Walgreens 2012 Annual Report Download - page 19

Five-Year Summary of Selected Consolidated Financial Data
Walgreen Co. and Subsidiaries (Dollars in millions, except per share and location amounts)
Fiscal Year 2012(1) 2011 2010(4) 2009 2008
Net Sales $ 71,633 $ 72,184 $ 67,420 $ 63,335 $ 59,034
Cost of sales (2) 51,291 51,692 48,444 45,722 42,391
Gross Profit 20,342 20,492 18,976 17,613 16,643
Selling, general and administrative expenses (1) (2) (6) 16,878 16,561 15,518 14,366 13,202
Gain on sale of business (3) — 434 — — —
Operating Income 3,464 4,365 3,458 3,247 3,441
Interest expense, net (1) (88) (71) (85) (83) (11)
Earnings Before Income Tax Provision 3,376 4,294 3,373 3,164 3,430
Income tax provision (5) 1,249 1,580 1,282 1,158 1,273
Net Earnings $ 2,127 $ 2,714 $ 2,091 $ 2,006 $ 2,157
Per Common Share Net earnings
Basic $ 2.43 $ 2.97 $ 2.13 $ 2.03 $ 2.18
Diluted 2.42 2.94 2.12 2.02 2.17
Dividends declared .95 .75 .59 .48 .40
Book value 19.32 16.69 15.34 14.54 13.01
Non-Current Liabilities Long-term debt $ 4,073 $ 2,396 $ 2,389 $ 2,336 $ 1,337
Deferred income taxes 545 343 318 265 150
Other non-current liabilities 1,886 1,785 1,735 1,396 1,410
Assets and Equity Total Assets $ 33,462 $ 27,454 $ 26,275 $ 25,142 $ 22,410
Shareholders’ Equity 18,236 14,847 14,400 14,376 12,869
Return on average shareholders’ equity 12.9% 18.6% 14.5% 14.7% 18.0%
Locations Year-end (7) 8,385 8,210 8,046 7,496 6,934
(1) On August 2, 2012, the Company completed the acquisition of 45% of the issued and outstanding share capital of Alliance Boots GmbH in exchange
for cash and Company shares. The Company accounts for this investment using the equity method of accounting on a one-month lag basis. Because
the closing of this investment occurred within one month of the Company’s fiscal year end, the results of operations of Alliance Boots GmbH are
not reflected in the Company’s reported net earnings for fiscal 2012. Transaction costs associated with the investment were $90 million pre-tax,
$82 million or $.11 per diluted share, after tax and after including the earnings per share impact of issuing shares to finance the investment. Costs included
$69 million in selling, general and administrative expenses and $21 million of interest expense.
(2) Fiscal 2011, 2010 and 2009 included Rewiring for Growth restructuring and restructuring-related charges of $45 million pre-tax, $28 million after tax;
$106 million pre-tax, $67 million after tax; and $252 million pre-tax, $160 million after tax, 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 2012, 2011, 2010 and 2009 included expenses
related to Customer Centric Retailing store conversions of $15 million, $84 million, $45 million and $5 million, respectively, all of which were included
in selling, general and administrative expenses.
(3) 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 or $.30 per diluted share, after tax.
(4) Includes results of Duane Reade operations since the April 9, 2010 acquisition date.
(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) Fiscal 2008 included a positive adjustment of $79 million pre-tax, $50 million after tax, relating to an adjustment of the Company’s vacation liability.
(7) Locations include drugstores, worksite health and wellness centers, infusion and respiratory services facilities, specialty pharmacies and mail service
facilities. The foregoing does not include locations of unconsolidated partially owned entities, such as Alliance Boots GmbH, of which the Company
owns 45% of the outstanding share capital.
2012 Walgreens Annual Report 17