XML 56 R13.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and other intangible assets
 3 Months Ended
Nov. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and other intangible assets Goodwill and other intangible assets
Goodwill and indefinite-lived intangible assets are evaluated for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value. During the three months ended November 30, 2019, the Company completed quantitative impairment analysis for goodwill related to the Boots reporting unit within the Retail Pharmacy International division. Based on this analysis, the fair value of Boots reporting unit is in excess of its carrying value by approximately 4%, as compared to approximately 9% based on the June 1, 2019 valuation date. The Company will continue to monitor industry trends, market trends and the impact it may have on the Boots reporting unit. The determination of the fair value of the reporting units requires us to make significant estimates and assumptions. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of any goodwill impairment charge, or both. These estimates can be affected by a number of factors including, but not limited to, general economic conditions, availability of market information as well as our profitability.

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):
 Retail Pharmacy USARetail Pharmacy InternationalPharmaceutical WholesaleWalgreens Boots Alliance, Inc.
August 31, 2019$10,491  $3,179  $2,890  $16,560  
Acquisitions8  —  —  8  
Currency translation adjustments—  110  122  232  
November 30, 2019$10,500  $3,289  $3,012  $16,800  

The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):
 November 30, 2019August 31, 2019
Gross amortizable intangible assets  
Customer relationships and loyalty card holders1
$4,391  $4,290  
Favorable lease interests and non-compete agreements2
57  654  
Trade names and trademarks473  461  
Purchasing and payer contracts373  382  
Total gross amortizable intangible assets5,294  5,787  
Accumulated amortization  
Customer relationships and loyalty card holders1
$1,364  $1,262  
Favorable lease interests and non-compete agreements2
27  410  
Trade names and trademarks264  250  
Purchasing and payer contracts97  99  
Total accumulated amortization1,753  2,021  
Total amortizable intangible assets, net$3,541  $3,766  
Indefinite-lived intangible assets  
Trade names and trademarks$5,529  $5,232  
Pharmacy licenses1,985  1,878  
Total indefinite-lived intangible assets$7,514  $7,110  
Total intangible assets, net$11,055  $10,876  
1 Includes purchased prescription files.
2 Transferred favorable lease interest to right-of-use assets upon the adoption of ASC 842. Refer to note 17, new accounting pronouncements for additional information.

Amortization expense for intangible assets was $118 million and $134 million for the three months ended November 30, 2019 and 2018, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at November 30, 2019 is as follows (in millions):
 20212022202320242025
Estimated annual amortization expense$423  $404  $371  $352  $328