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Segment reporting
 3 Months Ended
Nov. 30, 2017
Segment Reporting [Abstract]  
Segment reporting
Segment reporting
The Company has aligned its operations into three reportable segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s operating segments, which have been aggregated as described below. The chief operating decision maker uses adjusted operating income to assess segment profitability. The chief operating decision maker does not use total assets by segment to make decisions regarding resources, therefore the total asset disclosure by segment has not been included.

•
The Retail Pharmacy USA segment consists of the Walgreens business, which includes the operation of retail drugstores and convenient care clinics; and operation of mail and central specialty pharmacy services. Sales for the segment are principally derived from the sale of prescription drugs and a wide assortment of retail products, including health and wellness, beauty, personal care and consumables and general merchandise.

•
The Retail Pharmacy International segment consists of pharmacy-led health and beauty retail businesses and optical practices. These businesses include Boots branded stores in the United Kingdom, Thailand, Norway, the Republic of Ireland and the Netherlands; Benavides in Mexico and Ahumada in Chile. Sales for the segment are principally derived from the sale of prescription drugs and health and wellness, beauty, personal care and other consumer products.

•
The Pharmaceutical Wholesale segment consists of the Alliance Healthcare pharmaceutical wholesaling and distribution businesses and an equity method investment in AmerisourceBergen. Wholesale operations are located in the United Kingdom, Germany, France, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, Czech Republic and Lithuania. Sales for the segment are principally derived from wholesaling and distribution of a comprehensive offering of brand-name pharmaceuticals (including specialty pharmaceutical products) and generic pharmaceuticals, health and beauty products, home healthcare supplies and equipment, and related services to pharmacies and other healthcare providers.

The results of operations for each reportable segment include procurement benefits and an allocation of corporate-related overhead costs. The “Eliminations” column contains items not allocable to the reportable segments, as the information is not utilized by the chief operating decision maker to assess segment performance and allocate resources.

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.
Three months ended November 30, 2017
 
 
 
 
 
 
 
 
 
Sales to external customers
$
22,489

 
$
3,083

 
$
5,168

 
$
—

 
$
30,740

Intersegment sales
—

 
—

 
550

 
(550
)
 
—

Sales
$
22,489

 
$
3,083

 
$
5,718

 
$
(550
)
 
$
30,740

 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
1,377

 
$
210

 
$
224

 
$
(2
)
 
$
1,809

 
 
 
 
 
 
 
 
 
 
Three months ended November 30, 2016
 

 
 

 
 

 
 

 
 

Sales to external customers
$
20,659

 
$
2,962

 
$
4,880

 
$
—

 
$
28,501

Intersegment sales
—

 
—

 
537

 
(537
)
 
—

Sales
$
20,659

 
$
2,962

 
$
5,417

 
$
(537
)
 
$
28,501

 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
1,289

 
$
213

 
$
224

 
$
—

 
$
1,726

 
 
 
 
 
 
 
 
 
 

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.
Three months ended November 30, 2017
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
1,377

 
$
210

 
$
224

 
$
(2
)
 
$
1,809

Adjustments to equity earnings in AmerisourceBergen
 
 
 
 
 
 
 
 
(189
)
Acquisition-related amortization
 

 
 

 
 

 
 

 
(85
)
Hurricane-related costs
 

 
 

 
 

 
 

 
(83
)
LIFO provision
 

 
 

 
 

 
 

 
(54
)
Acquisition-related costs
 

 
 

 
 

 
 

 
(51
)
Legal settlement
 

 
 

 
 

 
 

 
(25
)
Operating income
 

 
 

 
 

 
 

 
$
1,322

 
 
 
 
 
 
 
 
 
 
Three months ended November 30, 2016
 

 
 

 
 

 
 

 
 

Adjusted operating income
$
1,289

 
$
213

 
$
224

 
$
—

 
$
1,726

Adjustments to equity earnings in AmerisourceBergen
 

 
 

 
 

 
 

 
(41
)
Acquisition-related amortization
 

 
 

 
 

 
 

 
(82
)
LIFO provision
 

 
 

 
 

 
 

 
(58
)
Acquisition-related costs
 
 
 
 
 
 
 
 
(17
)
Cost transformation
 
 
 
 
 
 
 
 
(81
)
Operating income
 

 
 

 
 

 
 

 
1,447