Walgreens 2014 Annual Report Download - page 95

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Change in benefit obligation (in millions):
2014 2013
Benefit obligation at September 1 $350 $342
Service cost 8 9
Interest cost 17 14
Amendments (23) —
Actuarial loss (gain) 88 (1)
Benefit payments (19) (20)
Participants’ contributions 6 6
Benefit obligation at August 31 $427 $350
Change in plan assets (in millions):
2014 2013
Plan assets at fair value at September 1 $— $—
Participants’ contributions 6 6
Employer contributions 13 14
Benefits paid (19) (20)
Plan assets at fair value at August 31 $— $—
Funded status (in millions):
2014 2013
Funded status at August 31 $(427) $(350)
Amounts recognized in the Consolidated Balance Sheets (in millions):
2014 2013
Current liabilities (present value of expected 2015 net benefit payments) $ (11) $ (10)
Non-current liabilities (416) (340)
Net liability recognized at August 31 $(427) $(350)
Amounts recognized in accumulated other comprehensive (income) loss (in millions):
2014 2013
Prior service credit $(228) $(228)
Net actuarial loss 225 148
Amounts expected to be recognized as components of net periodic costs for fiscal year 2015 (in millions):
2015
Prior service credit $(24)
Net actuarial loss 19
The measurement date used to determine postretirement benefits is August 31.
The discount rate assumption used to compute the postretirement benefit obligation at year-end was 4.40% for
2014 and 5.20% for 2013. The discount rate assumption used to determine net periodic benefit cost was 5.05%,
4.15% and 5.40% for fiscal years ending 2014, 2013 and 2012, respectively.
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