Leases (Tables)

3 Months Ended

Nov. 30, 2023

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases was as follows (in millions):

Balance sheet supplemental information:	November 30, 2023		August 31, 2023
Operating leases:
Operating lease right-of-use assets	$	21,708	$	21,667
Operating lease obligations - current	$	2,350	$	2,347
Operating lease obligations - non-current	22,132		22,124
Total operating lease obligations	$	24,482	$	24,472
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	663	$	678
Lease obligations included in:
Accrued expenses and other liabilities	$	58	$	57
Other non-current liabilities	908		919
Total finance lease obligations	$	966	$	976

Schedule of Supplemental Income Statement and Other Information

Supplemental income statement information related to leases was as follows (in millions):

	Three months ended November 30,
Statement of earnings supplemental information:	2023		2022
Operating lease cost
Fixed	$	868	$	813
Variable 1	214		192
Finance lease cost
Amortization	$	19	$	11
Interest	13		12
Sublease income 2	$	28	$	29
Impairment of right-of-use assets	49		67
Gain on sale-leaseback transactions 2
U.S. Retail Pharmacy	$	160	$	172
International 3	—		17
Total gain on sale-leaseback 2	$	160	$	189

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.

2Recorded in Selling, general and administrative expenses within the Consolidated Condensed Statements of Earnings.

3Includes gain on sale-leaseback of $17 million related to the optimization of the Germany wholesale business warehouse locations as part of acquisition integration activities in the three months ended November 30, 2022.

Other supplemental information was as follows (in millions):

	Three months ended November 30,
Other supplemental information:	2023		2022
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	924	$	828
Operating cash flows from finance leases	13		11
Financing cash flows from finance leases	14		10
Total	$	951	$	849
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	679	$	602
Finance leases	5		1
Total	$	685	$	603

Weighted average lease term and discount rate for real estate leases were as follows:

Weighted average lease terms and discount rates:	November 30, 2023		August 31, 2023
Weighted average remaining lease term in years
Operating leases	9.6		9.6
Finance leases	17.1		17.4
Weighted average discount rate
Operating leases	5.43	%	5.35	%
Finance leases	5.26	%	5.25	%

Schedule of Aggregate Future Lease Payments Under Operating Leases

The aggregate future lease payments for operating and finance leases as of November 30, 2023 were as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease 1,2
2024 (Remaining period)	$	84	$	2,763
2025	106		3,629
2026	102		3,552
2027	100		3,466
2028	91		3,311
2029	85		3,063
Later	880		12,004
Total undiscounted minimum lease payments	$	1,447	$	31,787
Less: Present value discount	480		7,305
Lease liability	$	966	$	24,482

1.Total undiscounted minimum lease payments include approximately $3.8 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised.

2.Total undiscounted minimum lease payments exclude sublease rental income of approximately $614 million due to the Company under non-cancelable sublease terms.

Schedule of Aggregate Future Lease Payments Under Finance Leases

The aggregate future lease payments for operating and finance leases as of November 30, 2023 were as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease 1,2
2024 (Remaining period)	$	84	$	2,763
2025	106		3,629
2026	102		3,552
2027	100		3,466
2028	91		3,311
2029	85		3,063
Later	880		12,004
Total undiscounted minimum lease payments	$	1,447	$	31,787
Less: Present value discount	480		7,305
Lease liability	$	966	$	24,482

1.Total undiscounted minimum lease payments include approximately $3.8 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised.

2.Total undiscounted minimum lease payments exclude sublease rental income of approximately $614 million due to the Company under non-cancelable sublease terms.