Borrowings (Tables)

3 Months Ended

Nov. 30, 2017

Debt Disclosure [Abstract]

Short-Term Borrowings

Borrowings consist of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted)

	November 30, 2017		August 31, 2017
Short-term borrowings 1
Commercial paper	$	990	$	—
Other 2	278		251
Total short-term borrowings	$	1,268	$	251
Long-term debt 1
$6 billion note issuance3,4
3.450% unsecured notes due 2026	$	1,887	$	1,887
4.650% unsecured notes due 2046	590		590
$8 billion note issuance3,4
2.700% unsecured notes due 2019	1,247		1,246
3.300% unsecured notes due 2021	1,244		1,244
3.800% unsecured notes due 2024	1,989		1,988
4.500% unsecured notes due 2034	495		495
4.800% unsecured notes due 2044	1,492		1,492
£700 million note issuance3,4
2.875% unsecured pound sterling notes due 2020	538		513
3.600% unsecured pound sterling notes due 2025	403		384
€750 million note issuance3,4
2.125% unsecured euro notes due 2026	888		884
$4 billion note issuance4,7
3.100% unsecured notes due 2022	1,195		1,195
4.400% unsecured notes due 2042	492		492
$1 billion note issuance4,7
5.250% unsecured notes due 2019 5	249		250
Other 6	28		24
Total long-term debt, less current portion	$	12,737	$	12,684

¹  Carry values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated borrowings have been translated using the spot rates at November 30, 2017 and August 31, 2017 respectively.

²  Other short-term borrowings represent a mix of fixed and variable rate borrowings with various maturities and working capital facilities denominated in various currencies.

³  Notes are unsubordinated debt obligations of Walgreens Boots Alliance and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance from time to time outstanding.

⁴  The issuances of the $6 billion, $8 billion, £0.7 billion, €0.75 billion, $4 billion and $1 billion notes as of November 30, 2017 had fair values and carrying values of $2.5 billion and $2.5 billion, $6.7 billion and $6.5 billion, $1.0 billion and $0.9 billion, $0.9 billion and $0.9 billion, $1.7 billion and $1.7 billion, and $0.3 billion and $0.2 billion, respectively. The fair values of the notes outstanding are level 1 fair value measures and determined based on quoted market price and translated at the November 30, 2017 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of November 30, 2017.

⁵  Includes interest rate swap fair market value adjustments. See note 9, fair value measurements for additional fair value disclosures.

⁶  Other long-term debt represents a mix of fixed and variable rate borrowings in various currencies with various maturities.

⁷  Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance.

Long-Term Debt

Borrowings consist of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted)

	November 30, 2017		August 31, 2017
Short-term borrowings 1
Commercial paper	$	990	$	—
Other 2	278		251
Total short-term borrowings	$	1,268	$	251
Long-term debt 1
$6 billion note issuance3,4
3.450% unsecured notes due 2026	$	1,887	$	1,887
4.650% unsecured notes due 2046	590		590
$8 billion note issuance3,4
2.700% unsecured notes due 2019	1,247		1,246
3.300% unsecured notes due 2021	1,244		1,244
3.800% unsecured notes due 2024	1,989		1,988
4.500% unsecured notes due 2034	495		495
4.800% unsecured notes due 2044	1,492		1,492
£700 million note issuance3,4
2.875% unsecured pound sterling notes due 2020	538		513
3.600% unsecured pound sterling notes due 2025	403		384
€750 million note issuance3,4
2.125% unsecured euro notes due 2026	888		884
$4 billion note issuance4,7
3.100% unsecured notes due 2022	1,195		1,195
4.400% unsecured notes due 2042	492		492
$1 billion note issuance4,7
5.250% unsecured notes due 2019 5	249		250
Other 6	28		24
Total long-term debt, less current portion	$	12,737	$	12,684

¹  Carry values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated borrowings have been translated using the spot rates at November 30, 2017 and August 31, 2017 respectively.

²  Other short-term borrowings represent a mix of fixed and variable rate borrowings with various maturities and working capital facilities denominated in various currencies.

³  Notes are unsubordinated debt obligations of Walgreens Boots Alliance and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance from time to time outstanding.

⁴  The issuances of the $6 billion, $8 billion, £0.7 billion, €0.75 billion, $4 billion and $1 billion notes as of November 30, 2017 had fair values and carrying values of $2.5 billion and $2.5 billion, $6.7 billion and $6.5 billion, $1.0 billion and $0.9 billion, $0.9 billion and $0.9 billion, $1.7 billion and $1.7 billion, and $0.3 billion and $0.2 billion, respectively. The fair values of the notes outstanding are level 1 fair value measures and determined based on quoted market price and translated at the November 30, 2017 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of November 30, 2017.

⁵  Includes interest rate swap fair market value adjustments. See note 9, fair value measurements for additional fair value disclosures.

⁶  Other long-term debt represents a mix of fixed and variable rate borrowings in various currencies with various maturities.

⁷  Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance.