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Equity Method Investments
9 Months Ended
May 31, 2016
Equity Method Investments [Abstract]  
Equity Method Investments
Note 5. Equity Method Investments
 
Equity method investments as of May 31, 2016 and August 31, 2015 were as follows (in millions, except percentages):

  
May 31, 2016
  
August 31, 2015
 
  
Carrying
Value
  
Ownership
Percentage
  
Carrying
Value
  
Ownership
Percentage
 
AmerisourceBergen
 
$
2,936
   
16
%
 
$
 NA  
NA
 
Other
 
 
1,227
   
12% - 50
%
 
 
1,242
   
12% - 50
%
Total
 
$
4,163
      
$
1,242
     

AmerisourceBergen Investment
On March 18, 2016, the Company exercised warrants to purchase 22,696,912 shares of AmerisourceBergen Corporation (“AmerisourceBergen”) common stock at an exercise price of $51.50 per share for an aggregate exercise price payment of $1.17 billion. As of May 31, 2016, the Company owned 34,157,955 AmerisourceBergen common shares representing approximately 16% of the outstanding AmerisourceBergen common stock and accounts for its equity investment in AmerisourceBergen using the equity method of accounting, subject to a two-month reporting lag, with the net earnings attributable to the Company’s investment being classified within the operating income of its Pharmaceutical Wholesale segment. The Company continues to hold additional warrants to purchase an additional 22,696,912 shares of AmerisourceBergen common stock, which the Company has the right to exercise beginning in March 2017. See Note 10, Financial Instruments for further information. Due to the March 18, 2016 effective date and the two-month reporting lag, our results for the three and nine month periods ended May 31, 2016 include thirteen days of equity method income.  Equity earnings from AmerisourceBergen is reported as a separate line in the Consolidated Condensed Statements of Earnings.
 
Other Investments
The Company’s other equity method investments include its investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Corporation Limited, the Company’s pharmaceutical wholesale investments in China; and the equity method investment retained through the sale of a majority interest in Option Care Inc. in fiscal 2015. The Company reported $15 million and $35 million of post-tax equity earnings in other equity method investments for the three and nine month periods ended May 31, 2016, respectively, in the Consolidated Condensed Statements of Earnings. The Company reported $7 million and $15 million of post-tax equity earnings from equity method investments other than Alliance Boots for the three and nine month periods ended May 31, 2015.

Equity method investments of the Company are recorded within other non-current assets on the Consolidated Condensed Balance Sheets.