XML 59 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
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