Operating leases

6 Months Ended

Feb. 28, 2019

During the three and six months ended February 28, 2019, the Company recorded charges of $29 million and $42 million for facilities that were closed or relocated. This compares to $28 million and $67 million for the three and six months ended February 28, 2018. These charges are reported in selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings.

The changes in reserve for facility closings and related lease termination charges include the following (in millions):



	For the six months ended February 28, 2019			For the twelve months ended August 31, 2018
Balance at beginning of period	$	964		$	718
Provision for present value of non-cancellable lease payments on closed facilities	1			52
Changes in assumptions	21			19
Accretion expense	20			58
Other - non cash¹	86			338
Cash payments, net of sublease income	(164		)	(221		)
Balance at end of period	$	928		$	964


¹	Represents unfavorable lease liabilities from acquired Rite Aid stores.