Walgreens Boots Alliance (WBA) 10-Q 20 Dec 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Nov. 30, 2018shares
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 Small Business	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)	943,444,736
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2018

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Nov. 30, 2018	Aug. 31, 2018
Current assets:
Cash and cash equivalents	$ 980	$ 785
Accounts receivable, net	7,144	6,573
Inventories	10,976	9,565
Other current assets	983	923
Total current assets	20,083	17,846
Non-current assets:
Property, plant and equipment, net	13,821	13,911
Goodwill	16,809	16,914
Intangible assets, net	11,584	11,783
Equity method investments (see note 5)	6,570	6,610
Other non-current assets	1,074	1,060
Total non-current assets	49,858	50,278
Total assets	69,941	68,124
Current liabilities:
Short-term debt	4,344	1,966
Trade accounts payable	14,660	13,566
Accrued expenses and other liabilities	5,484	5,862
Income taxes	611	273
Total current liabilities	25,099	21,667
Non-current liabilities:
Long-term debt	11,646	12,431
Deferred income taxes	1,793	1,815
Other non-current liabilities	5,140	5,522
Total non-current liabilities	18,579	19,768
Commitments and contingencies (see note 10)
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 November 30, 2018 and August 31, 2018	12	12
Paid-in capital	10,522	10,493
Retained earnings	34,168	33,551
Accumulated other comprehensive loss	(3,231)	(3,002)
Treasury stock, at cost; 229,068,882 shares at November 30, 2018 and 220,380,200 at August 31, 2018	(15,862)	(15,047)
Total Walgreens Boots Alliance, Inc. shareholders’ equity	25,609	26,007
Noncontrolling interests	654	682
Total equity	26,263	26,689
Total liabilities and equity	$ 69,941	$ 68,124

CONSOLIDATED CONDENSED BALANC_2

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Nov. 30, 2018	Aug. 31, 2018
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)	229,068,882	220,380,200

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions	Total	Common stock	Treasury stock amount	Paid-in capital	Accumulated other comprehensive income (loss)	Retained earnings	Noncontrolling interests
Beginning Balance at Aug. 31, 2017	$ 28,274	$ 12	$ (9,971)	$ 10,339	$ (3,051)	$ 30,137	$ 808
Beginning Balance (in shares) at Aug. 31, 2017		1,023,849,070
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	822					821	1
Other comprehensive income (loss), net of tax	522				508		14
Dividends declared	(398)					(398)
Treasury stock purchases	(2,525)		(2,525)
Treasury stock purchases (in shares)		(34,499,913)
Employee stock purchase and option plans	32		37	(5)
Employee stock purchase and option plans (in shares)		1,097,257
Stock-based compensation	25			25
Noncontrolling interests contribution	4						4
Ending Balance at Nov. 30, 2017	26,756	$ 12	(12,459)	10,359	(2,543)	30,560	827
Ending Balance (in shares) at Nov. 30, 2017		990,446,414
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting standards	(88)					(88)
Beginning Balance at Aug. 31, 2018	26,689	$ 12	(15,047)	10,493	(3,002)	33,551	682
Beginning Balance (in shares) at Aug. 31, 2018		952,133,418
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	1,100					1,123	(23)
Other comprehensive income (loss), net of tax	(232)				(229)		(3)
Dividends declared	(420)					(418)	(2)
Treasury stock purchases	(912)		(912)
Treasury stock purchases (in shares)		(11,994,557)
Employee stock purchase and option plans	101		99	2
Employee stock purchase and option plans (in shares)		3,305,875
Stock-based compensation	27			27
Ending Balance at Nov. 30, 2018	$ 26,263	$ 12	$ (15,862)	$ 10,522	$ (3,231)	$ 34,168	$ 654
Ending Balance (in shares) at Nov. 30, 2018		943,444,736

CONSOLIDATED CONDENSED STATEM_2

CONSOLIDATED CONDENSED STATEMENT OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.440	$ 0.400

CONSOLIDATED CONDENSED STATEM_3

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Income Statement [Abstract]
Sales	$ 33,793	$ 30,740
Cost of sales	26,152	23,399
Gross profit	7,641	7,341
Selling, general and administrative expenses	6,280	5,910
Equity earnings (loss) in AmerisourceBergen	39	(112)
Operating income	1,400	1,319
Other income (expense)	26	(134)
Earnings before interest and income tax provision	1,427	1,185
Interest expense, net	161	149
Earnings before income tax provision	1,265	1,036
Income tax provision	180	227
Post tax earnings from other equity method investments	15	13
Net earnings	1,100	822
Net earnings (loss) attributable to noncontrolling interests	(23)	1
Net earnings attributable to Walgreens Boots Alliance, Inc.	$ 1,123	$ 821
Net earnings per common share:
Basic (in dollars per share)	$ 1.18	$ 0.82
Diluted (in dollars per share)	$ 1.18	$ 0.81
Weighted average common shares outstanding:
Basic (in shares)	948.2	1,006.1
Diluted (in shares)	951.4	1,011.1

CONSOLIDATED CONDENSED STATEM_4

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Comprehensive income:
Net earnings	$ 1,100	$ 822
Other comprehensive income (loss), net of tax:
Pension/postretirement obligations	(4)	0
Unrealized gain on hedges	3	0
Share of other comprehensive income of equity method investments	1	2
Currency translation adjustments	(232)	520
Total other comprehensive income (loss)	(232)	522
Total comprehensive income	868	1,344
Comprehensive income (loss) attributable to noncontrolling interests	(26)	15
Comprehensive income attributable to Walgreens Boots Alliance, Inc.	$ 894	$ 1,329

CONSOLIDATED CONDENSED STATEM_5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Cash flows from operating activities:
Net earnings	$ 1,100	$ 822
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	490	416
Deferred income taxes	24	(63)
Stock compensation expense	27	25
Equity (earnings) loss from equity method investments	(54)	99
Other	97	152
Changes in operating assets and liabilities:
Accounts receivable, net	(515)	(362)
Inventories	(1,424)	(1,018)
Other current assets	(83)	(154)
Trade accounts payable	1,097	1,043
Accrued expenses and other liabilities	(341)	(216)
Income taxes	94	246
Other non-current assets and liabilities	(54)	13
Net cash provided by operating activities	460	1,003
Cash flows from investing activities:
Additions to property, plant and equipment	(470)	(378)
Proceeds from sale of other assets	30	13
Business, investment and asset acquisitions, net of cash acquired	(200)	(265)
Other	5	31
Net cash used for investing activities	(635)	(599)
Cash flows from financing activities:
Net change in short-term debt with maturities of 3 months or less	1,067	1,026
Proceeds from debt	1,085	110
Payments of debt	(545)	(92)
Stock purchases	(912)	(2,525)
Proceeds related to employee stock plans	101	32
Cash dividends paid	(422)	(413)
Other	16	5
Net cash provided by (used for) financing activities	390	(1,857)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(6)	29
Changes in cash, cash equivalents and restricted cash:
Net increase (decrease) in cash, cash equivalents and restricted cash	208	(1,424)
Cash, cash equivalents and restricted cash at beginning of period	975	3,496
Cash, cash equivalents and restricted cash at end of period	$ 1,183	$ 2,072

Accounting policies

Accounting policies	3 Months Ended
	Nov. 30, 2018
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. The Company uses the equity-method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“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, 2018 . In the opinion of management, 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, strategic transactions including acquisitions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. Certain amounts in the Consolidated Condensed Financial Statements and associated notes may not add due to rounding.

Acquisitions

Acquisitions	3 Months Ended
	Nov. 30, 2018
Business Combinations [Abstract]
Acquisitions	Acquisitions Acquisition of certain Rite Aid Corporation ( “ Rite Aid ” ) assets On September 19, 2017, the Company announced that it had secured regulatory clearance for an amended and restated asset purchase agreement to purchase 1,932 stores, three distribution centers and related inventory from Rite Aid for $4.375 billion in cash and other consideration. The purchases of these stores have been accounted for as business combinations and occurred in waves during fiscal 2018. The Company purchased 1,932 stores for total cash consideration of $4.2 billion for the fiscal year ended August 31, 2018. As of November 30, 2018 , the Company had not completed the analysis to assign fair values for certain intangible assets acquired and liabilities assumed for the acquired stores, and therefore the purchase price allocation has not been finalized as the Company is awaiting additional information to complete its assessment. During the three months ended November 30, 2018 , the Company recorded certain measurement period adjustments based on additional information primarily to other non-current liabilities, intangible assets and deferred income taxes, which did not have a material impact on goodwill. The following table summarizes the consideration for the preliminary amounts of identified assets acquired and liabilities assumed for purchase of 1,932 stores as of November 30, 2018 . Consideration $ 4,330 Identifiable assets acquired and liabilities assumed Inventories $ 1,171 Property, plant and equipment 490 Intangible assets 2,039 Accrued expenses and other liabilities (55 ) Deferred income taxes 293 Other non-current liabilities (937 ) Total identifiable net assets 3,001 Goodwill $ 1,329 The preliminary identified definite-lived intangible assets were as follows: Definite-lived intangible assets Weighted-average useful life (in years) Amount (in millions) Customer relationships 12 $ 1,800 Favorable lease interests 10 219 Trade names 2 20 Total $ 2,039 Consideration includes cash of $4,157 million and the fair value of the option granted to Rite Aid to become a member of the Company’s group purchasing organization, Walgreens Boots Alliance Development GmbH. The fair value for this option was determined using the income approach methodology. The fair value estimates are based on the market compensation for such services and appropriate discount rate, as relevant, that market participants would consider when estimating fair values. The goodwill of $1,329 million arising from the business combinations primarily reflects the expected operational synergies and cost savings generated from the Store Optimization Program as well as the expected growth from new customers. See note 3 , exit and disposal activities , for additional information. The goodwill was allocated to the Retail Pharmacy USA segment. Substantially all of the goodwill recognized is expected to be deductible for income tax purposes. The fair value for customer relationships was determined using the multi-period excess earnings method, a form of the income approach. Real property fair values were determined using primarily the income approach and sales comparison approach. The fair value measurements of the intangible assets are based on significant inputs not observable in the market and thus represent Level 3 measurements. The fair value estimates for the intangible assets are based on projected discounted cash flows, historical and projected financial information and attrition rates, as relevant, that market participants would consider when estimating fair values. Assuming stores acquired during the three months ended November 30, 2017 were purchased at the beginning of the comparable period presented, pro forma net earnings and sales of the Company would not be materially different from the comparable period results reported. The acquired stores did not have a material impact on net earnings or sales of the Company for the three months ended November 30, 2017 . The Company acquired the first distribution center and related inventory for cash consideration of $61 million during the three months ended November 30, 2018 . The transition of the remaining two distribution centers and related inventory remains subject to closing conditions set forth in the amended and restated asset purchase agreement.

Exit and disposal activities

Exit and disposal activities	3 Months Ended
	Nov. 30, 2018
Restructuring and Related Activities [Abstract]
Exit and disposal activities	Exit and disposal activities Store Optimization Program On October 24, 2017, the Company’s Board of Directors approved a plan to implement a program (the “Store Optimization Program”) as part of an initiative to optimize store locations through the planned closure of approximately 600 stores and related assets within the Company’s Retail Pharmacy USA segment upon completion of the acquisition of certain stores and related assets from Rite Aid. The actions under the Store Optimization Program commenced in March 2018 and are expected to take place over an 18 month period. The Company currently estimates that it will recognize cumulative pre-tax charges to its GAAP financial results of approximately $350 million , including costs associated with lease obligations and other real estate costs, employee severance and other exit costs, compared to the Company's previously stated expectation of $450 million . The Company expects to incur pre-tax charges of approximately $160 million for lease obligations and other real estate costs and approximately $190 million for employee severance and other exit costs. The Company estimates that substantially all of these cumulative pre-tax charges will result in cash expenditures. Since approval of the Store Optimization Program, the Company has recognized cumulative pre-tax charges to its financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP") totaling $120 million , which were recorded within selling, general and administrative expenses. These charges included $12 million related to lease obligations and other real estate costs and $108 million in employee severance and other exit costs. Costs related to the Store Optimization Program for the three months ended November 30, 2018 were as follows: Three months ended November 30, 2018 Lease obligations and other real estate costs $ (7 ) Employee severance and other exit costs 27 Total costs $ 20 The changes in liabilities related to the Store Optimization Program for the three months ended November 30, 2018 include the following (in millions): Lease obligations and other real estate costs Employee severance and other exit costs Total Balance at August 31, 2018 $ 308 $ 21 $ 329 Costs (7 ) 27 20 Payments (47 ) (34 ) (81 ) Other - non cash 1 86 1 87 Balance at November 30, 2018 $ 340 $ 15 $ 355 1 Primarily represents unfavorable lease liabilities from acquired Rite Aid stores. Cost Transformation Program On April 8, 2015, the Walgreens Boots Alliance Board of Directors approved a plan to implement a 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 focused primarily on the Retail Pharmacy USA segment, but included activities from all segments. The Company completed the Cost Transformation Program in the fourth quarter of fiscal 2017. The changes in liabilities related to the Cost Transformation Program include the following (in millions): Real estate costs Severance and other business transition and exit costs Total Balance at August 31, 2018 $ 414 $ 7 $ 421 Payments (21 ) (1 ) (22 ) Other - non cash 5 — 5 Currency translation adjustments — 1 1 Balance at November 30, 2018 $ 398 $ 7 $ 405

Operating leases

Operating leases	3 Months Ended
	Nov. 30, 2018
Leases [Abstract]
Operating leases	Operating leases During the three months ended November 30, 2018 , the Company recorded charges of $13 million for facilities that were closed or relocated. This compares to $39 million for the three months ended November 30, 2017 . 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 three months ended November 30, 2018 For the twelve months ended August 31, 2018 Balance at beginning of period $ 964 $ 718 Provision for present value of non-cancellable lease payments on closed facilities (3 ) 52 Changes in assumptions (2 ) 19 Accretion expense 18 58 Other - non cash 1 77 338 Cash payments, net of sublease income (84 ) (221 ) Balance at end of period $ 970 $ 964 1 Represents unfavorable lease liabilities from acquired Rite Aid stores.

