Leases and Store Closures (Tables)

9 Months Ended

May. 31, 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	$	3,110
2016		18		65		3,028
2017		18		62		2,988
2018		18		59		2,755
2019		18		59		2,572
Later		1,130		880		24,020
Total Minimum Lease Payments	$	1,221	$	1,193	$	38,473

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):

	May 31, 2015			August 31, 2014
Balance – beginning of period	$	257		$	123
Provision for present value of non-cancellable lease payments on closed facilities		44			171
Assumptions about future sublease income, terminations and changes in interest rates		(2	)		(8	)
Interest accretion		18			14
Liability assumed through acquisition of Alliance Boots		13			-
Cash payments, net of sublease income		(52	)		(43	)
Balance – end of period	$	278		$	257

Schedule of Rental Expense

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

	Three Months Ended May 31,						Nine Months Ended May 31,
	2015			2014			2015			2014
Minimum rentals	$	852		$	686		$	2,339		$	2,020
Contingent rentals		1			1			3			4
Less: Sublease rental income		(15	)		(4	)		(32	)		(16	)
	$	838		$	683		$	2,310		$	2,008