Walgreens Boots Alliance (WBA) 10-Q 5 Apr 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Feb. 28, 2017	Mar. 31, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Walgreens Boots Alliance, Inc.
Entity Central Index Key	1,618,921
Current Fiscal Year End Date	--08-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		1,080,950,894
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2017

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Feb. 28, 2017	Aug. 31, 2016
Current Assets:
Cash and cash equivalents	$ 11,822	$ 9,807
Accounts receivable, net	5,674	6,260
Inventories	9,230	8,956
Other current assets	783	860
Total Current Assets	27,509	25,883
Non-Current Assets:
Property, plant and equipment, net	13,528	14,335
Goodwill	15,214	15,527
Intangible assets, net	9,650	10,302
Equity method investments (see Note 4)	6,164	6,174
Other non-current assets	440	467
Total Non-Current Assets	44,996	46,805
Total Assets	72,505	72,688
Current Liabilities:
Short-term borrowings	1,153	323
Trade accounts payable (see Note 17)	11,264	11,000
Accrued expenses and other liabilities	4,935	5,484
Income taxes	326	206
Total Current Liabilities	17,678	17,013
Non-Current Liabilities:
Long-term debt	17,758	18,705
Deferred income taxes	2,339	2,644
Other non-current liabilities	4,309	4,045
Total Non-Current Liabilities	24,406	25,394
Commitments and Contingencies (see Note 9)
Equity:
Preferred stock $.01 par value; authorized 32 million shares, none issued	0	0
Common stock $.01 par value; authorized 3.2 billion shares; issued 1,172,513,618 at February 28, 2017 and August 31, 2016	12	12
Paid-in capital	10,162	10,111
Employee stock loan receivable	0	(1)
Retained earnings	28,987	27,684
Accumulated other comprehensive (loss) income	(3,809)	(2,992)
Treasury stock, at cost; 91,818,244 shares at February 28, 2017 and 89,527,027 at August 31, 2016	(5,285)	(4,934)
Total Walgreens Boots Alliance, Inc. Shareholders’ Equity	30,067	29,880
Noncontrolling interests	354	401
Total Equity	30,421	30,281
Total Liabilities and Equity	$ 72,505	$ 72,688

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Feb. 28, 2017	Aug. 31, 2016
Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	32,000,000	32,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares (in shares)	3,200,000,000	3,200,000,000
Common stock, issued (in shares)	1,172,513,618	1,172,513,618
Treasury stock, at cost (in shares)	91,818,244	89,527,027

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENT OF EQUITY (UNAUDITED) - USD ($) $ in Millions	Total	Common Stock	Treasury Stock Amount	Paid-In Capital	Employee Stock Loan Receivable	Accumulated Other Comprehensive (Loss) Income	Retained Earnings	Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	$ 2,049
Net earnings	932
Beginning Balance at Aug. 31, 2016	30,281	$ 12	$ (4,934)	$ 10,111	$ (1)	$ (2,992)	$ 27,684	$ 401
Beginning Balance (in shares) at Aug. 31, 2016		1,082,986,591
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	2,129						2,114	15
Other comprehensive income (loss), net of tax	(860)					(817)		(43)
Dividends declared ($0.750 per share)	(817)						(811)	(6)
Treasury stock purchases	(457)		(457)
Treasury stock purchases (in shares)		(5,600,000)
Employee stock purchase and option plans	117		106	10	1
Employee stock purchase and option plans (in shares)		3,308,783
Stock-based compensation	52			52
Noncontrolling interests in businesses acquired	(24)			(11)				(13)
Ending Balance at Feb. 28, 2017	30,421	$ 12	(5,285)	10,162	0	(3,809)	28,987	354
Ending Balance (in shares) at Feb. 28, 2017		1,080,695,374
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	1,062
Ending Balance at Feb. 28, 2017	$ 30,421	$ 12	$ (5,285)	$ 10,162	$ 0	$ (3,809)	$ 28,987	$ 354
Ending Balance (in shares) at Feb. 28, 2017		1,080,695,374

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENT OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.375	$ 0.3600	$ 0.750	$ 0.7200

CONSOLIDATED CONDENSED STATEME6

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Income Statement [Abstract]
Sales	$ 29,446	$ 30,184	$ 57,947	$ 59,217
Cost of sales	21,885	22,317	43,270	43,931
Gross Profit	7,561	7,867	14,677	15,286
Selling, general and administrative expenses	6,124	6,007	11,810	11,958
Equity earnings in AmerisourceBergen	42	0	59	0
Operating Income	1,479	1,860	2,926	3,328
Other expense	(15)	(496)	(14)	(553)
Earnings Before Interest and Income Tax Provision	1,464	1,364	2,912	2,775
Interest expense, net	172	140	345	278
Earnings Before Income Tax Provision	1,292	1,224	2,567	2,497
Income tax provision	246	301	466	468
Post tax earnings from other equity method investments	16	9	28	20
Net Earnings	1,062	932	2,129	2,049
Net earnings attributable to noncontrolling interests	2	2	15	9
Net Earnings Attributable to Walgreens Boots Alliance, Inc.	$ 1,060	$ 930	$ 2,114	$ 2,040
Net earnings per common share:
Basic (in dollars per share)	$ 0.98	$ 0.86	$ 1.96	$ 1.88
Diluted (in dollars per share)	0.98	0.85	1.94	1.87
Dividends declared per share (in dollars per share)	$ 0.375	$ 0.3600	$ 0.750	$ 0.7200
Weighted average common shares outstanding:
Basic (in shares)	1,079.7	1,080.2	1,080.9	1,084.6
Diluted (in shares)	1,085.5	1,088.4	1,086.9	1,093.5

CONSOLIDATED CONDENSED STATEME7

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 1,062	$ 932	$ 2,129	$ 2,049
Other comprehensive income (loss), net of tax:
Pension/postretirement obligations	5	(2)	(4)	1
Unrealized gain on cash flow hedges	1	1	2	2
Unrecognized loss on available-for-sale investments	0	(88)	(1)	(87)
Share of other comprehensive loss of equity method investments	(4)	0	(5)	0
Currency translation adjustments	3	(1,156)	(852)	(1,606)
Total Other Comprehensive Income (Loss)	5	(1,245)	(860)	(1,690)
Total Comprehensive Income (Loss)	1,067	(313)	1,269	359
Comprehensive income (loss) attributable to noncontrolling interests	5	(33)	(28)	(27)
Comprehensive Income (Loss) Attributable to Walgreens Boots Alliance, Inc.	$ 1,062	$ (280)	$ 1,297	$ 386

CONSOLIDATED CONDENSED STATEME8

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Cash Flows from Operating Activities:
Net earnings	$ 2,129	$ 2,049
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	831	824
Change in fair value of warrants and related amortization	0	586
Deferred income taxes	(226)	(171)
Stock compensation expense	52	60
Equity earnings from equity method investments	(87)	(20)
Other	184	196
Changes in operating assets and liabilities:
Accounts receivable, net	189	(152)
Inventories	(507)	(553)
Other current assets	17	33
Trade accounts payable	789	160
Accrued expenses and other liabilities	(309)	(79)
Income taxes	154	92
Other non-current assets and liabilities	166	60
Net cash provided by operating activities	3,382	3,085
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(639)	(657)
Proceeds from sale leaseback transactions	436	60
Proceeds from sale of businesses	0	43
Proceeds from sale of other assets	22	85
Business and intangible asset acquisitions, net of cash received	(52)	(86)
Other	36	3
Net cash used for investing activities	(197)	(552)
Cash Flows from Financing Activities:
Proceeds and payments from short-term borrowings, net	76	61
Payments of long-term debt	(9)	(81)
Stock purchases	(457)	(1,152)
Proceeds related to employee stock plans	116	129
Cash dividends paid	(817)	(787)
Other	(31)	(29)
Net cash used for financing activities	(1,122)	(1,859)
Effect of exchange rate changes on cash and cash equivalents	(48)	(88)
Changes in Cash and Cash Equivalents:
Net increase in cash and cash equivalents	2,015	586
Cash and cash equivalents at beginning of period	9,807	3,000
Cash and cash equivalents at end of period	$ 11,822	$ 3,586

Accounting Policies

Accounting Policies	6 Months Ended
	Feb. 28, 2017
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the "Company") included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions have been eliminated. The Consolidated Condensed Balance Sheet as of February 28, 2017 , the Consolidated Condensed Statement of Equity for the six months ended February 28, 2017 , and the Consolidated Condensed Statements of Earnings, the Consolidated Condensed Statements of Comprehensive Income and the Consolidated Condensed Statements of Cash Flows for the three and six months ended February 28, 2017 and February 29, 2016 are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2016 . In the opinion of the Company, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments (consisting only of normal recurring adjustments) necessary to present a fair statement of the results for such interim periods. The influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payer and customer relationships and terms and other factors on the Company’s operations, net earnings for any period may not be comparable to the same period in previous years. With respect to the Company’s Retail Pharmacy USA segment, the positive impact on gross margins and gross profit dollars typically has been significant in the first several months after a generic version of a drug is first allowed to compete with the branded version, which is generally referred to as a “generic conversion.” In any given year, the number of major brand name drugs that undergo a conversion from branded to generic status can increase or decrease, which can have a significant impact on the Company’s Retail Pharmacy USA segment’s sales, gross margin and gross profit dollars making the Company’s operations or net earnings for any period incomparable. To improve comparability, certain classification changes were made to prior periods to conform to current year classifications. These reclassifications were made in the fourth quarter of fiscal 2016. On October 27, 2015, Walgreens Boots Alliance entered into an Agreement and Plan of Merger with Rite Aid Corporation (“Rite Aid”) and Victoria Merger Sub, Inc., a wholly-owned subsidiary of Walgreens Boots Alliance (as amended as described below, the “Merger Agreement”), pursuant to which the Company agreed, subject to the terms and conditions thereof, to acquire Rite Aid, a drugstore chain in the United States with 4,547 stores in 31 states and the District of Columbia as of November 26, 2016. The Merger Agreement was amended by Amendment No. 1 (the “Amendment”) on January 29, 2017. Under the terms of the Amendment, the parties agreed to reduce the price for each share of Rite Aid common stock to be paid by Walgreens Boots Alliance upon closing to a maximum of $7.00 per share and a minimum of $6.50 per share. In addition, Walgreens Boots Alliance will be required to divest up to 1,200 Rite Aid stores and certain additional related assets if required to obtain regulatory approval. The exact price per share will be determined based on the number of required store divestitures, with the price set at $7.00 per share if 1,000 stores or fewer are required for divestiture and at $6.50 per share if 1,200 stores are required for divestiture. If the required divestitures fall between 1,000 and 1,200 stores, then there will be a pro-rata adjustment of the price per share. Additionally, Walgreens Boots Alliance and Rite Aid agreed to extend the end date under the Merger Agreement to July 31, 2017 in order to allow the parties additional time to obtain regulatory approval. The transaction is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. On December 20, 2016, Walgreens Boots Alliance and Rite Aid announced that they have entered into an agreement to sell 865 Rite Aid stores and certain assets related to store operations to Fred’s, Inc. (“Fred’s”) for $950 million in an all-cash transaction. The transaction is subject to Federal Trade Commission (“FTC”) approval, the approval and completion of the pending acquisition of Rite Aid by Walgreens Boots Alliance pursuant to the Merger Agreement, and other customary closing conditions. If the FTC requires divestiture of more than the 865 Rite Aid stores currently contemplated by the purchase agreement and Walgreens Boots Alliance agrees to sell such stores, the purchase agreement requires Fred’s to purchase such additional stores.