Equity method investments

Equity method investments	3 Months Ended
	Nov. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	Equity method investments Equity method investments as of November 30, 2018 and August 31, 2018 , were as follows (in millions, except percentages): November 30, 2018 August 31, 2018 Carrying value Ownership percentage Carrying value Ownership percentage AmerisourceBergen $ 5,156 27% $ 5,138 26% Others 1,414 8% - 50% 1,472 8% - 50% Total $ 6,570 $ 6,610 AmerisourceBergen Corporation (“AmerisourceBergen”) investment As of November 30, 2018 and August 31, 2018 , the Company owned 56,854,867 AmerisourceBergen common shares, representing approximately 27% and 26% 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 are 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 November 30, 2018 was $5.1 billion . As of November 30, 2018 , 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; its investment in Sinopharm Holding Guoda Drugstores Co., Ltd., the Company's retail pharmacy investment in China and the Company's investment in Option Care Inc. in the U.S. The Company reported $15 million and $13 million of post-tax equity earnings from other equity method investments, including equity method investments classified as operating, for the three months ended November 30, 2018 and 2017 , respectively.

Goodwill and other intangible a

Goodwill and other intangible assets	3 Months Ended
	Nov. 30, 2018
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, 2018 $ 10,483 $ 3,370 $ 3,061 $ 16,914 Acquisitions 6 — — 6 Currency translation adjustments — (64 ) (47 ) (111 ) November 30, 2018 $ 10,489 $ 3,306 $ 3,014 $ 16,809 The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): November 30, 2018 August 31, 2018 Gross amortizable intangible assets Customer relationships and loyalty card holders $ 4,291 $ 4,235 Favorable lease interests and non-compete agreements 668 680 Trade names and trademarks 478 489 Purchasing and payer contracts 390 390 Total gross amortizable intangible assets 5,827 5,794 Accumulated amortization Customer relationships and loyalty card holders $ 1,067 $ 997 Favorable lease interests and non-compete agreements 370 359 Trade names and trademarks 217 206 Purchasing and payer contracts 85 78 Total accumulated amortization 1,739 1,640 Total amortizable intangible assets, net $ 4,088 $ 4,154 Indefinite-lived intangible assets Trade names and trademarks $ 5,460 $ 5,557 Pharmacy licenses 2,036 2,072 Total indefinite-lived intangible assets $ 7,496 $ 7,629 Total intangible assets, net $ 11,584 $ 11,783 Amortization expense for intangible assets was $134 million and $96 million for the three months ended November 30, 2018 and 2017 , respectively. Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at November 30, 2018 is as follows (in millions): 2020 2021 2022 2023 2024 Estimated annual amortization expense $ 460 $ 410 $ 390 $ 357 $ 339

Debt

Debt	3 Months Ended
	Nov. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted): November 30, 2018 August 31, 2018 Short-term debt 1 Commercial paper $ 1,855 $ 430 Credit facilities 2 500 999 $8 billion note issuance 3,4 2.700% unsecured notes due 2019 1,248 — $1 billion note issuance 3,5 5.250% unsecured notes due 2019 6 249 249 Other 7 492 288 Total short-term debt $ 4,344 $ 1,966 Long-term debt 1 $6 billion note issuance 3,4 3.450% unsecured notes due 2026 $ 1,889 $ 1,888 4.650% unsecured notes due 2046 590 590 $8 billion note issuance 3,4 2.700% unsecured notes due 2019 — 1,248 3.300% unsecured notes due 2021 1,245 1,245 3.800% unsecured notes due 2024 1,990 1,990 4.500% unsecured notes due 2034 495 495 4.800% unsecured notes due 2044 1,492 1,492 £700 million note issuance 3,4 2.875% unsecured Pound sterling notes due 2020 508 517 3.600% unsecured Pound sterling notes due 2025 381 387 €750 million note issuance 3,4 2.125% unsecured Euro notes due 2026 846 868 $4 billion note issuance 3,5 3.100% unsecured notes due 2022 1,196 1,196 4.400% unsecured notes due 2042 492 492 Credit facilities 2 500 — Other 8 22 23 Total long-term debt, less current portion $ 11,646 $ 12,431 1 Carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt has been translated using the spot rates at November 30, 2018 and August 31, 2018 respectively. 2 Credit facilities include debt outstanding under the February 2017 Revolving Credit Agreement, the August 2017 Revolving Credit Agreement and the November 2018 Credit Agreement, which are described in more detail below. 3 The $6 billion , $8 billion , £0.7 billion , €0.75 billion , $4 billion and $1 billion note issuances as of November 30, 2018 had fair values and carrying values of $2.3 billion and $2.5 billion , $6.3 billion and $6.5 billion , $0.9 billion and $0.9 billion , $0.9 billion and $0.8 billion , $1.6 billion and $1.7 billion , and $0.3 billion and $0.2 billion , respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the November 30, 2018 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of November 30, 2018 . 4 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. 5 Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance. 6 Includes interest rate swap fair market value adjustments. See note 9 , fair value measurements , for additional fair value disclosures. 7 Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 8 Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities. November 2018 Revolving and Term Loan Credit Agreement On November 30, 2018, the Company entered into a credit agreement (the “November 2018 Credit Agreement”) with the lenders from time to time party thereto. The November 2018 Credit Agreement includes a $500 million senior unsecured revolving credit facility and a $500 million senior unsecured term loan facility. The facility termination date is, with respect to the revolving credit facility, the earlier of (a) May 30, 2020 and (b) the date of termination in whole of the aggregate amount of the revolving commitments pursuant to the November 2018 Credit Agreement and, with respect to the term loan facility, the earlier of (a) May 30, 2020 and (b) the date of acceleration of all term loans pursuant to the November 2018 Credit Agreement. As of November 30, 2018, there were $1.0 billion borrowings outstanding under the November 2018 Credit Agreement. August 2018 Revolving Credit Agreement On August 29, 2018, the Company entered into a revolving credit agreement (the “August 2018 Revolving Credit Agreement”) with the lenders and letter of credit issuers from time to time party thereto. The August 2018 Revolving Credit Agreement is an unsecured revolving credit facility with an aggregate commitment in the amount of $3.5 billion , with a letter of credit subfacility commitment amount of $500 million . The facility termination date is the earlier of (a) August 29, 2023, subject to the extension thereof pursuant to the August 2018 Revolving Credit Agreement and (b) the date of termination in whole of the aggregate amount of the revolving commitments pursuant to the August 2018 Revolving Credit Agreement. As of November 30, 2018, there were no borrowings outstanding under the August 2018 Revolving Credit Agreement. August 2017 Credit Agreements On August 24, 2017, the Company entered into a $1.0 billion revolving credit agreement with the lenders from time to time party thereto (the “August 2017 Revolving Credit Agreement”) and a $1.0 billion term loan credit agreement with Sumitomo Mitsui Banking Corporation (the “2017 Term Loan Credit Agreement”). On November 30, 2018, in connection with the entrance into the November 2018 Credit Agreement, the Company terminated the 2017 Term Loan Credit Agreement in accordance with its terms and as of such date paid all amounts due in connection therewith. The August 2017 Revolving Credit Agreement is an unsecured revolving credit facility with a facility termination date of the earlier of (a) January 31, 2019, subject to any extension thereof pursuant to the terms of the August 2017 Revolving Credit Agreement and (b) the date of termination in whole of the aggregate commitments provided by the lenders thereunder. As of November 30, 2018 , there were no borrowings outstanding under the August 2017 Revolving Credit Agreement. The 2017 Term Loan Credit Agreement is an unsecured “multi-draw” term loan facility which would have matured on March 30, 2019. As of November 30, 2018 , the Company had no borrowings outstanding under the 2017 Term Loan Credit Agreement. February 2017 Revolving Credit Agreement On February 1, 2017, the Company entered into a $1.0 billion revolving credit facility (as amended, the “February 2017 Revolving Credit Agreement”) with the lenders from time to time party thereto and, on August 1, 2017, the Company entered into an amendment agreement thereto. The terms and conditions of the February 2017 Revolving Credit Agreement were unchanged by the amendment other than the extension of the facility termination date to the earlier of (a) January 31, 2019 and (b) the date of termination in whole of the aggregate commitments provided by the lenders thereunder. As of November 30, 2018 , there were no borrowings outstanding under the February 2017 Revolving Credit Agreement. Debt covenants Each of 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. Certain of the credit facilities provide for an increase in such ratio in certain conditions set forth in the applicable credit agreement. The credit facilities contain various other customary covenants. Commercial paper The Company periodically borrows under its commercial paper program and may borrow under it in future periods. The Company had average daily short-term debt of $1.8 billion and $0.6 billion of commercial paper outstanding at a weighted average interest rate of 2.61% and 1.46% for the three months ended November 30, 2018 and 2017 , respectively. Interest Interest paid was $237 million and $217 million for the three months ended November 30, 2018 and 2017 , respectively.

Financial instruments

Financial instruments	3 Months Ended
	Nov. 30, 2018
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 and fair value of derivative instruments outstanding were as follows (in millions): November 30, 2018 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges: Interest rate swaps $ 250 $ 2 Other current liabilities Cross currency interest rate swaps 400 3 Other non-current assets Cross currency interest rate swaps 100 — Other non-current liabilities Derivatives not designated as hedges: Foreign currency forwards 2,476 65 Other current assets Foreign currency forwards 816 5 Other current liabilities August 31, 2018 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges : Interest rate swaps $ 250 $ 1 Other current liabilities Foreign currency forwards 15 — Other current assets Derivatives not designated as hedges : Foreign currency forwards 3,273 52 Other current assets Foreign currency forwards 825 4 Other current liabilities The Company uses interest rate swaps to manage the interest rate exposure associated with some of its fixed-rate debt and designates them as fair value hedges. From time to time, the Company uses forward starting interest rate swaps to hedge its interest rate exposure of some of its anticipated debt issuances. The Company has 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. 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. Fair value hedges The Company holds an interest rate swap 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. The swap termination date coincide with the notes' maturity date, January 15, 2019. This swap was designated as a fair value hedge. The gains and losses due to changes in fair value on the swap and on the hedged notes attributable to interest rate risk did not have a material impact on the Company’s Financial Statements. 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 7 , debt ). Net investment hedges The Company uses cross currency interest rate swaps as hedges of net investments in subsidiaries with non-U.S. dollar functional currencies. For qualifying net investment hedges, changes in the fair value of the derivatives are recorded in the currency translation adjustment within accumulated other comprehensive income (loss). 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 income and (expense) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2018 2017 Foreign currency forwards Selling, general and administrative expenses $ 45 $ (19 ) Foreign currency forwards Other income (expense) 3 34 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	3 Months Ended
	Nov. 30, 2018
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value measurements The Company measures certain assets and liabilities in accordance with Accounting Standards Codification ("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 were as follows (in millions): November 30, 2018 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 398 $ 398 $ — $ — Available-for-sale investments 2 — — — — Foreign currency forwards 3 65 — 65 — Cross currency interest rate swaps 4 3 — 3 — Liabilities : Interest rate swaps 4 2 — 2 — Foreign currency forwards 3 5 — 5 — August 31, 2018 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 227 $ 227 $ — $ — Available-for-sale investments 2 1 1 — — Foreign currency forwards 3 52 — 52 — Liabilities : Interest rate swaps 4 1 — 1 — Foreign currency forwards 3 4 — 4 — 1 Money market funds are valued at the closing price reported by the fund sponsor. 2 Fair values of quoted investments are based on current bid prices as of November 30, 2018 and August 31, 2018 . 3 The fair value of 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. 4 The fair value of interest rate swaps and cross currency interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See note 8 , financial instruments , for additional information. There were no transfers between Levels for the three months ended November 30, 2018 . 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 7 , debt , 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	3 Months Ended
	Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies The Company is involved in legal proceedings, including litigation, arbitration and other claims, and investigations, inspections, audits, claims, inquiries and similar actions by pharmacy, healthcare, tax and other governmental authorities, arising in the normal course of the Company’s business, including the matters described below. Legal proceedings, in general, and securities, class action and multi-district 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. The Company also may be named from time to time in qui tam actions initiated by private third parties. In such actions, the private parties purport to act on behalf of federal or state governments, allege that false claims have been submitted for payment by the government and may receive an award if their claims are successful. After a private party has filed a qui tam action, the government must investigate the private party's claim and determine whether to intervene in and take control over the litigation. These actions may remain under seal while the government makes this determination. If the government declines to intervene, the private party may nonetheless continue to pursue the litigation on his or her own purporting to act on behalf of the government. 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. 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 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 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. 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. Plaintiff filed its motion for class certification on April 21, 2017. The Court granted plaintiff’s motion on March 29, 2018 and merits discovery is proceeding. As of the date of this report, 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 Rite Aid 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. There has been no activity in this lawsuit since the complaint was filed. 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 matter was stayed. On March 17, 2017, plaintiffs moved to lift the stay to allow plaintiffs to file an amended complaint. That motion was granted, and plaintiffs filed their amended complaint on December 11, 2017, alleging that the Company and certain of its officers (the “Walgreens Boots Alliance Defendants”) made false or misleading statements regarding the Rite Aid Transactions. On July 11, 2018, the Court denied the Company’s motion to dismiss, but narrowed the time scope of the subject statements. The Company filed an answer and affirmative defenses on August 8, 2018, and on August 24, 2018 filed a new motion to dismiss based on the named plaintiff’s lack of standing. The Court granted that motion on October 24, 2018. On November 2, 2018, plaintiff’s counsel filed a new lawsuit making identical claims on behalf of a new set of plaintiffs against only the Walgreens Boots Alliance Defendants. The Court named the new group of plaintiffs as lead plaintiffs and named plaintiffs’ counsel as lead plaintiffs’ counsel in the case going forward. 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 the plaintiffs in the Delaware actions agreed to settle this matter for an immaterial amount. The Delaware actions all have been dismissed. In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases filed against an array of defendants by various plaintiffs such as counties, cities, hospitals, Indian tribes and others, alleging claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation, captioned In re National Prescription Opiate Litigation (MDL No. 2804), is pending in the U.S. District Court for the Northern District of Ohio. The Company is named as a defendant in a subset of the cases included in this multidistrict litigation. The Company also has been named as a defendant in several lawsuits brought in state courts relating to opioid matters. The relief sought by various plaintiffs is compensatory and punitive damages, as well as injunctive relief. Additionally, the Company has received from the Attorney Generals of several states subpoenas, civil investigative demands and/or other requests concerning opioid matters. On September 28, 2018, the Company announced that it had reached an agreement with the SEC to fully resolve an investigation into certain forward-looking financial goals and related disclosures by Walgreens. The disclosures at issue were made prior to the strategic combination with Alliance Boots and the merger pursuant to which Walgreens Boots Alliance became the parent holding company on December 31, 2014. The settlement does not involve any of the Company’s current officers or executives, nor does it allege intentional or reckless conduct by the Company. In agreeing to the settlement, the Company neither admitted nor denied the SEC’s allegations. Pursuant to the agreement with the SEC, the Company consented to the SEC’s issuance of an administrative order, and the Company paid a $34.5 million penalty, which was fully reserved for in the Company’s Consolidated Financial Statements as of August 31, 2018. The Company has been responding to a civil investigation involving allegations under the False Claims Act by a United States Attorney’s Office, working in conjunction with several states, regarding certain dispensing practices. The Company is cooperating with this investigation and has entered into an agreement in principle with the United States Attorney’s Office and the participating state attorneys general to resolve the matter. The Company has established reserves in relation to such a potential resolution. The agreement in principle remains subject to final documentation and approval by a U.S. District Court judge.

