Goodwill and other intangible assets

The fair values of the Company’s reporting units exceeded their carrying amounts ranging from approximately 11% to approximately 312%. The fair value of the Boots reporting unit, within the Retail Pharmacy International segment, is in excess of its carrying value by approximately 11%. The Company will continue to monitor the UK industry and market trends and the impact it may have on the Boots reporting unit. The determination of the fair value of the reporting units requires the Company to make significant estimates and assumptions. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of the goodwill impairment charge, or both.

Changes in the carrying amount of goodwill by reportable segment consist of the following activity (in millions):



	Retail Pharmacy USA		Retail Pharmacy International			Pharmaceutical Wholesale			Walgreens Boots Alliance, Inc.
August 31, 2016	$	9,036	$	3,369		$	3,122		$	15,527
Acquisitions	103		—			1			104
Currency translation adjustments	—		23			(22		)	1
August 31, 2017	$	9,139	$	3,392		$	3,101		$	15,632
Acquisitions	1,344		—			4			1,348
Currency translation adjustments	—		(22		)	(44		)	(66		)
August 31, 2018	$	10,483	$	3,370		$	3,061		$	16,914

In fiscal 2018, the Company purchased 1,932 stores from Rite Aid for total consideration of $4.3 billion, resulting in an increase of $1,344 million to goodwill and $2,054 million to intangible assets. In fiscal 2017, Walgreens Boots Alliance and Prime closed a transaction to form a combined central specialty pharmacy and mail services company AllianceRx Walgreens Prime, resulting in an increase of $103 million to goodwill and $331 million to intangible assets. See note 2, acquisitions, for additional information.

The carrying amount and accumulated amortization of intangible assets consists of the following (in millions):



	August 31, 2018		August 31, 2017
Gross amortizable intangible assets
Customer relationships and loyalty card holders¹	$	4,235	$	2,510
Favorable lease interests and non-compete agreements	680		523
Trade names and trademarks	489		504
Purchasing and payer contracts	390		391
Total gross amortizable intangible assets	5,794		3,928

Accumulated amortization
Customer relationships and loyalty card holders¹	$	997	$	780
Favorable lease interests and non-compete agreements	359		355
Trade names and trademarks	206		155
Purchasing and payer contracts	78		51
Total accumulated amortization	1,640		1,341
Total amortizable intangible assets, net	$	4,154	$	2,587

Indefinite-lived intangible assets
Trade names and trademarks	$	5,557	$	5,514
Pharmacy licenses	2,072		2,055
Total indefinite lived intangible assets	$	7,629	$	7,569

Total intangible assets, net	$	11,783	$	10,156


¹	Includes purchased prescription files.

Amortization expense for intangible assets was $493 million, $385 million and $396 million in fiscal 2018, 2017 and 2016, respectively.

Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at August 31, 2018 is as follows (in millions):



	2019		2020		2021		2022		2023
Estimated annual amortization expense	$	531	$	461	$	410	$	390	$	354