Restructuring

Restructuring	6 Months Ended
	Feb. 28, 2017
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring On April 8, 2015, the Walgreens Boots Alliance Board of Directors approved a plan to implement a new restructuring program (the “Cost Transformation Program”) as part of an initiative to reduce costs and increase operating efficiencies. The Cost Transformation Program implemented and built on the cost-reduction initiative previously announced by the Company on August 6, 2014 and included plans to close stores across the U.S.; reorganize corporate and field operations; drive operating efficiencies; and streamline information technology and other functions. The actions under the Cost Transformation Program focus primarily on the Retail Pharmacy USA segment. From inception through February 28, 2017 , the Company incurred pre-tax charges of $1.4 billion ( $563 million related to asset impairment charges, $542 million in real estate costs and $282 million in severance and other business transition and exit costs) related to the Cost Transformation Program. All charges related to the Cost Transformation Program have been recorded within selling, general and administrative expenses. Restructuring charges are recognized as the costs are incurred in accordance with GAAP. Restructuring costs by segment are as follows (in millions): Three Months Ended February 28, 2017 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Asset impairments $ 65 $ 1 $ 1 $ 67 Real estate costs 240 — — 240 Severance and other business transition and exit costs 11 18 4 33 Total restructuring costs $ 316 $ 19 $ 5 $ 340 Three Months Ended February 29, 2016 Asset impairments $ — $ — $ — $ — Real estate costs — — — — Severance and other business transition and exit costs 25 3 — 28 Total restructuring costs $ 25 $ 3 $ — $ 28 Six Months Ended February 28, 2017 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Asset impairments $ 111 $ 3 $ 1 $ 115 Real estate costs 249 — — 249 Severance and other business transition and exit costs 28 22 7 57 Total restructuring costs $ 388 $ 25 $ 8 $ 421 Six Months Ended February 29, 2016 Asset impairments $ 25 $ — $ — $ 25 Real estate costs 52 — — 52 Severance and other business transition and exit costs 33 8 — 41 Total restructuring costs $ 110 $ 8 $ — $ 118 The changes in Accrued expenses related to the Cost Transformation Program include the following (in millions): Asset Impairments Real estate costs Severance and other business transition and exit costs Total Balance at August 31, 2016 $ — $ 248 $ 27 $ 275 Restructuring Costs 115 249 57 421 Payments — (28 ) (29 ) (57 ) Other - non cash (115 ) — (13 ) (128 ) Currency translation adjustments — — (1 ) (1 ) Balance at February 28, 2017 $ — $ 469 $ 41 $ 510

Operating Leases

Operating Leases	6 Months Ended
	Feb. 28, 2017
Leases [Abstract]
Operating Leases	Operating Leases Initial lease term for premises in the U.S. is typically 15 to 25 years, followed by additional terms containing renewal options at five -year intervals, and may include rent escalation clauses. Non-U.S. leases are typically for shorter terms and may include cancellation clauses or renewal options. The commencement date of all lease terms is the earlier of the date the Company becomes legally obligated to make rent payments or the date the Company has the right to control the property. The Company recognizes rent expense on a straight-line basis over the term of the lease. In addition to minimum fixed rentals, some leases provide for contingent rentals based upon a portion of sales. The Company continuously evaluates its real estate portfolio in conjunction with its capital needs. The Company has entered into several sale-leaseback transactions. For the six months ended February 28, 2017 and February 29, 2016 , the Company recorded proceeds from sale-leaseback transactions of $436 million and $60 million , respectively. The Company has determined it no longer has continuing involvement related to these transactions and in accordance with the accounting standards related to sale-leaseback transactions has recognized any loss on sale immediately, any gain on sale was deferred and amortized over the life of the lease. Gains and losses are recorded within selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings. The Company provides for future costs related to closed locations. The liability is based on the present value of future rent obligations and other related costs (net of estimated sublease rent) to the first lease option date. During the three and six months ended February 28, 2017 , the Company recorded charges of $247 million and $264 million for facilities that were closed or relocated under long-term leases, including stores closed through the Company’s restructuring activities. This compares to $9 million and $75 million for the three and six months ended February 29, 2016 . These charges are reported in selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings. The changes in reserve for facility closings and related lease termination charges include the following (in millions): For the six months ended February 28, 2017 For the twelve months ended August 31, 2016 Balance at beginning of period $ 466 $ 446 Provision for present value of non-cancellable lease payments on closed facilities 258 134 Assumptions about future sublease income, terminations and changes in interest rates (10 ) (34 ) Interest accretion 16 27 Cash payments, net of sublease income (59 ) (107 ) Balance at end of period $ 671 $ 466 As of February 28, 2017 , the Company remains secondarily liable on 71 leases. The maximum potential undiscounted future payments are $335 million as of February 28, 2017 .

Equity Method Investments

Equity Method Investments	6 Months Ended
	Feb. 28, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Equity Method Investments Equity method investments as of February 28, 2017 and August 31, 2016 , are as follows (in millions, except percentages): February 28, 2017 August 31, 2016 Carrying Value Ownership Percentage Carrying Value Ownership Percentage AmerisourceBergen $ 4,982 26% $ 4,964 24% Others 1,182 12% - 50% 1,210 12% - 50% Total $ 6,164 $ 6,174 AmerisourceBergen Investment As of February 28, 2017 and August 31, 2016 , the Company owned 56,854,867 AmerisourceBergen Corporation (“AmerisourceBergen”) common shares, representing approximately 26% and 24% of the outstanding AmerisourceBergen common stock, respectively. The Company accounts for its equity investment in AmerisourceBergen using the equity method of accounting, with the net earnings attributable to the Company’s investment being classified within the operating income of its Pharmaceutical Wholesale segment. Due to the timing and availability of financial information of AmerisourceBergen, the Company accounts for this equity method investment on a financial reporting lag of two months . Equity earnings from AmerisourceBergen is reported as a separate line in the Consolidated Condensed Statements of Earnings. The level 1 fair market value of the Company’s equity investment in AmerisourceBergen common stock at February 28, 2017 is $5.2 billion . The Company’s investment in AmerisourceBergen carrying value exceeded its proportionate share of the net assets of AmerisourceBergen by $4.4 billion . This premium of $4.4 billion was recognized as part of the carrying value in the Company’s equity investment in AmerisourceBergen. The difference was primarily related to goodwill and the fair value of AmerisourceBergen intangible assets. Other Investments The Company’s other equity method investments include its investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Corporation Limited, the Company’s pharmaceutical wholesale investments in China; and the equity method investment retained through the sale of a majority interest in Option Care Inc. in fiscal 2015. The Company reported $16 million and $9 million of post-tax equity earnings from equity method investments other than AmerisourceBergen for the three months ended February 28, 2017 and February 29, 2016 , respectively. The Company reported $ 28 million and $20 million of post-tax equity earnings from equity method investments other than AmerisourceBergen for the six months ended February 28, 2017 and February 29, 2016 , respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Feb. 28, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill by reportable segment consist of the following (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 Currency translation adjustments — (146 ) (167 ) (313 ) February 28, 2017 $ 9,036 $ 3,223 $ 2,955 $ 15,214 The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): February 28, 2017 August 31, 2016 Gross Amortizable Intangible Assets Customer relationships and loyalty card holders $ 1,764 $ 1,867 Purchased prescription files 718 932 Favorable lease interests and non-compete agreements 542 619 Trade names and trademarks 509 532 Purchasing and payer contracts 61 94 Total gross amortizable intangible assets 3,594 4,044 Accumulated amortization Customer relationships and loyalty card holders $ 328 $ 275 Purchased prescription files 415 600 Favorable lease interests and non-compete agreements 344 388 Trade names and trademarks 129 105 Purchasing and payer contracts 39 71 Total accumulated amortization 1,255 1,439 Total amortizable intangible assets, net $ 2,339 $ 2,605 Indefinite lived Intangible Assets Trade names and trademarks $ 5,323 $ 5,604 Pharmacy licenses 1,988 2,093 Total indefinite lived intangible assets $ 7,311 $ 7,697 Total intangible assets, net $ 9,650 $ 10,302 Amortization expense for intangible assets was $94 million and $189 million for the three and six months ended February 28, 2017 , and $124 million and $216 million for the three and six months ended February 29, 2016 , respectively. Estimated annual amortization expense for intangible assets recorded at February 28, 2017 is as follows (in millions): 2017 2018 2019 2020 2021 Estimated annual amortization expense $ 357 $ 326 $ 295 $ 236 $ 194

Borrowings

Borrowings	6 Months Ended
	Feb. 28, 2017
Debt Disclosure [Abstract]
Borrowings	Borrowings Borrowings consist 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) February 28, 2017 August 31, 2016 Short-Term Borrowings ( 1 ) 1.750% unsecured notes due November 2017 ( 5 )(7) $ 748 $ — Unsecured Pound Sterling variable rate term loan due 2019 90 63 Other (2) 315 260 Total short-term borrowings $ 1,153 $ 323 Long-Term Debt (1) Unsecured Pound Sterling variable rate term loan due 2019 $ 1,711 $ 1,833 $6 Billion Note Issuance (5)(7) 1.750% unsecured notes due 2018 1,247 1,246 2.600% unsecured notes due 2021 1,494 1,493 3.100% unsecured notes due 2023 745 744 3.450% unsecured notes due 2026 1,886 1,885 4.650% unsecured notes due 2046 590 590 $8 Billion Note Issuance (5)(7) 1.750% unsecured notes due 2017 — 746 2.700% unsecured notes due 2019 1,245 1,244 3.300% unsecured notes due 2021 1,243 1,242 3.800% unsecured notes due 2024 1,987 1,987 4.500% unsecured notes due 2034 494 494 4.800% unsecured notes due 2044 1,492 1,492 £700 Million Note Issuance (1)(5)(7) 2.875% unsecured Pound Sterling notes due 2020 495 521 3.600% unsecured Pound Sterling notes due 2025 371 391 €750 Million Note Issuance (1)(5)(7) 2.125% unsecured Euro notes due 2026 790 830 $4 Billion Note Issuance (6)(7) 3.100% unsecured notes due 2022 1,194 1,194 4.400% unsecured notes due 2042 492 492 $1 Billion Note Issuance (6)(7) 5.250% unsecured notes due 2019 (3) 249 249 Other (4) 33 32 Total long-term debt, less current portion $ 17,758 $ 18,705 (1) All notes 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 February 28, 2017 and August 31, 2016 , respectively. (2) Other short-term borrowings represent a mix of fixed and variable rate borrowings with various maturities and working capital facilities denominated in various foreign currencies. (3) Includes interest rate swap fair market value adjustments. See Note 8, Fair Value Measurements for additional fair value disclosures. (4) Other long-term debt represents a mix of fixed and variable rate borrowings in various foreign currencies with various maturities. (5) 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. (6) Notes are senior debt obligations of Walgreens and rank equally with all other unsecured and unsubordinated indebtedness of Walgreens. 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. (7) The fair value & carrying value of the $6 billion , $8 billion , £0.7 billion , €0.75 billion , $4 billion and $1 billion note issuances as of February 28, 2017 was $6.0 billion & $6.0 billion , $7.4 billion & $7.2 billion , $0.9 billion & $0.9 billion , $0.8 billion & $0.8 billion , $1.7 billion & $1.7 billion and $0.3 billion & $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 February 28, 2017 spot rate, as applicable. Backstop Commitment Letter, Backstop Credit Agreement and 2017 Term Loan Credit Agreements In connection with Amendment No. 1 to the Merger Agreement, on January 31, 2017, the Company entered into (i) a $5.0 billion backstop facility commitment letter (the “Backstop Commitment Letter”) and (ii) a $5.0 billion unsecured bridge term loan facility (the “Backstop Credit Agreement”). Upon entry into the Backstop Credit Agreement, the Backstop Commitment Letter and the commitments contemplated thereby terminated. On February 22, 2017, the Company entered into (a) a $4.8 billion unsecured term loan facility with the lenders party thereto (the “Syndicated Credit Agreement”) and (b) a $1.0 billion unsecured term loan facility with Sumitomo Mitsui Banking Corporation, as lender and administrative agent (the “Sumitomo Credit Agreement” and, together with the Syndicated Credit Agreement, the “2017 Term Loan Credit Agreements”). In connection therewith, as of such date the commitments available under the Backstop Credit Agreement were reduced to zero and such agreement terminated in accordance with its terms. The Syndicated Credit Agreement is a two -tranche unsecured term loan facility (each tranche in an amount of $2.4 billion ), with the first tranche maturing October 27, 2019 and the second tranche maturing October 27, 2021, provided that the Company may increase the commitments available under either of the tranches of the Syndicated Credit Agreement at any time prior to the funding date thereunder by up to $450 million , subject to obtaining commitments from existing lenders and/or new lenders selected by the Company and reasonably acceptable to Bank of America, N.A., as administrative agent. The Sumitomo Credit Agreement is a two -tranche unsecured term loan facility (each tranche in an amount of $500 million ), with the first tranche maturing on the first anniversary of the funding date thereunder and the second tranche maturing on the earlier of the first anniversary of the funding date thereunder and March 30, 2018. Walgreens Boots Alliance will be the borrower under each of the 2017 Term Loan Credit Agreements. The obligations of the lenders party to each of the 2017 Term Loan Credit Agreements to fund the loans thereunder become effective upon the date of closing of the transactions contemplated by the Merger Agreement. The ability of the Company to request the funding of loans under each of the 2017 Term Loan Credit Agreements is subject to the satisfaction (or waiver) of certain customary "limited conditions" set forth therein and will terminate upon the occurrence of certain events set forth therein. Commitments to provide loans under each of the 2017 Term Loan Credit Agreements will expire on the earliest of (a) the date of consummation of the acquisition by Walgreens Boots Alliance (the “Acquisition”) of all the issued and outstanding equity interests of Rite Aid (provided that loans may be funded on such date), (b) prior to the consummation of the Acquisition, the termination of the Merger Agreement by Walgreens Boots Alliance or with the written consent of Walgreens Boots Alliance in accordance with its terms (other than with respect to provisions therein that expressly survive termination), (c) 11:59 p.m., New York time, on July 31, 2017; provided that Walgreens Boots Alliance may extend such date to October 31, 2017 on prior written notice to the respective Administrative Agent and lenders thereunder, and (d) the date of termination in whole of the lender’s commitments under each applicable 2017 Term Loan Credit Agreement in accordance with the terms thereof. As of February 28, 2017, there were no borrowings under either of the 2017 Term Loan Credit Agreements. 2017 Revolving Credit Agreement On February 1, 2017, the Company entered into a $1.0 billion revolving credit facility (the “2017 Revolving Credit Agreement”) with the lenders from time to time party thereto. The Company will be the borrower under the 2017 Revolving Credit Agreement, which terminates on the earlier of (a) 364 days following the effective date thereof, subject to the extension thereof pursuant to provisions specified in the Revolving Credit Agreement, and (b) the date of termination in whole of the aggregate commitment pursuant to the Revolving Credit Agreement. The ability of the Company to request the making of loans under the 2017 Revolving Credit Agreement is subject to the satisfaction (or waiver) of certain customary conditions set forth therein (including a separate set of customary “limited conditions” applicable to any loans made for the sole purpose of financing the Acquisition). As of February 28, 2017, there were no borrowings under the 2017 Revolving Credit Agreement. $6.0 billion Note Issuance On June 1, 2016, Walgreens Boots Alliance received net proceeds (after deducting underwriting discounts and offering expenses) of $6.0 billion from a public offering of five series of U.S. dollar notes with varying maturities and interest rates. Total issuance costs relating to the notes, including underwriting discounts and offering expenses, were $30 million . In the event that the merger contemplated by the Agreement and Plan of Merger dated as of October 27, 2015 among the Company, Rite Aid Corporation (“Rite Aid”) and Victoria Merger Sub, Inc., a wholly-owned subsidiary of the Company (as amended pursuant to Amendment No. 1 thereto, dated as of January 29, 2017, the “Merger Agreement”) is not consummated on or prior to June 1, 2017 (the first anniversary of the issuance date of the notes) or if the Merger Agreement is terminated at any time on or prior to June 1, 2017, then Walgreens Boots Alliance will be required to redeem the notes due 2018, the notes due 2021 and the notes due 2023 (but not the notes due 2026 or notes due 2046) on the date described in the applicable note at a redemption price equal to 101% of the aggregate principal amount of the notes to be redeemed, plus accrued and unpaid interest from and including the date of initial issuance, or the most recent date to which interest has been paid, whichever is later, to, but excluding, the date of redemption. The notes issued on June 1, 2016 contain redemption terms which allow or require the Company to redeem the notes at defined redemption prices plus accrued and unpaid interest at redemption dates set forth in the applicable series of notes. Interest on the notes issued on June 1, 2016 is payable semi-annually. Bridge Credit Agreement, 2015 Term Loan Credit Agreement and 2016 Term Loan Credit Agreement In connection with the pending acquisition of Rite Aid, on December 18, 2015, the Company entered into a 364 -day unsecured bridge term loan facility with initial aggregate commitments of $7.8 billion (as amended, the “Bridge Credit Agreement”) and a $5.0 billion unsecured term loan facility (as amended, the “2015 Term Loan Credit Agreement”) and on August 30, 2016, the Company entered into a $1.0 billion senior unsecured term loan facility (the “2016 Term Loan Credit Agreement”). On January 27, 2017, each of the Bridge Credit Agreement, the 2015 Term Loan Credit Agreement, and the 2016 Term Loan Credit Agreement terminated in accordance with its terms. Debt covenants The Company’s credit facilities contain a covenant to maintain, as of the last day of each fiscal quarter, a ratio of consolidated debt to total capitalization not to exceed 0.60 :1.00. The credit facilities contain various other customary covenants. In the case of the 2017 Term Loan Credit Agreements, such covenants are not in effect until the loans under each such credit facility are funded. Other Borrowings The Company periodically borrows under its commercial paper program. There were no commercial paper borrowings outstanding as of February 28, 2017 or August 31, 2016 , respectively. The Company had no activity under its commercial paper program for the six months ended February 28, 2017 . The Company had average daily short-term borrowings of $20 million of commercial paper outstanding at a weighted average interest rate of 0.62% for the six month period ended February 29, 2016 .

