Retirement Benefits

6 Months Ended

Feb. 29, 2012

Notes to Financial Statements [Abstract]

Retirement Benfits

Note 5.  Retirement Benefits

The principal retirement plan for 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 pre-tax income 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 $85 million for the quarter and $164 million for the six month period of fiscal 2012 compared to $106 million and $188 million in the same periods last year.  The Company’s contributions, which are made annually in the second quarter, were $372 million in the current period.  This compares to $322 million for the prior year.

The Company provides certain health insurance benefits for retired employees who meet eligibility requirements, including age, years of service and date of hire.  The costs of these benefits are accrued over the service life of the employee. The Company's postretirement health benefit plan is not funded.

Components of Net Periodic Benefit Costs (In millions):

	Three Months Ended						Six Months Ended
	February 29,			February 28,			February 29,			February 28,
	2012			2011			2012			2011
Service cost	$	3		$	4		$	6		$	7
Interest cost		6			5			11			11
Amortization of actuarial loss		2			4			4			7
Amortization of prior service cost		(3	)		(3	)		(5	)		(5	)
Total postretirement benefit cost	$	8		$	10		$	16		$	20