Exit and disposal activities (Tables)

6 Months Ended

Feb. 29, 2024

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 and six months ended February 29, 2024 and February 28, 2023, respectively, were as follows (in millions):

Three months ended February 29, 2024	U.S. Retail Pharmacy		International		U.S. Healthcare		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	119	$	1	$	—	$	—	$	120
Asset impairments	25		14		—		—		39
Employee severance and business transition costs	29		—		3		1		33
Information technology transformation and other exit costs	3		—		—		—		3
Total pre-tax exit and disposal charges	$	175	$	16	$	3	$	1	$	195

Six months ended February 29, 2024	U.S. Retail Pharmacy		International		U.S. Healthcare		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	155	$	1	$	—	$	—	$	156
Asset impairments	28		21		—		—		49
Employee severance and business transition costs	51		—		5		5		60
Information technology transformation and other exit costs	6		1		—		—		7
Total pre-tax exit and disposal charges	$	240	$	22	$	5	$	5	$	272

Three months ended February 28, 2023	U.S. Retail Pharmacy		International		U.S. Healthcare		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	20	$	—	$	—	$	—	$	20
Asset impairments	96		(1)		—		—		95
Employee severance and business transition costs	11		1		—		3		15
Information technology transformation and other exit costs	4		5		—		(1)		9
Total pre-tax exit and disposal charges	$	131	$	4	$	—	$	2	$	138

Six months ended February 28, 2023	U.S. Retail Pharmacy		International		U.S. Healthcare		Corporate and Other		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	98	$	—	$	—	$	—	$	98
Asset impairments	115		(1)		—		—		113
Employee severance and business transition costs	22		2		—		7		31
Information technology transformation and other exit costs	16		10		—		(1)		25
Total pre-tax exit and disposal charges	$	250	$	10	$	—	$	6	$	267

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	156		49		60		7		272
Payments	(75)		—		(77)		(16)		(169)
Other	(77)		(49)		—		—		(126)
Balance at February 29, 2024	$	14	$	—	$	52	$	14	$	80