Financial Instruments

Financial Instruments	6 Months Ended
	Feb. 28, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Financial Instruments The Company uses derivative instruments to manage its exposure to interest rate and foreign currency exchange risks. The notional amounts, fair value and balance sheet presentation of derivative instruments outstanding as of February 28, 2017 and August 31, 2016 are as follows (in millions): February 28, 2017 August 31, 2016 Notional (1) Fair Value Notional (1) Fair Value Location in Consolidated Condensed Balance Sheets Derivatives designated as fair value hedges: Interest rate swaps 250 1 — — Other non-current liabilities Interest rate swaps — — 250 3 Other non-current assets Derivatives not designated as hedges: Foreign currency forwards 253 2 1,177 16 Other current assets Foreign currency forwards 1,052 11 41 — Other current liabilities Basis swaps 2 1 — — Other current liabilities Basis swaps — — 2 1 Other current assets (1) Amounts are presented in U.S. dollar equivalents, as applicable. The Company uses interest rate swaps to manage the interest rate exposure associated with some of its fixed-rate borrowings and designates them as fair value hedges. The Company uses forward starting interest rate swaps to hedge its interest rate exposure of some of its anticipated debt issuances. The Company utilizes foreign currency forward contracts and other foreign currency derivatives to hedge significant committed and highly probable future transactions and cash flows denominated in currencies other than the functional currency of the Company or its subsidiaries. The Company has significant non-U.S. dollar denominated net investments and uses foreign currency denominated financial instruments, specifically foreign currency derivatives and foreign currency denominated debt, to hedge its foreign currency risk. Fair Value Hedges The Company holds interest rate swaps converting $250 million of its 5.250% fixed rate notes to a floating interest rate based on the six-month LIBOR in arrears plus a constant spread. All swap termination dates coincide with the notes maturity date, January 15, 2019. These swaps were designated as fair value hedges. The gains and losses due to changes in fair value on the swaps and on the hedged notes attributable to interest rate risk were not material. The changes in fair value of the Company’s debt that was swapped from fixed to variable rate and designated as fair value hedges are included in long-term debt on the Consolidated Condensed Balance Sheets (see Note 6, Borrowings). At February 28, 2017 and August 31, 2016 , the cumulative fair value adjustments resulted in a decrease in long-term debt of $1 million and an increase of $3 million , respectively. No material gains or losses were recorded from ineffectiveness during the three and six months ended February 28, 2017 . Derivatives not Designated as Hedges The Company enters into derivative transactions that are not designated as accounting hedges. These derivative instruments are economic hedges of foreign currency risks. The gains and (losses) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions): Three Months Ended Six Months Ended Location in Consolidated Condensed Statements of Earnings February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Foreign currency forwards Selling, general and administrative expense $ (2 ) $ (23 ) $ 47 $ (25 ) Foreign currency forwards Other income (expense) $ (15 ) $ 33 $ (14 ) $ 33 Derivatives Credit Risk Counterparties to derivative financial instruments expose the Company to credit-related losses in the event of counterparty nonperformance, and the Company regularly monitors the credit worthiness of each counterparty. Derivatives Offsetting The Company does not offset the fair value amounts of derivative instruments subject to master netting agreements in the Consolidated Condensed Balance Sheets.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Feb. 28, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures certain assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In addition, it establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels: Level 1 - Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable inputs other than quoted prices in active markets. Level 3 - Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to Level 3 inputs. Assets and liabilities measured at fair value on a recurring basis are as follows (in millions): February 28, 2017 Level 1 Level 2 Level 3 Assets : Restricted cash (1) $ 170 $ 170 $ — $ — Money market funds (2) 10,106 10,106 — — Available-for-sale investments (3) 28 28 — — Foreign currency forwards (4) 2 — 2 Liabilities : Foreign currency forwards (4) 11 — 11 — Basis swaps (4) 1 — 1 — Interest rate swaps (5) 1 — 1 — August 31, 2016 Level 1 Level 2 Level 3 Assets : Restricted cash (1) $ 185 $ 185 $ — $ — Money market funds (2) 9,133 9,133 — — Available-for-sale investments (3) 32 32 — — Interest rate swaps (5) 3 — 3 — Foreign currency forwards (4) 16 — 16 — Liabilities : Basis swaps (4) 1 — 1 — (1) Restricted cash consists of deposits restricted under agency agreements and cash restricted by law and other obligations. (2) Money market funds are valued at the closing price reported by the fund sponsor. (3) Fair values of quoted investments are based on current bid prices as of the balance sheet dates. (4) The fair value of basis swaps and forward currency contracts is estimated by discounting the difference between the contractual forward price and the current available forward price for the residual maturity of the contract using observable market rates. (5) The fair value of interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 7, Financial Instruments for additional information. There were no transfers between levels for the three and six months ended February 28, 2017 . The Company reports its debt instruments under the guidance of ASC Topic 825, Financial Instruments, which requires disclosure of the fair value of the Company’s debt in the footnotes to the consolidated financial statements. Unless otherwise noted, the fair value for all notes was determined based upon quoted market prices and therefore categorized as Level 1. See Note 6, Borrowings for further information. The carrying values of accounts receivable and trade accounts payable approximated their respective fair values due to their short-term nature.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Feb. 28, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is involved in legal proceedings and is subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities, arising in the normal course of the Company’s business, including the matters described below. Legal proceedings, in general, and securities and class action litigation, in particular, can be expensive and disruptive. Some of these suits may purport or may be determined to be class actions and/or involve parties seeking large and/or indeterminate amounts, including punitive or exemplary damages, and may remain unresolved for several years. From time to time, the Company is also involved in legal proceedings as a plaintiff involving antitrust, tax, contract, intellectual property and other matters. Gain contingencies, if any, are recognized when they are realized. The results of legal proceedings are often uncertain and difficult to predict, and the costs incurred in litigation can be substantial, regardless of the outcome. The Company believes that its defenses and assertions in pending legal proceedings have merit, and does not believe that any of these pending matters, after consideration of applicable reserves and rights to indemnification, will have a material adverse effect on the Company’s consolidated financial position. However, substantial unanticipated verdicts, fines and rulings do sometimes occur. As a result, the Company could from time to time incur judgments, enter into settlements or revise its expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on its results of operations in the period in which the amounts are accrued and/or its cash flows in the period in which the amounts are paid. On a quarterly basis, the Company assesses its liabilities and contingencies for outstanding legal proceedings and reserves are established on a case-by-case basis for those legal claims for which management concludes that it is probable that a loss will be incurred and that the amount of such loss can be reasonably estimated. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. With respect to litigation and other legal proceedings where the Company has determined that a loss is reasonably possible, the Company is unable to estimate the amount or range of reasonably possible loss due to the inherent difficulty of predicting the outcome of and uncertainties regarding such litigation and legal proceedings. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Therefore, it is possible that an unfavorable resolution of one or more pending litigation or other contingencies could have a material adverse effect on the Company’s consolidated financial statements in a future fiscal period. Management’s assessment of current litigation and other legal proceedings, including the corresponding accruals, could change because of the discovery of facts with respect to legal actions or other proceedings pending against the Company which are not presently known. Adverse rulings or determinations by judges, juries, governmental authorities or other parties could also result in changes to management’s assessment of current liabilities and contingencies. Accordingly, the ultimate costs of resolving these claims may be substantially higher or lower than the amounts reserved. On December 29, 2014, a putative shareholder filed a derivative action in federal court in the Northern District of Illinois against certain current and former directors and officers of Walgreen Co., and Walgreen Co. as a nominal defendant, arising out of certain public statements the Company made regarding its former fiscal 2016 goals. The action asserts claims for breach of fiduciary duty, waste and unjust enrichment. On April 10, 2015, the defendants filed a motion to dismiss. On May 18, 2015, the case was stayed in light of a securities class action that was filed on April 10, 2015. After a ruling issued on September 30, 2016 in the securities class action, which is described below, on November 3, 2016, the Court entered a stipulation and order extending the stay until the securities case is fully resolved. On April 10, 2015, a putative shareholder filed a securities class action in federal court in the Northern District of Illinois against Walgreen Co. and certain former officers of Walgreen Co. The action asserts claims for violation of the federal securities laws arising out of certain public statements the Company made regarding its former fiscal 2016 goals. On June 16, 2015, the Court entered an order appointing a lead plaintiff. Pursuant to the Court’s order, lead plaintiff filed an amended complaint on August 17, 2015, and defendants moved to dismiss the amended complaint on October 16, 2015. Lead plaintiff filed a response to the motion to dismiss on December 22, 2015, and defendants filed a reply in support of the motion on February 5, 2016. On September 30, 2016, the Court issued an order granting in part and denying in part defendants’ motion to dismiss. Defendants filed their answer to the amended complaint on November 4, 2016 and filed an amended answer on January 16, 2017. The Court has granted defendants’ request to bifurcate class certification and merits discovery. As of February 28, 2017 , the Company was aware of two putative class action lawsuits filed by purported Rite Aid stockholders against Rite Aid and its board of directors, Walgreens Boots Alliance and Victoria Merger Sub, Inc. for claims arising out of the transactions contemplated by the original Merger Agreement (prior to its amendment on January 29, 2017) (such transactions, the “Rite Aid Transactions”). One action was filed in the State of Pennsylvania in the Court of Common Pleas of Cumberland County (the “Pennsylvania action”), and one action was filed in the United States District Court for the Middle District of Pennsylvania (the “federal action”). The Pennsylvania action primarily alleged that the Rite Aid board of directors breached its fiduciary duties in connection with the Rite Aid Transactions by, among other things, agreeing to an unfair and inadequate price, agreeing to deal protection devices that preclude other bidders from making successful competing offers for Rite Aid, and failing to disclose all allegedly material information concerning the proposed merger, and also alleged that Walgreens Boots Alliance and Victoria Merger Sub, Inc. aided and abetted these alleged breaches of fiduciary duty. The federal action alleged, among other things, that Rite Aid and its board of directors disseminated an allegedly false and misleading proxy statement in connection with the Rite Aid Transactions. The plaintiffs in the federal action also filed a motion for preliminary injunction seeking to enjoin the Rite Aid shareholder vote relating to the Rite Aid Transactions. That motion was denied, and the Rite Aid shareholders approved the Rite Aid Transactions at a special meeting on February 4, 2016. In the federal action, plaintiffs agreed to stay the litigation until after the Rite Aid Transactions have closed, but on March 17, 2017, moved to lift the stay to allow plaintiffs to file an amended complaint. The Company has filed a response opposing this motion. The Company was also named as a defendant in eight putative class action lawsuits filed in the Court of Chancery of the State of Delaware (the “Delaware actions”). Those actions were consolidated, and plaintiffs filed a motion for preliminary injunction seeking to enjoin the Rite Aid shareholder vote relating to the Rite Aid Transactions. That motion was denied, and on April 15, 2016, the plaintiffs in the Delaware actions agreed to a settlement in principle related to this matter for an immaterial amount. The Delaware actions all have been dismissed.

