Acquisitions (Tables)

12 Months Ended

Aug. 31, 2017

Schedule of identifiable assets acquired and liabilities assumed

The following table summarizes the consideration for the acquisition and the preliminary amounts of identified assets acquired and liabilities assumed at the date of the transaction (in millions).



Total consideration	$	720

Identifiable assets acquired and liabilities assumed
Accounts receivable	$	217
Inventories	149
Property, plant and equipment	11
Intangible assets	331
Trade accounts payable, accrued expenses and other liabilities	(91		)
Total identifiable net assets	617
Goodwill	$	103

Schedule of equity transaction impact

The impact of the equity transaction is as follows (in millions):



	Amount
Consideration attributed to WBAD	$	2,559
Less: carrying value of the Company’s pre-existing noncontrolling interest	130
Impact to additional paid in capital	2,429

Schedule of business acquisition consideration paid

The following table summarizes the consideration paid to acquire the remaining 55% interest in Alliance Boots and the amounts of identified assets acquired and liabilities assumed at the date of the Second Step Transaction (in millions).



Consideration paid
Cash	$	4,874
Common stock	10,977
Total consideration transferred	15,851
Less: consideration attributed to WBAD	(2,559		)
	13,292
Fair value of the investment in Alliance Boots held before the Second Step Transaction	8,149
Total consideration	$	21,441

Identifiable assets acquired and liabilities assumed including noncontrolling interests
Cash and cash equivalents	$	413
Accounts receivable	3,799
Inventories	3,713
Other current assets	894
Property, plant and equipment	3,806
Intangible assets	11,691
Other non-current assets	2,217
Trade accounts payable, accrued expenses and other liabilities	(7,696		)
Borrowings	(9,010		)
Deferred income taxes	(2,452		)
Other non-current liabilities	(383		)
Noncontrolling interests	(412		)
Total identifiable net assets and noncontrolling interests	6,580
Goodwill	$	14,861

Schedule of identified definite and indefinite-lived assets

The identified definite and indefinite lived intangible assets were as follows:



Definite-lived intangible assets	Weighted-average useful life (in years)	Amount (in millions)
Customer relationships	12	$	1,311
Loyalty card holders	20	742
Trade names and trademarks	9	399
Favorable lease interests	7	93
Total		$	2,545

Indefinite-lived intangible assets		Amount (in millions)
Trade names and trademarks		$	6,657
Pharmacy licenses		2,489
Total		$	9,146

Schedule of pro forma information

The following table presents supplemental unaudited condensed pro forma consolidated information for 2015 and 2014 as if the Second Step Transaction had occurred on September 1, 2013, the first day of the Company’s fiscal 2014. The unaudited condensed pro forma information reflect certain adjustments related to past operating performance and acquisition accounting adjustments, such as increased amortization expense based on the fair valuation of assets acquired, the impact of acquisition financing, transaction costs and the related income tax effects. The unaudited condensed pro forma information does not include any anticipated synergies that may be achievable subsequent to the date of the Second Step Transaction. The unaudited condensed pro forma information also excludes certain non-recurring items such as transaction related costs. Accordingly, the unaudited condensed pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company’s results would have been had the Second Step Transaction occurred at the beginning of the periods presented or the results which may occur in the future.



	Year ended		Year ended
(in millions, except per share amounts)	August 31, 2015		August 31, 2014
Sales	$	116,491	$	113,896
Net earnings	4,278		3,884

Net earnings per common share:
Basic	$	4.10	$	3.54
Diluted	4.06		3.50

Business of actual results from business operation

Actual results from Alliance Boots operations included in the Consolidated Statements of Earnings since December 31, 2014, the date of the Second Step Transaction, are as follows (in millions, except per share amounts):



	Year ended
(in millions, except per share amounts)	August 31, 2015
Sales	$	22,470
Net earnings	853

Net earnings per common share:
Basic	$	0.82
Diluted	0.81