Walgreens 2014 Annual Report Download - page 2

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Additional Background
On 31 December 2014, Walgreens Boots Alliance became
the successor of Walgreen Co. pursuant to a merger
designed to eect a reorganization of Walgreens
into a holding company structure. Pursuant to the
reorganization, Walgreens became a wholly-owned
subsidiary of Walgreens Boots Alliance, a newly-formed
Delaware corporation whose common stock trades on
the Nasdaq Stock Market under the trading symbol WBA.
Upon completion of the holding company reorganization
and the combination, Alliance Boots became a
consolidated subsidiary of Walgreens Boots Alliance.
Prior to 31 December 2014, Walgreen Co.’s operations were
within one reportable segment that included the results of
Walgreens Boots Alliance’s Retail Pharmacy USA division
along with synergies from Walgreens Boots Alliance
Development, Inc. (WBAD), equity earnings from Alliance
Boots (reported on a three-month lag) and corporate costs.
Following completion of the combination, the company
eliminated the three-month Alliance Boots reporting lag.
Additionally, Walgreens Boots Alliance has organized its
operations and is reporting its results in three segments:
Retail Pharmacy USA, Retail Pharmacy International and
Pharmaceutical Wholesale.
• The Retail Pharmacy USA segment consists of the legacy
Walgreens business, which includes the operation of
retail drugstores and convenient care clinics, in addition
to providing specialty pharmacy services.
• The Retail Pharmacy International segment consists
primarily of the legacy Alliance Boots health and beauty
retail operations comprised of retail drugstores, optician
stores, and contract manufacturing operations.
• The Pharmaceutical Wholesale segment consists of the
legacy Alliance Boots pharmaceutical wholesaling and
distribution businesses.
Our company is in an exciting era of progress and
transformation. Accordingly, you should read this annual
report together with our more recent public disclosures.
For information regarding developments subsequent to
the fiscal year covered by this annual report, please refer
to the filings of Walgreens Boots Alliance, Inc. (and its
predecessor, Walgreen Co.) with the Securities and
Exchange Commission available through the website
maintained by the SEC at www.sec.gov or the company’s
investor relations website at
http://investor.walgreensbootsalliance.com.
Walgreens Boots Alliance, Inc.
Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing
enterprise in the world. Our purpose is to help people across the world lead healthier
and happier lives.
Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots,
bringing together two leading companies with iconic brands, complementary geographic footprints,
shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and
community pharmacy care, dating back more than 100 years.
The company, with a presence in more than 25* countries, employs over 370,000* people and is the
largest retail pharmacy, health and daily living destination in the USA and Europe, and (including equity
method investments) is:
• the global leader in pharmacy-led, health and wellbeing retail with over 12,800* stores in
11* countries;
• the largest global pharmaceutical wholesale and distribution network with over 340* distribution
centers delivering to more than 180,000† pharmacies, doctors, health centers and hospitals
each year in 19* countries; and
• the world’s largest purchaser of prescription drugs and many other health and wellbeing products.
The company’s size, scale and expertise will help us to expand the supply of, and address the rising
cost of, prescription drugs in the USA and worldwide.
* As at 30 November 2014 including equity method investments on a pro-forma basis (excluding Alliance Healthcare Italia which
ceased to be an equity method investment of Alliance Boots in December 2014)
† For year ended 30 November 2014 including equity method investments on a pro-forma basis (excluding Alliance Healthcare Italia
which ceased to be an equity method investment of Alliance Boots in December 2014)