Exit and disposal activities (Tables)

9 Months Ended

May 31, 2018

Restructuring and Related Activities [Abstract]

Total costs by segment, which were primarily recorded in selling, general and administrative expenses included in the three and nine months ended May 31, 2017, are as follows (in millions):



Three months ended May 31, 2017	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Asset impairments	$	96	$	18	$	—	$	114
Real estate costs	15		—		—		15
Severance and other business transition and exit costs	18		8		16		42
Total costs	$	129	$	26	$	16	$	171



Nine months ended May 31, 2017	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Asset impairments	$	207	$	21	$	1	$	229
Real estate costs	264		—		—		264
Severance and other business transition and exit costs	46		30		23		99
Total costs	$	517	$	51	$	24	$	592

Costs related to the Store Optimization Program, which were primarily recorded in selling, general and administrative expenses for the Company's Retail Pharmacy USA segment included in the three and nine months ended May 31, 2018, are as follows (in millions):



Three months ended May 31, 2018
Lease obligations and other real estate costs	2
Employee severance and other exit costs	22
Total costs	$	24



Nine months ended May 31, 2018
Lease obligations and other real estate costs	2
Employee severance and other exit costs	22
Total costs	$	24

Accrued Expenses Related to Cost Transformation

The changes in liabilities related to the Store Optimization Program for the nine months ended May 31, 2018 include the following (in millions):



	Lease obligations and other real estate costs		Employee severance and other exit costs			Total
Balance at August 31, 2017	$	—	$	—		$	—
Costs	2		22			24
Payments	—		(8		)	(8		)
Other - non cash¹	30		—			30
Balance at May 31, 2018	$	32	$	14		$	46


¹	Represents unfavorable lease liabilities from acquired Rite Aid stores.

The changes in liabilities related to the Cost Transformation Program for the nine months ended May 31, 2018 include the following (in millions):



	Real estate costs			Severance and other business transition and exit costs			Total
Balance at August 31, 2017	$	521		$	79		$	600
Payments	(112		)	(68		)	(180		)
Other - non cash	20			(1		)	19
Currency translation adjustments	—			(1		)	(1		)
Balance at May 31, 2018	$	429		$	9		$	438