Walgreens 2014 Annual Report Download - page 96

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The consumer price index assumption used to compute the postretirement benefit obligation was 2.00% for 2014
and 2013.
Future benefit costs were estimated assuming medical costs would increase at a 7.15% 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 $(1) $1
Effect on postretirement obligation (3) 7
Estimated future federal subsidies are immaterial for all periods presented. Future benefit payments are as
follows (in millions):
Estimated
Future Benefit
Payments
2015 $ 12
2016 13
2017 14
2018 16
2019 17
2020-2024 112
The expected benefit to be paid net of the estimated federal subsidy during fiscal year 2015 is $12 million.
(16) Supplementary Financial Information
Significant non-cash transactions in fiscal 2014 include $322 million for additional capital lease
obligations. Significant non-cash transactions in fiscal 2013 include $77 million related to the initial valuation of
the AmerisourceBergen warrants. Significant non-cash transactions in fiscal 2012 include $3 billion in stock
issuance relating to the investment in Alliance Boots.
88