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Segment reporting
12 Months Ended
Aug. 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 ended August 31, 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 Company's Walgreens business which includes the operations of retail drugstores, health and wellness services, and mail and central specialty pharmacy services, and the Company's 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):
For the years ending August 31,
202120202019
Sales:
United States$112,005 $107,701 $104,532 
International20,505 14,281 15,542 
Walgreens Boots Alliance, Inc.$132,509 $121,982 $120,074 
Adjusted Operating income:
United States$5,019 $4,761 $5,873 
International466 157 759 
Corporate and Other(368)(187)(152)
Walgreens Boots Alliance, Inc.$5,117 $4,730 $6,481 
Depreciation and amortization:
United States$1,513 $1,376 $1,454 
International399 400 433 
Corporate and Other11 10 
Walgreens Boots Alliance, Inc.$1,923 $1,786 $1,894 
Capital expenditures:
United States$1,030 $1,040 $1,318 
International243 235 272 
Corporate and Other39 12 
Walgreens Boots Alliance, Inc.$1,312 $1,287 $1,598 

The following table reconciles adjusted operating income to operating income (in millions):
For the years ending August 31,
202120202019
Adjusted operating income$5,117 $4,730 $6,481 
Adjustments to equity earnings (loss) in AmerisourceBergen(1,645)(97)(233)
Transformational cost management (417)(719)(327)
Acquisition-related amortization(523)(384)(416)
Certain legal and regulatory accruals and settlements(75)— (31)
LIFO provision (13)(95)(136)
Acquisition-related costs(54)(315)(303)
Impairment of goodwill and intangible assets(49)(2,016)(73)
Store optimization— (53)(196)
Store damage and inventory losses— (68)— 
Operating income$2,342 $982 $4,766 

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 United States segment, three third-party payers accounted for approximately 33%, 35%, and 35% of the Company's consolidated sales in fiscal 2021, fiscal 2020, and fiscal 2019 respectively.
Geographic data for sales is as follows (in millions):
 202120202019
United States$112,005 $107,701 $104,532 
United Kingdom8,298 7,830 8,947 
Germany10,472 4,876 4,713 
Other1,734 1,575 1,882 
Sales$132,509 $121,982 $120,074 

Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):
 20212020
United States$9,665 $10,344 
United Kingdom2,205 2,203 
Other377 250 
Total long-lived assets$12,247 $12,796