Income taxes

Income taxes	3 Months Ended
	Nov. 30, 2018
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The effective tax rate for the three months ended November 30, 2018 was 14.2% compared to 21.9% for the three months ended November 30, 2017 . The decrease in the effective tax rate for the three months ended November 30, 2018 was significantly impacted by a net reduction to the Company’s estimated annual tax rate for the current year as a result of the U.S. tax law changes, which were enacted on December 22, 2017. Income taxes paid for the three months ended November 30, 2018 were $61 million , compared to $45 million for the three months ended November 30, 2017 . U.S. tax law changes In connection with the Company’s ongoing analysis of the impact of the U.S. tax law changes enacted in December 2017 and in accordance with SEC Staff Accounting Bulletin 118 (“SAB 118”), the Company recorded a tax benefit of $12 million during the three months ended November 30, 2018 , which is provisional and subject to change. This provisional tax benefit is related to the Company's accrual for the transition tax and other U.S. tax law changes. The Company has not recorded any adjustments to the provisional amounts related to the remeasurement of its net U.S. deferred tax liabilities for the three months ended November 30, 2018 . The Company’s analysis of the income tax effects of the U.S. tax law changes could not be finalized as of November 30, 2018 . While the Company made reasonable estimates of the impact of the transition tax and the remeasurement of its deferred tax assets and liabilities, the final impact of the U.S. tax law changes may differ from these estimates, due to, among other things, changes in its interpretations and assumptions, technical clarifications from the U.S. Department of the Treasury and IRS and actions the Company may take. The U.S. Department of the Treasury recently issued multiple proposed regulations related to the U.S. tax law changes. The Company is in the process of analyzing any impact on its current current estimates if these proposed regulations are finalized in their current form. The Company expects to finalize such provisional amounts within the time period prescribed by SAB 118. The U.S. tax law changes created new rules that allow the Company to make an accounting policy election to either treat taxes due on future GILTI inclusions in taxable income as either a current period expense or reflect such inclusions related to temporary basis differences in the Company’s measurement of deferred taxes. The Company’s analysis of the new GILTI rules is not complete; therefore, the Company has not made a policy election regarding the tax accounting treatment of the GILTI tax. The Company also continues to evaluate the impact of the GILTI provisions under the U.S. tax law changes which are complex and subject to continuing regulatory interpretation by the IRS. The Company has, however, included an estimate of the current GILTI impact in its effective tax rate for fiscal 2019. The U.S. tax law changes have the potential to change the Company’s assertions with respect to whether earnings of the Company’s foreign subsidiaries should remain indefinitely reinvested. The Company continues to evaluate these changes, therefore, the Company has not made any changes to its indefinite reinvestment assertions.

Retirement benefits

Retirement benefits	3 Months Ended
	Nov. 30, 2018
Retirement Benefits [Abstract]
Retirement benefits	Retirement benefits The Company sponsors several retirement plans, including defined benefit plans, defined contribution plans and a postretirement health plan. 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 (the “Boots Plan”), which covers certain employees in the United Kingdom. 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 November 30, Location in Consolidated Condensed Statements of Earnings 2018 2017 Service costs Selling, general and administrative expenses $ 1 $ 2 Interest costs Other expense 1 49 47 Expected returns on plan assets/other Other income 1 (60 ) (51 ) Total net periodic pension costs (income) $ (10 ) $ (2 ) 1 Shown as other income (expense) on Consolidated Condensed Statements of Earnings. The Company made cash contributions to its defined benefit pension plans of $9 million for the three months ended November 30, 2018 , which primarily related to committed funded payments. The Company plans to contribute an additional $22 million to its defined benefit pension plans in fiscal 2019 . 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 is in the form of a guaranteed match which is approved annually by the Walgreen Co. Board of Directors and reviewed by the Compensation Committee and Finance Committee of the Walgreens Boots Alliance Board of Directors. The profit-sharing provision was an expense of $61 million for the three months ended November 30, 2018 compared to an expense of $57 million for the three months ended November 30, 2017 . The Company also has certain contract based defined contribution arrangements. The principal one is the Alliance Healthcare & Boots Retirement Savings Plan, which is United Kingdom based and to which both the Company and participating employees contribute. The cost recognized for the three months ended November 30, 2018 was $31 million compared to a cost of $30 million in the three months ended November 30, 2017 .

Accumulated other comprehensive

Accumulated other comprehensive income (loss)	3 Months Ended
	Nov. 30, 2018
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 ("AOCI") by component and net of tax for the three months ended November 30, 2018 and 2017 (in millions): Pension/ post-retirement obligations Unrecognized gain (loss) on available-for-sale investments Unrealized gain (loss) on hedges Share of AOCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2018 $ 101 $ — $ (30 ) $ 3 $ (3,076 ) $ (3,002 ) Other comprehensive income (loss) before reclassification adjustments — — 3 1 (228 ) (224 ) Amounts reclassified from AOCI (4 ) — 1 — — (3 ) Tax benefit (provision) — — (1 ) — (1 ) (2 ) Net change in other comprehensive income (loss) (4 ) — 3 1 (229 ) (229 ) Balance at November 30, 2018 $ 97 $ — $ (27 ) $ 4 $ (3,305 ) $ (3,231 ) Pension/ post-retirement obligations Unrecognized gain (loss) on available-for-sale investments Unrealized gain (loss) on hedges Share of AOCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2017 $ (139 ) $ — $ (33 ) $ (2 ) $ (2,877 ) $ (3,051 ) Other comprehensive income (loss) before reclassification adjustments (1 ) — — 3 506 508 Amounts reclassified from AOCI — — 1 — — 1 Tax benefit (provision) 1 — (1 ) (1 ) — (1 ) Net change in other comprehensive income (loss) — — — 2 506 508 Balance at November 30, 2017 $ (139 ) $ — $ (33 ) $ — $ (2,371 ) $ (2,543 )

Segment reporting

Segment reporting	3 Months Ended
	Nov. 30, 2018
Segment Reporting [Abstract]
Segment reporting	Segment reporting The Company has aligned its operations into 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. Retail Pharmacy USA The Retail Pharmacy USA segment consists of the Walgreens business, which includes the operation of retail drugstores, convenient care clinics and mail and central specialty pharmacy services. Sales for the segment are principally derived from the sale of prescription drugs and a wide assortment of retail products, including health and wellness, beauty and personal care and consumables and general merchandise. Retail Pharmacy International The Retail Pharmacy International segment consists of pharmacy-led health and beauty retail businesses and optical practices. These businesses include Boots branded stores in the United Kingdom, Thailand, Norway, the Republic of Ireland and the Netherlands, Benavides in Mexico and Ahumada in Chile. Sales for the segment are principally derived from the sale of prescription drugs and health and wellness, beauty and personal care and other consumer products. Pharmaceutical Wholesale The Pharmaceutical Wholesale segment consists of the Alliance Healthcare pharmaceutical wholesaling and distribution businesses and an equity method investment in AmerisourceBergen. Wholesale operations are located in the United Kingdom, Germany, France, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, Czech Republic and Lithuania. Sales 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. The results of operations for each reportable segment include procurement benefits and an allocation of corporate-related overhead costs. The following table reflects results of operations and reconciles adjusted operating income to operating income for the Company's reportable segments (in millions): Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations 1 Walgreens Boots Alliance, Inc. Three months ended November 30, 2018 Sales $ 25,721 $ 2,901 $ 5,708 $ (537 ) $ 33,793 Adjusted operating income $ 1,379 $ 132 $ 220 $ 1 $ 1,732 Acquisition-related amortization (123 ) Acquisition-related costs (66 ) Adjustments to equity earnings in AmerisourceBergen (44 ) LIFO provision (39 ) Transformational cost management (30 ) Store optimization (20 ) Certain legal and regulatory accruals and settlements (10 ) Operating income $ 1,400 Three months ended November 30, 2017 Sales $ 22,489 $ 3,083 $ 5,718 $ (550 ) $ 30,740 Adjusted operating income 3 $ 1,378 $ 205 $ 225 $ (2 ) $ 1,806 Acquisition-related amortization (85 ) Acquisition-related costs (51 ) Adjustments to equity earnings in AmerisourceBergen (189 ) LIFO provision (54 ) Certain legal and regulatory accruals and settlements 2 (25 ) Hurricane-related costs (83 ) Operating income 3 $ 1,319 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. 2 As previously disclosed, beginning in the quarter ended August 31, 2018, management reviewed and refined its practice to include all charges related to the matters included in certain legal and regulatory accruals and settlements. In order to present non-GAAP measures on a consistent basis for fiscal year 2018, the Company included adjustments in the quarter ended August 31, 2018 of $14 million , $50 million and $5 million which were previously accrued in the Company’s financial statements for the quarters ended November 30, 2017, February 28, 2018 and May 31, 2018, respectively. These additional adjustments impact the comparability of such results to the results reported in prior and future quarters. 3 The Company adopted new accounting guidance in Accounting Standards Update 2017-07 as of September 1, 2018 (fiscal 2019) on a retrospective basis for the Consolidated Condensed Statements of Earnings presentation. See note 17 , new accounting pronouncements , for further information.

Sales

Sales	3 Months Ended
	Nov. 30, 2018
Revenue from Contract with Customer [Abstract]
Sales	Sales The following table summarizes the Company’s sales by segment and by major source (in millions): Three months ended November 30, 2018 2017 Retail Pharmacy USA Pharmacy $ 19,147 $ 16,282 Retail 6,574 6,207 Total 25,721 22,489 Retail Pharmacy International Pharmacy 1,039 1,104 Retail 1,862 1,979 Total 2,901 3,083 Pharmaceutical Wholesale 5,708 5,718 Eliminations 1 (537 ) (550 ) Walgreens Boots Alliance, Inc. $ 33,793 $ 30,740 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. Contract balances with customers Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration, for example the Company’s Balance Rewards® and Boots Advantage Card loyalty programs. Under such programs, customers earn reward points on purchases for redemption at a later date. See note 18 , supplemental information , for further information on receivables from contracts with customers.

