|   | þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

| Illinois                 | 36-1924025                           |
|--------------------------|--------------------------------------|
| (State of Incorporation) | (I.R.S. Employer Identification No.) |

| 200 Wilmot Road, Deerfield, Illinois     | 60015      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

|   | Yes þ        No ¨ |
|--------|---------------------------------------------------------------------|

| Large accelerated filer þ                                                                                        Accelerated Filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company)                Smaller reporting company ¨ |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Yes ¨        No þ |
|--------|---------------------------------------------------------------------|

| Item 1. | Consolidated Condensed Financial Statements (Unaudited)                                     |
|---------|---------------------------------------------------------------------------------------------|
|    | a)                                                                                          | Balance Sheets |   |
|    | b)                                                                                          | Statements of Earnings |   |
|    | c)                                                                                          | Statements of Cash Flows |   |
|    | d)                                                                                          | Notes to Financial Statements |   |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |
| Item 3. | Quantitative and Qualitative Disclosure about Market Risk                                   |   |
| Item 4. | Controls and Procedures                                                                     |   |

| Item 1.  | Legal Proceedings                                           |   |
|----------|-------------------------------------------------------------|--------|
| Item 1A. | Risk Factors                                                |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds |   |
| Item 6.  | Exhibits                                                    |   |

| WALGREEN CO. AND SUBSIDIARIES                                                                                                                    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED CONDENSED BALANCE SHEETS                                                                                                            |   |
| (UNAUDITED)                                                                                                                                      |   |
| (In millions, except per share amounts)                                                                                                          |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   | February 28, |   |   | August 31, |   |   | February 28, |   |
|                                                                                                                                             |   | 2011 |   |   | 2010 |   |   | 2010 |   |
| Assets                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Current Assets:                                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                        |   | $ | 2,243 |   |   | $ | 1,880 |   |   | $ | 2,501 |   |
| Short-term investments                                                                                                                           |   |   | - |   |   |   | - |   |   |   | 600 |   |
| Accounts receivable, net                                                                                                                         |   |   | 2,497 |   |   |   | 2,450 |   |   |   | 2,694 |   |
| Inventories                                                                                                                                      |   |   | 7,607 |   |   |   | 7,378 |   |   |   | 7,200 |   |
| Other current assets                                                                                                                             |   |   | 190 |   |   |   | 214 |   |   |   | 164 |   |
| Total Current Assets                                                                                                                             |   |   | 12,537 |   |   |   | 11,922 |   |   |   | 13,159 |   |
| Non-Current Assets:                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Property and equipment, at cost, less accumulated depreciation and amortization                                                                  |   |   | 11,148 |   |   |   | 11,184 |   |   |   | 10,891 |   |
| Goodwill                                                                                                                                         |   |   | 1,898 |   |   |   | 1,887 |   |   |   | 1,480 |   |
| Other non-current assets                                                                                                                         |   |   | 1,295 |   |   |   | 1,282 |   |   |   | 804 |   |
| Total Non-Current Assets                                                                                                                         |   |   | 14,341 |   |   |   | 14,353 |   |   |   | 13,175 |   |
| Total Assets                                                                                                                                     |   | $ | 26,878 |   |   | $ | 26,275 |   |   | $ | 26,334 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities & Shareholders' Equity                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Liabilities:                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term borrowings                                                                                                                            |   | $ | 13 |   |   | $ | 12 |   |   | $ | 8 |   |
| Trade accounts payable                                                                                                                           |   |   | 4,890 |   |   |   | 4,585 |   |   |   | 4,611 |   |
| Accrued expenses and other liabilities                                                                                                           |   |   | 2,492 |   |   |   | 2,763 |   |   |   | 2,415 |   |
| Income taxes                                                                                                                                     |   |   | 149 |   |   |   | 73 |   |   |   | 263 |   |
| Total Current Liabilities                                                                                                                        |   |   | 7,544 |   |   |   | 7,433 |   |   |   | 7,297 |   |
| Non-Current Liabilities:                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                                                   |   |   | 2,380 |   |   |   | 2,389 |   |   |   | 2,347 |   |
| Deferred income taxes                                                                                                                            |   |   | 423 |   |   |   | 318 |   |   |   | 253 |   |
| Other non-current liabilities                                                                                                                    |   |   | 1,850 |   |   |   | 1,735 |   |   |   | 1,489 |   |
| Total Non-Current Liabilities                                                                                                                    |   |   | 4,653 |   |   |   | 4,442 |   |   |   | 4,089 |   |
| Commitments and Contingencies (see Note 13)                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders' Equity:                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock $.0625 par value; authorized 32 million shares, none issued                                                                      |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock $.078125 par value; authorized 3.2 billion shares; issued 1,025,400,000 at February 28, 2011, August 31, 2010 and February 28, 2010 |   |   | 80 |   |   |   | 80 |   |   |   | 80 |   |
| Paid-in capital                                                                                                                                  |   |   | 725 |   |   |   | 684 |   |   |   | 653 |   |
| Employee stock loan receivable                                                                                                                   |   |   | (59 | ) |   |   | (87 | ) |   |   | (114 | ) |
| Retained earnings                                                                                                                                |   |   | 17,845 |   |   |   | 16,848 |   |   |   | 16,215 |   |
| Accumulated other comprehensive (loss) income                                                                                                    |   |   | (22 | ) |   |   | (24 | ) |   |   | 36 |   |
| Treasury stock, at cost; 109,940,598 shares at February 28, 2011, 86,794,947 at August 31, 2010 and 46,970,697 at February 28, 2010              |   |   | (3,888 | ) |   |   | (3,101 | ) |   |   | (1,922 | ) |
| Total Shareholders' Equity                                                                                                                       |   |   | 14,681 |   |   |   | 14,400 |   |   |   | 14,948 |   |
| Total Liabilities & Shareholders' Equity                                                                                                     |   | $ | 26,878 |   |   | $ | 26,275 |   |   | $ | 26,334 |   |

