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Segment reporting (Tables)
12 Months Ended
Aug. 31, 2017
Segment Reporting [Abstract]  
Reconciliation of revenue from segments to consolidated
The following table reflects results of operations of the Company’s reportable segments (in millions):
 
Retail Pharmacy USA
 
Retail Pharmacy International
 
Pharmaceutical
Wholesale
 
Eliminations
 
Walgreens
Boots Alliance,
Inc.
For the year ended August 31, 2017
 
 
 
 
 
 
 
 
 
Sales to external customers
$
87,302

 
$
11,813

 
$
19,099

 
$

 
$
118,214

Intersegment sales

 

 
2,089

 
(2,089
)
 

Sales
$
87,302

 
$
11,813

 
$
21,188

 
$
(2,089
)
 
$
118,214

 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
5,707

 
$
909

 
$
924

 
$

 
$
7,540

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
$
1,090

 
$
414

 
$
150

 
$

 
$
1,654

Additions to property, plant and equipment
860

 
384

 
107

 

 
1,351

 
 
 
 
 
 
 
 
 
 
For the year ended August 31, 2016
 

 
 

 
 

 
 

 
 

Sales to external customers
$
83,802

 
$
13,256

 
$
20,293

 
$

 
$
117,351

Intersegment sales

 

 
2,278

 
(2,278
)
 

Sales
$
83,802

 
$
13,256

 
$
22,571

 
$
(2,278
)
 
$
117,351

 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
5,357

 
$
1,155

 
$
708

 
$
(12
)
 
$
7,208

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
$
1,134

 
$
401

 
$
166

 
$
17

 
$
1,718

Additions to property, plant and equipment
777

 
444

 
104

 

 
1,325

 
 
 
 
 
 
 
 
 
 
For the year ended August 31, 2015
 

 
 

 
 

 
 

 
 

Sales to external customers
$
80,974

 
$
8,657

 
$
13,813

 
$

 
$
103,444

Intersegment sales

 

 
1,514

 
(1,514
)
 

Sales
$
80,974

 
$
8,657

 
$
15,327

 
$
(1,514
)
 
$
103,444

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
5,098

 
$
616

 
$
450

 
$
(7
)
 
$
6,157

 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
$
1,217

 
$
393

 
$
120

 
$
12

 
$
1,742

Additions to property, plant and equipment
951

 
249

 
51

 

 
1,251


Reconciliation of operating profit (loss) from segments to consolidated
The following table reconciles adjusted operating income to operating income (in millions):
 
Retail Pharmacy USA
Retail Pharmacy International
Pharmaceutical
Wholesale
Eliminations
Walgreens
Boots
Alliance, Inc.
For the year ended August 31, 2017
 
 
 
 
 
Adjusted operating income
$
5,707

$
909

$
924

$

$
7,540

Cost transformation
 

 

 

 

(835
)
Acquisition-related costs
 

 

 

 

(474
)
Acquisition-related amortization
 

 

 

 

(332
)
Adjustments to equity earnings in AmerisourceBergen
 
 
 
 
(187
)
LIFO provision
 

 

 

 

(166
)
Asset recovery
 

 

 

 

11

Operating income
 

 

 

 

$
5,557

 
 
 
 
 
 
For the year ended August 31, 2016
 

 

 

 

 

Adjusted operating income
$
5,357

$
1,155

$
708

$
(12
)
$
7,208

Cost transformation
 

 

 

 

(424
)
Acquisition-related costs
 
 
 
 
(102
)
Acquisition-related amortization
 

 

 

 

(369
)
Adjustments to equity earnings in AmerisourceBergen
 
 
 
 
(21
)
LIFO provision
 

 

 

 

(214
)
Legal settlement
 
 
 
 
(47
)
Asset impairment
 
 
 
 
(30
)
Operating income
 

 

 

 

$
6,001

 
 
 
 
 
 
For the year ended August 31, 2015
 

 

 

 

 

Adjusted operating income
$
5,098

$
616

$
450

$
(7
)
$
6,157

Cost transformation
 

 

 

 

(542
)
Acquisition-related costs
 
 
 
 
(87
)
Acquisition-related amortization
 

 

 

 

(485
)
LIFO provision
 

 

 

 

(285
)
Asset impairment
 
 
 
 
(110
)
Store closures and other optimization costs
 

 

 

 

(56
)
(Loss) on sale of business
 

 

 

 

(17
)
Adjustments to equity earnings in Alliance Boots
 

 

 

 

93

Operating income
 

 

 

 

$
4,668


No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Two payers accounted for approximately 25% of the Retail Pharmacy USA division’s sales in fiscal 2017 and approximately 22% in fiscal 2016. One customer in the Retail Pharmacy International division accounted for approximately 18% of the division’s sales in fiscal 2017 and approximately 18% in fiscal 2016.
Geographic data for net sales
Geographic data for sales is as follows (in millions):

 
2017
 
2016
 
2015
United States of America
$
87,302

 
$
83,802

 
$
80,974

United Kingdom
12,552

 
14,081

 
9,235

Europe (excluding the United Kingdom)
16,224

 
16,793

 
11,402

Other
2,136

 
2,675

 
1,833

Sales
$
118,214

 
$
117,351

 
$
103,444


Geographic data for long-lived assets
Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):

 
2017
 
2016
United States of America
$
10,344

 
$
10,924

United Kingdom
2,502

 
2,611

Europe (excluding the United Kingdom)
616

 
625

Other
180

 
175

Total long-lived assets
$
13,642

 
$
14,335