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Segment reporting
 9 Months Ended
May 31, 2023
Segment Reporting [Abstract]  
Segment reporting Segment reporting
The Company is 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 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, urgent and multi-specialty care services; Shields, a specialty pharmacy integrator and accelerator for hospitals; 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.

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):
Three months ended May 31,Nine months ended May 31,
2023202220232022
Sales:
U.S. Retail Pharmacy$27,866 $26,695 $82,648 $82,394 
International5,573 5,305 16,414 16,686 
U.S. Healthcare1,975 596 4,597 1,173 
Corporate and Other 1
— 1 — — 
Walgreens Boots Alliance, Inc.$35,415 $32,597 $103,659 $100,254 
Adjusted operating income (Non-GAAP measure):
U.S. Retail Pharmacy$962 $966 $3,134 $4,243 
International208 174 676 563 
U.S. Healthcare(172)(129)(483)(218)
Corporate and Other(39)(56)(139)(198)
Walgreens Boots Alliance, Inc.$959 $955 $3,188 $4,389 

1.Includes certain eliminations.
The following table reconciles adjusted operating income to operating (loss) income (in millions):

Three months ended May 31,Nine months ended May 31,
2023202220232022
Adjusted operating income (Non-GAAP measure)$959 $955 $3,188 $4,389 
Certain legal and regulatory accruals and settlements(268)(734)(7,249)(734)
Acquisition-related amortization(274)(201)(851)(616)
Acquisition-related costs(70)(40)(257)(155)
Transformational cost management(414)(185)(697)(458)
Adjustments to equity earnings in AmerisourceBergen(61)(60)(178)(155)
LIFO provision(51)(55)(89)(64)
Impairment of intangible assets (299)— (299)— 
Operating (loss) income (GAAP measure)$(477)$(320)$(6,431)$2,209