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Segment reporting
 12 Months Ended
Aug. 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, health and wellness services, 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” column contains 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):

For the years ending August 31,
202020192018
Sales:
Retail Pharmacy USA$107,701 $104,532 $98,392 
Retail Pharmacy International10,004 11,462 12,281 
Pharmaceutical Wholesale23,958 23,053 23,006 
Eliminations1
(2,126)(2,180)(2,142)
Walgreens Boots Alliance, Inc.$139,537 $136,866 $131,537 
Adjusted Operating income:2
Retail Pharmacy USA$4,099 $5,255 $5,814 
Retail Pharmacy International130 747 929 
Pharmaceutical Wholesale980 939 936 
Eliminations1
2 1 — 
Walgreens Boots Alliance, Inc.$5,211 $6,942 $7,679 
Depreciation and amortization:
Retail Pharmacy USA$1,385 $1,459 $1,196 
Retail Pharmacy International397 429 419 
Pharmaceutical Wholesale145 150 155 
Walgreens Boots Alliance, Inc.$1,927 $2,038 $1,770 
Capital expenditures:
Retail Pharmacy USA$1,052 $1,323 $1,022 
Retail Pharmacy International239 275 241 
Pharmaceutical Wholesale83 104 104 
Walgreens Boots Alliance, Inc.$1,374 $1,702 $1,367 

The following table reconciles adjusted operating income to operating income (in millions):
For the years ending August 31,
202020192018
Adjusted operating income2
$5,211 $6,942 $7,679 
Impairment of goodwill and intangible assets(2,016)(73)— 
Transformational cost management(793)(477)— 
Acquisition-related amortization3
(461)(493)(448)
Acquisition-related costs(316)(303)(231)
Adjustments to equity earnings in AmerisourceBergen(97)(233)(175)
LIFO provision(95)(136)(84)
Store damage and inventory losses4
(68)— — 
Store optimization(53)(196)(100)
Certain legal and regulatory accruals and settlements— (31)(284)
Hurricane-related costs— — (83)
Asset recovery— — 15 
Operating income2
$1,312 $4,998 $6,289 
1Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments.
2The Company adopted ASU 2017-07 Topic 715 as of September 1, 2018 (fiscal 2019) on a retrospective basis. The impact on our previously reported net periodic costs as a result of the retrospective adoption of this standard results in a
reclassification from selling, general and administrative expenses to other income (expense) of $125 million for the fiscal year ended August 31, 2018.
3Excludes impairment of $73 million for indefinite-lived pharmacy licenses intangible asset recorded during the three months ended August 31, 2019, in the Boots reporting unit within the Retail Pharmacy International segment, which has been presented as "Impairment of goodwill and intangible asset" line.
4Store damage and inventory losses as a result of looting in the U.S., net of insurance recoveries.

No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Substantially all of our retail pharmacy sales are to customers covered by third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) that agree to pay for all or a portion of a customer's eligible prescription purchases. In the Retail Pharmacy USA segment, one third-party payer accounted for approximately 11% of the consolidated sales in fiscal 2020, two third-party payers, in the aggregate accounted for approximately 22% of the Company’s consolidated sales in fiscal 2019 and three third-party payers, in the aggregate accounted for approximately 32% of the Company’s consolidated sales in fiscal 2018.

Geographic data for sales is as follows (in millions):
 202020192018
United States$107,701 $104,532 $98,392 
United Kingdom12,099 12,729 13,297 
Europe (excluding the United Kingdom)17,270 17,009 17,594 
Other2,467 2,597 2,254 
Sales$139,537 $136,866 $131,537 

Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):
 20202019
United States$10,344 $10,598 
United Kingdom2,294 2,162 
Europe (excluding the United Kingdom)540 521 
Other164 197 
Total long-lived assets$13,342 $13,478