| WALGREEN CO. AND SUBSIDIARIES                 |   |
|-----------------------------------------------|--------|
| CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS |   |
| (UNAUDITED)                                   |   |
| (In millions, except per share amounts)       |   |
|                                          |   |
|                                          |   | Three Months EndedFebruary 28, |   |   | Six Months EndedFebruary 28, |   |
|                                          |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                     |   | $ | 18,502 |   |   | $ | 16,987 |   |   | $ | 35,846 |   |   | $ | 33,351 |   |
| Cost of sales                                 |   |   | 13,178 |   |   |   | 12,090 |   |   |   | 25,577 |   |   |   | 23,916 |   |
| Gross Profit                                  |   |   | 5,324 |   |   |   | 4,897 |   |   |   | 10,269 |   |   |   | 9,435 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses  |   |   | 4,117 |   |   |   | 3,811 |   |   |   | 8,121 |   |   |   | 7,553 |   |
| Operating Income                              |   |   | 1,207 |   |   |   | 1,086 |   |   |   | 2,148 |   |   |   | 1,882 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                         |   |   | 18 |   |   |   | 22 |   |   |   | 38 |   |   |   | 43 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Before Income Tax Provision          |   |   | 1,189 |   |   |   | 1,064 |   |   |   | 2,110 |   |   |   | 1,839 |   |
| Income tax provision                          |   |   | 450 |   |   |   | 395 |   |   |   | 791 |   |   |   | 681 |   |
| Net Earnings                                  |   | $ | 739 |   |   | $ | 669 |   |   | $ | 1,319 |   |   | $ | 1,158 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings per common share – basic   |   | $ | .80 |   |   | $ | .68 |   |   | $ | 1.43 |   |   | $ | 1.17 |   |
| Net earnings per common share – diluted |   | $ | .80 |   |   | $ | .68 |   |   | $ | 1.42 |   |   | $ | 1.17 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared                            |   | $ | .1750 |   |   | $ | .1375 |   |   | $ | .3500 |   |   | $ | .2750 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average shares outstanding                    |   |   | 919.1 |   |   |   | 982.9 |   |   |   | 925.3 |   |   |   | 986.6 |   |
| Dilutive effect of stock options              |   |   | 8.9 |   |   |   | 6.9 |   |   |   | 6.1 |   |   |   | 5.8 |   |
| Average shares outstanding assuming dilution  |   |   | 928.0 |   |   |   | 989.8 |   |   |   | 931.4 |   |   |   | 992.4 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| WALGREEN CO. AND SUBSIDIARIES                                                        |   |
|--------------------------------------------------------------------------------------|--------|
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS                                      |   |
| (UNAUDITED)                                                                          |   |
| (In millions)                                                                        |   |
|                                                                                 |   |   |   |   |   |   |
|                                                                                 |   | Six Months Ended February 28, |   |
|                                                                                 |   | 2011 |   |   | 2010 |   |
|                                                                                 |   |   |   |   |   |   |
| Cash Flows from Operating Activities:                                                |   |   |   |   |   |   |
| Net earnings                                                                         |   | $ | 1,319 |   |   | $ | 1,158 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities - |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                        |   |   | 529 |   |   |   | 505 |   |
| Deferred income taxes                                                                |   |   | 68 |   |   |   | (26 | ) |
| Stock compensation expense                                                           |   |   | 46 |   |   |   | 45 |   |
| Income tax savings from employee stock plans                                         |   |   | 3 |   |   |   | 2 |   |
| Other                                                                                |   |   | 13 |   |   |   | 6 |   |
| Changes in operating assets and liabilities -                                        |   |   |   |   |   |   |   |   |
| Accounts receivable, net                                                             |   |   | (57 | ) |   |   | (144 | ) |
| Inventories                                                                          |   |   | (211 | ) |   |   | (382 | ) |
| Other assets                                                                         |   |   | 29 |   |   |   | 31 |   |
| Trade accounts payable                                                               |   |   | 305 |   |   |   | 302 |   |
| Accrued expenses and other liabilities                                               |   |   | (194 | ) |   |   | 14 |   |
| Income taxes                                                                         |   |   | 80 |   |   |   | 174 |   |
| Other non-current liabilities                                                        |   |   | 121 |   |   |   | 78 |   |
| Net cash provided by operating activities                                            |   |   | 2,051 |   |   |   | 1,763 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                |   |   |   |   |   |   |   |   |
| Purchases of short-term investments held to maturity                                 |   |   | - |   |   |   | (1,200 | ) |
| Proceeds from short-term investments held to maturity                                |   |   | - |   |   |   | 1,100 |   |
| Additions to property and equipment                                                  |   |   | (469 | ) |   |   | (524 | ) |
| Proceeds from sale of assets                                                         |   |   | 24 |   |   |   | 19 |   |
| Business and intangible asset acquisitions, net of cash received                     |   |   | (141 | ) |   |   | (116 | ) |
| Other                                                                                |   |   | (27 | ) |   |   | - |   |
| Net cash used for investing activities                                               |   |   | (613 | ) |   |   | (721 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                |   |   |   |   |   |   |   |   |
| Stock purchases                                                                      |   |   | (890 | ) |   |   | (447 | ) |
| Proceeds related to employee stock plans                                             |   |   | 123 |   |   |   | 102 |   |
| Cash dividends paid                                                                  |   |   | (328 | ) |   |   | (272 | ) |
| Other                                                                                |   |   | 20 |   |   |   | (11 | ) |
| Net cash used for financing activities                                               |   |   | (1,075 | ) |   |   | (628 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |
| Changes in Cash and Cash Equivalents:                                                |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                            |   |   | 363 |   |   |   | 414 |   |
| Cash and cash equivalents at September 1                                             |   |   | 1,880 |   |   |   | 2,087 |   |
| Cash and cash equivalents at February 28                                             |   | $ | 2,243 |   |   | $ | 2,501 |   |

