Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Walgreens Boots Alliance Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Net earnings	3,962)	5,031)	4,101)	4,191)	4,279)	2,031)
Pension/postretirement obligations	(149)	240)	73)	(241)	14)	(48)
Unrealized gain (loss) on cash flow hedges	60)	3)	4)	3)	(13)	(27)
Unrecognized gain (loss) on available-for-sale investments	—)	—)	(2)	(257)	152)	106)
Share of other comprehensive income (loss) of equity method investments	(1)	5)	(1)	(1)	113)	(41)
Cumulative translation adjustments	(819)	(198)	(169)	(2,338)	(622)	286)
Other comprehensive income (loss), net of tax	(909)	50)	(95)	(2,834)	(356)	276)
Comprehensive income	3,053)	5,081)	4,006)	1,357)	3,923)	2,307)
Comprehensive (income) loss attributable to noncontrolling interests	33)	(8)	13)	39)	(53)	(99)
Comprehensive income attributable to Walgreens Boots Alliance, Inc.	3,086)	5,073)	4,019)	1,396)	3,870)	2,208)

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

The financial performance from 2014 to 2019 exhibits a general growth trajectory in net earnings, although total comprehensive income was characterized by significant volatility driven by non-operational adjustments.

Net Earnings Performance: Net earnings experienced a substantial increase from 2,031 million USD in 2014, peaking at 5,031 million USD in 2018. This growth was followed by a contraction in 2019, where earnings declined to 3,962 million USD, marking a decrease of approximately 21% from the 2018 peak.
Comprehensive Income Volatility: A divergence is observed between net earnings and total comprehensive income, particularly in 2016 and 2019. In 2016, comprehensive income fell to 1,357 million USD despite net earnings remaining robust at 4,191 million USD. A similar pattern appeared in 2019, with comprehensive income dropping to 3,053 million USD.
Impact of Other Comprehensive Income (OCI): The volatility in comprehensive income is primarily attributed to cumulative translation adjustments and unrealized losses. The most significant negative impact occurred in 2016, where cumulative translation adjustments totaled -2,338 million USD. Further downward pressure was observed in 2019, with translation adjustments contributing -819 million USD to the overall loss in OCI.
Ancillary Financial Components: Pension and postretirement obligations fluctuated inconsistently, alternating between gains and losses across the six-year period. Unrealized gains on cash flow hedges remained marginal until a peak of 60 million USD in 2019. Comprehensive income attributable to noncontrolling interests remained negligible in proportion to the total comprehensive income attributable to the parent company.

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Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Statement of Comprehensive Income