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Segment reporting (Tables)
 6 Months Ended
Feb. 28, 2019
Segment Reporting [Abstract]  
Reconciliation of Operating Income (Loss) from Segments to Consolidated
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.