|                                                                           |   | Three Months EndedFebruary 28, |   |   | Six Months Ended February 28, |   |
|--------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                                                           |   | 2011                           |   |   | 2010                          |   |   | 2011 |   |   | 2010 |   |
| Severance and other benefits                                                   |   | $                              | -      |   |                          | $      | 5 |   |   | $ | 2 |   |   | $ | 12 |   |
| Inventory charges                                                              |   |                           | -      |   |                          |   | - |   |   |   | - |   |   |   | 19 |   |
|      Restructuring expense                            |   |                           | -      |   |                          |   | 5 |   |   |   | 2 |   |   |   | 31 |   |
| Consulting                                                                     |   |                           | 6      |   |                          |   | 17 |   |   |   | 11 |   |   |   | 24 |   |
|      Restructuring and restructuring related expenses |   | $                              | 6      |   |                          | $      | 22 |   |   | $ | 13 |   |   | $ | 55 |   |
|                                                                           |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                  |   | $                              | -      |   |                          | $      | - |   |   | $ | - |   |   | $ | 19 |   |
| Selling, general and administrative expenses                                   |   |                           | 6      |   |                          |   | 22 |   |   |   | 13 |   |   |   | 36 |   |
|                                                                           |   | $                              | 6      |   |                          | $      | 22 |   |   | $ | 13 |   |   | $ | 55 |   |

|                              |   | Severance and Other Benefits |   |
|-----------------------------------|--------|------------------------------|--------|
| February 28, 2010 reserve balance |   | $                            | -      |   |
| Charges                           |   |                         | 5      |   |
| Cash payments                     |   |                         | (5     | ) |
| August 31, 2010 reserve balance   |   |                         | -      |   |
| Charges                           |   |                         | 2      |   |
| Cash payments                     |   |                         | (2     | ) |
| February 28, 2011 reserve balance |   | $                            | -      |   |

|                                                                                                            |   | February 28,2011 |   |   | August 31,2010 |   |   | February 28,2010 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|----------------|--------|--------|------------------|--------|
| Balance – beginning of period                                                                             |   | $                | 151    |   |           | $      | 99     |             |   | $ | 99 |   |
| Provision for present value of non-cancellable lease     payments of closed facilities |   |             | 31     |   |           |   | 77     |             |   |   | 19 |   |
| Assumptions about future sublease income, terminations, and changes in interest rates                           |   |             | (4     | )      |           |   | (9     | )                |   |   | (7 | ) |
| Interest accretion                                                                                              |   |             | 10     |   |           |   | 22     |             |   |   | 12 |   |
| Cash payments, net of sublease income                                                                           |   |             | (32    | )      |           |   | (45    | )                |   |   | (21 | ) |
| Reserve acquired through acquisition                                                                            |   |             | -      |   |           |   | 7      |             |   |   | - |   |
| Balance – end of period                                                                                   |   | $                | 156    |   |           | $      | 151    |             |   | $ | 102 |   |

|                                                    |   | Three Months Ended February 28, |   |   | Six Months Ended February 28, |   |
|---------------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
| Components of Net Periodic Benefit Costs (In millions): |   | 2011                            |   |   | 2010                          |   |   | 2011 |   |   | 2010 |   |
| Service cost                                            |   | $                               | 4      |   |                          | $      | 3 |   |   | $ | 7 |   |   | $ | 6 |   |
| Interest cost                                           |   |                            | 5      |   |                          |   | 5 |   |   |   | 11 |   |   |   | 10 |   |
| Amortization of actuarial loss                          |   |                            | 4      |   |                          |   | 2 |   |   |   | 7 |   |   |   | 4 |   |
| Amortization of prior service cost                      |   |                            | (3     | )      |                          |   | (3 | ) |   |   | (5 | ) |   |   | (6 | ) |
| Total postretirement benefit cost                       |   | $                               | 10     |   |                          | $      | 7 |   |   | $ | 20 |   |   | $ | 14 |   |

