Subsequent Event

6 Months Ended

Feb. 29, 2016

Subsequent Event [Abstract]

Subsequent Event

Note 20. Subsequent Event

On March 18, 2016, the Company exercised Warrant 1 (described in Note 10, Financial Instruments) in full, resulting in the acquisition from AmerisourceBergen of 22,696,912 shares of AmerisourceBergen common stock for an aggregate exercise price payment of $1.17 billion. The transaction was funded using existing cash on hand. Following the exercise of Warrant 1, the Company owned 34,157,955 outstanding AmerisourceBergen common shares representing approximately 15.2% of the outstanding AmerisourceBergen common stock (based on shares outstanding as of March 16, 2016 adjusted to give effect to the exercise of Warrant 1, as reported by AmerisourceBergen in its Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2016). The Company continues to hold Warrant 2, which the Company has the right to exercise beginning in March 2017.

Effective March 18, 2016, the Company accounts for its investment in AmerisourceBergen using the equity method of accounting, subject to a two-month reporting lag, with the net earnings attributable to its investment being classified within the operating income of the Company’s Pharmaceutical Wholesale segment.