Walgreens 2004 Annual Report Download - page 35

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35
Benefits paid (7.1)
(6.9)
Plan assets at fair value at August 31 $ - $ -
Funded status (In Millions):
2004 2003
Funded status $(392.5)
$(349.6)
Unrecognized actuarial loss 220.1 197.0
Unrecognized prior service cost (32.1)
(6.2)
Accrued benefit cost at August 31 $(204.5)
$(158.8)
The measurement date used to determine the postretirement benefits is as of fiscal year ending August 31. The discount rate
assumptions used to compute the postretirement benefit obligation at year-end were 6.5% for 2004 and 2003. The discount rate
assumption used to determine net periodic benefit cost was 6.5% for 2004, 7.0% for 2003 and 7.5% for 2002.
Future benefit costs were estimated assuming medical costs would increase at an 8.0% annual rate decreasing to 5.25% over the
next five 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 $ 12.1
$ (8.9)
Effect on postretirement obligation 99.2
(74.1)
Estimated future benefit payments (In Millions):
2005 $ 7.1
2006 6.8
2007 7.8
2008 8.9
2009 10.3
2010-2014 69.7
The expected contribution to be paid during fiscal year 2005 is $7.1 million.
On December 8, 2003, the Medicare Prescription Drug Improvement and Modernization Act of 2003 was signed into law. The
Act introduces a prescription drug benefit under Medicare as well as a federal subsidy to sponsors of retirement health care
benefit plans. The retiree medical obligations and costs reported do not reflect the impact of this legislation.
Supplementary Financial Information
Included in the Consolidated Balance Sheets captions are the following assets and liabilities (In Millions):
2004 2003
Accounts receivable -
Accounts receivable $1,197.4 $1,044.9
Allowances for doubtful accounts (28.3)
(27.1)
$1,169.1 $1,017.8
Accrued expenses and other liabilities -
Accrued salaries $465.3 $376.4
Taxes other than income taxes 217.5 213.9
Profit sharing 194.0 166.4
Other 493.7 401.1
$1,370.5 $1,157.8