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Segment reporting
 9 Months Ended
May 31, 2020
Segment Reporting [Abstract]  
Segment reporting Segment reporting
The Company has aligned its operations into three reportable segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s operating segments. The chief operating decision maker uses adjusted operating income to assess segment profitability. The chief operating decision maker does not use total assets by segment to make decisions regarding resources; therefore, the total asset disclosure by segment has not been included.

Retail Pharmacy USA
The Retail Pharmacy USA segment consists of the Walgreens business, which includes the operation of retail drugstores and mail and central specialty pharmacy services. Sales for the segment are principally derived from the sale of prescription drugs and a wide assortment of retail products, including health and wellness, beauty and personal care and consumables and general merchandise.

Retail Pharmacy International
The Retail Pharmacy International segment consists of pharmacy-led health and beauty retail businesses and optical practices. These businesses include Boots branded stores in the United Kingdom, Thailand, Norway, the Republic of Ireland and the Netherlands, Benavides in Mexico and Ahumada in Chile. Sales for the segment are principally derived from the sale of prescription drugs and health and wellness, beauty and personal care and other consumer products.

Pharmaceutical Wholesale
The Pharmaceutical Wholesale segment consists of the Alliance Healthcare pharmaceutical wholesaling and distribution businesses and an equity method investment in AmerisourceBergen. Wholesale operations are located in the United Kingdom, Germany, France, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, Czech Republic and Lithuania. Sales for the segment are principally derived from wholesaling and distribution of a comprehensive offering of brand-name pharmaceuticals (including specialty pharmaceutical products) and generic pharmaceuticals, health and beauty products, home healthcare supplies and equipment and related services to pharmacies and other healthcare providers.

The results of operations for each reportable segment includes procurement benefits and an allocation of corporate-related overhead costs. The “Eliminations” lines contain items not allocable to the reportable segments, as the information is not utilized by the chief operating decision maker to assess segment performance and allocate resources.
The following table reflects results of operations of the Company's reportable segments (in millions):

Three months ended May 31,Nine months ended May 31,
2020201920202019
Sales:
Retail Pharmacy USA$27,357  $26,513  $80,734  $78,491  
Retail Pharmacy International1,903  2,776  7,704  8,759  
Pharmaceutical Wholesale5,899  5,865  17,971  17,311  
Eliminations1
(527) (563) (1,618) (1,649) 
Walgreens Boots Alliance, Inc.$34,631  $34,591  $104,791  $102,912  
Adjusted Operating income:
Retail Pharmacy USA$792  $1,286  $3,215  $4,119  
Retail Pharmacy International(143) 165  133  553  
Pharmaceutical Wholesale271  265  735  710  
Eliminations1
—  1  2  1  
Walgreens Boots Alliance, Inc.$919  $1,717  $4,085  $5,384  

1Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments.


The following table reconciles adjusted operating income to operating income (in millions):

Three months ended May 31,Nine months ended May 31,
2020201920202019
Adjusted operating income$919  $1,717  $4,085  $5,384  
Impairment of goodwill and intangible assets(2,001) —  (2,001) —  
Transformational cost management(315) (86) (524) (265) 
Acquisition-related amortization(112) (127) (348) (373) 
Acquisition-related costs(68) (80) (291) (228) 
LIFO provision(29) (29) (90) (77) 
Store damage and inventory losses1
(75) —  (75) —  
Store optimization(10) (49) (49) (99) 
Adjustments to equity earnings (loss) in AmerisourceBergen105  (137) (47) (191) 
Certain legal and regulatory accruals and settlements—  (7) —  (31) 
Operating income$(1,584) $1,203  $662  $4,120  

1Store damage and inventory losses as a result of looting in the U.S. during May 2020.