Operating leases

9 Months Ended

May 31, 2019

Leases [Abstract]

Operating leases

Operating leases

During the three and nine months ended May 31, 2019, the Company recorded charges of $53 million and $95 million for facilities that were closed or relocated. This compares to $21 million and $88 million for the three and nine months ended May 31, 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 nine months ended May 31, 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	11			52
Changes in assumptions	54			19
Accretion expense	30			58
Other - non cash1	124			338
Cash payments, net of sublease income	(240		)	(221		)
Balance at end of period	$	943		$	964

¹  Represents unfavorable lease liabilities from acquired Rite Aid stores.