Retirement Benefits

Retirement Benefits	6 Months Ended
	Feb. 28, 2017
Compensation and Retirement Disclosure [Abstract]
Retirement Benefits	Retirement Benefits The Company sponsors several retirement plans, including defined benefit plans, defined contribution plans and a postretirement health plan. Effective September 1, 2016, for UK and U.S. benefit plans previously using the yield curve approach to establish discount rates, the Company changed the method used to calculate the service cost and interest cost components of net periodic benefit costs for pension and postretirement benefit plans and will measure these costs by applying the specific spot rates along the yield curve to the plans’ projected cash flows. The Company believes the new approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and the corresponding spot yield curve rates. The change does not affect the measurement of the Company’s pension and other postretirement benefit obligations for those plans and is accounted for as a change in accounting estimate, which is applied prospectively. Defined Benefit Pension Plans (non-U.S. plans) The Company has various defined benefit pension plans outside the United States. The principal defined benefit pension plan is the Boots Pension Plan, which covers certain employees in the United Kingdom (the “Boots Plan”). The Boots Plan is a funded final salary defined benefit plan providing pensions and death benefits to members. The Boots Plan was closed to future accrual effective July 1, 2010, with pensions calculated based on salaries up until that date. The Boots Plan is governed by a trustee board, which is independent of the Company. The plan is subject to a full funding actuarial valuation on a triennial basis. Components of net periodic pension costs for the defined benefit pension plans (in millions): Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Service costs $ — $ — $ 2 $ 2 Interest costs 43 77 86 159 Expected returns on plan assets (36 ) (62 ) (73 ) (127 ) Curtailments 2 — 2 — Total net periodic pension costs $ 9 $ 15 $ 17 $ 34 The Company made cash contributions to its defined benefit pension plans of $9 million for the six months ended February 28, 2017 , which primarily related to committed funded payments. The Company plans to contribute an additional $54 million to its defined benefit pension plans in fiscal 2017 . Defined Contribution Plans The principal retirement plan for U.S. employees is the Walgreen Profit-Sharing Retirement Trust, to which both the Company and participating employees contribute. The Company’s contribution, which has historically related to adjusted FIFO earnings before interest and taxes and a portion of which is in the form of a guaranteed match, is determined annually at the discretion of the Walgreens Boots Alliance Board of Directors (or Compensation Committee thereof). The profit-sharing provision was an expense of $49 million and $106 million for the three and six months ended February 28, 2017 compared to an expense of $53 million and $111 million in the three and six months ended February 29, 2016 . The Company also has other contract based as well as statutory defined contribution schemes, including the Alliance Healthcare & Boots Retirement Savings Plan, to which both the Company and participating employees contribute. The cost recognized in the Consolidated Condensed Statements of Earnings for the three and six months ended February 28, 2017 was $28 million and $56 million compared to a cost of $34 million and $69 million in the three and six months ended February 29, 2016 . Postretirement Healthcare Plan The Company provides certain health insurance benefits to retired U.S. employees who meet eligibility requirements, including age, years of service and date of hire. The costs of these benefits are accrued over the service life of the employee.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Feb. 28, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The dilutive effect of outstanding stock options on earnings per share is calculated using the treasury stock method. Stock options are anti-dilutive and excluded from the earnings per share calculation if the exercise price exceeds the average market price of the common shares. There were 6.7 million outstanding options to purchase common shares that were anti-dilutive and excluded from the second quarter earnings per share calculation as of February 28, 2017 compared to 3.2 million as of February 29, 2016 . Anti-dilutive shares excluded from the year to date earnings per share calculation were 5.4 million compared to 2.2 million for the periods ended February 28, 2017 and February 29, 2016 , respectively.

Depreciation and Amortization

Depreciation and Amortization	6 Months Ended
	Feb. 28, 2017
Depreciation, Depletion and Amortization [Abstract]
Depreciation and Amortization	Depreciation and Amortization The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions): Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Depreciation expense $ 332 $ 346 $ 666 $ 644 Intangible asset and other amortization 81 96 165 180 Total depreciation and amortization expense $ 413 $ 442 $ 831 $ 824

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosures	6 Months Ended
	Feb. 28, 2017
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Disclosures	Supplemental Cash Flow Disclosures Interest paid was $375 million and $302 million for the six months ended February 28, 2017 and February 29, 2016 , respectively. Cash paid for income taxes was $537 million and $481 million in the six months ended February 28, 2017 and February 29, 2016 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Feb. 28, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following is a summary of net changes in accumulated other comprehensive income by component and net of tax for the three and six months ended February 28, 2017 and February 29, 2016 (in millions): Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at November 30, 2016 $ (221 ) $ 1 $ (36 ) $ (2 ) $ (3,552 ) $ (3,810 ) Other comprehensive income (loss) before reclassification adjustments 6 — — (7 ) (1 ) (2 ) Amounts reclassified from accumulated OCI — — 1 — — 1 Tax benefit (provision) (1 ) — — 3 — 2 Net other comprehensive income (loss) 5 — 1 (4 ) (1 ) 1 Balance at February 28, 2017 $ (216 ) $ 1 $ (35 ) $ (6 ) $ (3,553 ) $ (3,809 ) Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at August 31, 2016 $ (212 ) $ 2 $ (37 ) $ (1 ) $ (2,744 ) $ (2,992 ) Other comprehensive income (loss) before reclassification adjustments (5 ) (1 ) — (8 ) (809 ) (823 ) Amounts reclassified from accumulated OCI — — 3 — — 3 Tax benefit (provision) 1 — (1 ) 3 — 3 Net other comprehensive income (loss) (4 ) (1 ) 2 (5 ) (809 ) (817 ) Balance at February 28, 2017 $ (216 ) $ 1 $ (35 ) $ (6 ) $ (3,553 ) $ (3,809 ) Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at November 30, 2015 $ 32 $ 260 $ (39 ) $ — $ (911 ) $ (658 ) Other comprehensive income (loss) before reclassification adjustments (4 ) (139 ) — — (1,121 ) (1,264 ) Amounts reclassified from accumulated OCI — — 2 — — 2 Tax benefit (provision) 2 51 (1 ) — — 52 Net other comprehensive income (loss) (2 ) (88 ) 1 — (1,121 ) (1,210 ) Balance at February 29, 2016 $ 30 $ 172 $ (38 ) $ — $ (2,032 ) $ (1,868 ) Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at August 31, 2015 $ 29 $ 259 $ (40 ) $ — $ (462 ) $ (214 ) Other comprehensive income (loss) before reclassification adjustments (1 ) (144 ) — — (1,570 ) (1,715 ) Amounts reclassified from accumulated OCI — — 3 — — 3 Tax benefit (provision) 2 57 (1 ) — — 58 Net other comprehensive income (loss) 1 (87 ) 2 — (1,570 ) (1,654 ) Balance at February 29, 2016 $ 30 $ 172 $ (38 ) $ — $ (2,032 ) $ (1,868 )

Segment Reporting

Segment Reporting	6 Months Ended
	Feb. 28, 2017
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company has three reportable segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. 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, which have been aggregated as described below. 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. • The Retail Pharmacy USA segment consists of retail drugstores and convenient care clinics and the provision of specialty pharmacy services. Revenues for the segment are principally derived from the sale of prescription drugs and a wide assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards and convenience foods. • The Retail Pharmacy International segment consists primarily of pharmacy-led health and beauty stores and optical practices. Stores are located in the United Kingdom, Mexico, Chile, Thailand, Norway, the Republic of Ireland, the Netherlands and Lithuania. Revenues for the segment are principally derived from the sale of prescription drugs and retail health, beauty, toiletries and other consumer products. • The Pharmaceutical Wholesale segment consists of pharmaceutical wholesaling and distribution businesses and an equity method investment in AmerisourceBergen reported on a two-month lag. Wholesale operations are located in France, the United Kingdom, Germany, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, Czech Republic and Lithuania. Revenues for the segment are principally derived from wholesaling and distribution of a comprehensive offering of brand-name pharmaceuticals (including specialty pharmaceutical products) and generic pharmaceuticals, health and beauty products, home healthcare supplies and equipment, and related services to pharmacies and other healthcare providers. Results for each reportable segment include the allocation of procurement rebates and corporate-related overhead costs. The “Eliminations” column includes intersegment sales and the profit on these intersegment sales to the extent the inventory has not been subsequently sold externally. To improve comparability, certain classification changes were made to prior period Sales, Cost of sales and Selling, general and administrative expenses. These changes had no impact on Operating Income or Adjusted Operating Income. The reclassifications were made in the fourth quarter of fiscal 2016. The following table reflects results of operations of the Company’s reportable segments (in millions): Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Three Months Ended February 28, 2017 Sales to external customers $ 21,814 $ 3,101 $ 4,531 $ — $ 29,446 Intersegment sales — — 499 (499 ) — Sales $ 21,814 $ 3,101 $ 5,030 $ (499 ) $ 29,446 Adjusted Operating Income $ 1,552 $ 242 $ 226 $ (4 ) $ 2,016 Three Months Ended February 29, 2016 Sales to external customers $ 21,500 $ 3,627 $ 5,057 $ — $ 30,184 Intersegment sales — 1 570 (571 ) — Sales $ 21,500 $ 3,628 $ 5,627 $ (571 ) $ 30,184 Adjusted Operating Income $ 1,632 $ 335 $ 155 $ (2 ) $ 2,120 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Six Months Ended February 28, 2017 Sales to external customers $ 42,473 $ 6,063 $ 9,411 $ — $ 57,947 Intersegment sales — — 1,036 (1,036 ) — Sales $ 42,473 $ 6,063 $ 10,447 $ (1,036 ) $ 57,947 Adjusted Operating Income $ 2,841 $ 455 $ 450 $ (4 ) $ 3,742 Six Months Ended February 29, 2016 Sales to external customers $ 41,870 $ 7,086 $ 10,261 $ — $ 59,217 Intersegment sales — 1 1,162 (1,163 ) — Sales $ 41,870 $ 7,087 $ 11,423 $ (1,163 ) $ 59,217 Adjusted Operating Income $ 2,875 $ 650 $ 321 $ (7 ) $ 3,839 The following table reconciles adjusted operating income to operating income (in millions): Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Three Months Ended February 28, 2017 Adjusted Operating Income $ 1,552 $ 242 $ 226 $ (4 ) $ 2,016 Cost transformation (340 ) Acquisition-related amortization (82 ) LIFO provision (49 ) Adjustments to equity earnings in AmerisourceBergen (37 ) Acquisition-related costs (29 ) Operating Income $ 1,479 Three Months Ended February 29, 2016 Adjusted Operating Income $ 1,632 $ 335 $ 155 $ (2 ) $ 2,120 Cost transformation (28 ) Acquisition-related amortization (101 ) LIFO provision (68 ) Acquisition-related costs (33 ) Asset impairment (30 ) Operating Income $ 1,860 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Six Months Ended February 28, 2017 Adjusted Operating Income $ 2,841 $ 455 $ 450 $ (4 ) $ 3,742 Cost transformation (421 ) Acquisition-related amortization (164 ) LIFO provision (107 ) Adjustments to equity earnings in AmerisourceBergen (78 ) Acquisition-related costs (46 ) Operating Income $ 2,926 Six Months Ended February 29, 2016 Adjusted Operating Income $ 2,875 $ 650 $ 321 $ (7 ) $ 3,839 Cost transformation (118 ) Acquisition-related amortization (182 ) LIFO provision (114 ) Acquisition-related costs (67 ) Asset impairment (30 ) Operating Income $ 3,328