Related parties

Related parties	3 Months Ended
	Nov. 30, 2018
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. Additionally, AmerisourceBergen receives sourcing services for generic pharmaceutical products. Related party transactions with AmerisourceBergen (in millions): Three months ended November 30, 2018 2017 Purchases, net $ 14,322 $ 11,604 November 30, 2018 August 31, 2018 Trade accounts payable, net $ 6,246 $ 6,274

New accounting pronouncements

New accounting pronouncements	3 Months Ended
	Nov. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New accounting pronouncements	New accounting pronouncements Adoption of new accounting pronouncements Presentation of net periodic pension cost and net periodic postretirement benefit cost In March 2017, the FASB issued Accounting Standards Update ("ASU") 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item in the statement of earnings as other compensation costs arising from services rendered by the related employees during the period. All other net cost components are required to be presented in the statement of earnings separately from the service cost component and outside a subtotal of income from operations. Additionally, the line item used in the statement of earnings to present the other net cost components must be disclosed in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years, and must be applied on a retrospective basis. The impact on our previously reported net periodic costs as a result of the retrospective adoption of this standard results in a reclassification from selling, general and administrative expenses to other income (expense) of $125 million , $73 million and $(69) million for periods ended August 31, 2018, 2017 and 2016, respectively. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) on a retrospective basis and the adoption did not have a material impact on the Company's results of operations, cash flows or financial position. The updated accounting policy for pension and postretirement benefits is as follows: Pension and postretirement benefits The Company has various defined benefit pension plans that cover some of its non-U.S. employees. The Company also has a postretirement healthcare plan that covers qualifying U.S. employees. Eligibility and the level of benefits for these plans vary depending on participants’ status, date of hire and or length of service. Pension and postretirement plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts. These assumptions include discount rates, healthcare cost trends, long-term return on plan assets, retirement rates, mortality rates and other factors. The Company funds its pension plans in accordance with applicable regulations. The Company records the service cost component of net pension cost and net postretirement benefit cost in selling, general and administrative expenses. The Company records all other net cost components of net pension cost and net postretirement benefit cost in other income (expense). See note 12 , retirement benefits , for further information. The following is a reconciliation of the effect of the reclassification of all other net cost components (excluding service cost component) of net pension cost and net postretirement benefit cost from selling, general and administrative expenses to other income (expense) in the Company’s Consolidated Condensed Statements of Earnings, in millions: As reported Adjustments As revised Three months ended November 30, 2017 Selling, general and administrative expenses $ 5,907 $ 3 $ 5,910 Operating income 1,322 (3 ) 1,319 Other income (expense) (137 ) 3 (134 ) 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 adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and the adoption did not have a material impact on the Company’s Statement of Cash Flows. The following is a reconciliation of the effect on the relevant line items on the Consolidated Condensed Statements of Cash Flows for the three months ended November 30, 2017 as a result of adopting this new accounting guidance: As reported Adjustments As revised Three months ended November 30, 2017 Trade accounts payable $ 1,011 $ 32 $ 1,043 Accrued expenses and other liabilities (222 ) 6 (216 ) Other non-current assets and liabilities 9 4 13 Net cash provided by operating activities 961 42 1,003 Effect of exchange rate changes on cash, cash equivalents and restricted cash 24 5 29 Net increase (decrease) in cash, cash equivalents and restricted cash (1,471 ) 47 (1,424 ) Cash, cash equivalents and restricted cash at beginning of period 3,301 195 3,496 Cash, cash equivalents and restricted cash at end of period $ 1,830 $ 242 $ 2,072 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. 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. This ASU does not change 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 new guidance must be applied on a modified retrospective basis through a cumulative effect adjustment recognized directly to retained earnings as of the date of adoption. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and the adoption did not have a material impact on the Company's results of operations. 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 and the new guidance must be applied on a retrospective basis. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and adoption did not have a material impact on the Company’s Statement of Cash Flows. Revenue recognition on contracts with customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU provides a single principles-based revenue recognition model with 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. The Company adopted this new accounting guidance on September 1, 2018 (fiscal 2019) using the modified retrospective transition approach for all contracts and the adoption did not have a material impact on the Company’s results of operations. The adoption mainly resulted in changes to recognition of revenues related to loyalty programs and gift card breakage. Prior to adoption, the Company used the cost approach to account for loyalty programs. Upon adoption, the Company uses the deferred revenue approach. Prior to adoption, gift card breakage was primarily recognized at point of sale. Upon adoption, all gift card breakage is recognized based on the redemption pattern. The changes in accounting for loyalty programs and gift card breakage resulted in a cumulative transition adjustment of $98 million in retained earnings. See note 15 , sales , for additional disclosures. The updated accounting policy for revenue recognition and loyalty programs are as follows: Revenue recognition Retail Pharmacy USA and Retail Pharmacy International The Company recognizes revenue, net of taxes and expected returns, at the time it sells merchandise or dispenses prescription drugs to the customer. The Company estimates revenue based on expected reimbursements from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. The estimates are based on all available information including historical experience and are updated to actual reimbursement amounts. Pharmaceutical Wholesale Wholesale revenue is recognized, net of taxes and expected returns, upon shipment of goods, which is generally also the day of delivery. Returns are estimated using expected returns. Loyalty programs and gift card The Company’s loyalty rewards programs represent a separate performance obligation and are accounted for using the deferred revenue approach. When goods are sold, the transaction price is allocated between goods sold and loyalty points awarded based upon the relative standalone selling price. The revenue allocated to the loyalty points is recognized upon redemption. Loyalty program breakage is recognized as revenue based on the redemption pattern. Customer purchases of gift cards are not recognized as revenue until the card is redeemed. Gift card breakage (i.e., unused gift card) is recognized as revenue based on the redemption pattern. 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. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. 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 less impairment, if any, and 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 fiscal years beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years. 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 new guidance must be applied on a modified retrospective basis, with the exception of the amendments related to the measurement alternative for equity investments without readily determinable fair values, which must be applied on a prospective basis. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and adoption did not have a material impact on the Company’s results of operations, cash flows or financial position. New accounting pronouncements not yet adopted Collaborative arrangements In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. This ASU is effective for fiscal years beginning after December 15, 2019 (fiscal 2021). The adoption of this ASU is not expected to have a significant impact on the Company’s results of operations, cash flows or financial position. Financial instruments - hedging and derivatives In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes. This ASU permits use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. This ASU is effective for fiscal years beginning after December 15, 2018 (fiscal 2020), and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied on a prospective basis. The adoption of this ASU is not expected to have a significant impact on the Company’s results of operations, cash flows or financial position. Intangibles – goodwill and other – internal-use software In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40). This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019 (fiscal 2021), and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 financial position or results of operations. Compensation – retirement benefits – defined benefit plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement benefits (Topic 715-20). This ASU amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This ASU is effective for fiscal years ending after December 15, 2020 (fiscal 2022) and must be applied on a retrospective basis. 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 financial position. Fair value measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. This ASU is effective for fiscal years beginning after December 15, 2019 (fiscal 2021), and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. 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 disclosures. Compensation – stock compensation In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718). This ASU eliminated most of the differences between accounting guidance for share-based compensation granted to nonemployees and the guidance for share-based compensation granted to employees. The ASU supersedes the guidance for nonemployees and expands the scope of the guidance for employees to include both. This ASU is effective for annual periods beginning after December 15, 2018 (fiscal 2020), and interim periods within those years. 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 financial position. Accounting for reclassification of certain tax effects from accumulated other comprehensive income In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU addresses the income tax effects of items in accumulated other comprehensive income (“AOCI”) which were originally recognized in other comprehensive income, rather than in income from continuing operations. Specifically, it permits a reclassification from AOCI to retained earnings for the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate resulting from the U.S. tax law changes enacted in December 2017. It also requires certain disclosures about these reclassifications. This ASU is effective for fiscal years beginning after December 15, 2018 (fiscal 2020), and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied either on a prospective basis in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. tax law changes are recognized. 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 financial position. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. This ASU increases the transparency and comparability of organizations by requiring the capitalization of substantially all leases on the balance sheet and disclosures of key information about leasing arrangements. Under this new guidance, at the lease commencement date, a lessee recognizes a right- of-use asset and lease liability, which is initially measured at the present value of the future lease payments. For income statement purposes, a dual model was retained for lessees, requiring leases to be classified as either operating or finance leases. Under the operating lease model, lease expense is recognized on a straight-line basis over the lease term. Under the finance lease model, interest on the lease liability is recognized separately from amortization of the right-of-use asset. The new guidance is effective for fiscal years beginning after December 15, 2018 (fiscal 2020), and interim periods within those fiscal years. In transition, lessees 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. In July 2018, a new ASU was issued to provide relief to the companies from restating the comparative period. Pursuant to this ASU, WBA will not restate comparative periods presented in the Company’s financial statements in the period of adoption. The Company will adopt this ASU on September 1, 2019 (fiscal 2020). The Company continues to plan for adoption and implementation of this ASU, including implementing a new global lease accounting system, evaluating practical expedient and accounting policy elections and assessing the overall financial statement 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 flows.

Supplemental information

Supplemental information	3 Months Ended
	Nov. 30, 2018
Supplemental Cash Flow Elements [Abstract]
Supplemental information	Supplemental information Accounts receivable Accounts receivable are stated net of allowances for doubtful accounts. Accounts receivable balances primarily consist of trade receivables due from customers, including amounts due from third party providers (e.g., pharmacy benefit managers, insurance companies and governmental agencies), clients and members. Trade receivables were $5.9 billion and $5.4 billion at November 30, 2018 and August 31, 2018 , respectively. Other accounts receivable balances, which consist primarily of receivables from vendors and manufacturers, including receivables from AmerisourceBergen (see note 16 , related parties ), were $1.3 billion and $1.2 billion at November 30, 2018 and August 31, 2018 , respectively. 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 November 30, 2018 2017 Depreciation expense $ 356 $ 335 Intangible asset and other amortization 134 81 Total depreciation and amortization expense $ 490 $ 416 Accumulated depreciation and amortization on property, plant and equipment was $10.6 billion at November 30, 2018 and $10.5 billion at August 31, 2018 . Restricted cash The Company is required to maintain cash deposits with certain banks which consist of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. As of November 30, 2018 and August 31, 2018 , the amount of such restricted cash was $203 million and $190 million , respectively, and is reported in other current assets on the Consolidated Condensed Balance Sheets. The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2018 and August 31, 2018 : November 30, 2018 August 31, 2018 Cash and cash equivalents $ 980 $ 785 Restricted cash (included in other current assets) 203 190 Cash, cash equivalents and restricted cash $ 1,183 $ 975 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 11.3 million outstanding options to purchase common shares that were anti-dilutive and excluded from the first quarter earnings per share calculation as of November 30, 2018 compared to 7.6 million as of November 30, 2017 .

Accounting policies (Policies)

