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Goodwill and other intangible assets
 12 Months Ended
Aug. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and other intangible assets 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, 2022 valuation date, the fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 7% to approximately 198%. The Boots reporting unit's fair value was in excess of its carrying value by approximately 7%, compared to 18% as of June 1, 2021. As of August 31, 2022, the carrying value of goodwill within the Boots reporting unit was $906 million.

In the fourth quarter of fiscal 2022, the Company recorded, within Selling, general and administrative expenses, an impairment loss of $783 million, related to indefinite-lived pharmacy license and trade name intangible assets in the Boots reporting unit, part of the International segment. Due to the impairment recognized in fiscal 2022, the fair values of indefinite-lived intangibles within the Boots reporting unit equate to their carrying values. As of August 31, 2022 and 2021, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $5.5 billion and $7.3 billion, respectively.

In fiscal 2021, the Company recorded, within Selling, general and administrative expenses, an impairment loss in the International segment of $49 million on certain indefinite-lived trade name assets of Boots.

In fiscal 2020, the Company completed a quantitative impairment analysis for goodwill and certain indefinite-lived intangible assets related to its two reporting units within the International segment, Boots and International Other, as a result of the significant impact of COVID-19 on their financial performance. Based on this analysis, the Company recorded impairment charges of $1.7 billion on Boots’ goodwill and $294 million on certain indefinite lived trade name assets of Boots, in the International segment, within Selling, general and administrative expenses.

Indefinite-lived intangible assets fair values are estimated using the relief from royalty method and excess earnings method of the income approach. 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. 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, 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 and economic, industry and market trends, and the impact these may have on the reporting units.

Definite-lived intangible assets are evaluated for impairment whenever events or circumstances indicate that a certain asset or asset group may be impaired. In fiscal 2020, the Company evaluated certain definite-lived intangibles for impairment resulting in an impairment charge of $47 million. No impairment was recorded for definite-lived intangibles in fiscal 2022 or 2021.
Changes in the carrying amount of goodwill by reportable segment consist of the following activity (in millions):
Goodwill roll forward:U.S. Retail PharmacyInternationalU.S. HealthcareWalgreens Boots Alliance, Inc.
August 31, 2020$10,553 $1,460 $— $12,013 
Acquisitions 1
394 21 — 414 
Currency translation adjustments— (7)— (7)
August 31, 2021$10,947 $1,474 $— $12,421 
Acquisitions 1
$— $— $10,040 $10,040 
Currency translation adjustments— (181)— (181)
August 31, 2022$10,947 $1,293 $10,040 $22,280 

1    In fiscal 2021, the Company acquired controlling equity interests in Innovation Associates, Inc. and a joint venture with McKesson which resulted in an increase to goodwill of $394 million and $21 million, respectively. In fiscal 2022, the Company acquired controlling equity interests in VillageMD, Shields and CareCentrix which resulted in an increase to goodwill of $8.0 billion, $1.5 billion and $454 million, respectively.


The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):
Intangible assets:August 31, 2022August 31, 2021
Gross amortizable intangible assets  
Customer relationships and loyalty card holders 1
$4,619 $3,522 
Primary care provider network1,247 — 
Trade names and trademarks760 361 
Developed technology 2
436 156 
Purchasing and payor contracts15 317 
Others 2
78 65 
Total gross amortizable intangible assets$7,155 $4,421 
Accumulated amortization 
Customer relationships and loyalty card holders 1
$1,548 $1,335 
Primary care provider network64 — 
Trade names and trademarks246 226 
Developed technology 2
56 8 
Purchasing and payor contracts4 227 
Others 2
35 29 
Total accumulated amortization1,953 1,826 
Total amortizable intangible assets, net$5,202 $2,595 
Indefinite-lived intangible assets  
Trade names and trademarks$4,319 $5,276 
Pharmacy licenses1,209 2,066 
Total indefinite-lived intangible assets$5,528 $7,342 
Total intangible assets, net$10,730 $9,936 
1Includes purchased prescription files.
2Includes certain reclassifications to conform to current period presentation.

Amortization expense for intangible assets was $639 million, $523 million and $384 million in fiscal 2022, 2021 and 2020, respectively.
Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at August 31, 2022 is as follows (in millions):
 20232024202520262027
Estimated annual amortization expense$610 $591 $558 $540 $478