|                                                                                                                                                                        |   | February 28,2011 |   |   | August 31, 2010 |   |   | February 28,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|--------|------------------|--------|
| Short-Term Borrowings -                                                                                                                                                     |   |             |   |   |            |   |   |             |   |
| Current maturities of loans assumed through the purchase of land, buildings and equipment; various interest rates from 5.00% to 8.75%; various maturities from 2015 to 2035 |   | $                | 9      |   |            | $      | 7      |             |   | $ | 4 |   |
| Other                                                                                                                                                                       |   |             | 4      |   |            |   | 5      |             |   |   | 4 |   |
| Total short-term borrowings                                                                                                                                                 |   | $                | 13     |   |            | $      | 12     |             |   | $ | 8 |   |
|                                                                                                                                                                        |   |             |   |   |            |   |   |             |   |   |   |   |
| Long-Term Debt -                                                                                                                                                            |   |             |   |   |            |   |   |             |   |   |   |   |
| 4.875% unsecured notes due 2013 net of unamortized discount and interest rate swap fair market value adjustment (see Note 11)                                               |   | $                | 1,338  |   |            | $      | 1,348  |             |   | $ | 1,306 |   |
| 5.250% unsecured notes due 2019 net of unamortized discount                                                                                                                 |   |             | 996    |   |            |   | 995    |             |   |   | 995 |   |
| Loans assumed through the purchase of land, buildings and equipment; various interest rates from 5.00% to 8.75%; various maturities from 2015 to 2035                       |   |             | 55     |   |            |   | 53     |             |   |   | 50 |   |
|                                                                                                                                                                        |   |             | 2,389  |   |            |   | 2,396  |             |   |   | 2,351 |   |
| Less current maturities                                                                                                                                                     |   |             | (9     | )      |            |   | (7     | )                |   |   | (4 | ) |
| Total-long term debt                                                                                                                                                        |   | $                | 2,380  |   |            | $      | 2,389  |             |   | $ | 2,347 |   |

| Net book value – March 1, 2010     |   |   |   |
|------------------------------------------|--------|--------|--------|
| Goodwill                                 |   | $      | 1,492  |   |
| Accumulated impairment losses            |   |   | (12    | ) |
| Total                                    |   |   | 1,480  |   |
| Acquisitions                             |   |   | 419    |   |
| Impairment charges                       |   |   | (16    | ) |
| Other                                    |   |   | 4      |   |
| Net book value – August 31, 2010   |   |   | 1,887  |   |
| Acquisitions                             |   |   | 39     |   |
| Other                                    |   |   | (28    | ) |
| Net book value – February 28, 2011 |   | $      | 1,898  |   |

|                                                              |   | February 28,2011 |   |   | August 31,2010 |   |   | February 28,2010 |   |
|-------------------------------------------------------------------|--------|------------------|--------|--------|----------------|--------|--------|------------------|--------|
| Gross Intangible Assets                                           |   |             |   |   |           |   |   |             |   |
|      Purchased prescription files        |   | $                | 795    |   |           | $      | 749    |             |   | $ | 622 |   |
|      Favorable lease interests           |   |             | 385    |   |           |   | 377    |             |   |   | 81 |   |
|      Purchasing and payer contracts      |   |             | 303    |   |           |   | 280    |             |   |   | 269 |   |
|      Trade name                          |   |             | 44     |   |           |   | 44     |             |   |   | 26 |   |
|      Other amortizable intangible assets |   |             | 90     |   |           |   | 103    |             |   |   | 66 |   |
| Total gross intangible assets                                     |   |             | 1,617  |   |           |   | 1,553  |             |   |   | 1,064 |   |
|                                                              |   |             |   |   |           |   |   |             |   |   |   |   |
| Accumulated amortization                                          |   |             |   |   |           |   |   |             |   |   |   |   |
|      Purchased prescription files        |   |             | (309   | )      |           |   | (293   | )                |   |   | (238 | ) |
|      Favorable lease interests           |   |             | (58    | )      |           |   | (38    | )                |   |   | (23 | ) |
|      Purchasing and payer contracts      |   |             | (81    | )      |           |   | (68    | )                |   |   | (57 | ) |
|      Trade name                          |   |             | (7     | )      |           |   | (3     | )                |   |   | (14 | ) |
|      Other amortizable intangibles       |   |             | (41    | )      |           |   | (37    | )                |   |   | (29 | ) |
| Total accumulated amortization                                    |   |             | (496   | )      |           |   | (439   | )                |   |   | (361 | ) |
| Total intangible assets, net                                      |   | $                | 1,121  |   |           | $      | 1,114  |             |   | $ | 703 |   |

| 2011 |   |   | 2012   |   |   | 2013   |   |   | 2014 |   |   | 2015 |   |
|------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|------|--------|
| $    | 211    |   |   | $      | 195    |   |   | $      | 170  |   |   | $    | 141    |   |   | $ | 110 |   |

|                                              |   | Notional Amount |   |
|---------------------------------------------------|--------|-----------------|--------|
| Derivatives designated as hedges:                 |   |            |   |
|      Interest rate swaps |   | $               | 1,300  |   |

|                                              | Location in Consolidated Condensed Balance Sheet |   | February 28, 2011 |   |   | August 31, 2010 |   |   | February 28, 2010 |   |
|---------------------------------------------------|--------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|--------|-------------------|--------|
| Asset derivatives designated as hedges:           |                                             |   |              |   |   |            |   |   |              |   |
|      Interest rate swaps | Other non-current assets                         |   | $                 | 38     |   |            | $      | 44     |              |   |   | - |   |
| Liability derivatives designated as hedges:       |                                             |   |              |   |   |            |   |   |              |   |   |   |   |
|      Interest rate swaps | Other non-current liabilities                    |   |              | -      |   |            |   | -      |              |   | $ | 1 |   |

| Level 1 - | Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 - | Observable inputs other than quoted prices in active markets.                                                                                                                            |
| Level 3 - | Unobservable inputs for which there is little or no market data available. The fair value hierarchy gives the lowest priority to Level 3 inputs.                                         |

