Walgreens 2015 Annual Report Download - page 116

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Amounts recognized in accumulated other comprehensive (income) loss (in millions):
2015 2014
Prior service credit $(231) $(228)
Net actuarial loss 223 225
Amounts expected to be recognized as components of net periodic costs for fiscal year 2016 (in millions):
2016
Prior service credit $(27)
Net actuarial loss 19
The discount rate assumption used to compute the postretirement benefit obligation at year-end was 4.78% for
2015, and 4.40% for 2014. The discount rate assumption used to determine net periodic benefit cost was 4.40%,
5.05% and 4.15% for fiscal years ending 2015, 2014 and 2013, respectively.
The consumer price index assumption used to compute the postretirement benefit obligation was 2.00% for 2015
and 2014.
Future benefit costs were estimated assuming medical costs would increase at a 7.15% annual rate, gradually
decreasing to 5.25% over the next nine years and then remaining at a 5.25% annual growth rate thereafter. A one
percentage point change in the assumed medical cost trend rate would have the following effects (in millions):
1% Increase 1% Decrease
Effect on service and interest cost $ (1) $ 1
Effect on postretirement obligation 17 (13)
Estimated future federal subsidies are immaterial for all periods presented. Future benefit payments are as
follows (in millions):
Estimated Future
Benefit Payments
2016 $10
2017 11
2018 12
2019 13
2020 14
2021-2025 98
The expected benefit to be paid net of the estimated federal subsidy during fiscal year 2016 is $10 million.
17. Capital Stock
In connection with the Company’s capital policy, the Board of Directors has authorized share repurchase
programs. In August 2014, the Company’s Board of Directors authorized the 2014 stock repurchase program
which authorizes the repurchase of up to $3.0 billion of the Company’s common stock prior to its expiration on
August 31, 2016. The Company purchased 8.2 million shares under the 2014 stock repurchase program in fiscal
2015 at a cost of $726 million.
The Company determines the timing and amount of repurchases 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 repurchased, 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.
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