Segment reporting (Tables)

12 Months Ended

Aug. 31, 2020

Reconciliation of revenue from segments to consolidated

The following table reflects results of operations of the Company's reportable segments (in millions):


	For the years ending August 31,
	2020		2019		2018
Sales:
Retail Pharmacy USA	$	107,701	$	104,532	$	98,392
Retail Pharmacy International	10,004		11,462		12,281
Pharmaceutical Wholesale	23,958		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 International	130		747		929
Pharmaceutical Wholesale	980		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 International	397		429		419
Pharmaceutical Wholesale	145		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 International	239		275		241
Pharmaceutical Wholesale	83		104		104
Walgreens Boots Alliance, Inc.	$	1,374	$	1,702	$	1,367

Reconciliation of operating profit (loss) from segments to consolidated

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


	For the years ending August 31,
	2020		2019		2018
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.

Geographic data for net sales

Geographic data for sales is as follows (in millions):


	2020		2019		2018
United States	$	107,701	$	104,532	$	98,392
United Kingdom	12,099		12,729		13,297
Europe (excluding the United Kingdom)	17,270		17,009		17,594
Other	2,467		2,597		2,254
Sales	$	139,537	$	136,866	$	131,537

Geographic data for long-lived assets

Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):


	2020		2019
United States	$	10,344	$	10,598
United Kingdom	2,294		2,162
Europe (excluding the United Kingdom)	540		521
Other	164		197
Total long-lived assets	$	13,342	$	13,478