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Goodwill and other intangible assets
 3 Months Ended
Nov. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and other intangible assets Goodwill and other intangible assets
Goodwill and indefinite-lived intangible assets are evaluated for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value.

Based on the analysis completed during fiscal 2020, as of June 1, 2020 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 4% to approximately 239% excluding Boots reporting unit for which the excess of fair value over carrying amount was nominal due to an impairment charge recognized during the three months ended May 31, 2020. Other international reporting unit's fair value was in excess of its carrying value by approximately 4%. The fair values of the indefinite-lived tradename intangibles within the Boots reporting unit exceeded their carrying value amounts ranging from approximately 4% to approximately 31%, except for certain Boots tradename assets impaired during the three months ended May 31, 2020 and pharmacy licenses impaired during the year ended August 31, 2019. As of November 30, 2020, the carrying values of goodwill were $1.1 billion and $0.6 billion for Boots reporting unit and Other international reporting unit, respectively. As of November 30, 2020, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $7.3 billion.

The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions including the business and financial performance of the Company’s reporting units, as well as how such performance may be impacted by COVID-19.

Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions, including the impact of COVID-19, could have a significant impact on either
the fair value of the reporting units and indefinite-lived intangibles, the amount of any goodwill and indefinite-lived intangible impairment charges, or both. These estimates can be affected by a number of factors including, but not limited to, the impact of COVID-19, its severity, duration and its impact on global economies, general economic conditions as well as our profitability. The Company will continue to monitor these potential impacts, including the impact of COVID-19 and economic, industry and market trends and the impact these may have on Boots and Other international reporting units.

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):
Goodwill rollforward:Retail Pharmacy USARetail Pharmacy InternationalPharmaceutical WholesaleWalgreens Boots Alliance, Inc.
August 31, 2020$10,553 $1,593 $3,122 $15,268 
Acquisitions1 — 3 4 
Currency translation adjustments— 18 9 27 
November 30, 2020$10,554 $1,612 $3,133 $15,299 

The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):

Intangible assetsNovember 30, 2020August 31, 2020
Gross amortizable intangible assets  
Customer relationships and loyalty card holders1
$4,409 $4,389 
Trade names and trademarks419 410 
Purchasing and payer contracts337 337 
Non-compete agreements and others61 61 
Total gross amortizable intangible assets5,226 5,197 
Accumulated amortization  
Customer relationships and loyalty card holders1
$1,603 $1,511 
Trade names and trademarks242 228 
Purchasing and payer contracts101 95 
Non-compete agreements and others26 26 
Total accumulated amortization1,972 1,860 
Total amortizable intangible assets, net$3,254 $3,337 
Indefinite-lived intangible assets  
Trade names and trademarks$5,410 $5,388 
Pharmacy licenses2,042 2,028 
Total indefinite-lived intangible assets$7,452 $7,416 
Total intangible assets, net$10,706 $10,753 
1Includes purchased prescription files.

Amortization expense for intangible assets was $115 million and $118 million for the three months ended November 30, 2020 and November 30, 2019, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at November 30, 2020 is as follows (in millions):
 20222023202420252026
Estimated annual amortization expense$434 $400 $381 $348 $328