Leases (Tables)

12 Months Ended

Aug. 31, 2018

Leases [Abstract]

Schedule of future minimum rental payments for operating leases

Annual minimum rental commitments for all leases having an initial or remaining non-cancelable term of more than one year are shown below (in millions):

	Finance lease obligation		Capital lease		Operating lease1
2019	$	18	$	63	$	3,528
2020	18		63		3,304
2021	18		62		3,028
2022	18		58		2,762
2023	18		57		2,522
Later	216		864		17,592
Total minimum lease payments	$	306	$	1,167	$	32,736

¹  Includes $1.6 billion of minimum rental commitments on closed locations

Schedule of future minimum lease payments for capital leases

Annual minimum rental commitments for all leases having an initial or remaining non-cancelable term of more than one year are shown below (in millions):

	Finance lease obligation		Capital lease		Operating lease1
2019	$	18	$	63	$	3,528
2020	18		63		3,304
2021	18		62		3,028
2022	18		58		2,762
2023	18		57		2,522
Later	216		864		17,592
Total minimum lease payments	$	306	$	1,167	$	32,736

¹  Includes $1.6 billion of minimum rental commitments on closed locations

Reserve for facility closings and related lease termination charges

The changes in liability for facility closings and related lease termination charges include the following (in millions):

	2018			2017
Balance at beginning of period	$	718		$	466
Provision for present value of non-cancelable lease payments on closed facilities	52			344
Changes in assumptions	19			13
Accretion expense	58			37
Other - non cash1	338			—
Cash payments, net of sublease income	(221		)	(142		)
Balance at end of period	$	964		$	718

¹  Represents unfavorable lease liabilities from acquired Rite Aid stores.

Schedule of rental expense

Rental expense, which includes common area maintenance, insurance and taxes, where appropriate, was as follows (in millions):

	2018			2017			2016
Minimum rentals	$	3,447		$	3,259		$	3,355
Contingent rentals	68			59			60
Less: sublease rental income	(67		)	(55		)	(49		)
	$	3,448		$	3,263		$	3,366