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Feb. 28, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Adoption of New Accounting Pronouncements Simplifying the Test for Goodwill Impairment In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU requires the Company to perform its annual, or applicable interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge must be recognized at the amount by which the carrying amount exceeds the fair value of the reporting unit; however, the charge recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects resulting from any tax deductible goodwill should be considered when measuring the goodwill impairment loss, if applicable. This ASU is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019 (fiscal 2021). The Company early adopted this guidance on a prospective basis during the quarter ended February 28, 2017. The adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business in order to assist companies in the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amended guidance also removes the existing evaluation of a market participant’s ability to replace missing elements and narrows the definition of output to achieve consistency with other topics. This ASU is effective for fiscal years beginning after December 15, 2016 (fiscal 2018), and interim periods within those fiscal years. The Company early adopted this guidance on a prospective basis during the quarter ended February 28, 2017. The adoption did not have any impact on the Company’s results of operations, cash flows or financial position. Interests Held Through Related Parties Under Common Control In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. This ASU amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (“VIE”) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. Under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. This ASU is effective for fiscal years beginning after December 15, 2016 (fiscal 2018), and interim periods within those fiscal years, with early adoption permitted. The Company early adopted this guidance on a modified retrospective basis during the quarter ended February 28, 2017. The adoption did not have any impact on the Company’s results of operations, cash flows or financial position. New Accounting Pronouncements Not Yet Adopted Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied on a retrospective basis. The Company is evaluating the effect this ASU will have on its consolidated statement of cash flows. Tax Accounting for Intra-entity Asset Transfers In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Topic 740, Income Taxes, prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, interpretations of this guidance have developed in practice for transfers of certain intangible and tangible assets. This prohibition on recognition is an exception to the principle of comprehensive recognition of current and deferred income taxes in GAAP. To more faithfully represent the economics of intra-entity asset transfers, the amendments in this ASU require that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU do not change GAAP for the pre-tax effects of an intra-entity asset transfer under Topic 810, Consolidation, or for an intra-entity transfer of inventory. This ASU is effective for fiscal years beginning after December 15, 2017 (fiscal 2019), including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. This ASU is effective for fiscal years beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the effect this ASU will have on its consolidated statement of cash flows. Recognition of Breakage for Prepaid Stored-value Products In March 2016, the FASB issued ASU 2016-04, Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products. This ASU addresses diversity in practice related to the de-recognition of a prepaid store-value product liability. The ASU amends the guidance on extinguishing financial liabilities for certain prepaid store-value products. If an entity selling prepaid store-value products expects to be entitled to an amount that will not be redeemed, the entity will recognize the expected breakage in proportion to the pattern of rights expected to be exercised by the product holder to the extent that it is probable that a significant reversal of the breakage amount will not subsequently occur. The ASU is effective for annual periods beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years, with early adoption permitted, including adoption before the effective date of ASU 2015-14, Revenue from Contracts with Customers (described below). The amendments in this ASU should be applied either using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective or retrospectively to each period presented. The Company is evaluating the effect the ASU will have on its consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases. This ASU increases the transparency and comparability of organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. At the lease commencement date, lessee recognizes a lease liability and right-of-use asset, which is initially measured at the present value of future lease payments. Under the finance lease approach, interest on the lease liability is recognized separately from amortization of the right-of-use asset. Repayments of the principal portion of the lease liability will be classified as financing activities and payments of interest on the lease liability and variable lease payments will be classified as operating activities in the statement of cash flows. Under the operating lease approach, the cost of the lease is calculated on a straight-line basis over the life of the lease term. All cash payments are classified as operating activities in the statement of cash flows. For sale and leaseback transactions, in order for a sale to occur, the transfer of the asset must meet all criteria in Topic 606. Any consideration paid for the asset is accounted for as a financing transaction. For transactions previously accounted for as a sale and leaseback, the transition guidance in Topic 842 does not require an entity to assess whether the transaction would have qualified as a sale and a leaseback in accordance with Topic 842. Additionally, gains recorded under sale and leaseback transactions are recognized at the transaction date and no longer deferred over the lease term. This ASU is effective for annual periods beginning after December 15, 2018 (fiscal 2020). In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented (fiscal 2018) using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. The Company has begun evaluating and planning for the adoption and implementation of this ASU, including assessing the overall impact. This ASU will have a material impact on the Company’s financial position. The impact on the Company’s results of operations is being evaluated. The impact of this ASU is non-cash in nature and will not affect the Company’s cash position. Classification and Measurement of Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires equity investments (except those under the equity method of accounting or those that result in the consolidation of an investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This simplifies the impairment assessment of equity investments previous held at cost. Separate presentation of financial assets and liabilities by measurement category is required. This ASU is effective prospectively for annual periods beginning after December 15, 2017 (fiscal 2019). Early application is permitted, for fiscal years or interim periods that have not yet been issued as of the beginning of the fiscal year of adoption. The Company is evaluating the effect of adopting this new accounting guidance. Revenue Recognition on Contracts with Customers In May 2015, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU removes inconsistencies, complexities and allows transparency and comparability of revenue transactions across entities, industries, jurisdictions and capital markets by providing a single comprehensive principles-based model with additional disclosures regarding uncertainties. The principles-based revenue recognition model has a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017 (fiscal 2019) and is the date on which the Company expects to adopt the new guidance. Subsequently, the FASB has also issued additional accounting standards updates to clarify the guidance in ASU 2014-09, all of which must be adopted concurrently. In transition, the ASU may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is evaluating the effect of adopting this new accounting guidance. Measurement of Inventory In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU simplifies current accounting treatments by requiring entities to measure most inventories at “the lower of cost and net realizable value” rather than using lower of cost or market. This guidance does not apply to inventories measured using last-in, first-out method or the retail inventory method. This ASU is effective prospectively for annual periods beginning after December 15, 2016 and interim periods thereafter (fiscal 2018) with early adoption permitted. Upon transition, entities must disclose the accounting change. The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company’s results of operations, cash flows or financial position.

Related Parties

Related Parties	6 Months Ended
	Feb. 28, 2017
Related Party Transactions [Abstract]
Related Parties	Related Parties The Company has a long-term pharmaceutical distribution agreement with AmerisourceBergen pursuant to which the Company sources branded and generic pharmaceutical products from AmerisourceBergen principally for its U.S. operations. Related party transactions (in millions): Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Purchases, net $ 10,602 $ 10,481 $ 21,238 $ 20,804 February 28, 2017 August 31, 2016 Trade accounts payable, net $ 4,207 $ 3,456 Additionally, AmerisourceBergen receives sourcing services for generic pharmaceutical products.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Feb. 28, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Consolidated Condensed Financial Statements of Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance” or the "Company") included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. The Consolidated Condensed Financial Statements include all subsidiaries in which the Company holds a controlling interest. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions have been eliminated. The Consolidated Condensed Balance Sheet as of February 28, 2017 , the Consolidated Condensed Statement of Equity for the six months ended February 28, 2017 , and the Consolidated Condensed Statements of Earnings, the Consolidated Condensed Statements of Comprehensive Income and the Consolidated Condensed Statements of Cash Flows for the three and six months ended February 28, 2017 and February 29, 2016 are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited financial statements and the notes thereto included in the Walgreens Boots Alliance Annual Report on Form 10-K for the fiscal year ended August 31, 2016 . In the opinion of the Company, the unaudited Consolidated Condensed Financial Statements for the interim periods presented include all adjustments (consisting only of normal recurring adjustments) necessary to present a fair statement of the results for such interim periods. The influence of certain holidays, seasonality, foreign currency rates, changes in vendor, payer and customer relationships and terms and other factors on the Company’s operations, net earnings for any period may not be comparable to the same period in previous years. With respect to the Company’s Retail Pharmacy USA segment, the positive impact on gross margins and gross profit dollars typically has been significant in the first several months after a generic version of a drug is first allowed to compete with the branded version, which is generally referred to as a “generic conversion.” In any given year, the number of major brand name drugs that undergo a conversion from branded to generic status can increase or decrease, which can have a significant impact on the Company’s Retail Pharmacy USA segment’s sales, gross margin and gross profit dollars making the Company’s operations or net earnings for any period incomparable. To improve comparability, certain classification changes were made to prior periods to conform to current year classifications. These reclassifications were made in the fourth quarter of fiscal 2016. On October 27, 2015, Walgreens Boots Alliance entered into an Agreement and Plan of Merger with Rite Aid Corporation (“Rite Aid”) and Victoria Merger Sub, Inc., a wholly-owned subsidiary of Walgreens Boots Alliance (as amended as described below, the “Merger Agreement”), pursuant to which the Company agreed, subject to the terms and conditions thereof, to acquire Rite Aid, a drugstore chain in the United States with 4,547 stores in 31 states and the District of Columbia as of November 26, 2016. The Merger Agreement was amended by Amendment No. 1 (the “Amendment”) on January 29, 2017. Under the terms of the Amendment, the parties agreed to reduce the price for each share of Rite Aid common stock to be paid by Walgreens Boots Alliance upon closing to a maximum of $7.00 per share and a minimum of $6.50 per share. In addition, Walgreens Boots Alliance will be required to divest up to 1,200 Rite Aid stores and certain additional related assets if required to obtain regulatory approval. The exact price per share will be determined based on the number of required store divestitures, with the price set at $7.00 per share if 1,000 stores or fewer are required for divestiture and at $6.50 per share if 1,200 stores are required for divestiture. If the required divestitures fall between 1,000 and 1,200 stores, then there will be a pro-rata adjustment of the price per share. Additionally, Walgreens Boots Alliance and Rite Aid agreed to extend the end date under the Merger Agreement to July 31, 2017 in order to allow the parties additional time to obtain regulatory approval. The transaction is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. On December 20, 2016, Walgreens Boots Alliance and Rite Aid announced that they have entered into an agreement to sell 865 Rite Aid stores and certain assets related to store operations to Fred’s, Inc. (“Fred’s”) for $950 million in an all-cash transaction. The transaction is subject to Federal Trade Commission (“FTC”) approval, the approval and completion of the pending acquisition of Rite Aid by Walgreens Boots Alliance pursuant to the Merger Agreement, and other customary closing conditions. If the FTC requires divestiture of more than the 865 Rite Aid stores currently contemplated by the purchase agreement and Walgreens Boots Alliance agrees to sell such stores, the purchase agreement requires Fred’s to purchase such additional stores.

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Feb. 28, 2017
Restructuring and Related Activities [Abstract]
Restructuring Costs by Segment	Restructuring costs by segment are as follows (in millions): Three Months Ended February 28, 2017 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Asset impairments $ 65 $ 1 $ 1 $ 67 Real estate costs 240 — — 240 Severance and other business transition and exit costs 11 18 4 33 Total restructuring costs $ 316 $ 19 $ 5 $ 340 Three Months Ended February 29, 2016 Asset impairments $ — $ — $ — $ — Real estate costs — — — — Severance and other business transition and exit costs 25 3 — 28 Total restructuring costs $ 25 $ 3 $ — $ 28 Six Months Ended February 28, 2017 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Walgreens Boots Alliance, Inc. Asset impairments $ 111 $ 3 $ 1 $ 115 Real estate costs 249 — — 249 Severance and other business transition and exit costs 28 22 7 57 Total restructuring costs $ 388 $ 25 $ 8 $ 421 Six Months Ended February 29, 2016 Asset impairments $ 25 $ — $ — $ 25 Real estate costs 52 — — 52 Severance and other business transition and exit costs 33 8 — 41 Total restructuring costs $ 110 $ 8 $ — $ 118
Accrued Expenses Related to Cost Transformation	The changes in Accrued expenses related to the Cost Transformation Program include the following (in millions): Asset Impairments Real estate costs Severance and other business transition and exit costs Total Balance at August 31, 2016 $ — $ 248 $ 27 $ 275 Restructuring Costs 115 249 57 421 Payments — (28 ) (29 ) (57 ) Other - non cash (115 ) — (13 ) (128 ) Currency translation adjustments — — (1 ) (1 ) Balance at February 28, 2017 $ — $ 469 $ 41 $ 510

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Feb. 28, 2017
Leases [Abstract]
Reserve for Facility Closings and Related Lease Termination Charges	The changes in reserve for facility closings and related lease termination charges include the following (in millions): For the six months ended February 28, 2017 For the twelve months ended August 31, 2016 Balance at beginning of period $ 466 $ 446 Provision for present value of non-cancellable lease payments on closed facilities 258 134 Assumptions about future sublease income, terminations and changes in interest rates (10 ) (34 ) Interest accretion 16 27 Cash payments, net of sublease income (59 ) (107 ) Balance at end of period $ 671 $ 466

Equity Method Investments (Tabl

Equity Method Investments (Tables)	6 Months Ended
	Feb. 28, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Equity method investments as of February 28, 2017 and August 31, 2016 , are as follows (in millions, except percentages): February 28, 2017 August 31, 2016 Carrying Value Ownership Percentage Carrying Value Ownership Percentage AmerisourceBergen $ 4,982 26% $ 4,964 24% Others 1,182 12% - 50% 1,210 12% - 50% Total $ 6,164 $ 6,174

Goodwill and Other Intangible30

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Feb. 28, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying amount of goodwill by reportable segment consist of the following (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 Currency translation adjustments — (146 ) (167 ) (313 ) February 28, 2017 $ 9,036 $ 3,223 $ 2,955 $ 15,214
Schedule of Finite-Lived Intangible Assets by Major Class	The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): February 28, 2017 August 31, 2016 Gross Amortizable Intangible Assets Customer relationships and loyalty card holders $ 1,764 $ 1,867 Purchased prescription files 718 932 Favorable lease interests and non-compete agreements 542 619 Trade names and trademarks 509 532 Purchasing and payer contracts 61 94 Total gross amortizable intangible assets 3,594 4,044 Accumulated amortization Customer relationships and loyalty card holders $ 328 $ 275 Purchased prescription files 415 600 Favorable lease interests and non-compete agreements 344 388 Trade names and trademarks 129 105 Purchasing and payer contracts 39 71 Total accumulated amortization 1,255 1,439 Total amortizable intangible assets, net $ 2,339 $ 2,605 Indefinite lived Intangible Assets Trade names and trademarks $ 5,323 $ 5,604 Pharmacy licenses 1,988 2,093 Total indefinite lived intangible assets $ 7,311 $ 7,697 Total intangible assets, net $ 9,650 $ 10,302
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated annual amortization expense for intangible assets recorded at February 28, 2017 is as follows (in millions): 2017 2018 2019 2020 2021 Estimated annual amortization expense $ 357 $ 326 $ 295 $ 236 $ 194

