance for doubtful accounts	53	34
Tax attributes	7,825	7,467
Stock compensation	56	88
Deferred income	120	34
Other	230	189
Subtotal deferred tax assets	13,859	13,462
Less: valuation allowance	7,521	7,239
Total deferred tax assets	6,338	6,223
Deferred tax liabilities:
Accelerated depreciation	634	896
Inventory	441	377
Intangible assets	1,134	1,465
Equity method investment	314	236
Lease right-of-use asset	4,763	4,792
Other	355	219
Total deferred tax liabilities	7,641	7,985
Net deferred tax liabilities	$ 1,303	$ 1,762

Income taxes - unrecognized tax benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Reconciliation of Unrecognized Tax Benefits
Balance at beginning of year	$ 1,098	$ 494	$ 455
Gross increases related to tax positions in a prior period	63	229	60
Gross decreases related to tax positions in a prior period	(51)	(52)	(23)
Gross increases related to tax positions in the current period	21	446	9
Settlements with taxing authorities	(19)	(13)	(4)
Lapse of statute of limitations	(2)	(6)	(3)
Balance at end of year	$ 1,110	$ 1,098	$ 494

Stock compensation plans (Details) - USD ($) $ in Millions	12 Months Ended
Stock compensation plans (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 391	$ 155	$ 137
Unrecognized compensation cost related to non-vested awards	$ 399
Compensation cost not yet recognized period for recognition	3 years
2021 Omnibus Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 133	$ 155	$ 137
Walgreens health
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 269

Retirement benefits - fair value hierarchy (Details) - Pension Plan - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	$ 6,603	$ 10,475	$ 9,614
Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	2,197	3,696
Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	3,145	5,637
Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	1,261	1,142
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	967	1,316
Equity securities \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Equity securities \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	967	1,316
Equity securities \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Fixed interest government bonds
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	688	514
Fixed interest government bonds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	402	101
Fixed interest government bonds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	285	412
Fixed interest government bonds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Index linked government bonds
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	1,785	3,521
Index linked government bonds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	1,785	3,486
Index linked government bonds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	35
Index linked government bonds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Corporate bonds
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	1,980	2,851
Corporate bonds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	1
Corporate bonds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	1,980	2,850
Corporate bonds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Real estate
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	548	513
Real estate \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Real estate \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	0	0
Real estate \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	548	513
Other investments, net
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	636	1,761
Other investments, net \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	10	107
Other investments, net \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	(87)	1,024
Other investments, net \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Amount of defined benefit pension plan assets investment of fair market value	$ 713	$ 629

Retirement benefits - components of net periodic pension costs (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other income, net	Other income, net	Other income, net
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other income, net	Other income, net	Other income, net
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service costs (Selling, general and administrative expenses)	$ 5	$ 6	$ 2
Interest costs (Other income, net)	149	139	141
Expected returns on plan assets/other (Other income, net)	(280)	(332)	(285)
Total net periodic pension (income) cost	$ (126)	$ (188)	$ (142)

Retirement benefits - accumulated other comprehensive income (Details) - Pension Plan - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	$ (251)	$ (506)	$ 856
Prior service cost	(1)	(1)	(1)
Total pre-tax comprehensive (income) loss	$ (252)	$ (507)	$ 855

Retirement benefits - changes in benefit obligations (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Change in benefit obligation [Roll Forward]
Benefit obligation at beginning of year	$ 10,206	$ 9,905
Service costs	5	6	$ 2
Interest costs	149	139	141
Settlements	0	(2)
Net actuarial (gain) loss	(3,042)	75
Benefits paid	(304)	(320)
Acquisitions	0	182
Currency translation adjustments	(1,047)	223
Benefit obligation at end of year	$ 5,967	$ 10,206	$ 9,905

Retirement benefits - change in plan assets (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets at fair value at beginning of year	$ 10,475	$ 9,614
Employer contributions	45	53
Benefits paid	(304)	(320)
Return on assets/other	(2,477)	906
Settlements	0	(2)
Currency translation adjustments	(1,136)	223
Plan assets at fair value at end of year	$ 6,603	$ 10,475

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Retirement benefits - balance sheet (Details) - Pension Plan - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Other non-current assets	$ 863	$ 602
Accrued expenses and other liabilities	(9)	(9)
Other non-current liabilities	(217)	(324)
Net asset recognized at end of year	$ 637	$ 269

Retirement benefits - accumulated benefit obligations in excess of plan assets (Details) - Pension Plan - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 5,967	$ 10,206
Accumulated benefit obligation	5,961	10,200
Fair value of plan assets	$ 6,603	$ 10,475

