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Goodwill and other intangible assets
 9 Months Ended
May 31, 2021
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 the 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 trade name intangibles within the Boots reporting unit exceeded their carrying value amounts ranging from approximately 4% to approximately 31%, except for certain Boots trade name assets impaired during the three months ended May 31, 2020 and pharmacy licenses impairment during the year end August 31, 2019. As of May 31, 2021, the carrying values of goodwill were $1.1 billion and $0.4 billion for the Boots reporting unit and Other international reporting unit, respectively. As of May 31, 2021, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $7.7 billion.

The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions including with respect to 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 the Boots and Other international reporting units.
Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):

Goodwill rollforward:United StatesInternationalWalgreens Boots Alliance, Inc.
August 31, 2020$10,553 $1,460 $12,013 
Acquisitions394 21 416 
Currency translation adjustments— 65 65 
May 31, 2021$10,947 $1,547 $12,493 

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

Intangible assetsMay 31, 2021August 31, 2020
Gross amortizable intangible assets  
Customer relationships and loyalty card holders 1
$3,581 $3,502 
Trade names and trademarks373 348 
Purchasing and payer contracts337 337 
Others2
218 60 
Total gross amortizable intangible assets$4,510 $4,247 
Accumulated amortization  
Customer relationships and loyalty card holders 1
$1,306 $1,089 
Trade names and trademarks226 196 
Purchasing and payer contracts185 95 
Others2
32 26 
Total accumulated amortization1,749 1,406 
Total amortizable intangible assets, net$2,761 $2,841 
Indefinite-lived intangible assets  
Trade names and trademarks$5,526 $5,203 
Pharmacy licenses2,148 2,028 
Total indefinite-lived intangible assets$7,675 $7,231 
Total intangible assets, net$10,435 $10,072 
1Includes purchased prescription files.
2Includes acquired developed technology and non-compete agreements.

Amortization expense for intangible assets was $156 million and $363 million for the three and nine months ended May 31, 2021, respectively, and $94 million and $290 million for the three and nine months ended May 31, 2020, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at May 31, 2021 is as follows (in millions):
 20222023202420252026
Estimated annual amortization expense$439 $336 $317 $289 $262