Debt (Tables)

12 Months Ended

Aug. 31, 2018

Debt Disclosure [Abstract]

Short-term borrowings

Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted)

	August 31, 2018		August 31, 2017
Short-term debt1
Commercial paper	$	430	$	—
Credit facilities 2	999		—
$1 billion note issuance 3,4
5.250% unsecured notes due 2019 5	249		—
Other 6	288		251
Total short-term debt	$	1,966	$	251

Long-term debt

Long-term debt 1
$6 billion note issuance3,7
3.450% unsecured notes due 2026	$	1,888	$	1,887
4.650% unsecured notes due 2046	590		590
$8 billion note issuance3,7
2.700% unsecured notes due 2019	1,248		1,246
3.300% unsecured notes due 2021	1,245		1,244
3.800% unsecured notes due 2024	1,990		1,988
4.500% unsecured notes due 2034	495		495
4.800% unsecured notes due 2044	1,492		1,492
£700 million note issuance3,7
2.875% unsecured Pound sterling notes due 2020	517		513
3.600% unsecured Pound sterling notes due 2025	387		384
€750 million note issuance3,7
2.125% unsecured Euro notes due 2026	868		884
$4 billion note issuance3,4
3.100% unsecured notes due 2022	1,196		1,195
4.400% unsecured notes due 2042	492		492
$1 billion note issuance3,4
5.250% unsecured notes due 2019 5	—		250
Other 8	23		24
Total long-term debt, less current portion	$	12,431	$	12,684

¹  Carry values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated borrowings have been translated using the spot rates at August 31, 2018 and 2017, respectively.

²  Credit facilities includes borrowings outstanding under the February 2017 Revolving Credit Agreement, the August 2017 Revolving Credit Agreement and the 2017 Term Loan Credit Agreement, which are described in more detail below. From time to time, the Company may also enter into other credit facilities, including in March 2018, a $350 million short-term unsecured revolving credit facility which was undrawn as of August 31, 2018.

³  The $6 billion, $8 billion, £0.7 billion, €0.75 billion, $4 billion and $1 billion note issuances as of August 31, 2018 had a fair value and carrying value of $2.4 billion and $2.5 billion, $6.3 billion and $6.5 billion, $0.9 billion and $0.9 billion, $0.9 billion and $0.9 billion, $1.7 billion and $1.7 billion, and $0.3 billion and $0.2 billion, respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the August 31, 2018 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of August 31, 2018.

⁴  Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance.

⁵  Includes interest rate swap fair market value adjustments. See note 9, fair value measurements, for additional fair value disclosures.

⁶  Other short-term debt represents a mix of fixed and variable rate borrowings with various maturities and working capital facilities denominated in various currencies.

⁷  Notes are unsubordinated debt obligations of Walgreens Boots Alliance and rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance from time to time outstanding.

⁸  Other long-term debt represents a mix of fixed and variable rate borrowings in various currencies with various maturities.

Future maturities of long-term debt

At August 31, 2018, the future maturities of short-term and long-term debt, excluding debt discounts and issuance costs and financing and capital lease obligations (see note 4, leases, for the future lease obligation maturities), consisted of the following (in millions):

	Amount
2019	$	1,969
2020	1,277
2021	519
2022	1,250
2023	1,200
Later	8,262
Total estimated future maturities	$	14,477