Exit and disposal activities (Tables)

3 Months Ended

Nov. 30, 2019

Transformational Cost Management Program

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs

Costs related to exit and disposal activities under the Transformational Cost Management Program, which were primarily recorded in selling, general and administrative expenses included in the three months ended November 30, 2019 and November 30, 2018 were as follows (in millions):

Three months ended November 30, 2019	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	1	$	—	$	—	$	1
Asset impairments	8		3		—		11
Employee severance and business transition costs	34		1		5		40
Information technology transformation and other exit costs	7		4		1		12
Total pre-tax exit and disposal charges	$	49	$	9	$	6	$	64

Three months ended November 30, 2018	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	—	$	4	$	—	$	4
Asset impairments	—		8		—		8
Employee severance and business transition costs	—		13		—		13
Information technology transformation and other exit costs	—		1		1		2
Total pre-tax exit and disposal charges	$	—	$	27	$	1	$	28

Change in Restructuring Liabilities

The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions):

	Lease obligations and other real estate costs		Asset Impairments		Employee severance and business transition costs		Information technology transformation and other exit costs		Total
Balance at August 31, 2019	$	17	$	—	$	57	$	4	$	78
Costs	1		11		40		12		64
Payments	(1)		—		(22)		(4)		(27)
Other - non cash	—		(11)		—		(2)		(14)
Currency translation adjustments	1		—		—		—		1
ASC 842 Leases adoption1	(4)		—		—		—		(4)
Balance at November 30, 2019	$	14	$	—	$	75	$	9	$	98

¹ Represents liability for facility closings and related lease termination charges recorded as an offset to right-of-use assets upon the adoption of ASC 842. Refer to note 4, leases and note 17, new accounting pronouncements for additional information.

Store Optimization Program

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs

Costs related to the Store Optimization Program for the three months ended November 30, 2019 and November 30, 2018 were as follows (in millions):

	Three months ended November 30,
	2019		2018
Lease obligations and other real estate costs	$	3	$	(7)
Employee severance and other exit costs	6		27
Total costs	$	9	$	20

Change in Restructuring Liabilities

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, 2019	$	407	$	22	$	429
Costs	3		6		9
Payments	(9)		(26)		(35)
ASC 842 Leases adoption1	(378)		—		(378)
Balance at November 30, 2019	$	23	$	1	$	24

¹ Represents liability for facility closings and related lease termination charges recorded as an offset to right-of-use assets upon the adoption of ASC 842. Refer to note 4, leases and note 17, new accounting pronouncements for additional information.