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Segment reporting
 6 Months Ended
Feb. 29, 2024
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 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, and the Benavides brand in Mexico. In the three months ended November 30, 2023, the Company completed the sale of the Farmacias Ahumada business 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; CCX Next, LLC (“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):

Three months endedSix months ended
February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Sales:
U.S. Retail Pharmacy$28,861 $27,577 $57,805 $54,781 
International6,022 5,651 11,854 10,840 
U.S. Healthcare2,176 1,634 4,107 2,622 
Corporate and Other 1
(6)— (6)— 
Walgreens Boots Alliance, Inc.$37,052 $34,862 $73,760 $68,244 
Adjusted operating income:
U.S. Retail Pharmacy$752 $1,067 $1,446 $2,172 
International245 352 387 468 
U.S. Healthcare(34)(159)(129)(311)
Corporate and Other 1
(63)(44)(117)(100)
Walgreens Boots Alliance, Inc.$900 $1,215 $1,588 $2,229 

1.Includes certain eliminations.

The following table reconciles adjusted operating income to operating (loss) income (in millions):

Three months endedSix months ended
February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Adjusted operating income (Non-GAAP measure)$900 $1,215 $1,588 $2,229 
Impairment of goodwill, intangibles and long-lived assets(13,090)— (13,090)— 
Acquisition-related amortization(270)(247)(545)(577)
Acquisition-related costs(249)(148)(412)(187)
Certain legal and regulatory accruals and settlements(242)(427)(324)(6,981)
Transformational cost management(197)(145)(306)(283)
Adjustments to equity earnings in Cencora(22)(31)(72)(117)
LIFO provision— (20)(48)(38)
Operating (loss) income (GAAP measure)$(13,171)$197 $(13,209)$(5,954)