Debt (Tables)

9 Months Ended

May 31, 2019

Debt Disclosure [Abstract]

Short-Term Borrowings

Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted):

	May 31, 2019		August 31, 2018
Short-term debt1
Commercial paper	$	2,820	$	430
Credit facilities 2	948		999
$8 billion note issuance3,4
2.700% unsecured notes due 2019	1,249		—
$1 billion note issuance5
5.250% unsecured notes due 2019 6	—		249
Other 7	465		288
Total short-term debt	$	5,483	$	1,966
Long-term debt 1
$6 billion note issuance3,4
3.450% unsecured notes due 2026	$	1,889	$	1,888
4.650% unsecured notes due 2046	591		590
$8 billion note issuance3,4
2.700% unsecured notes due 2019	—		1,248
3.300% unsecured notes due 2021	1,246		1,245
3.800% unsecured notes due 2024	1,991		1,990
4.500% unsecured notes due 2034	495		495
4.800% unsecured notes due 2044	1,492		1,492
£700 million note issuance3,4
2.875% unsecured Pound sterling notes due 2020	503		517
3.600% unsecured Pound sterling notes due 2025	376		387
€750 million note issuance3,4
2.125% unsecured Euro notes due 2026	833		868
$4 billion note issuance3,5
3.100% unsecured notes due 2022	1,197		1,196
4.400% unsecured notes due 2042	493		492
Credit facilities 2	996		—
Other 8	25		23
Total long-term debt, less current portion	$	12,127	$	12,431

¹  Carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt has been translated using the spot rates at May 31, 2019 and August 31, 2018, respectively.

²  Credit facilities include debt outstanding under the various credit facilities described in more detail below.

³  The $6 billion, $8 billion, £0.7 billion, €0.75 billion and $4 billion note issuances as of May 31, 2019 had fair values and carrying values of $2.5 billion and $2.5 billion, $6.4 billion and $6.5 billion, $0.9 billion and $0.9 billion, $0.9 billion and $0.8 billion and $1.7 billion and $1.7 billion, respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the May 31, 2019 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of May 31, 2019.

⁴  Notes are unsubordinated debt obligations of Walgreens Boots Alliance and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance from time to time outstanding.

⁵  Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance.

⁶  Includes interest rate swap fair market value adjustments. See note 9, fair value measurements, for additional fair value disclosures.

⁷  Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies.

⁸  Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities.

Long-Term Debt

Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted):

	May 31, 2019		August 31, 2018
Short-term debt1
Commercial paper	$	2,820	$	430
Credit facilities 2	948		999
$8 billion note issuance3,4
2.700% unsecured notes due 2019	1,249		—
$1 billion note issuance5
5.250% unsecured notes due 2019 6	—		249
Other 7	465		288
Total short-term debt	$	5,483	$	1,966
Long-term debt 1
$6 billion note issuance3,4
3.450% unsecured notes due 2026	$	1,889	$	1,888
4.650% unsecured notes due 2046	591		590
$8 billion note issuance3,4
2.700% unsecured notes due 2019	—		1,248
3.300% unsecured notes due 2021	1,246		1,245
3.800% unsecured notes due 2024	1,991		1,990
4.500% unsecured notes due 2034	495		495
4.800% unsecured notes due 2044	1,492		1,492
£700 million note issuance3,4
2.875% unsecured Pound sterling notes due 2020	503		517
3.600% unsecured Pound sterling notes due 2025	376		387
€750 million note issuance3,4
2.125% unsecured Euro notes due 2026	833		868
$4 billion note issuance3,5
3.100% unsecured notes due 2022	1,197		1,196
4.400% unsecured notes due 2042	493		492
Credit facilities 2	996		—
Other 8	25		23
Total long-term debt, less current portion	$	12,127	$	12,431

¹  Carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt has been translated using the spot rates at May 31, 2019 and August 31, 2018, respectively.

²  Credit facilities include debt outstanding under the various credit facilities described in more detail below.

³  The $6 billion, $8 billion, £0.7 billion, €0.75 billion and $4 billion note issuances as of May 31, 2019 had fair values and carrying values of $2.5 billion and $2.5 billion, $6.4 billion and $6.5 billion, $0.9 billion and $0.9 billion, $0.9 billion and $0.8 billion and $1.7 billion and $1.7 billion, respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the May 31, 2019 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of May 31, 2019.

⁴  Notes are unsubordinated debt obligations of Walgreens Boots Alliance and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance from time to time outstanding.

⁵  Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance.

⁶  Includes interest rate swap fair market value adjustments. See note 9, fair value measurements, for additional fair value disclosures.

⁷  Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies.

⁸  Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities.