Supplemental information

3 Months Ended

Nov. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Accounts receivable

Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies). Trade receivables were $4.6 billion and $4.5 billion at November 30, 2021 and August 31, 2021, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from AmerisourceBergen (see Note 17 Related parties), were $1.3 billion and $1.1 billion at November 30, 2021 and August 31, 2021, respectively.

Depreciation and amortization

The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions):


	Three months ended November 30,
	2021		2020
Depreciation expense	$	335	$	342
Intangible asset and other amortization	165		95
Total depreciation and amortization expense	$	500	$	437

Accumulated depreciation and amortization on property, plant and equipment was $13.3 billion at November 30, 2021 and $13.1 billion at August 31, 2021.

Restricted cash

The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows (in millions):


	November 30, 2021		August 31, 2021
Cash and cash equivalents - continuing operations	$	4,135	$	1,193

Restricted cash - continuing operations (included in other current assets)	133		77

Cash, cash equivalents and restricted cash	$	4,268	$	1,270

Redeemable noncontrolling interest

The redeemable noncontrolling interest balance as of November 30, 2021 was $2,787 million increasing primarily due to acquisitions during the three months ended November 30, 2021. See Note 3 Acquisitions for further information.

The following represents a roll forward of the redeemable non-controlling interest in the Consolidated Condensed Balance Sheets (in millions):


Redeemable noncontrolling interest roll forward:	Walgreens Boots Alliance, Inc.
August 31, 2021	$	319
Acquisitions 1	2,489
Net (loss)	(21)
Redemption value adjustment	7
Currency translation adjustments and other	(8)
November 30, 2021	$	2,787

1 Includes $1.9 billion of redeemable non-controlling interest representing the maximum purchase price to redeem non-controlling units in VillageMD for cash. On November 24, 2021, VillageMD commenced a tender offer to purchase up to $1.9 billion of units in VillageMD for cash. As of November 30, 2021, the Company recorded the $1.9 billion as redeemable non-controlling interest. The tender offer was fully subscribed and settled on December 28, 2021. The tender offer was funded by cash proceeds provided to VillageMD pursuant to the Unit Purchase Agreement.

Earnings per share

The dilutive effect of outstanding stock options on earnings per share is calculated using the treasury stock method. Stock options are anti-dilutive and excluded from the earnings per share calculation if the exercise price exceeds the average market price of the common shares. There were 16.1 million weighted outstanding options to purchase common shares that were anti-dilutive and excluded from the first quarter earnings per share calculation as of November 30, 2021 compared to 18.5 million as of November 30, 2020.

Due to the anti-dilutive effect resulting from the reported net loss for the three months ended November 30, 2020, the incremental impact of potentially dilutive securities were omitted from the calculation of weighted-average common shares outstanding.

Cash dividends declared per common share

Cash dividends per common share declared were as follows:


Quarter ended	2021		2020
November	$	0.4775	$	0.4675