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Retirement benefits (Tables)
 12 Months Ended
Aug. 31, 2022
Retirement Benefits [Abstract]  
Schedule of defined benefit plans using fair value hierarchy
The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions):
 August 31, 2022Level 1Level 2Level 3
Equity securities:
    
Equity securities 1
$967 $— $967 $— 
Debt securities:    
Fixed interest government bonds 2
688 402 285 — 
Index linked government bonds 2
1,785 1,785 — — 
Corporate bonds 3
1,980 — 1,980 — 
Real estate:  
Real estate 4
548 — — 548 
Other:
    
Other investments, net 5
636 10 (87)713 
Total$6,603 $2,197 $3,145 $1,261 
 August 31, 2021Level 1Level 2Level 3
Equity securities:
    
Equity securities 1
$1,316 $— $1,316 $— 
Debt securities:    
Fixed interest government bonds 2
514 101 412 — 
Index linked government bonds 2
3,521 3,486 35 — 
Corporate bonds3
2,851 1 2,850 — 
Real estate:  
Real estate 4
513 — — 513 
Other:
    
Other investments, net 5
1,761 107 1,024 629 
Total$10,475 $3,696 $5,637 $1,142 
1Equity securities, which mainly comprise of investments in commingled funds, are valued based on quoted prices and are primarily exchange-traded. Securities for which official close or last trade pricing on an active exchange is available are classified as Level 1 investments. If closing prices are not available, or the investments are in a commingled fund, securities are valued at the last quoted bid price and typically are categorized as Level 2 investments.
2Debt securities: government bonds comprise of fixed interest and index linked bonds issued by central governments and are valued based on quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize pricing which considers readily available inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type, as well as dealer-supplied prices.
3Debt securities: corporate bonds comprise bonds issued by corporations in both segregated and commingled funds
and are valued using recently executed transactions, or quoted market prices for similar assets and liabilities in active markets, or for identical assets and liabilities in markets that are not active. If there have been no market transactions in a particular fixed income security, its fair value is calculated by pricing models that benchmark the security against other securities with actual market prices.
4Real estate comprise of investments in certain property funds which are valued based on the underlying properties. These properties are valued using a number of standard industry techniques such as cost, discounted cash flows, independent appraisals and market based comparable data. Real estate investments are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2022 were driven by actual return on plan assets still held at August 31, 2022 and purchases during the year.
5Other investments mainly comprise of net receivable (payable) amounts for unsettled transactions, cash and cash equivalents, derivatives, insurance linked securities and direct private placements. Cash is categorized as a Level 1 investment and cash in commingled funds is categorized as Level 2 investments. Amounts receivable (payable) are categorized as level 2 investments. Cash equivalents are valued using observable yield curves, discounting and interest rates and are categorized as Level 2 investments. Derivatives which are exchange-traded and for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market, or exchange on which they are traded, and are categorized as Level 1 investments. Over-the-counter derivatives typically are valued by independent pricing services and are categorized as Level 2 investments. Insurance linked securities are categorized as Level 2. Direct private placements are typically bonds valued by reference to comparable bonds and are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2022 were primarily driven by purchases during the year.
Components of net periodic benefit costs Components of net periodic pension costs for the defined benefit pension plans and cumulative pre-tax amounts recognized in accumulated other comprehensive (income) loss are as follows (in millions):
 Boots and other pension plans
 202220212020
Service costs (Selling, general and administrative expenses)$5 $6 $2 
Interest costs (Other income, net)149 139 141 
Expected returns on plan assets/other (Other income, net)(280)(332)(285)
Total net periodic pension (income) cost$(126)$(188)$(142)
Net actuarial (gain) loss$(251)$(506)$856 
Prior service cost(1)(1)(1)
Total pre-tax comprehensive (income) loss$(252)$(507)$855 
Accumulated and projected benefit obligations Change in benefit obligations for the defined benefit pension plans (in millions):
 20222021
Benefit obligation at beginning of year$10,206 $9,905 
Service costs5 6 
Interest costs149 139 
Settlements— (2)
Net actuarial (gain) loss(3,042)75 
Benefits paid(304)(320)
Acquisitions— 182 
Currency translation adjustments(1,047)223 
Benefit obligation at end of year$5,967 $10,206 
Changes in fair value of plan assets Change in plan assets for the defined benefit pension plans (in millions):
 20222021
Plan assets at fair value at beginning of year$10,475 $9,614 
Employer contributions45 53 
Benefits paid(304)(320)
Return on assets/other(2,477)906 
Settlements— (2)
Currency translation adjustments(1,136)223 
Plan assets at fair value at end of year$6,603 $10,475 
Amounts recognized in balance sheet Amounts recognized in the Consolidated Balance Sheets (in millions):
 August 31, 2022August 31, 2021
Other non-current assets$863 $602 
Accrued expenses and other liabilities(9)(9)
Other non-current liabilities(217)(324)
Net asset recognized at end of year$637 $269 
Schedule of projected benefit obligation
The following tables present classes of defined benefit pension plan assets by fair value hierarchy (in millions):
 August 31, 2022Level 1Level 2Level 3
Equity securities:
    
