Walgreens 2015 Annual Report Download - page 117

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In addition, the Company continued to repurchase shares to support the needs of the employee stock plans.
Shares totaling $500 million were purchased to support the needs of the employee stock plans during fiscal 2015
as compared to $705 million in fiscal 2014. At August 31, 2015, 46.2 million shares of common stock were
reserved for future issuances under the Company’s various employee benefit plans.
18. Accumulated Other Comprehensive Income (Loss)
The following is a summary of net changes in accumulated other comprehensive income by component and net
of tax for fiscal 2015, 2014 and 2013 (in millions):
Post-
retirement
Liability
Unrecognized
Gains on
Available-for-
Sale
Investments
Unrealized
Loss on
Cash Flow
Hedges
Share of
Alliance
Boots
OCI
Currency
Translation
Adjustments Total
Balance at August 31, 2012 $ 68 $— $— $ — $ — $ 68
Other comprehensive income (loss) before
reclassification adjustments (9) 1 — (146) (93) (247)
Tax benefit (provision) 4 — — 51 32 87
Net other comprehensive income (loss) (5) 1 (95) (61) (160)
Balance at August 31, 2013 63 1 — (95) (61) (92)
Other comprehensive income (loss) before
reclassification adjustments (77) 170 (43) (27) 330 353
Tax benefit (provision) 29 (64) 16 9 (115) (125)
Net other comprehensive income (loss) (48) 106 (27) (18) 215 228
Balance at August 31, 2014 15 107 (27) (113) 154 136
Other comprehensive income (loss) before
reclassification adjustments 23 247 (14) (57) (779) (580)
Amounts reclassified from accumulated
OCI — — (5) 230 80 305
Tax benefit (provision) (9) (95) 6 (60) 83 (75)
Net other comprehensive income (loss) 14 152 (13) 113 (616) (350)
Balance at August 31, 2015 $ 29 $259 $ (40) $ — $(462) $(214)
19. Segment Reporting
Prior to December 31, 2014, the Company’s operations were within one reportable segment. As a result of the
closing of the Second Step Transaction on December 31, 2014, (see Note 1, Organization, and Note 2, Summary
of Major Accounting Policies), the Company has realigned its operations into three reportable segments: Retail
Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. 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, which have been aggregated as described below. 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.
• 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. Revenues for the segment are principally derived from the sale of prescription drugs and a
wide assortment of general merchandise, including non-prescription drugs, beauty products, photo
finishing, seasonal merchandise, greeting cards and convenience foods.
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