Exit and disposal activities (Tables)

9 Months Ended

May 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

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

	Three months ended May 31, 2019		Nine months ended May 31, 2019
Lease obligations and other real estate costs	$	44	$	45
Employee severance and other exit costs	5		54
Total costs	$	49	$	99

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 May 31, 2019	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Employee severance and other exit costs	$	7	$	5	$	11	$	24
Asset impairments1	5		16		11		32
Total costs	$	13	$	21	$	22	$	56

Nine months ended May 31, 2019	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Employee severance and other exit costs	$	24	$	39	$	22	$	86
Asset impairments1	5		48		96		149
Total costs	$	29	$	88	$	119	$	235

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	86			149			235
Payments	(57		)	—			(57		)
Other - non cash	—			(149		)	(149		)
Balance at May 31, 2019	$	28		$	—		$	28

Accrued Expenses Related to Cost Transformation

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	45			54			99
Payments	(125		)	(69		)	(194		)
Other - non cash1	104			—			104
Balance at May 31, 2019	$	332		$	6		$	338

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

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	(67		)	(3		)	(70		)
Other - non cash	51			—			51
Balance at May 31, 2019	$	399		$	4		$	403