Accounting policies (Policies)	3 Months Ended
	Nov. 30, 2018
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. The Company uses the equity-method of accounting for equity investments in less than majority-owned companies if the investment provides the ability to exercise significant influence. All intercompany transactions have been eliminated. The Consolidated Condensed Financial Statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“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, 2018 . In the opinion of management, 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, strategic transactions including acquisitions, changes in laws and general economic conditions in the markets in which the Company operates and other factors on the Company’s operations and net earnings for any period may not be comparable to the same period in previous years. Certain amounts in the Consolidated Condensed Financial Statements and associated notes may not add due to rounding.
Adoption of new accounting pronouncements; New accounting pronouncements not yet adopted	Adoption of new accounting pronouncements Presentation of net periodic pension cost and net periodic postretirement benefit cost In March 2017, the FASB issued Accounting Standards Update ("ASU") 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item in the statement of earnings as other compensation costs arising from services rendered by the related employees during the period. All other net cost components are required to be presented in the statement of earnings separately from the service cost component and outside a subtotal of income from operations. Additionally, the line item used in the statement of earnings to present the other net cost components must be disclosed in the notes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years, and must be applied on a retrospective basis. The impact on our previously reported net periodic costs as a result of the retrospective adoption of this standard results in a reclassification from selling, general and administrative expenses to other income (expense) of $125 million , $73 million and $(69) million for periods ended August 31, 2018, 2017 and 2016, respectively. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) on a retrospective basis and the adoption did not have a material impact on the Company's results of operations, cash flows or financial position. The updated accounting policy for pension and postretirement benefits is as follows: Pension and postretirement benefits The Company has various defined benefit pension plans that cover some of its non-U.S. employees. The Company also has a postretirement healthcare plan that covers qualifying U.S. employees. Eligibility and the level of benefits for these plans vary depending on participants’ status, date of hire and or length of service. Pension and postretirement plan expenses and valuations are dependent on assumptions used by third-party actuaries in calculating those amounts. These assumptions include discount rates, healthcare cost trends, long-term return on plan assets, retirement rates, mortality rates and other factors. The Company funds its pension plans in accordance with applicable regulations. The Company records the service cost component of net pension cost and net postretirement benefit cost in selling, general and administrative expenses. The Company records all other net cost components of net pension cost and net postretirement benefit cost in other income (expense). See note 12 , retirement benefits , for further information. The following is a reconciliation of the effect of the reclassification of all other net cost components (excluding service cost component) of net pension cost and net postretirement benefit cost from selling, general and administrative expenses to other income (expense) in the Company’s Consolidated Condensed Statements of Earnings, in millions: As reported Adjustments As revised Three months ended November 30, 2017 Selling, general and administrative expenses $ 5,907 $ 3 $ 5,910 Operating income 1,322 (3 ) 1,319 Other income (expense) (137 ) 3 (134 ) 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 adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and the adoption did not have a material impact on the Company’s Statement of Cash Flows. The following is a reconciliation of the effect on the relevant line items on the Consolidated Condensed Statements of Cash Flows for the three months ended November 30, 2017 as a result of adopting this new accounting guidance: As reported Adjustments As revised Three months ended November 30, 2017 Trade accounts payable $ 1,011 $ 32 $ 1,043 Accrued expenses and other liabilities (222 ) 6 (216 ) Other non-current assets and liabilities 9 4 13 Net cash provided by operating activities 961 42 1,003 Effect of exchange rate changes on cash, cash equivalents and restricted cash 24 5 29 Net increase (decrease) in cash, cash equivalents and restricted cash (1,471 ) 47 (1,424 ) Cash, cash equivalents and restricted cash at beginning of period 3,301 195 3,496 Cash, cash equivalents and restricted cash at end of period $ 1,830 $ 242 $ 2,072 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. 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. This ASU does not change 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 new guidance must be applied on a modified retrospective basis through a cumulative effect adjustment recognized directly to retained earnings as of the date of adoption. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and the adoption did not have a material impact on the Company's results of operations. 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 and the new guidance must be applied on a retrospective basis. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and adoption did not have a material impact on the Company’s Statement of Cash Flows. Revenue recognition on contracts with customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU provides a single principles-based revenue recognition model with 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. The Company adopted this new accounting guidance on September 1, 2018 (fiscal 2019) using the modified retrospective transition approach for all contracts and the adoption did not have a material impact on the Company’s results of operations. The adoption mainly resulted in changes to recognition of revenues related to loyalty programs and gift card breakage. Prior to adoption, the Company used the cost approach to account for loyalty programs. Upon adoption, the Company uses the deferred revenue approach. Prior to adoption, gift card breakage was primarily recognized at point of sale. Upon adoption, all gift card breakage is recognized based on the redemption pattern. The changes in accounting for loyalty programs and gift card breakage resulted in a cumulative transition adjustment of $98 million in retained earnings. See note 15 , sales , for additional disclosures. The updated accounting policy for revenue recognition and loyalty programs are as follows: Revenue recognition Retail Pharmacy USA and Retail Pharmacy International The Company recognizes revenue, net of taxes and expected returns, at the time it sells merchandise or dispenses prescription drugs to the customer. The Company estimates revenue based on expected reimbursements from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. The estimates are based on all available information including historical experience and are updated to actual reimbursement amounts. Pharmaceutical Wholesale Wholesale revenue is recognized, net of taxes and expected returns, upon shipment of goods, which is generally also the day of delivery. Returns are estimated using expected returns. Loyalty programs and gift card The Company’s loyalty rewards programs represent a separate performance obligation and are accounted for using the deferred revenue approach. When goods are sold, the transaction price is allocated between goods sold and loyalty points awarded based upon the relative standalone selling price. The revenue allocated to the loyalty points is recognized upon redemption. Loyalty program breakage is recognized as revenue based on the redemption pattern. Customer purchases of gift cards are not recognized as revenue until the card is redeemed. Gift card breakage (i.e., unused gift card) is recognized as revenue based on the redemption pattern. 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. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. 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 less impairment, if any, and 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 fiscal years beginning after December 15, 2017 (fiscal 2019), and interim periods within those fiscal years. 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 new guidance must be applied on a modified retrospective basis, with the exception of the amendments related to the measurement alternative for equity investments without readily determinable fair values, which must be applied on a prospective basis. The Company adopted this new accounting guidance as of September 1, 2018 (fiscal 2019) and adoption did not have a material impact on the Company’s results of operations, cash flows or financial position. New accounting pronouncements not yet adopted Collaborative arrangements In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-18, Collaborative Arrangements (Topic 808). This ASU clarifies the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. This ASU is effective for fiscal years beginning after December 15, 2019 (fiscal 2021). The adoption of this ASU is not expected to have a significant impact on the Company’s results of operations, cash flows or financial position. Financial instruments - hedging and derivatives In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes. This ASU permits use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. This ASU is effective for fiscal years beginning after December 15, 2018 (fiscal 2020), and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied on a prospective basis. The adoption of this ASU is not expected to have a significant impact on the Company’s results of operations, cash flows or financial position. Intangibles – goodwill and other – internal-use software In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40). This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019 (fiscal 2021), and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 financial position or results of operations. Compensation – retirement benefits – defined benefit plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement benefits (Topic 715-20). This ASU amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This ASU is effective for fiscal years ending after December 15, 2020 (fiscal 2022) and must be applied on a retrospective basis. 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 financial position. Fair value measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU adds new disclosure requirements for Level 3 measurements. This ASU is effective for fiscal years beginning after December 15, 2019 (fiscal 2021), and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. 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 disclosures. Compensation – stock compensation In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718). This ASU eliminated most of the differences between accounting guidance for share-based compensation granted to nonemployees and the guidance for share-based compensation granted to employees. The ASU supersedes the guidance for nonemployees and expands the scope of the guidance for employees to include both. This ASU is effective for annual periods beginning after December 15, 2018 (fiscal 2020), and interim periods within those years. 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 financial position. Accounting for reclassification of certain tax effects from accumulated other comprehensive income In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU addresses the income tax effects of items in accumulated other comprehensive income (“AOCI”) which were originally recognized in other comprehensive income, rather than in income from continuing operations. Specifically, it permits a reclassification from AOCI to retained earnings for the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate resulting from the U.S. tax law changes enacted in December 2017. It also requires certain disclosures about these reclassifications. This ASU is effective for fiscal years beginning after December 15, 2018 (fiscal 2020), and interim periods within those fiscal years, with early adoption permitted. The new guidance must be applied either on a prospective basis in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. tax law changes are recognized. 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 financial position. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes Topic 840, Leases. Subsequently, the FASB has issued additional ASUs which further clarify this guidance. This ASU increases the transparency and comparability of organizations by requiring the capitalization of substantially all leases on the balance sheet and disclosures of key information about leasing arrangements. Under this new guidance, at the lease commencement date, a lessee recognizes a right- of-use asset and lease liability, which is initially measured at the present value of the future lease payments. For income statement purposes, a dual model was retained for lessees, requiring leases to be classified as either operating or finance leases. Under the operating lease model, lease expense is recognized on a straight-line basis over the lease term. Under the finance lease model, interest on the lease liability is recognized separately from amortization of the right-of-use asset. The new guidance is effective for fiscal years beginning after December 15, 2018 (fiscal 2020), and interim periods within those fiscal years. In transition, lessees 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. In July 2018, a new ASU was issued to provide relief to the companies from restating the comparative period. Pursuant to this ASU, WBA will not restate comparative periods presented in the Company’s financial statements in the period of adoption. The Company will adopt this ASU on September 1, 2019 (fiscal 2020). The Company continues to plan for adoption and implementation of this ASU, including implementing a new global lease accounting system, evaluating practical expedient and accounting policy elections and assessing the overall financial statement 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 flows.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Nov. 30, 2018
Business Combinations [Abstract]
Schedule of Consideration for the Acquisition	The following table summarizes the consideration for the preliminary amounts of identified assets acquired and liabilities assumed for purchase of 1,932 stores as of November 30, 2018 . Consideration $ 4,330 Identifiable assets acquired and liabilities assumed Inventories $ 1,171 Property, plant and equipment 490 Intangible assets 2,039 Accrued expenses and other liabilities (55 ) Deferred income taxes 293 Other non-current liabilities (937 ) Total identifiable net assets 3,001 Goodwill $ 1,329 The preliminary identified definite-lived intangible assets were as follows: Definite-lived intangible assets Weighted-average useful life (in years) Amount (in millions) Customer relationships 12 $ 1,800 Favorable lease interests 10 219 Trade names 2 20 Total $ 2,039

Exit and disposal activities (T

Exit and disposal activities (Tables)	3 Months Ended
	Nov. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Costs related to the Store Optimization Program for the three months ended November 30, 2018 were as follows: Three months ended November 30, 2018 Lease obligations and other real estate costs $ (7 ) Employee severance and other exit costs 27 Total costs $ 20
Accrued Expenses Related to Cost Transformation	The changes in liabilities related to the Cost Transformation Program include the following (in millions): Real estate costs Severance and other business transition and exit costs Total Balance at August 31, 2018 $ 414 $ 7 $ 421 Payments (21 ) (1 ) (22 ) Other - non cash 5 — 5 Currency translation adjustments — 1 1 Balance at November 30, 2018 $ 398 $ 7 $ 405 The changes in liabilities related to the Store Optimization Program for the three months ended November 30, 2018 include the following (in millions): Lease obligations and other real estate costs Employee severance and other exit costs Total Balance at August 31, 2018 $ 308 $ 21 $ 329 Costs (7 ) 27 20 Payments (47 ) (34 ) (81 ) Other - non cash 1 86 1 87 Balance at November 30, 2018 $ 340 $ 15 $ 355 1 Primarily represents unfavorable lease liabilities from acquired Rite Aid stores.

Operating leases (Tables)

Operating leases (Tables)	3 Months Ended
	Nov. 30, 2018
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 three months ended November 30, 2018 For the twelve months ended August 31, 2018 Balance at beginning of period $ 964 $ 718 Provision for present value of non-cancellable lease payments on closed facilities (3 ) 52 Changes in assumptions (2 ) 19 Accretion expense 18 58 Other - non cash 1 77 338 Cash payments, net of sublease income (84 ) (221 ) Balance at end of period $ 970 $ 964 1 Represents unfavorable lease liabilities from acquired Rite Aid stores.

Equity method investments (Tabl

Equity method investments (Tables)	3 Months Ended
	Nov. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Equity method investments as of November 30, 2018 and August 31, 2018 , were as follows (in millions, except percentages): November 30, 2018 August 31, 2018 Carrying value Ownership percentage Carrying value Ownership percentage AmerisourceBergen $ 5,156 27% $ 5,138 26% Others 1,414 8% - 50% 1,472 8% - 50% Total $ 6,570 $ 6,610

Goodwill and other intangible_2

Goodwill and other intangible assets (Tables)	3 Months Ended
	Nov. 30, 2018
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, 2018 $ 10,483 $ 3,370 $ 3,061 $ 16,914 Acquisitions 6 — — 6 Currency translation adjustments — (64 ) (47 ) (111 ) November 30, 2018 $ 10,489 $ 3,306 $ 3,014 $ 16,809
Schedule of Finite-Lived Intangible Assets by Major Class	The carrying amount and accumulated amortization of intangible assets consist of the following (in millions): November 30, 2018 August 31, 2018 Gross amortizable intangible assets Customer relationships and loyalty card holders $ 4,291 $ 4,235 Favorable lease interests and non-compete agreements 668 680 Trade names and trademarks 478 489 Purchasing and payer contracts 390 390 Total gross amortizable intangible assets 5,827 5,794 Accumulated amortization Customer relationships and loyalty card holders $ 1,067 $ 997 Favorable lease interests and non-compete agreements 370 359 Trade names and trademarks 217 206 Purchasing and payer contracts 85 78 Total accumulated amortization 1,739 1,640 Total amortizable intangible assets, net $ 4,088 $ 4,154 Indefinite-lived intangible assets Trade names and trademarks $ 5,460 $ 5,557 Pharmacy licenses 2,036 2,072 Total indefinite-lived intangible assets $ 7,496 $ 7,629 Total intangible assets, net $ 11,584 $ 11,783
Schedule of Future Amortization Expense	Estimated future annual amortization expense for the next five fiscal years for intangible assets recorded at November 30, 2018 is as follows (in millions): 2020 2021 2022 2023 2024 Estimated annual amortization expense $ 460 $ 410 $ 390 $ 357 $ 339

Debt (Tables)

