v3.24.3
Leases
 12 Months Ended
Aug. 31, 2024
Leases [Abstract]  
Leases Leases
Supplemental balance sheet information related to leases was as follows (in millions):

Balance sheet supplemental information:August 31, 2024August 31, 2023
Operating leases:
Operating lease right-of-use assets$20,335 $21,667 
Operating lease obligations - current$2,382 $2,347 
Operating lease obligations - non-current 20,921 22,124 
Total operating lease obligations$23,303 $24,472 
Finance leases:
Right-of-use assets included in:
 Property, plant and equipment, net$680 $678 
Lease obligations included in:
Accrued expenses and other liabilities$74 $57 
Other non-current liabilities917 919 
Total finance lease obligations$991 $976 
Supplemental income statement information related to leases was as follows (in millions):

Statement of earnings supplemental information:202420232022
Operating lease cost
Fixed$3,473 $3,404 $3,240 
Variable 1
909 850 825 
Finance lease cost
Amortization$68 $47 $44 
Interest53 51 50 
Sublease income 2
$111 $115 $105 
Impairment of right-of-use assets526 495 218 
Gains on sale-leaseback transactions 2
U.S. Retail Pharmacy$295 $747 $558 
International 3
— 178 61 
Total gain on sale-leaseback 2
$295 $925 $619 

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.
2Recorded in Selling, general and administrative expenses within the Consolidated Statements of Earnings.
3Includes gain on sale-leaseback related to the Germany wholesale business of $178 million for fiscal 2023, and $61 million for Boots UK for fiscal 2022. The gain for fiscal 2023 includes $47 million related to the optimization of the Germany warehouse locations as part of acquisition integration activities.

Other supplemental information was as follows (in millions):
Other supplemental information:202420232022
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases$3,684 $3,579 $3,351 
Operating cash flows from finance leases51 47 47 
Financing cash flows from finance leases71 52 43 
Total$3,807 $3,679 $3,441 
Right-of-use assets obtained in exchange for new lease obligations
Operating leases$1,457 $2,323 $2,078 
Finance leases80 30 11 
Total$1,536 $2,352 $2,089 

Weighted average lease term and discount rate for real estate leases as of August 31, 2024 were as follows:
Weighted average lease terms and discount rates:August 31, 2024August 31, 2023
Weighted average remaining lease term in years
Operating leases9.29.6
Finance leases17.617.4
Weighted average discount rate
Operating leases5.60 %5.35 %
Finance leases5.18 %5.25 %
The aggregate future lease payments for operating and finance leases as of August 31, 2024 are as follows (in millions):

Future lease payments (fiscal years):Finance lease
Operating lease 1,2
2025$128 $3,668 
2026123 3,599 
2027121 3,519 
202899 3,383 
202988 3,162 
Later892 12,792 
Total undiscounted minimum lease payments$1,451 $30,123 
Less: Present value discount460 6,820 
Lease liability$991 $23,303 

1.Total undiscounted minimum lease payments include approximately $3.5 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised.
2.Total undiscounted minimum lease payments exclude sublease rental income of approximately $592 million due to the Company under non-cancelable sublease terms.
Leases Leases
Supplemental balance sheet information related to leases was as follows (in millions):

Balance sheet supplemental information:August 31, 2024August 31, 2023
Operating leases:
Operating lease right-of-use assets$20,335 $21,667 
Operating lease obligations - current$2,382 $2,347 
Operating lease obligations - non-current 20,921 22,124 
Total operating lease obligations$23,303 $24,472 
Finance leases:
Right-of-use assets included in:
 Property, plant and equipment, net$680 $678 
Lease obligations included in:
Accrued expenses and other liabilities$74 $57 
Other non-current liabilities917 919 
Total finance lease obligations$991 $976 
Supplemental income statement information related to leases was as follows (in millions):

Statement of earnings supplemental information:202420232022
Operating lease cost
Fixed$3,473 $3,404 $3,240 
Variable 1
909 850 825 
Finance lease cost
Amortization$68 $47 $44 
Interest53 51 50 
Sublease income 2
$111 $115 $105 
Impairment of right-of-use assets526 495 218 
Gains on sale-leaseback transactions 2
U.S. Retail Pharmacy$295 $747 $558 
International 3
— 178 61 
Total gain on sale-leaseback 2
$295 $925 $619 

1Includes real estate property taxes, common area maintenance, insurance and rental payments based on sales volume.
2Recorded in Selling, general and administrative expenses within the Consolidated Statements of Earnings.
3Includes gain on sale-leaseback related to the Germany wholesale business of $178 million for fiscal 2023, and $61 million for Boots UK for fiscal 2022. The gain for fiscal 2023 includes $47 million related to the optimization of the Germany warehouse locations as part of acquisition integration activities.

Other supplemental information was as follows (in millions):
Other supplemental information:202420232022
Cash paid for amounts included in the measurement of lease obligations
Operating cash flows from operating leases$3,684 $3,579 $3,351 
Operating cash flows from finance leases51 47 47 
Financing cash flows from finance leases71 52 43 
Total$3,807 $3,679 $3,441 
Right-of-use assets obtained in exchange for new lease obligations
Operating leases$1,457 $2,323 $2,078 
Finance leases80 30 11 
Total$1,536 $2,352 $2,089 

Weighted average lease term and discount rate for real estate leases as of August 31, 2024 were as follows:
Weighted average lease terms and discount rates:August 31, 2024August 31, 2023
Weighted average remaining lease term in years
Operating leases9.29.6
Finance leases17.617.4
Weighted average discount rate
Operating leases5.60 %5.35 %
Finance leases5.18 %5.25 %
The aggregate future lease payments for operating and finance leases as of August 31, 2024 are as follows (in millions):

Future lease payments (fiscal years):Finance lease
Operating lease 1,2
2025$128 $3,668 
2026123 3,599 
2027121 3,519 
202899 3,383 
202988 3,162 
Later892 12,792 
Total undiscounted minimum lease payments$1,451 $30,123 
Less: Present value discount460 6,820 
Lease liability$991 $23,303 

1.Total undiscounted minimum lease payments include approximately $3.5 billion of payments related to optional renewal periods that have not been contractually exercised, but are reasonably certain of being exercised.
2.Total undiscounted minimum lease payments exclude sublease rental income of approximately $592 million due to the Company under non-cancelable sublease terms.