Discontinued operations

3 Months Ended

Nov. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

Discontinued operations

On June 1, 2021, the Company completed the sale of Alliance Healthcare, for total consideration of $6.9 billion, which included cash consideration of $6.7 billion, subject to net working capital and net cash adjustments and 2 million shares of AmerisourceBergen common stock.

As of November 30, 2021, Other current assets include a $98 million receivable for purchase price consideration due from AmerisourceBergen that is subject to change upon the finalization of net working capital adjustments.

The operating results of the Disposal Group are reported as discontinued operations as the disposition reflected a strategic shift that has, or will have, a major effect on the Company’s operations and financial results.

Results of discontinued operations were as follows (in millions):

	Three months ended November 30, 2020
Sales	$	5,327
Cost of sales	4,818
Gross profit	509
Selling, general and administrative expense	415
Operating income from discontinued operations	94
Other expense	(2)
Interest expense, net	(4)
Earnings before income tax – discontinued operations	88
Income tax provision	8
Post tax earnings from other equity method investments	7
Net earnings from discontinued operations	$	87

Sales from the Disposal Group to the Company's continuing operations are not eliminated and aggregate to (in millions):

	Three months ended November 30, 2020
Sales	$	458

Cash flows from operating and investing activities for discontinued operations are (in millions):

	Three months ended November 30, 2020
Cash used in operating activities - discontinued operations	$	(45)
Cash used for investing activities - discontinued operations	(19)

See Note 17 Related parties, to the Consolidated Condensed Financial Statements for more information on the Company's transactions and continuing involvement with AmerisourceBergen.