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Feb. 28, 2017
Debt Disclosure [Abstract]
Short-Term Borrowings	Borrowings consist 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) February 28, 2017 August 31, 2016 Short-Term Borrowings ( 1 ) 1.750% unsecured notes due November 2017 ( 5 )(7) $ 748 $ — Unsecured Pound Sterling variable rate term loan due 2019 90 63 Other (2) 315 260 Total short-term borrowings $ 1,153 $ 323 Long-Term Debt (1) Unsecured Pound Sterling variable rate term loan due 2019 $ 1,711 $ 1,833 $6 Billion Note Issuance (5)(7) 1.750% unsecured notes due 2018 1,247 1,246 2.600% unsecured notes due 2021 1,494 1,493 3.100% unsecured notes due 2023 745 744 3.450% unsecured notes due 2026 1,886 1,885 4.650% unsecured notes due 2046 590 590 $8 Billion Note Issuance (5)(7) 1.750% unsecured notes due 2017 — 746 2.700% unsecured notes due 2019 1,245 1,244 3.300% unsecured notes due 2021 1,243 1,242 3.800% unsecured notes due 2024 1,987 1,987 4.500% unsecured notes due 2034 494 494 4.800% unsecured notes due 2044 1,492 1,492 £700 Million Note Issuance (1)(5)(7) 2.875% unsecured Pound Sterling notes due 2020 495 521 3.600% unsecured Pound Sterling notes due 2025 371 391 €750 Million Note Issuance (1)(5)(7) 2.125% unsecured Euro notes due 2026 790 830 $4 Billion Note Issuance (6)(7) 3.100% unsecured notes due 2022 1,194 1,194 4.400% unsecured notes due 2042 492 492 $1 Billion Note Issuance (6)(7) 5.250% unsecured notes due 2019 (3) 249 249 Other (4) 33 32 Total long-term debt, less current portion $ 17,758 $ 18,705 (1) All notes 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 February 28, 2017 and August 31, 2016 , respectively. (2) Other short-term borrowings represent a mix of fixed and variable rate borrowings with various maturities and working capital facilities denominated in various foreign currencies. (3) Includes interest rate swap fair market value adjustments. See Note 8, Fair Value Measurements for additional fair value disclosures. (4) Other long-term debt represents a mix of fixed and variable rate borrowings in various foreign currencies with various maturities. (5) 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. (6) Notes are senior debt obligations of Walgreens and rank equally with all other unsecured and unsubordinated indebtedness of Walgreens. 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. (7) The fair value & carrying value of the $6 billion , $8 billion , £0.7 billion , €0.75 billion , $4 billion and $1 billion note issuances as of February 28, 2017 was $6.0 billion & $6.0 billion , $7.4 billion & $7.2 billion , $0.9 billion & $0.9 billion , $0.8 billion & $0.8 billion , $1.7 billion & $1.7 billion and $0.3 billion & $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 February 28, 2017 spot rate, as applicable.
Long-Term Debt	Borrowings consist 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) February 28, 2017 August 31, 2016 Short-Term Borrowings ( 1 ) 1.750% unsecured notes due November 2017 ( 5 )(7) $ 748 $ — Unsecured Pound Sterling variable rate term loan due 2019 90 63 Other (2) 315 260 Total short-term borrowings $ 1,153 $ 323 Long-Term Debt (1) Unsecured Pound Sterling variable rate term loan due 2019 $ 1,711 $ 1,833 $6 Billion Note Issuance (5)(7) 1.750% unsecured notes due 2018 1,247 1,246 2.600% unsecured notes due 2021 1,494 1,493 3.100% unsecured notes due 2023 745 744 3.450% unsecured notes due 2026 1,886 1,885 4.650% unsecured notes due 2046 590 590 $8 Billion Note Issuance (5)(7) 1.750% unsecured notes due 2017 — 746 2.700% unsecured notes due 2019 1,245 1,244 3.300% unsecured notes due 2021 1,243 1,242 3.800% unsecured notes due 2024 1,987 1,987 4.500% unsecured notes due 2034 494 494 4.800% unsecured notes due 2044 1,492 1,492 £700 Million Note Issuance (1)(5)(7) 2.875% unsecured Pound Sterling notes due 2020 495 521 3.600% unsecured Pound Sterling notes due 2025 371 391 €750 Million Note Issuance (1)(5)(7) 2.125% unsecured Euro notes due 2026 790 830 $4 Billion Note Issuance (6)(7) 3.100% unsecured notes due 2022 1,194 1,194 4.400% unsecured notes due 2042 492 492 $1 Billion Note Issuance (6)(7) 5.250% unsecured notes due 2019 (3) 249 249 Other (4) 33 32 Total long-term debt, less current portion $ 17,758 $ 18,705 (1) All notes 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 February 28, 2017 and August 31, 2016 , respectively. (2) Other short-term borrowings represent a mix of fixed and variable rate borrowings with various maturities and working capital facilities denominated in various foreign currencies. (3) Includes interest rate swap fair market value adjustments. See Note 8, Fair Value Measurements for additional fair value disclosures. (4) Other long-term debt represents a mix of fixed and variable rate borrowings in various foreign currencies with various maturities. (5) 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. (6) Notes are senior debt obligations of Walgreens and rank equally with all other unsecured and unsubordinated indebtedness of Walgreens. 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. (7) The fair value & carrying value of the $6 billion , $8 billion , £0.7 billion , €0.75 billion , $4 billion and $1 billion note issuances as of February 28, 2017 was $6.0 billion & $6.0 billion , $7.4 billion & $7.2 billion , $0.9 billion & $0.9 billion , $0.8 billion & $0.8 billion , $1.7 billion & $1.7 billion and $0.3 billion & $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 February 28, 2017 spot rate, as applicable.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Feb. 28, 2017
Derivative [Line Items]
Notional Amounts, Fair Value and Balance Sheet Presentation of Derivative Instruments Outstanding	The notional amounts, fair value and balance sheet presentation of derivative instruments outstanding as of February 28, 2017 and August 31, 2016 are as follows (in millions): February 28, 2017 August 31, 2016 Notional (1) Fair Value Notional (1) Fair Value Location in Consolidated Condensed Balance Sheets Derivatives designated as fair value hedges: Interest rate swaps 250 1 — — Other non-current liabilities Interest rate swaps — — 250 3 Other non-current assets Derivatives not designated as hedges: Foreign currency forwards 253 2 1,177 16 Other current assets Foreign currency forwards 1,052 11 41 — Other current liabilities Basis swaps 2 1 — — Other current liabilities Basis swaps — — 2 1 Other current assets (1) Amounts are presented in U.S. dollar equivalents, as applicable.
Not Designated as Hedging Instrument
Derivative [Line Items]
Gains and (Losses) due to Changes in Fair Value Recognized in Earnings	The gains and (losses) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions): Three Months Ended Six Months Ended Location in Consolidated Condensed Statements of Earnings February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Foreign currency forwards Selling, general and administrative expense $ (2 ) $ (23 ) $ 47 $ (25 ) Foreign currency forwards Other income (expense) $ (15 ) $ 33 $ (14 ) $ 33

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Feb. 28, 2017
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are as follows (in millions): February 28, 2017 Level 1 Level 2 Level 3 Assets : Restricted cash (1) $ 170 $ 170 $ — $ — Money market funds (2) 10,106 10,106 — — Available-for-sale investments (3) 28 28 — — Foreign currency forwards (4) 2 — 2 Liabilities : Foreign currency forwards (4) 11 — 11 — Basis swaps (4) 1 — 1 — Interest rate swaps (5) 1 — 1 — August 31, 2016 Level 1 Level 2 Level 3 Assets : Restricted cash (1) $ 185 $ 185 $ — $ — Money market funds (2) 9,133 9,133 — — Available-for-sale investments (3) 32 32 — — Interest rate swaps (5) 3 — 3 — Foreign currency forwards (4) 16 — 16 — Liabilities : Basis swaps (4) 1 — 1 — (1) Restricted cash consists of deposits restricted under agency agreements and cash restricted by law and other obligations. (2) Money market funds are valued at the closing price reported by the fund sponsor. (3) Fair values of quoted investments are based on current bid prices as of the balance sheet dates. (4) The fair value of basis swaps and forward currency contracts is estimated by discounting the difference between the contractual forward price and the current available forward price for the residual maturity of the contract using observable market rates. (5) The fair value of interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See Note 7, Financial Instruments for additional information.

Retirement Benefits (Tables)

Retirement Benefits (Tables)	6 Months Ended
	Feb. 28, 2017
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	Components of net periodic pension costs for the defined benefit pension plans (in millions): Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Service costs $ — $ — $ 2 $ 2 Interest costs 43 77 86 159 Expected returns on plan assets (36 ) (62 ) (73 ) (127 ) Curtailments 2 — 2 — Total net periodic pension costs $ 9 $ 15 $ 17 $ 34

Depreciation and Amortization (

Depreciation and Amortization (Tables)	6 Months Ended
	Feb. 28, 2017
Depreciation, Depletion and Amortization [Abstract]
Depreciation and Amortization by Major Category	The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions): Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Depreciation expense $ 332 $ 346 $ 666 $ 644 Intangible asset and other amortization 81 96 165 180 Total depreciation and amortization expense $ 413 $ 442 $ 831 $ 824

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Feb. 28, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Components of Accumulated Other Comprehensive Income (Loss)	The following is a summary of net changes in accumulated other comprehensive income by component and net of tax for the three and six months ended February 28, 2017 and February 29, 2016 (in millions): Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at November 30, 2016 $ (221 ) $ 1 $ (36 ) $ (2 ) $ (3,552 ) $ (3,810 ) Other comprehensive income (loss) before reclassification adjustments 6 — — (7 ) (1 ) (2 ) Amounts reclassified from accumulated OCI — — 1 — — 1 Tax benefit (provision) (1 ) — — 3 — 2 Net other comprehensive income (loss) 5 — 1 (4 ) (1 ) 1 Balance at February 28, 2017 $ (216 ) $ 1 $ (35 ) $ (6 ) $ (3,553 ) $ (3,809 ) Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at August 31, 2016 $ (212 ) $ 2 $ (37 ) $ (1 ) $ (2,744 ) $ (2,992 ) Other comprehensive income (loss) before reclassification adjustments (5 ) (1 ) — (8 ) (809 ) (823 ) Amounts reclassified from accumulated OCI — — 3 — — 3 Tax benefit (provision) 1 — (1 ) 3 — 3 Net other comprehensive income (loss) (4 ) (1 ) 2 (5 ) (809 ) (817 ) Balance at February 28, 2017 $ (216 ) $ 1 $ (35 ) $ (6 ) $ (3,553 ) $ (3,809 ) Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at November 30, 2015 $ 32 $ 260 $ (39 ) $ — $ (911 ) $ (658 ) Other comprehensive income (loss) before reclassification adjustments (4 ) (139 ) — — (1,121 ) (1,264 ) Amounts reclassified from accumulated OCI — — 2 — — 2 Tax benefit (provision) 2 51 (1 ) — — 52 Net other comprehensive income (loss) (2 ) (88 ) 1 — (1,121 ) (1,210 ) Balance at February 29, 2016 $ 30 $ 172 $ (38 ) $ — $ (2,032 ) $ (1,868 ) Pension/ post- retirement obligations Unrecognized gain (loss) on available-for- sale investments Unrealized gain (loss) on cash flow hedges Share of OCI of equity method investments Currency translation adjustment Total Balance at August 31, 2015 $ 29 $ 259 $ (40 ) $ — $ (462 ) $ (214 ) Other comprehensive income (loss) before reclassification adjustments (1 ) (144 ) — — (1,570 ) (1,715 ) Amounts reclassified from accumulated OCI — — 3 — — 3 Tax benefit (provision) 2 57 (1 ) — — 58 Net other comprehensive income (loss) 1 (87 ) 2 — (1,570 ) (1,654 ) Balance at February 29, 2016 $ 30 $ 172 $ (38 ) $ — $ (2,032 ) $ (1,868 )

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Feb. 28, 2017
Segment Reporting [Abstract]
Reconciliation of Revenue from Segments to Consolidated	The following table reflects results of operations of the Company’s reportable segments (in millions): Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Three Months Ended February 28, 2017 Sales to external customers $ 21,814 $ 3,101 $ 4,531 $ — $ 29,446 Intersegment sales — — 499 (499 ) — Sales $ 21,814 $ 3,101 $ 5,030 $ (499 ) $ 29,446 Adjusted Operating Income $ 1,552 $ 242 $ 226 $ (4 ) $ 2,016 Three Months Ended February 29, 2016 Sales to external customers $ 21,500 $ 3,627 $ 5,057 $ — $ 30,184 Intersegment sales — 1 570 (571 ) — Sales $ 21,500 $ 3,628 $ 5,627 $ (571 ) $ 30,184 Adjusted Operating Income $ 1,632 $ 335 $ 155 $ (2 ) $ 2,120 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Six Months Ended February 28, 2017 Sales to external customers $ 42,473 $ 6,063 $ 9,411 $ — $ 57,947 Intersegment sales — — 1,036 (1,036 ) — Sales $ 42,473 $ 6,063 $ 10,447 $ (1,036 ) $ 57,947 Adjusted Operating Income $ 2,841 $ 455 $ 450 $ (4 ) $ 3,742 Six Months Ended February 29, 2016 Sales to external customers $ 41,870 $ 7,086 $ 10,261 $ — $ 59,217 Intersegment sales — 1 1,162 (1,163 ) — Sales $ 41,870 $ 7,087 $ 11,423 $ (1,163 ) $ 59,217 Adjusted Operating Income $ 2,875 $ 650 $ 321 $ (7 ) $ 3,839
Reconciliation of Operating Income (Loss) from Segments to Consolidated	The following table reconciles adjusted operating income to operating income (in millions): Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Three Months Ended February 28, 2017 Adjusted Operating Income $ 1,552 $ 242 $ 226 $ (4 ) $ 2,016 Cost transformation (340 ) Acquisition-related amortization (82 ) LIFO provision (49 ) Adjustments to equity earnings in AmerisourceBergen (37 ) Acquisition-related costs (29 ) Operating Income $ 1,479 Three Months Ended February 29, 2016 Adjusted Operating Income $ 1,632 $ 335 $ 155 $ (2 ) $ 2,120 Cost transformation (28 ) Acquisition-related amortization (101 ) LIFO provision (68 ) Acquisition-related costs (33 ) Asset impairment (30 ) Operating Income $ 1,860 Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations Walgreens Boots Alliance, Inc. Six Months Ended February 28, 2017 Adjusted Operating Income $ 2,841 $ 455 $ 450 $ (4 ) $ 3,742 Cost transformation (421 ) Acquisition-related amortization (164 ) LIFO provision (107 ) Adjustments to equity earnings in AmerisourceBergen (78 ) Acquisition-related costs (46 ) Operating Income $ 2,926 Six Months Ended February 29, 2016 Adjusted Operating Income $ 2,875 $ 650 $ 321 $ (7 ) $ 3,839 Cost transformation (118 ) Acquisition-related amortization (182 ) LIFO provision (114 ) Acquisition-related costs (67 ) Asset impairment (30 ) Operating Income $ 3,328

