Leases (Tables)

12 Months Ended

Aug. 31, 2019

Leases [Abstract]

Schedule of future minimum rental payments for operating leases

The following table is a summary of the future minimum lease payments as of August 31, 2019 (in millions):

	Finance lease obligation		Capital lease		Operating lease1
2020	$	21	$	59	$	3,484
2021	21		60		3,323
2022	20		58		3,124
2023	20		57		2,943
2024	20		58		2,771
Later	209		801		16,623
Total minimum lease payments	$	311	$	1,093	$	32,268

¹  Includes $1.6 billion of minimum rental commitments on closed locations

Schedule of future minimum lease payments for capital leases

The following table is a summary of the future minimum lease payments as of August 31, 2019 (in millions):

	Finance lease obligation		Capital lease		Operating lease1
2020	$	21	$	59	$	3,484
2021	21		60		3,323
2022	20		58		3,124
2023	20		57		2,943
2024	20		58		2,771
Later	209		801		16,623
Total minimum lease payments	$	311	$	1,093	$	32,268

¹  Includes $1.6 billion of minimum rental commitments on closed locations

Reserve for facility closings and related lease termination charges

The changes in liability for facility closings and related lease termination charges include the following (in millions):

	2019			2018
Balance at beginning of period	$	964		$	718
Provision for present value of non-cancelable lease payments on closed facilities	90			52
Changes in assumptions	56			19
Accretion expense	39			58
Other - non cash1	160			338
Cash payments, net of sublease income	(316		)	(221		)
Balance at end of period	$	993		$	964

¹ Primarily unfavorable lease liabilities from acquired Rite Aid stores.

Schedule of rental expense

Rental expense, which includes common area maintenance, insurance and taxes, where appropriate, was as follows (in millions):

	2019			2018			2017
Minimum rentals	$	3,622		$	3,447		$	3,259
Contingent rentals	74			68			59
Less: sublease rental income	(66		)	(67		)	(55		)
	$	3,631		$	3,448		$	3,263