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Segment reporting
 12 Months Ended
Aug. 31, 2022
Segment Reporting [Abstract]  
Segment reporting Segment reporting
In conjunction with the launch of its new consumer-centric healthcare strategy, in fiscal 2022, the Company announced the creation of a new operating segment Walgreens Health. As a result, beginning in fiscal 2022, the Company aligned to three reportable segments: United States, International and Walgreens Health.

In the fourth quarter of fiscal 2022, the Company changed the name of two reportable segments to better align with the Company’s business activities, structure and strategy. The “United States” segment was renamed to “U.S. Retail Pharmacy” and the “Walgreens Health” segment was renamed to “U.S. Healthcare”. The segment name changes did not result in any change to the composition of the segments and therefore no change to the historical results of segment operations. The information for these segments for all periods included in these consolidated financial statements has been presented using the new names..

As a result of the change, the Company is now aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare.

The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s operating segments. The chief operating decision maker uses adjusted operating income to assess segment profitability. The chief operating decision maker does not use total assets by segment to make decisions regarding resources; therefore, the total asset disclosure by segment has not been included.

U.S. Retail Pharmacy
The Company's U.S. Retail Pharmacy segment includes the Walgreens business which is comprised of the operations of retail drugstores, health and wellness services, specialty and home delivery pharmacy services, and its equity method investment in AmerisourceBergen. Sales for the segment are principally derived from the sale of prescription drugs and a wide assortment of retail products, including health and wellness, beauty, personal care and consumables and general merchandise.

International
The Company's International segment consists of pharmacy-led health and beauty retail businesses outside the U.S. and a pharmaceutical wholesaling and distribution business in Germany. Pharmacy-led health and beauty retail businesses include Boots branded stores in the UK, the Republic of Ireland and Thailand, the Benavides brand in Mexico and the Ahumada brand in Chile. Sales for these businesses are principally derived from the sale of prescription drugs and health and wellness, beauty, personal care and other consumer products.

U.S. Healthcare
The Company’s U.S. Healthcare segment, created at the beginning of fiscal 2022, is a consumer-centric, technology-enabled healthcare business that engages consumers through a personalized, omni-channel experience across the care journey. The U.S. Healthcare segment delivers improved health outcomes and lower costs for payors and providers by delivering care through owned and partnered assets.

The U.S. Healthcare segment currently consists of a majority position in VillageMD, a leading national provider of value-based primary care services; a majority position in Shields, a specialty pharmacy integrator and accelerator for hospitals; a majority position in CareCentrix, a leading player in the post-acute and home care management sectors, and the Walgreens Health organic business that contracts with payors and providers to deliver clinical healthcare services to their members and members’ caregivers through both digital and physical channels.

Selling, general and administrative costs for the U.S. Healthcare segment for fiscal 2021 have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation.

The results of operations for reportable segments include procurement benefits. Corporate-related overhead costs are not allocated to reportable segments and are reported in “Corporate and Other”.
The following table reflects results of operations of the Company's reportable segments (in millions):
202220212020
Sales:
U.S. Retail Pharmacy$109,078 $112,005 $107,701 
International21,830 20,505 14,281 
U.S. Healthcare1,795 — — 
Walgreens Boots Alliance, Inc.$132,703 $132,509 $121,982 
Adjusted operating income (Non-GAAP measure):
U.S. Retail Pharmacy$5,029 $5,019 $4,761 
International726 466 157 
U.S. Healthcare(370)(57)— 
Corporate and Other
(251)(311)(187)
Walgreens Boots Alliance, Inc.$5,133 $5,117 $4,730 
Depreciation and amortization:
U.S. Retail Pharmacy$1,415 $1,513 $1,376 
International355 399 400 
U.S. Healthcare211 1 — 
Corporate and Other9 10 10 
Walgreens Boots Alliance, Inc.$1,990 $1,923 $1,786 
Capital expenditures:
U.S. Retail Pharmacy$1,207 $1,030 $1,040 
International295 243 235 
U.S. Healthcare218 34 — 
Corporate and Other15 5 12 
Walgreens Boots Alliance, Inc.$1,734 $1,312 $1,287 

The following table reconciles adjusted operating income to operating income (in millions):
202220212020
Adjusted operating income (Non-GAAP measure):$5,133 $5,117 $4,730 
Acquisition-related amortization(855)(523)(384)
Impairment of goodwill and intangible assets(783)(49)(2,016)
Certain legal and regulatory accruals and settlements(768)(75)— 
Transformational cost management (763)(417)(719)
Acquisition-related costs(223)(54)(315)
Adjustments to equity earnings (loss) in AmerisourceBergen(218)(1,645)(97)
LIFO provision (135)(13)(95)
Store optimization— — (53)
Store damage and inventory losses— — (68)
Operating income (GAAP measure)$1,387 $2,342 $982 
No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Substantially all of our retail pharmacy sales are to customers covered by third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies) that agree to pay for all or a portion of a customer's eligible prescription purchases. In the U.S. Retail Pharmacy segment, three third-party payers accounted for approximately 31%, 33%, and 35% of the Company's consolidated sales in fiscal 2022, 2021 and 2020, respectively.

Geographic data for sales is as follows (in millions):
 202220212020
United States$110,873 $112,005 $107,701 
United Kingdom8,894 8,298 7,830 
Germany11,178 10,472 4,876 
Other1,757 1,734 1,575 
Sales$132,703 $132,509 $121,982 

Geographic data for long-lived assets, defined as property, plant and equipment, is as follows (in millions):
 20222021
United States$9,577 $9,665 
United Kingdom1,838 2,205 
Other314 377 
Total long-lived assets$11,729 $12,247