Walgreens 2015 Annual Report Download - page 92

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that, in total, its assumptions and estimates were reasonable. However, future declines in the overall market value
of the Company’s equity and debt securities may indicate that the fair value of one or more reporting units has
declined below its carrying value.
Goodwill added as a result of the Second Step Transaction has been preliminarily allocated to the Retail
Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale reportable segments.
Changes in the carrying amount of goodwill by reportable segment consist of the following activity (in millions):
Retail Pharmacy
USA
Retail Pharmacy
International
Pharmaceutical
Wholesale Total
August 31, 2013 $2,410 $ — $ — $ 2,410
Acquisitions 58 — — 58
Sale of business(1) (92) — — (92)
Other(3) (17) — — (17)
August 31, 2014 2,359 — — 2,359
Acquisitions 7,290 4,036 3,646 14,972
Sale of business(2) (706) — — (706)
Other(3) (3) — — (3)
Currency translation adjustments — (138) (112) (250)
August 31, 2015 $8,940 $3,898 $3,534 $16,372
(1) Represents goodwill associated with Walgreens Take Care Employer business which was sold in June 2014.
(2) Represents goodwill associated with Walgreens Infusion Services business which was sold in April 2015.
(3) Other primarily represents immaterial purchase accounting adjustments for prior year Company
acquisitions.
In fiscal 2015, as a result of the Second Step Transaction, the Company recorded $14.8 billion of goodwill and
$11.7 billion of intangible assets in conjunction with the preliminary purchase accounting. See Note 8,
Acquisitions for additional information regarding the transaction. Additionally, in fiscal 2015 the Company
completed the sale of a majority interest in its subsidiary, Walgreens Infusion Services. As a result, $706 million
of goodwill allocated to this business was removed from the Consolidated Balance Sheet.
In fiscal 2014, the Company completed the sale of a majority interest in its subsidiary, Take Care Employer. As a
result, $92 million of goodwill allocated to this business was removed from the Consolidated Balance Sheet.
Additionally, the Company purchased certain assets of Kerr Drug and its affiliates for $170 million, subject to
adjustment in certain circumstances. The Company recorded $42 million of goodwill and $54 million of
intangible assets in conjunction with the purchase accounting for this acquisition.
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