Retirement benefits - expected future benefit payments (Details) - Pension Plan $ in Millions	Aug. 31, 2022 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2023	$ 285
2024	269
2025	279
2026	291
2027	302
2028-2032	$ 1,645

Retirement benefits - assumptions (Details) - Pension Plan	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.20%	1.71%
Rate of compensation increase	3.04%	2.80%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	1.57%	1.39%
Expected long-term return on plan assets	2.90%	3.50%
Rate of compensation increase	2.80%	2.77%

Retirement benefits - narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Cash contributions to defined benefit pension plans	$ 36.0
Postretirement Health Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan obligation	122.0	$ 154.0
Expected benefit to be paid net of estimated federal subsidy during fiscal year 2021	9.0
United States
Defined Benefit Plan Disclosure [Line Items]
Profit sharing provision expense	234.0	221.0	$ 227.0
Contributions to profit sharing	236.0	222.0	226.0
Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Cost recognized in the consolidated condensed statements of earnings	$ 90.0	$ 101.0	$ 91.0

Capital stock (Details) - USD ($) shares in Thousands	12 Months Ended
Capital stock (Details) - USD ($) shares in Thousands	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Apr. 30, 2017
Equity, Class of Treasury Stock [Line Items]
Shares repurchased during period (in shares)	0	0
Stock repurchased during current fiscal year, value	$ 187,000,000	$ 110,000,000	$ 103,000,000
Shares of common stock reserved for future issuances (in shares)	69,000
June 2018 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase program, authorized maximum amount				$ 10,000,000,000
Stock repurchase program, remaining authorized amount to be purchased	$ 2,000,000,000

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 23,822	$ 21,136	$ 24,152
Total other comprehensive (loss) income	(728)	1,669	148
Ending balance	29,366	23,822	21,136
Accumulated other comprehensive income (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(2,109)	(3,771)	(3,897)
Other comprehensive (loss) income before reclassification adjustments	(97)	1,022	(69)
Amounts reclassified from AOCI	(565)	6	0
Business disposal	(6)	792
Tax benefit (provision)	(27)	(157)	195
Total other comprehensive (loss) income	(696)	1,663	126
Ending balance	(2,805)	(2,109)	(3,771)
Pension/post-retirement obligations
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(359)	(748)	(48)
Other comprehensive (loss) income before reclassification adjustments	278	532	(861)
Amounts reclassified from AOCI	(22)	(8)	(8)
Business disposal	(6)	(4)
Tax benefit (provision)	(48)	(132)	169
Total other comprehensive (loss) income	203	389	(700)
Ending balance	(157)	(359)	(748)
Unrealized gain (loss) on cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(10)	(31)	(24)
Other comprehensive (loss) income before reclassification adjustments	6	10	(12)
Amounts reclassified from AOCI	3	17	5
Business disposal	0	0
Tax benefit (provision)	(2)	(6)	1
Total other comprehensive (loss) income	7	21	(6)
Ending balance	(3)	(10)	(31)
Net investment hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(35)	(34)	55
Other comprehensive (loss) income before reclassification adjustments	327	(6)	(113)
Amounts reclassified from AOCI	0	0	0
Business disposal	0	0
Tax benefit (provision)	(79)	6	23
Total other comprehensive (loss) income	248	(1)	(90)
Ending balance	213	(35)	(34)
Unrealized gain (loss) on available for sale debt securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	96	0	0
Other comprehensive (loss) income before reclassification adjustments	451	127	0
Amounts reclassified from AOCI	(577)	0	0
Business disposal	0	0
Tax benefit (provision)	32	(31)	0
Total other comprehensive (loss) income	(95)	96	0
Ending balance	1	96	0
Share of AOCI of equity method investments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(29)	(10)	3
Other comprehensive (loss) income before reclassification adjustments	(326)	(24)	(16)
Amounts reclassified from AOCI	31	0	0
Business disposal	0	0
Tax benefit (provision)	70	6	3
Total other comprehensive (loss) income	(226)	(18)	(13)
Ending balance	(254)	(29)	(10)
Cumulative translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1,772)	(2,948)	(3,884)
Other comprehensive (loss) income before reclassification adjustments	(833)	384	934
Amounts reclassified from AOCI	0	(3)	3
Business disposal	0	795
Tax benefit (provision)	0	0	(1)
Total other comprehensive (loss) income	(833)	1,176	936
Ending balance	$ (2,605)	$ (1,772)	$ (2,948)

Segment reporting - narrative (Details) - segment	6 Months Ended	12 Months Ended
Segment reporting - narrative (Details) - segment	Aug. 31, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Segment Reporting [Abstract]
Number of reportable segments	3	3
Three Third-Party Payers \| Revenues \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk (as a percent)		31.00%	33.00%	35.00%

