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Segment reporting
 6 Months Ended
Feb. 28, 2019
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.

Retail Pharmacy USA
The Retail Pharmacy USA segment consists of the Walgreens business, which includes the operation of retail drugstores, convenient care clinics and 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 and personal care and consumables and general merchandise.

Retail Pharmacy International
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 and personal care and other consumer products.

Pharmaceutical Wholesale
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 following table reflects results of operations and reconciles adjusted operating income to operating income for the Company's reportable segments (in millions):

 
Retail
Pharmacy
USA
 
Retail
Pharmacy
International
 
Pharmaceutical
Wholesale
 
Eliminations1
 
Walgreens
Boots
Alliance, Inc.
Three months ended February 28, 2019
 
 
 
 
 
 
 
 
 
Sales
$
26,257

 
$
3,082

 
$
5,738

 
$
(549
)
 
$
34,528

 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
1,455

 
$
256

 
$
225

 
$
(1
)
 
$
1,935

Acquisition-related amortization
 

 
 

 
 

 
 

 
(123
)
Transformational cost management
 

 
 

 
 

 
 

 
(150
)
Acquisition-related costs
 

 
 

 
 

 
 

 
(82
)
Adjustments to equity earnings in AmerisourceBergen
 
 
 
 
 
 
 
 
(9
)
Store optimization
 
 
 
 
 
 
 
 
(31
)
LIFO provision
 

 
 

 
 

 
 

 
(8
)
Certain legal and regulatory accruals and settlements
 

 
 

 
 

 
 

 
(14
)
Operating income
 

 
 

 
 

 
 

 
$
1,517

 
 
 
 
 
 
 
 
 
 
Three months ended February 28, 2018
 

 
 

 
 

 
 

 
 

Sales
$
24,478

 
$
3,317

 
$
5,755

 
$
(529
)
 
$
33,021

 
 
 
 
 
 
 
 
 
 
Adjusted operating income3
$
1,650

 
$
276

 
$
231

 
$
3

 
$
2,160

Acquisition-related amortization
 
 
 
 
 
 
 
 
(113
)
Acquisition-related costs
 

 
 

 
 

 
 

 
(65
)
Adjustments to equity earnings in AmerisourceBergen
 
 
 
 
 
 
 
 
113

LIFO provision
 

 
 

 
 

 
 

 
(43
)
Certain legal and regulatory accruals and settlements2
 

 
 

 
 

 
 

 
(90
)
Asset recovery
 
 
 
 
 
 
 
 
15

Operating income3
 

 
 

 
 

 
 

 
$
1,977




 
Retail
Pharmacy
USA
 
Retail
Pharmacy
International
 
Pharmaceutical
Wholesale
 
Eliminations1
 
Walgreens
Boots
Alliance, Inc.
Six months ended February 28, 2019
 
 
 
 
 
 
 
 
 
Sales
$
51,979

 
$
5,982

 
$
11,446

 
$
(1,086
)
 
$
68,321

 
 
 
 
 
 
 
 
 
 
Adjusted operating income
$
2,834

 
$
388

 
$
445

 
$
—

 
$
3,667

Acquisition-related amortization
 

 
 

 
 

 
 

 
(246
)
Transformational cost management
 

 
 

 
 

 
 

 
(179
)
Acquisition-related costs
 

 
 

 
 

 
 

 
(148
)
Adjustments to equity earnings in AmerisourceBergen
 

 
 

 
 

 
 

 
(54
)
Store optimization
 

 
 

 
 

 
 

 
(51
)
LIFO provision
 
 
 
 
 
 
 
 
(48
)
Certain legal and regulatory accruals and settlements
 
 
 
 
 
 
 
 
(24
)
Operating income
 

 
 

 
 

 
 

 
$
2,918

 
 
 
 
 
 
 
 
 
 
Six months ended February 28, 2018
 

 
 

 
 

 
 

 
 

Sales
$
46,967

 
$
6,400

 
$
11,473

 
$
(1,079
)
 
$
63,761

 
 
 
 
 
 
 
 
 
 
Adjusted operating income3
$
3,028

 
$
481

 
$
456

 
$
1

 
$
3,966

Acquisition-related amortization
 

 
 

 
 

 
 

 
(198
)
Acquisition-related costs
 
 
 
 
 
 
 
 
(116
)
Adjustments to equity earnings in AmerisourceBergen
 

 
 

 
 

 
 

 
(76
)
LIFO provision
 

 
 

 
 

 
 

 
(97
)
Certain legal and regulatory accruals and settlements2
 

 
 

 
 

 
 

 
(115
)
Hurricane-related costs
 
 
 
 
 
 
 
 
(83
)
Asset recovery
 

 
 

 
 

 
 

 
15

Operating income3
 
 
 
 
 
 
 
 
$
3,296



1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International
segments.
2 As previously disclosed, beginning in the quarter ended August 31, 2018, management reviewed and refined its practice to
include all charges related to the matters included in certain legal and regulatory accruals and settlements. In order to
present non-GAAP measures on a consistent basis for fiscal year 2018, the Company included adjustments in the quarter
ended August 31, 2018 of $14 million, $50 million and $5 million which were previously accrued in the Company’s
financial statements for the quarters ended November 30, 2017, February 28, 2018 and May 31, 2018, respectively. These
additional adjustments impact the comparability of such results to the results reported in prior and future quarters.
3 The Company adopted new accounting guidance in Accounting Standards Update 2017-07 as of September 1, 2018 (fiscal
2019) on a retrospective basis for the Consolidated Condensed Statements of Earnings presentation. See note 17, new
accounting pronouncements, for further information.