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Goodwill and other intangible assets
 9 Months Ended
May 31, 2023
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 during fiscal 2022, 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 May 31, 2023 and August 31, 2022, the carrying value of goodwill within the Boots reporting unit was $962 million and $906 million, respectively.

During the three months ended May 31, 2023, as a result of pharmacy performance and the decision to close additional stores, the Company completed a quantitative impairment analysis for certain indefinite-lived intangible assets related to the Boots reporting unit within the International segment. Based on this analysis, the Company recorded an impairment loss of $431 million within Selling, general and administrative expenses within the Consolidated Condensed Statement of Earnings related to pharmacy license intangible assets. The fair values of indefinite-lived intangibles within the Boots reporting unit approximate their carrying values. As of May 31, 2023 and August 31, 2022, the carrying value of the indefinite-lived intangibles within the Boots reporting unit was $5.4 billion and $5.5 billion, respectively.

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.

Changes in the carrying amount of goodwill by reportable segment consist of the following (in millions):
Goodwill roll forward:U.S. Retail PharmacyInternationalU.S. HealthcareWalgreens Boots Alliance, Inc.
August 31, 2022$10,947 $1,293 $10,040 $22,280 
Acquisitions— — 5,763 5,763 
Adjustments 1
— — 252 252 
Currency translation adjustments and other— 75 — 75 
May 31, 2023$10,947 $1,368 $16,056 $28,371 

1.Includes measurement period adjustments related to the acquisitions of VillageMD, Shields and CareCentrix. See Note 2. Acquisitions and other investments for further information.
The carrying amount and accumulated amortization of intangible assets consist of the following (in millions):
Intangible assets:May 31, 2023August 31, 2022
Gross amortizable intangible assets  
Customer relationships and loyalty card holders 1
$4,490 $4,619 
Provider networks3,217 1,247 
Trade names and trademarks2,290 760 
Developed technology469 436 
Others 97 93 
Total gross amortizable intangible assets$10,563 $7,155 
Accumulated amortization  
Customer relationships and loyalty card holders 1
$1,673 $1,548 
Provider networks180 64 
Trade names and trademarks351 246 
Developed technology123 56 
Others 44 39 
Total accumulated amortization2,371 1,953 
Total amortizable intangible assets, net$8,191 $5,202 
Indefinite-lived intangible assets  
Trade names and trademarks$4,544 $4,319 
Pharmacy licenses843 1,209 
Total indefinite-lived intangible assets$5,387 $5,528 
Total intangible assets, net$13,578 $10,730 

1.Includes purchased prescription files.

Amortization expense for intangible assets was $226 million and $583 million for the three and nine months ended May 31, 2023, respectively and $148 million and $488 million for the three and nine months ended May 31, 2022, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at May 31, 2023 is as follows (in millions):
 2023 (Remaining period)20242025202620272028
Estimated annual amortization expense$231 $877 $841 $815 $744 $687