Segment reporting - results of operations of reportable segments (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Aug. 31, 2022	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	Aug. 31, 2021	May 31, 2021	Feb. 28, 2021	Nov. 30, 2020	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	$ 32,449	$ 32,597	$ 33,756	$ 33,901	$ 34,262	$ 34,030	$ 32,779	$ 31,438	$ 132,703	$ 132,509	$ 121,982
Adjusted operating income									5,133	5,117	4,730
Depreciation and amortization									1,990	1,923	1,786
Capital expenditures									1,734	1,312	1,287
Acquisition-related amortization									(855)	(523)	(384)
Impairment of goodwill and intangible assets									(783)	(49)	(2,016)
Certain legal and regulatory accruals and settlements									(768)	(75)	0
Transformational cost management									(763)	(417)	(719)
Acquisition-related costs									(223)	(54)	(315)
Adjustments to equity earnings (loss) in AmerisourceBergen									(218)	(1,645)	(97)
LIFO provision									(135)	(13)	(95)
Store optimization									0	0	(53)
Store damage and inventory losses									0	0	(68)
Operating income									1,387	2,342	982
Reportable Segments \| U.S. Retail Pharmacy
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales									109,078	112,005	107,701
Adjusted operating income									5,029	5,019	4,761
Depreciation and amortization									1,415	1,513	1,376
Capital expenditures									1,207	1,030	1,040
Reportable Segments \| International
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales									21,830	20,505	14,281
Adjusted operating income									726	466	157
Depreciation and amortization									355	399	400
Capital expenditures									295	243	235
Reportable Segments \| Walgreens health
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales									1,795	0	0
Adjusted operating income									(370)	(57)	0
Depreciation and amortization									211	1	0
Capital expenditures									218	34	0
Corporate and Other
Segment Reporting Information, Operating Income (Loss) [Abstract]
Adjusted operating income									(251)	(311)	(187)
Depreciation and amortization									9	10	10
Capital expenditures									$ 15	$ 5	$ 12

Segment reporting - geographic data (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Aug. 31, 2022	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	Aug. 31, 2021	May 31, 2021	Feb. 28, 2021	Nov. 30, 2020	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	$ 32,449	$ 32,597	$ 33,756	$ 33,901	$ 34,262	$ 34,030	$ 32,779	$ 31,438	$ 132,703	$ 132,509	$ 121,982
Total long-lived assets	11,729				12,247				11,729	12,247
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									110,873	112,005	107,701
Total long-lived assets	9,577				9,665				9,577	9,665
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									8,894	8,298	7,830
Total long-lived assets	1,838				2,205				1,838	2,205
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									11,178	10,472	4,876
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales									1,757	1,734	$ 1,575
Total long-lived assets	$ 314				$ 377				$ 314	$ 377

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-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

Sales (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Sales (Details) - USD ($) $ in Millions	Aug. 31, 2022	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	Aug. 31, 2021	May 31, 2021	Feb. 28, 2021	Nov. 30, 2020	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Disaggregation of Revenue [Line Items]
Sales	$ 32,449	$ 32,597	$ 33,756	$ 33,901	$ 34,262	$ 34,030	$ 32,779	$ 31,438	$ 132,703	$ 132,509	$ 121,982
Reportable Segments \| U.S. Retail Pharmacy
Disaggregation of Revenue [Line Items]
Sales									109,078	112,005	107,701
Reportable Segments \| U.S. Retail Pharmacy \| Pharmacy
Disaggregation of Revenue [Line Items]
Sales									80,434	84,892	80,481
Reportable Segments \| U.S. Retail Pharmacy \| Retail
Disaggregation of Revenue [Line Items]
Sales									28,643	27,113	27,220
Reportable Segments \| International
Disaggregation of Revenue [Line Items]
Sales									21,830	20,505	14,281
Reportable Segments \| International \| Pharmacy
Disaggregation of Revenue [Line Items]
Sales									3,727	3,808	3,503
Reportable Segments \| International \| Retail
Disaggregation of Revenue [Line Items]
Sales									6,924	6,225	5,902
Reportable Segments \| International \| Wholesale
Disaggregation of Revenue [Line Items]
Sales									11,178	10,472	4,876
Reportable Segments \| Walgreens health
Disaggregation of Revenue [Line Items]
Sales									$ 1,795	$ 0	$ 0

