Walgreens 2015 Annual Report Download - page 114
Download and view the complete annual report
Please find page 114 of the 2015 Walgreens annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
 |
 |
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension
plans with accumulated benefit obligations in excess of plan assets at August 31, 2015 were as follows (in
millions):
2015
Projected benefit obligation $8,635
Accumulated benefit obligation 8,624
Fair value of plan assets 8,936
Estimated future benefit payments from defined benefit pension plans to participants are as follows (in millions):
Estimated Future
Benefit
Payments
2016 $ 288
2017 284
2018 293
2019 303
2020 311
2021-2025 1,707
The assumptions used in accounting for the defined benefit pension plans were as follows:
2015
Weighted-average assumptions used to determine benefit obligations
Discount rate 3.87%
Rate of compensation increase 2.55%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate 3.77%
Expected long-term return on plan assets 2.99%
Rate of compensation increase 2.66%
The Company made cash contributions to its defined benefit pension plans of $148 million from the date of the
Second Step Transaction to August 31, 2015 which primarily related to committed deficit funding payments
triggered by the Second Step Transaction. Based on current actuarial estimates, the Company plans to make
contributions of $75 million to its defined benefit pension plans in fiscal 2016 and expects to make contributions
beyond 2016, which will vary based upon many factors, including the performance of the Company’s pension
investments.
Defined Contribution Plans
The principal retirement plan for U.S. employees is the Walgreen Profit-Sharing Retirement Trust, to which both
the Company and participating employees contribute. The Company’s contribution, which has historically related
to adjusted FIFO earnings before interest and taxes and a portion of which is in the form of a guaranteed match,
is determined annually at the discretion of the Board of Directors. The profit-sharing provision was an expense of
$158 million, $355 and $342 million in fiscal 2015, 2014 and 2013, respectively. The Company’s contributions
were $249 million, $328 million and $262 million in fiscal 2015, 2014 and 2013, respectively.
Following the Second Step Transaction, the Company also assumed certain contract based defined contribution
arrangements. The principal one is the Alliance Boots Retirement Savings Plan, which is United Kingdom based
and to which both the Company and participating employees contribute. The cost related to these arrangements
recognized in the Consolidated Statements of Earnings from the date of the Second Step Transaction through
August 31, 2015 was $93 million.
- 110 -