Walgreens 2015 Annual Report Download - page 5

PART I
Item 1. Business
Overview
Walgreens Boots Alliance, Inc., a Delaware corporation (“Walgreens Boots Alliance”), is the first global,
pharmacy-led health and wellbeing enterprise with net sales of $103.4 billion in the fiscal year ended August 31,
2015. Our purpose is to help people across the world lead healthier and happier lives.
Together with our equity method investments:
• we are a global leader in pharmacy-led health and wellbeing retail, with more than 13,100 stores in 11
countries;
• we are one of the largest global pharmaceutical wholesale and distribution networks, with more than
350 distribution centers delivering to more than 200,000 pharmacies, doctors, health centers and
hospitals each year in 19 countries;
• we are one of the world’s largest purchasers of prescription drugs and other health and wellbeing
products; and
• we employ more than 370,000 employees, of which more than 100,000 are healthcare providers such
as pharmacists, pharmacy technicians, nurse practitioners and other health related professionals.
Our portfolio of retail and business global brands includes Walgreens, Duane Reade, Boots and Alliance
Healthcare, as well as increasingly global health and beauty product brands, including No7, Botanics, Liz Earle
and Soap & Glory. Our global brands portfolio is enhanced by our in-house new product research and
development and manufacturing capabilities. We seek to further drive innovative ways to address global health
and wellness challenges. We believe we are well positioned to expand customer offerings in existing markets and
become a health and wellbeing partner of choice in emerging markets.
Walgreens Boots Alliance was incorporated in Delaware in 2014 and, as described below, is the successor of
Walgreen Co., an Illinois corporation (“Walgreens”), which was formed in 1909 as a successor to a business
founded in 1901. Our principal executive offices are located at 108 Wilmot Road, Deerfield, Illinois 60015. Our
common stock trades on the NASDAQ Stock Market under the symbol “WBA”.
Recent Transactions
On August 2, 2012, Walgreens acquired a 45% equity interest in Alliance Boots GmbH (“Alliance Boots”) along
with a call option to acquire the remaining 55% equity interest in Alliance Boots (the “First Step Transaction”) in
exchange for $4.025 billion in cash and approximately 83.4 million shares of Walgreens common stock.
On December 31, 2014, Walgreens Boots Alliance became the successor of Walgreens pursuant to a merger to
effect a reorganization of Walgreens into a holding company structure (the “Reorganization”), with Walgreens
Boots Alliance becoming the parent holding company. Pursuant to the Reorganization, Walgreens became a
wholly-owned subsidiary of Walgreens Boots Alliance, which was formed for the purposes of the
Reorganization, and each issued and outstanding share of Walgreens common stock was converted into one share
of Walgreens Boots Alliance common stock. Also on December 31, 2014, following the completion of the
Reorganization, Walgreens Boots Alliance completed the acquisition pursuant to the call option of the remaining
55% of Alliance Boots that Walgreens did not previously own (the “Second Step Transaction”) in exchange for
£3.133 billion ($4.874 billion) in cash and 144.3 million shares of Walgreens Boots Alliance common stock.
Prior to the completion of the Second Step Transaction, we accounted for our 45% investment in Alliance Boots
using the equity method of accounting. Investments accounted for under the equity method are recorded initially
at cost and subsequently adjusted for our share of the net income or loss and cash contributions and distributions