Related Parties (Tables)

Related Parties (Tables)	6 Months Ended
	Feb. 28, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Related party transactions (in millions): Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Purchases, net $ 10,602 $ 10,481 $ 21,238 $ 20,804 February 28, 2017 August 31, 2016 Trade accounts payable, net $ 4,207 $ 3,456

Accounting Policies (Details)

Accounting Policies (Details) $ / shares in Units, $ in Millions	Jan. 29, 2017store$ / shares	Dec. 20, 2016USD ($)store	Nov. 26, 2016statestore
Business Acquisition [Line Items]
Expected proceeds from sale of stores | $		$ 950
Rite Aid
Business Acquisition [Line Items]
Number of stores			4,547
Number of states in which entity operates | state			31
Number of stores to be sold		865
Maximum
Business Acquisition [Line Items]
Business acquisition share price (usd per share) | $ / shares	$ 7
Maximum | Rite Aid
Business Acquisition [Line Items]
Maximum stores required to be divested	1,200
Minimum
Business Acquisition [Line Items]
Business acquisition share price (usd per share) | $ / shares	$ 6.50
1,000 or fewer stores
Business Acquisition [Line Items]
Business acquisition share price (usd per share) | $ / shares	$ 7
Maximum stores required to be divested	1,000
1,000 to 1,200 stores | Maximum
Business Acquisition [Line Items]
Maximum stores required to be divested	1,200
1,000 to 1,200 stores | Minimum
Business Acquisition [Line Items]
Maximum stores required to be divested	1,000
1,200 stores
Business Acquisition [Line Items]
Business acquisition share price (usd per share) | $ / shares	$ 6.50
Maximum stores required to be divested	1,200

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		23 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	$ 340	$ 28	$ 421	$ 118
Asset impairments
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	67	0	115	25
Real estate costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	240	0	249	52
Severance and other business transition and exit costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	33	28	57	41
Cost Transformation Program
Restructuring Reserve Disclosures [Abstract]
Pre-tax charges incurred during the period					$ 1,400
Restructuring Reserve [Roll Forward]
Beginning Balance			275
Restructuring Costs			421
Payments			(57)
Other - non cash			(128)
Currency translation adjustments			(1)
Ending Balance	510		510		510
Cost Transformation Program | Asset impairments
Restructuring Reserve Disclosures [Abstract]
Pre-tax charges incurred during the period					563
Restructuring Reserve [Roll Forward]
Beginning Balance			0
Restructuring Costs			115
Payments			0
Other - non cash			(115)
Currency translation adjustments			0
Ending Balance	0		0		0
Cost Transformation Program | Real estate costs
Restructuring Reserve Disclosures [Abstract]
Pre-tax charges incurred during the period					542
Restructuring Reserve [Roll Forward]
Beginning Balance			248
Restructuring Costs			249
Payments			(28)
Other - non cash			0
Currency translation adjustments			0
Ending Balance	469		469		469
Cost Transformation Program | Severance and other business transition and exit costs
Restructuring Reserve Disclosures [Abstract]
Pre-tax charges incurred during the period					282
Restructuring Reserve [Roll Forward]
Beginning Balance			27
Restructuring Costs			57
Payments			(29)
Other - non cash			(13)
Currency translation adjustments			(1)
Ending Balance	41		41		$ 41
Reportable Segments | Retail Pharmacy USA
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	316	25	388	110
Reportable Segments | Retail Pharmacy USA | Asset impairments
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	65	0	111	25
Reportable Segments | Retail Pharmacy USA | Real estate costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	240	0	249	52
Reportable Segments | Retail Pharmacy USA | Severance and other business transition and exit costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	11	25	28	33
Reportable Segments | Retail Pharmacy International
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	19	3	25	8
Reportable Segments | Retail Pharmacy International | Asset impairments
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	1	0	3	0
Reportable Segments | Retail Pharmacy International | Real estate costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	0	0	0	0
Reportable Segments | Retail Pharmacy International | Severance and other business transition and exit costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	18	3	22	8
Reportable Segments | Pharmaceutical Wholesale
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	5	0	8	0
Reportable Segments | Pharmaceutical Wholesale | Asset impairments
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	1	0	1	0
Reportable Segments | Pharmaceutical Wholesale | Real estate costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	0	0	0	0
Reportable Segments | Pharmaceutical Wholesale | Severance and other business transition and exit costs
Restructuring Reserve Disclosures [Abstract]
Total restructuring costs	$ 4	$ 0	$ 7	$ 0

Operating Leases (Details)

Operating Leases (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2017USD ($)lease	Feb. 29, 2016USD ($)	Feb. 28, 2017USD ($)lease	Feb. 29, 2016USD ($)	Aug. 31, 2016USD ($)
Operating Leased Assets [Line Items]
Interval period of renewal options			5 years
Proceeds from sale leaseback transactions			$ 436	$ 60
Charges related to facilities that were closed or relocated	$ 247	$ 9	$ 264	75
Number of leases | lease	71		71
Potential undiscounted future payments	$ 335		$ 335
Changes in reserve for facility closings and related lease termination charges [Roll Forward]
Balance at beginning of period			466	$ 446	$ 446
Provision for present value of non-cancellable lease payments on closed facilities			258		134
Assumptions about future sublease income, terminations and changes in interest rates			(10)		(34)
Interest accretion			16		27
Cash payments, net of sublease income			(59)		(107)
Balance at end of period	$ 671		$ 671		$ 466
Minimum
Operating Leased Assets [Line Items]
Initial term of operating lease			15 years
Maximum
Operating Leased Assets [Line Items]
Initial term of operating lease			25 years

Equity Method Investments - Sc

Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions	Feb. 28, 2017	Aug. 31, 2016
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 6,164	$ 6,174
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 4,982	$ 4,964
Ownership Percentage	26.00%	24.00%
Others
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 1,182	$ 1,210
Others | Minimum
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	12.00%	12.00%
Others | Maximum
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50.00%	50.00%
Total
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 6,164	$ 6,174

Equity Method Investments - Na

Equity Method Investments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	Aug. 31, 2016
Schedule of Equity Method Investments [Line Items]
Equity earnings	$ 16	$ 9	$ 28	$ 20
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Outstanding shares owned (in shares)	56,854,867		56,854,867		56,854,867
Ownership Percentage	26.00%		26.00%		24.00%
Period of reporting lag			2 months
Equity investment, exceeded its proportionate share of net assets	$ 4,400		$ 4,400
AmerisourceBergen | Level 1
Schedule of Equity Method Investments [Line Items]
Fair market value of equity investment	5,200		5,200
Other Investments
Schedule of Equity Method Investments [Line Items]
Equity earnings	$ 16	$ 9	$ 28	$ 20

Goodwill and Other Intangible44

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Millions	6 Months Ended
	Feb. 28, 2017USD ($)
Goodwill [Roll Forward]
Net book value - Beginning Period	$ 15,527
Currency translation adjustments	(313)
Net book value - Ending Period	15,214
Reportable Segments | Retail Pharmacy USA
Goodwill [Roll Forward]
Net book value - Beginning Period	9,036
Currency translation adjustments	0
Net book value - Ending Period	9,036
Reportable Segments | Retail Pharmacy International
Goodwill [Roll Forward]
Net book value - Beginning Period	3,369
Currency translation adjustments	(146)
Net book value - Ending Period	3,223
Reportable Segments | Pharmaceutical Wholesale
Goodwill [Roll Forward]
Net book value - Beginning Period	3,122
Currency translation adjustments	(167)
Net book value - Ending Period	$ 2,955

Goodwill and Other Intangible45

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions	Feb. 28, 2017	Aug. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Amortizable Intangible Assets	$ 3,594	$ 4,044
Accumulated amortization	1,255	1,439
Total amortizable intangible assets, net	2,339	2,605
Indefinite lived Intangible Assets	7,311	7,697
Total intangible assets, net	9,650	10,302
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite lived Intangible Assets	5,323	5,604
Pharmacy licenses
Finite-Lived Intangible Assets [Line Items]
Indefinite lived Intangible Assets	1,988	2,093
Customer relationships and loyalty card holders
Finite-Lived Intangible Assets [Line Items]
Gross Amortizable Intangible Assets	1,764	1,867
Accumulated amortization	328	275
Purchased prescription files
Finite-Lived Intangible Assets [Line Items]
Gross Amortizable Intangible Assets	718	932
Accumulated amortization	415	600
Favorable lease interests and non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Amortizable Intangible Assets	542	619
Accumulated amortization	344	388
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Amortizable Intangible Assets	509	532
Accumulated amortization	129	105
Purchasing and payer contracts
Finite-Lived Intangible Assets [Line Items]
Gross Amortizable Intangible Assets	61	94
Accumulated amortization	$ 39	$ 71

Goodwill and Other Intangible46

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 94	$ 124	$ 189	$ 216

Goodwill and Other Intangible47

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions	Feb. 28, 2017USD ($)
Estimated annual intangible assets amortization expense [Abstract]
2,017	$ 357
2,018	326
2,019	295
2,020	236
2,021	$ 194

Borrowings - Short and Long-Te

Borrowings - Short and Long-Term Debt (Details) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2017	Aug. 31, 2016
Debt Instrument [Line Items]
Total short-term borrowings	$ 1,153	$ 323
Other	33	32
Total long-term debt, less current portion	$ 17,758	18,705
Unsecured Pound Sterling variable rate term loan due 2019
Debt Instrument [Line Items]
Maturity year	2,019
Other
Debt Instrument [Line Items]
Total short-term borrowings	$ 315	260
Term Loan | Unsecured Pound Sterling variable rate term loan due 2019
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	1,711	1,833
Unsecured Notes | 1.750% unsecured notes due 2017
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 0	746
Stated interest rate	1.75%
Maturity year	2,017
Unsecured Notes | 1.750% unsecured notes due 2018
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,247	1,246
Stated interest rate	1.75%
Maturity year	2,018
Unsecured Notes | 2.600% unsecured notes due 2021
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,494	1,493
Stated interest rate	2.60%
Maturity year	2,021
Unsecured Notes | 3.100% unsecured notes due 2023
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 745	744
Stated interest rate	3.10%
Maturity year	2,023
Unsecured Notes | 3.450% unsecured notes due 2026
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,886	1,885
Stated interest rate	3.45%
Maturity year	2,026
Unsecured Notes | 4.650% unsecured notes due 2046
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 590	590
Stated interest rate	4.65%
Maturity year	2,046
Unsecured Notes | 2.700% unsecured notes due 2019
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,245	1,244
Stated interest rate	2.70%
Maturity year	2,019
Unsecured Notes | 3.300% unsecured notes due 2021
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,243	1,242
Stated interest rate	3.30%
Maturity year	2,021
Unsecured Notes | 3.800% unsecured notes due 2024
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,987	1,987
Stated interest rate	3.80%
Maturity year	2,024
Unsecured Notes | 4.500% unsecured notes due 2034
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 494	494
Stated interest rate	4.50%
Maturity year	2,034
Unsecured Notes | 4.800% unsecured notes due 2044
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,492	1,492
Stated interest rate	4.80%
Maturity year	2,044
Unsecured Notes | 2.875% unsecured Pound Sterling notes due 2020
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 495	521
Stated interest rate	2.875%
Maturity year	2,020
Unsecured Notes | 3.600% unsecured Pound Sterling notes due 2025
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 371	391
Stated interest rate	3.60%
Maturity year	2,025
Unsecured Notes | 2.125% unsecured Euro notes due 2026
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 790	830
Stated interest rate	2.125%
Maturity year	2,026
Unsecured Notes | 3.100% unsecured notes due 2022
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,194	1,194
Stated interest rate	3.10%
Maturity year	2,022
Unsecured Notes | 4.400% unsecured notes due 2042
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 492	492
Stated interest rate	4.40%
Maturity year	2,042
Unsecured Notes | 5.250% unsecured notes due 2019
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 249	249
Stated interest rate	5.25%
Maturity year	2,019
Notes Payable | 1.750% unsecured notes due 2017
Debt Instrument [Line Items]
Total short-term borrowings	$ 748	0
Stated interest rate	1.75%
Maturity year	2,017
Term Loan | Unsecured Pound Sterling variable rate term loan due 2019
Debt Instrument [Line Items]
Total short-term borrowings	$ 90	$ 63
Maturity year	2,019

