Walgreens 2011 Annual Report Download - page 19

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Five-Year Summary of Selected Consolidated Financial Data
Walgreen Co. and Subsidiaries (Dollars in millions, except per share and location amounts)
Fiscal Year 2011 2010 (1) 2009 2008 2007
Net Sales $ 72,184 $ 67,420 $ 63,335 $ 59,034 $ 53,762
Cost of sales (2) 51,692 48,444 45,722 42,391 38,518
Gross Profit 20,492 18,976 17,613 16,643 15,244
Selling, general and administrative expenses (2) (3) 16,561 15,518 14,366 13,202 12,093
Gain on sale of business (4) 434 — — — —
Operating Income 4,365 3,458 3,247 3,441 3,151
Other (expense) income (71) (85) (83) (11) 38
Earnings Before Income Tax Provision 4,294 3,373 3,164 3,430 3,189
Income tax provision (5) 1,580 1,282 1,158 1,273 1,148
Net Earnings $ 2,714 $ 2,091 $ 2,006 $ 2,157 $ 2,041
Per Common Share Net earnings
Basic $ 2.97 $ 2.13 $ 2.03 $ 2.18 $ 2.04
Diluted 2.94 2.12 2.02 2.17 2.03
Dividends declared .75 .59 .48 .40 .33
Book value 16.69 15.34 14.54 13.01 11.20
Non-Current Liabilities Long-term debt $ 2,396 $ 2,389 $ 2,336 $ 1,337 $ 22
Deferred income taxes 343 318 265 150 158
Other non-current liabilities 1,785 1,735 1,396 1,410 1,285
Assets and Equity Total Assets $ 27,454 $ 26,275 $ 25,142 $ 22,410 $ 19,314
Shareholders’ Equity 14,847 14,400 14,376 12,869 11,104
Return on average shareholders’ equity 18.6% 14.5% 14.7% 18.0% 19.2%
Locations Year-end (6) 8,210 8,046 7,496 6,934 5,997
(1) Includes results of Duane Reade operations since the April 9, 2010 acquisition date.
(2) Fiscal 2011, 2010 and 2009 included Rewiring for Growth restructuring and restructuring-related charges of $45 million pre-tax, $28 million after tax,
or $.03 per diluted share, $106 million pre-tax, $67 million after tax, or $.07 per diluted share, and $252 million pre-tax, $160 million after tax, or $.16 per
diluted share, respectively. Charges included in cost of sales for fiscal 2011, 2010 and 2009 were $3 million, $40 million and $95 million, respectively.
Selling, general and administrative expenses related to the initiative for fiscal 2011, 2010 and 2009 were $42 million, $66 million and $157 million, respectively.
Fiscal 2011, 2010 and 2009 included expenses related to Customer Centric Retailing store conversions of $84 million, $45 million and $5 million, respectively,
all of which were included in selling, general and administrative expenses.
(3) Fiscal 2008 included a positive adjustment of $79 million pre-tax, $50 million after tax, or $.05 per diluted share, relating to an adjustment of the Company’s
vacation liability.
(4) In fiscal 2011, the Company sold its pharmacy benefit management business, Walgreens Health Initiatives, Inc., to Catalyst Health Solutions, Inc.
and recorded a pre-tax gain of $434 million, $273 million after tax, or $.30 per diluted share.
(5) Fiscal 2010 included a deferred tax charge of $43 million related to the repeal of a tax benefit for the Medicare Part D subsidy for retiree benefits.
(6) Locations include drugstores, worksite health and wellness centers, infusion and respiratory services facilities, specialty pharmacies and mail service facilities.
2011 Walgreens Annual Report Page 17