v3.24.3
Segment reporting
 12 Months Ended
Aug. 31, 2024
Segment Reporting [Abstract]  
Segment reporting Segment reporting
The Company is aligned into three reportable segments: U.S. Retail Pharmacy, International and U.S. Healthcare.

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. 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.

U.S. Retail Pharmacy
The Company’s U.S. Retail Pharmacy segment includes the Walgreens business, which is comprised of the operations of retail drugstores, health and wellness services, specialty and home delivery pharmacy services, and its equity method investment in Cencora. 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, personal care and consumables and general merchandise.

International
The Company’s International segment consists of pharmacy-led health and beauty retail businesses outside the U.S. and the Company’s pharmaceutical wholesale and distribution business in Germany. Pharmacy-led health and beauty retail businesses include Boots branded stores in the UK, the Republic of Ireland and Thailand, and the Benavides brand in Mexico. Sales for these businesses are principally derived from the sale of prescription drugs and health and wellness, beauty, personal care and other consumer products. In fiscal 2024, the Company completed the sale of the Farmacias Ahumada business in Chile.

U.S. Healthcare
The Company’s U.S. Healthcare segment engages consumers through a personalized, omni-channel experience across the care journey. The U.S. Healthcare segment delivers improved health outcomes and lower costs for payors and providers by delivering care through owned and partnered assets.

The U.S. Healthcare segment currently consists of a majority position in VillageMD, a national provider of value-based care with primary, multi-specialty, and urgent care providers serving patients in traditional clinic settings, in patients’ homes and online appointments; as well as Shields, a specialty pharmacy integrator and accelerator for hospitals; and CareCentrix, a participant in the post-acute and home care management sectors, and the Walgreens Health organic business that contracts with different participants in the healthcare ecosystem to provide commercial and clinical healthcare services.

The results of operations for reportable segments include procurement benefits. Corporate-related overhead costs are not allocated to reportable segments and are reported in “Corporate and Other”.
The following table reflects results of operations of the Company’s reportable segments (in millions):
202420232022
Sales:
U.S. Retail Pharmacy
Pharmacy$88,867 $82,118 $80,434 
Retail26,911 28,195 28,643 
Total$115,778 $110,314 $109,078 
International
Pharmacy$3,598 $3,664 $3,727 
Retail7,887 7,324 6,924 
Wholesale12,067 11,211 11,178 
Total$23,552 $22,198 $21,830 
U.S. Healthcare$8,345 $6,570 $1,795 
Corporate and Other 1
$(16)$— $— 
Walgreens Boots Alliance, Inc.$147,658 $139,081 $132,703 
Adjusted operating income:
U.S. Retail Pharmacy$2,167 $3,689 $5,029 
International793 935 726 
U.S. Healthcare(134)(566)(370)
Corporate and Other
(202)(187)(251)
Walgreens Boots Alliance, Inc.$2,624 $3,871 $5,133 
Depreciation and amortization:
U.S. Retail Pharmacy$1,422 $1,362 $1,415 
International370 328 355 
U.S. Healthcare651 560 211 
Corporate and Other16 8 9 
Walgreens Boots Alliance, Inc.$2,459 $2,257 $1,990 
Capital expenditures:
U.S. Retail Pharmacy$1,041 $1,421 $1,207 
International247 308 295 
U.S. Healthcare91 375 218 
Corporate and Other2 13 15 
Walgreens Boots Alliance, Inc.$1,381 $2,117 $1,734 

1.Includes certain eliminations.
The following table reconciles adjusted operating income to operating (loss) income (in millions):
202420232022
Adjusted operating income (Non-GAAP measure):$2,624 $3,871 $5,133 
Impairment of goodwill, intangibles and long-lived assets(13,422)(299)(783)
Acquisition-related amortization(1,075)(1,126)(855)
Transformational cost management(891)(1,181)(763)
Acquisition-related costs(542)(323)(223)
Certain legal and regulatory accruals and settlements(561)(7,466)(768)
Adjustments to equity earnings in Cencora(162)(211)(218)
LIFO provision(47)(187)(135)
Store damage and inventory loss insurance recovery— 40 — 
Operating (loss) income (GAAP measure)$(14,076)$(6,882)$1,387 

No single customer accounted for more than 10% of the Company’s consolidated sales for any of the periods presented. Substantially all of our pharmacy sales are to customers covered by third-party payors (e.g., pharmacy benefit managers, insurance companies and governmental agencies) that agree to pay for all or a portion of a customer’s eligible prescription purchases. In the U.S. Retail Pharmacy segment, three third-party payors accounted for approximately 34%, 33%, and 31% of the Company’s consolidated sales in fiscal 2024, 2023 and 2022, respectively.

Geographic data for sales is as follows (in millions):
 202420232022
United States$124,176 $116,883 $110,873 
Germany12,067 11,211 11,178 
United Kingdom9,550 8,984 8,894 
Other1,864 2,003 1,757 
Sales$147,658 $139,081 $132,703 

Geographic data for long-lived assets, defined as operating lease right-of-use assets and property, plant and equipment, is as follows (in millions):
 20242023
United States$25,873 $28,951 
United Kingdom3,538 3,622 
Other697 681 
Total long-lived assets$30,108 $33,254