Borrowings - Note Issuances (D

Borrowings - Note Issuances (Details)	Jun. 01, 2016USD ($)	Feb. 28, 2017EUR (€)	Feb. 28, 2017USD ($)
Total $6.0 billion debt issuance
Debt Instrument [Line Items]
Face amount			$ 6,000,000,000
Fair value of the notes			6,000,000,000
Carrying value of the notes			6,000,000,000
Net proceeds from notes payable	$ 6,000,000,000
Total issuance costs	$ 30,000,000
Percentage of principal amount of fixed rate notes can be redeemed	101.00%
Total $8.0 billion debt issuance
Debt Instrument [Line Items]
Face amount			8,000,000,000
Fair value of the notes			7,400,000,000
Carrying value of the notes			7,200,000,000
Total 700 million pounds debt issuance
Debt Instrument [Line Items]
Face amount | €		€ 700,000,000
Fair value of the notes			900,000,000
Carrying value of the notes			900,000,000
Total 750 million euros debt issuance
Debt Instrument [Line Items]
Face amount | €		€ 750,000,000
Fair value of the notes			800,000,000
Carrying value of the notes			800,000,000
Total $4.0 billion debt issuance
Debt Instrument [Line Items]
Face amount			4,000,000,000
Fair value of the notes			1,700,000,000
Carrying value of the notes			1,700,000,000
Total $1.0 billion debt issuance
Debt Instrument [Line Items]
Face amount			1,000,000,000
Fair value of the notes			300,000,000
Carrying value of the notes			$ 200,000,000

Borrowings - Loan Agreements a

Borrowings - Loan Agreements and Other Borrowings (Details)	Feb. 22, 2017USD ($)tranche	Feb. 01, 2017USD ($)	Dec. 18, 2015USD ($)	Feb. 29, 2016USD ($)	Feb. 28, 2017USD ($)	Jan. 31, 2017USD ($)	Aug. 31, 2016USD ($)	Aug. 30, 2016USD ($)
Line of Credit Facility [Line Items]
Balance outstanding					$ 0
Term Loan | Bridge Credit Agreement
Line of Credit Facility [Line Items]
Term of credit agreement			364 days
Senior unsecured bridge facility			$ 7,800,000,000
Term Loan | 2015 Term Loan Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 5,000,000,000
Term Loan | 2016 Term Loan Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity								$ 1,000,000,000
Term Loan | Backstop Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity						$ 5,000,000,000
Term Loan | Syndicated Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 4,800,000,000
Number of tranches | tranche	2
Maximum amount per tranche	$ 2,400,000,000
Maximum additional commitment	450,000,000
Term Loan | Sumitomo Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,000,000,000
Reduced commitment amount after issuance of notes	$ 0
Number of tranches | tranche	2
Maximum amount per tranche	$ 500,000,000
Letter of Credit | Backstop Commitment Letter
Line of Credit Facility [Line Items]
Maximum borrowing capacity						$ 5,000,000,000
Revolving Credit Facility | 2017 Revolving Credit Agreement
Line of Credit Facility [Line Items]
Term of credit agreement		364 days
Maximum borrowing capacity		$ 1,000,000,000
Balance outstanding					0
Commercial Paper
Line of Credit Facility [Line Items]
Balance outstanding					$ 0		$ 0
Average daily short-term borrowings				$ 20,000,000
Weighted-average interest rate				0.62%
Term Loan | Maximum
Line of Credit Facility [Line Items]
Debt to total capitalization ratio					0.60

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	Aug. 31, 2016
Interest rate swaps | Six-month LIBOR
Derivatives, Fair Value [Line Items]
Fair Value	$ 250		$ 250
Fixed interest rate percentage	5.25%		5.25%
Foreign currency forwards | Not Designated as Hedging Instrument | Selling, general and administrative expense
Effect of Fair Value Hedges on Results of Operations [Abstract]
Gains and (losses) due to changes in fair value of derivative instruments	$ (2)	$ (23)	$ 47	$ (25)
Foreign currency forwards | Not Designated as Hedging Instrument | Other income (expense)
Effect of Fair Value Hedges on Results of Operations [Abstract]
Gains and (losses) due to changes in fair value of derivative instruments	(15)	$ 33	(14)	$ 33
Other non-current liabilities | Interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	250		250		$ 0
Fair Value	1		1		0
Other non-current liabilities | Interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	0		0		250
Fair Value	0		0		3
Other current assets | Foreign currency forwards | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	253		253		1,177
Fair Value	2		2		16
Other current assets | Basis swaps | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	0		0		2
Fair Value	0		0		1
Other current liabilities | Foreign currency forwards | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	1,052		1,052		41
Fair Value	11		11		0
Other current liabilities | Basis swaps | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	2		2		0
Fair Value	$ 1		$ 1		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($) $ in Millions	Feb. 28, 2017	Aug. 31, 2016
Restricted cash
Assets [Abstract]
Fair value of assets	$ 170	$ 185
Money market funds
Assets [Abstract]
Fair value of assets	10,106	9,133
Available-for-sale investments
Assets [Abstract]
Fair value of assets	28	32
Interest rate swaps
Assets [Abstract]
Fair value of assets		3
Liabilities [Abstract]
Fair value of liabilities	1
Foreign currency forwards
Assets [Abstract]
Fair value of assets	2	16
Liabilities [Abstract]
Fair value of liabilities	11
Basis swaps
Liabilities [Abstract]
Fair value of liabilities	1	1
Level 1 | Restricted cash
Assets [Abstract]
Fair value of assets	170	185
Level 1 | Money market funds
Assets [Abstract]
Fair value of assets	10,106	9,133
Level 1 | Available-for-sale investments
Assets [Abstract]
Fair value of assets	28	32
Level 1 | Interest rate swaps
Assets [Abstract]
Fair value of assets		0
Liabilities [Abstract]
Fair value of liabilities	0
Level 1 | Foreign currency forwards
Assets [Abstract]
Fair value of assets	0	0
Liabilities [Abstract]
Fair value of liabilities	0
Level 1 | Basis swaps
Liabilities [Abstract]
Fair value of liabilities	0	0
Level 2 | Restricted cash
Assets [Abstract]
Fair value of assets	0	0
Level 2 | Money market funds
Assets [Abstract]
Fair value of assets	0	0
Level 2 | Available-for-sale investments
Assets [Abstract]
Fair value of assets	0	0
Level 2 | Interest rate swaps
Assets [Abstract]
Fair value of assets		3
Liabilities [Abstract]
Fair value of liabilities	1
Level 2 | Foreign currency forwards
Assets [Abstract]
Fair value of assets	2	16
Liabilities [Abstract]
Fair value of liabilities	11
Level 2 | Basis swaps
Liabilities [Abstract]
Fair value of liabilities	1	1
Level 3 | Restricted cash
Assets [Abstract]
Fair value of assets	0	0
Level 3 | Money market funds
Assets [Abstract]
Fair value of assets	0	0
Level 3 | Available-for-sale investments
Assets [Abstract]
Fair value of assets	0	0
Level 3 | Interest rate swaps
Assets [Abstract]
Fair value of assets		0
Liabilities [Abstract]
Fair value of liabilities	0
Level 3 | Foreign currency forwards
Assets [Abstract]
Fair value of assets		0
Liabilities [Abstract]
Fair value of liabilities	0
Level 3 | Basis swaps
Liabilities [Abstract]
Fair value of liabilities	$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details)	Feb. 28, 2017lawsuit
Loss Contingencies [Line Items]
Number of lawsuits filed	2
Court of Chancery of the State of Delaware
Loss Contingencies [Line Items]
Number of lawsuits filed	8
State of Pennsylvania in the Court of Common Pleas of Cumberland County
Loss Contingencies [Line Items]
Number of lawsuits filed	1
Middle District of Pennsylvania
Loss Contingencies [Line Items]
Number of lawsuits filed	1

Retirement Benefits (Details)

Retirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Components of net periodic benefit costs [Abstract]
Employer cash contributions to defined benefit pension plans			$ 9
Employee expected additional contribution in current fiscal year			54
Walgreen Profit Sharing Retirement Trust
Defined Contribution Plan Disclosure [Line Items]
Profit sharing provision expense	$ 49	$ 53	106	$ 111
Alliance Boots Retirement Savings Plan
Defined Contribution Plan Disclosure [Line Items]
Cost recognized in the consolidated condensed statements of earnings	28	34	56	69
Boots and Other Pension Plans
Components of net periodic benefit costs [Abstract]
Service costs	0	0	2	2
Interest costs	43	77	86	159
Expected returns on plan assets	(36)	(62)	(73)	(127)
Curtailments	2	0	2	0
Total net periodic pension costs	$ 9	$ 15	$ 17	$ 34

Earnings Per Share (Details)

Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Earnings Per Share [Abstract]
Antidilutive securities excluded from EPS calculations (in shares)	6.7	3.2	5.4	2.2

Depreciation and Amortization56

Depreciation and Amortization (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Depreciation, Depletion and Amortization [Abstract]
Depreciation expense	$ 332	$ 346	$ 666	$ 644
Intangible asset and other amortization	81	96	165	180
Total depreciation and amortization expense	$ 413	$ 442	$ 831	$ 824

Supplemental Cash Flow Disclo57

Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 375	$ 302
Cash paid for income taxes	$ 537	$ 481

Accumulated Other Comprehensi58

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 30,281
Net other comprehensive income (loss)	$ 5	$ (1,245)	(860)	$ (1,690)
Ending Balance	30,421		30,421
Pension/post-retirement obligations
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(221)	32	(212)	29
Other comprehensive income (loss) before reclassification adjustments	6	(4)	(5)	(1)
Amounts reclassified from accumulated OCI	0	0	0	0
Tax benefit (provision)	(1)	2	1	2
Net other comprehensive income (loss)	5	(2)	(4)	1
Ending Balance	(216)	30	(216)	30
Unrecognized gain (loss) on available-for-sale investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1	260	2	259
Other comprehensive income (loss) before reclassification adjustments	0	(139)	(1)	(144)
Amounts reclassified from accumulated OCI	0	0	0	0
Tax benefit (provision)	0	51	0	57
Net other comprehensive income (loss)	0	(88)	(1)	(87)
Ending Balance	1	172	1	172
Unrealized gain (loss) on cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(36)	(39)	(37)	(40)
Other comprehensive income (loss) before reclassification adjustments	0	0	0	0
Amounts reclassified from accumulated OCI	1	2	3	3
Tax benefit (provision)	0	(1)	(1)	(1)
Net other comprehensive income (loss)	1	1	2	2
Ending Balance	(35)	(38)	(35)	(38)
Share of OCI of equity method investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2)	0	(1)	0
Other comprehensive income (loss) before reclassification adjustments	(7)	0	(8)	0
Amounts reclassified from accumulated OCI	0	0	0	0
Tax benefit (provision)	3	0	3	0
Net other comprehensive income (loss)	(4)	0	(5)	0
Ending Balance	(6)	0	(6)	0
Currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(3,552)	(911)	(2,744)	(462)
Other comprehensive income (loss) before reclassification adjustments	(1)	(1,121)	(809)	(1,570)
Amounts reclassified from accumulated OCI	0	0	0	0
Tax benefit (provision)	0	0	0	0
Net other comprehensive income (loss)	(1)	(1,121)	(809)	(1,570)
Ending Balance	(3,553)	(2,032)	(3,553)	(2,032)
Total
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(3,810)	(658)	(2,992)	(214)
Other comprehensive income (loss) before reclassification adjustments	(2)	(1,264)	(823)	(1,715)
Amounts reclassified from accumulated OCI	1	2	3	3
Tax benefit (provision)	2	52	3	58
Net other comprehensive income (loss)	1	(1,210)	(817)	(1,654)
Ending Balance	$ (3,809)	$ (1,868)	$ (3,809)	$ (1,868)

Segment Reporting (Details)

Segment Reporting (Details) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017USD ($)	Feb. 29, 2016USD ($)	Feb. 28, 2017USD ($)segment	Feb. 29, 2016USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	$ 29,446	$ 30,184	$ 57,947	$ 59,217
Adjusted Operating Income	2,016	2,120	3,742	3,839
Cost transformation	(340)	(28)	(421)	(118)
Acquisition-related amortization	(82)	(101)	(164)	(182)
LIFO provision	(49)	(68)	(107)	(114)
Adjustments to equity earnings in AmerisourceBergen	(37)		(78)
Acquisition-related costs	(29)	(33)	(46)	(67)
Asset impairment		(30)		(30)
Operating Income	1,479	1,860	2,926	3,328
Retail Pharmacy USA
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	21,814	21,500	42,473	41,870
Adjusted Operating Income	1,552	1,632	2,841	2,875
Retail Pharmacy International
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	3,101	3,627	6,063	7,086
Adjusted Operating Income	242	335	455	650
Pharmaceutical Wholesale
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	4,531	5,057	9,411	10,261
Adjusted Operating Income	226	155	450	321
Reportable Segments
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	29,446	30,184	57,947	59,217
Reportable Segments | Retail Pharmacy USA
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	21,814	21,500	42,473	41,870
Adjusted Operating Income	1,552	1,632	2,841	2,875
Reportable Segments | Retail Pharmacy International
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	3,101	3,628	6,063	7,087
Adjusted Operating Income	242	335	455	650
Reportable Segments | Pharmaceutical Wholesale
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	5,030	5,627	10,447	11,423
Adjusted Operating Income	226	155	450	321
Eliminations
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	(499)	(571)	(1,036)	(1,163)
Adjusted Operating Income	(4)	(2)	(4)	(7)
Eliminations | Retail Pharmacy USA
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	0	0	0	0
Eliminations | Retail Pharmacy International
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	0	1	0	1
Eliminations | Pharmaceutical Wholesale
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	$ 499	$ 570	$ 1,036	$ 1,162

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Related Party Transactions [Abstract]
Purchases, net	$ 10,602	$ 10,481	$ 21,238	$ 20,804
Trade accounts payable, net	$ 4,207	$ 3,456	$ 4,207	$ 3,456