WBA Walgreens Boots Alliance, Inc.

Risks

• Reductions in third-party reimbursement levels, from private or governmental agency plans, and potential changes in industry pricing benchmarks for prescription drugs could materially and adversely affect our results of operations.
• A shift in pharmacy mix toward lower margin plans, products, and programs could adversely affect our results of operations.
• We derive a significant portion of our sales in the United States from prescription drug sales reimbursed by a limited number of pharmacy benefit management companies.
• We could be adversely affected by a decrease in the introduction of new brand name and generic prescription drugs as well as increases in the cost to procure prescription drugs.
• Consolidation and strategic alliances in the healthcare industry could adversely affect our business operations, competitive positioning, financial condition and results of operations.
• Our growth strategy is partially dependent upon our ability to identify and successfully complete acquisitions, joint ventures and other strategic partnerships and alliances.
• We are exposed to risks related to litigation and other legal proceedings.
• Our business results depend on our ability to successfully manage ongoing organizational change and business transformation and achieve cost savings and operating efficiency initiatives.
• The industries in which we operate are highly competitive and constantly evolving. New entrants to the market, existing competitor actions or other changes in market dynamics could adversely impact us.
• Our substantial international business operations subject us to a number of operating, economic, political, regulatory and other international business risks.
• We are exposed to risks associated with foreign currency exchange rate fluctuations.
• We may experience a significant disruption in our information technology and computer systems.
• If we or the businesses we interact with do not maintain the privacy and security of sensitive customer and business information, it could damage our reputation and we could suffer a loss of revenue, incur substantial additional costs and become subject to litigation and regulatory scrutiny.
• A significant change in, or noncompliance with, governmental regulations and other legal requirements could have a material adverse effect on our reputation and profitability.
• We could be adversely affected by violations of anti-bribery, anti-corruption and/or international trade laws.
• Disruption in our global supply chain could negatively impact our businesses.
• We use a single wholesaler of branded and generic pharmaceutical drugs as our primary source of such products for our Retail Pharmacy USA division.
• The anticipated strategic and financial benefits of our relationship with AmerisourceBergen may not be realized.
• We may not realize the anticipated benefits of the acquisition of assets from Rite Aid, which could adversely impact our results of operations.
• From time to time, we make investments in companies over which we do not have sole control. Some of these companies may operate in sectors that differ from our current operations and have different risks.
• Changes in economic conditions could adversely affect consumer buying practices.
• Economic conditions in Europe and certain emerging market countries, together with austerity measures being taken by certain governments, could adversely affect us.
• If we do not successfully develop and maintain a relevant omni-channel experience for our customers, our businesses and results of operations could be adversely impacted.
• If the merchandise and services that we offer fail to meet customer needs, our sales may be adversely affected.
• Our private brand offerings expose us to various additional risks.
• We face significant competition in attracting and retaining talented employees. Further, managing succession for, and retention of, key executives is critical to our success, and failure to do so could have an adverse impact on our future performance.
• We are subject to payment-related and other financial services risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and potentially disrupt our business operations.
• Changes in healthcare regulatory environments may adversely affect our businesses.
• We could be adversely affected by product liability, product recall, personal injury or other health and safety issues.
• We have significant outstanding debt; our debt and associated payment obligations could significantly increase in the future if we incur additional debt and do not retire existing debt.
• We could be adversely affected by downgrades to our credit ratings or disruptions in our ability to access well-functioning capital markets.
• We may be unable to keep existing store locations or open new locations in desirable places on favorable terms, which could materially and adversely affect our results of operations.
• As a holding company, Walgreens Boots Alliance is dependent on funding from its operating subsidiaries to pay dividends and other obligations.
• Our quarterly results may fluctuate significantly.
• Our businesses are seasonal in nature, and adverse events during the holiday and cough, cold and flu seasons could adversely impact our operating results.
• We could be adversely impacted by changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters.
• We have a substantial amount of goodwill and other intangible assets which could, in the future, become impaired and result in material non-cash charges to our results of operations.
• We could be subject to adverse changes in tax laws, regulations and interpretations or challenges to our tax positions.
• Our insurance strategies may expose us to unexpected costs.
• We could be adversely impacted by changes in assumptions used in calculating pension assets and liabilities.
• Certain stockholders may have significant voting influence over matters requiring stockholder approval.
• Conflicts of interest, or the appearance of conflicts of interest, may arise because certain of our directors and officers are also owners or directors of companies we may have dealings with.
• Our certificate of incorporation and bylaws, Delaware law and/or our agreements with certain stockholders may impede the ability of our stockholders to make changes to our Board or impede a takeover.
• We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term stockholder value.
• The market price of our common stock may be volatile.
• There are a number of additional business risks that could materially and adversely affect our businesses and financial results.