Exit and disposal activities (Tables)

3 Months Ended

Nov. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

Costs related to exit and disposal activities under the Transformational Cost Management Program for the three months ended November 30, 2023 and 2022, respectively, were as follows (in millions):

Three months ended November 30, 2023	U.S. Retail Pharmacy		International		U.S. Healthcare		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	36	$	—	$	—	$	—	$	36
Asset impairments	3		7		—		—		10
Employee severance and business transition costs	22		(1)		2		4		27
Information technology transformation and other exit costs	3		—		—		—		4
Total pre-tax exit and disposal charges	$	64	$	6	$	2	$	4	$	77

Three months ended November 30, 2022	U.S. Retail Pharmacy		International		U.S. Healthcare		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	79	$	—	$	—	$	—	$	79
Asset impairments	18		—		—		—		18
Employee severance and business transition costs	11		1		—		4		16
Information technology transformation and other exit costs	11		5		—		—		17
Total pre-tax exit and disposal charges	$	119	$	6	$	—	$	4	$	130

Change in Restructuring Liabilities

The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions):

	Lease obligations and other real estate costs		Asset impairments		Employee severance and business transition costs		Information technology transformation and other exit costs		Total
Balance at August 31, 2023	$	10	$	—	$	70	$	22	$	102
Costs	36		10		27		4		77
Payments	(21)		—		(35)		(14)		(70)
Other	(10)		(10)		—		—		(21)
Balance at November 30, 2023	$	15	$	—	$	62	$	11	$	88

Other exit and disposal activities

During the three months ended November 30, 2023, VillageMD approved the full or partial exit from 6 markets, including the closure of approximately 70 clinics in fiscal 2024. As a result, long-lived and intangible assets of $124 million were impaired. The impairment charge was recorded in Selling, general and administrative expenses within the Consolidated Condensed Statements of Earnings.