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Segment reporting
 12 Months Ended
Aug. 31, 2023
Segment Reporting [Abstract]  
Segment reporting Segment reporting
The Company 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 Cencora. 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 national provider of value-based care with primary, multi-specialty, and urgent care providers serving patients in traditional clinic settings, in patients’ homes and online appointments; Shields, a specialty pharmacy integrator and accelerator for hospitals; CareCentrix, a participant 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):
202320222021
Sales:
U.S. Retail Pharmacy$110,314 $109,078 $112,005 
International22,198 21,830 20,505 
U.S. Healthcare6,570 1,795 — 
Walgreens Boots Alliance, Inc.$139,081 $132,703 $132,509 
Adjusted operating income:
U.S. Retail Pharmacy$3,689 $5,029 $5,019 
International935 726 466 
U.S. Healthcare(566)(370)(57)
Corporate and Other
(187)(251)(311)
Walgreens Boots Alliance, Inc.$3,871 $5,133 $5,117 
Depreciation and amortization:
U.S. Retail Pharmacy$1,362 $1,415 $1,513 
International328 355 399 
U.S. Healthcare560 211 1 
Corporate and Other8 9 10 
Walgreens Boots Alliance, Inc.$2,257 $1,990 $1,923 
Capital expenditures:
U.S. Retail Pharmacy$1,421 $1,207 $1,030 
International308 295 243 
U.S. Healthcare375 218 34 
Corporate and Other13 15 5 
Walgreens Boots Alliance, Inc.$2,117 $1,734 $1,312 

The following table reconciles adjusted operating income to operating (loss) income (in millions):
202320222021
Adjusted operating income (Non-GAAP measure):$3,871 $5,133 $5,117 
Certain legal and regulatory accruals and settlements(7,466)(768)(75)
Transformational cost management(1,181)(763)(417)
Acquisition-related amortization(1,126)(855)(523)
Acquisition-related costs(323)(223)(54)
Impairment of intangible assets(299)(783)(49)
Adjustments to equity earnings (loss) in Cencora(211)(218)(1,645)
LIFO provision(187)(135)(13)
Store damage and inventory loss insurance recovery40 — — 
Operating (loss) income (GAAP measure)$(6,882)$1,387 $2,342 

No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Substantially all of our 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 payors accounted for approximately 33%, 31%, and 33% of the Company's consolidated sales in fiscal 2023, 2022 and 2021, respectively.
Geographic data for sales is as follows (in millions):
 202320222021
United States$116,883 $110,873 $112,005 
United Kingdom8,984 8,894 8,298 
Germany11,211 11,178 10,472 
Other2,003 1,757 1,734 
Sales$139,081 $132,703 $132,509 

Geographic data for long-lived assets, defined as operating lease right-of-use assets and property, plant and equipment, is as follows (in millions):
 2023
2022 1
United States$28,951 $28,710 
United Kingdom3,622 3,663 
Other681 614 
Total long-lived assets$33,254 $32,988 

1.Fiscal 2022 data has been updated to conform to current period presentation