- Definition

+ References

+ Details

Related parties (Details) - USD ($) $ in Millions				12 Months Ended
Related parties (Details) - USD ($) $ in Millions	Aug. 31, 2022	Dec. 28, 2021	Nov. 24, 2021	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Affiliated Entity \| UMass Memorial Medical Center And UMass Memorial Accountable Care Organization
Related Party Transaction [Line Items]
Revenue from related parties				$ 67.0
Affiliated Entity \| AmerisourceBergen
Related Party Transaction [Line Items]
Purchases, net				62,174.0	$ 62,513.0	$ 59,569.0
Trade accounts payable, net of Trade accounts receivable	$ 6,915.0			$ 6,915.0	$ 6,589.0	$ 6,390.0
VillageMD
Related Party Transaction [Line Items]
Business acquisition, value of common stock shares acquired			$ 1,900.0
VillageMD \| Affiliated Entity
Related Party Transaction [Line Items]
Business acquisition, value of common stock shares acquired		$ 1,900.0
Payments for stock consideration		$ 117.0
Number of shares tendered (in shares)		287,781,000,000
VillageMD \| Affiliated Entity \| Steve Shulman \| VillageMD
Related Party Transaction [Line Items]
Percentage of outstanding shares owned		1.20%
CareCentrix, Inc. \| Affiliated Entity
Related Party Transaction [Line Items]
Payments for stock consideration	$ 15.4
CareCentrix, Inc. \| Affiliated Entity \| Steve Shulman \| NDES Holdings
Related Party Transaction [Line Items]
Percentage of outstanding shares owned	5.30%			5.30%

Supplementary financial information - summary of quarterly results (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Aug. 31, 2022	May 31, 2022	Feb. 28, 2022	Nov. 30, 2021	Aug. 31, 2021	May 31, 2021	Feb. 28, 2021	Nov. 30, 2020	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Supplementary Financial Information [Abstract]
Sales	$ 32,449	$ 32,597	$ 33,756	$ 33,901	$ 34,262	$ 34,030	$ 32,779	$ 31,438	$ 132,703	$ 132,509	$ 121,982
Gross profit	6,410	6,572	7,708	7,574	7,503	7,153	6,781	6,630	28,265	28,067	26,078
Net earnings attributable to Walgreens Boots Alliance, Inc.:
Continuing operations	(415)	289	883	3,580	358	1,105	922	(391)	4,337	1,994	180
Discontinued operations	0	0	0	0	268	92	104	83	0	548	277
Net earnings attributable to Walgreens Boots Alliance, Inc.	$ (415)	$ 289	$ 883	$ 3,580	$ 627	$ 1,197	$ 1,026	$ (308)	$ 4,337	$ 2,542	$ 456
Basic earnings (loss) per common share:
Continuing operations (in dollars per share)	$ (0.48)	$ 0.33	$ 1.02	$ 4.13	$ 0.41	$ 1.28	$ 1.07	$ (0.45)	$ 5.02	$ 2.31	$ 0.20
Discontinued operations (in dollars per share)	0	0	0	0	0.31	0.11	0.12	0.10	0	0.63	0.31
Total (in dollars per share)	(0.48)	0.33	1.02	4.13	0.72	1.38	1.19	(0.36)	5.02	2.94	0.52
Diluted earnings (loss) per common share:
Continuing operations (in dollars per share)	(0.48)	0.33	1.02	4.13	0.41	1.27	1.06	(0.45)	5.01	2.30	0.20
Discontinued operations (in dollars per share)	0	0	0	0	0.31	0.11	0.12	0.10	0	0.63	0.31
Total (in dollars per share)	(0.48)	0.33	1.02	4.13	0.72	1.38	1.19	(0.36)	5.01	2.93	$ 0.52
Cash dividends declared per common share (in dollars per share)	$ 0.4800	$ 0.4775	$ 0.4775	$ 0.4775	$ 0.4775	$ 0.4675	$ 0.4675	$ 0.4675	$ 1.9125	$ 1.8800

Subsequent events (Details) - USD ($) $ in Millions	Oct. 11, 2022	Sep. 20, 2022	Aug. 31, 2022	Oct. 29, 2021	Oct. 28, 2021
Shields Health Solutions
Subsequent Event [Line Items]
Outstanding equity interest percentage				70.00%	25.00%
Shields Health Solutions \| Subsequent event
Subsequent Event [Line Items]
Outstanding equity interest percentage		30.00%
Total purchase price		$ 1,370
CareCentrix, Inc.
Subsequent Event [Line Items]
Outstanding equity interest percentage			55.00%
CareCentrix, Inc. \| Subsequent event
Subsequent Event [Line Items]
Outstanding equity interest percentage	45.00%
Total purchase price	$ 392