Debt (Tables)	3 Months Ended
	Nov. 30, 2018
Debt Disclosure [Abstract]
Short-Term Borrowings	Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted): November 30, 2018 August 31, 2018 Short-term debt 1 Commercial paper $ 1,855 $ 430 Credit facilities 2 500 999 $8 billion note issuance 3,4 2.700% unsecured notes due 2019 1,248 — $1 billion note issuance 3,5 5.250% unsecured notes due 2019 6 249 249 Other 7 492 288 Total short-term debt $ 4,344 $ 1,966 Long-term debt 1 $6 billion note issuance 3,4 3.450% unsecured notes due 2026 $ 1,889 $ 1,888 4.650% unsecured notes due 2046 590 590 $8 billion note issuance 3,4 2.700% unsecured notes due 2019 — 1,248 3.300% unsecured notes due 2021 1,245 1,245 3.800% unsecured notes due 2024 1,990 1,990 4.500% unsecured notes due 2034 495 495 4.800% unsecured notes due 2044 1,492 1,492 £700 million note issuance 3,4 2.875% unsecured Pound sterling notes due 2020 508 517 3.600% unsecured Pound sterling notes due 2025 381 387 €750 million note issuance 3,4 2.125% unsecured Euro notes due 2026 846 868 $4 billion note issuance 3,5 3.100% unsecured notes due 2022 1,196 1,196 4.400% unsecured notes due 2042 492 492 Credit facilities 2 500 — Other 8 22 23 Total long-term debt, less current portion $ 11,646 $ 12,431 1 Carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt has been translated using the spot rates at November 30, 2018 and August 31, 2018 respectively. 2 Credit facilities include debt outstanding under the February 2017 Revolving Credit Agreement, the August 2017 Revolving Credit Agreement and the November 2018 Credit Agreement, which are described in more detail below. 3 The $6 billion , $8 billion , £0.7 billion , €0.75 billion , $4 billion and $1 billion note issuances as of November 30, 2018 had fair values and carrying values of $2.3 billion and $2.5 billion , $6.3 billion and $6.5 billion , $0.9 billion and $0.9 billion , $0.9 billion and $0.8 billion , $1.6 billion and $1.7 billion , and $0.3 billion and $0.2 billion , respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the November 30, 2018 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of November 30, 2018 . 4 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. 5 Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance. 6 Includes interest rate swap fair market value adjustments. See note 9 , fair value measurements , for additional fair value disclosures. 7 Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 8 Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities.
Long-Term Debt	Debt consists of the following (all amounts are presented in millions of U.S. dollars and debt issuances are denominated in U.S. dollars, unless otherwise noted): November 30, 2018 August 31, 2018 Short-term debt 1 Commercial paper $ 1,855 $ 430 Credit facilities 2 500 999 $8 billion note issuance 3,4 2.700% unsecured notes due 2019 1,248 — $1 billion note issuance 3,5 5.250% unsecured notes due 2019 6 249 249 Other 7 492 288 Total short-term debt $ 4,344 $ 1,966 Long-term debt 1 $6 billion note issuance 3,4 3.450% unsecured notes due 2026 $ 1,889 $ 1,888 4.650% unsecured notes due 2046 590 590 $8 billion note issuance 3,4 2.700% unsecured notes due 2019 — 1,248 3.300% unsecured notes due 2021 1,245 1,245 3.800% unsecured notes due 2024 1,990 1,990 4.500% unsecured notes due 2034 495 495 4.800% unsecured notes due 2044 1,492 1,492 £700 million note issuance 3,4 2.875% unsecured Pound sterling notes due 2020 508 517 3.600% unsecured Pound sterling notes due 2025 381 387 €750 million note issuance 3,4 2.125% unsecured Euro notes due 2026 846 868 $4 billion note issuance 3,5 3.100% unsecured notes due 2022 1,196 1,196 4.400% unsecured notes due 2042 492 492 Credit facilities 2 500 — Other 8 22 23 Total long-term debt, less current portion $ 11,646 $ 12,431 1 Carrying values are presented net of unamortized discount and debt issuance costs, where applicable, and foreign currency denominated debt has been translated using the spot rates at November 30, 2018 and August 31, 2018 respectively. 2 Credit facilities include debt outstanding under the February 2017 Revolving Credit Agreement, the August 2017 Revolving Credit Agreement and the November 2018 Credit Agreement, which are described in more detail below. 3 The $6 billion , $8 billion , £0.7 billion , €0.75 billion , $4 billion and $1 billion note issuances as of November 30, 2018 had fair values and carrying values of $2.3 billion and $2.5 billion , $6.3 billion and $6.5 billion , $0.9 billion and $0.9 billion , $0.9 billion and $0.8 billion , $1.6 billion and $1.7 billion , and $0.3 billion and $0.2 billion , respectively. The fair values of the notes outstanding are Level 1 fair value measures and determined based on quoted market price and translated at the November 30, 2018 spot rate, as applicable. The fair values and carrying values of these issuances do not include notes that have been redeemed or repaid as of November 30, 2018 . 4 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. 5 Notes are senior debt obligations of Walgreen Co. and rank equally with all other unsecured and unsubordinated indebtedness of Walgreen Co. On December 31, 2014, Walgreens Boots Alliance fully and unconditionally guaranteed the outstanding notes on an unsecured and unsubordinated basis. The guarantee, for so long as it is in place, is an unsecured, unsubordinated debt obligation of Walgreens Boots Alliance and will rank equally in right of payment with all other unsecured and unsubordinated indebtedness of Walgreens Boots Alliance. 6 Includes interest rate swap fair market value adjustments. See note 9 , fair value measurements , for additional fair value disclosures. 7 Other short-term debt represents a mix of fixed and variable rate debt with various maturities and working capital facilities denominated in various currencies. 8 Other long-term debt represents a mix of fixed and variable rate debt in various currencies with various maturities.

Financial instruments (Tables)

Financial instruments (Tables)	3 Months Ended
	Nov. 30, 2018
Derivative [Line Items]
Notional Amounts, Fair Value and Balance Sheet Presentation of Derivative Instruments Outstanding	The notional amounts and fair value of derivative instruments outstanding were as follows (in millions): November 30, 2018 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges: Interest rate swaps $ 250 $ 2 Other current liabilities Cross currency interest rate swaps 400 3 Other non-current assets Cross currency interest rate swaps 100 — Other non-current liabilities Derivatives not designated as hedges: Foreign currency forwards 2,476 65 Other current assets Foreign currency forwards 816 5 Other current liabilities August 31, 2018 Notional Fair value Location in Consolidated Condensed Balance Sheets Derivatives designated as hedges : Interest rate swaps $ 250 $ 1 Other current liabilities Foreign currency forwards 15 — Other current assets Derivatives not designated as hedges : Foreign currency forwards 3,273 52 Other current assets Foreign currency forwards 825 4 Other current liabilities
Not Designated as Hedging Instrument
Derivative [Line Items]
Gains and (Losses) due to Changes in Fair Value Recognized in Earnings	The income and (expense) due to changes in fair value of these derivative instruments were recognized in earnings as follows (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2018 2017 Foreign currency forwards Selling, general and administrative expenses $ 45 $ (19 ) Foreign currency forwards Other income (expense) 3 34

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Nov. 30, 2018
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 were as follows (in millions): November 30, 2018 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 398 $ 398 $ — $ — Available-for-sale investments 2 — — — — Foreign currency forwards 3 65 — 65 — Cross currency interest rate swaps 4 3 — 3 — Liabilities : Interest rate swaps 4 2 — 2 — Foreign currency forwards 3 5 — 5 — August 31, 2018 Level 1 Level 2 Level 3 Assets : Money market funds 1 $ 227 $ 227 $ — $ — Available-for-sale investments 2 1 1 — — Foreign currency forwards 3 52 — 52 — Liabilities : Interest rate swaps 4 1 — 1 — Foreign currency forwards 3 4 — 4 — 1 Money market funds are valued at the closing price reported by the fund sponsor. 2 Fair values of quoted investments are based on current bid prices as of November 30, 2018 and August 31, 2018 . 3 The fair value of 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. 4 The fair value of interest rate swaps and cross currency interest rate swaps is calculated by discounting the estimated future cash flows based on the applicable observable yield curves. See note 8 , financial instruments , for additional information.

Retirement benefits (Tables)

Retirement benefits (Tables)	3 Months Ended
	Nov. 30, 2018
Retirement Benefits [Abstract]
Components of Net Periodic Benefit Cost	Components of net periodic pension costs for the defined benefit pension plans (in millions): Three months ended November 30, Location in Consolidated Condensed Statements of Earnings 2018 2017 Service costs Selling, general and administrative expenses $ 1 $ 2 Interest costs Other expense 1 49 47 Expected returns on plan assets/other Other income 1 (60 ) (51 ) Total net periodic pension costs (income) $ (10 ) $ (2 ) 1 Shown as other income (expense) on Consolidated Condensed Statements of Earnings.

Accumulated other comprehensi_2

Accumulated other comprehensive income (loss) (Tables)	3 Months Ended
	Nov. 30, 2018
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 ("AOCI") by component and net of tax for the three months ended November 30, 2018 and 2017 (in millions): Pension/ post-retirement obligations Unrecognized gain (loss) on available-for-sale investments Unrealized gain (loss) on hedges Share of AOCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2018 $ 101 $ — $ (30 ) $ 3 $ (3,076 ) $ (3,002 ) Other comprehensive income (loss) before reclassification adjustments — — 3 1 (228 ) (224 ) Amounts reclassified from AOCI (4 ) — 1 — — (3 ) Tax benefit (provision) — — (1 ) — (1 ) (2 ) Net change in other comprehensive income (loss) (4 ) — 3 1 (229 ) (229 ) Balance at November 30, 2018 $ 97 $ — $ (27 ) $ 4 $ (3,305 ) $ (3,231 ) Pension/ post-retirement obligations Unrecognized gain (loss) on available-for-sale investments Unrealized gain (loss) on hedges Share of AOCI of equity method investments Cumulative translation adjustments Total Balance at August 31, 2017 $ (139 ) $ — $ (33 ) $ (2 ) $ (2,877 ) $ (3,051 ) Other comprehensive income (loss) before reclassification adjustments (1 ) — — 3 506 508 Amounts reclassified from AOCI — — 1 — — 1 Tax benefit (provision) 1 — (1 ) (1 ) — (1 ) Net change in other comprehensive income (loss) — — — 2 506 508 Balance at November 30, 2017 $ (139 ) $ — $ (33 ) $ — $ (2,371 ) $ (2,543 )

Segment reporting (Tables)

Segment reporting (Tables)	3 Months Ended
	Nov. 30, 2018
Segment Reporting [Abstract]
Reconciliation of Operating Income (Loss) from Segments to Consolidated	The following table reflects results of operations and reconciles adjusted operating income to operating income for the Company's reportable segments (in millions): Retail Pharmacy USA Retail Pharmacy International Pharmaceutical Wholesale Eliminations 1 Walgreens Boots Alliance, Inc. Three months ended November 30, 2018 Sales $ 25,721 $ 2,901 $ 5,708 $ (537 ) $ 33,793 Adjusted operating income $ 1,379 $ 132 $ 220 $ 1 $ 1,732 Acquisition-related amortization (123 ) Acquisition-related costs (66 ) Adjustments to equity earnings in AmerisourceBergen (44 ) LIFO provision (39 ) Transformational cost management (30 ) Store optimization (20 ) Certain legal and regulatory accruals and settlements (10 ) Operating income $ 1,400 Three months ended November 30, 2017 Sales $ 22,489 $ 3,083 $ 5,718 $ (550 ) $ 30,740 Adjusted operating income 3 $ 1,378 $ 205 $ 225 $ (2 ) $ 1,806 Acquisition-related amortization (85 ) Acquisition-related costs (51 ) Adjustments to equity earnings in AmerisourceBergen (189 ) LIFO provision (54 ) Certain legal and regulatory accruals and settlements 2 (25 ) Hurricane-related costs (83 ) Operating income 3 $ 1,319 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments. 2 As previously disclosed, beginning in the quarter ended August 31, 2018, management reviewed and refined its practice to include all charges related to the matters included in certain legal and regulatory accruals and settlements. In order to present non-GAAP measures on a consistent basis for fiscal year 2018, the Company included adjustments in the quarter ended August 31, 2018 of $14 million , $50 million and $5 million which were previously accrued in the Company’s financial statements for the quarters ended November 30, 2017, February 28, 2018 and May 31, 2018, respectively. These additional adjustments impact the comparability of such results to the results reported in prior and future quarters. 3 The Company adopted new accounting guidance in Accounting Standards Update 2017-07 as of September 1, 2018 (fiscal 2019) on a retrospective basis for the Consolidated Condensed Statements of Earnings presentation. See note 17 , new accounting pronouncements , for further information.

Sales (Tables)

Sales (Tables)	3 Months Ended
	Nov. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes the Company’s sales by segment and by major source (in millions): Three months ended November 30, 2018 2017 Retail Pharmacy USA Pharmacy $ 19,147 $ 16,282 Retail 6,574 6,207 Total 25,721 22,489 Retail Pharmacy International Pharmacy 1,039 1,104 Retail 1,862 1,979 Total 2,901 3,083 Pharmaceutical Wholesale 5,708 5,718 Eliminations 1 (537 ) (550 ) Walgreens Boots Alliance, Inc. $ 33,793 $ 30,740 1 Eliminations relate to intersegment sales between the Pharmaceutical Wholesale and the Retail Pharmacy International segments.

