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Segment reporting
9 Months Ended
May 31, 2021
Segment Reporting [Abstract]  
Segment reporting Segment reporting
On January 6, 2021, the Company entered into a Share Purchase Agreement with AmerisourceBergen. Pursuant to the terms and subject to the conditions set forth in the Share Purchase Agreement, AmerisourceBergen agreed to purchase the majority of the Company's Alliance Healthcare business as well as a portion of the Company’s retail pharmacy international businesses in Europe. The majority of the Disposal Group was previously included in the Pharmaceutical Wholesale segment. Effective as of the second quarter of fiscal year 2021, the Company eliminated the Pharmaceutical Wholesale segment and is aligned into two reportable segments: United States and International. 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.

United States
The Company's United States segment includes the Walgreens business which includes the operations of retail drugstores, health and wellness services, and mail and central specialty pharmacy services, and its equity method investment in AmerisourceBergen. 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, personal care and consumables and general merchandise.

International
The Company's International segment consists of pharmacy-led health and beauty retail businesses outside the U.S. and pharmaceutical wholesaling and distribution business in Germany. Pharmacy-led health and beauty retail businesses include
Boots branded stores in the UK, the Republic of Ireland and Thailand, the Benavides brand in Mexico and the Ahumada brand in Chile. Sales for these businesses are principally derived from the sale of prescription drugs and health and wellness, beauty, personal care and other consumer products.

The results of operations for reportable segments include procurement benefits. Corporate-related overhead costs are not allocated to reportable segments and are reported in the “Corporate and Other”.

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,
2021202020212020
Sales:
United States$28,743 $27,357 $83,250 $80,734 
International5,288 3,008 14,998 10,878 
Walgreens Boots Alliance, Inc.$34,030 $30,364 $98,247 $91,612 
Adjusted Operating income:
United States$1,471 $979 $3,789 $3,704 
International94 (135)326 155 
Corporate and Other(105)(46)(233)(135)
Walgreens Boots Alliance, Inc.$1,459 $798 $3,881 $3,724 

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

Three months ended May 31,Nine months ended May 31,
2021202020212020
Adjusted operating income$1,459 $798 $3,881 $3,724 
Adjustments to equity earnings (loss) in AmerisourceBergen(48)105 (1,575)(47)
Transformational cost management(60)(310)(338)(508)
Acquisition-related amortization(158)(94)(367)(290)
Certain legal and regulatory accruals and settlements— — (60)— 
LIFO provision(51)(29)(85)(90)
Acquisition-related costs(9)(68)(25)(291)
Impairment of goodwill and intangible assets— (2,001)— (2,001)
Store optimization— (10)— (49)
Store damage and inventory losses — (75)— (75)
Operating income (loss)$1,134 $(1,683)$1,432 $374