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Segment reporting
 3 Months Ended
Nov. 30, 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. 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 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; as well as Shields Health Solutions Parent, LLC (“Shields”), a specialty pharmacy integrator and accelerator for hospitals; and CCX Next, LLC (“CareCentrix”), a participant in the post-acute and home care management sectors, and the Walgreens Health organic business that contracts with different participants in the healthcare ecosystem to provide commercial and clinical healthcare services.

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 ended November 30,
20242023
Sales:
U.S. Retail Pharmacy
Pharmacy$24,711 $22,384 
Retail6,155 6,560 
Total$30,866 $28,944 
International
Pharmacy$912 $926 
Retail2,117 1,932 
Wholesale3,397 2,974 
Total$6,425 $5,832 
U.S. Healthcare$2,172 $1,931 
Corporate and Other 1
$(4)$— 
Walgreens Boots Alliance, Inc.$39,459 $36,707 
Adjusted operating income:
U.S. Retail Pharmacy$441 $694 
International168 142 
U.S. Healthcare25 (96)
Corporate and Other(41)(53)
Walgreens Boots Alliance, Inc.$593 $687 

1.Includes certain eliminations.

The following table reconciles adjusted operating income to operating loss (in millions):
Three months ended November 30,
20242023
Adjusted operating income (Non-GAAP measure)$593 $687 
Footprint optimization(333)— 
Acquisition-related amortization(269)(275)
Acquisition and disposition-related costs(104)(163)
Adjustments to equity earnings in Cencora(76)(50)
Certain legal and regulatory accruals and settlements(59)(82)
LIFO provision(12)(48)
Transformational cost management15 (109)
Operating loss (GAAP measure)$(245)$(39)