Goodwill and other intangible assets

9 Months Ended

May 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):



	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Balance at August 31, 2017	$	9,139	$	3,392	$	3,101	$	15,632
Acquisitions	1,361		—		4		1,365
Currency translation adjustments	—		54		38		92
Balance at May 31, 2018	$	10,500	$	3,446	$	3,143	$	17,089

The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):



	May 31, 2018		August 31, 2017
Gross amortizable intangible assets
Customer relationships and loyalty card holders ¹	$	4,331	$	2,510
Favorable lease interests and non-compete agreements	621		523
Trade names and trademarks	495		504
Purchasing and payer contracts	389		391
Total gross amortizable intangible assets	5,836		3,928

Accumulated amortization
Customer relationships and loyalty card holders ¹	$	930	$	780
Favorable lease interests and non-compete agreements	353		355
Trade names and trademarks	190		155
Purchasing and payer contracts	71		51
Total accumulated amortization	1,544		1,341
Total amortizable intangible assets, net	$	4,292	$	2,587

Indefinite lived intangible assets
Trade names and trademarks	$	5,696	$	5,514
Pharmacy licenses	2,123		2,055
Total indefinite lived intangible assets	$	7,819	$	7,569

Total intangible assets, net	$	12,111	$	10,156


¹	Includes purchased prescription files.

Amortization expense for intangible assets was $146 million and $363 million for the three and nine months ended May 31, 2018, respectively, and $98 million and $287 million for the three and nine months ended May 31, 2017, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at May 31, 2018 is as follows (in millions):



	2019		2020		2021		2022		2023
Estimated annual amortization expense	$	545	$	470	$	413	$	388	$	348

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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