Leases and Store Closures (Tables)

6 Months Ended

Feb. 28, 2015

Leases and Store Closures [Abstract]

Schedule of Future Minimum Lease Payments for Capital Lease and Operating Lease

Annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below (in millions):

	Financing Obligation		Capital Lease		Operating Lease
2015	$	19	$	68	$	3,071
2016		18		66		3,006
2017		18		62		2,886
2018		18		59		2,814
2019		18		59		2,561
Later		1,153		901		23,102
Total Minimum Lease Payments	$	1,244	$	1,215	$	37,440

Reserve for Facility Closings and Related Lease Termination Charges

The changes in reserve for facility closings and related lease termination charges include the following (in millions):

	February 28, 2015			August 31, 2014
Balance – beginning of period	$	257		$	123
Provision for present value of non-cancellable lease payments on closed facilities		11			171
Assumptions about future sublease income, terminations and changes in interest rates		2			(8	)
Interest accretion		13			14
Liability assumed through acquisition of Alliance Boots		13			-
Cash payments, net of sublease income		(36	)		(43	)
Balance – end of period	$	260		$	257

Schedule of Rental Expense

Rental expense, which includes common area maintenance, insurance and taxes, was as follows (in millions):

	Three Months Ended February 28,						Six Months Ended February 28,
	2015			2014			2015			2014
Minimum rentals	$	809		$	673		$	1,486		$	1,333
Contingent rentals		1			1			3			4
Less: Sublease rental income		(6	)		(7	)		(11	)		(12	)
	$	804		$	667		$	1,478		$	1,325