Supplemental information

9 Months Ended

May 31, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental information

Note 19. Supplemental information

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 $3.9 billion and $4.5 billion at May 31, 2022 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 $1.1 billion at both May 31, 2022 and August 31, 2021.

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 May 31,				Nine months ended May 31,
	2022		2021		2022		2021
Depreciation expense	$	331	$	352	$	1,014	$	1,042
Intangible asset and other amortization	148		156		488		363
Total depreciation and amortization expense	$	478	$	507	$	1,502	$	1,404

Accumulated depreciation and amortization on property, plant and equipment was $13.0 billion at May 31, 2022 and $13.1 billion at August 31, 2021.

Restricted cash

The Company is required to maintain cash deposits with certain banks which consist of cash deposits 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, marketable securities and restricted cash in the Consolidated Condensed Statements of Cash Flows (in millions):

	May 31, 2022		August 31, 2021
Cash and cash equivalents	$	2,285	$	559
Marketable securities	2,173		634
Restricted cash (included in other current assets)	82		77
Cash, cash equivalents, marketable securities and restricted cash	$	4,541	$	1,270

Redeemable non-controlling interest

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

Redeemable non-controlling interest roll forward:	Three months ended May 31, 2022		Nine months ended May 31, 2022
Opening balance	$	812	$	319
Recognition upon acquisition of subsidiary 1	—		2,489
Acquisition of non-controlling interests 2	—		(2,047)
Redemption price adjustments 3	(22)		68
Net loss attributable to redeemable non-controlling interest	(12)		(45)
Currency translation adjustments and other	(3)		(9)
Balance at May 31, 2022	$	775	$	775

1.Nine months ended May 31, 2022, includes, $1.9 billion of redeemable non-controlling interest, representing the maximum purchase price to redeem non-controlling units in VillageMD for cash, and redeemable non-controlling interest in Shields.

2.Nine months ended May 31, 2022, includes, $1.9 billion paid to existing shareholders of VillageMD as part of the fully subscribed tender offer and the acquisition of the remaining 30% non-controlling equity interest in the pharmaceutical wholesale business in Germany.

3.Remeasurement of non-controlling interests, probable of redemption but not currently redeemable, to their redemption value, is recorded to Paid in capital in the Consolidated Condensed Balance Sheets.

See Note 3. Acquisitions and other investments for further information.

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 17.4 million and 17.2 million weighted outstanding options to purchase common shares that were anti-dilutive and excluded from the earnings per share calculation for the three and nine months ending May 31, 2022, compared to 15.9 million and 17.1 million for the three and nine months ending May 31, 2021, respectively.

Cash dividends declared per common share

Cash dividends per common share declared were as follows:

Quarter ended	2022		2021
November	$	0.4775	$	0.4675
February	$	0.4775	$	0.4675
May	$	0.4775	$	0.4675
Total	$	1.4325	$	1.4025