Related parties (Tables)

Related parties (Tables)	3 Months Ended
	Nov. 30, 2018
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Related party transactions with AmerisourceBergen (in millions): Three months ended November 30, 2018 2017 Purchases, net $ 14,322 $ 11,604 November 30, 2018 August 31, 2018 Trade accounts payable, net $ 6,246 $ 6,274

New accounting pronouncements N

New accounting pronouncements New accounting pronouncements (Tables)	3 Months Ended
	Nov. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following is a reconciliation of the effect on the relevant line items on the Consolidated Condensed Statements of Cash Flows for the three months ended November 30, 2017 as a result of adopting this new accounting guidance: As reported Adjustments As revised Three months ended November 30, 2017 Trade accounts payable $ 1,011 $ 32 $ 1,043 Accrued expenses and other liabilities (222 ) 6 (216 ) Other non-current assets and liabilities 9 4 13 Net cash provided by operating activities 961 42 1,003 Effect of exchange rate changes on cash, cash equivalents and restricted cash 24 5 29 Net increase (decrease) in cash, cash equivalents and restricted cash (1,471 ) 47 (1,424 ) Cash, cash equivalents and restricted cash at beginning of period 3,301 195 3,496 Cash, cash equivalents and restricted cash at end of period $ 1,830 $ 242 $ 2,072 The following is a reconciliation of the effect of the reclassification of all other net cost components (excluding service cost component) of net pension cost and net postretirement benefit cost from selling, general and administrative expenses to other income (expense) in the Company’s Consolidated Condensed Statements of Earnings, in millions: As reported Adjustments As revised Three months ended November 30, 2017 Selling, general and administrative expenses $ 5,907 $ 3 $ 5,910 Operating income 1,322 (3 ) 1,319 Other income (expense) (137 ) 3 (134 )

Supplemental information (Table

Supplemental information (Tables)	3 Months Ended
	Nov. 30, 2018
Supplemental Cash Flow Elements [Abstract]
Schedule of Depreciation and Amortization Expense	The Company has recorded the following depreciation and amortization expense in the Consolidated Condensed Statements of Earnings (in millions): Three months ended November 30, 2018 2017 Depreciation expense $ 356 $ 335 Intangible asset and other amortization 134 81 Total depreciation and amortization expense $ 490 $ 416
Restrictions on Cash and Cash Equivalents	The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2018 and August 31, 2018 : November 30, 2018 August 31, 2018 Cash and cash equivalents $ 980 $ 785 Restricted cash (included in other current assets) 203 190 Cash, cash equivalents and restricted cash $ 1,183 $ 975
Schedule of Cash and Cash Equivalents	The following represents a reconciliation of cash and cash equivalents in the Consolidated Condensed Balance Sheets to total cash, cash equivalents and restricted cash in the Consolidated Condensed Statements of Cash Flows as of November 30, 2018 and August 31, 2018 : November 30, 2018 August 31, 2018 Cash and cash equivalents $ 980 $ 785 Restricted cash (included in other current assets) 203 190 Cash, cash equivalents and restricted cash $ 1,183 $ 975

Acquisitions - Additional Info

Acquisitions - Additional Information (Details) $ in Millions	Sep. 19, 2017USD ($)distribution_centerstore	Nov. 30, 2018USD ($)distribution_center	Aug. 31, 2018USD ($)store
Business Acquisition [Line Items]
Number of locations acquired | store			1,932
Cash consideration for stores purchased			$ 4,200
Goodwill		$ 16,809	16,914
Rite Aid Corporation
Business Acquisition [Line Items]
Number of stores expected to be acquired | store	1,932
Number of distribution centers expected to be acquired | distribution_center	3	2
Consideration to be transferred	$ 4,375
Cash consideration for stores purchased			4,157
Goodwill			$ 1,329
Rite Aid Corporation - First Distribution Center
Business Acquisition [Line Items]
Cash consideration for stores purchased		$ 61

Acquisitions - Schedule of con

Acquisitions - Schedule of consideration (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2018	Nov. 30, 2018
Identifiable assets acquired and liabilities assumed
Goodwill	$ 16,914	$ 16,809
Rite Aid Corporation
Business Acquisition [Line Items]
Total consideration	4,330
Identifiable assets acquired and liabilities assumed
Inventories	1,171
Property, plant and equipment	490
Intangible assets	2,039
Accrued expenses and other liabilities	(55)
Deferred income taxes	293
Other non-current liabilities	(937)
Total identifiable net assets	3,001
Goodwill	$ 1,329

Acquisitions - Intangible Asse

Acquisitions - Intangible Assets (Details) - Rite Aid Corporation $ in Millions	12 Months Ended
	Aug. 31, 2018USD ($)
Business Acquisition [Line Items]
Definite-Lived Intangible Assets	$ 2,039
Customer relationships
Business Acquisition [Line Items]
Weighted-Average Useful Life (in years)	12 years
Definite-Lived Intangible Assets	$ 1,800
Favorable lease interests
Business Acquisition [Line Items]
Weighted-Average Useful Life (in years)	10 years
Definite-Lived Intangible Assets	$ 219
Trade names
Business Acquisition [Line Items]
Weighted-Average Useful Life (in years)	2 years
Definite-Lived Intangible Assets	$ 20

Exit and disposal activities -

Exit and disposal activities - narrative (Details) - Store Optimization Program $ in Millions	Oct. 24, 2017USD ($)	Nov. 30, 2018USD ($)
Restructuring Cost and Reserve [Line Items]
Number of locations closed	600
Duration of restructuring plan	18 months
Expected cost	$ 450	$ 350
Costs incurred		120
Lease obligations and other real estate costs
Restructuring Cost and Reserve [Line Items]
Expected cost		160
Costs incurred		12
Employee severance and other exit costs
Restructuring Cost and Reserve [Line Items]
Expected cost		190
Costs incurred		$ 108

Exit and disposal activities _2

Exit and disposal activities - restructuring costs (Details) - Store Optimization Program $ in Millions	3 Months Ended
	Nov. 30, 2018USD ($)
Restructuring Reserve Disclosures [Abstract]
Total costs	$ 20
Lease obligations and other real estate costs
Restructuring Reserve Disclosures [Abstract]
Total costs	(7)
Employee severance and other exit costs
Restructuring Reserve Disclosures [Abstract]
Total costs	$ 27

Exit and disposal activities _3

Exit and disposal activities - restructuring reserve activity (Details) $ in Millions	3 Months Ended
	Nov. 30, 2018USD ($)
Store Optimization Program
Restructuring Reserve [Roll Forward]
August 31, 2018	$ 329
Costs	20
Payments	(81)
Other - non cash	87
November 30, 2018	355
Cost Transformation restructuring Program
Restructuring Reserve [Roll Forward]
August 31, 2018	421
Payments	(22)
Other - non cash	5
Currency translation adjustments	1
November 30, 2018	405
Lease obligations and other real estate costs | Store Optimization Program
Restructuring Reserve [Roll Forward]
August 31, 2018	308
Costs	(7)
Payments	(47)
Other - non cash	86
November 30, 2018	340
Employee severance and other exit costs | Store Optimization Program
Restructuring Reserve [Roll Forward]
August 31, 2018	21
Costs	27
Payments	(34)
Other - non cash	1
November 30, 2018	15
Employee severance and other exit costs | Cost Transformation restructuring Program
Restructuring Reserve [Roll Forward]
August 31, 2018	7
Payments	(1)
Other - non cash	0
Currency translation adjustments	1
November 30, 2018	7
Real estate costs | Cost Transformation restructuring Program
Restructuring Reserve [Roll Forward]
August 31, 2018	414
Payments	(21)
Other - non cash	5
Currency translation adjustments	0
November 30, 2018	$ 398

Operating leases (Details)

Operating leases (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Leases [Abstract]
Charges related to facilities that were closed or relocated	$ 13	$ 39
Changes in reserve for facility closings and related lease termination charges [Roll Forward]
Balance at beginning of period	964	$ 718	$ 718
Provision for present value of non-cancellable lease payments on closed facilities	(3)		52
Changes in assumptions	(2)		19
Accretion expense	18		58
Other - non cash	77		338
Cash payments, net of sublease income	(84)		(221)
Balance at end of period	$ 970		$ 964

Equity method investments - Sc

Equity method investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions	Nov. 30, 2018	Aug. 31, 2018
Schedule of Equity Method Investments [Line Items]
Carrying value	$ 6,570	$ 6,610
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Carrying value	$ 5,156	$ 5,138
Ownership percentage	27.00%	26.00%
Others
Schedule of Equity Method Investments [Line Items]
Carrying value	$ 1,414	$ 1,472
Others | Minimum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	8.00%	8.00%
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	$ 6,570	$ 6,610

Equity method investments - Na

Equity method investments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity earnings (losses)	$ 54	$ (99)
AmerisourceBergen
Schedule of Equity Method Investments [Line Items]
Outstanding shares owned (in shares)	56,854,867		56,854,867
Ownership percentage	27.00%		26.00%
Period of reporting lag	2 months
Equity investment, exceeded its proportionate share of net assets	$ 4,400
AmerisourceBergen | Level 1
Schedule of Equity Method Investments [Line Items]
Fair market value of equity investment	5,100
Other Investments
Schedule of Equity Method Investments [Line Items]
Equity earnings (losses)	$ 15	$ 13

Goodwill and other intangible_3

Goodwill and other intangible assets - Schedule of Goodwill (Details) $ in Millions	3 Months Ended
	Nov. 30, 2018USD ($)
Goodwill [Roll Forward]
Net book value - Beginning Period	$ 16,914
Acquisitions	6
Currency translation adjustments	(111)
Net book value - Ending Period	16,809
Reportable Segments | Retail Pharmacy USA
Goodwill [Roll Forward]
Net book value - Beginning Period	10,483
Acquisitions	6
Currency translation adjustments	0
Net book value - Ending Period	10,489
Reportable Segments | Retail Pharmacy International
Goodwill [Roll Forward]
Net book value - Beginning Period	3,370
Acquisitions	0
Currency translation adjustments	(64)
Net book value - Ending Period	3,306
Reportable Segments | Pharmaceutical Wholesale
Goodwill [Roll Forward]
Net book value - Beginning Period	3,061
Acquisitions	0
Currency translation adjustments	(47)
Net book value - Ending Period	$ 3,014

Goodwill and other intangible_4

Goodwill and other intangible assets - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions	Nov. 30, 2018	Aug. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	$ 5,827	$ 5,794
Accumulated amortization	1,739	1,640
Total amortizable intangible assets, net	4,088	4,154
Indefinite-lived intangible assets	7,496	7,629
Total intangible assets, net	11,584	11,783
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	5,460	5,557
Pharmacy licenses
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	2,036	2,072
Customer relationships and loyalty card holders
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	4,291	4,235
Accumulated amortization	1,067	997
Favorable lease interests and non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	668	680
Accumulated amortization	370	359
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	478	489
Accumulated amortization	217	206
Purchasing and payer contracts
Finite-Lived Intangible Assets [Line Items]
Gross amortizable intangible assets	390	390
Accumulated amortization	$ 85	$ 78

Goodwill and other intangible_5

Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 134	$ 96

Goodwill and other intangible_6

Goodwill and other intangible assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions	Nov. 30, 2018USD ($)
Estimated annual intangible assets amortization expense [Abstract]
2,020	$ 460
2,021	410
2,022	390
2,023	357
2,024	$ 339

Debt - Short and Long-Term Deb

Debt - Short and Long-Term Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Aug. 31, 2018
Debt Instrument [Line Items]
Total short-term debt	$ 4,344	$ 1,966
Credit facilities	500	0
Other	22	23
Total long-term debt, less current portion	11,646	12,431
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	$ 0	1,248
Stated interest rate	2.70%
Maturity year	2,019
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	$ 1,889	1,888
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 | 3.300% unsecured notes due 2021
Debt Instrument [Line Items]
Carrying value of notes, net of unamortized discount and interest rate swap FMV adjustment	$ 1,245	1,245
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	$ 1,990	1,990
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	$ 495	495
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	$ 508	517
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	$ 381	387
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	$ 846	868
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	$ 1,196	1,196
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
Commercial Paper
Debt Instrument [Line Items]
Total short-term debt	$ 1,855	430
Revolving Credit Facility
Debt Instrument [Line Items]
Total short-term debt	500	999
Notes Payable to Banks | 2.700% unsecured notes due 2019
Debt Instrument [Line Items]
Total short-term debt	$ 1,248	0
Stated interest rate	2.70%
Maturity year	2,019
Notes Payable to Banks | 5.250% unsecured notes due 2019
Debt Instrument [Line Items]
Total short-term debt	$ 249	249
Stated interest rate	5.25%
Maturity year	2,019
Other
Debt Instrument [Line Items]
Total short-term debt	$ 492	$ 288

Debt - Note Issuances (Details

Debt - Note Issuances (Details) - Nov. 30, 2018	USD ($)	EUR (€)	GBP (£)
Total $6.0 billion debt issuance
Debt Instrument [Line Items]
Face amount	$ 6,000,000,000
Fair value of the notes	2,300,000,000
Carrying value of the notes	2,500,000,000
Total $8.0 billion debt issuance
Debt Instrument [Line Items]
Face amount	8,000,000,000
Fair value of the notes	6,300,000,000
Carrying value of the notes	6,500,000,000
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	900,000,000
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	1,600,000,000
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

Debt - Additional Information

Debt - Additional Information (Details)	3 Months Ended
	Nov. 30, 2018USD ($)	Nov. 30, 2017USD ($)	Aug. 29, 2018USD ($)	Aug. 24, 2017USD ($)	Feb. 01, 2017USD ($)
Debt Instrument [Line Items]
Average daily short-term borrowings	$ 1,800,000,000	$ 600,000,000
Weighted-average interest rate	2.61%	1.46%
Interest paid	$ 237,000,000	$ 217,000,000
Line of Credit | November 2018 Credit Agreement
Debt Instrument [Line Items]
Borrowing outstanding	1,000,000,000
Medium-term Notes | February 2017 Revolving Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 1,000,000,000
Borrowing outstanding	0
Medium-term Notes | August 2017 Revolving Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 1,000,000,000
Borrowing outstanding	0
Medium-term Notes | 2017 Term Loan Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 1,000,000,000
Borrowing outstanding	0
Revolving Credit Facility | 2018 Revolving Credit Agreement
Debt Instrument [Line Items]
Face amount			$ 3,500,000,000
Borrowing outstanding	0
Revolving Credit Facility | Line of Credit | November 2018 Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	500,000,000
Unsecured Debt | Line of Credit | November 2018 Credit Agreement
Debt Instrument [Line Items]
Face amount	$ 500,000,000
Letter of Credit | 2018 Revolving Credit Agreement
Debt Instrument [Line Items]
Face amount			$ 500,000,000
Term Loan | Maximum
Debt Instrument [Line Items]
Debt to total capitalization ratio	0.60

