Walgreens 2014 Annual Report Download - page 92

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The Company determines the timing and amount of repurchases from time to time based on its assessment of
various factors including prevailing market conditions, alternate uses of capital, liquidity, the economic
environment and other factors. The timing and amount of these purchases may change at any time and from time
to time. The Company has and may from time to time in the future repurchase shares on the open market through
Rule 10b5-1 plans, which enable a company to repurchase shares at times when it otherwise might be precluded
from doing so under insider trading laws.
In addition, the Company continued to repurchase shares to support the needs of the employee stock
plans. Shares totaling $705 million were purchased to support the needs of the employee stock plans during fiscal
2014 as compared to $615 million in fiscal 2013. At August 31, 2014, 48.4 million shares of common stock were
reserved for future issuances under the Company’s various employee benefit plans.
(14) Stock Compensation Plans
The Walgreen Co. Omnibus Incentive Plan (the “Omnibus Plan”) which became effective in fiscal 2013,
provides for incentive compensation to Walgreens non-employee directors, officers and employees, and
consolidates into a single plan several previously existing equity compensation plans: the Executive Stock Option
Plan, the Long-Term Performance Incentive Plan, the Broad Based Employee Stock Option Plan, and the
Nonemployee Director Stock Plan (collectively, the “Former Plans”). As of the effective date of the Omnibus
Plan, no further grants may be made under the Former Plans and shares that were available for issuance under the
Former Plans and not subject to outstanding awards became available for issuance (in addition to newly
authorized shares) under the Omnibus Plan. A total of 60.4 million shares became available for delivery under
the Omnibus Plan.
A summary of the equity awards authorized and available for future grants under the Omnibus Plan and Former
Plans follows:
Available for future grants at August 31, 2013 56,454,499
Newly authorized options —
Granted (11,209,853)
Cancellation and forfeitures 1,417,145
Plan termination 1,690,451
Available for future grants at August 31, 2014 48,352,242
A summary of the Company’s stock options outstanding under the Omnibus Plan and Former Plans follows:
Shares
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(in millions)
Options
Outstanding at August 31, 2013 41,216,173 $34.69 6.14 $548
Granted 6,744,582 60.70
Exercised (13,832,509) 35.47
Expired/Forfeited (2,211,422) 42.54
Outstanding at August 31, 2014 31,916,824 $39.28 6.40 $674
Unvested at August 31, 2014 18,896,912 $43.33 7.93 $326
Exercisable at August 31, 2014 12,433,713 $32.97 4.04 $343
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