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Supplemental information
 6 Months Ended
Feb. 28, 2025
Supplemental Cash Flow Elements [Abstract]  
Supplemental information Supplemental information
Cash, cash equivalents and restricted cash
The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. The following represents a reconciliation of cash, cash equivalents, and restricted cash in the Consolidated Condensed Balance Sheets to total Cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of February 28, 2025 and August 31, 2024, respectively (in millions):

February 28, 2025August 31, 2024
Cash and cash equivalents$702 $1,319 
Marketable securities430 1,790 
Restricted cash (included in other current and non-current assets)109 110 
Cash, cash equivalents and restricted cash$1,241 $3,218 

Accounts receivable
Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies). Trade receivables were $5.0 billion and $4.8 billion at February 28, 2025 and August 31, 2024, respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from Cencora, were $1.0 billion at February 28, 2025 and August 31, 2024. See Note 14. Related parties for further information.

Depreciation and amortization
The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions):
Three months endedSix months ended
February 28, 2025February 29, 2024February 28, 2025February 29, 2024
Depreciation expense$357 $374 $727 $751 
Intangible assets amortization254 239 509 478 
Total depreciation and amortization expense$611 $613 $1,236 $1,230 


Redeemable non-controlling interests
The following represents a roll forward of the redeemable non-controlling interest in the Consolidated Condensed Balance Sheets (in millions):
Three months endedSix months ended
February 28, 2025February 29, 2024February 28, 2025February 29, 2024
Opening balance$106 $169 $174 $167 
Acquisition of non-controlling interests — — (33)— 
Net income (loss) attributable to redeemable non-controlling interests(2)2 (3)2 
Redemption price adjustments and other 1
— 2 (34)4 
Ending balance$104 $172 $104 $172 

1.Remeasurement of non-controlling interests, probable of redemption but not currently redeemable, to their redemption value, is recorded in Paid in capital within the Consolidated Condensed Balance Sheets.
Non-controlling interests
In fiscal 2023, the Company provided VillageMD senior secured credit facilities (the “VillageMD Secured Loan”) in the aggregate amount of $2.25 billion, consisting of (i) a senior secured term loan in an aggregate principal amount of $1.75 billion and (ii) a senior secured credit facility in an aggregate original committed amount of $500 million. In the three months ended November 30, 2024, the Company and VillageMD executed an amendment to the VillageMD Secured Loan that consolidated certain VillageMD obligations to the Company, modified certain interest and fee terms, and provided VillageMD with additional borrowing capacity. These intercompany credit facilities eliminate in consolidation. The Company applies the legal claim approach to the attribution of intercompany transactions to non-controlling interests. The amendment of the VillageMD Secured Loan increased the Company’s claim on VillageMD’s net assets resulting in a pre-tax non-controlling interest benefit of approximately $160 million.

The Company attributes VillageMD earnings and losses to non-controlling interests using the hypothetical-liquidation book value (“HLBV”) method, which is a balance sheet-oriented approach. Under the HLBV method, VillageMD income and losses are attributed to each unit based on changes to the amounts that each unit would hypothetically receive at each period end under the liquidation provisions of the VillageMD Amended and Restated Limited Liability Company Agreement, assuming the net assets of VillageMD were liquidated at their carrying values determined in accordance with GAAP. The proportion of earnings and losses attributed to non-controlling interests under HLBV is subject to change as VillageMD net assets change. As of February 28, 2025, the Company’s preference from the VillageMD Secured Loan exceeds VillageMD’s net assets. As a result, future earnings and losses of VillageMD will be fully attributed to the Company.

Earnings per share
Earnings per share is computed using the treasury stock method. During the three and six months ended February 28, 2025 there were 36 million and 32 million stock options, performance shares, and restricted stock units, respectively, that were excluded from the calculation of earnings per share as the effect of including them would be anti-dilutive, compared to 23 million and 21 million for the three and six months ended February 29, 2024, respectively.

Cash dividends declared per common share
Cash dividends per common share declared were as follows:

Quarter ended20252024
November$0.2500 $0.4800 
February— 0.2500 
Total$0.2500 $0.7300 

In the three months ended February 28, 2025, the Company’s Board of Directors suspended the Company’s cash dividend paid to stockholders on a quarterly basis. The decision reflects management’s ongoing efforts to evaluate and refine the Company’s capital allocation policy in alignment with the Company’s broader long-term turnaround efforts.