Supplemental information

3 Months Ended

Nov. 30, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental information

Supplemental information

Accounts receivable

Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies), clients and members. Trade receivables were $6.1 billion and $6.0 billion at November 30, 2019 and August 31, 2019, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from AmerisourceBergen (see note 16, related parties), were $1.3 billion and $1.2 billion at November 30, 2019 and August 31, 2019, respectively.

Depreciation and amortization

The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions):

	Three months ended November 30,
	2019		2018
Depreciation expense	$	359	$	356
Intangible asset and other amortization	118		134
Total depreciation and amortization expense	$	477	$	490

Accumulated depreciation and amortization on property, plant and equipment was $11.6 billion at November 30, 2019 and $11.3 billion at August 31, 2019.

Restricted cash

The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. As of November 30, 2019 and August 31, 2019, the amount of such restricted cash was $189 million and $184 million, respectively, and is reported in other current assets on the Consolidated Condensed Balance Sheets.

The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2019 and August 31, 2019 (in millions):

	November 30, 2019		August 31, 2019
Cash and cash equivalents	$	811	$	1,023
Restricted cash (included in other current assets)	189		184
Cash, cash equivalents and restricted cash	$	1,000	$	1,207

Earnings per share

The dilutive effect of outstanding stock options on earnings per share is calculated using the treasury stock method. Stock options are anti-dilutive and excluded from the earnings per share calculation if the exercise price exceeds the average market price of the common shares. There were 16.7 million outstanding options to purchase common shares that were anti-dilutive and excluded from the first quarter earnings per share calculation as of November 30, 2019 compared to 11.3 million as of November 30, 2018.

Cash dividends declared per common share

Cash dividends per common share declared were as follows:

	Three months ended November 30,
	2019		2018
November	$	0.4575	$	0.4400