|                                              |   | February 28, 2011 |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|---------------------------------------------------|--------|-------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Assets:                                           |   |              |   |   |    |   |   |    |   |   |    |   |
|      Money market funds  |   | $                 | 1,138  |   |    | $      | 1,138  |    |   |   | -       |   |   |   | - |   |
|      Interest rate swaps |   |              | 38     |   |    |   | -      |    |   | $      | 38      |   |   |   | - |   |
|                                              |   |              |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|                                              |   | August 31, 2010   |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                                           |   |              |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Money market funds                                |   | $                 | 1,030  |   |    | $      | 1,030  |    |   | $      | -       |   |   | $ | - |   |
| Interest rate swaps                               |   |              | 44     |   |    |   | -      |    |   |   | 44      |   |   |   | - |   |
|                                              |   |              |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|                                              |   | February 28, 2010 |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                                           |   |              |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Money market funds                                |   | $                 | 2,073  |   |    | $      | 2,073  |    |   | $      | -       |   |   | $ | - |   |
| Liabilities:                                      |   |              |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|      Interest rate swaps |   |              | 1      |   |    |   | -      |    |   |   | 1       |   |   |   | - |   |

|     |   | August 31, 2010 |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|----------|--------|-----------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Assets:  |   |            |   |   |    |   |   |    |   |   |    |   |
| Goodwill |   | $               | 3      |   |    |   | -      |    |   |   | -       |   |   | $ | 3 |   |

| Accounts receivable      | $             52 |
|--------------------------|-----------------------------------------------------------------------------------|
| Inventory                | 228                                                                               |
| Other current assets     | 99                                                                                |
| Property and equipment   | 219                                                                               |
| Other non-current assets | 3                                                                                 |
| Intangible assets        | 445                                                                               |
| Goodwill                 | 401                                                                               |
| Total assets acquired    | 1,447                                                                             |
| Liabilities assumed      | 313                                                                               |
| Debt assumed             | 574                                                                               |
| Net cash paid            |  $          560            |

|                                  |   | Three Months Ended February 28, 2011 |   |   | Six Months Ended February 28, 2011 |   |
|---------------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
| Net sales                             |   | $                                    | 455    |   |                               | $      | 913 |   |
| Net loss                              |   |                                 | (7     | )      |                               |   | (12 | ) |
| Net earnings per common share:        |   |                                 |   |   |                               |   |   |   |
|      Basic   |   | $                                    | (0.01  | )      |                               | $      | (0.01 | ) |
|      Diluted |   | $                                    | (0.01  | )      |                               | $      | (0.01 | ) |

|                                        |   | Three Months EndedFebruary 28, |   |   | Six Months Ended February 28, |   |
|---------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                        |   | 2011                           |   |   | 2010                          |   |   | 2011 |   |   | 2010 |   |
| Depreciation expense                        |   | $                              | 200    |   |                          | $      | 198 |   |   |   | 408 |   |   | $ | 405 |   |
| Intangible asset amortization               |   |                           | 46     |   |                          |   | 38 |   |   |   | 98 |   |   |   | 77 |   |
| System development costs amortization       |   |                           | 10     |   |                          |   | 12 |   |   |   | 23 |   |   |   | 23 |   |
| Total depreciation and amortization expense |   | $                              | 256    |   |                          | $      | 248 |   |   |   | 529 |   |   |   | 505 |   |

|                    |   | Number of Locations |   |
|-------------------------|--------|---------------------|--------|
| Location Type           |   | February 28, 2011   |   |   | February 28, 2010 |   |
| Drugstores              |   |                | 7,690  |   |   |   | 7,180 |   |
| Worksite Facilities     |   |                | 367    |   |   |   | 381 |   |
| Home Care Facilities    |   |                | 93     |   |   |   | 103 |   |
| Specialty Pharmacies    |   |                | 9      |   |   |   | 14 |   |
| Mail Service Facilities |   |                | 2      |   |   |   | 2 |   |
| Total                   |   |                | 8,161  |   |   |   | 7,680 |   |

|                                                                           |   | Three Months EndedFebruary 28, |   |   | Six Months Ended February 28, |   |
|--------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                                                           |   | 2011                           |   |   | 2010                          |   |   | 2011 |   |   | 2010 |   |
| Severance and other benefits                                                   |   | $                              | -      |   |                          | $      | 5 |   |   | $ | 2 |   |   | $ | 12 |   |
| Inventory charges                                                              |   |                           | -      |   |                          |   | - |   |   |   | - |   |   |   | 19 |   |
|      Restructuring expense                            |   |                           | -      |   |                          |   | 5 |   |   |   | 2 |   |   |   | 31 |   |
| Consulting                                                                     |   |                           | 6      |   |                          |   | 17 |   |   |   | 11 |   |   |   | 24 |   |
|      Restructuring and restructuring related expenses |   | $                              | 6      |   |                          | $      | 22 |   |   | $ | 13 |   |   | $ | 55 |   |
|                                                                           |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                  |   | $                              | -      |   |                          | $      | - |   |   | $ | - |   |   | $ | 19 |   |
| Selling, general and administrative expenses                                   |   |                           | 6      |   |                          |   | 22 |   |   |   | 13 |   |   |   | 36 |   |
|                                                                           |   | $                              | 6      |   |                          | $      | 2 2 |   |   | $ | 13 |   |   | $ | 55 |   |

|                              |   | Severance and Other Benefits |   |
|-----------------------------------|--------|------------------------------|--------|
| February 28, 2010 reserve balance |   | $                            | -      |   |
| Charges                           |   |                         | 5      |   |
| Cash payments                     |   |                         | (5     | ) |
| August 31, 2010 reserve balance   |   |                         | -      |   |
| Charges                           |   |                         | 2      |   |
| Cash payments                     |   |                         | (2     | ) |
| February 28, 2011 reserve balance |   | $                            | -      |   |

