Supplemental information

6 Months Ended

Feb. 29, 2020

Supplemental Cash Flow Elements [Abstract]

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 $6.3 billion and $6.0 billion at February 29, 2020 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 February 29, 2020 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						Six months ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Depreciation expense	$	375	$	360	$	734	$	717
Intangible asset and other amortization	117		139		235		273
Total depreciation and amortization expense	$	492	$	499	$	969	$	990

Accumulated depreciation and amortization on property, plant and equipment was $11.9 billion at February 29, 2020 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 February 29, 2020 and August 31, 2019, the amount of such restricted cash was $196 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 February 29, 2020 and August 31, 2019 (in millions):


	February 29, 2020		August 31, 2019
Cash and cash equivalents	$	792	$	1,023
Restricted cash (included in other current assets)	196		184
Cash, cash equivalents and restricted cash	$	988	$	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 18.7 million outstanding options to purchase common shares that were anti-dilutive and excluded from the second quarter earnings per share calculation as of February 29, 2020 compared to 14.4 million as of February 28, 2019.

Cash dividends declared per common share

Cash dividends per common share declared were as follows:


Quarter ended	2020		2019
November	$	0.4575	$	0.4400
February	0.4575		0.4400


	$	0.92	$	0.88