Walgreens 2004 Annual Report Download - page 2

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2
EXPLANATORY NOTE
The purpose of this amendment on Form 10-K/A to the Annual Report on Form 10-K of Walgreen Co. for the fiscal year
ended August 31, 2004 is to restate our consolidated financial statements for fis cal years 2004, 2003 and 2002 and related
disclosures, as described in the Restatement Note on pages 29-30 of the consolidated financial statements, and the selected
financial data included herein as of and for the fiscal years, 2004, 2003, 2002, 2001, 2000, 1999, 1998, 1997, 1996, 1995 and 1994.
Additional information about the decision to restate these financial statements can be found in our Current Report on Form
8-K filed with the Securities and Exchange Commission on March 21, 2005.
No attempt has been made in this Form 10-K/A to modify or update other disclosures presented in the original report on
Form 10-K, except as required to reflect the effects of the restatement and a reclassification of auction rate securities. The
Form 10-K/A does not reflect events occurring after the filing of the Form 10-K or modify or update those disclosures,
including the exhibits to the Form 10-K affected by subsequent events. Information not affected by the restatement is
unchanged and reflects the disclosures made at the time of the original filing of the Form 10-K on November 12, 2004.
Accordingly, this Form 10-K/A should be read in conjunction with our filings made with the Securities and Exchange
Commission subsequent to the filing of the original Form 10-K, including any amendments to those filings. The following
items have been amended as a result of the restatement:
• Part II - Item 6 - Selected Financial Data
• Part II - Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations
• Part II - Item 8 - Financial Statements and Supplementary Data
• Part II - Item 9A - Controls and Procedures
• Part IV - Item 15 - Exhibits and Financial Statement Schedules
DESCRIPTION OF RESTATEMENT
Historically, when accounting for leases, we recorded rent expense on a straight-line basis over the firm term of the lease, with the
term commencing when actual rent payments began. Depreciation of buildings on leased land occurred over a period that may
have included both the firm term of the lease as well as certain option periods.
We have revised our accounting such that the commencement date of all lease terms is the earlier of the date we become legally
obligated to make rent payments or the date we have the right to control the property. Additionally, we recognize rent expense on
a straight-line basis over a time period that equals or exceeds the time period used for depreciation of buildings on leased land.