|                                         |   | Percentage Increases/(Decreases) |   |
|----------------------------------------------|--------|----------------------------------|--------|
|                                         |   | Three Months Ended February 28,  |   |   | Six Months Ended February 28, |   |
|                                         |   | 2011                             |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Net Sales                                    |   |                             | 8.9    |   |   |   | 3.1 |   |   |   | 7.5 |   |   |   | 6.1 |   |
| Net Earnings                                 |   |                             | 10.4   |   |   |   | 4.6 |   |   |   | 13.9 |   |   |   | 10.5 |   |
| Comparable Drugstore Sales                   |   |                             | 4.1    |   |   |   | (0.2 | ) |   |   | 2.4 |   |   |   | 2.2 |   |
| Prescription Sales                           |   |                             | 7.7    |   |   |   | 3.2 |   |   |   | 6.5 |   |   |   | 6.5 |   |
| Comparable Drugstore Prescription Sales      |   |                             | 3.9    |   |   |   | 0.6 |   |   |   | 2.4 |   |   |   | 3.3 |   |
| Front-End Sales                              |   |                             | 11.0   |   |   |   | 3.0 |   |   |   | 9.2 |   |   |   | 5.5 |   |
| Comparable Drugstore Front-End Sales         |   |                             | 4.3    |   |   |   | (1.6 | ) |   |   | 2.4 |   |   |   | 0.3 |   |
| Gross Profit                                 |   |                             | 8.7    |   |   |   | 5.1 |   |   |   | 8.8 |   |   |   | 7.1 |   |
| Selling, General and Administrative Expenses |   |                             | 8.0    |   |   |   | 5.1 |   |   |   | 7.5 |   |   |   | 6.2 |   |

|                                         |   | Percent to Net Sales            |   |
|----------------------------------------------|--------|---------------------------------|--------|
|                                         |   | Three Months Ended February 28, |   |   | Six Months Ended February 28, |   |
|                                         |   | 2011                            |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Gross Margin                                 |   |                            | 28.8   |   |   |   | 28.8 |   |   |   | 28.6 |   |   |   | 28.3 |   |
| Selling, General and Administrative Expenses |   |                            | 22.3   |   |   |   | 22.4 |   |   |   | 22.6 |   |   |   | 22.7 |   |

|                                                 |   | Other Statistics                |   |
|------------------------------------------------------|--------|---------------------------------|--------|
|                                                 |   | Three Months Ended February 28, |   |   | Six Months Ended February 28, |   |
|                                                 |   | 2011                            |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Prescription Sales as a % of Net Sales               |   |                            | 62.6   |   |   |   | 63.3 |   |   |   | 64.1 |   |   |   | 64.7 |   |
| Third Party Sales as a % of Total Prescription Sales |   |                            | 95.5   |   |   |   | 95.2 |   |   |   | 95.4 |   |   |   | 95.1 |   |
| Total Number of Prescriptions (in millions)          |   |                            | 181    |   |   |   | 172 |   |   |   | 362 |   |   |   | 346 |   |
| 30 Day Equivalent Prescriptions (in millions) *      |   |                            | 205    |   |   |   | 192 |   |   |   | 407 |   |   |   | 385 |   |
| Total Number of Locations                            |   |                            |   |   |   |   |   |   |   |   | 8,161 |   |   |   | 7,680 |   |

| Goodwill and other intangible asset impairment - |
|--------------------------------------------------|
|                                             | Goodwill and other indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.  As part of our impairment analysis for each reporting unit, we engaged a third party appraisal firm to assist in the determination of estimated fair value for each unit.  This determination included estimating the fair value using both the income and market approaches.  The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates.  The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping. The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting units requires us to make significant estimates and assumptions.  These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which we compete; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization and capital expenditures.  The allocation requires several analyses to determine fair value of assets and liabilities including, among other things, purchased prescription files, customer relationships and trade names.  Although we believe our estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates.  Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of the goodwill impairment charge, or both.  We also compared the sum of the estimated fair values of the reporting units to the Company’s total value as implied by the market value of the Company’s equity and debt securities. This comparison indicated that, in total, our assumptions and estimates were reasonable.  However, future declines in the overall market value of the Company’s equity and debt securities may indicate that the fair value of one or more reporting units has declined below its carrying value. We have not made any material changes to the method of evaluating goodwill and intangible asset impairments during the last three years.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine impairment.  |
| Allowance for doubtful accounts -                |
|                                             | The provision for bad debt is based on both specific receivables and historic write-off percentages.  We have not made any material changes to the method of estimating our allowance for doubtful accounts during the last three years.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine the allowance.  |
| Vendor allowances -                              |
|                                             | Vendor allowances are principally received as a result of purchases, sales or promotion of vendors' products.   Allowances are generally recorded as a reduction of inventory and are recognized as a reduction of cost of sales when the related merchandise is sold.  Those allowances received for promoting vendors' products are offset against advertising expense and result in a reduction of selling, general and administrative expenses to the extent of advertising incurred, with the excess treated as a reduction of inventory costs.  We have not made any material changes to the method of estimating our vendor allowances during the last three years.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine vendor allowances.  |
| Liability for closed locations -                 |
|                                             | The liability is based on the present value of future rent obligations and other related costs (net of estimated sublease rent) to the first lease option date.  We have not made any material changes to the method of estimating our liability for closed locations during the last three years.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine the liability.  |
| Liability for insurance claims -                 |
|                                             | The liability for insurance claims is recorded based on estimates for claims incurred and is not discounted.  The provisions are estimated in part by considering historical claims experience, demographic factors and other actuarial assumptions.  We have not made any material changes to the method of estimating our liability for insurance claims during the last three years.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine the liability.  |
| Cost of sales -                                  |
|                                             | Drugstore cost of sales is derived based on point-of-sale scanning information with an estimate for shrinkage and adjusted based on periodic inventories.  Inventories are valued at the lower of cost or market determined by the last-in, first-out (LIFO) method.  We have not made any material changes to the method of estimating cost of sales during the last three years.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine cost of sales.  |
| Income taxes -                                   |
|                                             | We are subject to routine income tax audits that occur periodically in the normal course of business.  U.S. federal, state and local and foreign tax authorities raise questions regarding our tax filing positions, including the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. Adjustments are made to our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the return containing the tax position or when more information becomes available. Our liability for unrecognized tax benefits, including accrued penalties and interest, is included in other long-term liabilities on our consolidated balance sheets and in income tax expense in our consolidated statements of earnings.   In determining our provision for income taxes, we use an annual effective income tax rate based on full-year income, permanent differences between book and tax income, and statutory income tax rates. The effective income tax rate also reflects our assessment of the ultimate outcome of tax audits. Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.  Based on current knowledge, we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to determine the amounts recorded for income taxes. |

