Debt (Tables)

12 Months Ended

Aug. 31, 2021

Debt Disclosure [Abstract]

Schedule of short-term borrowings

Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted):

	August 31, 2021		August 31, 2020
Short-term debt
Commercial paper	$	—	$	1,517
Credit facilities 6	—		1,071
£700 million note issuance 1,2
2.875% unsecured Pound sterling notes due 2020	—		533
$8 billion note issuance 1
3.300% unsecured notes due 2021 3	1,250		—
Other 4	56		144
Total short-term debt	$	1,305	$	3,265

Schedule of long-term debt

Long-term debt
$1.5 billion note issuance 1
3.200% unsecured notes due 2030	$	497	$	497
4.100% unsecured notes due 2050 6	792		990
$6 billion note issuance 1
3.450% unsecured notes due 2026 6	1,442		1,891
4.650% unsecured notes due 2046 6	318		591
$8 billion note issuance 1
3.300% unsecured notes due 2021	—		1,248
3.800% unsecured notes due 2024 6	1,154		1,993
4.500% unsecured notes due 2034 6	301		496
4.800% unsecured notes due 2044 6	868		1,493
£700 million note issuance, 1
3.600% unsecured Pound sterling notes due 2025	408		398
€750 million note issuance 1
2.125% unsecured Euro notes due 2026	873		891
$4 billion note issuance 5
3.100% unsecured notes due 2022 6	731		1,198
4.400% unsecured notes due 2042 6	263		493
Other 4	29		24
Total long-term debt, less current portion	$	7,675	$	12,203

1Notes are unsubordinated debt obligations of the Company and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company from time to time outstanding.

2On October 20, 2020, the Company redeemed in full the £400 million aggregate principal amount outstanding of its 2.875% unsecured Pound sterling notes due 2020 issued by the Company on November 20, 2014.

3On August 17, 2021, the Company provided notice to the Trustee and the Holders of its 3.300% notes due 2021 issued by the Company on November 18, 2014 that it will redeem in full the $1.25 billion aggregate principal amount outstanding of the notes on September 18, 2021. These notes were redeemed in full as of that date.

4Other debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies.

5Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, the Company fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of the Company and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of the Company.

6On April 26, 2021, the Company entered into a cash tender offer to partially purchase and retire $3.3 billion of long term U.S. dollar denominated notes with a weighted average interest rate of 4.02%, using funds drawn down from the $3.8 billion April 2021 Credit Agreement (as defined below). The Company recognized a loss of $414 million related to the early extinguishment of debt, within Interest expense, which includes $386 million of redemption premium paid in cash. The cash payments related to the early extinguishment of debt are classified as cash outflows from financing activities in the consolidated statement of cash flows.

Schedule of future maturities of long-term debt

At August 31, 2021, the future maturities of short-term and long-term debt, excluding debt discounts and issuance costs and finance lease obligations (See Note 5 Leases, for the future lease payments), consisted of the following (in millions):

	Amount
2022	$	1,305
2023	733
2024	2
2025	1,163
2026	1,858
Later	3,957
Total estimated future maturities	$	9,018