Exit and disposal activities (Tables)

6 Months Ended

Feb. 28, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

Costs related to the Transformational Cost Management Program, which were primarily recorded within selling, general and administrative expenses were as follows (in millions):

Three months ended February 28, 2019	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Employee severance and other exit costs	$	14	$	14	$	11	$	39
Asset impairments1	—		26		85		111
Total costs	$	14	$	40	$	96	$	150

Six months ended February 28, 2019	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Employee severance and other exit costs	$	16	$	35	$	11	$	62
Asset impairments1	—		32		85		117
Total costs	$	16	$	67	$	96	$	179

¹  Primarily includes write down of certain software and inventory.

The changes in liabilities related to the Transformational Cost Management Program include the following (in millions):

	Employee severance and other exit costs			Asset impairments			Total
Balance at August 31, 2018	$	—		$	—		$	—
Costs	62			117			179
Payments	(33		)	—			(33		)
Other - non cash	—			(117		)	(117		)
Balance at February 28, 2019	$	30		$	—		$	30

Costs related to the Store Optimization Program were as follows (in millions):

	Three months ended February 28, 2019		Six months ended February 28, 2019
Lease obligations and other real estate costs	$	9	$	2
Employee severance and other exit costs	22		49
Total costs	$	31	$	51

Accrued Expenses Related to Cost Transformation

The changes in liabilities related to the Cost Transformation Program include the following (in millions):

	Real estate costs			Severance and other business transition and exit costs			Total
Balance at August 31, 2018	$	414		$	7		$	421
Payments	(44		)	(2		)	(46		)
Other - non cash	19			—			19
Balance at February 28, 2019	$	390		$	5		$	395

The changes in liabilities related to the Store Optimization Program include the following (in millions):

	Lease obligations and other real estate costs			Employee severance and other exit costs			Total
Balance at August 31, 2018	$	308		$	21		$	329
Costs	2			49			51
Payments	(91		)	(56		)	(147		)
Other - non cash1	103			—			103
Balance at February 28, 2019	$	321		$	14		$	336

¹  Primarily represents unfavorable lease liabilities from acquired Rite Aid stores.