|                              |   | Drugstores |   |   | Worksites |   |   | Home Care |   |   | Specialty Pharmacy |   |   | Mail Service |   |   | Total  |   |
|-----------------------------------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------------------|--------|--------|--------------|--------|--------|--------|--------|
| August 31, 2010                   |   |       | 7,562  |   |      |   | 367    |      |   |   | 101                |   |   |         | 14     |   |   |   | 2 |   |   |   | 8,046 |   |
|    New/Relocated   |   |       | 149    |   |      |   | 7      |      |   |   | -                  |   |   |         | 1      |   |   |   | - |   |   |   | 157 |   |
|    Acquired        |   |       | 20     |   |      |   | -      |      |   |   | 4                  |   |   |         | -      |   |   |   | - |   |   |   | 24 |   |
|    Closed/Replaced |   |       | (41    | )      |      |   | (7     | )         |   |   | (12                | )      |   |         | (6     | )      |   |   | - |   |   |   | (66 | ) |
| February 28, 2011                 |   |       | 7,690  |   |      |   | 367    |      |   |   | 93                 |   |   |         | 9      |   |   |   | 2 |   |   |   | 8,161 |   |

| Rating Agency         |   | Long-Term Debt Rating |   | Outlook |   | Commercial Paper Rating |   | Outlook |
|-----------------------|--------|-----------------------|--------|---------|--------|-------------------------|--------|---------|
| Moody's               |   |                  | A2     |    | Stable |                    |   | P-1     |   | Stable |
| Standard & Poor's |   |                  | A      |    | Stable |                    |   | A-1     |   | Stable |

|                                                           |   | Payments Due by Period (In millions) |   |
|----------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                           |   | Total                                     |   |   | Less than 1 Year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | Over 5 Years |   |
| Operating leases (1)                                           |   | $                                         | 35,884 |   |   | $ | 2,240 |   |   | $ | 4,546 |   |   | $ | 4,397 |   |   | $ | 24,701 |   |
| Purchase obligations (2):                                      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open inventory purchase orders                                 |   |                                      | 1,255  |   |   |   | 1,255 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Real estate development                                        |   |                                      | 288    |   |   |   | 183 |   |   |   | 89 |   |   |   | 16 |   |   |   | - |   |
| Other corporate obligations                                    |   |                                      | 539    |   |   |   | 273 |   |   |   | 227 |   |   |   | 25 |   |   |   | 14 |   |
| Long-term debt*(3)                                             |   |                                      | 2,355  |   |   |   | 9 |   |   |   | 1,304 |   |   |   | 10 |   |   |   | 1,032 |   |
| Interest payment on long-term debt                             |   |                                      | 581    |   |   |   | 116 |   |   |   | 200 |   |   |   | 105 |   |   |   | 160 |   |
| Insurance*                                                     |   |                                      | 601    |   |   |   | 243 |   |   |   | 181 |   |   |   | 89 |   |   |   | 88 |   |
| Retiree health*                                                |   |                                      | 454    |   |   |   | 12 |   |   |   | 27 |   |   |   | 34 |   |   |   | 381 |   |
| Closed location obligations*                                   |   |                                      | 156    |   |   |   | 38 |   |   |   | 44 |   |   |   | 24 |   |   |   | 50 |   |
| Capital lease obligations *(1)                                 |   |                                      | 94     |   |   |   | 4 |   |   |   | 6 |   |   |   | 6 |   |   |   | 78 |   |
| Other long-term liabilities reflected on the balance sheet*(4) |   |                                      | 924    |   |   |   | 81 |   |   |   | 197 |   |   |   | 156 |   |   |   | 490 |   |
| Total                                                          |   | $                                         | 43,131 |   |   | $ | 4,454 |   |   | $ | 6,821 |   |   | $ | 4,862 |   |   | $ | 26,994 |   |

