Discontinued operations

9 Months Ended

May 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

Note 2. 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 August 31, 2021, Other current assets included a $98 million receivable for purchase price consideration due from

AmerisourceBergen that was subject to change upon the finalization of net working capital adjustments. During the three months ended February 28, 2022, the Company reduced the receivable by $38 million with a corresponding charge in Other income within the Consolidated Condensed Statements of Earnings upon finalizing these adjustments with AmerisourceBergen.

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

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

	Three months ended May 31, 2021		Nine months ended May 31, 2021
Sales	$	5,500	$	16,070
Cost of sales	4,956		14,486
Gross profit	544		1,584
Selling, general and administrative expense	394		1,211
Operating income from discontinued operations	150		373
Other expense	(2)		(7)
Interest expense, net	(13)		(23)
Earnings before income tax – discontinued operations	135		342
Income tax provision	44		68
Post tax earnings from other equity method investments	4		15
Net earnings from discontinued operations	$	95	$	289

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

	Three months ended May 31, 2021		Nine months ended May 31, 2021
Sales	$	471	$	1,385

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

	Nine months ended May 31, 2021
Cash used for operating activities - discontinued operations	$	(132)
Cash used for investing activities - discontinued operations	$	(58)

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