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Goodwill and other intangible assets
 9 Months Ended
May 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and other intangible assets
Note 7. Goodwill and other intangible assets

Goodwill and indefinite-lived intangible assets are evaluated for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or intangible asset below its carrying value.

Based on the analysis completed as of the June 1, 2021 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 18% to approximately 195%. The Boots reporting unit's fair value was in excess of its carrying value by approximately 18%, compared to a nominal amount as of June 1, 2020. The Other international reporting unit's fair value was in excess of its carrying value by approximately 29%. As of May 31, 2022 and August 31, 2021, the carrying value of goodwill for the Boots reporting unit was $956 million and $1.1 billion, respectively. As of May 31, 2022 and August 31, 2021, the carrying value of goodwill for the Other international reporting unit was $372 million and $381 million, respectively.

As of June 1, 2021, the fair values of indefinite-lived intangibles within the Boots reporting unit exceeded their carrying value amounts ranging from approximately 5% to approximately 27%. As of May 31, 2022 and August 31, 2021, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $6.7 billion and $7.3 billion, respectively.

The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions with respect to the business and financial performance of the Company’s reporting units, as well as how such performance may be impacted by COVID-19. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions, including the impact of COVID-19, could have a significant impact on either the fair value of the reporting units and indefinite-lived intangibles, the amount of any goodwill and indefinite-lived intangible impairment charges, or both. These estimates can be affected by a number of factors including, but not limited to, the impact of COVID-19, its severity, duration and its impact on global economies, general economic conditions, as well as our profitability. The Company will continue to monitor these potential impacts, including the impact of COVID-19 and economic, industry and market trends, and the impact these may have on the Boots and Other international reporting units.

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):
Goodwill roll forward:United StatesInternationalWalgreens HealthWalgreens Boots Alliance, Inc.
August 31, 2021$10,947 $1,474 $— $12,421 
Acquisitions— — 9,586 9,586 
Currency translation adjustments— (106)— (106)
May 31, 2022$10,947 $1,368 $9,586 $21,901 
The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):
Intangible assetsMay 31, 2022August 31, 2021
Gross amortizable intangible assets  
Customer relationships and loyalty card holders 1
$4,364 $3,522 
Primary care provider network1,244 — 
Trade names and trademarks685 361 
Developed technology 2
355 156 
Purchasing and payor contracts15 317 
Others 2
78 65 
Total gross amortizable intangible assets$6,741 $4,421 
Accumulated amortization  
Customer relationships and loyalty card holders 1
$1,487 $1,335 
Primary care provider network43 — 
Trade names and trademarks244 226 
Developed technology 2
43 8 
Purchasing and payor contracts3 227 
Others 2
33 29 
Total accumulated amortization1,853 1,826 
Total amortizable intangible assets, net$4,888 $2,595 
Indefinite-lived intangible assets  
Trade names and trademarks$4,835 $5,276 
Pharmacy licenses1,860 2,066 
Total indefinite-lived intangible assets$6,695 $7,342 
Total intangible assets, net$11,583 $9,936 
1Includes purchased prescription files.
2Includes certain reclassifications to conform to the current period presentation.

Amortization expense for intangible assets was $148 million and $488 million for the three and nine months ended May 31, 2022, respectively, and $156 million and $363 million for the three and nine months ended May 31, 2021, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at May 31, 2022 is as follows (in millions):
 2022 (Remaining period)20232024202520262027
Estimated annual amortization expense$151 $571 $551 $518 $497 $434