| (1) | Amounts for operating leases and capital leases do not include certain operating expenses under the leases such as common area maintenance, insurance and real estate taxes.  These expenses for the Company's most recent fiscal year were $375 million. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including open purchase orders.                                                                          |
| (3) | Total long-term debt on the Consolidated Condensed Balance Sheet includes a $40 million fair market value adjustment and $6 million of unamortized discount.                                                                                                        |
| (4) | Includes $84 million ($35 million due in 1-3 years, $30 million due in 3-5 years and $19 million due in over 5 years) of unrecognized tax benefits recorded under ASC topic 740.                                                                                    |

| Insurance               |   | $      | 231 |   |
|-------------------------|--------|--------|-----|--------|
| Inventory obligations   |   |   | 42  |   |
| Real estate development |   |   | 14  |   |
| Total                   |   | $      | 287 |   |

| PART II.  OTHER INFORMATION |
|---------------------------------------|

| Item 2.    Unregistered Sales of Equity Securities and Use Of Proceeds |
|--------------------------------------------------------------------------------------------|

| (c) | The following table provides information about purchases by the Company during the quarter ended February 28, 2011 of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Issuer Purchases of Equity Securities |   |
|---------------------------------------|--------|
| Period                                |   | Total Number of Shares Purchased (1) |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Repurchase Programs (2) |   |   | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program (2) |   |
| 12/1/2010 – 12/31/2010          |   |   | 1,364,930 |   |   | $ | 36.62 |   |   |   | 1,364,930 |   |   | $ | 800,328,125 |   |
| 1/1/2011 - 1/31/2011                  |   |   | 6,187,163 |   |   | $ | 41.21 |   |   |   | 4,262,652 |   |   | $ | 625,329,106 |   |
| 2/1/2011 -2/28/2011                   |   |   | 1,778,157 |   |   | $ | 42.17 |   |   |   | 1,778,157 |   |   | $ | 550,336,816 |   |
| Total                                 |   |   | 9,330,250 |   |   | $ | 40.73 |   |   |   | 7,405,739 |   |   | $ | 550,336,816 |   |

| (1) | The Company purchased 1,924,511 shares of its common stock in open-market transactions to satisfy the requirements of the Company's employee stock purchase and option plans, as well as the Company's Nonemployee Director Stock Plan.                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | On October 13, 2010, the Board of Directors approved a new share repurchase program (2011 repurchase program) which allows for the repurchase of up to $1,000 million of the Company’s common stock prior to its expiration on December 31, 2012.  The total remaining authorization under the 2011 repurchase program is $550 million as of February 28, 2011. |

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                             |   | SEC Document Reference                                                                                                                                  |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         |   | Amended and Restated Articles of Incorporation of Walgreen Co.                                                                                                                                                                                                                                                                                                                                                                          |   | Incorporated by reference to Exhibit 3.1 to Walgreen Co.’s Current Report on Form 8-K (File No. 1-00604) filed with the SEC on January 19, 2011.  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 3.2         |   | Amended and Restated By-Laws of Walgreen Co., as amended effective as of September 1, 2008.                                                                                                                                                                                                                                                                                                                                             |   | Incorporated by reference to Exhibit 3.1 to Walgreen Co.’s Current Report on Form 8-K (File No. 1-00604) filed with the SEC on September 5, 2008  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 10.1*       |   | Walgreen Co. 162(m) Deferred Compensation Plan, as amended                                                                                                                                                                                                                                                                                                                                                                              |   | Incorporated by reference to Exhibit 10.1 to Walgreen Co.’s Current Report on Form 8-K (File No. 1-00604) filed with the SEC on December 6, 2010  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 10.2*       |   | Amendment No. 1 to Walgreen Co. 2011 Executive Deferred Compensation Plan                                                                                                                                                                                                                                                                                                                                                               |   | Incorporated by reference to Exhibit 10.1 to Walgreen Co.’s Current Report on Form 8-K (File No. 1-00604) filed with the SEC on January 19, 2011. |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 10.3*       |   | Amendment to the Walgreen Co. Profit-Sharing Restoration Plan                                                                                                                                                                                                                                                                                                                                                                           |   | Incorporated by reference to Exhibit 10.2 to Walgreen Co.’s Current Report on Form 8-K (File No. 1-00604) filed with the SEC on January 19, 2011. |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 12          |   | Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                      |   | Filed herewith.                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 31.1        |   | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                 |   | Filed herewith.                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 31.2        |   | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                 |   | Filed herewith.                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 32.1        |   | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                         |   | Filed herewith.                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 32.2        |   | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                         |   | Filed herewith.                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                    |
| 101**       |   | The following financial statements and footnotes from the Walgreen Co. Quarterly Report on Form 10-Q for the fiscal quarter ended February 28, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Condensed Balance Sheets; (ii) Consolidated Condensed Statement of Earnings; (iii) Consolidated Condensed Statement of Cash Flows; and (iv) the Notes to Consolidated Condensed Financial Statements. |   | Furnished herewith.                                                                                                                                     |

| ** | In accordance with Rule 406T under Regulation S-T, the XBRL-related information in Exhibit 101 to this Annual Report on Form 10-K shall be deemed to be “furnished” and not “filed”. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                      | WALGREEN CO.               |
|---------------------------|----------------------------|
|                      | (Registrant)               |
|                      |                       |
| Dated:  4/05/11 | /s/ W.D. Miquelon          |
|                      | W.D. Miquelon              |
|                      | Executive Vice President   |
|                      | (Chief Financial Officer)  |
|                      |                       |
| Dated:  4/05/11 | /s/ M.M. Scholz            |
|                      | M.M. Scholz                |
|                      | Controller                 |
|                      | (Chief Accounting Officer) |
|                      |                       |
|                      |                       |
|                      |                       |