Leases (Tables)

6 Months Ended

Feb. 29, 2024

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

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

Balance sheet supplemental information:	February 29, 2024		August 31, 2023
Operating leases:
Operating lease right-of-use assets	$	21,342	$	21,667
Operating lease obligations - current	$	2,339	$	2,347
Operating lease obligations - non-current	21,812		22,124
Total operating lease obligations	$	24,151	$	24,472
Finance leases:
Right-of-use assets included in:
Property, plant and equipment, net	$	704	$	678
Lease obligations included in:
Accrued expenses and other liabilities	$	70	$	57
Other non-current liabilities	934		919
Total finance lease obligations	$	1,004	$	976

Schedule of Supplemental Income Statement and Other Information

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

	Three months ended				Six months ended
Statement of earnings supplemental information:	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Operating lease cost
Fixed	$	871	$	853	$	1,739	$	1,667
Variable 1	210		203		424		395
Finance lease cost
Amortization	$	13	$	11	$	32	$	21
Interest	13		12		25		24
Sublease income 2	$	27	$	28	$	55	$	57
Impairment of right-of-use assets	132		4		181		71
Gain on sale-leaseback transactions 2
U.S. Retail Pharmacy	$	98	$	211	$	258	$	384
International 3	—		132		—		148
Total gain on sale-leaseback 2	$	98	$	343	$	258	$	532

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 related to the Germany wholesale business of $132 million and $148 million for the three and six months ended February 2023, respectively, of which $24 million and $41 million related to the optimization of warehouse locations as part of acquisition integration activities.

Other supplemental information was as follows (in millions):

	Six months ended
Other supplemental information:	February 29, 2024		February 28, 2023
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases	$	1,849	$	1,720
Operating cash flows from finance leases	25		22
Financing cash flows from finance leases	33		21
Total	$	1,906	$	1,763
Right-of-use assets obtained in exchange for new lease obligations
Operating leases	$	993	$	1,135
Finance leases	57		18
Total	$	1,049	$	1,154

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

Weighted average lease terms and discount rates:	February 29, 2024		August 31, 2023
Weighted average remaining lease term in years
Operating leases	9.5		9.6
Finance leases	17.0		17.4
Weighted average discount rate
Operating leases	5.55	%	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 February 29, 2024 were as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease 1,2
2024 (Remaining period)	$	63	$	1,836
2025	122		3,635
2026	119		3,564
2027	116		3,476
2028	95		3,342
2029	85		3,100
Later	881		12,441
Total undiscounted minimum lease payments	$	1,481	$	31,394
Less: Present value discount	477		7,242
Lease liability	$	1,004	$	24,151

1.Total undiscounted minimum lease payments include approximately $3.7 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 $609 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 February 29, 2024 were as follows (in millions):

Future lease payments (fiscal years):	Finance lease		Operating lease 1,2
2024 (Remaining period)	$	63	$	1,836
2025	122		3,635
2026	119		3,564
2027	116		3,476
2028	95		3,342
2029	85		3,100
Later	881		12,441
Total undiscounted minimum lease payments	$	1,481	$	31,394
Less: Present value discount	477		7,242
Lease liability	$	1,004	$	24,151

1.Total undiscounted minimum lease payments include approximately $3.7 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 $609 million due to the Company under non-cancelable sublease terms.