Financial instruments (Details)

Financial instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Interest rate swaps | Six-month LIBOR
Derivatives, Fair Value [Line Items]
Fair value	$ 250
Fixed interest rate percentage	5.25%
Foreign currency forwards | Not Designated as Hedging Instrument | Selling, general and administrative expenses
Effect of Fair Value Hedges on Results of Operations [Abstract]
Gains and (losses) due to changes in fair value of derivative instruments	$ 45	$ (19)
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	3	$ 34
Other current liabilities | Interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	250		$ 250
Fair value	2		1
Other current liabilities | Foreign currency forwards | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	816		825
Fair value	5		4
Other non-current assets | Cross currency interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	400
Fair value	3
Other non-current liabilities | Cross currency interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	100
Fair value	0
Other current assets | Foreign currency forwards | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional			15
Fair value			0
Other current assets | Foreign currency forwards | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional	2,476		3,273
Fair value	$ 65		$ 52

Fair value measurements (Detail

Fair value measurements (Details) - USD ($) $ in Millions	Nov. 30, 2018	Aug. 31, 2018
Assets [Abstract]
Money market funds	$ 398	$ 227
Available-for-sale investments	0	1
Level 1
Assets [Abstract]
Money market funds	398	227
Available-for-sale investments	0	1
Level 2
Assets [Abstract]
Money market funds	0	0
Available-for-sale investments	0	0
Level 3
Assets [Abstract]
Money market funds	0	0
Available-for-sale investments	0	0
Foreign currency forwards
Assets [Abstract]
Derivative asset	65	52
Liabilities [Abstract]
Derivative liability	5	4
Foreign currency forwards | Level 1
Assets [Abstract]
Derivative asset	0	0
Liabilities [Abstract]
Derivative liability	0	0
Foreign currency forwards | Level 2
Assets [Abstract]
Derivative asset	65	52
Liabilities [Abstract]
Derivative liability	5	4
Foreign currency forwards | Level 3
Assets [Abstract]
Derivative asset	0	0
Liabilities [Abstract]
Derivative liability	0	0
Cross currency interest rate swaps
Assets [Abstract]
Derivative asset	3
Cross currency interest rate swaps | Level 1
Assets [Abstract]
Derivative asset	0
Cross currency interest rate swaps | Level 2
Assets [Abstract]
Derivative asset	3
Cross currency interest rate swaps | Level 3
Assets [Abstract]
Derivative asset	0
Interest rate swaps
Liabilities [Abstract]
Derivative liability	2	1
Interest rate swaps | Level 1
Liabilities [Abstract]
Derivative liability	0	0
Interest rate swaps | Level 2
Liabilities [Abstract]
Derivative liability	2	1
Interest rate swaps | Level 3
Liabilities [Abstract]
Derivative liability	$ 0	$ 0

Commitments and contingencies (

Commitments and contingencies (Details) $ in Millions	3 Months Ended	12 Months Ended
	Nov. 30, 2018lawsuit	Aug. 31, 2018USD ($)	Dec. 20, 2018lawsuit
Loss Contingencies [Line Items]
Payments for legal settlements | $		$ 34.5
Delaware Court of Chancery
Loss Contingencies [Line Items]
Lawsuits filed and dismissed	8
Subsequent Event | Rite Aid Transactions
Loss Contingencies [Line Items]
Number of lawsuits filed			2
Subsequent Event | State of Pennsylvania in the Court of Common Pleas of Cumberland County
Loss Contingencies [Line Items]
Number of lawsuits filed			1
Subsequent Event | Middle District of Pennsylvania
Loss Contingencies [Line Items]
Number of lawsuits filed			1

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	14.20%	21.90%
Income taxes paid	$ 61	$ 45
Tax Cuts And Jobs Act Of 2017, provisional income tax expense (benefit)	$ (12)

Retirement benefits (Details)

Retirement benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Components of net periodic benefit costs [Abstract]
Employer cash contributions to defined benefit pension plans	$ 9
Employee expected additional contribution in current fiscal year	22
Boots and Other Pension Plans
Components of net periodic benefit costs [Abstract]
Total net periodic pension costs (income)	(10)	$ (2)
Walgreen Profit Sharing Retirement Trust
Defined Contribution Plan Disclosure [Line Items]
Profit sharing provision expense	61	57
Alliance Boots Retirement Savings Plan
Defined Contribution Plan Disclosure [Line Items]
Cost recognized in the consolidated condensed statements of earnings	31	30
Selling, general and administrative expenses | Boots and Other Pension Plans
Components of net periodic benefit costs [Abstract]
Service costs	1	2
Other income (expense) | Boots and Other Pension Plans
Components of net periodic benefit costs [Abstract]
Interest costs	49	47
Expected returns on plan assets/other	$ (60)	$ (51)

Accumulated other comprehensi_3

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 26,689	$ 28,274
Total other comprehensive income (loss)	(232)	522
Ending Balance	26,263	26,756
Pension/ post-retirement obligations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	101	(139)
Other comprehensive income (loss) before reclassification adjustments	0	(1)
Amounts reclassified from AOCI	(4)	0
Tax benefit (provision)	0	1
Total other comprehensive income (loss)	(4)	0
Ending Balance	97	(139)
Unrecognized gain (loss) on available-for-sale investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	0	0
Other comprehensive income (loss) before reclassification adjustments	0	0
Amounts reclassified from AOCI	0	0
Tax benefit (provision)	0	0
Total other comprehensive income (loss)	0	0
Ending Balance	0	0
Unrealized gain (loss) on hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(30)	(33)
Other comprehensive income (loss) before reclassification adjustments	3	0
Amounts reclassified from AOCI	1	1
Tax benefit (provision)	(1)	(1)
Total other comprehensive income (loss)	3	0
Ending Balance	(27)	(33)
Share of AOCI of equity method investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	3	(2)
Other comprehensive income (loss) before reclassification adjustments	1	3
Amounts reclassified from AOCI	0	0
Tax benefit (provision)	0	(1)
Total other comprehensive income (loss)	1	2
Ending Balance	4	0
Cumulative translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(3,076)	(2,877)
Other comprehensive income (loss) before reclassification adjustments	(228)	506
Amounts reclassified from AOCI	0	0
Tax benefit (provision)	(1)	0
Total other comprehensive income (loss)	(229)	506
Ending Balance	(3,305)	(2,371)
Accumulated other comprehensive income (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(3,002)	(3,051)
Other comprehensive income (loss) before reclassification adjustments	(224)	508
Amounts reclassified from AOCI	(3)	1
Tax benefit (provision)	(2)	(1)
Total other comprehensive income (loss)	(229)	508
Ending Balance	$ (3,231)	$ (2,543)

Segment reporting (Details)

Segment reporting (Details) $ in Millions	3 Months Ended
	Nov. 30, 2018USD ($)segment	Nov. 30, 2017USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	$ 33,793	$ 30,740
Adjusted operating income	1,732	1,806
Acquisition-related amortization	(123)	(85)
Acquisition-related costs	(66)	(51)
Adjustments to equity earnings in AmerisourceBergen	(44)	(189)
LIFO provision	(39)	(54)
Transformational cost management	(30)
Store optimization	(20)
Certain legal and regulatory accruals and settlements	(10)	(25)
Hurricane-related costs		(83)
Operating income	1,400	1,319
Reportable Segments | Retail Pharmacy USA
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	25,721	22,489
Adjusted operating income	1,379	1,378
Reportable Segments | Retail Pharmacy International
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	2,901	3,083
Adjusted operating income	132	205
Reportable Segments | Pharmaceutical Wholesale
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	5,708	5,718
Adjusted operating income	220	225
Eliminations
Segment Reporting Information, Operating Income (Loss) [Abstract]
Sales	(537)	(550)
Adjusted operating income	1	$ (2)
November 30, 2017 Legal And Regulatory Accruals And Settlements
Segment Reporting Information, Operating Income (Loss) [Abstract]
Adjustments to financial statements to present non-GAAP measures	14
February 28, 2018 Legal And Regulatory Accruals And Settlements
Segment Reporting Information, Operating Income (Loss) [Abstract]
Adjustments to financial statements to present non-GAAP measures	50
May 31, 2018 Legal And Regulatory Accruals And Settlements
Segment Reporting Information, Operating Income (Loss) [Abstract]
Adjustments to financial statements to present non-GAAP measures	$ 5

Sales (Details)

Sales (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Disaggregation of Revenue [Line Items]
Sales	$ 33,793	$ 30,740
Reportable Segments | Retail Pharmacy USA
Disaggregation of Revenue [Line Items]
Sales	25,721	22,489
Reportable Segments | Retail Pharmacy USA | Pharmacy
Disaggregation of Revenue [Line Items]
Sales	19,147	16,282
Reportable Segments | Retail Pharmacy USA | Retail
Disaggregation of Revenue [Line Items]
Sales	6,574	6,207
Reportable Segments | Retail Pharmacy International
Disaggregation of Revenue [Line Items]
Sales	2,901	3,083
Reportable Segments | Retail Pharmacy International | Pharmacy
Disaggregation of Revenue [Line Items]
Sales	1,039	1,104
Reportable Segments | Retail Pharmacy International | Retail
Disaggregation of Revenue [Line Items]
Sales	1,862	1,979
Reportable Segments | Pharmaceutical Wholesale
Disaggregation of Revenue [Line Items]
Sales	5,708	5,718
Eliminations
Disaggregation of Revenue [Line Items]
Sales	$ (537)	$ (550)

Related parties (Details)

Related parties (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Related Party Transactions [Abstract]
Purchases, net	$ 14,322	$ 11,604
Trade accounts payable, net	$ 6,246		$ 6,274

New accounting pronouncements_2

New accounting pronouncements New accounting pronouncements - Reconciliation of Effect of New Pension and Postretirement Benefits Accounting Guidance (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses	$ 6,280	$ 5,910
Operating income	1,400	1,319
Other income (expense)	$ 26	(134)
Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses			$ (125)	$ (73)	$ 69
Other income (expense)			$ 125	$ 73	$ (69)
As reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses		5,907
Operating income		1,322
Other income (expense)		(137)
Adjustments | Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses		3
Operating income		(3)
Other income (expense)		$ 3

New accounting pronouncements -

New accounting pronouncements - Reconciliation of Effect of New Restricted Cash Accounting Guidance (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trade accounts payable	$ 1,097	$ 1,043
Accrued expenses and other liabilities	(341)	(216)
Other non-current assets and liabilities	(54)	13
Net cash provided by operating activities	460	1,003
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(6)	29
Net increase (decrease) in cash, cash equivalents and restricted cash	208	(1,424)
Cash, cash equivalents and restricted cash at beginning of period	975	3,496
Cash, cash equivalents and restricted cash at end of period	$ 1,183	2,072
As reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trade accounts payable		1,011
Accrued expenses and other liabilities		(222)
Other non-current assets and liabilities		9
Net cash provided by operating activities		961
Effect of exchange rate changes on cash, cash equivalents and restricted cash		24
Net increase (decrease) in cash, cash equivalents and restricted cash		(1,471)
Cash, cash equivalents and restricted cash at beginning of period		3,301
Cash, cash equivalents and restricted cash at end of period		1,830
Accounting Standards Update 2016-18 | Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trade accounts payable		32
Accrued expenses and other liabilities		6
Other non-current assets and liabilities		4
Net cash provided by operating activities		42
Effect of exchange rate changes on cash, cash equivalents and restricted cash		5
Net increase (decrease) in cash, cash equivalents and restricted cash		47
Cash, cash equivalents and restricted cash at beginning of period		195
Cash, cash equivalents and restricted cash at end of period		$ 242

New accounting pronouncements_3

New accounting pronouncements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2016	Sep. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses	$ 6,280	$ 5,910
Other income (expense)	$ 26	$ (134)
Cumulative effect of new accounting principle in period of adoption			$ (88)
Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses			(125)	$ (73)	$ 69
Other income (expense)			125	$ 73	$ (69)
Retained earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption			$ (88)
Retained earnings | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption						$ 98

Supplemental information - Narr

Supplemental information - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017	Aug. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable from related party	$ 1,300		$ 1,200
Accumulated depreciation and amortization on property, plant, and equipment	10,600		10,500
Restricted cash (included in other current assets)	$ 203		190
Antidilutive securities excluded from EPS calculations (in shares)	11.3	7.6
Trade Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 5,900		$ 5,400

Supplemental information - Depr

Supplemental information - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2018	Nov. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Depreciation expense	$ 356	$ 335
Intangible asset and other amortization	134	81
Total depreciation and amortization expense	$ 490	$ 416

Supplemental information - Summ

Supplemental information - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Nov. 30, 2018	Aug. 31, 2018	Nov. 30, 2017	Aug. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents	$ 980	$ 785
Restricted cash (included in other current assets)	203	190
Cash, cash equivalents and restricted cash	$ 1,183	$ 975	$ 2,072	$ 3,496