Equity securities 1
$967 $— $967 $— 
Debt securities:    
Fixed interest government bonds 2
688 402 285 — 
Index linked government bonds 2
1,785 1,785 — — 
Corporate bonds 3
1,980 — 1,980 — 
Real estate:  
Real estate 4
548 — — 548 
Other:
    
Other investments, net 5
636 10 (87)713 
Total$6,603 $2,197 $3,145 $1,261 
 August 31, 2021Level 1Level 2Level 3
Equity securities:
    
Equity securities 1
$1,316 $— $1,316 $— 
Debt securities:    
Fixed interest government bonds 2
514 101 412 — 
Index linked government bonds 2
3,521 3,486 35 — 
Corporate bonds3
2,851 1 2,850 — 
Real estate:  
Real estate 4
513 — — 513 
Other:
    
Other investments, net 5
1,761 107 1,024 629 
Total$10,475 $3,696 $5,637 $1,142 
1Equity securities, which mainly comprise of investments in commingled funds, are valued based on quoted prices and are primarily exchange-traded. Securities for which official close or last trade pricing on an active exchange is available are classified as Level 1 investments. If closing prices are not available, or the investments are in a commingled fund, securities are valued at the last quoted bid price and typically are categorized as Level 2 investments.
2Debt securities: government bonds comprise of fixed interest and index linked bonds issued by central governments and are valued based on quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize pricing which considers readily available inputs such as the yield or price of bonds of comparable quality, coupon, maturity and type, as well as dealer-supplied prices.
3Debt securities: corporate bonds comprise bonds issued by corporations in both segregated and commingled funds
and are valued using recently executed transactions, or quoted market prices for similar assets and liabilities in active markets, or for identical assets and liabilities in markets that are not active. If there have been no market transactions in a particular fixed income security, its fair value is calculated by pricing models that benchmark the security against other securities with actual market prices.
4Real estate comprise of investments in certain property funds which are valued based on the underlying properties. These properties are valued using a number of standard industry techniques such as cost, discounted cash flows, independent appraisals and market based comparable data. Real estate investments are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2022 were driven by actual return on plan assets still held at August 31, 2022 and purchases during the year.
5Other investments mainly comprise of net receivable (payable) amounts for unsettled transactions, cash and cash equivalents, derivatives, insurance linked securities and direct private placements. Cash is categorized as a Level 1 investment and cash in commingled funds is categorized as Level 2 investments. Amounts receivable (payable) are categorized as level 2 investments. Cash equivalents are valued using observable yield curves, discounting and interest rates and are categorized as Level 2 investments. Derivatives which are exchange-traded and for which market quotations are readily available are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market, or exchange on which they are traded, and are categorized as Level 1 investments. Over-the-counter derivatives typically are valued by independent pricing services and are categorized as Level 2 investments. Insurance linked securities are categorized as Level 2. Direct private placements are typically bonds valued by reference to comparable bonds and are categorized as Level 3 investments. Changes in Level 3 investments during fiscal 2022 were primarily driven by purchases during the year.
Schedule of projected and accumulated benefit obligation and fair value of plan assets
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension plans, including accumulated benefit obligations in excess of plan assets, were as follows (in millions):
 August 31, 2022August 31, 2021
Projected benefit obligation$5,967 $10,206 
Accumulated benefit obligation5,961 10,200 
Fair value of plan assets 1
6,603 10,475 
1 Represents plan assets of The Boots plan, the Company's only funded defined benefit pension plan.
Estimated future benefit payments Estimated future benefit payments for the next 10 years from defined benefit pension plans to participants are as follows (in millions):
 Estimated future benefit payments
2023$285 
2024269 
2025279 
2026291 
2027302 
2028-20321,645 
Schedule of assumptions used The assumptions used in accounting for the defined benefit pension plans were as follows:
 20222021
Weighted-average assumptions used to determine benefit obligations  
Discount rate4.20 %1.71 %
Rate of compensation increase3.04 %2.80 %
Weighted-average assumptions used to determine net periodic benefit cost  
Discount rate1.57 %1.39 %
Expected long-term return on plan assets2.90 %3.50 %
Rate of compensation increase2.80 %2.77 %