5. Equity Method Investments

Equity method investments as of August 31, 2016 and 2015 were as follows (in millions, except percentages):

	2016					2015
	Carrying Value		Ownership Percentage			Carrying Value		Ownership Percentage
AmerisourceBergen	$	4,964		24	%	$	NA	NA
Others		1,210		12% - 50	%		1,242		12% - 50	%
Total	$	6,174				$	1,242

AmerisourceBergen Investment

On March 18, 2016, the Company exercised warrants to purchase 22,696,912 shares of AmerisourceBergen Corporation (“AmerisourceBergen”) common stock at an exercise price of $51.50 per share for an aggregate exercise price payment of $1.17 billion. On August 25, 2016, the Company exercised additional warrants to purchase 22,696,912 shares of AmerisourceBergen common stock at an exercise price of $52.50 per share for an aggregate exercise price payment of $1.19 billion. As of August 31, 2016, the Company owned 56,854,867 AmerisourceBergen common shares representing approximately 24% of the outstanding AmerisourceBergen common stock and accounts for its equity investment in AmerisourceBergen using the equity method of accounting, with the net earnings attributable to the Company’s investment being classified within the operating income of its Pharmaceutical Wholesale segment. Due to the timing and availability of financial information of AmerisourceBergen, we account for this equity method investment on a financial reporting lag of two months. Due to the change in accounting method to equity method effective March 18, 2016 and the two-month reporting lag, the Company’s results for fiscal 2016 include approximately three and a half months of equity method income. Equity earnings from AmerisourceBergen is reported as a separate line in the Consolidated Statements of Earnings. The level 1 fair market value of the Company’s equity investment in AmerisourceBergen common stock at August 31, 2016 is $4.9 billion.

The Company’s investment in AmerisourceBergen carrying value exceeded its proportionate share of the net assets of AmerisourceBergen by $4.5 billion. This premium of $4.5 billion was recognized as part of the carrying value in the Company’s equity investment in AmerisourceBergen. The difference was primarily related to goodwill and the fair value of AmerisourceBergen intangible assets.

Other Investments

The Company’s other equity method investments include its investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Corporation Limited, the Company’s pharmaceutical wholesale investments in China; and the equity method investment retained through the sale of a majority interest in Option Care Inc. in fiscal 2015. The Company reported $44 million and $24 million of post-tax equity earnings from equity method investments other than AmerisourceBergen and Alliance Boots for fiscal 2016 and 2015, respectively. Post-tax equity earnings from the historical Walgreens other equity method investments in fiscal 2014 were immaterial.

Also in fiscal 2015, the Company accounted for its 45% investment in Alliance Boots using the equity method of accounting. The Company utilized a three-month reporting lag in recording equity income in Alliance Boots, which was eliminated on December 31, 2014. The Company’s share of Alliance Boots earnings was recorded as Equity earnings in Alliance Boots in the Consolidated Statements of Earnings. The Company’s investment was recorded as Equity investment in Alliance Boots in the Consolidated Balance Sheets.

Summarized Financial Information

Summarized financial information for the Company’s equity method investment in Alliance Boots is as follows:

Statements of Earnings (in millions)
	Year Ended August 31,
	2016	2015⁽¹⁾		2014^(l)
Net sales	NA	$	13,071	$	37,579
Gross Profit	NA		3,050		8,096
Net Earnings	NA		723		1,444
Share of earnings from equity method investments⁽¹⁾	NA		315		617

^(l)	Earnings in foreign equity method investments are translated at their respective average exchange rates.