Walgreens 2010 Annual Report Download - page 40

Page 38 2010 Walgreens Annual Report
Notes to Consolidated Financial Statements (continued)
Amounts recognized in accumulated other comprehensive (income) loss
(In millions):
2010 2009
Prior service credit $ (131) $ (141)
Net actuarial loss 188 104
Amounts expected to be recognized as components of net periodic costs
for fiscal year 2011 (In millions):
2011
Prior service credit $ (10)
Net actuarial loss 14
The measurement date used to determine postretirement benefits is August 31.
The discount rate assumption used to compute the postretirement benefit obli-
gation at year-end was 4.95% for 2010 and 6.15% for 2009. The discount rate
assumption used to determine net periodic benefit cost was 6.15%, 7.50% and
6.50% for fiscal years ending 2010, 2009 and 2008, respectively.
Future benefit costs were estimated assuming medical costs would increase at a
7.50% annual rate, gradually decreasing to 5.25% over the next nine 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 $ (3) $ 2
Effect on postretirement obligation (22) 15
Estimated future benefit payments and federal subsidy (In millions):
Estimated Estimated
Future Benefit Federal
Payments Subsidy
2011 $ 13 $ 1
2012 14 1
2013 15 2
2014 17 2
2015 19 2
2016—2020 136 18
The expected benefit to be paid net of the estimated federal subsidy during fiscal
year 2011 is $12 million.
14. Supplementary Financial Information
Non-cash transactions in fiscal 2010 include a $95 million increase in the retiree
medical benefit liability, $29 million in dividends declared and $44 million in accrued
liabilities related to the purchase of property and equipment. Non-cash transactions
in fiscal 2009 include $25 million in dividends declared and $20 million in accrued
liabilities related to the purchase of property and equipment.
Included in the Consolidated Balance Sheets captions are the following assets
and liabilities (In millions):
2010 2009
Accounts receivable —
Accounts receivable $ 2,554 $ 2,606
Allowance for doubtful accounts (104) (110)
$ 2,450 $ 2,496
Other non-current assets —
Intangible assets, net (see Note 5) $ 1,114 $ 697
Other 168 133
$ 1,282 $ 830
Accrued expenses and other liabilities —
Accrued salaries $ 781 $ 687
Taxes other than income taxes 419 408
Insurance 233 164
Profit sharing 197 192
Other 1,133 955
$ 2,763 $ 2,406
Other non-current liabilities —
Postretirement health care benefits $ 430 $ 317
Accrued rent 384 319
Insurance 330 330
Other 591 430
$ 1,735 $ 1,396