Walgreens 2014 Annual Report Download - page 45

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(2) 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. In fiscal 2013, the
Company recorded an additional pre-tax gain of $20 million relating to a client retention escrow.
(3) In fiscal 2014, the Company recognized a non-cash loss of $866 million related to the amendment and
exercise of the Alliance Boots call option to acquire the remaining 55% share capital of Alliance Boots. In
addition, the Company, Alliance Boots and AmerisourceBergen entered into a Framework Agreement, dated
as of March 18, 2013, pursuant to which, among other things, the Company was issued warrants to purchase
AmerisourceBergen common stock. In fiscal 2014 and 2013, the Company recorded pre-tax income of $385
million and $120 million, respectively, from fair value adjustments of the warrants and the amortization of
the deferred credit associated with the initial value of the warrants.
(4) Includes results of Duane Reade operations since the April 9, 2010 acquisition date.
(5) Locations include drugstores, infusion and respiratory services facilities, specialty pharmacies and mail
service facilities. Locations in 2010 through 2013 also included worksite health and wellness centers, which
were part of the Take Care Employer business in which we sold a majority interest in fiscal 2014. The
foregoing does not include locations of unconsolidated partially owned entities, such as Alliance Boots, of
which the Company owns 45% of the outstanding share capital as of the date of this report.
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