Walgreens 2004 Annual Report Download - page 5

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5
(ix) Government contracts.
The company fills prescriptions for many state welfare plans. Revenues from all such plans are
approximately 8.7% of total sales.
(x) Competitive conditions.
The drug store industry is highly competitive. As a volume leader in the retail drug industry,
Walgreens competes with various retailers, including chain and independent drugstores, mail order
prescription providers, Internet pharmacies, grocery stores, mass merchants and dollar stores.
Competition remained keen during the fiscal year with the company competing on the basis of service,
convenience, variety and price. The company's geographic dispersion tends to offset the impact of
temporary economic and competitive conditions in individual markets.
Sales by geographic area for fiscal 2004 were as follows:
State Percent Of Sales
Florida
16
Illinois
11
Texas
10
California
8
Arizona
6
Wisconsin
4
Tennessee
4
37 other states and Puerto Rico
41
100
(xi) Research and development activities.
The company does not engage in any material research activities.
(xii) Environmental disclosures.
Federal, state and local environmental protection requirements have no material effect upon capital
expenditures, earnings or the competitive position of the company.
(xiii) Number of employees.
The company employs approximately 163,000 persons, about 46,000 of whom are part-time employees
working less than 30 hours per week.
(d) Financial information about foreign and domestic operations and export
sales.
All the company sales occur within the continental United States and Puerto Rico. There are no export
sales.