XML 48 R76.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Aug. 31, 2015
Aug. 31, 2014
Aug. 31, 2013
Schedule of Income before Income Tax, Domestic and Foreign [Abstract]      
U.S. $ 2,725 $ 3,386 $ 3,469
Non - U.S. 2,586 171 578
Earnings Before Income Tax Provision 5,311 3,557 4,047
Current provision [Abstract]      
Federal 846 1,207 1,122
State 121 109 134
Non - U.S. 128 35 15
Total current provisions for income taxes 1,095 1,351 1,271
Deferred provision [Abstract]      
Federal (23) 183 228
State (16) (3) (2)
Non - U.S. 0 (5) 2
Total deferred provision for income taxes (39) 175 228
Income tax provision $ 1,056 $ 1,526 $ 1,499
Difference Between the Statutory Federal Income Tax Rate and the Effective Tax Rate [Abstract]      
Federal statutory rate 35.00% 35.00% 35.00%
State income taxes, net of federal benefit 1.30% 1.90% 2.20%
Loss on Alliance Boots call option [1] 0.00% 8.50% 0.00%
Deferred tax asset recognition [1] (4.10%) 0.00% 0.00%
Gain on previously held equity interest (5.80%) 0.00% 0.00%
Foreign income taxed at non-U.S. rates (6.20%) (3.10%) (0.30%)
Non-taxable income (2.60%) 0.00% 0.00%
Non-deductible expenses 2.30% 0.30% 1.00%
Other 0.00% 0.30% (0.90%)
Effective income tax rate 19.90% 42.90% 37.00%
Remaining ownership subject to call option   55.00%  
Nondeductible loss on exercise of call option $ 0 $ 866 $ 0
Deferred tax assets [Abstract]      
Postretirement benefits 130 247  
Compensation and benefits 224 166  
Insurance 68 98  
Accrued rent 167 166  
Outside basis difference 73 0  
Bad debts 67 65  
Tax attributes 341 430  
Stock compensation 119 131  
Other 93 75  
Subtotal deferred tax assets 1,282 1,378  
Less: Valuation allowance 125 223  
Total deferred tax assets 1,157 1,155  
Deferred tax liabilities [Abstract]      
Accelerated depreciation 1,234 1,244  
Inventory 420 407  
Intangible assets 1,822 64  
Equity method investment 333 387  
Deferred income 889 208  
Total deferred tax liabilities 4,698 2,310  
Net deferred tax liabilities 3,541 1,155  
Operating Loss Carryforwards [Line Items]      
Income taxes paid 1,300 1,200 1,200
Deferred tax assets operating loss carryforwards subject to expiration 218    
Deferred tax assets operating loss carryforwards not subject to expiration 123    
Unrecognized tax benefit reported in current income tax liabilities 73    
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of year 193 208 197
Gross increases related to business combination 84 0 0
Gross increases related to tax positions in a prior period 45 55 18
Gross decreases related to tax positions in a prior period (75) (82) (32)
Gross increases related to tax positions in the current period 63 46 30
Settlements with taxing authorities (45) (22) (2)
Lapse of statute of limitations (4) (12) (3)
Balance at end of year 261 193 208
Unrecognized tax benefits would favorably impact the effective tax rate if recognized $ 227 105 $ 116
Number of months of increase (decrease) in unrecognized tax benefit with respect to uncertain unrecognized tax positions (in months) 12    
Accrued Interest and penalties in income tax provision $ 36 $ 21  
Interest and penalties included in income tax expense 3    
Unrecorded deferred tax liability for temporary differences related to foreign subsidiaries $ 89    
Minimum [Member]      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards, expiration dates Jan. 01, 2016    
Maximum [Member]      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards, expiration dates Dec. 31, 2033    
U.S. Federal [Member]      
Operating Loss Carryforwards [Line Items]      
Deferred tax assets, operating loss carryforwards $ 399    
State [Member]      
Operating Loss Carryforwards [Line Items]      
Deferred tax assets, operating loss carryforwards 478    
Non-U.S. [Member]      
Operating Loss Carryforwards [Line Items]      
Deferred tax assets, operating loss carryforwards $ 476    
[1] Upon the amendment and immediate exercise of the call option to acquire the remaining 55% ownership of Alliance Boots, the Company was required to compare the fair value of the amended option with the book value of the original option with a gain or loss recognized for the difference. The fair value of the amended option resulted in a financial statement loss of $866 million. The loss on the Alliance Boots call option was, in part, a capital loss and available to be carried forward and offset future capital gains through fiscal 2020. The loss was also the primary contributor to the 2014 valuation allowance amount reported in the deferred income tax table below. In 2015, the deferred tax asset related to the loss was recognized, resulting in the 4.1% effective tax rate benefit reported in the table above as well as a reduction to the valuation allowance amount reported in the deferred income tax table below.