Equity Method Investments (Tables)

6 Months Ended

Feb. 28, 2015

Equity Method Investments [Abstract]

Equity method investments as of February 28, 2015 and August 31, 2014 were as follows (in millions, except percentages):

	February 28, 2015					August 31, 2014
	Carrying Value		Ownership Percentage			Carrying Value		Ownership Percentage
Alliance Boots	$	N/A		100	%	$	7,336		45	%
Other		762		12% - 50	%		74		30% - 50	%
Total	$	762				$	7,410

N/A Not applicable

Summarized financial information of equity method investees

Summarized financial information for the Company's equity method investees is as follows:

Balance Sheet (in millions)

	February 28, 2015⁽¹⁾		August 31, 2014⁽¹⁾
Current assets	$	4,674	$	9,074
Noncurrent assets		625		22,363
Current liabilities		4,067		9,372
Noncurrent liabilities		253		10,608
Shareholders' equity ⁽²⁾		979		11,457

Income Statement (in millions)

	Three Months Ended February 28,				Six Months Ended February 28,
	2015⁽³⁾		2014⁽³⁾		2015⁽³⁾		2014⁽³⁾

Net sales	$	5,317	$	9,688	$	14,978	$	19,100
Gross Profit		979		2,083		3,168		4,055
Net Income		246		324		743		771
Share of income from equity method investments⁽³⁾		109		136		323		330

⁽¹⁾ Net assets in foreign equity method investments are translated at their respective February 28, 2015 and August 31, 2014 spot rates.

⁽²⁾ Shareholders' equity at February 28, 2015 and August 31, 2014 includes $151 million and $283 million respectively, related to noncontrolling interests.

⁽³⁾ Alliance Boots became a consolidated subsidiary and ceased being accounted for under the equity method upon completion of the Second Step Transaction on December 31, 2014. Earnings for the three and six month periods ended February 28, 2015 reflect incremental acquisition-related amortization expense of $4 million ($3 million net of tax) and $14 million ($8 million net of tax), respectively. Incremental acquisition-related amortization expense for the three and six month periods ended February 28, 2014 were $10 million ($8 million net of tax) and $20 million ($16 million net of tax), respectively. Earnings in foreign equity method investments are translated at their respective average exchange rates.